HB 2232
Initials PAB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: NREW DP 12-0-0-0
HB 2232: nonprofit generation and transmission cooperatives
Sponsor: Representative Griffin, LD 14
House Engrossed
Overview
Exempts from the Arizona Corporation Commission's annual assessment a generation and
transmission cooperative's gross intrastate revenues from selling electricity to another electric
utility subject to the same annual assessment.
History
To finance some of its activities, the Arizona Corporation Commission annually assesses most of
the public service corporations (PSCs) it regulates. The assessment is levied on PSCs with gross
operating revenues from operations in Arizona above $500,000 in the previous fiscal year. A
statutory formula determines each PSC's assessment, which is based on its share of these
revenues from all similar PSCs (A.R.S. § 40-401).
The PSCs subject to this assessment include those that furnish electricity for light, fuel or power
such as electric cooperatives (Constitution of Arizona, Article XV, § 2). Statute recognizes two
different types of cooperatives:
1) Electric cooperatives, which can purchase, acquire, transmit, distribute, and sell electricity.
Crucially, these cooperatives cannot generate electricity but can become members of
other cooperatives (A.R.S. § 10-2057); and
2) Generation and transmission cooperatives, which generate, acquire, sell and transmit
electric energy to other entities, including electric utilities and other electric cooperatives
(A.R.S. § 10-2127). Membership in these cooperatives is limited to electric utilities and
other persons as provided by the cooperative's bylaws (A.R.S. § 10-2128).
Provisions
1. Exempts from the Arizona Corporation Commission's annual assessment a generation and
transmission cooperative's gross intrastate revenues from selling electricity to another
cooperative electric utility subject to the same annual assessment.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note