Residential Utility Consumer Office, an Agency of the State of Arizona, Appellant. v. the Arizona Corporation…

Summary

The court held that the Commission’s system improvements benefit mechanism complies with the Arizona Constitution because each surcharge is based on a current determination of the utility’s fair-value rate base. The Constitution requires fair value to be used as the rate base but does not require the Commission to make that determination through a full rate case. The court vacated the court of appeals’ decision and affirmed the Commission’s approval of the mechanism.