A.R.S. § 40-363: Commission; public utilities; establishing rates; fair value

A. If a regulatory asset is included in rate base or otherwise reflected in rates based on a test year or historical balance, the commission and the public service corporation shall disclose all of the following:

1. The unamortized balance of the regulatory asset as of the rate effective date.

2. The difference between the test year balance and the rate effective date balance.

3. The total amount of amortization expense expected to be recovered over the period the rates are in effect.

4. If a public service corporation's regulatory assets include either assets whose rate base value remains fixed until the next rate case or assets whose rate base value declines in proportion to the amortization of the unamortized balance, the public service corporation shall disclose the treatment applied to each category of regulatory asset and indicate whether and how rate base will be adjusted over time to reflect declining balances for the assets subject to such adjustment.

B. Nothing in this section requires the commission to adopt any particular adjustment mechanism, but this section does require the commission to ensure that the disclosures required by this section are sufficient to compare the total amounts that will be recovered in rates against the remaining unamortized balance of regulator asset.