Arizona electric competition statutes require electric
distribution utilities to serve as the providers of last resort in their
respective service territories and allow exclusive transmission and
distribution service territories. Electric competition never materialized in
Arizona, but providers of last resort provisions ensure that all consumers
will have access to electric services in a competitive market. Bidding for
provider of last resort services is not currently practical because there
are no competitive electric suppliers. Having exclusive transmission and
distribution territories is practical to avoid duplicating infrastructure.
Past actions eliminated part of Arizona’s electric competition framework,
and the Arizona Corporation Commission may need to revisit the framework.