ACC Reverses Controversial Utility Line Extension Policy
Posted January 14, 2011on:
PHOENIX – The Arizona Corporation Commission today voted to reinstate a portion of Arizona’s longtime policy of requiring utility companies to provide footage allowances for new customer hook ups. The Arizona Association of REALTORS® (AAR) strongly applauded the 3-2 decision, which reversed a policy for UNS Electric customers in Western Arizona that had required new customers to front the costs to extend a utility company’s power lines, creating a drag on the state’s economic recovery, especially in hard-hit rural areas.
“We commend the Commission for making a well-reasoned and well-researched decision that will have a very positive impact on Arizona’s economy,” said Tom Farley, CEO of the Arizona Association of REALTORS ®. The previous Commission’s policy has resulted in substantial inequities and did not recognize new customers as a benefit to the utility.”
Since the Commission changed a decades-old line extension policy to remove the footage allowance, new customers have not only paid for a utility company’s line extensions, but also for the cost of all previous line extensions, Farley added. The AAR has been actively working with the Commission, legislature, and numerous stakeholders from around the state to address the negative effects that the removal of consumer friendly footage allowances has had on homeowners, small businesses and property values throughout Arizona.
With today’s approval of Stump’s amendment, the Commission will re-implement Arizona’s previous line extension policy in UNS Electric’s territory, which had been in place since the early 1950’s. That policy gives customers a footage allowance for electric utility lines when hooking up electrical service.
For more information about the Arizona Association of REALTORS®, including home buying and selling points, visit the organizations website at http://www.aaronline.com.