A. A city or town that provides electric distribution service shall not sell electric generation service outside of its service territory as constituted on January 1, 1998, or as later amended by mutual agreement, unless the city or town has agreed to allow other electricity suppliers to make sales of electric generation service within its service territory.

Terms Used In Arizona Laws 9-520

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215

B. Notwithstanding section 9-516, subsection A, a city or town that provides electric distribution service may sell electric generation service outside of its service territory if the city or town meets the requirements of subsection A of this section.

C. In this section, unless the context otherwise requires:

1. "Electric distribution service" means the distribution of electricity to retail customers through the use of electric distribution facilities.

2. "Electric generation service" means the provision of electricity for sale to retail electric customers but does not include electric distribution or transmission services.

3. "Electric transmission service" means the transmission of electricity to retail electric customers or to electric distribution facilities and that is so classified by the federal energy regulatory commission or, to the extent permitted by law, so classified by the Arizona corporation commission.

4. "Electricity supplier" means a person, whether acting in a principal, agent or other capacity, who offers to sell electricity to a retail electric customer in this state.

5. "Service territory" means the geographic area in which a public power entity or public service corporation owns, operates, controls or maintains electric distribution facilities and that additional area in which the public power entity or public service corporation has agreed to extend electric distribution facilities, whether established by a certificate of convenience and necessity, by official action by a public power entity or by contract or agreement.