Tony's reflections on electric utility and telecommunications deregulation.
The most important issues before the Arizona Corporation Commission will be in the deregulation of public utilities - our power, our telecommunications systems, our securities regulations and the quality of our water.
I believe the Arizona Corporation Commission must
- Balance the interests of ratepayers and utilities.
- Minimize financing costs and costs of issuance.
- Ensure no adverse impact on State credit or financing capabilities.
- Determine appropriate level of State involvement.
- Control intervention and appeals process and overall time line.
- Evaluate tax-exempt financing alternatives.
- Explore securitization without legislation.
I believe the Utilities must
- Preserve shareholder value.
- Avoid any adverse tax impact of securitization.
- Ensure no adverse impact on utility credit or financing capabilities.
- Minimize incremental servicing obligations and system requirements.
- Minimize financing costs and costs of issuance.
- Determine strategy with respect to other utilities.
- Maintain flexibility in use of proceeds.
- Limit intervention and appeals process.
Changes in our telephone service have been apparent to all of us these last several years. Until now these changes have been limited to our long-distance providers. Now a similar revolution is about to occur in local telephone service. Among other changes, this will bring about competition in both business and residential service. No one knows for certain exactly how these changes will impact us. What we do know is that we must carefully monitor and control the process for the good of everyone. Technology has advanced at such a fast pace, the traditional regulatory structure must now address the new opportunities and pitfalls these advances have created. The challenges facing Arizona's Corporation Commission have never been more significant, nor have they been more important to Arizona's consumers and businesses.
|
