The ACC determined that Navopache Electric Cooperative's share of stranded
costs recovery due to the sale of assets by Plains Electic Transmission
and Generation are $11.8 million to be collected over 10 years.
11/99: The ACC approved TEP's restructuring agreement, allowing the recovery of $450 million in stranded costs over a transition period lasting to 2008.
9/99: The restructuring settlement agreement approved by the ACC will allow APS to recover $350 million of its estimated $533 million in stranded costs over a 5-year transition period.
4/99: The ACC approved a new plan with 4 options for stranded cost recovery and will begin retail competition with 20 percent of consumers later this year and all consumers by January 1, 2001. Utilities must file their proposals for stranded cost recovery by June. The solar portfolio standard was eliminated as too costly. A hearing process will consider whether to adopt a renewable resource requirement that would include all renewables.
8/98: The ACC order on stranded costs provides utilities two options: 1) divestiture of assets; the amount of recoverable stranded costs will be the difference between the value of generation assets under traditional regulation and their market value determined through an action process, and 2) a transition revenues methodology; the ACC "would provide sufficient revenues necessary to maintain financial integrity for a period of 10 years," allocating stranded costs among consumers and shareholders as deemed "to be in the public interest."
TEP will use a competitive transition charge (CTC) of $0.93/kWh to recover
stranded costs. A "floating" CTC will also be employed to
recover an additional $183 million in stranded costs. The floating CTC
will vary inversely with the market price of energy and would be adjusted
9/99: APS will use a CTC that decreases annually over a five year period to recover stranded costs.
|Divestiture of Assets||11/99:
The ACC agreement with TEP requires transfer of its generation assets to
an affiliate company by the end of 2002.
9/99: APS is required to transfer its generation assets to an affiliate company by the end of 2002 under the restructuring agreement approved by the ACC.