APS settlement may boost competition in Arizona, Strategic says

Portland, Maine (Platts)--27Aug2004

A proposed rate case settlement for Arizona Public Service Co will provide a
major boost to the state's open access market, according to Pittsburgh-based
retailer Strategic Energy. The proposed settlement agreement, announced Aug
18, will end stranded costs for APS and will increase electric rates enough to
spark competition in the state, said Jennifer Chamberlin, market manager of
regulatory affairs for Strategic. Some Strategic customers with locations in
Arizona have been asking about buying power competitively, and there has been
strong interest from public schools, a company spokesman said. The company
plans to file for a license to operate in Arizona in September, but the
approval process can take up to a year, Chamberlin said. The Arizona
Corporation Commission is expected to vote on the settlement agreement by
early next year.

Copyright © 2004 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.