RUCO receives no money from the State's general fund. Rather, RUCO receives 100% of its operating budget from assessments of large utility companies that may, in turn, pass those charges on to their residential customers. In this way, those who benefit from RUCO's work fund its work. The utility ratepayers who pay these small assessments should consider their money well spent. The following reflects FY 2022 activity for the appropriation year 2021, including the professional witness budget and the approved amount for same in FY 2022.
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The Budget Request attached at the bottom of this page is a preliminary budget request for RUCO for the upcoming fiscal year. The preliminary budget request does not necessarily reflect the contents of the Executive Budget Proposal or budget allocations determined during the legislative process.
RUCO’S FUNDING MECHANISM
Pursuant to Arizona Revised Statute (A.R.S.) § 40-401.01, funding of RUCO is accomplished through an assessment made annually by the Commission. Each utility with annual residential revenues in excess of $500,000, except those not required to hold Certificates of Convenience and Necessity, is assessed.
The disposition of assessment proceeds is governed by A.R.S. § 40-409. All monies received by the Commission under provisions of A.R.S. § 40-401.01 are paid to the State Treasurer and placed in the RUCO Revolving Fund. Monies in the fund are used, subject to legislative appropriation, to operate RUCO pursuant to A.R.S. § 40-461. Appropriated funds not spent by the end of the fiscal year do not revert to the general fund. They revert to the RUCO Revolving Fund and are used to calculate the ratepayer assessment for the next fiscal year.