Arizona Constitution Practice Test

Who is responsible for regulating the rates of public services corporations?

1. Corporation Commission

2. Governor

3. Legislature

4. Comptroller

The correct answer is: Corporation Commission

The Corporation Commission is the entity responsible for regulating the rates of public service corporations in Arizona. This body ensures that the rates charged by utilities and other public service providers are fair and reasonable to both consumers and the companies offering the services. The regulation of rates includes oversight of electricity, water, sewer, and other essential services, effectively balancing the interests of the public and the companies. The governor, while influential in overall state governance, does not have the direct authority to regulate public service rates. Instead, the governor's role may involve supporting or proposing broader legislative initiatives but not the specific regulatory functions that fall under the Corporation Commission's jurisdiction. Likewise, the legislature is responsible for creating laws and policies but typically delegates the specific regulatory responsibilities and the authority to set rates to the Corporation Commission. The involvement of the legislature in rate setting is indirect, as it primarily establishes the framework within which the Commission operates. The comptroller's role often involves managing finances, audits, and budgets at the state level, but it does not extend to the regulation of public service corporations or their rates. Therefore, the Corporation Commission's unique authority and expertise in this area solidify its responsibility for rate regulation in Arizona.