Arizona Revised Statutes Title 30. Power § 30-122. Cooperation with public agencies; limitations upon powers of authority

A. The authority, in the acquisition, construction or operation of electrical transmission systems and other related facilities, shall as far as the best interests of the state permit and as far as consistent with the purposes and policies of this chapter, cooperate with established and existing organizations and with the department of interior of the United States or any other federal agency or department for use, interconnection or utilization of any suitable transmission lines or other facilities for distribution and operating purposes. The authority shall when practical bargain and negotiate with the United States and its departments or agencies for the inauguration, construction or operation of new projects or enlargement of works or facilities, and shall provide for repayment of such work or project costs accruing to the federal agency or department concerned by the application of revenue produced from the operation of the works or projects.

B. Operating units or persons engaged in distribution of electric power may construct, conduct, operate, handle, acquire and dispose of projects, works, systems or facilities not belonging to or under the jurisdiction of the authority, and may also bargain and contract directly with the United States or any department thereof for electric power from the main stream of the Colorado river not under jurisdiction of the authority after first obtaining a power purchase certificate as provided by article 3 of this chapter.  1

C. The authority shall not create any mortgage lien upon its operating property or facilities, or impose any debt, or suffer or create any financial obligation whatever upon the state or any of its subdivisions.

D. This chapter shall not be construed to modify, alter or change the provisions of chapter 1 of title 45  2 or the functions, powers and duties of any agency or officer pertaining thereto. Nothing in this chapter shall be construed to authorize or empower the authority to engage in the retail distribution of electric energy, but the authority may sell and deliver electric energy to consumers located adjacent to its transmission lines who may be without other means of adequate electric supply.