Contingency Open Meeting - November 06, 2025
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What is the purpose and agenda of the November 6, 2025 contingency open meeting?
Good morning, everyone. We'll go ahead and convene our November contingency open meeting and bring it to order. If we could please rise for the invocation from Commissioner Marquez-Peterson and our pledge, which will be provided by Britton Baxter.
Good morning. Please bow your heads if you would like. Dear Lord, in this month of Thanksgiving, we want to thank you for all that you have provided us. We're very grateful and hope that we each reflect individually on all that we have been provided. Please, Lord, be with those families that are impacted by the federal shutdown. Please provide for food where there is insecurity. Lord, guide our decisions today, our actions, that we make the very best decision for the state of Arizona. In your son's name, amen.
The chairman if I can to thank all veterans in advance of veterans day next week chairman commissioner Lopez please join me in the pledge I pledge allegiance. To the flag of
the
United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all.
Thank you please be seated. We have three items on our agenda today. All of them are rate cases. Surprisingly, we do not have any consent agenda items, so this is kind of a first for us. Our first item will be Trico, which was held off in our October open meeting. I would like to make one scheduling change and move item number three, Kylo Bradshaw, to be heard second, and then we'll move Cactus to third in the final slot. So while you are taking your seats, before we get started, I want to recognize an important honor recently bestowed upon the commission. The National Conference of Regulatory Attorneys, which is organized by NARUC and is tailored to government utility regulatory attorneys, recently elected our esteemed General Counsel Tom Van Vlijn as president for the 2026 conference.
One of the cool things about being the president is you get to help organize the 2026 conference, which is going to be held here in Phoenix in early May next year. I know Tom would probably be the first to say that it was to acknowledge that his appointment wouldn't be possible without the entire office of general counsel. And so I want to thank everyone for everything that they've done, all of our ALJs, as well as the support staff who keep the train on the tracks. And so, Tom, congratulations and thank you for all you do for us.
Thank you. We'll be putting together an agenda with panels, and so I'll be reaching out to all of you to participate as well.
Sounds awesome. And so with that, let the flogging begin. So, Vice Chair Myers, would you please move our first item?
Sure. I move item number one for discussion.
Judge Motter, please kick
us
off. All right. Good morning, Mr. Chair, Commissioner, Julia Motter. On behalf of the hearing division, This matter involves a rate application for Trico Electric Cooperative, a member-owned Class A non-profit providing service to approximately 50,000 mostly residential members in rural areas of Pima, Pinal, and Santa Cruz counties. One written comment was received in opposition to the rate application and Trico's current rates and charges were approved in February of 2017 using a test year ending December 31st, 2014. TRICO and staff entered into a settlement agreement in this matter, and the RUE adopts the settlement agreement. Aracea is not a signatory to the settlement agreement, but does not oppose it.
Aracea's testimony in this case pertained to the proposed elimination of net metering for commercial members, which it objects to. The settlement agreement provides a total revenue requirement of $131,809,300, an increase of about $8.2 million or 6.69% over test year revenue of a little over $123 million. The revenue requirement results in operating income of Almost $13 million and 8.91% rate of return on the agreed upon fair value rate base of $206.5 million, a net tier of 3.66 and a DSC of 2.44. The revenue requirement includes over $1 million in REST and EEDSM costs and eliminates TRICO's REST and DSM surcharges.
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Agenda
7 items
1
What is the purpose and agenda of the November 6, 2025 contingency open meeting?
0:00–13:40
2
How does the commission evaluate the Trico Electric Cooperative rate application and settlement?
13:40–36:27
3
What are the arguments for and against moving Trico’s rate‑case expenses into the base rate?
36:27–58:57
4
How did commissioners vote on the first amendment regarding Trico’s surcharge?
58:57–1:29:02
5
What issues were raised during the emergency water rate case for Bradshaw Mountain View Water Company?
1:29:02–1:54:52
6
How does Cactus State propose to consolidate small water systems and what are the financial implications?
1:54:52–2:16:35
7
What concerns did commissioners express about transparency and the Section 2.7 consolidation amendment?
2:16:35–2:29:51
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