Hearing - E-01345A-25-0105 - Arizona Public Service Company - Jul 07, 2026

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Arizona Corporation Commission 8h 53m 8 agenda items transcribed 1 day ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What procedural and technical issues are addressed at the start of this hearing?

Andrew McNally 0:00

All right, let's go ahead and go on the record. Uh, good morning everyone. Uh welcome to day thirty one in the application of Arizona Public Service for an increase to its rates and charges. Uh hopefully this is the last day. We'll see. But in any event, uh before we get started to the presentation of witnesses, I'll ask are there any procedural matters we need to address this morning? Okay. All right, then I'll turn to Ruco. Uh I believe you're next up in the line of witnesses.

Unknown 0:31

We are, Your Honor, and thank you. Uh at this time Ruco would call Dustin Madsen.

Andrew McNally 0:37

All right, Mr. Madsen, are you there?

Unknown 0:41

I am. Uh just give me a minute. My camera's Not Disappeared at all.

Unknown 0:56

I'm very sorry, sir. Uh it was working just a few minutes ago when I was logging in and Now it has chosen not to. I if it's all right, Your Honor, could I uh leave and come back maybe through the app? Sure.

Andrew McNally 1:14

No. Give me one moment. Let's go off the record.

Unknown 1:24

While he's doing that, maybe we can get this See something more than this for half of it.

Andrew McNally 1:32

Mm-hmm.

Unknown 1:34

Okay.

Andrew McNally 1:36

I do but don't don't don't don't hold to that. So long as I can see him on here, that's fine. I don't mind seeing a little version of him, so

Unknown 1:47

Oh, that giv that cable's gonna

Andrew McNally 1:53

Yeah, I guess. How does that work? Is that uh coming

Dustin Madsen 1:56

through on your end?

Andrew McNally 1:57

Uh we can see you okay. Um and we c still sounds like we can hear you, so it seems like everything's checking out. Shut. All right, let's go ahead and go back on the record. And uh before we start, uh Mr. Matson, we're gonna have the court reporter swear you in.

Court Reporter 2:17

Sir, please raise your right hand. You just solemnly state the testimony you are about to give in this proceeding shall be the truth, the whole truth and nothing but the truth. So I help you God.

Unknown 2:25

Adew. Good morning, Mr. Madsen. How are you? Morning, not too bad. How are you? Good. Good. Could you please state your name for the record?

Dustin Madsen 2:41

Dustin, Michael, Jorgen, Madsen.

Unknown 2:44

And Mr. Madsen, where are you employed and in what capacity?

Dustin Madsen 2:50

I work for M Radia Consulting Corporation and I am the president of M Radia Consulting Corporation.

Unknown 2:58

And you were retained by Ruco in this matter, correct? Yes, I was. And just by way of a little background, you were also Ruco's expert uh on this issue and others in the UNSG case, correct? That's correct. Okay. Um And in this case you prepared both direct Direct rate design and surrebuttal testimony, is that correct? That's correct. And hopefully you have by you or close to you what's been marked Ruco exhibit two, your direct, three, your direct rate design. And four You're sure everybody'll testimony in this manner. Do you? I do. And that was for you. I'm sorry.

Dustin Madsen 3:50

Yes, I do.

Unknown 3:51

And that was prepared by you or under your direction, correct? Correct. Your Honor at this time I would move for the admission of Ruco two, three, and four.

Andrew McNally 4:02

Uh mister Mr. Madison, do you adopt Ruco two, three and four as your sworn testimony here today? Yes, I do, sir. All right. Is there any objection to the admission of RUCO two, three, or four? All right. Hearing none, RUCO two, three, and four are hereby admitted.

Unknown 4:19

Mr. Madsen, could you uh give a brief summary of your testimony, please?

Dustin Madsen 4:25

Course. I recommend the Commission deny APS's request to adopt formula rates. My concerns with the FRAM proposal are numerous, but perhaps most importantly is the risk and uncertainty that formula rates will insert into the rate setting process. Well, APS suggests there's a great deal of certainty. I want to be clear that no one really knows what will happen under formula rates for APS. Arizona understands how current rates are set. And the long term results from utilizing the current approach to sending rates. Current approach is predictable. And understood by customers. Adjuster mechanisms are long standing in Arizona, but the F RAM is not your typical adjuster mechanism, Your Honor. Rather, it is an all-encompassing revenue true up that materially alters the incentives for APS and virtually ensures higher rates for consumers in the future, as compared to the status quo.

Dustin Madsen 5:26

The risk and uncertainty for customers is significant, which is why formula rates need to have guardrails if they are approved.