Hearing - E-01345A-25-0105 - Arizona Public Service Company - Jun 03, 2026

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Arizona Corporation Commission 7h 43m 8 agenda items transcribed 1 day ago official recording ↗

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What did PERG ask about APS employee time tracking and cost allocation?

Unknown 0:00

All right, let's go ahead and go back on the record. Good morning, everyone. Uh, on this uh Wednesday morning, uh day ten, if I recall correctly, of the application of Arizona Public Service for a determination of its fair value and for rates to be set thereon. Uh We are resuming with the cross examination of Miss Blankenship and where we are and the process. It was next up for AZ Perg further questions. Uh before we get started, I'll remind you, Miss Blankinship, you are still under oath. And with that, uh, Miss Reus, whenever you're ready.

Chanel Reyes 0:34

Yes. Good morning, Miss Blankenship. Um my name is Chanel Reyes and I represent the Arizona Public Interest Research Group Education Fund, or PERG. And I just have very few questions for you and if you are not the right witness, please let me know if someone else would have this information.

Miss Blankenship 0:51

Okay. Good morning, guys. Is it correct?

Chanel Reyes 0:55

Is it correct to say that APS and Pinnacle West share employees, including members of each company's leadership team?

Miss Blankenship 1:04

Yes, that is correct.

Chanel Reyes 1:06

And do you know how employees allocate and track their time between APS and Pinnacle West?

Miss Blankenship 1:13

Yes, um so we do have um timekeeping m methodologies um in which we evaluate um the amount of time that would be related to um activities that are specifically related to uh Pinnacle West um that aren't related to APS and that would stay at the Pinnacle West um holding company. So th through through um I guess you could call it a a time review or a time study, evaluating that um at the at the management level. Um if it were um frontline employees then they would be tracking their, you know, time um through the time card system.

Chanel Reyes 1:57

And do employees, either frontline or management, distinguish and track their time that's spent on activities that are rate payer funded versus shareholder funded activities?

Miss Blankenship 2:10

Um yes, um if they are shareholder funded activities, then they're what we call below the line and there are specific accounts and specific charging mechanisms to direct the cost there uh versus um to above the line APS which we um you know would would be more uh reflective of what customers uh would be um uh charge for, other except for any proformas of course that we're doing to exclude certain cost that would be above the line that we're excluding through pro forma adjustments.

Chanel Reyes 2:46

Okay. I think those are actually all the questions that I have for you. Thank you so much. Thank

Miss Blankenship 2:51

you, Miss Reyes.

Unknown 2:56

All right, next up I have S uh Sierra Club. Do we have anybody from Sierra Club online?

Patrick Wolseley 3:03

Good morning. Can you hear me? Uh Mr

Unknown 3:04

Wolseley,

Patrick Wolseley 3:05

good morning. Uh good morning, Miss Blankenship. I'm Patrick Wolsey representing Sierra Club. Um, to confirm, do you have a copy of your direct testimony, correct?

Miss Blankenship 3:18

I do.

Patrick Wolseley 3:19

Um and do you also have access to copies of mister Tetlow's rebuttal testimony and to Sierra Club exhibits SC five, seven and fifteen?

Miss Blankenship 3:30

Um We'll have those shortly.

Patrick Wolseley 3:33

Great, thank you. And uh yeah, I emailed the company's uh Counsel about about those, but just let me know when let me know when you have them.

Miss Blankenship 3:46

Yes, Ms. Wesley, we have those. I have those now.

Patrick Wolseley 3:49

Great, thank you. Um, would you please turn to your direct testimony, uh starting on page twenty nine at line twenty one and let me know when you're there.

Miss Blankenship 4:06

I'm there.

Patrick Wolseley 4:08

Here you describe APS's proposal to extend the amortization period for four corners coal reclamation costs from twenty thirty one to twenty thirty eight, correct? And I'm I'm looking in particular on page thirty, uh so so the f the following page uh toward the end of that QA, uh at lines five to six.

Miss Blankenship 4:33

Yeah, let me um familiarize myself real quick. Um

Miss Blankenship 4:43

Could you ask your question again?

Patrick Wolseley 4:45

Sure. So if if you look at page thirty of your direct testimony. uh at line five, there you uh you reference that the company is extending the amortization period for four corners coal reclamation costs through twenty thirty eight, correct?

Miss Blankenship 5:04

I'm sorry, I don't see that on line thirty, uh or on page thirty, line five.

Patrick Wolseley 5:11

All right, let me

Miss Blankenship 5:13

Yeah, what I'm reading is that um the um cost estimates are through June thirtieth of twenty thirty one for the coal reclamation, uh which is aligned with the terms of our coal supply agreement.