Hearing - E-01345A-25-0105 - Arizona Public Service Company - Jun 04, 2026

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Arizona Corporation Commission 8h 27m 8 agenda items transcribed 1 day ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What procedural matters and witness introductions are covered at the start of this segment?

Administrative Law Judge / Hearing Officer 0:00

Let's go ahead and go on the record. Good morning, everyone. On day 11 in the application of Arizona Public Service for a determination of its fair value and for the setting of rates based thereon, I believe we're starting today with Dr. Cadarega, but before doing that, I'm going to ask, are there any procedural matters we have to address this morning? No? Okay. All right. In that case, I'll ask APS, are you ready to call your next witness?

APS Counsel (Margaret Lee) 0:29

Yes, Your Honor. I call Dr. Katariga. All right.

Administrative Law Judge / Hearing Officer 0:45

Let's have the court reporter swear you in.

Dr. Chimbugwe A. Katarega 0:47

Good

Unknown 0:48

morning. Good morning. Raise your right hand for me, please. Do you solemnly swear or affirm that testimony or that you give

APS Counsel (Margaret Lee) 0:57

it's time

Dr. Chimbugwe A. Katarega 0:57

and place to

APS Counsel (Margaret Lee) 0:57

do the truth?

0:57

I do. I do.

APS Counsel (Margaret Lee) 1:01

Good morning, Dr. Katarega. Would you please state your full name and business address for the record?

Dr. Chimbugwe A. Katarega 1:06

My name is Chimbugwe A. Katarega. My business address is 11-17-595 South Tamiami Trail, Fort Myers, Florida, Suite 260-33908. And

APS Counsel (Margaret Lee) 1:23

by whom are you employed and in what capacity?

Dr. Chimbugwe A. Katarega 1:26

I'm a partner with... Foster Associates Consultants LLC.

APS Counsel (Margaret Lee) 1:34

And what is Foster Associates?

Dr. Chimbugwe A. Katarega 1:37

Foster Associates is a public utility economics consulting firm that provides economic research and consulting services in areas and issues arising from governmental regulation of public utilities. Our Fort Myers office specializes in forecasting public utility and other industry lives of equipment and property and also valuation of industrial properties.

APS Counsel (Margaret Lee) 2:23

Thank you. Can you please briefly describe your educational background?

Dr. Chimbugwe A. Katarega 2:28

I hold a Bachelor of Science from Makerere University in East Africa, where for my bachelor's degree I developed a model that I believe is still using today. to estimate the daily and seasonal levels of Lake Victoria, which supplies the only hydroelectric source in Uganda and the countries surrounding it.

Administrative Law Judge / Hearing Officer 3:02

All right. I'm going to interrupt you right there before you ask your next question. I just got booted off the WebEx. I assume everybody else is on, but it looks like we lost Wi-Fi in here. So let's go off the record for a moment, and I'm going to hustle and get IT in here.

Unknown 3:54

because we're using copper, but yeah, so I can sign into mine and see if that works better.

Unknown 4:15

Connected.

Unknown 4:26

Staff Counsel (Maureen?) 4:26

that the Wi-Fi again?

Unknown 4:27

Yeah. So if

Staff Counsel (Maureen?) 4:29

it happens

Unknown 4:30

again, we can hardwire it. I did the internal one this time. Okay.

Unknown 5:09

All right. All

Administrative Law Judge / Hearing Officer 5:14

right, apologies everyone for the interlude. Let's go ahead and go back on the record.

APS Counsel (Margaret Lee) 5:21

Dr. Kim, would you please briefly describe your professional background?

Dr. Chimbugwe A. Katarega 5:27

I had not finished the academic background. Oh, sure. Is that okay?

APS Counsel (Margaret Lee) 5:32

Yes, you can continue.

Dr. Chimbugwe A. Katarega 5:33

Yes, yeah, I also hold a Master of Science degree in Management Science from the University of Wales in the United Kingdom. The highlight of that was my thesis that addressed Iowa curves specifically, which will probably be mentioned many times today. But I was analyzing the Iowa curves and their relationship to other statistical distributions that people use in estimation of service lives. We wanted to look at the efficacy of the Iowa curves as related to standard distributions like the viable the gompers-mecum, the beta and gammas and other statistical distributions. I also hold a PhD from Iowa State University. in engineering evaluation. And my dissertation for my PhD was technological forecasting and its use in the estimation of property, equipment, service lives.

APS Counsel (Margaret Lee) 6:59

And Dr. Kim, would you please briefly describe your professional background?

Dr. Chimbugwe A. Katarega 7:04

Yes, I joined the firm of First Associates in 1986 after graduating from Iowa State and I joined as a consultant in depreciation accounting Before I joined the firm at Iowa State, I was employed under contract as a research assistant to investigate marginal cost pricing in technological forecasting, again, as related to industrial equipment and properties. At Iowa State, I also... Some of that work actually that went into my PhD also was addressed and applied in the telephone industries. I've taught college level statistics and mathematics. I have published in refereed journals on subjects of depreciation, capital recovery, technological forecasting, engineering, economics.