Hearing - E-01345A-25-0105 - Arizona Public Service Company - Jun 05, 2026

meeting

Arizona Corporation Commission 8h 32m 8 agenda items transcribed 1 day ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What is discussed at the start of this section?

Unknown 0:00

Let's go ahead and go on the record. Good morning, everyone. This happy Friday, uh day twelve in the application of Arizona Public Service for a determination of the fair value of its plant and for the establishment of rates and charges based thereon. Uh I think we're starting today with Arizona Large Customer Group. And I think the first witness up was going to be Ms. Higgins.

Mr. Nelson 0:30

The Arizona Large Customer Group would like to call Miss Courtney Higgins to the stand, please.

Lauren Farrini 0:42

Do you solemnly swear or affirm that the testimony you're about to give at this time?

Unknown 0:47

Yes, I do.

Mr. Nelson 0:57

Good morning, Ms. Higgins.

Courtney M. Higgins 0:58

Good morning, Mr. Nelson.

Mr. Nelson 1:00

Um I'll just make a note that if you could please speak as directly into the microphone as possible, that'll be helpful for the folks following this online. Could you please state and spell your name for the record?

Courtney M. Higgins 1:12

My name is Courtney M. Higgins. That's C-O-U-R-T-N-E-Y. Middle initial M H I G G I N S.

Mr. Nelson 1:23

And Miss Higgins, by whom are you employed and in what capacity?

Courtney M. Higgins 1:26

I am an associate principal at the consulting firm Energy Strategies.

Mr. Nelson 1:32

And on whose behalf are you testifying in this proceeding?

Courtney M. Higgins 1:35

I am testifying on behalf of the Arizona Large Customer Group and the Residential Utility Consumer Office.

1:42

Okay.

Mr. Nelson 1:46

Miss Higgins, uh, before you, um looks like maybe you something you brought, but also in the smaller two notebooks over there, if you ever need to refer to them. Um Our series of exhibits just want to talk about those. In turn. Um, first, do you recall having prepared and submitted direct testimony in this proceeding?

Unknown 2:08

Yes, I did.

Mr. Nelson 2:09

Okay. And if you take the maybe the small binder without the pink cover. Do you recognize what's been marked for identification as exhibit AZLCG RUCO one to be your revised direct testimony?

Unknown 2:27

Yes.

Mr. Nelson 2:28

And then if you could look to the next tab, do you recognize A Z L C G RUCO two to be a copy of the confidential version of that testimony.

Unknown 2:41

So I'm sorry.

Mr. Nelson 2:43

Well, my apologies, I completely misdirected you.

Unknown 2:46

That's okay.

Courtney M. Higgins 2:52

Pardon me. Yes, I see. A Z L C G RUCO two.

Mr. Nelson 2:57

Okay. And were those exhibits prepared by you or under your direction and supervision?

Unknown 3:03

Yes, they were.

Mr. Nelson 3:04

And if I were to ask you the questions today under oath, would your answers be the same?

Unknown 3:09

Yes.

Mr. Nelson 3:12

Then let's turn to what's been marked identification as exhibit A Z L C G RUCO three. Do you recognize that as your sir rebuttal testimony in this case?

Unknown 3:24

Yes, it is.

Mr. Nelson 3:26

And exhibit A Z L C G RUCO four. Do you recognize that as your as the highly confidential version of that surrebuttal testimony?

Courtney M. Higgins 3:42

I'm just verifying that it says highly confidential on here. Yes, it is.

Mr. Nelson 3:50

And relative to those exhibits, again, were those prepared by yourself or under your direction and supervision?

Unknown 3:56

Yes.

Mr. Nelson 3:57

And if I asked you the questions contained in those exhibits today, under oath, would your answers be the same?

Unknown 4:03

Yes, they would.

Mr. Nelson 4:05

At this time you're on our I'd move for the admission of exhibits AZLCG RUCO one, two, three, and four.

Unknown 4:15

Any objections? All right. Uh there being no objections, AZL C G RUCO one and AZL C G RUCO three are hereby admitted. AZLCG RUCO two and AZLCG RUCO four are hereby admitted under seal.

Mr. Nelson 4:37

Ms. Higgins, have you had an opportunity to prepare a summary of your testimony?

Courtney M. Higgins 4:42

Yes.

Mr. Nelson 4:43

Please proceed.

Courtney M. Higgins 4:45

Good morning. I am testifying on behalf of the Arizona Large Customer Group. AZLCG, and the Residential Utility Consumer Office, RUCO, regarding APS's revenue requirement. My testimony recommends adjustments to APS's proposed revenue increase in support of just and reasonable rates. My recommended adjustments are summarized in table CMH1S on page seven of my surrebuttal testimony. And the public version of that is marked as A Z L C G Ruco three. Those adjustments include the revenue requirement impacts of the cost of capital and depreciation rate recommendations sponsored by AZLCG witness David Garrett. While Ruko witness Dr. Zen Zhu sponsors separate return on equity recommendations on behalf of Ruko.

Courtney M. Higgins 5:45

My adjustments reflect Mr. Garrett's cost of capital recommendations. Because Mr. Garrett recommends a lower return on equity, if APS's proposed FRAM is approved.