Hearing - E-01345A-25-0105 - Arizona Public Service Company - Jun 09, 2026
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What procedural matters and witness introductions are covered at the beginning of the hearing?
All right, let's go on the record and good morning everyone. Welcome on this uh Tuesday, day fourteen in the application of APS for a determination of its rates and charges. Uh before we get started with the presentation of witnesses, I'll ask are there any procedural matters we need to take up this morning before we get started? Hearing none, I'll ask uh Mr. Kaufman. Are you ready to Oh, hold up. Okay, Miss Johnson.
Uh, this is just a logistical issue I wanted to flag. Hopefully it won't be applicable. I just wanted to let you know I have another city council meeting this evening. So um I hope I don't get called for cross examination in the four PM hour. But um just wanted to get that on the radar now. I don't think it's likely to be an issue, but I just wanted you to know.
Okay. All right. Well, I appreciate the heads up and we'll bear that in mind as as things progress. So all right. All right, hearing nothing more, then uh Mr. Kaufman. Yes, AERP is ready to call um its witness Paul Alvarez.
Good morning, Mr. I'm sorry. Court reporters for you in, yes. Good morning. Do you solemnly swear or affirm that the testimony you're about to give will be the truth, the whole truth, and nothing but the truth? Thank you. Okay. Good morning. Could you uh state your name and uh uh state who you work for?
Uh Paul Alvarez, I work for the Wired Group.
And who are you uh testifying on behalf of today? On behalf of ARP. Okay. Are you the same Paul Alvarez that has caused to be filed in this case direct testimony and cerebal testimony with attachments?
I am.
And would that be um uh would that testimony comprise A or P uh dash zero one d zero two d zero three d zero three confidential Day zero four and day day zero five and day zero five confidential. That's correct. Okay. Um Um what uh could you explain um For the commission what your um what your work history is and how how long you've been doing uh regulatory utility regulation work as a witness.
Um well my utility career actually started um probably around two thousand One, when I started working for uh Excel Energy, large public service company. Um in 2012 I branched out on my own, um, started the Wired Group. I lead the Wired Group. Um and since then I've been supporting consumer, business, and environmental advocates um in regulatory proceedings um in various state jurisdictions.
About how many states have you testified in?
Twenty states. Okay.
And uh what is is there something unique about the wired group as to what it can bring to these regulatory proceedings?
I think so. I think what we really specialize is in is the infrastructure itself. So other than myself, we hire engineers um with distribution utility experience, electric, gas, water. Um and so I think what we What's somewhat unique about us is that we have both the rate making and regulation types of experience, uh, as well as understanding the impact of those uh incentives um on the infrastructure spending.
And did you address both types of um uh areas of focus in your testimony in this case? I did. Oh and I forgot to ask you, is there uh any correction that you need to make to your testimony?
Uh yes, one minor correction um in my direct testimony, which is uh exhibit one, I believe, on page forty-seven. It's a very brief minor correction. Um on line five it says because APS did evaluate the cost of reasonable alternatives to the construction project, that should read because APA APS did not evaluate.
So you need to insert the word not
there after. Yeah, insert the word not, that's correct.
And uh with that correction i are all the answers in your testimony um uh uh accurate and would your answers be substantially the same if I ask you today? They would. Um Let's see. Uh would it be appropriate to offer uh the testimony in the record at this point? Yeah. If you want to go ahead. That's right. Uh so AERP would offer enter the record AERP dash one, ARP dash two, ARP dash three, ARP dash three confidential, AERP dash four, and AERP dash five, as well as AERP dash five confidential.
All right. Uh any objections to the admission of AARP zero one, zero two, zero three, zero three confidential, zero four, zero five, or zero five confidential.
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Agenda
8 items
1
What procedural matters and witness introductions are covered at the beginning of the hearing?
0:00–22:36
2
How does the discussion shift to the FRAM process, its timelines, and the Red Hawk water‑surge pond evaluation?
22:36–1:01:18
3
What arguments are presented about affordability, cost of capital, and the impact of formula rate making on customers?
1:01:18–2:22:08
4
What is the dead‑band formula rate mechanism and how does it affect APS’s rate of return?
2:22:08–3:18:15
5
How does the Moody’s credit‑rating analysis relate to APS’s cost‑of‑service and rate‑setting arguments?
3:18:15–4:26:32
6
What are the key issues in the prudence review and the proposed FRAM timing and incentives?
4:26:32–4:44:48
7
What is discussed at the start of this section?
4:44:48–6:05:01
8
How does the conversation shift to cost allocation, POD analysis, and subscription models?
6:05:01–7:32:04
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