Hearing - E-01345A-25-0105 - Arizona Public Service Company - May 26, 2026

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Arizona Corporation Commission 6h 59m 8 agenda items transcribed 1 day ago official recording ↗

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What procedural matters and witness scheduling issues are addressed at the beginning of the hearing?

Charles Haynes 0:00

All right. Let's go ahead and go on the record. And good morning, everyone. This is day five in the hearing in the matter of the application of Arizona Public Service Company for a hearing to determine the fair value of the utility property of the company for rate-making purposes, fix a just and reasonable rate of return thereon, and to approve rate schedules designed to develop such return. Docket number is E-01345A-25-0105. I'm Administrative Law Judge Charles Haynes, and I've been assigned to preside over this matter. Where we left off, we have a... Mr. Tetlow on the stand here. We were going to start with AARP, but before we get to that, I was going to ask very quickly, are there any procedural matters we need to address this morning?

Charles Haynes 0:45

And I see Mr. Rich heading for the mic.

Mr. Rich 0:47

Good morning, Your Honor. Thank you. I had a chance to talk with the applicant about this. As things happen over a hearing of this period of time, I have a hearing tomorrow morning in Florence in the morning. and originally the schedule, and I know the schedule doesn't always stick or probably never sticks, looked like it would be fine, but given where we're at, there's a chance that, depending on where we end today, there may be a witness up during the time that I would want to cross-examine, so I don't know what to say other than I appreciate the applicant saying that they'd be willing to work with me, and let's see where we get by the end of the day if there's an opportunity to go earlier or go later tomorrow.

Mr. Rich 1:29

Well, not earlier tomorrow because I won't be available, but if there's a chance to go earlier today or later tomorrow, I'll appreciate that opportunity if it can be given.

Charles Haynes 1:38

Okay. I mean, so I mean, Mr. Tetlow is, he may actually be the one with the most people wanting to cross-examine him, though I have no idea how long each person will. But I do have you on the list. You're, you know, since I've been going alphabetically, you're kind of wedged right in the middle there. So I have no idea how long it'll go. But if you want to horse trade among parties, I certainly have no problem with that in terms of coming with a different position somewhere else. in the lineup.

Mr. Rich 2:03

Thank you, Your Honor. I think it becomes more of a problem if we get to Mr. Walter or Mr. Eugenis. Those are the two that I worry about. If I wouldn't be in the room, that would be folks that I need to ask some questions to. So I think as we see where we're at towards the end of the day, then I can hopefully work to do some horse trading.

Charles Haynes 2:22

Okay. I may have missed this. So the Florence hearing you have, it's a multi-day hearing?

Mr. Rich 2:27

No, it's a single day. It's a board of supervisors hearing. I have an item on the agenda and hopefully it'll be done by one or two o'clock and unavoidable if they only meet certain days of the month. No,

Charles Haynes 2:40

that's fine. All right. Well, we'll see how it goes and

Mr. Rich 2:42

let me know where you're at. I

Charles Haynes 2:43

just wanted to flag it for you. Thank you. Appreciate it. Anything else? Okay. In that case, Mr. Tetlow, I'll remind you, you are still under oath since it's been a couple of days. And with that, Mr. Kaufman, are you ready to go?

John Kaufman 2:58

Yes, I am. Good morning. How are you? Good morning. Good morning, Mr. Tetlow. I'm John Kaufman. I'm an attorney for AARP. And I don't, compared to some folks, I'm not going to have many questions for you, but... I would like to start with looking at the 2026 proxy statement for Pinnacle West. And it's in the record as exhibit AARP-7. Do you have a copy of that in front of you, sir? Working on it now. Okay. Take your time.

Mr. Tetlow 3:44

Okay, I have the proxy in front of me.

John Kaufman 3:47

Okay. Do you recognize that document? I do. Seen it before. And so could I direct, I'd like to direct you to pages 55 and 56 in their section on executive compensation.

Mr. Tetlow 4:18

Okay, I have 55 and 56.

John Kaufman 4:21

Okay. On page 55, they list executives for APS that receive certain executive compensation. Do you see yourself there? I do. And is that a total of $3.2 million in executive compensation? That's correct. And that's an annual basis? Yes. And that consists of both annual cash incentives and long-term incentives in the form of stock?