Hearing - E-01345A-25-0105 - Arizona Public Service Company - May 27, 2026

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

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What is the purpose of the witness testimony and the witness’s background?

ALJ (Judge Haynes) 0:00

Uh let's go ahead and go on the record. And this is uh Wednesday, day six of the APS rate hearing. And where we left off, I believe APS, uh you're gonna call your next witness is uh Miss Farini.

Lauren Farini 0:15

Yes, uh Your Honor. Good morning. Lauren Farini appearing on behalf of Arizona Public Service Company and APS calls Michael Eugenis to the stand.

Unknown 0:37

Good morning.

Lauren Farini 0:38

Please raise your right hand. You just solemnly state the testimony you're about to give in this proceeding shall be the truth, the whole truth, and nothing but the truth, so help you God.

Unknown 0:46

I do.

Lauren Farini 0:50

Good morning, Mr. Eugenus.

Unknown 0:52

Good morning.

Lauren Farini 0:53

Would you please state your full name and business address for the record?

Michael Eugenus 0:57

Michael Eugenus, four hundred North Fifth Street, Phoenix, Arizona, eight five zero zero four.

Lauren Farini 1:04

And since this is your first time testifying before this commission, uh, would you please briefly introduce yourself and tell us a little bit about your background and current role at the company?

Michael Eugenus 1:15

Sure. Good morning. My name is Mike Eugeneus. Uh I'm the director of resource planning at APS. I've been with the company for twelve years now. My background is in electrical engineering. I went to school at ASU. Um and then I got a master's degree at Grand Canyon University. I started my career at at EPS in our transmission and distribution um side of the business and spent seven years there. And in the last five years I've spent in uh varying roles here in resource planning.

Lauren Farini 1:46

Thank you.

1:47

Mr.

Lauren Farini 1:47

Eugeneus, do you have before you what has been pre marked as exhibits APS seven and APS eight?

Unknown 1:53

I do.

Lauren Farini 1:55

And do exhibits APS seven and APS eight represent your pre filed rebuttal testimony and rejoinder testimony in this case?

Michael Eugenus 2:03

Yes.

Lauren Farini 2:04

Was that testimony prepared by you or under your direct supervision or control?

Michael Eugenus 2:09

Yes.

Lauren Farini 2:10

And at this time, do you have any additions or corrections that need to be made to your testimony?

Michael Eugenus 2:15

I do not.

Lauren Farini 2:16

And if I were to ask you the questions contained in your testimony, would your answers today be the same?

Michael Eugenus 2:21

They would.

Lauren Farini 2:23

Mr. Eugenus, would you please provide a brief summary of your testimony in this case?

Michael Eugenus 2:30

My testimony focuses on APS's resource planning and procurement decisions, which are grounded first and foremost in system reliability and customer affordability. Together, these principles guide the company's long term planning and investment decisions. I begin by summarizing the components of the company's long term technology neutral planning framework. including load forecasting, resource adequacy and reliability metrics, the integrated resource plan or IRP, and the competitive all source request for proposal all source RFP process. I then respond to intervener challenges related to the prudence of the company's decisions regarding the Agave battery energy storage system and the Palo Verde generating station Unit two lease buyback.

Michael Eugenus 3:18

In addressing these issues, I explain that APS evaluates resources using a portfolio based planning approach. Rather than relying on any single metric. This approach benefits customers by balancing cost, risk, and operational performance. While single metric comparisons can inform screening analyses, they are not sufficient on their own to determine prudent long term resource additions. I also clarify that environmental, social and governance or ESG considerations do not drive APS's decisions for delivering cost effective, reliable resources for APS's customers. The same is true for cost recovery mechanisms. Which do not in any way influence how APS plans for and procures the resources needed to serve long term customer needs.

Michael Eugenus 4:13

Lastly, I explain how APS distinguishes new resource costs attributable to existing customers from those associated with serving future load growth. As described in more detail by APS witness Jamie Moe, who sponsors APS's cost allocation proposals, this approach supports the company's growth pace for growth strategy in terms of cost allocation methods that help ensure customer classes causing growth-related costs are appropriately bearing those costs and rates.

Lauren Farini 4:46

Thank you, Mr. Eugenis. Were you able to listen in yesterday to the cross examination of APS witness, Mr.