Hearing - E-01933A-25-0103 - Tucson Electric Power Company **Tucson**
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Who is present and what are the preliminary matters at the start of the hearing?
Let's go on the record. Good morning again, everyone, and welcome to the Arizona Corporation Commission. I'm still Julia Motter, the administrative law judge assigned to preside over this matter. Um Commissioner Marquez Peterson has joined us this morning and is listening in And this is the time set for the continuation of the hearing in docket number E01933A. Dash two five dash zero one zero three involving the rate application. of Tucson Electric Power Company. And I'll note for the record again who is present. Um we have Mr. Patton, Mr. Carroll, and Ms. Hill on behalf of TEP. A mister Mr. Smith is on Webex on behalf of the DOD and egg uh other federal executive agencies. No appearance on behalf of Pee Mick County.
Mr. Borman is in the room on behalf of the city of Tucson.
Uh Miss Cavalia is present on behalf of Walmart. No appearance today on behalf of Tesla. Miss Romanic is uh on WebEx on behalf of APS. Mr. Adams is on WebEx on behalf of Calpine. Miss Johnson is on WebEx on behalf of Airsea. Miss Reyes is on WebEx on behalf of AZ Perg, Wildfire, Sweep and the Citizens Groups. Miss Bustamante is on WebEx on behalf of IBEW. Um eleven sixteen, Mr. Corbin is present in the room. Mr. Dempsey on behalf of Underground Arizona is On Webex Mr. Crowley and Mr. Nelson are in the room on behalf of the Arizona Large Customer Group. Mr. Black is in the room on behalf of Freeport Minerals and Hud Bay Minerals. And Ms. Smith is on WebEx.
Uh Mr. McCoy is on Webex on behalf of the state. Mr. Pazowski and Ms. Barrio School are in the room on behalf of Ruco. And Miss Humphrey and Mr. Gollub are in the room on behalf of staff. And I don't see Mr Bain on behalf of Kroger. Okay. That's everyone. Any preliminary matters, procedural issues this morning?
No, no, I'd like to thank whoever brought the donuts. I think they overestimated how many donuts that we might eat, but They look good. It
was me. Thank you. You are very welcome. Okay. Anything else preliminary or procedural in nature? Okay. I don't have anything either. So with that, we will continue with the cross examination of Miss Boostamante. You can come forward.
Good morning, and I will remind you that you are still under oath. And Miss Bustamante, you can continue with your questions.
Thank you, Your Honor. Can you hear me?
Yes.
Okay, good. Good morning, Miss Postamante.
Morning.
Could you please turn to page twenty five of your direct testimony? And maybe while you do that, just let everybody in the room know. After this I'll be asking her to look at IBEW one. In case anybody wants to start pulling that up as well. But we'll start with page thirty five of your direct testimony. Yes.
Page twenty five.
Там On that page you testified that TEP's Transmission and distribution operations and maintenance costs only increased by five percent since the last test year. Is that correct? Correct. And am I correct that the last test here that you're referencing ended on December thirty first, twenty twenty one. Correct. Would you agree with me that the contracted labor costs Since twenty twenty one for TEP. Have increased much more than by just five percent.
Can you repeat the question, please?
Sure. Would you agree with me that contracted labor costs Have increased much more than by five percent. since December thirty first, twenty twenty one. I'd have to verify. Okay. Can you turn to IBEW one? And I'm I'm gonna ask you to look at what's attachment A to that document, which is Bates numbered I B E D I B E W twenty on the bottom right corner. Okay. Am I correct that you sponsored this response by TEP? Yes. Do you have any revisions that you need to make to the figures provided on it? Uh in the response there's reference to electrical line contractors. What do electrical line contractors generally do?
They work on our distribution and our transmission lines.
And there's also reference on this document to civil contractors. What do they do?
They do all the civil earth work. For all our Most
of our capital projects. And in this response, the request is for year over year. inflation percentage increases. Is that correct?
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Agenda
8 items
1
Who is present and what are the preliminary matters at the start of the hearing?
0:00–15:25
2
How does the testimony describe Tucson Electric Power’s transmission, distribution, and large‑power‑service facilities?
15:25–56:24
3
What is discussed about TEP’s financing costs, credit rating, and the impact of regulatory lag?
56:24–2:17:17
4
What is the incremental borrowing cost for a short‑term facility?
2:17:17–3:11:22
5
How does the discussion shift to TEP’s credit rating outlook and financial health?
3:11:22–4:01:59
6
What are the trends in TEP’s equity ratio and capital‑investment forecasts?
4:01:59–4:52:00
7
What climate hazards does Fortis report for 2026 and how might they affect TEP’s operations?
4:52:00–7:06:25
8
Why is TEP proposing a 2031 depreciation date and how does it relate to the ARAM and rate‑case expense amortization?
7:06:25–7:08:20
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