Hearing - E-01933A-25-0103 - Tucson Electric Power Company Tucson

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Arizona Corporation Commission 5h 13m 8 agenda items transcribed 1 day ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What procedural steps and witness introductions open the hearing?

Unknown 0:00

All right everyone, we're gonna go ahead and get started. And let's go on the record. Good morning everyone. Welcome back to the Arizona Corporation Commission. This is the time set to continue the hearing in TEP's rate case, docket number Ending twenty five dash zero one zero three. And I will note that our broadcast is not working today. A recording of this proceeding will still be made and posted to the website. If any of the parties have witnesses that are Trying to view the preceding Um, they can still use WebEx, but the broadcast will be down for the foreseeable future. Your Honor, just if anyone doesn't have the link for today's webcast, they could email me and I will forward them the link I received.

Unknown 0:55

Okay, thank you, Mr. Patton. All right. And with that, Mr. Nelson, you can call your witness.

Mr. Nelson 1:03

Thank you, Your Honor. Um to start off this morning, the Arizona Large Customer Group would uh call Miss Billy LeCante to the stand.

Unknown 1:10

All right. Can you please raise your right hand? Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth?

Mr. Nelson 1:19

I do.

Unknown 1:20

Right, go ahead, Mr. Nelson.

Mr. Nelson 1:22

First uh I'll just Let you know, Miss LeCante, it's very important that you have that microphone pulled right up to you, um, in order for the folks on the web to hear you. And can I please ask you to start by um state and spelling your name for the record?

Billy Lacanti 1:38

Billy Lacanti B I L L I E L A C O N T E

Mr. Nelson 1:45

And Mr. Conte, by whom are you employed and in what capacity?

Billy Lacanti 1:48

I'm an associate consultant at J Pollock Inc.

Mr. Nelson 1:52

And on whose behalf did you file testimony in this proceeding?

Billy Lacanti 1:56

A Z L C G.

Mr. Nelson 2:00

List the Conte, do you have in front of you first what's been marked for identification as exhibit A Z L C G one, which was your revised direct testimony?

Billy Lacanti 2:11

Yes, I do.

Mr. Nelson 2:12

Do you also have in front of you what's been marked for identification as exhibit A Z L C G two, which is your Sir Rebuttal testimony?

Billy Lacanti 2:21

Yes, I do.

Mr. Nelson 2:22

And Ms. Lecante, if I were to ask you the questions contained in those two pieces of testimony today under oath, would your answers be the same?

Billy Lacanti 2:30

Yes, they would.

Mr. Nelson 2:32

Your Honor, I'd move for the admission of exhibit AZLCG one and two, please.

Unknown 2:40

Any objections? Hearing none, AZLCG one and two are admitted.

Mr. Nelson 2:51

Mr Conte, have you had a chance to prepare a summary of your testimony today?

Billy Lacanti 2:55

Yes, I have a brief summary.

Mr. Nelson 2:57

Please proceed.

Billy Lacanti 2:59

Good morning. My testimony addresses TEP's proposed annual rate adjustment mechanism or ARM. My primary recommendation is for the commission to reject the proposed ARM and continue traditional regulation. My object objection is based on several reasons, including The ARM reduces regulatory lag and therefore the utility's incentive to manage costs. The proposed ARM schedule provides less time for the commission, staff, and interveners to thoroughly review the filing and determine the prudence of the proposed costs and investments. Or some m multiple rounds of discovery. The ARM eliminates rate stability and does not include a cap on the annual increases, and the earnings deadband is too narrow, leading to more frequent rate adjustments.

Billy Lacanti 3:50

If the Commission adopts the ARM, I recommend the c the Commission adopt A Z L C G's proposed S R B and distribution cost recovery mechanism. In addition, I recommend eliminating post t test year adjustments. Modifying the procedural schedule to allow for big Extended time to submit discovery responses and informal challenges. Shorten the discovery r time response to five business days. Require TEP to provide a summary report and pre file testimony detailing the proposed changes and reasons for the proposed changes in the ARM. Establish an annual cap on rate increases of no than more than three percent. With no reca cost recovery above the cap. Establish a more reasonable earnings sharing debts ban of plus fifty or minus eighty basis points above or below the authorized return on equity.

Billy Lacanti 4:46

Require TEP to file a base rate case every three years and eliminate all adjusters except for the purchase power fuel adjuster clause and the transmission cost adjuster.