Hearing - E-01933A-25-0103 - Tucson Electric Power Company Tucson - May 12, 2026

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Arizona Corporation Commission 4h 28m 8 agenda items transcribed 3 days ago official recording ↗

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What procedural steps open the hearing and how is the record established?

Unknown 0:01

We will go ahead and get started then. Let's go on the record. Good morning and welcome back to the Arizona Corporation Commission. This is day 14. In TEP's rate case, docket number ending twenty five zero one. Zero three. Does anyone have any procedural issues or questions they'd like to cover this morning before we get started? Uh just a question from you, Your Honor, and I I apologize if everybody else remembered and I'm just not recollecting. Is Mr. Rodamaker planning to return to us this afternoon if we finish with the others? Yes, he is. Thank you, Your Honor. Anything else? All right, Miss Johnson, you can recall your witness. Thank you, Your Honor. I called Kevin Lucas. All right, Mr. Lucas, due to the passage of time I'm gonna swear you in again.

Unknown 0:56

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?

Kevin Lucas 1:04

Yes, I do.

Unknown 1:06

Right, go ahead, Miss Johnson.

Miss Johnson 1:08

Thank you, Your Honor. All right, Mr. Lucas, could you just tell us again who you are and where you were?

Kevin Lucas 1:13

Sure, Kevin Lucas working with the Solar Energy Industries Association or SIA.

Miss Johnson 1:18

I believe we have a new court reporter. Do you mind spelling your last name?

Kevin Lucas 1:22

Uh yes, it's uh full name is Kevin K E V I N. Lucas L U C A S Okay.

Miss Johnson 1:31

And obviously you're the same Kevin Lucas that testified on behalf of Aresia last week, correct?

Kevin Lucas 1:36

That's correct.

Miss Johnson 1:37

Okay. Uh, before we get started, um, and for the purpose of the record the the point of this is to uh address some Aerosia exhibits and also to to um respond to Mr. Elliott's testimony since he went after us. Co before we get going, let's just talk about some of the um Aresia exhibits. Could you tell me what Aresia twenty five is?

Kevin Lucas 2:03

Sure. Um airc a twenty five is Two data responses and one spreadsheet associated with the data response. This is related to the discussion of the peak and off peak. um energy values that uh Mr. Elliott included in his analysis and also related to how company incorporates capacity related uh charges in its time of use rates. So that the first one, ARCO 1104. Um it's it's one page with the explanation requesting the variable energy costs.

How does Kevin Lucas get sworn in and what background does he provide?

Kevin Lucas 2:37

And then four pages, um, one of which is blank. uh of a spreadsheet that contains that data. Um and then Aresia twelve point two is talking about how demand related costs are incorporated into a volumetric rate that doesn't have a demand charge. Um and the response is confirming that the company puts those in the tiered portion of the energy charge, not in the time of use portion.

Miss Johnson 3:04

Okay, and just for the purpose of the record, is that twelve point oh two?

Kevin Lucas 3:07

Correct, twelve point oh two is the second one.

Miss Johnson 3:09

Okay, and then what is Aresia twenty three?

Kevin Lucas 3:15

Aerosia twenty three is another discovery response. Um this is Aerosia thirteen oh one. Uh and it's a a fairly long discovery that was inquiring about sort of the nature of retail prices. um how they're supposed to work. It it was a follow-up on a number of different questions talking about demand rates, um, how the company performs its analysis uh and the like. And so it was it was covering issues about The companies modeled avoided costs, uh, their their ranges again similar to what Mr. Elliott had testified in terms of the differential, um, talking about the way that um Customers who save money on different rates are are able to respond or are not responding and so on. So it's a collection of discussions back and forth about.

Kevin Lucas 4:03

the demand charges, their structure and and how customers behave on them.

Miss Johnson 4:11

Okay. And before we move on, Your Honor, is he cutting out for you or is that just me?

Unknown 4:17

Just you, Miss Johnson.

Miss Johnson 4:21

Okay. Might be a bandwidth issue. If that continues, I might turn off my video. Um, just an FYI. Okay. Did you hear the verbal testimony of Mr. Elliott last week?

Kevin Lucas 4:32

Yes, I did.

Miss Johnson 4:35

Okay. Do you have anything that you'd like to add in response to his verbal testimony?

Kevin Lucas 4:40

Uh I do have a few things. Um There there's A couple of differences that we have that I I think are fairly clear in our in our discussions and our testimony. um to date, but I think there was a few specific points that uh Mr.