Hearing - W-01427A-25-0126 - Liberty Utilities (Litchfield Park Water and Sewer) Corp. SW-01428A-25-0127 et al

meeting

Arizona Corporation Commission 6h 57m 8 agenda items transcribed 2 days ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What procedural steps and witness swearing‑in are covered at the start of this segment?

Your Honor 0:01

Let's go ahead and go back on the record. Okay. Ms. Barrios-Cool, we had finished with Mr. Tsai, correct?

Ms. Barrios-Cool 0:11

Yes, Your Honor.

Your Honor 0:12

Okay. Then if, oh, let me ask if there are any housekeeping matters or procedural matters or anything? No? Okay.

Ms. Barrios-Cool 0:19

I do have one thing with respect to our next witness, who will be Ms. Crystal Brown. I have, I believe that she's going to refer to confidential RUCO Exhibit 25. And in this respect, I'm not sure that we can avoid it. So I just wanted to alert you that we might have to let the folks in the comm room know.

Your Honor 0:46

Okay. Give me a moment. Sorry. Sorry, Jen. Back off the record again.

Your Honor 1:41

All right, let's go back on the record again, again. And so Ms. Barrow's cool, go ahead.

Ms. Barrios-Cool 2:04

Thank you, Your Honor. And good morning once again. Ruko would call its next witness, Ms. Crystal Brown.

Your Honor 2:28

Good morning, Ms. Brown. If you could please remain standing to be sworn in by the court reporter.

Court Reporter 2:38

Good morning. Do you solemnly swear or affirm that the testimony you're about to give will be the truth, the whole truth, and nothing but the truth? I do. Thank you. All right.

Your Honor 2:46

Have a seat and double check. Make sure your microphone's on, please.

Ms. Barrios-Cool 2:53

Yep. Yeah. And Your Honor, during the course of Ms. Brown's testimony, I'm going to ask her to provide a brief summary. And I have copies of that. If I may approach, Your Honor. Please. Council tables.

Ms. Humphrey 3:06

Please. Please.

Unknown 3:26

Ms. Brown, good morning. Could you please...

Your Honor 3:30

Microphone.

Ms. Barrios-Cool 3:32

Ms. Brown, good morning. Could you please state your name for the record? Tell us how you are employed and where.

Crystal Brown 3:43

My name is Crystal Brown. I work for the Residential Utility Consumer's Office, and I am a public utilities account analyst.

Ms. Barrios-Cool 3:55

And... You should have in front of you a great many binders. There are some white binders that do not have covers. Those are Rucos. And within those binders, could you look for Rucos 5 and 6, please?

Unknown 4:16

I have it.

Ms. Barrios-Cool 4:18

And is RUCO 5 the direct testimony that you prepared in connection with this case?

Unknown 4:24

Yes.

Ms. Barrios-Cool 4:25

And is RUCO 6 your surrebuttal testimony slash opposition to the settlement that you prepared in connection with this case?

Unknown 4:32

Yes.

Ms. Barrios-Cool 4:34

Okay. Did you have any other testimony or notices of errata relating to your testimony as far as you can recall?

Crystal Brown 4:41

No. No.

Ms. Barrios-Cool 4:43

And these documents Ruko five and six they were prepared by you or at your direction.

Unknown 4:48

Yes

Ms. Barrios-Cool 4:50

Do you have any additions or corrections to either of those documents?

Crystal Brown 4:54

Ms. Barrios-Cool 4:57

I'd move to admit what's been marked as Ruko five and six. Okay any objections

Your Honor 5:05

No objection, all right Ruko exhibits five and six are admitted

Ms. Barrios-Cool 5:11

Could you also identify in the binder RUCO 10?

Crystal Brown 5:23

That is the commission decision relating to the company's request to defer depreciation expense for the Saraval water reclamation facility.

Ms. Barrios-Cool 5:40

And is it decision number 81022, docketed March 20th, 2025? Yes, 80122.

Crystal Brown 5:49

And

Ms. Barrios-Cool 5:51

did you review this decision and rely on it in connection with your testimony?

Unknown 5:58

Yes.

Ms. Barrios-Cool 5:59

Okay, I move to admit RUCO 10. Any objection? None from

Your Honor 6:06

staff. RUCO 10 is admitted.

Ms. Barrios-Cool 6:16

Ms. Brown, would you please provide a summary of your testimony and reply to any rejoinder at this point?

Crystal Brown 6:23

Yes, in regards to the lag days used for interest expense on long-term debt, RUCO's recommended lag days of 91.25 is more reasonable than the settlement agreement's 50 lag days. In regards to test your plant retirements, the company stated in response to staff data request 4.04 that it had discontinued making retirement entries in 2019. RUCO makes recommendations to address the lack of test year retirements. In regards to depreciation expense for the fully depreciated pumping equipment, consistent with commission rules, the pumping equipment should continue to be included in plant and service until such time as the company ascertains that the pumps have been physically removed or abandoned, and the retirements have been recorded in Liberty Litchfield's books and records.

Crystal Brown 7:21

In regards to the accumulated depreciation synchronized to the company's depreciation annualization, RUCO is not rolling forward any accumulated depreciation into a future period. So any characterization of RUCO's adjustment as a roll forward is incorrect.