Public Comment & Hearing - E-01787A-24-0278 - Navopache Electric Cooperative, Inc.

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Arizona Corporation Commission 39 min 5 agenda items transcribed 2 days ago official recording ↗

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What is the purpose and scope of the Navapache Electric Cooperative hearing?

Chris Nichols 0:01

All right, it's ten o'clock, let's go on the record. Good morning, everyone. This is the time set for the public comment and evidentiary hearing in the matter of the application of Navapatchy Electric Cooperative Inc., an Arizona nonprofit corporation. for determination of the current fair value of its utility plant and property, and for the establishment of just and reasonable rates and charges designed to realize a reasonable rate of return on the fair value of its plant and property, and for related approvals. Docket number E zero one seven eight seven A twenty four zero two seven eight I'm administrative law judge Chris Nichols and I have been assigned to preside over this matter. I'll now take uh appearances for the parties, beginning with the applicant NEC.

Megan Grapel 0:47

Thank you, Your Honor. Megan Grapel from the Law Firm Osborne Maladon for Navapatchy Electric Cooperative. And with me at council table is my colleague Elias Ancharski.

Chris Nichols 0:56

Good morning. And for staff.

Bridget Humphrey 0:59

Good morning, Your Honor, Bridget Humphrey and Rob Ridna Ridenauer on behalf of staff. Present today is our primary witness, Brunel uh Palladino. The other some of the other witnesses are present in the back of the room if if you feel you have questions for them, but uh they're not at at council table.

Chris Nichols 1:15

Thank you and good morning all. All right. Uh as for procedural issues, I did see that an issues matrix was filed in the docket this morning, so thank you for that. Um any other procedural issues that we need to address before we move on, Ms. Grable?

Bridget Humphrey 1:30

No, your honor.

Chris Nichols 1:31

Miss Humphrey.

Bridget Humphrey 1:32

From staff.

Chris Nichols 1:34

Right, we'll move on to public comment. So this is the Time scheduled for any mum any member of the public who wishes to do so to come forward and provide comments regarding this matter. Is there anyone in the hearing room today who wishes to provide public comment? Seeing and hearing none. Do we have anyone on the line who wishes to provide comment? And it would not appear so. All right, so that concludes our public comment this morning. So that brings us to opening statements. Ms. Grable, would uh NEC like to make uh an opening statement this morning?

Megan Grapel 2:15

I would. Thank you, Your Honor. Um, so again, good morning. On behalf of Navapachi Electric Cooperative, which we refer to as NEC or Nav Apache, I want to thank staff and your honor for the time you've spent on this matter. As you are aware, Navapachi and staff have worked diligently to prepare a settlement agreement that was the culmination of open communications and good faith negotiations. Both parties to the settlement kept the lines of communication open throughout the rate case and worked together to resolve the The very limited number of disputed issues between the parties. The result is a settlement agreement that we believe is a fair outcome for Navapatch staff and Navapaches members, and we respectfully request a recommended opinion and order recommending its approval.

Megan Grapel 2:55

And just by way of background, NEC is a Class A member-owned nonprofit rural electric distribution cooperative with its headquarters in Lakeside, Arizona. Navapche provides electric. Service to approximately 44,000 members in its 10,000 square mile service territory, which covers East Central Arizona and West Central New Mexico. Importantly, as a member-owned cooperative, profits are returned to members. And as such, NEC does not have any incentive to overinvest in infrastructure or initiate projects that are not absolutely necessary for the provision of safe and reliable utility services. Thus, Navapatchy does not take lightly the requested rate relief. But demand growth, as well as necessary infrastructure investments since the last rate case, which was in 2018, have substantially increased operating and revenue requirement needs.

Megan Grapel 3:46

For these reasons, as well as others that you will hear from witnesses today, we respectfully request the issuance of a RU approving the settlement agreement. We also ask that the Rue be issued in time so that The Commission can consider this matter in sufficient time for new rates to take effect by January 1st, 2026.