Winter Preparedness Workshop 2025 - AU-99999A-25-0004 - ACC- All Utilities

meeting

Arizona Corporation Commission 1h 30m 4 agenda items transcribed 2 days ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What opening remarks and prayers set the tone for the Winter Preparedness Workshop?

Unknown 0:01

Good morning. We will go ahead and get started this morning. Uh we're gonna start with a prayer by Commissioner Marcus Peterson and then the pledge by our executive director, Doug Clark. And please stand for the prayer.

Marcus Peterson 0:16

Good morning everybody. Please bow your heads if you'd like. Dear Lord We're so grateful for all that you provide us. Please be with us today as we prepare for the winter months in Arizona. Um and to help us to guide our questions, guide the content, um, to help protect our rate payers. And thank you, Lord, to everyone who has prepared their material for today. In your son's name, Amen.

Unknown 0:41

Yeah. I pledge allegiance to the flag of the United States of America. Republic for which it stands one nation under God indivisible with liberty and justice for

Russ Pyatt 0:59

all.

Unknown 1:03

Thank you. Uh we'll start with opening remarks, if any. And we'll start with uh Commissioner Marquez Peterson and uh Commissioner Lopez, are you on the line?

Unknown 1:21

Yes, I am on the line. Excellent. Uh so we'll go from uh Commissioner Marcus Peterson to Commissioner Lopez to myself, and then if staff has anything you would like to start with, uh go ahead.

Marcus Peterson 1:34

Thank you, Commissioner Weldon. And thank you. Is this on all right? Yes. Okay. Uh thank you again to everyone for coming, for preparing. I think these preparedness meetings, whether it be summer or winter, are vitally important to the state. Um and customers expect that we're looking not only to this upcoming season, but um but years to come. And I think we do a a pretty good job at this and sh it shows and our reliability throughout the state. But thank you again to everybody for participating today.

Unknown 2:09

Commissioner Lopez, do you have any opening comments you would like to share? Uh just to also to express my gratitude and thank you uh for those that did uh come uh for the preparedness uh and again looking forward to uh my first winter preparedness meeting. That's it. Thank you. Thank you. Uh same here. I'm looking forward to the speakers and know how important these preparedness meetings are and they're of great importance to the public. And does our staff have any comments you'd like to start with? All right. We will go ahead then and uh our first presentation is Southwest Gas with Chris Brown.

Chris Brown 2:55

Morning, Commissioners. How are you doing this morning?

Unknown 2:56

Good morning. Good.

Chris Brown 2:58

Thank you. Thank you for having us. Um, appreciate the opportunity to give you an overview of our winter preparedness, not only discussions that we've had from an operational perspective, um, but also provide an overview of some natural gas market updates, um, go through our winter portfolio as well as talk about potential impacts to customer bills compared to last year. Um, so to start out from a winter preparedness discussion and coordination discussions with the upstream pipelines, our Central Arizona division ha has had an opportunity already to meet with the two upstream pipelines that we receive transportation service from. Um, so both TW and El Paso, those meetings have already taken place in October and August.

Chris Brown 3:38

And as a matter of fact, today our Southern Arizona division will be meeting with EPNG to go through the operational discussions for the upcoming winter.

Unknown 3:46

Yeah, I'm not.

Chris Brown 3:47

So, some high level natural gas market updates. Um, similar to previous years, we kind of provide an overview of the interstate pipelines as well as what the Ford's prices are looking like at the moment. So, as you can see, the blue pipeline is El Paso, and the yellow pipeline is Transwestern. So, in terms of Ford's prices and comparing them to last year where they were at, you can see last year about 340 is what we're looking at in the San Juan Basin. It's about 380 is what the Ford's prices are looking like for this winter strip, the Novi through March strip. Um and then in terms of the Permian, the prices went, were about a buck fifty-six last year, and it's about a dollar eighty-seven at least at the moment.

Chris Brown 4:25

Um and these are these are Ford's prices that were taken on October 10th. So just kind of comparing to first of the month prices that we've seen historically over the last few years, as well as putting those Ford's prices and graphing those to the right hand side, um, what thing you can see is that the the high first of the month prices, particularly from the San Juan region that we saw at the beginning of January 2023, that's starting to kind of fall off.