APS - Authorization for the Purchase of Generating Assets from Southern California Edison and for an Accounting Order

Docket Number
Assigned Staff
Dan Pozefsky
W. Rigsby


Case Information:


On Monday, November 22, 2010, Arizona Public Service Company (“APS” or “Company”) filed a request(link is external) ("Request") with the Arizona Corporation Commission ("ACC" or "Commission") for an authorization to purchase Southern California Edison's ("SCE") 48 percent share of the Four Corners Power Plant's Units 4 and 5.  APS is also seeking approval of an accounting order that allows it to (1) defer, for future recovery, certain costs relating to the transaction; and (2) provide assurance that APS may continue to recover the capital carrying costs, depreciation, decommissioning, mine reclamation, and other obligations that may arise with respect to the proposed retirement of Four Corners' Units 1, 2 and 3.

According to the Company's Request, APS cannot acquire SCE’s share of Units 4 and 5 without authorization to do so under the terms of the “self-build moratorium” imposed in Decision No. 67744, dated April 7, 2005.  APS believes that the circumstances of the proposed transaction fully support the Company's request and respectfully asks that the Commission approve it.

APS has also asked that the Commission rule on the matter expeditiously.

On Thursday, January 20, 2011, RUCO Director Jodi Jerich and other RUCO staff members toured the Four Corners Power Plant near Farmington, NM along with members of ACC Staff.

On Friday, January 21, 2011, RUCO filed a request to intervene(link is external) in the matter.  Other intervenors in the case include Western Resource Advocates and The Arizona Competitive Power Alliance.

On Monday, February 28, 2011, ACC Staff filed a request for a procedural schedule(link is external) establishing dates for the evidentiary hearing on the matter and the filing of written testimony from the various parties to the case.

On Thursday, March 3, 2011, RUCO filed a response(link is external) to ACC Staff's request.

On Friday, March 4, 2011, the Chief Administrative Law Judge ("CALJ") assigned to hear APS' request issued  a Procedural Order(link is external) scheduling a procedural conference for 10:00 a.m. on Tuesday, March 22, 2011 to discuss possible dates for an evidentiary hearing and the filing of written testimony

On Thursday, March 31, 2011, the CALJ issued a Procedural Order(link is external) that schedules the evidentiary hearing on the matter for 10:00 a.m. on Thursday, July 14, 2011 in Hearing Room #1 at 1200 W. Washington in Phoenix.

Direct testimony from ACC Staff, RUCO and other intervenors was filed on Tuesday, May 31, 2011.  Rebuttal testimony from APS and other intervenors was filed on Wednesday, June 22, 2011.

The evidentiary hearing on the matter began as scheduled at 10:00 a.m. on Thursday, July 14, 2011.  Witnesses for APS testified on Friday, July 15, 2011. 

The fourth day of the hearing was conducted on Tuesday, August 9, 2011. Witnesses for RUCO testified on that day and faced cross examination from the various parties to the case.

The hearing resumed at 9:00 a.m. on Thursday, September 1, 2011 and concluded on that same day.

Initial closing legal briefs were filed as scheduled on Friday, September 30, 2011.

Reply legal briefs were filed on Friday, October 14, 2011.

On Friday January 20, 2012, ACC Staff filed a Notice of Rate Case Hearing(link is external) to ensure that the parties to Docket No. E-01345A-10-0474 are aware of the pending APS rate case and the Proposed Settlement Agreement.  In its filing, ACC Staff requested that any Open Meeting Notices included with APS Hearing Notices list both Docket Nos. E-01345A-11-0224 and E-01345A-10-0474, to allow the Commission’s full consideration of the Proposed Settlement Agreement in the upcoming rate case hearing.

After weighing all of the evidence presented during the proceeding, the CALJ issued aRecommended Opinion and Order(link is external) ("ROO") on Tuesday, March 13, 2012.   The CALJ is  recommending that APS be allowed to pursue the purchase of SCE's 48 percent share of the Four Corners Power Plant's Units 4 and 5.

Exceptions to the ROO were due by 4:00 p.m. on Thursday, March 22, 2012.

During a Special Open Meeting conducted on Wednesday, April 18, 2012, the five sitting ACC Commissioners passed an amended version of the ROO.