Tucson Electric Power Company - 2012 Rate Case
On Monday, July 2, 2012, Tucson Electric Power Company ("TEP" or "Company") filed an application(link is external) ("Application") with the Arizona Corporation Commission ("ACC" or "Commission") requesting an increase in non-fuel related operating revenues of $127.7 million, or 15.27 percent, over the Company's test year adjusted revenues of approximately $110.8 million.
According to revised schedules contained in a Notice of Errata(link is external) filed by TEP on Friday, August 17, 2012, an average TEP residential customer would see his or her monthly bill bill climb from $85.17 to $95.82 for an increase of $10.65.
On Thursday, August 2, 2012, ACC Staff issued a Letter of Sufficiency(link is external) informing TEP that its Application had met the sufficiency requirements of R14-2-103.B.7 of the Arizona Administrative Code.
On Friday, August 3, 2012, RUCO filed an application to intervene(link is external) in the case. Also on Friday, August 3, 2012, ACC Staff and TEP filed a joint request for procedural schedule(link is external) that included proposed dates for an evidentiary hearing and the filing of written testimony for the ACC Hearing Division's consideration.
On Monday, August 6, 2012, RUCO filed a response(link is external) to ACC Staff and TEP's joint request for procedural order.
On Monday, August 13, 2012, TEP, ACC Staff and RUCO filed a revised procedural schedule(link is external) that included proposed dates for an evidentiary hearing and the filing of written testimony for the ACC Hearing Division's consideration.
On Friday, August 17, 2012, the Administrative Law Judge ("ALJ") assigned to hear the case issued a Notification of Intervention(link is external) that granted intervenor status to Southern Arizona Homebuilders Association ("SAHBA"), Freeport-McMoRan Copper & Gold Inc. ("Freeport-McMoRan"), The Kroger Company ("Kroger"), EnerNOC , Inc. ("EnerNOC"), Arizona Public Service Company ("APS"), and RUCO. Also on August 17, 2012 the ALJ issued aProcedural Order(link is external) scheduling a procedural conference for 10:00 a.m. on Tuesday, August 28, 2012, at 400 W. Congress Street, Room 222 in Tucson. Parties to the case would be able to take part in the conference telephonically by calling (602) 595-4835 - conference call code 3001.
On Wednesday, August 15, 2012, TEP filed a notice(link is external) with the ACC, informing all interested parties that a series of technical conferences would be conducted during the month of September. The technical conferences have been scheduled for 10:00 a.m. on September 5, 11, and 26, 2012, in the second floor conference room at the Commission's Phoenix offices located at 1200 W. Washington in Phoenix. TEP later rescheduled the September 26th conference for Friday, September 28, 2012.
On Thursday, August 23, 2012, Local Union 1116, International Brotherhood of Electrical Workers, AFL-CIO (“IBEW Local 1116”) and Southwest Energy Efficiency Project ("SWEEP") filed requests to intervene in the case.
On Monday, August 27, 2012, the Sierra Club ("Sierra Club") filed a request to intervene in the case.
On Tuesday, August 28, 2012, ACC Staff, RUCO and other parties to the case took part in the scheduled procedural conference and discussed possible dates for settlement discussions and the the evidentiary hearing on the matter.
On Thursday, September 6, 2012, the ALJ issued a Procedural Order(link is external) scheduling the evidentiary hearing on the matter for 10:00 a.m. on Wednesday, March 6, 2013, at 400 West Congress in Tucson, Room 222. A pre-hearing conference will be conducted at 10:00 a.m. on Monday, March 4, 2013 at the same location. The Procedural Order also grated intervenor status to SWEEP, IBEW local 116 and the Sierra Club.
A public comment meeting will be conducted at 5:30 p.m. on Monday, March, 4, 2013, at 400 West Congress in Tucson, Room 222. Public comment is also generally taken during the first day of the evidentiary hearing. ACC Commissioners may conduct other public comment meetings in TEP's service area depending on the response they get from TEP customers.
On Friday, September 7, 2012 and Tuesday, September 18, 2012, the Department of Defense and All Other Federal Executive Agencies ("DOD/FEA") and the Arizona Investment Council ("AIC"), respectively, filed requests for intervenor status in the proceeding.
On Thursday, September 20, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to DOD/FEA.
On Friday, September 28, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to AIC.
On Thursday, October 4, 2012, TEP filed a notice(link is external) informing all interested parties that the Company would be hosting a conference call at 10:00 a.m. on Wednesday, October 10, 2012, regarding the cost-effectiveness methodology included in TEP's proposed Energy Efficiency Resource Plan.
On Friday, October 26, 2012, Southern Arizona Water Users Association (“SAWUA”) filed a request for intervenor status in the proceeding.
On Monday, October 29, 2012, Cynthia Zwick filed a request for intervenor status in the proceeding.
On Thursday, November 1, 2012, Vote Solar Initiative (“Vote Solar”) filed a request for intervenor status in the proceeding.
On Thursday, November 8, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to SAWUA and Cynthia Zwick.
On Wednesday, November 14, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to Vote Solar.
On Thursday, November 15, 2012, Solar Energy Industries Association (“SEIA”) filed a request for intervenor status in the proceeding.
On Friday, November 16, 2012, Arizona Solar Energy Industries Association (“AriSEIA”) filed a request for intervenor status in the proceeding.
On Wednesday, November 21, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to SEIA.
On Tuesday, December 11, 2012, Opower, Inc. (“Opower”) filed a request for intervenor status in the proceeding.
On Thursday, December 13, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to AriSEIA.
On Friday, December 28, 2012, the ALJ assigned to the case issued a Notification of Intervention(link is external) granting intervenor status to Opower.
Direct testimony on required revenue from the parties to the case, including RUCO, was filed on Friday, December 21, 2012.
On Friday, December 11, 2013, RUCO filed direct testimony on rate design, supplemental direct testimony on required revenue and direct testimony on TEP's Energy Efficiency Resource Plan.
Under RUCO's recommended rates, a typical customer on the company's Residential Service R-01 rate plan (non-time-of-use), using 1,000 kWh during the summer months, would see his or her bill increase by $5.08, or 5.18 percent, from $98.14 to $103.22 as opposed to TEP's proposed increase of $19.64 or 20.01 percent.
Under its revised required revenue analysis, RUCO is recommending that the ACC grant TEP a $46.3 million, or 5.54 percent, increase in operating revenues as opposed to the Company's request for an increase of $127.7 million, or 15.27 percent, in operating revenues.
RUCO is recommending that he Commission reject TEP's Energy Efficiency Resource Plan.
Formal settlement discussions began as scheduled at 10:00 a.m. on Tuesday, January, 15, 2013.
On Tuesday, January 22, 2013, ACC Staff filed a preliminary term sheet(link is external) on the settlement negotiations which was reviewed by the five sitting ACC Commissioners during a Special Open Meeting held on Wednesday, January 23, 2013.
On Monday, February 4, 2013, Staff of the Arizona Corporation Commission filed a copy of a proposed settlement agreement(link is external) ("Settlement Agreement"). TEP, RUCO, ACC Staff and a number of other intervenors to the case are signatories to the Settlement Agreement.
The focus of the proceeding will now be on the Settlement Agreement and whether or not it is in the public interest.
RUCO filed its direct testimony(link is external) in support of the Settlement Agreement on Thursday, February, 14, 2013.
Responsive testimony in support of, or in opposition to, the Agreement was filed by Friday, March 1, 2013. All testimony was due by 4:00 p.m. on the scheduled filing dates.
On Monday, March 4, 2013, the scheduled public comment meeting was conducted at 400 West Congress in Tucson. Seventeen concerned individuals expressed their views on the rate case with all five sitting ACC Commissioners.
The evidentiary hearing on TEP's rate application began on Wednesday, March 6, 2013, and concluded on Friday, March 8, 2013.
Initial closing legal briefs are scheduled to be filed on Friday, March 22, 2013. Responsive legal briefs will be due on Friday, March 29, 2013.
On Friday, March 22, 2013, RUCO filed a supplemental brief(link is external) that addressed the subject of adjustor mechanisms in the Settlement Agreement.
After weighing all of the evidence presented in the case, the ALJ issued a Recommended Opinion and Order(link is external) ("ROO") on Friday, May, 17, 2013.
Exceptions to the ROO were due by 4:00 p.m. on Tuesday, May 28, 2013.
During the Regular Open Meeting held on Tuesday, June 11, 2013, the ACC Commissioners adopted an amended ROO by a vote of 4 to 1. The final decision keeps existing energy efficiency programs in place under the current cost recovery mechanism and orders the establishment of a generic docket to study energy efficiency programs and other methods of cost recovery.
On Thursday, June 27, 2013, the Commission issued Decision No. 73912(link is external) which established TEP's new rates and charges.