On Monday, January 31, 2011, Tucson Electric Power Company ("TEP" or "Company"), submitted an application ("Application") for Commission approval of its:
(i) Energy Efficiency Implementation Plan for 2011-2012 (“EE Plan”);
(ii) Proposed Demand-Side Management (“DSM’) Surcharge (“‘DSMS”); and
(iii) Authorized Revenue Requirement True-Up Mechanism ("ARRT").
TEP, a wholly-owned subsidiary of Tucson-based UniSource Energy Corporation, filed its Application in accordance with Arizona Administrative Code R14-2-2405 and the Arizona Corporation Commission’s ("ACC" or "Commission") Policy Statement of Regarding Utility Disincentive to Energy Efficiency and Decoupled Rate Structures.
On Monday, August 1, 2011, an Administrative Law Judge from the ACC's Hearing Division issued a Notification of Intervention granting intervenor status to Freeport-McMoRan Copper & Gold, Inc. (“Freeport-McMoRan”) and Arizonans for Electric Choice and Competition (“AECC”).
On Monday, September 26, 2011, Freeport-McMoRan and AECC filed comments objecting to TEP's proposed DSM surcharge.
On Wednesday, November 16, 2011, ACC Staff filed a Proposed Order on TEP's Application.
On Friday, December 2, 2011, TEP filed exceptions to ACC Staff's Proposed Order.
On Thursday, January 5, 2012, TEP filed supplemental comments to ACC Staff's Proposed Order.
Prior to a Regular Open Meeting held at the ACC's Phoenix offices on Tuesday and Wednesday, January 10 and 11, 2012, a number of comments from concerned parties were fled in the matter and ACC Commissioners filed amendments to ACC Staff's Proposed Order. During the Open Meeting, ACC Commissioners asked the parties to the case to try and resolve their differences and decided to delay a vote on the matter until a later date.
On January 31, 2012, TEP filed a Proposed Modified Implementation Plan (“Modified Plan”) which included (i) the programs recommended by Staff at 75% of the proposed budget; (ii) an Interim Performance Incentive; (iii) no Authorized Revenue Recovery True-up (“ARRT”); (iv) a proposed budget (inclusive of the current uncollected balance and performance incentives) of $29,694,240; (v) the 2013 Implementation Plan budget at the same level as 2012, but allowing TEP to propose modifications intended to improve 2013 Implementation Plan effectiveness; and (vi) a proposed per-kWh Demand-Side Management Surcharge (“DSMS”) of $0.003608 for residential customers, with a proposed 4.19% rate for all other customer classes. (The 4.19% would apply to all charges, except taxes and other governmental charges.)
TEP stated in its filing that its proposed Modified Plan provides the Company with “a reasonable opportunity to meet the EE Standard for 2012 and possibly for 2013.”
On Tuesday, February 28, 2012, ACC Staff filed amendments to its Proposed Order based on TEP's Modified Plan.
On Friday, March 9, 2012, TEP filed comments on ACC Staff's amendments to its Proposed Order.
On Friday, March 9, 2012, Freeport-McMoRan and AECC filed comments on ACC Staff's amendments to its Proposed Order.
During an Open Meeting held in Phoenix on Friday, March 16, 2012, which was also preceded by a number of parties filing comments and ACC Commissioners filing amendments, the Commission, by a vote of 4 - 1, decided to conduct an evidentiary hearing on TEP's Application.
On Friday, March 16, 2012, RUCO filed an Application to Intervene in the matter.
On Tuesday, March 27, 2012, the Administrative Law Judge ("ALJ") assigned to the matter issued a Notification of Intervention that granted RUCO's request to intervene.
Also on Tuesday, March 27, 2012, the ALJ issued a Procedural Order scheduling a procedural conference on TEP's filing for 10:00 a.m. on Wednesday, April 11, 2012, at 400 W. Congress in Tucson.
During the scheduled procedural conference, which was attended by three of the five sitting ACC Commissioners, the parties to the case, including RUCO, discussed what the scope of the proceeding should be and possible dates for an evidentiary hearing and the filing of written testimony.
On Monday, May 14, 2012, the ALJ assigned to the matter issued a Procedural Order scheduling an evidentiary hearing for 10:00 a.m. on Wednesday, July 11, 2012, at 400 W. Congress, Room 222, in Tucson.
RUCO filed its direct testimony and exhibits as scheduled on Friday June 15, 2012.
On Friday, July 6, 2012, RUCO filed its rebuttal testimony supporting TEP's updated plan.
A pre-hearing conference, to discuss the conduct of the hearing, was held on Monday, July 9, 2012, at 400 W. Congress, Room 222, in Tucson.
The evidentiary hearing on the matter began as scheduled on Wednesday, July 11, 2012, and concluded on Thursday, July 12, 2012. Witnesses for Tucson Electric Power, Arizonans for Electric Choice and Competition and RUCO Director Jodi A. Jerich testified on the first day of the hearing. Witnesses for TEP, EnerNOC, Inc., Southwest Energy Efficiency Project and ACC Staff testified on the second and final day of the hearing. Oral closing arguments were given at the end of the hearing in lieu of written legal briefs.
On Tuesday, August 21, 2012, the ALJ assigned to the matter issued a Recommended Opinion and Order ("EE ROO") that recommends re-opening Dockets No. E-01933A-07-0402, E-01933A-05-0650 and Decision No. 70628 pursuant to A.R.S. §40- 252, in order to consider proposed modifications to TEP's Demand Side Management Surcharge ("DSMS").
In a Procedural Order issued by the ALJ assigned to the matter on Tuesday, August 21, 2012, the parties to Dockets No. E-01933A-07-0402 and E-01933A-05-0650 were placed on notice that the Commission might reopen Decision No. 70628 for the sole purpose of re-examining and potentially modifying TEP's DSMS. Parties could file any comments or objections in the form of Exceptions to the EE ROO in Docket No. E-01933A-11-0055 by the exception deadline; and could appear to be heard at the Open Meeting at which the EE ROO would be discussed. The deadline for filing exceptions to the EE ROO was Thursday, August 30, 2012.
The EE ROO was tentatively scheduled to be voted on by the five sitting ACC Commissioners during the Regular Open Meeting to be held at 10:00 a.m. at 1200 W. Washington in Phoenix on Wednesday and Thursday, September 19 and 20, 2012, but was not listed on the Open Meeting agenda released on Monday September 17, 2012.
On Monday, September 17, 2012, TEP filed a letter with the ACC urging the Commissioners to consider the matter during the scheduled September 19, 2012 Regular open Meeting or, in the alternative, during a Special Open Meeting to be held before the end of September 2012.
On Tuesday, September 18, 2012, ACC Chairman Gary Pierce filed a response to TEP's request to consider the matter at the Commission's Regular Open Meeting scheduled for Wednesday, September 19, 2012. EnerNOC, Inc. also filed a letter in support of TEP's position on the issue.
On Wednesday, September 19, 2012, Commissioner Paul Newman filed a letter stating his position on the delay to vote on the ALJ's ROO.
On Thursday, September 20, 2012, Commissioner Sandra Kennedy filed a letter stating her opinion on the omission of the TEP item from the Regular Open Meeting agenda.
On Friday, September 21, 2012, Commissioner Bob Stump filed a letter stating his position on the issue.
On Thursday, September 27, 2012, ACC Chairman Gary Pierce filed a request for legal briefs on the matter from the parties to the case. The Chairman is requesting that initial briefs be filed by Friday, October 12, 2012, and reply briefs be filed by Friday, October 26, 2012.
On Friday, October 12, 2012, ACC Staff filed their initial brief and TEP, RUCO, Freeport-McMoRan, AECC, SWEEP, Western Resource Advocates (“WRA”) and EnerNOC filed ajoint initial brief.
On Friday, October 26, 2012, ACC Staff filed their reply/response brief and TEP, RUCO, Freeport-McMoRan, AECC, SWEEP, Western Resource Advocates (“WRA”) and EnerNOC filed a joint reply/response brief.
A final vote on the matter is expected to occur at a yet to be announced Open Meeting. The five Commissioners can accept, amend or reject the EE ROO.