APS
2003 Rate Case Filing
On June 27, 2003,
Arizona Public Service Company ("APS" or "Company") filed an application to
increase its rates by $175.0 million1, or an average of 9.80%, to become effective on July 1, 2004. APS indicated that the requested increase includes recognition of the cost of
certain generation assets of APS’ affiliate Pinnacle West Energy Corporation
("PWEC"),
recovery of $234 million that APS wrote off pursuant to the 1999 Settlement
Agreement of APS’ stranded cost application, and recovery of all costs APS
prudently incurred to comply with the Commission’s Electric Competition Rules.
RUCO’s direct
testimony was filed as scheduled at 4:00
p.m. on Tuesday, February 3, 2004. RUCO opposed both the inclusion of the
PWEC generation assets in APS' rate base and the recovery of the $234 million
that was written off as part of the 1999 Settlement Agreement. ACC Staff
also filed direct
testimony
on that day as did other intervenors who are involved in the case.
On February 4, 2004, Pinnacle West Capital Corporation (the parent company of
APS) stated, in an
8-K filing with the U.S. Securities and
Exchange Commission ("SEC"), that it will
"vigorously oppose"
the recommendations of ACC Staff and RUCO.
Below is a comparison of what APS is
proposing in its application, and what RUCO is recommending in its direct
testimony:
|
|
|
(A) |
|
(B)
|
|
(C) |
|
|
|
|
APS |
|
RUCO
|
|
|
|
|
|
|
PROPOSED |
|
RECOMMENDED
|
|
|
|
|
|
|
ORIGINAL |
|
ORIGINAL |
|
DIFFERENCE |
|
|
|
|
COST |
|
COST |
|
[ (B) - (A) ] |
|
|
|
DESCRIPTION |
($000's) |
|
($000's) |
|
($000's) |
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED RATE
BASE |
$4,207,476
|
|
$
3,051,479 |
|
$ (1,155,997) |
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
OPERATING INCOME |
263,870
|
|
258,992 |
|
(4,878) |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT RATE OF
RETURN (L2 ÷ L1) |
6.27%
|
|
8.49% |
| |
RUCO 
