APS - Emegency Interim Rate Increase

On January 6, 2006, Arizona Public Service Company ("APS" or "Company") filed an application with the Arizona Corporation Commission ("ACC" or "Commission") for an emergency interim rate increase and for an interim amendment to Decision No. 67744, dated April 7, 2005.  APS is seeking an interim 14 percent increase over the Company's base rates which were authorized in Decision No. 67744. 

On January 12, 2006, RUCO filed a motion to intervene in the case and was granted intervenor status by the ACC's Hearing Division on January 25, 2006.

On January 27, 2006, the ACC's Chief Administrative Law Judge ("ALJ") issued a procedural order to govern the proceeding.

On Tuesday, February 28, 2006, ACC Staff, RUCO and other intervenors to the case filed direct testimony.  APS filed rebuttal testimony as scheduled on Monday, March 13, 2006.

The formal evidentiary hearing on the matter began on Monday, March 20, 2006 (at the Commission's Phoenix office at 1200 W. Washington), and concluded on Wednesday, March 29, 2006.  During that time witnesses were cross examined by attorneys, who represented the various parties to the case, and answered questions from the five ACC Commissioners who were in attendance during the hearing.    

On April 7, 2006, RUCO filed its post-hearing brief.   

After weighing the evidence presented during the proceeding, the CALJ issued her recommended opinion and order ("ROO") on April 19, 2006.  The ROO rejected the argument that an emergency existed and recommended the implementation of an interim adjustor, effective May 1, 2006, to allow APS to recover purchased power and fuel costs (with the exception of unplanned outage costs) incurred in 2006.

On May 2, 2006, by a vote of 4 to 1, ACC Commissioners passed an amended version of the ROO which increased the amount of recovery recommended by the CALJ.  Under the decision approved by the Commission, an average residential bill will increase by $7.33 per month in the summer and $4.74 in the winter over the life of the interim adjustor.

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On November 9, 2006, APS filed a Motion to Amend Decision No. 68685 which authorized the Company to implement an interim PSA adjustor for purchased power and fuel costs incurred during 2006.  APS requested that the ACC authorize the continuation of the interim PSA adjustor of $0.007 per kilowatt-hour until the Commission issues a final order in the Company's general rate case (Docket No. E-01345A-05-0816).

On December 8, 2006, the ACC convened an open meeting and held a hearing on APS' request.  RUCO expressed no opposition on the Company's request.

On December 12, 2006, the Commission issued Decision No. 69184 approving APS' request and  ordering that all fuel and purchased power costs associated with unplanned outages at the Company's Palo Verde nuclear Generating Station ("Palo Verde") during 2006 should be identified within the PSA and will be subject to refund once the ACC issues a decision on ACC Staff's prudence review of Palo Verde unplanned outages.

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