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​​april 24, 2017
​​what stakeholders are saying about aps's rate review agreement
PHOENIX – Several stakeholders in APS’s Rate Review have filed direct testimony with the Arizona Corporation Commission to support the consensus agreement. Overall, 29 of 40 stakeholders in the rate review process support the agreement, including ACC staff, the Residential Utility Consumer Office, merchant generators, unions, seniors, business customers, environmental groups, limited-income advocates, schools and several private rooftop solar organizations.

 

The following are excerpts from supporting stakeholder testimony:

“As it relates to the issues I focused on, this agreement protects current solar customers and will allow for new solar installations. Additionally, the AZ Sun II program will allow for more customers, including low income, to have access to solar.” (p. 2)

Sean Seitz, The Arizona Solar Deployment Alliance

“By increasing the low-income discount and low-income medical discount to 25% and 35% of a customer’s bill, respectively, the energy burden of many low-income customers will be reduced to a more affordable level. By committing to fund bill assistance at $1.25 million per year, the settlement provides for assistance to the most vulnerable, ensuring that community agencies have enough assistance funds to meet the need of the community.” (p. 2)

Cynthia Zwick, Arizona Community Action Association

“The agreed-upon rate plans provide a mix of new modern rates, like demand rates and TOU rates with a more accurate on-peak period, and traditional volumetric rates designed for differing usage patterns. While some of the rate design changes originally sought by the Company, and supported by AIC, have not been adopted, the rates contained in the Settlement Agreement provide a positive step forward to modernize APS's rate design.” (p. 8)

Gary Yaquinto, Arizona Investment Council

“As I explain in this testimony, Vote Solar finds the Proposed Settlement Agreement to be fair, reasonable, and in the public interest and recommends that the Commission adopt it without modification.” (p. 1)

Briana Kobor, Vote Solar

“The settlement preserves customer choice, offers rates that provide incentives to efficiently use electricity, and provides a reasonable opportunity for APS to recover its costs.” (p. 2)

James Heidell, Energy Freedom Coalition of America

“The IBEW Locals believe that the Agreement balances APS's rate increase with benefits for its employees and its customers.” (p. 4)

David Vandever, IBEW Locals 387 and 769

“My recommendation to the Arizona Corporation Commission ("the Commission") is that the Commission should approve the Settlement as filed. The Settlement is the just and reasonable outcome of extensive arms-length negotiations conducted in good faith between the parties in this docket. Additionally, the settlement process greatly aids in administrative efficiency, which can reduce costs to all parties and ratepayers.” (p. 2)

Chris Hendrix, Wal-Mart Stores, Inc. and Sam’s West, Inc.

“It brings a fair resolution to a very contentious and politically charged issue that potentially could have cost rate payers a lot more in the absence of a Settlement. The Agreement also satisfies the public interest by providing a fair and balanced approach to addressing the Company's concerns on required costs and revenue.” (p. 5)

“In RUCO’s view, the Company would likely receive an even higher revenue requirement, if this case were to be litigated rather than settled. By agreeing to the revenue requirement in the settlement, RUCO strongly believes that rate payers are getting the best deal possible.” (p. 7)

“In total, over 80% of customers receive either a decrease or only a small increase (in the basic service charge), much different than what is being portrayed through the media and in public. Of note, the proposed BSC structure is consistent with Commission precedent set in both the UNS Electric and TEP rate case.” (p. 8)

“Finally, and perhaps of the most significance, and likely something that would never have happened without a settlement, is the brokered peace relating to roof-top solar. A sustainable path forward was developed to lessen the impact on non-solar customers while still providing enough incentive for the solar industry to continue operating. For the foreseeable future, the prospects of legal challenges, legislation, and voter initiatives is set aside which hopefully leads to a more collaborative relationship and sustainable future, moving forward.” (p. 9)

David Tenney, Residential Utility Consumer Office (RUCO)

APS serves about 2.7 million people in 11 of Arizona’s 15 counties, and is the Southwest’s foremost producer of clean, safe and reliable electricity. Using a balanced energy mix that is nearly 50 percent carbon-free, APS has one of the country’s most substantial renewable energy portfolios, and owns and operates the Palo Verde Nuclear Generating Station, the country’s top power producer and largest producer of carbon-free energy.  The company is also a proven leader in introducing technology and services that offer customers choice and control over their energy consumption.  With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

​​"By agreeing to the revenue requirement in the settlement, RUCO strongly believes that rate payers are getting the best deal possible.”​
– David Tenney, Residential Utility Consumer Office (RUCO)​