D EYED BEFORE THE ARIZONA CORPORATION COMMISSION NOTICE OF FILING RATE DESIGN TESTIMONY. Arizona Corporation Commission
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1 Timothy M. Hogan (0056) ARIZONA CENTER FOR LAW IN THE PUBLIC INTEREST 0 E. McDowell Rd., Suite JAN -9 A /I: Ib.- Phoenix, Arizona 8500 (60) Attorneys for Arizona School Boards Association and Arizona Association of School Business Officials BEFORE THE ARIZONA CORPORATION COMMISSION KRISTIN K. MAYES, CHAIRMAN GARY PIERCE PAUL NEWMAN SANDRA D. KENNEDY BOB STUMP IN THE MATTER OF THE APPLIC, TIC OF ARIZONA PUBLIC SERVICE COMPANY FOR A HEARING TO DETERMINE THE FAIR VALUE OF THE UTILITY PROPERTY OF THE COMPANY FOR RATEMAKING PURPOSES, TO FIX A JUST AND REASONABLE RATE OF RETURN THEREON, TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP SUCH RETURN Docket ). E NOTICE OF FILING RATE DESIGN TESTIMONY Arizona Corporation Commission D EYED 5 The Arizona School Boards Association ( ASBA ) and Arizona Association of School Business Officials ( AASBO ), through its undersigned counsel, hereby provide -1-
2 5 iotice that they have this day filed the direct rate design testimony of Chuck Essigs in ;onnection with the above-captioned matter. DATED this 9* day of January, 009. ARIZONA CENTER FOR LAW IN THE PUBLIC INTEREST BY Timothy M!! Hogfi 0 E. McDowell Rd., Suite 15 Phoenix, Arizona 8500 Attorneys for Arizona School Boards Association and Arizona Association of School Business Officials DRIGINAL and 1 COPIES of he foregoing filed this 9* day If January, 009, with: locket Control rizona Corporation Commission 100 W. Washington?hoenix, AZ 8500 COPIES of the foregoing zlectronically transmitted this 9* day of January, 009 to: 11 Py#ies of Record 5 --
3 COMMISSIONERS BEFORE THE ARIZONA CORPORATION COMMISSION MIKE GLEASON, Chairman WILLIAM A. MUNDELL JEFF HATCH-MILLER KRISTIN K. MAYES GARY PIERCE IN THE MATTER OF THE APPLICATION OF ARIZONA PUBLIC SERVICE COMPANY FOR A HEARING TO DETERMINE THE FAIR VALUE OF THE UTILITY PROPERTY OF THE COMPANY FOR RATEMAKING PURPOSES, TO FIX A JUST AND REASONABLE RATE OF RETURN THEREON, AND TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP SUCH RETURN. DOCKET NO. E-01 5A Permanent Rate Case Rate Design Testimony of Chuck Essigs On Behalf of Arizona School Boards Association and Arizona Association of School Business Officials January 9,009 Rate Design Testimony of Chuck Essigs Docket No. E-015A
4 5 Q* 6 A. 8 Q. 9 A. 10 Q. 11 A. 1 1 Q. 1 A RATE DESIGN TESTIMONY OF CHUCK ESSIGS 0 BEHALF OF ARIZONA SCHOOL BOARDS ASSOCIATION AND ARIZONA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (Docket No. E-015A-08-01) PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. Chuck Essigs. My business address is 00 North Central Avenue, Phoenix, Arizona DID YOU FILE DIRECT TESTIMONY IN THIS CASE? Yes. WHAT IS THE PURPOSE OF THIS TESTIMONY? I am proposing that a separate rate classification be established for Arizona public schools. PLEASE EXPLAIN. Arizona school districts are facing major financial issues over the next few years. Due to budget reductions from the state, Arizona school districts will be making a major effort to maintain funding for instructional programs for students. Reducing electric usage will need to be a priority for schools. The Arizona Schools Board Association (ASBA) and the Arizona Association School Business Officials, (AASBO), who represent school districts, propose that Arizona Public Service (APS) implement a time of use plan for school districts that will help reduce electric usage for school districts which will help districts control utility costs. Also, this plan will help APS by reducing total electric demand during traditional peak usage times. The attached chart shows the specific plan. The plan would follow many concepts already used by Salt River Project (SRP) in its existing Business Time-of-Use Plan (E- Plan). However, the specific time of use plan that we are requesting from APS is designed to meet the unique operational requirements of school districts. These unique requirements include state requirements, Rate Design Testimony of Chuck Essigs Docket No. E-0 15A
5 Q A. 1 1 Q. 15 A. for a minimum of 0 days of instruction and normal operational days with a starting time of 8:OOam with ending times at approximately :OO p.m. The concept for the specific time of use plan for school districts would have a summer plan (May-October) with peak utility rates going from :OO p.m. until 9:OO p.m. The winter Plan (November-April) peak utility rates from 6:OO a.m. until 1O:OO a.m. with a shoulder rate from 5:OO p.m. until 9:OO p.m. This proposal would provide cost savings to school districts by reducing utility usage during peak and shoulder times. This change in utility usage by school, will benefit APS by reducing total peak demand during traditional peak usage period. HAVE YOU DISCUSSED THIS PROPOSAL WITH REPRESENTATIVES FROM APS? Yes. APS is reviewing various alternatives and we are working collectively with them to identify a plan that benefits both Arizona s public schools and APS. DOES THAT CONCLUDE YOUR TESTIMONY? Yes Rate Design Testimony of Chuck Essigs Docket No. E
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