The Arizona Corporation Commission said in a news release Tuesday that Tucson Electric Power is about halfway through the eight-step ratemaking process.
The process begins when a utility files an application and ends with a public vote by the Commission. It includes staff review, public comment, discovery, and a formal evidentiary hearing before an administrative law judge, the news release said.
After the hearing, the judge drafts a Recommended Opinion and Order, which the Commission can amend before voting at an open meeting.
Commission Chair Nick Myers said all parties will have the opportunity to present evidence and cross-examine witnesses.
The case is currently in the discovery and public comment phase. About a dozen groups or parties with a direct interest are participating, the news release said. They may file testimony and evidence supporting rates that differ from TEP’s request. All materials become part of the public record.
An evidentiary hearing is scheduled to begin on April 22 and is expected to last about three weeks. Commissioners, staff and intervenors will review thousands of pages of evidence, the news release said.
During a rate case, Commission staff conduct a detailed audit of the utility’s finances and accounting practices.
Rates are set using established accounting methods, expert testimony, market data and financial analysis to determine how much revenue the utility needs to recover prudent expenses and earn a reasonable return on investments.
