Commission File Number | Exact Name of Registrant as Specified in Charter; State of Incorporation; Address and Telephone Number | IRS Employer Identification Number |
1-8962 | Pinnacle West Capital Corporation (an Arizona corporation) 400 North Fifth Street, P.O. Box 53999 Phoenix, AZ 85072-3999 (602) 250-1000 | 86-0512431 |
1-4473 | Arizona Public Service Company (an Arizona corporation) 400 North Fifth Street, P.O. Box 53999 Phoenix, AZ 85072-3999 (602) 250-1000 | 86-0011170 |
• | a test year ended December 31, 2015, adjusted as described below; |
• | an original cost rate base of $6.8 billion, which approximates the ACC-jurisdictional portion of the book value of utility assets, net of accumulated depreciation and other credits, as of December 31, 2015; |
• | the following proposed capital structure and costs of capital: |
Capital Structure | Cost of Capital | ||||
Long-term debt | 44.20 | % | 5.13 | % | |
Common stock equity | 55.80 | % | 10.50 | % | |
Weighted-average cost of capital | 8.13 | % |
• | a 1% return on the increment of fair value rate base above APS’s original cost rate base, as provided for by Arizona law; |
• | a base rate for fuel and purchased power costs of $0.029882 per kilowatt-hour (“kWh”) based on estimated 2017 prices (a decrease from the current base fuel rate of $0.032071 per kWh); |
• | authorization to defer for potential future recovery its share of the construction costs associated with installing selective catalytic reduction equipment at the Four Corners Power Plant (estimated at approximately $400 million in direct costs). APS will propose that the rates established in this rate case be increased through a step mechanism beginning in 2019 to reflect these deferred costs; |
• | authorization to defer for potential future recovery in the Company’s next general rate case the construction costs APS incurs for its Ocotillo power plant modernization project, once the project reaches commercial operation. APS estimates the direct construction costs at approximately $500 million and that the new facility will be fully in service by early 2019; |
• | authorization to defer until the Company’s next general rate case the increase or decrease in its Arizona property taxes attributable to tax rate changes after the date the rate application is adjudicated; |
• | updates and modifications to four of APS’s adjustor mechanisms - the Power Supply Adjustor (“PSA”), the Lost Fixed Cost Recovery Mechanism (“LFCR”), the Transmission Cost Adjustor (“TCA”) and the Environmental Improvement Surcharge (“EIS”); |
• | a number of proposed rate design changes for residential customers, including: |
◦ | change the on-peak time of use period from 12 p.m. - 7 p.m. to 3 p.m. - 8 p.m. Monday through Friday, excluding holidays; |
◦ | reduce the difference in the on- and off-peak energy price and lower all energy charges; |
◦ | offer four rate plan options, three of which have demand charges and a fourth that is available to non-partial requirements customers using less than 600 kWh on average per month; and |
◦ | modify the current net metering tariff to provide for a credit at the retail rate for the portion of generation by rooftop solar customers that offsets their own load, and for a credit for excess energy delivered to the grid at an export rate. |
• | proposed rate design changes for commercial customers, including an aggregation rider that allows certain large customers to qualify for a reduced rate, an extra-high load factor rate schedule for certain customers, and an economic development rate offering for new loads meeting certain criteria. |
Exhibit No. | Registrant(s) | Description |
99.1 | Pinnacle West APS | APS Rate Case Filing Overview slide presentation for use at investor and analyst meetings from June 2, 2016 through June 14, 2016. |
99.2 | Pinnacle West APS | News Release issued on June 1, 2016. |
PINNACLE WEST CAPITAL CORPORATION | ||
(Registrant) | ||
Dated: June 1, 2016 | By: /s/ James R. Hatfield | |
James R. Hatfield | ||
Executive Vice President and | ||
Chief Financial Officer | ||
ARIZONA PUBLIC SERVICE COMPANY | ||
(Registrant) | ||
Dated: June 1, 2016 | By: /s/ James R. Hatfield | |
James R. Hatfield | ||
Executive Vice President and | ||
Chief Financial Officer |
Exhibit No. | Registrant(s) | Description |
99.1 | Pinnacle West APS | APS Rate Case Filing Overview slide presentation for use at investor and analyst meetings from June 2, 2016 through June 14, 2016. |
99.2 | Pinnacle West APS | News Release issued on June 1, 2016. |