How a Rate Case Works

Starting in April, we'll be back in Rate Case season.  Both EPCOR and APS will be filing for new rates, and the Utilities Council will be right in the middle of both of them.  For folks that were with us the last go-round, this will be quite different than the mad scramble we went through.  So, we thought it would be a good time to run down the basics so you know what to expect.

The Phases:
Rate cases have a structure.  Each follows the same set of steps. They are:

• Filing/sufficiency
• Procedural Conference
• Testimony
• Rebuttal/Surrebuttal
• Recommended Order
• Decision

During each of these phases, there are opportunities for public comment, both through the Open Meetings and through correspondence.  This whole process can take anywhere from one to two years.

Filing/Sufficiency
During this phase, the Company provides their proposed rates, along with one-to-two thousand pages of documentation, justifying their proposal.  The data gathered for the supporting documentation is all compiled prior to filing during a "Test Year".

The Corporation Commission's Utilities Staff reviews the filing and determines whether all of the data is there to evaluate the proposal.  There is usually some back-and-forth between the Company and ACC Staff and, when they're satisfied, the filing is deemed "sufficient" and the clock begins.

Procedural Conference
This conference is held in an Open Meeting and sets the schedule for all future phases of the rate case.  The timeline can be argued by any party if they feel like they won't have the time to complete the required research and investigation before a particular milestone.  Once the procedural conference is held, the parties cannot speak directly with any commissioner outside of the structure of the rate case (no 'ex parte' communication).

This also signals the point when people can file to intervene on the case.  At least one member of the Utilities Council will file to intervene, allowing us to be on the mailing list for all correspondence and to literally have a seat at the table for testimony, decisions, and any settlement talks.  If you're not an intervenor, you can still petition the commission via public comment, but you aren't a party to the decision process.

Testimony
There's usually a pretty healthy period between the Procedural Conference and the first round of Testimony.  This gives everyone plenty of time to read and research the filing that the Company submitted.  Each intervenor files testimony in writing to the commission, and on the same day.  There is no oral testimony.  Each party stakes out their opening position.  All testimony is available to both intervenors and the public via the ACC's website.

Among those submitting testimony are: the Company (of course), a team of the ACC's Utilities Staff (they are independent from the commissioners), the Residential Utilities Consumer Office (RUCO, a consumer advocate body appointed by the Governor), impacted communities, and anybody else that is determined by the ACC to have a material interest in the outcome.

Rebuttal/Surrebuttal
Of course, people are going to have disagreements with what was filed in the original testimony from the various parties.  So there are two more rounds of testimony in which you refute the assertions made by others or further support the points you made in your original testimony.

It's important to note that rebuttal and surrebuttal are pretty much limited to the subject matter introduced in original testimony.  You don't get to pull any rabbits out of the hat, so you need to make sure your original testimony is as broad and thorough as possible.

Recommended Order
Once everyone has had their say, the complete docket is handed over to an Administrative Law Judge.  The judge takes all factors into account and then drafts a recommendation for the ACC Commissioners to consider.  This document (called a Recommended Opinion and Order, or ROO) is what the commission will actually vote to approve, reject, revise, or scrap altogether.

The ROO will be filed on the docket prior to the final open meeting for everyone to see.

It's usually about now that serious settlement conversations start to occur.

Decision
The final step is the open meeting where the ACC commissioners will actually vote on the ROO.  As stated above, the commissioners have total freedom to accept, amend, reject, or defer the decision for whatever reason they choose.  Whatever they decide is final.  There is an appeals process, but essentially the only reason a decision can be vacated is if it is "materially deficient" in some way.  That is, there were specific facts that were left out of the case that prevented a valid decision from being reached.

Lobbying the Commission
As stated above, the parties (intervenors) are prohibited from speaking directly to the commissioners during the course of a rate case.  But the public has no such restriction.  Any impacted ratepayer may contact any of the commissioners in writing, electronically, or by phone at any time.  In addition, the Commission, if properly requested, will hold Public Comment Hearings in locations convenient to the ratepayers affected by the case.  Finally, any ratepayer (who is not an intervenor) may speak during any Open Meeting at the ACC where their rate case is on the agenda.  This gives the public more access to commissioners than the Company.

Following the Case
The Utilities Council will provide details about ongoing rate cases through this website and share that information via as many outlets as possible.  But you can also follow every single document yourself by going to the ACC's eDocket site.  The process is completely transparent.