SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 1999
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ARIZONA PUBLIC SERVICE COMPANY
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(Exact name of registrant as specified in its charter)
Arizona 1-4473 86-0011170
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona 85004
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(Address of principal executive offices) (Zip Code)
(602) 250-1000
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
As of May 14, 1999, Arizona Public Service Company (the "Company" or "we")
entered into a comprehensive Settlement Agreement with various other parties,
including representatives of major consumer groups, related to the
implementation of retail electric competition. This Settlement Agreement has
been filed with the Arizona Corporation Commission (the "ACC") with a request
for the ACC to establish a procedural schedule so that the ACC can review the
settlement as soon as practicable. By its terms, the Settlement Agreement will
not become effective unless and until the issuance of a final ACC order
approving the Settlement Agreement without modification on or before August 1,
1999.
The following are the major provisions of the Settlement Agreement, which is
attached as an exhibit to this Form 8-K and incorporated herein by reference:
* We will reduce rates for standard offer service for customers with loads
less than 3 megawatts ("MW") in a series of annual rate reductions of 1.5%
beginning July 1, 1999 through July 1, 2003, for a total of 7.5%. The first
reduction includes the July 1, 1999 retail price decrease related to the
1996 regulatory agreement. See Note 6 of Notes to Condensed Financial
Statements in Part I, Item 1 of our Quarterly Report on Form 10-Q for the
fiscal quarter ended March 31, 1999 (the "March 10-Q"). For customers
having loads 3 MW or greater, standard offer rates will be reduced in
annual increments that total 5% through 2002.
* Unbundled rates being charged by us for competitive direct access service
(for example, distribution services) will become effective as of July 1,
1999, and will be subject to annual reductions, that vary by rate class,
through 2003.
* There will be a moratorium on retail rate changes for standard offer and
unbundled competitive direct access rates until July 1, 2004, except for
the price reductions described above and certain other limited
circumstances.
* We will be permitted to defer for later recovery prudent and reasonable
costs of complying with the ACC electric competition rules, system benefits
costs in excess of the levels included in current rates, and costs
associated with our "provider of last resort" and standard offer
obligations for service after July 1, 2004. These costs are to be recovered
through an adjustment clause or clauses commencing on July 1, 2004.
* Our distribution system will be open for retail access on July 1, 1999.
Customers will be eligible for retail access in accordance with the
phase-in program expected to be ultimately adopted by the ACC under the
electric competition rules when such rules become effective, with an
additional 140 MW being made available to eligible non-residential
customers. Unless subject to judicial or regulatory restraint, we will open
our distribution system to retail access for all customers on January 1,
2001.
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* We are currently recovering substantially all of our regulatory assets
through July 1, 2004, pursuant to the 1996 regulatory agreement. See Note 6
in the March 10-Q. In addition, the Settlement Agreement states that we
have demonstrated that our allowable stranded costs, after mitigation and
exclusive of regulatory assets, are at least $533 million net present
value. We will not be allowed to recover $183 million net present value of
the above amounts. The Settlement Agreement provides that we will have the
opportunity to recover $350 million net present value through a competitive
transition charge ("CTC") that will remain in effect through December 31,
2004, at which time it will terminate. Any over/under-recovery will be
credited/debited against the costs subject to recovery under the adjustment
clause described above.
* We will form a separate corporate affiliate or affiliates and transfer
thereto our generating assets and competitive services by December 31,
2002.
* Upon final approval of the Settlement Agreement by the ACC in an order no
longer subject to judicial review, we will move to dismiss all of our
litigation currently pending against the ACC.
Upon final ACC order, we will discontinue the application of Statement of
Financial Accounting Standards No. 71, "Accounting for the Effects of Certain
Types of Regulation," for our generation operations. This means that regulatory
assets, unless reestablished as recoverable through ongoing regulated cash
flows, are to be eliminated and the generation assets must be tested for
impairment. The regulatory disallowance, which removes $234 million pre-tax
($183 million net present value) from ongoing regulatory cash flows, will be
recorded as a net reduction of regulatory assets. This reduction will be
reported as an extraordinary charge on the income statement. The regulatory
assets to be recovered under this Settlement Agreement would be amortized as
follows:
(Millions)
1/1 - 6/30
1999 2000 2001 2002 2003 2004 Total
---- ---- ---- ---- ---- ---- -----
$164 $158 $145 $115 $86 $18 $686
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Exhibit No. Description
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10.1 Settlement Agreement
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
Dated: May 19, 1999 By: Michael V. Palmeri
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Michael V. Palmeri
Treasurer
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SETTLEMENT AGREEMENT
May 14, 1999
This settlement agreement ("Agreement") is entered into as of May 14,
1999, by Arizona Public Service Company ("APS" or the "Company") and the various
signatories to this Agreement (collectively, the "Parties") for the purpose of
establishing terms and conditions for the introduction of competition in
generation and other competitive services that are just, reasonable and in the
public interest.
INTRODUCTION
In Decision No. 59943, dated December 26, 1996, the Arizona Corporation
Commission ("ACC" or the "Commission") established a "framework" for
introduction of competitive electric services throughout the territories of
public service corporations in Arizona in the rules adopted in A.A.C. R14-2-1601
ET SEQ. (collectively, "Electric Competition Rules" as they may be amended from
time to time). The Electric Competition Rules established by that order
contemplated future changes to such rules and the possibility of waivers or
amendments for particular companies under appropriate circumstances. Since their
initial issuance, the Electric Competition Rules have been amended several times
and are currently stayed pursuant to Decision No. 61311, dated January 5, 1999.
During this time, APS, Commission Staff and other interested parties have
participated in a number of proceedings, workshops, public comment sessions and
individual negotiations in order to further refine and develop a restructured
utility industry in Arizona that will provide meaningful customer choice in a
manner that is just, reasonable and in the public interest.
This Agreement establishes the agreed upon transition for APS to a
restructured entity and will provide customers with competitive choices for
generation and certain other retail services. The Parties believe this Agreement
will produce benefits for all customers through implementing customer choice and
providing rate reductions so that the APS service territory may benefit from
economic growth. The Parties also believe this Agreement will fairly treat APS
and its shareholders by providing a reasonable opportunity to recover prudently
incurred investments and costs, including stranded costs and regulatory assets.
Specifically, the Parties believe the Agreement is in the public interest
for the following reasons. FIRST, customers will receive substantial rate
reductions. SECOND, competition will be promoted through the introduction of
retail access faster than would have been possible without this Agreement and by
the functional separation of APS' power production and delivery functions.
THIRD, economic development and the environment will
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benefit through guaranteed rate reductions and the continuation of renewable and
energy efficiency programs. FOURTH, universal service coverage will be
maintained through APS' low income assistance programs and establishment of
"provider of last resort" obligations on APS for customers who do not wish to
participate in retail access. FIFTH, APS will be able to recover its regulatory
assets and stranded costs as provided for in this Agreement without the
necessity of a general rate proceeding. Sixth, substantial litigation and
associated costs will be avoided by amicably resolving a number of important and
contentious issues that have already been raised in the courts and before the
Commission. Absent approval by the Commission of the settlement reflected by
this Agreement, APS would seek full stranded cost recovery and pursue other rate
and competitive restructuring provisions different than provided for herein. The
other Parties would challenge at least portions of APS' requested relief,
including the recovery of all stranded costs. The resulting regulatory hearings
and related court appeals would delay the start of competition and drain the
resources of all Parties.
NOW, THEREFORE, APS and the Parties agree to the following provisions
which they believe to be just, reasonable and in the public interest:
TERMS OF AGREEMENT
ARTICLE I
IMPLEMENTATION OF RETAIL ACCESS
1.1 The APS distribution system shall be open for retail access on July 1,
1999; provided, however, that such retail access to electric generation and
other competitive electric services suppliers will be phased in for customers in
APS' service territory in accordance with the proposed Electric Competition
Rules, as and when such rules become effective, with an additional 140 MW being
made available to eligible non-residential customers. The Parties shall urge the
Commission to approve Electric Competition Rules, at least on an emergency
basis, so that meaningful retail access can begin by July 1, 1999. Unless
subject to judicial or regulatory restraint, APS shall open its distribution
system to retail access for all customers on January 1, 2001.
1.2 APS will make retail access available to residential customers
pursuant to its December 21, 1998, filing with the Commission.
1.3 The Parties acknowledge that APS' ability to offer retail access is
contingent upon numerous conditions and circumstances, a number of which are not
within the direct control of the Parties. Accordingly, the Parties agree that it
may become necessary to modify the terms of retail access to account for such
factors, and they further agree to address such matters in good faith and to
cooperate in an effort to propose joint resolutions of any such matters.
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1.4. APS agrees to the amendment and modification of its Certificate(s) of
Convenience and Necessity to permit retail access consistent with the terms of
this Agreement. The Commission order adopting this Agreement shall constitute
the necessary Commission Order amending and modifying APS' CC&Ns to permit
retail access consistent with the terms of this Agreement.
ARTICLE II
RATE MATTERS
2.1. The Company's unbundled rates and charges attached hereto as Exhibit
A will be effective as of July 1, 1999. The Company's presently authorized rates
and charges shall be deemed its standard offer ("Standard Offer") rates for
purposes of this Agreement and the Electric Competition Rules. Bills for
Standard Offer service shall indicate individual unbundled service components to
the extent required by the Electric Competition Rules.
2.2. Future reductions of standard offer tariff rates of 1.5% for
customers having loads of less than 3 MW shall be effective as of July 1, 1999,
July 1, 2000, July 1, 2001, July 1, 2002, and July 1, 2003, upon the filing and
Commission acceptance of revised tariff sheets reflecting such decreases. For
customers having loads greater than 3 MW served on Rate Schedules E-34 and E-35,
Standard Offer tariff rates will be reduced: 1.5%, effective July 1, 1999; 1.5%
effective July 1, 2000; 1.25% effective July 1, 2001; and .75% effective July 1,
2002. The 1.5% Standard Offer rate reduction to be effective July 1, 1999,
includes the rate reduction otherwise required by Decision No. 59601. Such
decreases shall become effective by the filing with and acceptance by the
Commission of revised tariff sheets reflecting each decrease.
2.3. Customers greater than 3 MW who choose a direct access supplier must
give APS one year's advance notice before being eligible to return to Standard
Offer service.
2.4. Unbundled rates shall be reduced in the amounts and at the dates set
forth in Exhibit A attached hereto upon the filing and Commission acceptance of
revised tariff sheets reflecting such decreases.
2.5. This Agreement shall not preclude APS from requesting, or the
Commission from approving, changes to specific rate schedules or terms and
conditions of service, or the approval of new rates or terms and conditions of
service, that do not significantly affect the overall earnings of the Company or
materially modify the tariffs or increase the rates approved in this Agreement.
Nothing contained in this Agreement shall preclude APS from filing changes to
its tariffs or terms and conditions of service which are not inconsistent with
its obligations under this Agreement.
2.6. Notwithstanding the rate reduction provisions stated above, the
Commission shall, prior to December 31, 2002, approve an adjustment clause or
clauses which
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will provide full and timely recovery beginning July 1, 2004, of the reasonable
and prudent costs of the following:
(1) APS' "provider of last resort" and Standard Offer obligations for
service after July 1, 2004, which costs shall be recovered only from
Standard Offer and "provider of last resort" customers;
(2) Standard Offer service to customers who have left Standard Offer
service or a special contract rate for a competitive generation
supplier but who desire to return to Standard Offer service, which
costs shall be recovered only from Standard Offer and "provider of
last resort" customers;
(3) compliance with the Electric Competition Rules or Commission-ordered
programs or directives related to the implementation of the Electric
Competition Rules, as they may be amended from time to time, which
costs shall be recovered from all customers receiving services from
APS; and
(4) Commission-approved system benefit programs or levels not included in
Standard Offer rates as of June 30, 1999, which costs shall be
recovered from all customers receiving services from APS.
By June 1, 2002, APS shall file an application for an adjustment clause or
clauses, together with a proposed plan of administration, and supporting
testimony. The Commission shall thereafter issue a procedural order setting such
adjustment clause application for hearing and including reasonable provisions
for participation by other parties. The Commission order approving the
adjustment clauses shall also establish reasonable procedures pursuant to which
the Commission, Commission Staff and interested parties may review the costs to
be recovered. By June 30, 2003, APS will file its request for the specific
adjustment clause factors which shall, after hearing and Commission approval,
become effective July 1, 2004. APS shall be allowed to defer costs covered by
this Section 2.6 when incurred for later full recovery pursuant to such
adjustment clause or clauses, including a reasonable return.
2.7. By June 30, 2003, APS shall file a general rate case with prefiled
testimony and supporting schedules and exhibits; provided, however, that any
rate changes resulting therefrom shall not become effective prior to July 1,
2004.
2.8. APS shall not be prevented from seeking a change in unbundled or
Standard Offer rates prior to July 1, 2004, in the event of (a) conditions or
circumstances which constitute an emergency, such as the inability to finance on
reasonable terms, or (b) material changes in APS' cost of service for Commission
regulated services resulting from federal, tribal,
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state or local laws, regulatory requirements, judicial decision, actions or
orders. Except for the changes otherwise specifically contemplated by this
Agreement, unbundled and Standard Offer rates shall remain unchanged until at
least July 1, 2004.
ARTICLE III
REGULATORY ASSETS AND STRANDED COSTS
3.1. APS currently recovers regulatory assets through July 1, 2004,
pursuant to Commission Decision No. 59601 in accordance with the provisions of
this Agreement.
3.2. APS has demonstrated that its allowable stranded costs after
mitigation (which result from the impact of retail access), exclusive of
regulatory assets, are at least $533 million net present value.
3.3. The Parties agree that APS should not be allowed to recover $183
million net present value of the amounts included above. APS shall have a
reasonable opportunity to recover $350 million net present value through a
competitive transition charge ("CTC") set forth in Exhibit A attached hereto.
Such CTC shall remain in effect until December 31, 2004, at which time it will
terminate. If by that date APS has recovered more or less than $350 million net
present value, as calculated in accordance with Exhibit B attached hereto, then
the nominal dollars associated with any excess recovery/under recovery shall be
credited/debited against the costs subject to recovery under the adjustment
clause set forth in Section 2.6(3).
3.4. The regulatory assets to be recovered under this Agreement, after
giving effect to the adjustments set forth in Section 3.3, shall be amortized in
accordance with Schedule C of Exhibit A attached hereto.
3.5. Neither the Parties nor the Commission shall take any action that
would diminish the recovery of APS' stranded costs or regulatory assets provided
for herein. The Company's willingness to enter into this Agreement is based upon
the Commission's irrevocable promise to permit recovery of the Company's
regulatory assets and stranded costs as provided herein. Such promise by the
Commission shall survive the expiration of the Agreement and shall be
specifically enforceable against this and any future Commission.
ARTICLE IV
CORPORATE STRUCTURE
4.1. The Commission will approve the formation of an
affiliate or affiliates of APS to acquire at book value the competitive services
assets as currently required by the Electric Competition Rules. In order to
facilitate the separation of such assets efficiently and at the lowest possible
cost, the Commission shall grant APS a two-year extension of time until
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December 31, 2002, to accomplish such separation. A similar two-year extension
shall be authorized for compliance with A.A.C. R14-2-1606(B).
4.2. Approval of this Agreement by the Commission shall be deemed to
constitute all requisite Commission approvals for (1) the creation by APS or its
parent of new corporate affiliates to provide competitive services including,
but not limited to, generation sales and power marketing, and the transfer
thereto of APS' generation assets and competitive services, and (2) the full and
timely recovery through the adjustment clause referred to in Section 2.6 above
for all of the reasonable and prudent costs so incurred in separating
competitive generation assets and competitive services as required by proposed
A.A.C. R14-2-1615, exclusive of the costs of transferring the APS power
marketing function to an affiliate. The assets and services to be transferred
shall include the items set forth on Exhibit C attached hereto. Such transfers
may require various regulatory and third party approvals, consents or waivers
from entities not subject to APS' control, including the FERC and the NRC. No
Party to this Agreement (including the Commission) will oppose, or support
opposition to, APS requests to obtain such approvals, consents or waivers.
4.3. Pursuant to A.R.S. ss. 40-202(L), the Commission's
approval of this Agreement shall exempt any competitive service provided by APS
or its affiliates from the application of various provisions of A.R.S. Title 40,
including A.R.S. ss.ss. 40-203, 40-204(A), 40-204(B), 40-248, 40-250, 40-251,
40-285, 40-301, 40-302, 40-303, 40-321, 40-322, 40-331, 40-332, 40-334, 40-365,
40-366, 40-367 and 40-401.
4.4. APS' subsidiaries and affiliates (including APS' parent) may take
advantage of competitive business opportunities in both energy and non-energy
related businesses by establishing such unregulated affiliates as they deem
appropriate, which will be free to operate in such places as they may determine.
The APS affiliate or affiliates acquiring APS' generating assets may be a
participant in the energy supply market within and outside of Arizona. Approval
of this Agreement by the Commission shall be deemed to include the following
specific determinations required under Sections 32(c) and (k)(2) of the Public
Utility Holding Company Act of 1935:
APS or an affiliate is authorized to establish a subsidiary company,
which will seek exempt wholesale generator ("EWG") status from the
Federal Energy Regulatory Commission, for the purposes of acquiring and
owning Generation Assets.
The Commission has determined that allowing the Generation Assets to
become "eligible facilities," within the meaning of Section 32 of the
Public Utility Holding Company Act ("PUHCA"), and owned by an APS EWG
affiliate (1) will benefit consumers, (2) is in the public interest,
and (3) does not violate Arizona law.
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The Commission has sufficient regulatory authority, resources and
access to the books and records of APS and any relevant associate,
affiliate, or subsidiary company to exercise its duties under Section
32(k) of PUHCA.
APS will purchase any electric energy from its EWG affiliate at market
based rates. This Commission has determined that (1) the proposed
transaction will benefit consumers and does not violate Arizona law;
(2) the proposed transaction will not provide APS' EWG affiliate an
unfair competitive advantage by virtue of its affiliation with APS; (3)
the proposed transaction is in the public interest.
The APS affiliate or affiliates acquiring APS' generating assets will be subject
to regulation by the Commission, to the extent otherwise permitted by law, to no
greater manner or extent than that manner and extent of Commission regulation
imposed upon other owners or operators of generating facilities.
4.5. The Commission's approval of this Agreement will constitute certain
waivers to APS and its affiliates (including its parent) of the Commission's
existing affiliate interest rules (A.A.C. R14-2-801, ET SEQ.), and the
rescission of all or portions of certain prior Commission decisions, all as set
forth on Exhibit D attached hereto.
4.6. The Parties reserve their rights under Sections 205 and 206 of the
Federal Power Act with respect to the rates of any APS affiliate formed under
the provisions of this Article IV.
ARTICLE V
WITHDRAWAL OF LITIGATION
5.1. Upon receipt of a final order of the Commission approving this
Agreement that is no longer subject to judicial review, APS and the Parties
shall withdraw with prejudice all of their various court appeals of the
Commission's competition orders.
ARTICLE VI
APPROVAL BY THE COMMISSION
6.1. This Agreement shall not become effective until the issuance of a
final Commission order approving this Agreement without modification on or
before August 1, 1999. In the event that the Commission fails to approve this
Agreement without modification according to its terms on or before August 1,
1999, any Party to this Agreement may withdraw from this Agreement and shall
thereafter not be bound by its provisions; provided, however, that if APS
withdraws from this Agreement, the Agreement shall be null and void and of no
further force and effect. In any event, the rate reduction provisions of this
Agreement shall not take effect until this Agreement is approved. Parties so
withdrawing shall be free to pursue
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their respective positions without prejudice. Approval of this Agreement by the
Commission shall make the Commission a Party to this Agreement and fully bound
by its provisions.
6.2. The Parties agree that they shall make all reasonable and good faith
efforts necessary to (1) obtain final approval of this Agreement by the
Commission, and (2) ensure full implementation and enforcement of all the terms
and conditions set forth in this Agreement. Neither the Parties nor the
Commission shall take or propose any action which would be inconsistent with the
provisions of this Agreement. All Parties shall actively defend this Agreement
in the event of any challenge to its validity or implementation.
ARTICLE VII
MISCELLANEOUS MATTERS
7.1. To the extent any provision of this Agreement is inconsistent with
any existing or future Commission order, rule or regulation or is inconsistent
with the Electric Competition Rules as now existing or as may be amended in the
future, the provisions of this Agreement shall control and the approval of this
Agreement by the Commission shall be deemed to constitute a Commission-approved
variation or exemption to any conflicting provision of the Electric Competition
Rules.
7.2. The provisions of this Agreement shall be implemented and enforceable
notwithstanding the pendency of a legal challenge to the Commission's approval
of this Agreement, unless such implementation and enforcement is stayed or
enjoined by a court having jurisdiction over the matter. If any portion of the
Commission order approving this Agreement or any provision of this Agreement is
declared by a court to be invalid or unlawful in any respect, then (1) APS shall
have no further obligations or liability under this Agreement, including, but
not limited to, any obligation to implement any future rate reductions under
Article II not then in effect, and (2) the modifications to APS' certificates of
convenience and necessity referred to in Section 1.4 shall be automatically
revoked, in which event APS shall use its best efforts to continue to provide
noncompetitive services (as defined in the proposed Electric Competition Rules)
at then current rates with respect to customer contracts then in effect for
competitive generation (for the remainder of their term) to the extent not
prohibited by law and subject to applicable regulatory requirements.
7.3. The terms and provisions of this Agreement apply solely to and are
binding only in the context of the purposes and results of this Agreement and
none of the positions taken herein by any Party may be referred to, cited or
relied upon by any other Party in any fashion as precedent or otherwise in any
other proceeding before this Commission or any other regulatory agency or before
any court of law for any purpose except in furtherance of the purposes and
results of this Agreement.
7.4. This Agreement represents an attempt to compromise and settle
disputed claims regarding the prospective just and reasonable rate levels, and
the terms and conditions
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of competitive retail access, for APS in a manner consistent with the public
interest and applicable legal requirements. Nothing contained in this Agreement
is an admission by APS that its current rate levels or rate design are unjust or
unreasonable.
7.5. As part of this Agreement, APS commits that it will continue the
APS Community Action Partnership (which includes weatherization, facility repair
and replacement, bill assistance, health and safety programs and energy
education) in an annual amount of at least $500,000 through July 1, 2004.
Additionally, the Company will, subject to Commission approval, continue low
income rates E-3 and E-4 under their current terms and conditions.
7.6. APS shall actively support the Arizona Independent Scheduling
Administrator ("AISA") and the formation of the Desert Star Independent System
Operator. APS agrees to modify its OATT to be consistent with any FERC approved
AISA protocols. The Parties reserve their rights with respect to any AISA
protocols, including the right to challenge or seek modifications to, or waivers
from, such protocols. APS shall file changes to its existing OATT consistent
with this section within ten (10) days of Commission approval of this Agreement
pursuant to Section 6.1.
7.7. Within thirty (30) days of Commission approval of this Agreement
pursuant to Section 6.1, APS shall serve on the Parties an Interim Code of
Conduct to address inter-affiliate relationships involving APS as a utility
distribution company. APS shall voluntarily comply with this Interim Code of
Conduct until the Commission approves a code of conduct for APS in accordance
with the Electric Competition Rules that is concurrently effective with codes of
conduct for all other Affected Utilities (as defined in the Electric Competition
Rules). APS shall meet and confer with the Parties prior to serving its Interim
Code of Conduct.
7.8. In the event of any disagreement over the interpretation of this
Agreement or the implementation of any of the provisions of this Agreement, the
Parties shall promptly convene a conference and in good faith shall attempt to
resolve such disagreement.
7.9. The obligations under this Agreement that apply for a specific term
set forth herein shall expire automatically in accordance with the term
specified and shall require no further action for their expiration.
7.10. The Parties agree and recommend that the Commission schedule
public meetings and hearings for consideration of this Agreement. The filing of
this Agreement with the Commission shall be deemed to be the filing of a formal
request for the expeditious issuance of a procedural schedule that establishes
such formal hearings and public meetings as may be necessary for the Commission
to approve this Agreement in accordance with
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Section 6.1 and that afford interested parties adequate opportunity to comment
and be heard on the terms of this Agreement consistent with applicable legal
requirements.
DATED at Phoenix, Arizona, as of this 14th day of May, 1999.
RESIDENTIAL UTILITY ARIZONA PUBLIC SERVICE COMPANY
CONSUMER OFFICE
By Greg Patterson By Jack E. Davis
------------------------------- -------------------------------
Title Director Title President, Energy
---------------------------- -------------------------------
Delivery & Sales
-------------------------------
ARIZONA COMMUNITY ACTION (Party)
ASSOCIATION ------------------------------------
By Janet Regner By
------------------------------- -------------------------------
Title Executive Director Title
---------------------------- ------------------------------
ARIZONANS FOR ELECTRIC CHOICE AND (Party)
COMPETITION,* a coalition of companies ------------------------------------
and associations in support of
competition that includes Cable Systems
International, BHP Copper, Motorola, By
Chemical Lime, Intel, Honeywell, -------------------------------
Allied Signal, Cyprus Climax Metals,
Asarco, Phelps Dodge, Homebuilders Title
of Central Arizona, Arizona Mining ------------------------------
Industry Gets Our Support, Arizona
Food Marketing Alliance, Arizona
Association of Industries, Arizona
Multi-housing Association, Arizona Rock
Products Association, Arizona Restaurant (Party)
Association, and Arizona Retailers ----------------------------------
Association.
By Peter A. Woog By
------------------------------- -------------------------------
Title Chairman Title
---------------------------- ----------------------------
* Enron is not a signatory to this Agreement.
* Also included: Boeing, AZ School Board Association, National Federation of
Independent Business (NFIB), AZ Hospital Association, Lockheed Martin, Abbot
Labs, Raytheon
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(Party) (Party)
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By By
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Title Title
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(Party) (Party)
- --------------------------------- ---------------------------------
By By
------------------------------- -------------------------------
Title Title
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(Party) (Party)
- --------------------------------- ---------------------------------
By By
------------------------------- -------------------------------
Title Title
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(Party) (Party)
- --------------------------------- ---------------------------------
By By
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Title Title
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EXHIBIT A
5/10/99
DA-R1
ELECTRIC DELIVERY RATES
ARIZONA PUBLIC SERVICE COMPANY A.C.C. No. XXXX
Phoenix, Arizona Tariff or Schedule No. DA-R1
Filed by: Alan Propper Original Tariff
Title: Director, Pricing and Regulation Effective: XXX XX, 1999
DIRECT ACCESS
RESIDENTIAL SERVICE
AVAILABILITY
This rate schedule is available in all certificated retail delivery
service territory served by Company and where facilities of adequate capacity
and the required phase and suitable voltage are adjacent to the premises served.
APPLICATION
This rate schedule is applicable to customers receiving electric energy
on a direct access basis from any certificated Electric Service Provider (ESP)
as defined in A.A.C. R14-2-1603. This rate schedule is applicable only to
electric delivery required for residential purposes in individual private
dwellings and in individually metered apartments when such service is supplied
at one point of delivery and measured through one meter. For those dwellings and
apartments where electric service has historically been measured through two
meters, when one of the meters was installed pursuant to a water heating or
space heating rate schedule no longer in effect, the electric service measured
by such meters shall be combined for billing purposes.
This rate schedule shall become effective as defined in Company's Terms
and Conditions for Direct Access (Schedule #10.)
TYPE OF SERVICE
Service shall be single phase, 60 Hertz, at one standard voltage
(120/240 or 120/208 as may be selected by customer subject to availability at
the customer's premise). Three phase service is furnished under the Company's
Conditions Governing Extensions of Electric Distribution Lines and Services
(Schedule #3). Transformation equipment is included in cost of extension. Three
phase service is required for motors of an individual rated capacity of 7 1/2 HP
or more.
METERING REQUIREMENTS
All customers shall comply with the terms and conditions for load
profiling or hourly metering specified in Schedule #10.
MONTHLY BILL
The monthly bill shall be the greater of the amount computed under A.
or B. below, including the applicable Adjustments.
A. RATE
May - October Billing Cycles (Summer):
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $10.00
All kWh $0.04158 $0.00115 $0.00930
November - April Billing Cycles (Winter):
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $10.00
All kWh $0.03518 $0.00115 $0.00930
B. MINIMUM $ 10.00 per month
(CONTINUED ON REVERSE SIDE)
<PAGE>
DA-R1
A.C.C. No. XXXX
Page 2 of 2
ADJUSTMENTS
1. When Metering, Meter Reading or Consolidated Billing are provided by
the Customer's ESP, the monthly bill will be credited as follows:
Meter $1.30 per month
Meter Reading $0.30 per month
Billing $0.30 per month
2. The monthly bill is also subject to the applicable proportionate
part of any taxes, or governmental impositions which are or may in
the future be assessed on the basis of gross revenues of the Company
and/or the price or revenue from the electric service sold and/or
the volume of energy delivered or purchased for sale and/or sold
hereunder.
SERVICES ACQUIRED FROM CERTIFICATED ELECTRIC SERVICE PROVIDERS
Customers served under this rate schedule are responsible for acquiring
their own generation and any other required competitively supplied services from
an ESP. The Company will provide and bill its transmission and ancillary
services on rates approved by the Federal Energy Regulatory Commission to the
Scheduling Coordinator who provides transmission service to the Customer's ESP.
The Customer's ESP must submit a Direct Access Service Request pursuant to the
terms and conditions in Schedule #10.
ON-SITE GENERATION TERMS AND CONDITIONS
Customers served under this rate schedule who have on-site generation
connected to the Company's electrical delivery grid shall enter into an
Agreement for Interconnection with the Company which shall establish all
pertinent details related to interconnection and other required service
standards. The Customer does not have the option to sell power and energy to the
Company under this tariff.
TERMS AND CONDITIONS
This rate schedule is subject to the Company's Terms and Conditions for
Standard Offer and Direct Access Services (Schedule #1) and Schedule #10. These
schedules have provisions that may affect customer's monthly bill.
<PAGE>
EXHIBIT A
5/10/99
DA-GS1
ELECTRIC DELIVERY RATES
ARIZONA PUBLIC SERVICE COMPANY A.C.C. No. XXXX
Phoenix, Arizona Tariff or Schedule No. DA-GS1
Filed by: Alan Propper Original Tariff
Title: Director, Pricing and Regulation Effective: XXX XX, 1999
DIRECT ACCESS
GENERAL SERVICE
AVAILABILITY
This rate schedule is available in all certificated retail delivery
service territory served by Company at all points where facilities of adequate
capacity and the required phase and suitable voltage are adjacent to the
premises served.
APPLICATION
This rate schedule is applicable to customers receiving electric energy
on a direct access basis from any certificated Electric Service Provider (ESP)
as defined in A.A.C. R14-2-1603. This rate schedule is applicable to all
electric service required when such service is supplied at one point of delivery
and measured through one meter. For those customers whose electricity is
delivered through more than one meter, service for each meter shall be computed
separately under this rate unless conditions in accordance with the Company's
Schedule #4 (Totalized Metering of Multiple Service Entrance Sections At a
Single Premise for Standard Offer and Direct Access Service) are met. For those
service locations where electric service has historically been measured through
two meters, when one of the meters was installed pursuant to a water heating
rate schedule no longer in effect, the electric service measured by such meters
shall be combined for billing purposes.
This rate schedule shall become effective as defined in Company's Terms
and Conditions for Direct Access (Schedule #10).
This rate schedule is not applicable to residential service, resale
service or direct access service which qualifies for Rate Schedule DA-GS10.
TYPE OF SERVICE
Service shall be single or three phase, 60 Hertz, at one standard
voltage as may be selected by customer subject to availability at the customer's
premise. Three phase service is furnished under the Company's Conditions
Governing Extensions of Electric Distribution Lines and Services (Schedule #3).
Transformation equipment is included in cost of extension. Three phase service
is not furnished for motors of an individual rated capacity of less than 7 1/2
HP, except for existing facilities or where total aggregate HP of all connected
three phase motors exceed 12 HP. Three phase service is required for motors of
an individual rated capacity of more than 7 1/2 HP.
METERING REQUIREMENTS
All customers shall comply with the terms and conditions for load
profiling or hourly metering specified in the Company's Schedule #10.
MONTHLY BILL
The monthly bill shall be the greater of the amount computed under A.
or B. below, including the applicable Adjustments.
A. RATE
June - October Billing Cycles (Summer):
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $12.50
Per kW over 5 $0.721
Per kWh for the
first 2,500 kWh $0.04255
Per kWh for the
next 100 kWh per
kW over 5 $0.04255
Per kWh for the
next 42,000 kWh $0.02901
Per kWh for all
additional kWh $0.01811
Per all kWh $0.00115
Per all kW $2.43
(CONTINUED ON REVERSE SIDE)
<PAGE>
DA-GS1
A.C.C. No. XXXX
Page 2 of 3
A. RATE (continued)
November - May Billing Cycles (Winter):
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $12.50
Per kW over 5 $0.652
Per kWh for the
first 2,500 kWh $0.03827
Per kWh for the
next 100 kWh per
kW over 5 $0.03827
Per kWh for the
next 42,000 kWh $0.02600
Per kWh for all
additional kWh $0.01614
Per all kWh $0.00115
Per all kW $2.43
PRIMARY AND TRANSMISSION LEVEL SERVICE:
1. For customers served at primary voltage (12.5kV to below 69kV),
the Distribution charge will be discounted by 11.6%.
2. For customers served at transmission voltage (69kV or higher),
the Distribution charge will be discounted 52.6%.
3. Pursuant to A.A.C. R14-2-1612.K.11, the Company shall retain
ownership of Current Transformers (CT's) and Potential
Transformers (PT's) for those customers taking service at voltage
levels of more than 25kV. For customers whose metering services
are provided by an ESP, a monthly facilities charge will be
billed, in addition to all other applicable charges shown above,
as determined in the service contract based upon the Company's
cost of CT and PT ownership, maintenance and operation.
DETERMINATION OF KW
The kW used for billing purposes shall be the average kW supplied
during the 15-minute period of maximum use during the month, as
determined from readings of the delivery meter.
B. MINIMUM
$12.50 plus $1.74 for each kW in excess of five of either the highest
kW established during the 12 months ending with the current month or
the minimum kW specified in the agreement for service, whichever is
the greater.
ADJUSTMENTS
1. When Metering, Meter Reading or Consolidated Billing are provided by
the Customer's ESP, the monthly bill will be credited as follows:
Meter $4.00 per month
Meter Reading $0.30 per month
Billing $0.30 per month
2. The monthly bill is also subject to the applicable proportionate part
of any taxes, or governmental impositions which are or may in the
future be assessed on the basis of gross revenues of the Company
and/or the price or revenue from the electric service sold and/or the
volume of energy delivered or purchased for sale and/or sold
hereunder.
SERVICES ACQUIRED FROM CERTIFICATED ELECTRIC SERVICE PROVIDERS
Customers served under this rate schedule are responsible for acquiring
their own generation and any other required competitively supplied services from
an ESP or under the Company's Open Access Transmission Tariff. The Company will
provide and bill its transmission and ancillary services on rates approved by
the Federal Energy Regulatory Commission to the Scheduling Coordinator who
provides transmission service to the Customer's ESP. The Customer's ESP must
submit a Direct Access Service Request pursuant to the terms and conditions in
Schedule #10.
(CONTINUED ON PAGE 3)
<PAGE>
DA-GS1
A.C.C. No. XXXX
Page 3 of 3
ON-SITE GENERATION TERMS AND CONDITIONS
Customers served under this rate schedule who have on-site generation
connected to the Company's electrical delivery grid shall enter into an
Agreement for Interconnection with the Company which shall establish all
pertinent details related to interconnection and other required service
standards. The Customer does not have the option to sell power and energy to the
Company under this tariff.
CONTRACT PERIOD
0 - 1,999 kW: As provided in Company's standard agreement for service.
2,000 kW and above: Three (3) years, or longer, at Company's option for
initial period when construction is required. One
(1) year, or longer, at Company's option when
construction is not required.
TERMS AND CONDITIONS
This rate schedule is subject to Company's Terms and Conditions for
Standard Offer and Direct Access Service (Schedule #1) and the Company's
Schedule #10. These Schedules have provisions that may affect customer's monthly
bill.
<PAGE>
EXHIBIT A
5/10/99
DA-GS10
ELECTRIC DELIVERY RATES
ARIZONA PUBLIC SERVICE COMPANY A.C.C. No. XXXX
Phoenix, Arizona Tariff or Schedule No. DA-GS10
Filed by: Alan Propper Original Tariff
Title: Director, Pricing and Regulation Effective: XXX XX, 1999
DIRECT ACCESS
EXTRA LARGE GENERAL SERVICE
AVAILABILITY
This rate schedule is available in all certificated retail delivery
service territory served by Company at all points where facilities of adequate
capacity and the required phase and suitable voltage are adjacent to the
premises served.
APPLICATION
This rate schedule is applicable to customers receiving electric energy
on a direct access basis from any certificated Electric Service Provider (ESP)
as defined in A.A.C. R14-2-1603. This rate schedule is applicable only to
customers whose monthly maximum demand is 3,000 kW or more for three (3)
consecutive months in any continuous twelve (12) month period ending with the
current month. Service must be supplied at one point of delivery and measured
through one meter unless otherwise specified by individual customer contract.
For those customers whose electricity is delivered through more than one meter,
service for each meter shall be computed separately under this rate unless
conditions in accordance with the Company's Schedule #4 (Totalized Metering of
Multiple Service Entrance Sections At a Single Premise for Standard Offer and
Direct Access Service) are met.
This rate schedule is not applicable to resale service.
This rate schedule shall become effective as defined in Company's Terms
and Conditions for Direct Access (Schedule #10).
TYPE OF SERVICE
Service shall be three phase, 60 Hertz, at Company's standard voltages
that are available within the vicinity of customer's premise.
METERING REQUIREMENTS
All customers shall comply with the terms and conditions for hourly
metering specified in Schedule #10.
MONTHLY BILL
The monthly bill shall be the greater of the amount computed under A.
or B. below, including the applicable Adjustments.
A. RATE
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $2,430.00
per kW $3.53 $2.82
per kWh $0.00999 $0.00115
PRIMARY AND TRANSMISSION LEVEL SERVICE:
1. For customers served at primary voltage (12.5kV to below
69kV), the Distribution charge will be discounted by 4.8%.
2. For customers served at transmission voltage (69kV or higher),
the Distribution charge will be discounted 36.7%.
3. Pursuant to A.A.C. R14-2-1612.K.11, the Company shall retain
ownership of Current Transformers (CT's) and Potential
Transformers (PT's) for those customers taking service at
voltage levels of more than 25 kV. For customers whose
metering services are provided by an ESP, a monthly facilities
charge will be billed, in addition to all other applicable
charges shown above, as determined in the service contract
based upon the Company's cost of CT and PT ownership,
maintenance and operation.
DETERMINATION OF KW
The kW used for billing purposes shall be the greater of:
1. The kW used for billing purposes shall be the average kW
supplied during the 15minute period (or other period as
specified by individual customer's contract) of maximum use
during the month, as determined from readings of the delivery
meter.
2. The minimum kW specified in the agreement for service or
individual customer contract.
(CONTINUED ON REVERSE SIDE)
<PAGE>
DA-GS10
A.C.C. No. XXXX
Page 2 of 2
B. MINIMUM
$2,430.00 per month plus $1.74 per kW per month.
ADJUSTMENTS
1. When Metering, Meter Reading or Consolidated Billing are
provided by the Customer's ESP, the monthly bill will be
credited as follows:
Meter $ 55.00 per month
Meter Reading $ 0.30 per month
Billing $ 0.30 per month
2. The monthly bill is also subject to the applicable
proportionate part of any taxes, or governmental impositions
which are or may in the future be assessed on the basis of
gross revenues of the Company and/or the price or revenue from
the electric service sold and/or the volume of energy
delivered or purchased for sale and/or sold hereunder.
SERVICES ACQUIRED FROM CERTIFICATED ELECTRIC SERVICE PROVIDERS
Customers served under this rate schedule are responsible for acquiring
their own generation and any other required competitively supplied services from
an ESP. T he Company will provide and bill its transmission and ancillary
services on rates approved by the Federal Energy Regulatory Commission to the
Scheduling Coordinator who provides transmission service to the Customer's ESP.
The Customer's ESP must submit a Direct Access Service Request pursuant to the
terms and conditions in Schedule #10.
ON-SITE GENERATION TERMS AND CONDITIONS
Customers served under this rate schedule who have on-site generation
connected to the Company's electrical delivery grid shall enter into an
Agreement for Interconnection with the Company which shall establish all
pertinent details related to interconnection and other required service
standards. The Customer does not have the option to sell power and energy to the
Company under this tariff.
CONTRACT PERIOD
For service locations in:
a) Isolated Areas: Ten (10) years, or longer, at Company's
option, with standard seven (7) year termination period.
b) Other Areas: Three (3) years, or longer, at Company's option.
TERMS AND CONDITIONS
This rate schedule is subject to Company's Terms and Conditions for
Standard Offer and Direct Access Service (Schedule #1) and the Company's
Schedule #10. These schedules have provisions that may affect customer's monthly
bill.
<PAGE>
EXHIBIT A
5/13/99
DA-GS11
ELECTRIC DELIVERY RATES
ARIZONA PUBLIC SERVICE COMPANY A.C.C. No. XXXX
Phoenix, Arizona Tariff or Schedule No. DA-GS11
Filed by: Alan Propper Original Tariff
Title: Director, Pricing and Regulation Effective: XXX XX, 1999
DIRECT ACCESS
RALSTON PURINA
AVAILABILITY
This rate schedule is available in all certificated retail delivery
service territory served by Company at all points where facilities of adequate
capacity and the required phase and suitable voltage are adjacent to the
premises served.
APPLICATION
This rate schedule is applicable only to Ralston Purina (Site
#863970289) when it receives electric energy on a direct access basis from any
certificated Electric Service Provider (ESP) as defined in A.A.C. R14-2-1603.
Service must be supplied as specified by individual customer contract and the
Company's Schedule #4 (Totalized Metering of Multiple Service Entrance Sections
At a Single Premise for Standard Offer and Direct Access Service).
This rate schedule is not applicable to resale service.
This rate schedule shall become effective as defined in Company's Terms
and Conditions for Direct Access (Schedule #10).
TYPE OF SERVICE
Service shall be three phase, 60 Hertz, at 12.5 kV.
METERING REQUIREMENTS
Customer shall comply with the terms and conditions for hourly metering
specified in Schedule #10.
MONTHLY BILL
The monthly bill shall be the greater of the amount computed under A.
or B. below, including the applicable Adjustments.
A. RATE
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $2,430.00
per kW $2.58 $1.86
per kWh $0.00732 $0.00115
DETERMINATION OF KW
The kW used for billing purposes shall be the greater of:
1. The kW used for billing purposes shall be the average kW
supplied during the 15minute period (or other period as
specified by individual customer's contract) of maximum
use during the month, as determined from readings of the
delivery meter.
2. The minimum kW specified in the agreement for service or
individual customer contract.
B. MINIMUM
$2,430.00 per month plus $1.74 per kW per month.
ADJUSTMENTS
1. When Metering, Meter Reading or Consolidated Billing are provided by
the Customer's ESP, the monthly bill will be credited as follows:
Meter $ 55.00 per month
Meter Reading $ 0.30 per month
Billing $ 0.30 per month
2. The monthly bill is also subject to the applicable proportionate
part of any taxes, or governmental impositions which are or may in
the future be assessed on the basis of gross revenues of the Company
and/or the price or revenue from the electric service sold and/or
the volume of energy delivered or purchased for sale and/or sold
hereunder.
(CONTINUED ON REVERSE SIDE)
<PAGE>
DA-GS11
A.C.C. No. XXXX
Page 2 of 2
SERVICES ACQUIRED FROM CERTIFICATED ELECTRIC SERVICE PROVIDERS
Customer is responsible for acquiring its own generation and any other
required competitively supplied services from an ESP. T he Company will provide
and bill its transmission and ancillary services on rates approved by the
Federal Energy Regulatory Commission to the Scheduling Coordinator who provides
transmission service to the Customer's ESP. The Customer's ESP must submit a
Direct Access Service Request pursuant to the terms and conditions in Schedule
#10.
ON-SITE GENERATION TERMS AND CONDITIONS
If Customer has on-site generation connected to the Company's
electrical delivery grid, it shall enter into an Agreement for Interconnection
with the Company which shall establish all pertinent details related to
interconnection and other required service standards. The Customer does not have
the option to sell power and energy to the Company under this tariff.
TERMS AND CONDITIONS
This rate schedule is subject to Company's Terms and Conditions for
Standard Offer and Direct Access Service (Schedule #1) and the Company's
Schedule #10. These schedules have provisions that may affect customer's monthly
bill.
<PAGE>
EXHIBIT A
5/13/99
DA-GS12
ELECTRIC DELIVERY RATES
ARIZONA PUBLIC SERVICE COMPANY A.C.C. No. XXXX
Phoenix, Arizona Tariff or Schedule No. DA-GS12
Filed by: Alan Propper Original Tariff
Title: Director, Pricing and Regulation Effective: XXX XX, 1999
DIRECT ACCESS
BHP COPPER
AVAILABILITY
This rate schedule is available in all certificated retail delivery
service territory served by Company at all points where facilities of adequate
capacity and the required phase and suitable voltage are adjacent to the
premises served.
APPLICATION
This rate schedule is applicable only to BHP Copper (Site #774932285)
when it receives electric energy on a direct access basis from any certificated
Electric Service Provider (ESP) as defined in A.A.C. R14-2-1603. Service must be
supplied as specified by individual customer contract and the Company's Schedule
#4 (Totalized Metering of Multiple Service Entrance Sections At a Single Premise
for Standard Offer and Direct Access Service).
This rate schedule is not applicable to resale service.
This rate schedule shall become effective as defined in Company's Terms
and Conditions for Direct Access (Schedule #10).
TYPE OF SERVICE
Service shall be three phase, 60 Hertz, at 12.5 kV or higher.
METERING REQUIREMENTS
Customer shall comply with the terms and conditions for hourly metering
specified in Schedule #10.
MONTHLY BILL
The monthly bill shall be the greater of the amount computed under A.
or B. below, including the applicable Adjustments.
A. RATE
Basic Distribution Distribution Competitive
Delivery at Primary at Transmission System Transition
Service Voltage Voltage Benefits Charge
------- ------- ------- -------- ------
$/month $2,430.00
per kW $2.35 $1.22 $1.54
per kWh $0.00665 $0.00346 $0.00115
PRIMARY AND TRANSMISSION LEVEL SERVICE:
Pursuant to A.A.C. R14-2-1612.K.11, the Company shall retain
ownership of Current Transformers (CT's) and Potential
Transformers (PT's) for those customers taking service at
voltage levels of more than 25 kV. For customers whose
metering services are provided by an ESP, a monthly facilities
charge will be billed, in addition to all other applicable
charges shown above, as determined in the service contract
based upon the Company's cost of CT and PT ownership,
maintenance and operation.
DETERMINATION OF KW
The kW used for billing purposes shall be the greater of:
1. The kW used for billing purposes shall be the average kW
supplied during the 30minute period (or other period as
specified by individual customer's contract) of maximum use
during the month, as determined from readings of the delivery
meter.
2. The minimum kW specified in the agreement for service or
individual customer contract.
B. MINIMUM
$2,430.00 per month plus $1.74 per kW per month.
(CONTINUED ON REVERSE SIDE)
<PAGE>
DA-GS12
A.C.C. No. XXXX
Page 2 of 2
ADJUSTMENTS
1. When Metering, Meter Reading or Consolidated Billing are
provided by the Customer's ESP, the monthly bill will be
credited as follows:
Meter $ 55.00 per month
Meter Reading $ 0.30 per month
Billing $ 0.30 per month
2. The monthly bill is also subject to the applicable
proportionate part of any taxes, or governmental impositions
which are or may in the future be assessed on the basis of
gross revenues of the Company and/or the price or revenue from
the electric service sold and/or the volume of energy
delivered or purchased for sale and/or sold hereunder.
SERVICES ACQUIRED FROM CERTIFICATED ELECTRIC SERVICE PROVIDERS
Customer is responsible for acquiring its own generation and any other
required competitively supplied services from an ESP. T he Company will provide
and bill its transmission and ancillary services on rates approved by the
Federal Energy Regulatory Commission to the Scheduling Coordinator who provides
transmission service to the Customer's ESP. The Customer's ESP must submit a
Direct Access Service Request pursuant to the terms and conditions in Schedule
#10.
ON-SITE GENERATION TERMS AND CONDITIONS
If Customer has on-site generation connected to the Company's
electrical delivery grid, it shall enter into an Agreement for Interconnection
with the Company which shall establish all pertinent details related to
interconnection and other required service standards. The Customer does not have
the option to sell power and energy to the Company under this tariff.
TERMS AND CONDITIONS
This rate schedule is subject to Company's Terms and Conditions for
Standard Offer and Direct Access Service (Schedule #1) and the Company's
Schedule #10. These schedules have provisions that may affect customer's monthly
bill.
<PAGE>
EXHIBIT A
5/13/99
DA-GS13
ELECTRIC DELIVERY RATES
ARIZONA PUBLIC SERVICE COMPANY A.C.C. No. XXXX
Phoenix, Arizona Tariff or Schedule No. DA-GS13
Filed by: Alan Propper Original Tariff
Title: Director, Pricing and Regulation Effective: XXX XX, 1999
DIRECT ACCESS
CYPRUS BAGDAD
AVAILABILITY
This rate schedule is available in all certificated retail delivery
service territory served by Company at all points where facilities of adequate
capacity and the required phase and suitable voltage are adjacent to the
premises served.
APPLICATION
This rate schedule is applicable only to Cyprus Bagdad (Site
#120932284) when it receives electric energy on a direct access basis from any
certificated Electric Service Provider (ESP) as defined in A.A.C. R14-2-1603.
Service must be supplied as specified by individual customer contract and the
Company's Schedule #4 (Totalized Metering of Multiple Service Entrance Sections
At a Single Premise for Standard Offer and Direct Access Service).
This rate schedule is not applicable to resale service.
This rate schedule shall become effective as defined in Company's Terms
and Conditions for Direct Access (Schedule #10).
TYPE OF SERVICE
Service shall be three phase, 60 Hertz, at 115 kV or higher.
METERING REQUIREMENTS
Customer shall comply with the terms and conditions for hourly metering
specified in Schedule #10.
MONTHLY BILL
The monthly bill shall be the greater of the amount computed under A.
or B. below, including the applicable Adjustments.
A. RATE
Basic Competitive
Delivery System Transition
Service Distribution Benefits Charge
------- ------------ -------- ------
$/month $2,430.00
per kW $1.05 $1.34
per kWh $0.00298 $0.00115
PRIMARY AND TRANSMISSION LEVEL SERVICE:
Pursuant to A.A.C. R14-2-1612.K.11, the Company shall retain
ownership of Current Transformers (CT's) and Potential
Transformers (PT's) for those customers taking service at
voltage levels of more than 25 kV. For customers whose
metering services are provided by an ESP, a monthly facilities
charge will be billed, in addition to all other applicable
charges shown above, as determined in the service contract
based upon the Company's cost of CT and PT ownership,
maintenance and operation.
DETERMINATION OF KW
The kW used for billing purposes shall be the greater of:
1. The kW used for billing purposes shall be the average kW
supplied during the 30minute period (or other period as
specified by individual customer's contract) of maximum use
during the month, as determined from readings of the delivery
meter.
2. The minimum kW specified in the agreement for service or
individual customer contract.
B. MINIMUM
$2,430.00 per month plus $1.74 per kW per month, until June 30, 2004
when this minimum will no longer be applicable.
(CONTINUED ON REVERSE SIDE)
<PAGE>
DA-GS13
A.C.C. No. XXXX
Page 2 of 2
ADJUSTMENTS
1. When Metering, Meter Reading or Consolidated Billing are
provided by the Customer's ESP, the monthly bill will be
credited as follows:
Meter $ 55.00 per month
Meter Reading $ 0.30 per month
Billing $ 0.30 per month
2. The monthly bill is also subject to the applicable
proportionate part of any taxes, or governmental impositions
which are or may in the future be assessed on the basis of
gross revenues of the Company and/or the price or revenue from
the electric service sold and/or the volume of energy
delivered or purchased for sale and/or sold hereunder.
SERVICES ACQUIRED FROM CERTIFICATED ELECTRIC SERVICE PROVIDERS
Customer is responsible for acquiring its own generation and any other
required competitively supplied services from an ESP. T he Company will provide
and bill its transmission and ancillary services on rates approved by the
Federal Energy Regulatory Commission to the Scheduling Coordinator who provides
transmission service to the Customer's ESP. The Customer's ESP must submit a
Direct Access Service Request pursuant to the terms and conditions in Schedule
#10.
ON-SITE GENERATION TERMS AND CONDITIONS
If Customer has on-site generation connected to the Company's
electrical delivery grid, it shall enter into an Agreement for Interconnection
with the Company which shall establish all pertinent details related to
interconnection and other required service standards. The Customer does not have
the option to sell power and energy to the Company under this tariff.
TERMS AND CONDITIONS
This rate schedule is subject to Company's Terms and Conditions for
Standard Offer and Direct Access Service (Schedule #1) and the Company's
Schedule #10. These schedules have provisions that may affect customer's monthly
bill.
<PAGE>
ARIZONA PUBLIC SERVICE COMPANY Exhibit A
Competitive Transition Charges 5/13/99
By Direct Access Rate Classes Schedule A
<TABLE>
<CAPTION>
Line Competition Transition Charges Effective January 1 of
- ---- ------------------------------------------------------------
# Direct Access Rate Class 1999 2000 2001 2002 2003 2004
- ---- ------------------------ ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
1 Residential, DA-R1 (per kWh) $0.0093 $0.0084 $0.0063 $0.0056 $0.0050 $0.0036
2 Under 3 mW, DA-GS1, (per kW/mo.) $ 2.43 $ 2.20 $ 1.66 $ 1.46 $ 1.30 $ 0.94
3 3 mW and Above, DA-GS10 (per kW/mo.) $ 2.82 $ 2.55 $ 1.89 $ 1.72 $ 1.51 $ 1.09
4 BHP Copper (per kW/mo.) $ 1.54 $ 1.53 $ 1.06 $ 0.95 $ 0.83 $ 0.61
5 Cyprus Copper (per kW/mo.) $ 1.34 $ 1.46 $ 1.05 $ 0.94 $ 0.82 $ 0.61
6 Ralston Purina (per kW/mo.) $ 1.86 $ 1.98 $ 1.50 $ 1.34 $ 1.18 $ 0.87
7 Average Retail (per kWh) $0.0067 $0.0061 $0.0054 $0.0048 $0.0043 $0.0031
</TABLE>
Charges are based upon recovery of $350 million NPV derived from APS' Compliance
Filing of 8/21/98 as adjusted to synchronize Direct Access and Standard Offer
revenue decreases.
<PAGE>
ARIZONA PUBLIC SERVICE COMPANY Exhibit A
Distribution Charges 5/13/99
By Direct Access Rate Classes Schedule B
<TABLE>
<CAPTION>
Distribution Charges Effective January 1 of
Line ------------------------------------------------------------
# Direct Access Rate Class 1999 2000 2001 2002 2003 2004a/
---- ------------------------ ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
RESIDENTIAL, DA-R1
1 Summer per kWh $0.04158 $0.04041 $0.03934 $0.03837 $0.03748 $0.03689
2 Winter per kWh $0.03518 $0.03419 $0.03329 $0.03247 $0.03172 $0.03122
DA-GS1 (UNDER 3 MW)
Summer Rates
3 per kW for all kW over 5 $0.721 $0.691 $ 0.663 $ 0.638 $ 0.615 $ 0.600
4 per kWh for the first 2,500 kWh $0.04255 $0.04075 $0.03912 $0.03763 $0.03627 $0.03537
5 per kWh for the next 100 kWh per kW over 5 $0.04255 $0.04075 $0.03912 $0.03763 $0.03627 $0.03537
6 per kWh for the next 42,000 kWh $0.02901 $0.02779 $0.02667 $0.02565 $0.02473 $0.02411
7 per kWh for all additional kWh $0.01811 $0.01735 $0.01665 $0.01602 $0.01544 $0.01506
Winter Rates
8 per kW for all kW over 5 $0.652 $ 0.624 $ 0.599 $ 0.576 $ 0.555 $ 0.541
9 per kWh for the first 2,500 kWh $0.03827 $0.03666 $0.03519 $0.03385 $0.03263 $0.03182
10 per kWh for the next 100 kWh per kW over 5 $0.03827 $0.03666 $0.03519 $0.03385 $0.03263 $0.03182
11 per kWh for the next 42,000 kWh $0.02600 $0.02490 $0.02390 $0.02299 $0.02216 $0.02161
12 per kWh for all additional kWh $0.01614 $0.01546 $0.01484 $0.01427 $0.01376 $0.01342
Voltage Discounts
13 Primary Voltage 11.6% 12.1% 12.6% 13.1% 13.6% 13.9%
14 Transmission Voltage 52.6% 54.9% 57.2% 59.5% 61.7% 63.3%
DA-GS10 (3 MW AND ABOVE)
15 per kW $ 3.53 $ 3.33 $ 3.15 $ 2.98 $ 2.83 $ 2.73
16 per kWh $0.00999 $0.00943 $0.00892 $0.00845 $0.00802 $0.00774
Voltage Discounts
17 Primary Voltage Discount 4.8% 5.1% 5.3% 5.6% 5.9% 6.2%
18 Transmission Voltage Discount 36.7% 38.9% 41.1% 43.4% 45.8% 47.4%
DA-GS11 (RALSTON PURINA)
19 per kW $ 2.58 $ 2.71 $ 2.57 $ 2.44 $ 2.32 $ 2.25
20 per kWh $0.00732 $0.00767 $0.00727 $0.00691 $0.00657 $0.00635
DA-GS12 (BHP COPPER)
21 Primary Voltage Delivery per kW $ 2.35 $ 2.30 $ 2.16 $ 2.07 $ 1.99 $ 1.93
22 per kWh $0.00665 $0.00651 $0.00611 $0.00585 $0.00561 $0.00546
23 Transmission Voltage Delivery per kW $ 1.22 $ 1.17 $ 1.03 $ 0.94 $ 0.85 $ 0.80
24 per kWh $0.00346 $0.00332 $0.00292 $0.00266 $0.00242 $0.00227
DA-GS13 (CYPRUS BAGDAD)
25 per kW $ 1.05 $ 1.21 $ 1.03 $ 0.94 $ 0.85 $ 0.80
26 per kWh $0.00297 $0.00343 $0.00292 $0.00266 $0.00242 $0.00227
</TABLE>
a/ Transmission voltage customers will not pay Distribution Charges after
June 30, 2004
<PAGE>
Exhibit A
5/14/99
Schedule C
ARIZONA PUBLIC SERVICE COMPANY
Regulatory Asset Amortization Schedule
(Millions of Dollars)
1/1 - 6/30
1999 2000 2001 2002 2003 2004 1/ Total 2/
---- ---- ---- ---- ---- ------- --------
164 158 145 115 86 18 686
1/ Amortization ends 6/30/2004
2/ Includes the disallowance from Section 3.3
<PAGE>
1999 Residential 20 .93
General Service less than 3MW 20 2.43
General Service greater than 3MW 20 2.82
BHP Copper 20 1.54
Cyprus Copper 20 1.34
Ralston Purina 20 1.86
2000 Residential 20 .84
General Service less than 3MW 20 2.20
General Service greater than 3MW 20 2.55
BHP Copper 20 1.53
Cyprus Copper 20 1.46
Ralston Purina 20 1.98
2001 Residential 100 .63
General Service less than 3MW 100 1.66
General Service greater than 3MW 100 1.89
BHP Copper 100 1.06
Cyprus Copper 100 1.05
Ralston Purina 100 1.50
2002 Residential 100 .56
General Service less than 3MW 100 1.46
General Service greater than 3MW 100 1.72
BHP Copper 100 .95
Cyprus Copper 100 .94
Ralston Purina 100 1.34
2003 Residential 100 .50
General Service less than 3MW 100 1.30
General Service greater than 3MW 100 1.51
BHP Copper 100 .83
Cyprus Copper 100 .82
Ralston Purina 100 1.18
2004 Residential 100 .36
General Service less than 3MW 100 .94
General Service greater than 3MW 100 1.09
BHP Copper 100 .61
Cyprus Copper 100 .61
Ralston Purina 100 .87
- ----------
1 This formula assumes no change in APS' distribution service territory. In
the event of any material change (e.g. by purchase, sale, expansion,
condemnation, etc.) the formula will be adjusted such that APS receives
the same opportunity to recover the agreed upon level of costs.
2 General Service unmetered loads will have a demand calculated for CTC
purposes based on contract energy.
3 At the end of 2004 the net present value will be calculated to compare to
the $350 million.
<PAGE>
5/7/99
EXHIBIT C
Generation assets include, but are not limited to, APS' interest in the
following generating stations:
Palo Verde
Four Corners
Navajo
Cholla
Saguaro
Ocotillo
West Phoenix
Yucca
Douglas
Childs
Irving
Including allocated common and general plant, support assets, associated land,
fuel supplies and contracts, etc. Generation assets will not include facilities
included in APS' FERC transmission rates.
<PAGE>
EXHIBIT D
AFFILIATE RULES WAIVERS
R14-2-801(5) and R14-2-803, such that the term "reorganization" does not
include, and no Commission approval is required for, corporate restructuring
that does not directly involve the utility distribution company ("UDC") in the
holding company. For example, the holding company may reorganize, form, buy or
sell non-UDC affiliates, acquire or divest interests in non-UDC affiliates,
etc., without Commission approval.
R14-2-804(A)
R14-2-805(A) shall apply only to the UDC
R14-2-805(A)(2)
R14-2-805(A)(6)
R14-2-805(A)(9), (10), and (11)
RECISION OF PRIOR COMMISSION ORDERS
Section X.C of the "Cogeneration and Small Power Production Policy" attached to
Decision No. 52345 (July 27, 1981) regarding reporting requirements for
cogeneration information.
Decision No. 55118 (July 24, 1986) - Page 15, Lines 5-1/2 through 13-1/2;
Finding of Fact No. 24 relating to reporting requirements under the abolished
PPFAC.
Decision No. 55818 (December 14, 1987) in its entirety. This decision related to
APS Schedule 9 (Industrial Development Rate) which was terminated by the
Commission in Decision No. 59329 (October 11, 1995).
9th and 10th Ordering Paragraphs of Decision No. 56450 (April 13, 1989)
regarding reporting requirements under the abolished PPFAC.
