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): August 26, 1999
ARIZONA PUBLIC SERVICE COMPANY
(Exact name of registrant as specified in its charter)
Arizona 1-4473 86-0011170
(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)
Item 5. Other Events
Proposed Settlement Agreement
As previously reported, hearings before the Arizona Corporation
Commission (the "ACC") on the comprehensive Settlement Agreement between Arizona
Public Service Company (the "Company") and various other parties ended in July
1999. See Note 6 of Notes to Condensed Financial Statements in the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1999 (the
"June 10-Q"). On August 26, 1999, the ACC Hearing Officer assigned to conduct
the hearings on the Settlement Agreement issued a recommended decision. The
recommended decision, which is attached hereto and incorporated herein by this
reference, would approve the Settlement Agreement with some modifications.
The following are some of the proposed changes to major provisions of
the Settlement Agreement:
o The ACC would not be prevented from commencing rate change
proceedings during the Agreement term, provided that such
proceedings would not modify stranded cost recovery or reduce the
rate decreases provided in the Agreement for customer class.
o The recommended decision would change the Company's proposed
credits for metering, meter reading and billing, and instead would
require the use of higher credits proposed by ACC staff.
o The recommended decision would limit the Company's collection of
costs related to the transfer of generation assets to an affiliate
to 67% of such costs.
The ACC is tentatively scheduled to consider this recommendation at its
next regularly scheduled open meeting on September 14, 1999.
Proposed Retail Electric Competition Rules
As previously reported, in June 1999, ACC oral proceedings were held on
the rules that provide a framework for the introduction of retail electric
competition in Arizona (the "Proposed Rules"). See Note 6 of Notes to Condensed
Financial Statements in the June 10-Q. On August 26, 1999, the ACC Hearing
Officer issued a recommended decision on the Proposed Rules. The recommended
decision proposes adoption of the Proposed Rules with a number of modifications
which the recommended decision states do not change the Proposed Rules in any
substantive manner.
The ACC is tentatively scheduled to consider this recommendation at its
next regularly scheduled open meeting on September 14, 1999.
Item 7. Financial Statement, Pro Forma Financial Information and
Exhibits
(c) Exhibits
Exhibit No. Description
10.1 Settlement Agreement
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: August 27, 1999 By: Nancy C. Loftin
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Nancy C. Loftin
Vice President and General Counsel