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Video-1: https://azcc.granicus.com/MediaPlayer.php?view_id=3&clip_id=7039

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Let's go on the record. Okay. Okay. Okay. Go ahead. Alright. Good morning, everyone. This is the time set for the telephonic prehearing conference in consolidated docket numbers W02514ADash25Dash0192, W03861ADash25Dash0193, W01944ADash25Dash0194. WDash02514ADash25Dash0216.

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W03861ADash25Dash0217 W03861ADash25Dash0217 involving the rate and financing applications of Quail Creek Water Company Inc, Ridgeview Utility Company, and Lago del Oro Water Company. My name is Julia Mater. I'm the administrative law judge assigned to provide over this matter. Let's take appearances for the record starting with the company. Good morning, your honor. Jay Shapiro on behalf of the three applicants,

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and we all hope that one of these days, we have a lot less docket numbers for you. Alright. Thank you, mister Shapiro. And for Saddle Brook Homeowners Association number one? Good morning, your honor. This is Atha Bookwalter for Saddle Brook Association homeowners number one. Alright. And we do not have an appearance today by Saddlebrooks homeowners association number two. And last for staff. Good morning, your honor. Bridget Humphrey and Ben Kayeras on behalf of staff. Okay. I have a couple questions that I wanna go over. I have a couple things I wanna say,

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and then I will go around to the parties and give them an opportunity to ask any questions or raise any issues. So first, mister Shapiro, so the the HOA one bulk water agreement, as far as I can tell, it is not part of the record that's been filed. And I know that that we're not asking the commission to approve the agreement itself, just the special contract rate that's contained in that agreement. But it it it seems like we would still need to be able to review

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that agreement to evaluate reasonableness, plus there's some references to annual adjustments, but no specifics about that. So without having the actual agreement itself, I I don't know how to look at or evaluate those annual increases. Absolutely. And that's not intentionally kept away. If I may ask, mister Buckwalter, is it fully executed as your client signed? Okay. Yeah. That's fully yet. Filed all the way. Although we do have, Jay, we still have the amendment to sign. That's what I meant. Okay. Has the amendment been executed? No.

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You we you guys haven't signed it yet. Your honor, we'll get that executed and filed in the next twenty four hours. Okay. Thank you. And then We'll just file it as an exhibit that's not intended. Well, we could mark it. Again, you you stated it correctly. We need the commission to approve the rate, but we don't believe, and I don't think the commission believes that it approves the contract itself. But you should absolutely have a copy of it. Okay. And unless there's an objection Go ahead. Okay. So unless there's an objection from the parties to that agreement,

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I think it's worthwhile to mark it as an exhibit, update the exhibit list so that we could admit it. It's officially part of the record. I can review it. The commission can review it recognizing that it's we're not asking the commission to approve it. We agree a 100%, and we'll have it filed as an exhibit. Again, I think miss Burke's probably listening and making plans to get it done. Okay. Great. Alright. Mister Shapiro, one more thing. So the settlement agreement doesn't speak to the financing specifically or the terms.

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I you can't tell from the settlement agreement if the parties have agreed to the financing proposal or not. I don't know if we're supposed to glean from the schedules what the outcome of that is. Can you speak to that? You know, I think the only thing we probably put in there was the cost of debt, and then the the 7030, recommended capital structure. The parties do all support the financing, and we can certainly have, miss Schwartz clarify that when she takes the stand Monday. I think that's just an oversight on counsel,

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counsel's part between us. Nobody really caught. They would probably need a specific paragraph saying the financings are supported as requested, subject to the cost of debt the capital structure's agreed to here in. Okay. Yeah. From from the cost of debt and the capital structure, one would certainly infer that everyone is in agreement as to the financing. But in terms of, like, the number of your terms or, you know, who the financing is coming from, you know, none of that is laid out in the settlement agreement.

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And I don't believe anyone spoke to it in the in the settlement testimony that's been filed. So we need to make that clear, in the record. I would hope staff would speak to that as well. If the parties think, you know, an amendment needs to be made to the settlement agreement, they can contemplate that. I'm not saying one way or the other. I'm just saying that from the document itself, someone who's not involved reading it would have no idea what the parties have agreed to in terms of the financing other than, you know, the cost of debt rate.

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Yeah. I don't know that we need to amend the settlement. I'll leave that to my colleagues to raise their concern. Otherwise, we'll be prepared, do some direct with miss Schwartz on the stand to clarify all that. And then, of course, she'll be available for any additional questions, that are still left in your mind after you hear from her. Okay. Alright. Thank you, mister Shapiro. Those are all the specific question that I had. I wanna note that all witnesses should be available at the hearing. Webex is fine as was indicated in the procedural order setting the hearing.

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No special permission is required from me to appear via Webex, whether that for an attorney or a witness. If an attorney or a witness is gonna appear via Webex, they just need to follow the instructions that were given in the procedural order that's at the hearing, make sure that they're set up to do that, and and know how it works and how to do it so that there's as few technical glitches, at the hearing as possible. I I have a question,

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and I have them broken out by all the witnesses. But I understand the practice in these cases where there's a settlement is typically to just put on the witness that has provided the settlement testimony. That's fine if that's what you want the plan to be, and I will ask as many of my questions as possible of that witness. And if we need to have another witness, we'll call them. If that main witness is fine, then great. But my expectation is that everyone who's provided pre filed testimony in this case is

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available in the event, that they are needed. Okay. Next point. All exhibits need to be admitted. All pre filed testimony needs to be admitted, even all the presettlement stuff that, you know, that has obviously changed quite a bit at this point. It's fine to do that by stipulation. We can do that at the start of the hearing, but all three file testimony should be admitted at the hearing. All exhibits, one marked copy needs to be provided in Phoenix,

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as the official copy for the record delivered to the hearing division. Just one copy. You do not need to also provide a copy for me. I'm in Tucson. I'm not gonna get it. So the copy that gets delivered to Phoenix is what we traditionally would have called the court reporter's copy. The court reporter doesn't get it anymore. Our admins now deal with that. That also means that there will not be a copy available in the Tucson Hearing Room for witnesses. So if you are gonna be a person bring one.

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I'm sorry. This is Jay, though. We will be there live, and we will bring one. Of everyone? H o a one will bring their Jay, I'm I'm I'm gonna bring my own book as well. Well, I'm okay. Yeah. We will have a set of of all of our exhibits available in the room. And if need be, we can bring a set of everybody's if that would be easier since we're going to be there live. Okay. Okay. We can miss Humphrey can tell us at the end of this is different, but my understanding is staff is probably gonna appear via Webex. So, you know, if you wanted to ask a witness that's gonna be in Tucson about a staff

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exhibit, for example, then you would need to have a copy for them to refer to. So you guys sort that out amongst yourselves. Just know that I will not there will not be a copy that has been delivered to the hearing division that will be available for use. Okay. Next, there is an evening public comment session today beginning at 05:30, I believe. So that's gonna be in person in the Tucson Hearing Room or the public can appear telephonically. No party is required to attend that public comment proceeding,

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but anyone is certainly welcome to. Okay. Those are all the things that I needed to say. So I'm gonna go around the room and give each party an opportunity to ask any questions, raise any issues, and maybe you can tell me what witnesses you intend to call to the extent that the answer is different than, the part the individuals that filed settlement testimony. So we will start with you, mister Shapiro. Thank you, your honor. We will have we will call miss Schwartz and mister Barraza who both filed settlement

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testimony. We will also have mister Edwards and miss Barbee available in Tucson on Monday. If there are any other questions that, they need to answer, they will be available. So we and we will be there, on time Monday, live, our group. Okay. Thank you, mister Shapiro. Any questions or issues you wanna raise? Not that I'm aware of. Again, if if staff wants us to have a a set of exhibits, I can work that out with Bridget. We can bring those down so that there is a full set in the room, etcetera. So we'll try to make it as easy as possible.

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Okay. Thank you. Alright. Mister Buckwalter, any questions questions or issues that you would like to raise? Thank you, your honor. No questions or issues. Our plan is the similar we'll have Vivian there in person to testify, and she's the one who, provided the settlement testimony. We also will have Nathan Miller available, virtually if needed. Okay. Alright. Thank you. And, miss Humphrey, any issues, questions? No, your honor. We intend to call, Britton Baxter as our as our main witness,

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but all of the other, witnesses who filed pre filed testimony, will also be available, via will be appearing via Webex. And it's my understanding we tried to set it up for the the hearing room, but we can't I guess we can't do that yet, so we'll be doing it from the the legal library here in in Phoenix. With regard to the exhibits, I believe we have a full set of printed testimony. So I I can work with mister Shapiro as far as, you know, anything we might need in addition to that, but, we can make that available, for the for staff's witnesses,

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if if they're called upon to testify. Okay. And as always, miss Humphrey, if you all can do your best in that room to get the camera as close to people as possible, that really helps Okay. From our core reporters. Okay. Alright. I believe that's it. I'll give one chance for anyone to speak up if they've thought of something else. Nope? Alright. Well, thank you everyone for calling in and for your participation today. I will see everyone next Monday morning at 10AM,

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either in person in Tucson or virtually. And with that, we are adjourned and can go off the record. Please do not hang up immediately.