8 18 RH 09. tariffs. SWEPCO S application specifically requests a $53.9 mi~~ion increase in its hkansas

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1 BEFORE THE ARKANSAS PUBLIC SERVIClE COMMISSION 8 8 RH 09 IN TEEE MAWR OF THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER DOCKET NO U COMPANY FOR APPROVAL OF A GENERAL CHANGE IN RATES AND TARIFFS PETITION TO INTERVENE COMES NOW, Sierra Club, Natiunal Audubon Society, Audubon Arkansas, Customers Advancing Responsible Rates, Eastin Outdoors, Inc., and Good Things Boutique (collectively Petitioners ) which hereby request leave to intervene ia the above captioned proceeding based on the following:. Qn February 9,2009, Southwestern Electric Power Company ( SWEPCO or Company ) filed an application for a general change or modification in its rates, charges and tariffs. SWEPCO S application specifically requests a $53.9 mi~~ion increase in its hkansas non-fuel rates. 2. SWEPCO s request for a rate increase holds the potential for significant social, economic and environmental impacts. According to SWEPCO s pre-filed expert testimony, the company is proposing to delay $ 84 million in planned 2009 capital projects and $36.6 million in &M expenditures, as a result of the giobal credit crisis. See Testimony of Thorn Brice, at pp Of this $84 million in delayed 2009 capital spending, $29.8 million (7%) is ambiguously labeled environmental. Consequently, SWEPCO s application will require the Commission to prioritize the company s expenditures that are utilized to serve customers and meet environmental objectives.

2 3. Petitioners are comprised of a cmss-sectiofl of consumer, small-business, and enviromental interests, all of which give Petitioners a very real and utlique interest in the outcome of this proceeding. 4. SWEPCO s petition proposes contempommus recovery of construction work in progress (, CWIP ) for construction of its John W. Turk and J. Lamar Stall plants. This ratemaking proceeding may be the Commission s h t opportunity to approve contemporaneous recovery of CWIP. 5. Petitioners have a direct interest in how SWEPCO prioritizes its capital expenditures, from economic, environmental and rate impact perspectives. SWEPCO s request for contemporaneous recovery of C W shifts the bcial risk of the Company s new generation constmction to customers. It is a dqmture h m traditional ratemaking principles in which cost recovery for new generation does not begin until the plant is operational. The contemporaneous recovery of C W cornbind with postponing environmental expenditures raises both ratepayer and environmental equity issues. 6. Under the Commission s des, any person having an interest which may be directly aftected by the Commission s action may petition the Commission to intervme so long as that interest is not adequately represented by other parties to the proceeding. See Rules of Practice and Procedure, Rule Pdtioners inkwention satisfies these Criteria. 7. Sierra Club is one of the oidest comation groups in the country, with over 700,000 members natioxlally in sixty four chapters in all fifty states including the District of Columbia and Puerto Rim. The Sierra Club participates in pubiic utility proceedings nationwide. Approximately 3,000 Arkansans are members of the Arkansas Chapter of the Sierra 2

3 Club. Importantly, a substantial number of Sierra Club chapter members are SWEPCO customers and rate payers. 8. The National Audubon Society has more than one million members and supporters in twenty-three states, and has a presence in all fifty states through more than four hundred and fifty certified chapters and through its nature centers, sanctuaries, and education and science programs. The National Audubon Society participates in public utility proceedings nationwide. Audubon Arkansas serves as the local chapter of the National Audubon Society. The Arkansas chapter has more than 3,500 members with nine lod Audubon chapters, many of whom are SWEPCO customers and rate payers. 9. Customers Advancing Responsible Rates ( CARR ) is a grassroots organization of SWEPCO ratepayem contxmd abut SWEPCO s proposed rate increase. Consumer rate payers stand to face significant impacts hm the proposed SWEPCO rate increase in this docket, which may differ hm induskid or commercial ratepayers. In addition, the other parties to this proceeding may have interests that are adverse to CARR members. To date, CARR s membership includes the following SWEPCO ratepayers: A Vick, Joseph Reagan, Art Hobson, Joyce and James Me, Rob Leflar, Gladys and Richard Tiflhy, Matthew Petty, Sarah Lewis, Torn McKinney, Fdwd Downie, Molly Rawn, Ryan Baumft, Ryan &swell, Chris Cotton, Joshua D. Criknden, Robert Cross, Ken and Terry Eastin, Cindy Greenway, Melissa Hornick, Jesse Lag, Kelly and Jerome MdhoIlan, Harriet Jmsma, Anne Reynolds, Patrick Kunnscke, Jessica and Jacob Cedillo, Jennifer Killian, Mareike Homick, Heather Smith, Ted Swedenburg, Rachel Moore, and Bodie Drake. CARR s members have a direct and substantial interest in the subject matter of this proceeding which is not adequately represented by other parties to the proceeding. A significant nurnbr of CARR s members are %ISQ members of Sierra Club and Audubon. 3

4 0. Eastin Outdoors, Inc. and Good Things Boutique are small businesses and SWEPCO ratepayers. Small business owners stand to face significant impacts from the proposed SWEPCO rate change which may differ hm large business or industrid rate payers. Eastin olrtdoors, hc. and Good Things Boutique have a direct and substantial interest in the subject matter of this pmceedhg which is not adequately represented by other parties to the proceedhg.. The interests of Petitioners differ significantly h m other parties to this proceeding and cannot be adequately represented by arty existing or hture participant, given the unique nature of their interests. Allowing Petitioners to intervene will serve the pubk interest because no other party to this pmceedhg has the capacity and the incentive to assure that Petitioner s concern are addressed. Futher, the other parties my have interests tbat are advm to the Petitioners. 2. Pursuant to Rule 2.03 of the Commission s RuZes of Practice and Procedures, the following individuals should be included on the official Service List in this pmeding and all communications coflcerning this matter should be addressed to the following persons: Adam Weeks GloriaD. Smith Attorney at Law Sierra Club One Financial Center 85 Second Street, Second Floor 650 S. Shackleford, Ste. 400 San Francisco, CA 9405 Little Rock, AR 722 (45) (50) gloria smith(@sierrachb -0% a#?yeek3@maii.com 4

5 WHEREFORE, Petitioners request that they be permitted to intervene as a party in this proceding with all rights attendant thereto. Arkansas BarNo One Financial Center 650 S. Shackleford, Ste. 400 Little Rock AR 722 agweeh@gmail.com (50 ) Attorney for Petitioners 5