Residential Utility Consumer OfficeArizona Water Company - 2011 Eastern Group Rate Case
Docket Number: W-01445A-11-0310
On August 5, 2011, Arizona Water Company ("AWC" or the "Company"), filed an application ("Application")1 with the Arizona Corporation Commission ("ACC" or "Commission") requesting a permanent rate increase for the Company's Eastern Group systems.
AWC's Eastern Group is comprised of the Company's Superstition system (which provides service to Apache Junction, Superior and Miami), the Cochise system (which serves customers in Bisbee and Sierra Vista), the San Manuel system, the Oracle system, the SaddleBrooke Ranch system and the Winkelman system. During the test year ended December 31, 2010, AWC's Eastern Group Systems provided water service to approximately 33,700 customers.
AWC is seeking a total revenue increase of $5,268,560 or an increase of 25.68 percent over test year revenues for the Company's Eastern Group. The revenue increases by system are as follows:
Revenue Pct.
System Increase Increase
Superstition $3,894,582 25.86%
Cochise $733,087 22.19%
San Manuel $387,458 40.88%
Oracle $148,456 15.00%
SaddleBrooke Ranch $73.713 62.95%
Winkelman $31,264 30.63%
In addition to the requested increases in revenue, AWC is also requesting that the Commission approve a Distribution System Improvement Charge ("DSIC") that would allow for recovery of routine plant improvement costs outside of general rate case filings, and an Off-Site Facilities Fee to cover costs of off-site water production, treatment, delivery, storage and pressure facilities for new customers whose water supply requirements make such plant additions necessary.
Under the Company-proposed rate increase, 5/8 x 3/4 - inch meter customers of the Company's various Eastern Group systems would see the following change in their monthly rates:
Average
Consumption Present Proposed Dollar Pct.
Name of District (Gallons) Charge Charge Increase Increase
Superstition 6,300 $33.84 $43.65 $9.81 29.00%
Cochise (Bisbee) 4,800 $32.43 $39.07 $6.64 20.48%
Cochise (Sierra Vista) 8,000 $25.95 $35.44 $9.49 36.55%
San Manuel 7,100 $43.61 $62.54 $18.93 43.41%
Oracle 5,100 $43.05 $50.45 $7.40 17.18%
SaddleBrooke Ranch 3,400 $28.96 $39.96 $11.00 37.98%
Winkelman 9,400 $30.74 $40.45 $9.71 31.58%
On Monday, September 6, 2011, ACC Staff issued a letter of sufficiency informing AWC that its Eastern Group Application meets the filing requirements of A.A.C. R-14-2-103.
On Thursday, September 8, 2011, the Administrative Law Judge ("ALJ") assigned to the case issued a Procedural Order scheduling a procedural conference for the purpose of discussing dates for an evidentiary hearing and the filing of written testimony with the parties to the case.
On Wednesday, September 14, 2011, RUCO filed an Application to Intevene in the case and for a thirty minute delay on the scheduled start time for the scheduled procedural conference due to a conflict with another scheduled proceeding.
On Thursday, September 15, 2011, the ALJ assigned to the case issued a Procedural Order granting RUCO's request to change the time of the scheduled procedural conference to 1:00 p.m. on Monday, September 19, 2011 in Room 100, 1200 W. Washington in Phoenix.
During the procedural conference held on September 19, 2011, attorneys for the parties to the case discussed possible dates for an evidentiary hearing and the filing of written testimony with the ALJ assigned to the case. A procedural order from the ALJ is expected over the coming week.
On Tuesday, September 20, 2011 the ALJ assigned to the case issued a Procedural Order scheduling the evidentiary hearing on the matter for 10:00 a.m. on Monday, May 14, 2012.
On Friday March 2, 2012, ACC Staff filed a request for an extension of time to file written testimony.
On Friday, March 2, 2012, the ALJ assigned to the case issued a Procedural Order granting ACC Staff's request and rescheduling the pre-hearing conference in the matter from 1:00 p.m. on Wednesday, May 9, 2012, to 1:00 p.m. on Friday, May 11, 2012. There is no change in the time and date for the evidentiary hearing.
Direct testimony from ACC Staff, RUCO and other intervenors was filed on Tuesday, March 13, 2012.
Company rebuttal testimony was filed on Tuesday, April 10, 2012.
On Friday, April 20, 2012, AWC approached the ACC's Utility Division and expressed the Company's desire to enter into settlement discussions with the parties to the case.
On Tuesday, April 24, 2012, ACC Staff filed a notice advising the five ACC Commissioners that settlement discussions would begin no earlier than April 27, 2012, and that all parties in the matter would be invited and given the opportunity to attend all settlement discussions. The filing also proposed a revised schedule for the filing of a possible settlement agreement and written testimony.
In a notice filed on Tuesday, April 24, 2012, Arizona Water Company invited all of the parties to its Eastern Group rate case proceeding to take part in settlement talks. Discussions were scheduled to begin at 9:30 a.m. on Friday, April 27th, 2012 in the Commissioners' Conference Room, 2nd Floor, 1200 W. Washington in Phoenix.
On Wednesday, April 25, 2012, the ALJ assigned to the case issued a Procedural Order that modified the procedural schedule to accommodate settlement discussions.
Settlement talks on AWC's Eastern Group rate case proceeding began as scheduled on Friday, April 27, 2012 but failed to produce an agreement between the parties to the case.
Surrebuttal testimony from ACC Staff, RUCO and other intervenors was filed on Monday, May 7, 2012.
A final round of rejoinder testimony from the Company was filed on Friday, May 11, 2012.
Also on Friday, May 11, 2012, a pre-hearing conference was held at the ACC's Phoenix offices at 1:00 p.m.
On Monday, May 14, 2012 the evidentiary hearing began as originally scheduled at 10:00 a.m. at 1200 W. Washington in Phoenix. The hearing went into recess after the first day and resumed at 9:00 a.m. on Wednesday, May 16, 2012. Cost of capital witnesses have been scheduled to testify on Monday, May 21, 2012.
After the conclusion of the evidentiary hearing and the filing of legal briefs, the ALJ will weigh all of the evidence presented in the case and write a Recommended Opinion and Order ("ROO"). The ROO will then be voted on by the five sitting ACC Commissioners during a noticed Open Meeting. The Commissioners can either accept, reject or amend the ROO.
A final decision by the Commission on AWC's requested increase is not expected until sometime during the latter part of the third quarter of 2012.