Residential Utility Consumer OfficeArizona-American Water Company, Inc. - 2009 Rate Case Filing
On Thursday, July 2, 2009, Arizona-American Water Company, Inc. ("Arizona-American" or "Company"), a wholly owned subsidiary of American Water Works Company (NYSE: AWK), filed an application for a permanent rate increase ("Application") with the Arizona Corporation Commission ("ACC" or "Commission") requesting rate increases for the following districts:
Revenue Percentage
Name of District Increase of Increase
Anthem Water District $7,268,177 100.80%
Sun City Water District $2,531,127 27.74%
Anthem/Agua Fria Wastewater District $7,060,837 81.77%
Sun City Wastewater District $2,156,882 36.35%
Sun City West Wastewater District $1,480,756 26.16%
The Company is also seeking a 12.25 percent return on common equity for a weighted average cost of capital of 8.53 percent.
On Monday, August 24, 2009, ACC Staff issued a letter of sufficiency informing Arizona-American that the Company's Application met the sufficiency requirements as outlined in A.A.C. R14-2- 103.
On Thursday, August 27, 2009, RUCO filed an Application to Intervene in the case.
On Thursday, September 24, 2009, the Administrative Law Judge ("ALJ") assigned to the case issued a Procedural Order setting the date for the evidentiary hearing on Arizona-American's request for Monday, April 19, 2010, at 10:00 a.m. (or as soon thereafter as is practicable) at the Commission’s offices, 1200 West Washington Street, Hearing Room #1 in Phoenix. Public comment will be taken at the start of the hearing.
On Thursday, February 18, 2010, RUCO filed a motion for an extension to file direct testimony on required revenue on Arizona-American's request for increased rates. None of the other parties to the case were opposed to RUCO's motion.
On Friday, February 19, 2010 the ALJ assigned to the case issued a procedural order granting RUCO's motion.
On Friday, February 26, 2010, ACC Staff filed a request seeking a one-week extension for filing direct testimony on required revenue on Arizona-American Water Company Inc.'s ("Arizona-American") request for increased rates. ACC Staff subsequently filed direct testimony on required revenue on Monday, March 8, 2010.
During the discovery phase of the proceeding, RUCO's outside consultant analyzed the Company's Application and arrived at an appropriate level of revenue for the Company. RUCO's in-house staff performed a full cost of capital analysis.
In accordance with the ALJ's procedural order issued on March 1, 2010, RUCO filed its direct testimony on required revenue on Monday, March 8, 2010 and is recommending the following increases in revenue:
Revenue Percentage
Name of District Increase of Increase
Anthem Water District $5,327,222 73.98%
Sun City Water District $712,316 7.81%
Anthem/Agua Fria Wastewater District $5,296,731 61.34%
Sun City Wastewater District $1,527,407 25.74%
Sun City West Wastewater District $757,477 13.38%
On Thursday, March 18, 2010, the ALJ assigned to Arizona-American's request for increased rates issued a procedural order that splits the evidentiary hearing on the matter into two phases. The first phase of the hearing is scheduled for 10:00 a.m. on Monday, April 19, 2010 at 1200 West Washington in Phoenix and will focus on required revenue and all other issues besides rate design and rate consolidation. The second phase of the hearing is scheduled for 10:00 a.m. on Tuesday, May 18, 2010 at 1200 West Washington in Phoenix and will focus on rate design and rate consolidation. Public comment will be taken at the start of the scheduled hearings.
Arizona- American filed its rebuttal testimony on required revenue on Monday, March 22, 2010.
ACC Staff filed its rate design/consolidation testimony on Monday, March 29, 2010 and Tuesday, March 30, 2010. Arizona-American's rebuttal testimony on ACC Staff's rate design/consolidation testimony was docketed on Wednesday, April 7, 2010.
During a public comment session held on Wednesday, April 7, 2010 at the Anthem Community Center, customers of Arizona-American Water Company, Inc., had the opportunity to express their views on the company's request for a rate increase that is now before the Arizona Corporation Commission. In addition to the ACC Commissioners in attendance, RUCO Director Jodi Jerich was also available to answer questions.
On Thursday, April 15, 2010, RUCO filed its surrebuttal testimony on required revenue. RUCO is recommending the following:
Revenue Percentage
Name of District Increase of Increase
Anthem Water District $5,296,426 73.36%
Sun City Water District $682,709 7.48%
Anthem/Agua Fria Wastewater District $5,085,007 58.89%
Sun City Wastewater District $7,447,661 25.51%
Sun City West Wastewater District $783,855 13.85%
The first phase of the evidentiary hearing (on required revenue issues) began as scheduled at 10:00 a.m. on Monday, April 19, 2010 and concluded on Thursday, April 29, 2010. Public comment from concerned ratepayers was heard until 1:00 p.m. on the first day of the hearing.
RUCO filed its rate design/consolidation direct testimony on Monday, May 3, 2010. Arizona-American's rebuttal testimony on RUCO's, and other intervenors', rate design/consolidation testimony will be filed on Friday, May 14, 2010. Surrebuttal testimony on rate design/consolidation from RUCO and other intervenors will be provided orally at the May18, hearing.
On Monday, May 17, 2010 a public comment meeting was held at the Sundial Recreation Center Auditorium located at 14801 N. 103rd Avenue, Sun City, AZ 85351. Over 1,500 ratepayers were in attendance.
The second phase of Arizona-American's evidentiary hearing began as scheduled at 10:00 a.m. on Tuesday, May 18, 2010 and concluded on Thursday, June 3, 2010.
On Friday, June 30, 2010, Arizona-American released a schedule of town hall meetings to explain rate consolidation to customers in the Company's various districts.
RUCO's final accounting schedules were filed on Thursday, June 24, 2010. Initial closing legal briefs were filed on Friday, July 16, 2010. Reply legal briefs are due on Friday, August 6, 2010.
After the filing of final accounting schedules and legal briefs, the ALJ will weigh all of the evidence presented during the proceeding (including public comments and correspondence from concerned ratepayers) and issue a Recommended Opinion and Order ("ROO"). The ROO will be voted on by the five ACC Commissioners during a scheduled Open Meeting. The Commissioners can either accept the ROO as is, make amendments to the ROO, or reject the ROO.
A final decision on Arizona-American's request for an increase in rates will probably be made sometime during the latter part of 2010.