25% Water Rate Increase for Arizona Water Company Customers (TriValleyCentral)

Jun.04, 2009 in Water Rates

(June 2, 2009, TriValleyCentral)

The company, which in Pinal County serves Casa Grande, Coolidge, Arizona City, Stanfield and other areas, has asked the Arizona Corporation Commission for approval to raise its general rates for a base revenue growth of about 35 percent.

The request was filed last year and a hearing is scheduled for Aug. 31 at 9:30 a.m. at the ACC offices, 1200 W. Washington St. in Phoenix. The company’s last rate increase was in 2005 and was based on investment and operating costs incurred in 2003, said Arizona Water Company Vice President and Treasurer Joe Harris.

“The company has made major investments in its new plants and experienced significant increases in its operating expenses since its last rate increase,” Harris said.

If state regulators approve the rate increase, the additional amount customers would pay would vary, based on type and quantity of service.

A typical customer in Casa Grande, with a five-eighths or three-fourths-inch meter, would see an increase of about $6.94 – approximately 25 percent, according to the public notice of hearing for the proposed rate increase.

Arizona Water Company has several surcharges in effect that raise about $4 million in annual revenues. Those surcharges would be eliminated if the new rates were approved.

Eighteen months ago, the company began the surcharges to recover some costs associated with arsenic treatment.

“A condition of the company’s implementation of the Arsenic Cost Recovery mechanism was that the company file a general rate case no later than September 2008,” Harris said.

Arizona Water Company also serves Ajo Heights, Apache Junction, Bisbee, Lakeside, Miami, Oracle, Overgaard, Pinewood, Rimrock, San Manuel, Sedona, Sierra Vista, Superior, White Tanks and Winkelman.

Public comments will be accepted until the first day of hearings.

Those who wish to voice their concerns about the rate increase may do so in writing to the Arizona Corporation Commission.

For more information, visit the ACC Web site at www.azcc.gov.

(Original Article Here)