ACC approves changes in rates for 10 water systems, including Tubac

PHOENIX--After months of deliberation, testimony and public comment, the five members of the Arizona Corporation Commission reached a unanimous decision Friday to approve a combination of rate increases and decreases for 10 Arizona-American Water Co. systems.

In Santa Cruz County, the company provides water for about 485 customers in Tubac. There, the last rate increase came in 1997.

Costs will increase

The current average bill of $39.19 a month will rise by $14.20 to $53.39 a month, said Heather Murphy, public information officer for the corporation commission.

She said the original request by Arizona-American would have resulted in an average increase of $33.83 a month.

An administrative law judge presided over a courtroom-style hearing that lasted for nine days. The judge issued a 74-page Recommended Opinion and Order. It recommended a combination of increases and decreases, based upon the costs to install, maintain and operate each of the separate water and wastewater systems.

Arizona-American acquired the water and wastewater systems formerly owned by Citizens Water Resources in January 2002.

The firm operates water and wastewater systems in the Anthem community north of Phoenix, Sun City, Sun City West and Surprise.

The company also serves portions of Bullhead City, Lake Havasu City and Tubac. In November 2003, the commissioners traveled to six locations around the state to take public comment from residents and interested consumer groups.

This is the first rate case filed by Arizona-American Water Co. and some systems have not had any rate changes since the early 1990s.

The company presented evidence that the costs of maintaining, operating and testing its water system to provide safe, reliable drinking water have increased and it sought commission approval to raise rates, Murphy said.

After a detailed audit and analysis by Commission staff and intervenors like the Residential Utility Consumer Office (RUCO), it was determined that some increases were warranted but that rates should be lowered for other systems.

From the Nogales International