01/20/10
For Immediate Release:
Proposed Sun City Water & Wastewater Rate Consolidation & Increase
There are two issues facing Sun City in regards to water and wastewater: rate consolidation and increases in rates. Both need you to take action today!
Currently, Arizona-American Water Company’s (“AZ American”) rates are unique for each of its geographic districts. The existing rates reflect the differing cost to serve each geographic area. Rate consolidation is the process of bundling a group of geographical districts together and averaging the differing costs for each district into a single rate. Sun City has some of if not the best water in the state, so this consolidation/bundling process is detrimental to Sun City as we will help pay for costs in other districts to treat their water that our water does not require. Additionally, as Sun City West experienced in its recent fight regarding this same issue, Property Owners and Residents Association (“PORA”) representatives have stated that the consolidation is what stood in the way of getting any relief from the proposed increase. The proposal to consolidate these districts has been made by the Arizona Corporation Commission (“ACC”) staff. RCSC has already informed the ACC and AZ American that they are adamantly opposed to this consolidation and you should all individually do the same.
The Arizona-American Water Company, Inc. filed an application with the ACC for permanent revenue increase for Sun City water and wastewater. Their application requests a 27.7% increase in water and a 40.8% increase in wastewater. Although RCSC has notified the ACC we oppose this increase, stating the fact that we are a non-profit organization that serves and is funded by the 27,931 households of Sun City, this will have little effect unless the residents of Sun City do the same. Not only will the residents be affected by their individual increase in water and wastewater, they will also be affected by the increase to RCSC, which will have to be passed on in annual property assessments. In 2009, RCSC spent $128,440 in water and sewer. This application by AZ American would increase RCSC expenses annually by approximately $40,000 for water/wastewater. Recently ACC awarded APS a 10%-plus increase, which will raise RCSC electric costs by approximately $100,000 this year. In 2008 and 2009, RCSC annual property assessments were increased by 4%; this provided only approximately $350,000 in additional income to RCSC. The total of the utility increases would be 40% of this additional income and in 2010 there is no increase in annual property assessments to cover these additional costs. If you want to make a difference and help keep everyone’s operating costs down in Sun City, here is what you must do:
Write to the Arizona Corporation Commission, Consumer Services Section, 1200 W. Washington St., Phoenix AZ 85007, providing the following information: your name, your address, your phone number, your email address, and the following:
Utility Name: Arizona-American Water Company, Inc.
Docket Numbers: W-01303A-09-0343 and SW-01303A-09-0343
Re: Rate Consolidation and Increases
and/or go to http://www.azcc.gov/divisions/utilities/forms/public_comment.pdf
and complete the public comment form emailing it to mailmaster@azcc.gov:
and/or contact each of the Commissioners as follows:
Arizona Corporation Commission
Commissioners Wing
1200 W. Washington - 2nd Floor
Phoenix, Arizona 85007
| Commissioner | Phone | Fax | |
| Kristin Mayes, Chair | mayes-web@azcc.gov | 602-542-4143 | 602-542-0765 |
| Gary Pierce | pierce-web@azcc.gov | 602-542-3933 | 602-542-5560 |
| Sandra Kennedy | kennedy-web@azcc.gov | 602-542-3625 | 602-542-3669 |
| Paul Newman | newman-web@azcc.gov | 602-542-3682 | 602-542-3708 |
| Robert Stump | stump-web@azcc.gov | 602-542-3935 |
602-542-0752 |
Contact AZ American by emailing azrates@amwater.com or by calling Joni McGlothlin, Manager, External Affairs at 623-445-2456 or Tom Broderick, Director, Rates & Regulation at 623-445-2458 or Thomas.Broderick@amwater.com or:
Thomas M. Broderick
Director, Rates & Regulation
Arizona- American Water
2355 W. Pinnacle Peak Rd., Suite 300
Phoenix, AZ85027
Contact the Residential Utility Consumer Office (“RUCO”) who has filed an application to intervene on your behalf by emailing cfraulob@azruco.gov or calling 602-364-4835 or by mail at
Residential Utility Consumer Office
1110 W. Washington St., Suite 220
Phoenix AZ 85007