02/19/10
For Immediate Release:
Proposed Sun City Water & Wastewater Rate Consolidation, Bundling & Increase
It appears that there are actually three issues facing Sun City in regards to water and wastewater: rate consolidation, bundling and rate increases. Several Sun City and Sun City West organizations have come together to become further educated on the rate consolidation proposal, more informed about the bundling of water and wastewater districts, and to research the Arizona-American Water Company, Inc. (“AZ American”) applications and supplements filed with the Arizona Corporate Commission (“ACC”). Stay in the loop with RCSC news alert emails – go to www.sunaz.com and sign up today! If you do not have access to email, information will be provided to the local newspapers for publication.
Rate Consolidation
Currently, AZ American’s 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 packaging a group of geographical districts together and averaging the differing costs for each district into a single rate. The water districts included in the rate consolidation model are: Sun City, Sun City West, Agua Fria, Anthem, Tubac, Mohave, Havasu and Paradise Valley. In a training session held by AZ American on February 10, 2010 on rate consolidation, AZ American stated that rate consolidation would be of benefit to Sun City because of the age of Sun City’s water and wastewater systems, as the cost of supporting this infrastructure would be shared by the other geographic districts in the consolidation. However, there are serious water issues in some of these districts that Sun City residents are going to pay for if rate consolidation is approved, such as arsenic removal, of which Sun City’s water has so little it doesn’t require treatment. The current residential wastewater rate is $13.69. According to AZ-American’s model with the non-consolidated rate increase proposed (see rate increases), the proposed rate will be $19.34 for residential wastewater, however, with rate consolidation the rate would be $36.68, a total of a 168% increase from the present residential wastewater rate. This does not include the 76.98% increase for Sun City resident’s average water consumption, based on AZ American’s model for rate consolidation.
Bundling
In AZ American’s application with the ACC (Docket No. W-01303A-09-0343) “for a determination of the current fair value of its utility plant and property and for increases in its rates and charges based thereon for utility service” of water, the Sun City Water District is bundled with the Anthem Water District. Therefore, AZ-American’s justification for the increase includes Anthem Water District which has considerably more water issues than Sun City, providing cost justification in the bundle that is not for Sun City alone. In addition, with this bundling the increase will either be approved for both of these water districts or none. Likewise, in AZ American’s application with the ACC (Docket No. SW-01303A-09-0343) the Sun City Wastewater District is bundled with Anthem/Agua Fria Wastewater District and the Sun City West Wastewater District.
Rate Increases
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. Obviously none of us want rate increases; however, just simply stating such is not an adequate opposition. Therefore, those researching these applications will provide more specific information as to what can be used as an effective opposition to these increases.
Let the Arizona Corporation Commission, the Arizona-American Water Company, and the Residential Utility Consumer Office know what you think and where you stand on all three of these issues.
ALL COMMUNICATION MUST INCLUDE: Name, Address, Phone Number and both Docket Nos. W-01303A-09-0343 and SW-01303A-09-0343.
To be recorded as public comment email to mailmaster@azcc.gov and/or write to:
Arizona Corporation Commission
Consumer Services Section
1200 W Washington St
Phoenix AZ 85007
For public comment form go to http://www.azcc.gov/divisions/utilities/forms/public_comment.pdf
To contact the elected Arizona Corporation Commissioners:
Arizona Corporate Commission, Commissioners Wing
1200 W Washington St – 2nd Floor, Phoenix AZ 85007
It is suggested to include "Arizona Registered Voter" in the subject line for all emails.
| Commissioner | Phone | |
|---|---|---|
| Kristin Mayes, Chair | kmayes@azcc.gov and mayes-web@azcc.gov | 602-542-4143 |
| Gary Pierce | gpierce@azcc.gov and pierce-web@azcc.gov | 602-542-3933 |
| Sandra Kennedy | skennedy@azcc.gov and kennedy-web@azcc.gov | 602-542-3625 |
| Paul Newman | pnewman@azcc.gov and newman-web@azcc.gov | 602-542-3682 |
| Robert Stump | rstump@azcc.gov and stump-web@azcc.gov | 602-542-3935 |
To contact Arizona-American Water:
Thomas M. Broderick
Director, Rates & Regulations
Arizona-American Water Company, Inc.
2355 W Pinnacle Peak Rd, Suite 300
Phoenix AZ 85027
623-445-2458
Thomas.Broderick@amwater.com
To contact Residential Utility Consumer Office (“RUCO”) who has filed an application to intervene on residential utility consumer’s behalf:
RUCO
1110 W Washington St, Suite 220
Phoenix AZ 85007
602-364-4835
cfraulob@azruco.gov and brigsby@azruco.gov