Arizona-American Water Company, Inc. - Reorganization

Docket Number
Assigned Staff
W. Rigsby
M. Wood


Case Information:


On Wednesday, March 2, 2011 Arizona-American Company ("AAWC" or "Company") filed an application(link is external) with the Arizona Corporation Commission ("ACC" or "Commission") requesting a waiver of the requirements of A.A.C. R14-2-801 to R14-2-806 ("the Affiliated Interest Rules") with respect to a pending transaction between AAWC's parent, American Water Works Company, Inc. ("American Water"), and EPCOR Water (USA) Inc. ("EPCOR USA") under which American Water will sell all of its issued and outstanding shares of AAWC common stock to EPCOR USA ("Application"). 

According to the Company's Application, AAWC is a public service corporation engaged in providing water and wastewater utility service in portions of Maricopa, Mohave, and Santa Cruz Counties pursuant to certificates of convenience and necessity granted by the ACC.  At the present time, AAWC provides water and wastewater service to approximately 158,000 customers (107,000 water customers and 51,000 wastewater customers).  The Commission authorized the Company's current, permanent rates and charges in Decision Nos. 72047 and 71410.

AAWC's Application describes EPCOR USA as an indirect wholly owned subsidiary of EPCOR Utilities Inc. (“EPCOR”).  EPCOR is a municipally owned Canadian corporation and holding company that builds, owns and operates water and wastewater treatment facilities and infrastructure and electrical transmission and distribution networks, in Canada. EPCOR is headquartered in Edmonton, Alberta. and is governed by an independent Board of Directors.  EPCOR's sole shareholder is the City of Edmonton, Alberta, Canada.

On Friday, March 4, 2011, RUCO filed a motion to intervene(link is external) in the proceeding.

On Monday, March 7, 2011, the Administrative Law Judge assigned to hear AAWC's request issued a Procedural Order(link is external) scheduling a procedural conference for 2:00 p.m. on Tuesday, March 22, 2011 at the Arizona Corporation Commission, 1200 W. Washington in Phoenix.

On Monday, March 28, 2011, the Administrative Law Judge assigned to the pending acquisition of Arizona-American Company ("AAWC") by EPCOR Water (USA) Inc. ("EPCOR USA") issued a Procedural Order(link is external) scheduling the evidentiary hearing in the matter for 10:00 a.m. on Tuesday, August 23, 2011, at the Arizona Corporation Commission, 1200 W. Washington in Phoenix.

On Friday, July 15, 2011, the ALJ issued a Procedural Order(link is external) that granted a request from ACC Staff and extended the filing dates for direct and rebuttal testimony.

Direct testimony from ACC Staff, RUCO and other intervenors was filed on Friday, July 22, 2011. 

On Friday, August 5, 2011, AAWC filed a response(link is external) to the direct testimony of ACC Staff, RUCO and intervenor Robert Rials.

The evidentiary hearing on the matter concluded on Tuesday, August 23, 2011.  Closing statements from the attorneys and intervenors involved in the case were taken in lieu of written closing legal briefs.

After weighing all of the evidence presented during the proceeding, including comments from concerned ratepayers, the ALJ assigned to the case issued a Recommended Opinion and Order(link is external) ("ROO") on Thursday October 13, 2011.  The ROO recommends approval of the acquisition subject to certain conditions recommended by ACC Staff and RUCO. 

During the Regular Open Meeting on Wednesday, November 9, 2011, four of the five sitting ACC Commissioners voted to adopt an amended ROO that approves the sale of AAWC to EPCOR.