Arizona Water Company - Request for Verde Valley Step-2 ACRM Surcharge

Case Information:

On Friday, June 22, 2012, Arizona Water Company ("AWC" or "Company") filed anapplication(link is external) ("Application") with the Arizona Corporation Commission ("ACC" or "Commission") seeking authority to implement a Step-2 Arsenic Cost Recovery Mechanism surcharge for its consolidated Verde Valley system pursuant to Decision No. 71845, dated August 25, 2010.

On Friday, July 20, 2012, AWC was informed in a letter(link is external) issued by ACC Staff that the Company's request was in conflict with the Commission’s finding in Decision No. 72375 and that AWC is again requesting to apply the ACRM surcharge to each of the three water systems that comprise the Verde Valley system.  Staff stated that the Application, as filed, does not contain the Sedona-specific information necessary for processing consistent with Decision No. 72375.  Accordingly, Staff advised the Company to file an amended application which provides the appropriate filing requirements to support development of a Sedona system only Step-two ACRM surcharge.

On Friday, January 18, 2013, ACC Staff filed its Staff Report and Proposed Order(link is external) which approved a Step-two ACRM surcharge for Sedona but denied AWC's request for a Step-one ACRM surcharge for its Verde Valley Rimrock system.

On Wednesday, January 23, 2013, ACC Staff filed a notice of errata(link is external) that corrected an error in its Staff Report and Proposed Order.

On Tuesday, January 29, 2013 RUCO filed comments(link is external) in support of ACC Staff's Proposed Order.

During the Regular Open Meeting held on Wednesday, January 30, 2013, the five sitting Commissioners voted to adopt ACC Staff's Proposed Order that denied Arizona Water Company's request for a Step-one ACRM surcharge for its Verde Valley Rimrock system. The Commission approved a Step-two ACRM surcharge for the company's Sedona system.