Chaparral City Water Company Reorganization

Docket Number
Assigned Staff
W. Rigsby
M. Wood


Case Information:


On Friday, July 23, 2010 Chaparral City Water Company ("Chaparral" 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 Chaparral's parent, American States Water Company ("American States"), and EPCOR Water (USA) Inc. ("EPCOR USA") under which American States will sell all of its issued and outstanding shares of common stock to EPCOR USA ("Application").

According to the Company’s Application, American States has decided to divest itself of its ownership and stock interests in Chaparral, and to focus on its business activities in California and in states other than Arizona.

Chaparral provides water service to approximately 13,500 customers in portions of eastern Maricopa County including the Town of Fountain Hills.

On Thursday, August 12, 2010, EPCOR USA filed a motion to intervene(link is external) which was granted by the ACC's hearing Division on Monday, August 23, 2010.

On Tuesday, August 24, RUCO filed a motion to intervene(link is external) in the proceeding. RUCO's motion was granted on Wednesday, September 8, 2010 by the ACC's Hearing Division.

On Thursday, September 23, 2010, a procedural conference was held to give the parties to the case an opportunity to propose a procedural schedule for filing written testimony and conducting a hearing.

On Friday , September 24, 2010 the Administrative Law Judge ("ALJ") assigned to hear the case issued a Procedural Order(link is external) which scheduled the evidentiary hearing on the matter for 10:00 a.m. on Thursday, December 9, 2010 at the Arizona Corporation Commission's offices at 1200 W. Washington in Phoenix.

On Wednesday, November 10, 2010, RUCO filed direct testimony recommending that the ACC approve the sale subject to two conditions that relate to the recovery of possible acquisition costs or an acquisition adjustment or premium.

On Wednesday, November 24, 2010, Chaparral and EPCOR USA filed a joint response to ACC Staff and RUCO's direct testimony in lieu of rebuttal testimony (which was originally scheduled to be filed on Wednesday, December 1, 2010).

The evidentiary hearing on the proposed reorganization was held on December 9, 2010 at the Arizona Corporation Commission's offices at 1200 W. Washington in Phoenix.

Closing statements from the attorneys representing the parties to the case were heard by the Administrative law Judge at the end of the hearing.

After weighing the evidence presented in the proceeding, the ALJ issued her Recommended Opinion and Order(link is external) ("ROO") on Monday, March 14, 2011, recommending that the reorganization be approved.

During the Regular Open Meeting held on Wednesday, March 30, 2011, the five sitting Commissioners approved the sale of Chaparral to EPCOR USA by a vote of 5-0. The final decision on the matter adopts RUCO's recommendations regarding the sale.