Chaparral City Water Company - 2007 Rate Case - Rehearing

Status
Prior
Docket Number
W-02113A-07-0551
Assigned Staff
W. Rigsby
M. Wood

On September 27, 2007 Chaparral City Water Company ("Chaparral" or "Company") filed an application for a permanent rate increase with the Arizona Corporation Commission ("ACC" or "Commission").

At an Open Meeting held on Thursday, October 8, 2009, four of the five ACC Commissioners passed an amended ROO which adopted RUCO's recommendations to provide Chaparral's ratepayers with 100 percent of the Fountain Hills Sanitary District settlement proceeds, and to deny the Company recovery of legal fees associated with an appeal of Decision No. 68176.

On Thursday, October 29, 2009 the ACC issued Decision No. 71308(link is external) which established interim rates for Chaparral pending an ACC Staff report on a California Public Utilities Commission ("CPUC") investigation that could impact the Company's rates.

On Tuesday, December 8, 2009, the Commission issued Decision No. 71424(link is external) which corrected errors in the previous order to insure that the Company's rate design generated Chaparral's authorized level of revenue.

In response to a motion for rehearing filed by Chaparral, The Commission voted to rehear the issues related to the ratemaking treatment of the Fountain Hills Sanitary District settlement proceeds and the recovery of legal fees associated with the Company's appeal of Decision No. 68176.

A procedural conference was convened on Wednesday, January 27, 2010 for the purpose of discussing a procedural schedule for the rehearing.

On Tuesday, February 9, 2010, the Administrative Law Judge ("ALJ") assigned to rehear the Chaparral rate case issued a procedural order(link is external) that scheduled an evidentiary hearing on the matter.

On Thursday, March 4, 2010, the ALJ assigned to the case issued another procedural order(link is external) that continues the evidentiary hearing on the matter for 10:00 a.m. on Monday, April 12, 2010 at 1200 W. Washington in Phoenix.

On Wednesday, March 31, 2010 the ALJ assigned to the case issued a recommended opinion and order(link is external) which recommended that the interim rates be made permanent based on ACC Staff's report(link is external) on its review of the CPUC investigation.

Direct testimony was filed by RUCO on Monday, April 5, 2010.

The evidentiary hearing was concluded on Monday, April 12, 2010. Attorneys for the parties to the case cross examined expert witnesses and presented their positions on the two issues being reheard.

late filed accounting exhibit(link is external), showing various required revenue scenarios requested by the ALJ, was filed by ACC Staff on Wednesday, May 12, 2010. Initial closing legal briefs were filed on Monday, May 24, 2010. Reply legal briefs were filed on Tuesday, June 22, 2010.

On Friday, February 11, 2011, the ALJ assigned to the case issued a Recommended Opinion and Order(link is external) ("ROO") recommending that the ACC adopt Chaparral's positions on the ratemaking treatment of Fountain Hills Sanitary District settlement proceeds and the recovery of legal fees associated with the appeal of Decision No. 68176.

RUCO filed exceptions(link is external) to the ROO on Tuesday, February 22, 2011.

During the Regular Open Meeting held on Tuesday, March 1, 2011, the five ACC Commissioners agreed to postpone their vote on the matter until more information could by obtained from the parties to the case.

On Tuesday, March 8, 2011, Commissioner Brenda Burns filed a letter(link is external) in the docket asking a number of questions related to the rehearing issues.

On Wednesday, March 23, 2011, RUCO filed its responses to Commissioner Burns' letter dated March 8, 2011.

During the Regular Open Meeting held on Wednesday, March 30, 2011, the five sitting ACC Commissioners voted to increase rates for Chaparral City Water Company customers by adopting the recommendations contained in the ALJ's ROO.