EPCOR - AGUA FRIA WASTEWATER

Approximately 3,500 customer complaints and petitions were filed with the Arizona Corporation Commission ("ACC") concerning EPCOR's Agua Fria rates and charges for water and wastewater services.  The customers' complaints regarding the water and wastewater rates in Corte Bella, Cross River, Dos Rio and Coldwater Ranch relate primarily to the combined impacts of two rate cases filed with the Commission in July 2009 and November 2010.  As a result of the numerous complaints, the Company was to respond to the ACC with a preliminary analysis of wastewater rate design under three scenarios: (1) Full consolidation of the Company's five wastewater districts; (2) Full deconsolidation, or separating the Agua Fria district into several smaller districts; and (3) Re-consolidation of the Company's Anthem and Agua Fria districts.  The Company in its response is advocating full consolidation of its five wastewater systems and has graphically displayed the residential ratepayer bill comparison effects on many of its locations involved in this case.  (Please click on the link below to view the Wastewater Residential Bill Comparison Chart)