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EPCOR WATER ARIZONA, INC.

On March 10, 2014, EPCOR Water Arizona, Inc. filed a rate case application for the following districts - Mohave Water District, Paradise Valley Water District, Sun City Water District, Tubac Water District and Mohave Wastewater District.  The following provides a summary of what the Company is requesting for each district in Arizona Corporation Commission Docket No. WS-01303A-14-0010.

Mohave Water District

The Company-proposed rates, as filed, produce total operating revenue of $8,338,166, an increase of $1,983,872 or 31.22 percent, over adjusted test year revenue of $6,354,293.  The Company-proposed revenue will provide operating income of $1,629,005 and a 6.87 percent rate of return on its proposed $23,711,859 fair value rate base ("FVRB") which is its original cost rate base ("OCRB").

The Company-proposed rates would increase the monthly bill for a typical 5/8 x 3/4-inch meter residential customer, with an average usage of 6,800 gallons, by $9.06 or 43.92 percent, from $20.63 to $29.69.

Paradise Valley Water District

The Company-proposed rates, as filed, produce total operating revenue of $10,599,026, an increase of $950,744 or 9.85 percent, over adjusted test year revenue of $9,648,251.  The Company-proposed revenue will provide operating income of $2,755,072 and a 6.87 percent rate of return on its proposed $40,102,943 fair value rate base ("FVRB") which is its original cost rate base ("OCRB").

The Company-proposed rates would increase the monthly bill for a typical 5/8 x 3/4-inch meter residential customer, with an average usage of 19,271 gallons, by $5.06 or 9.68 percent, from $52.30 to $57.36.

Sun City Water District

The Company-proposed rates, as filed, produce total operating revenue of $11,912,007, an increase of $1,646,454 or 16.04 percent, over adjusted test year revenue of $10,265,553.  The Company-proposed revenue will provide operating income of $1,777,069 and a 6.87 percent rate of return on its proposed $25,867,081 fair value rate base ("FVRB") which is its original cost rate base ("OCRB").

The Company-proposed rates would increase the monthly bill for a typical 5/8 x 3/4-inch meter residential customer, with an average usage of 7,203 gallons, by $3.82 or 22.00 percent, from $17.35 to $21.17.

Tubac Water District

The Company-proposed rates, as filed, produce total operating revenue of $989,194, an increase of $410,000 or 70.79 percent, over adjusted test year revenue of $579,194.  The Company-proposed revenue will provide operating income of $111,474 and a 6.87 percent rate of return on its proposed $1,622,613 fair value rate base ("FVRB") which is its original cost rate base ("OCRB").

The Company-proposed rates would increase the monthly bill for a typical 5/8 x 3/4-inch meter residential customer, with an average usage of 8,348 gallons, by $48.19 or 89.95 percent, from $53.57 to $101.76.

Mohave Wastewater District

The Company-proposed rates, as filed, produce total operating revenue of $1,523,646, an increase of $467,806 or 44.31 percent, over adjusted test year revenue of $1,055,839.  The Company-proposed revenue will provide operating income of $360,739 and a 6.87 percent rate of return on its proposed $5,250,928 fair value rate base ("FVRB") which is its original cost rate base ("OCRB").

The Company-proposed rates would increase the monthly bill for a typical residential customer, by $26.24 or 46.40 percent, from $56.55 to $82.79.

In addition, the Company has asked for the following pro-forma/adjustors, and two new adjustors:

Post Test Year Plant totaling more than $15 million

Declining Usage

24 Month Deferral of AFUDC and Depreciation Expense

Projected Tank Maintenance Expenses

Central Arizona Project Adjustor

New adjustors proposed in this case:

Purchased Power Adjustor

Employee Health Care Cost Adjustor

 

 

PDF icon EPCOR Water Seeking Rate Increase for Mohave and Havasu District
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