The Town Council voted Dec. 19 to support a recommendation from the Arizona Corporation Commission staff regarding a rate increase proposal from Chaparral City Water Company (EPCOR).

EPCOR filed in April asking for an average rate increase of nearly 35 percent to water rates in Fountain Hills.

Town Manager Ken Buchanan said he had received word earlier last week that ACC staff evaluated the request and was making its recommendation for an increase of 11.46 percent.

Buchanan told the council that as an intervenor in the case the town needed to file its testimony by Tuesday, Dec. 24.

Council members asked whether there was an option for the town to present its own recommendation.

Buchanan said the town would need to provide supporting documentation for any position it took, but it had not hired a consultant to review the case and provide documentation.

Buchanan said he believes the ACC staff recommendation is a good number to support.

Town Attorney Andrew McGuire said it was his understanding that the Residential Utilities Consumer Office (RUCO) was recommending an 18 percent increase. That information had not been posted as of press time.

“We are asking you to weigh in with the lowest proposal without having to hire our own consultant for a separate analysis,” Buchanan said.

The council vote to support the ACC staff proposal was unanimous.

Chaparral City Water Company was acquired by EPCOR USA in 2011, and the company is currently in the process of seeking its first rate increase since that acquisition.

EPCOR USA Vice President for Corporate Services Jim McKee spoke to a handful of citizens at an open house in the fall saying that CCWC has quite a bit of “catch up” to do financially since the last rate increase went into effect in 2009. That increase was based on a “test year” of 2006.

The new rate proposal is based on 2012 costs, and McKee said much has happened during those six years, including $15 million in infrastructure improvements.

EPCOR is asking the Arizona Corporation Commission to approve rates to provide a revenue increase of $3.1 million annually.

McKee said the money is needed for operations, infrastructure, CAP costs (CCWC purchases most of its water from the Central Arizona Project).

A public hearing on the rate cased is scheduled at the ACC offices in Phoenix on Tuesday, Feb. 18. The hearing is open to the public, but a prior request must be made to speak.