The Town of Fountain Hills will take an active role in monitoring and participating in the public hearing process related to EPCOR Water’s rate case currently before the Arizona Corporation Commission (ACC).

Town Manager Grady Miller told the town council at its May 1 session he has asked the town’s attorney to provide a statement and observe the public hearing process scheduled to begin next week.

The town did not file as an intervenor in the case. Miller said the town is relying on RUCO (Residential Utility Consumer Office) to evaluate the case and provide input to the hearing officer as well as the commissioners.

EPCOR Water is presenting, at the ACC’s direction, a proposal to consolidate its companies with new rates. EPCOR operates 11 separate water companies in Arizona and would like to bring them under one rate.

EPCOR’s application was submitted to the ACC in August 2017 based on the test year of 2016. The company is asking for an overall revenue increase of $21.5 million or approximately 19.7 percent over its 2016 revenues of $109,293,646.

For the Fountain Hills’ Chaparral District of EPCOR the request translates to an additional $3,136,716 in revenue, or a 28.7 percent increase.

The ACC ordered EPCOR to submit its new rate application by July of 2018 and stipulated that consolidation should be included as an option for review. The last rate review for Fountain Hills was completed in 2014, which was based on 2012 data.

The 11 companies operated by EPCOR range in size from 600 connections at Tubac to 45,000 for the Agua Fria district in the West Valley. The Chaparral District that includes Fountain Hills has 14,000 connections. If consolidation is approved it would create a single utility with 140,000 customers.

The rate structure is proposed to be phased in over five years. After an initial proposed increase to a base rate of $54.41 for Fountain Hills customers, the rates should decline over the next four years, according to projections. At the end of the five years all EPCOR customers, no matter where they are in the state, will pay the same base rate, expected to be about $45.

EPCOR is asking to continue its System Improvement Benefits (SIB) surcharge. This is used to recover costs on investment made between rate cases. It includes improvements to water mains, service lines, valves, hydrants and meters. With consolidation the estimated SIB surcharge would be $1.83 in year five. That would be in addition to the $45 base rate.

Also, as long as EPCOR is using the SIB, the ACC has ordered it to reapply for rate review every five years.

The ACC has scheduled a public hearing on the rate and consolidation application for Monday, May 14, at the ACC offices in Phoenix, 1200 W. Washington. Public comment will be heard on day one of the hearing. The meeting is set for 10 a.m. in Hearing Room 1.

Written comments from the public may be submitted to the commission by letter and referencing docket number WS-01303A-17-0257. The address for mailing is Arizona Corporation Commission, Consumer Services Section, 1200 W. Washington St., Phoenix, AZ 85007.

Comments can be submitted via the website at azcc.gov by following the “I want to” and “submit a public comment” prompts.

Copies of the application are available for review at the EPCOR Chaparral District office, 12021 Panorama Drive during business hours, or by visiting the ACC website, azcc.gov.