Next week is the scheduled hearing dates for the EPCOR/Chaparral City Water Company request for a water rate increase in Fountain Hills.

The firm is seeking a 35 percent rate hike, while the Town Council is backing the Arizona Corporation Commission staff in recommending a 11.46 percent increase.

The council wanted to be an intervener in the rate case and voted in December to support a recommendation from ACC staff.

Town Manager Ken Buchanan told the council he believes the ACC staff recommendation is a good number to support. He noted if the town was to come up with its own number it would need to support that recommendation with documentation from a consultant.

The Residential Utilities Consumer Office is reportedly recommending an 18 percent increase.

The ACC has scheduled hearings to begin on Tuesday, Feb. 18. The hearings begin at 10 a.m. on Tuesday, and are set for 9:30 a.m. Feb. 19 through Feb. 21, and on Monday, Feb. 25.

The meetings will be at 1200 W. Washington St. in Phoenix.

EPCOR USA Vice President for Corporate Services Jim McKee has stated in public meetings 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 ACC 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).

McKee said they believe the rate proposal better manages and forecasts future needs and would therefore extend the period before a new rate increase is needed.

CCWC estimates that customers with a ¾-inch meter and using a monthly median of 12,000 gallons of water are paying $52.02. The new rate would increase that by $18.10.

For those with a 1-inch meter and a current monthly median usage of 16,000 gallons the comparison is $74.86 with an increase of $26.09.

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.