The Town Council Thursday will hear a report from the Residential Utility Consumer Office about its continuing concerns over the rate increased granted to Chaparral City Water Company.
Town …
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The Town Council Thursday will hear a report from the Residential Utility Consumer Office about its continuing concerns over the rate increased granted to Chaparral City Water Company.
Town Manager Ken Buchanan said he is asking the council for direction as to whether to continue to follow RUCO’s lead in pursuing the case.
“We should proceed where feasible,” Buchanan said. He added that as of press time he had not seen the presentation RUCO will make Thursday so he did not have further comment.
In July RUCO filed an application to rehear an Arizona Corporation Commission decision granting a rate increase to CCWC and its parent company, EPCOR, for its operations in Fountain Hills.
At a July 22 meeting Corporation Commissioner Brenda Burns moved to have the rate decision reconsidered.
She stated she was basing her motion on CCWC’s 85 percent equity capital, which she feels is high. Burns’ motion was defeated on a 3-2 vote.
In June the ACC had granted CCWC an increase of approximately 18 percent in its water rates.
RUCO states the rate decision gives little or no consideration to ratepayers.
“In RUCO’s view it is a decision which favors the shareholders at the expense of the ratepayers,” the application states.
With the ACC rejection of the request for rehearing, an option RUCO and the town would have is to ask an appeals court to hear the case. That has not been decided.
RUCO cites examples of what it considers the commission’s effort to “decide this case in the interests of the company.”
Attorneys for the town followed RUCO’s lead by filing their own application for a rehearing. That application states, “The town believes the commission’s decision disproportionately favors CCWC’s interest in earning a profit over the customers’ interest in affordable utility service.”
The town stated its application is based on the arguments presented by RUCO.
The council meets for its regular session Thursday, Aug. 7. The meeting begins at 6:30 p.m. in council chambers at Town Hall and is open to the public.
For more on this story see the Aug. 6 edition of The Times.
