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“I hope you find our site to be a helpful source of information on the work that RUCO is doing to protect the interests of residential electric, natural gas, telephone, water and wastewater utility ratepayers."

- Stephen Ahearn

Director, Residential Utility Consumer

Office

HOT TOPICS

Updated Tuesday, April 1, 2008

GOLD CANYON SEWER REHEARING

The third day of the Gold Canyon Sewer Company rehearing was held on Monday, March 31, 2008 at the Commission's Phoenix office at 1200 W. Washington. During day 3 RUCO's attorney cross examined witnesses for ACC Staff who testified on the hypothetical capital structure, rate case expense and excess capacity issues that are the subject of the proceeding. ACC Staff witnesses were also cross examined by Gold Canyon's attorney, ALJ Dwight Nodes, ACC Chairman Mike Gleason, Commissioner Kris Mayes and Commissioner Gary Pierce. The rehearing was recessed around 12:30 p.m. RUCO's policy witness was unable to testify as scheduled due to an unexpected illness. No definite date was set for the final day of the rehearing. On Tuesday, April 1, 2008, rehearing supplemental testimony on the hypothetical capital structure issue was filed by RUCO. Attorney's for the parties to the case decided that no additional days of hearing would be needed. Opening briefs will be due on April 29, 2008. Reply briefs will be due on May 13, 2008. RUCO agreed to withdraw its supplemental testimony on the hypothetical capital structure issue in the case but gave judicial notice of the 2006 Algonquin Power Income Fund Annual Report that was contained in the testimony.

Click here to read RUCO's written rehearing testimony and legal briefs that were filed with the ACC.

Click here to read the background on the Gold Canyon Sewer Company rehearing and for updated information on the proceeding.

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SOUTHWEST GAS CORPORATION RATE CASE

On August 31, 2007, Southwest Gas Corporation, or SWG (the largest provider of natural gas in the state), filed an application with the Arizona Corporation Commission (ACC) requesting a revenue increase of $50.2 million. According to SWG's application, the proposed increase would raise the current average monthly residential bill of $50.95 by $3.59 per month or approximately 7.05 percent. SWG is also seeking approval of a Revenue Decoupling Adjustment Provision ("RDAP") mechanism that will allow the Company to recover lost revenues, attributed to customer conservation, through SWG's rates.

On Friday, March 28, 2008, RUCO filed its direct testimony which presents the agency's recommendations on SWG's request for a rate increase.

Click here to read RUCO's written testimony that was filed with the ACC.

Click here to read the background on SWG's filing and for updated information on the proceeding.

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ARIZONA-AMERICAN WATER COMPANY

ANTHEM WATER AND ANTHEM/AGUA FRIA WASTEWATER RATE CASE

On March 13, 2008, RUCO filed a motion to reopen the record and schedule a hearing for the limited purpose of taking additional testimony to supplement the record concerning the appropriate allocation of the remaining portion of the North West Valley Treatment Facility to the Anthem/Agua Fria District. Click here to read RUCO's motion and responses on the motion from Arizona-American, ACC Staff and the Anthem Community Council. Oral arguments were heard on RUCO's motion for hearing at 10:00 a.m. on Friday, March 28, 2008 at the Commission's Phoenix offices at 1200 W. Washington. A procedural order is expected soon.

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TUCSON ELECTRIC POWER RATE CASE

On July 2, 2007, Tucson Electric Power Company or TEP (the second largest investor owned electric utility in the state), filed an application with the Arizona Corporation Commission (ACC) requesting rate relief under one of three different company-proposed methods: a market method; which would result in a 21.9 percent increase over current rates, a traditional cost-of-service method; that would increase current rates by approximately 23.0 percent, and a hybrid method; which would result in an increase of 14.9 percent over TEP's current rates.

On Friday, February 29, 2008, RUCO filed its direct testimony which presents the agency's recommendations on TEP's request for a rate increase.

On Wednesday, April 23, 2008, the attorney representing TEP filed a letter with the ACC stating that TEP and ACC Staff had reached an agreement in principle and that TEP and ACC Staff were in the process of preparing a written agreement that will memorialize the terms of the settlement.

Click here to read a statement from RUCO Director Stephen Ahearn on on TEP's request for a rate increase.

Click here to read a user's guide on RUCO's filing in the TEP rate case. You can also see a typical bill analysis and read RUCO's written testimony that was filed with the ACC.

Click here to read the background on TEP's filing and for updated information on the proceeding.

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APS RATE CASE

On June 19, 2007, the Arizona Corporation Commission granted a 6.80 percent increase in rates for Arizona Public Service Company. The ACC's decision comes after granting a rate increase of approximately 8.00 percent during the company's' 2006 emergency rate increase proceeding. APS, the state's largest investor owned electric utility, originally filed for a $449.6 million, or a or a 21.1 percent increase on average, in the company's base rates.

Click on the photo above to read testimony and legal briefs that were filed by RUCO during the APS rate case proceeding.

Click here to read the ACC's final decision on APS' request for increased rates.

Click here to read the background on APS' filing and for information on the proceeding.

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RUCO STAFF TOURS RECENTLY COMPLETED

ARSENIC REMOVAL FACILITIES

FOR PARADISE VALLEY

Click here to see more photos of RUCO's tour of newly constructed arsenic removal facilities serving Arizona-American Water Company's Paradise Valley District.

Click here to see photos of arsenic removal facilities serving Arizona-American Water Company's Agua Fria District.

RUCO's offices are located on the second floor (Suite 220) of the Arizona Department of Environmental Quality building at 1110 W. Washington in Phoenix.