Arizona-American Water Company, Inc. - Anthem Water and Anthem/Agua Fria Wastewater Districts

On June 16, 2006, Arizona-American Water Company, Inc. ("Arizona-American" or "Company"), a wholly owned subsidiary of RWE AG, filed an application with the Arizona Corporation Commission ("ACC" or "Commission") requesting approval of a determination of the current fair value of the Company's utility plant and property; and for increases in rates and charges based thereon for utility service provided by Arizona-American's Anthem Water and Anthem/Agua Fria Wastewater Districts.  Arizona-American is seeking revenue increases of 66.22 percent for the Anthem water system, and 40.75 percent for both the Company's  Anthem and Agua Fria wastewater systems.

On June 27, 2006, RUCO filed a motion to intervene in the case with the ACC's Hearing Division.

The Company's application entered the sufficiency phase of the proceeding on June 16, 2006.  During that phase, ACC Staff had thirty days to determine if Arizona-American's application met the requirements of A.A.C. R-14-2-103.

On July 17, 2006 ACC Staff issued a deficiency letter informing the Company that its application did not meet the requirements of A.A.C. R-14-2-103.  

Between July 17, 2006 and September 26, 2006 the Company filed a revised application and schedules and addressed sufficiency issues raised by ACC Staff.

On September 28, 2006, ACC Staff issued a sufficiency letter informing Arizona-American that the Company's revised application met the sufficiency requirements of A.A.C. R-14-2-103 and that the Company had been classified as a Class A wastewater utility¹

On October 5, 2006, an Administrative Law Judge ("ALJ"), with the ACC's Hearing Division, issued a procedural order which established the dates for the filing of testimony and exhibits and for the evidentiary hearing on the matter that began at 10:00 a.m. on May 29, 2007 at the Commission's Phoenix office at 1200 W. Washington.

On May 8, 2007 the ALJ assigned to the case issued a procedural order that scheduled a public comment session for Thursday evening, May 24, 2007.  The public comment session gave Anthem ratepayers the opportunity to express their opinions regarding Arizona-American's proposed rate increases.  The public comment session was held at Boulder Creek High School Auditorium, 40404 North Gavilan Peak Parkway in Anthem.

Direct testimony from RUCO and a revenue requirements witness for the Anthem Community Council was filed on Tuesday, March 27, 2007.  On that same day, the ALJ assigned to the case issued a procedural order granting a three day extension for ACC Staff to file their direct testimony on March 30, 2007 and revising the filing dates for remaining testimony.

RUCO'S direct testimony made the following revenue recommendations for Arizona-American's water and wastewater operations: