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 Arizona-American Water Company, Inc. - 2002 Rate Case Filing

On December 13, 2002, Arizona-American Water Company, Inc., a wholly owned subsidiary of RWE AG, filed an application for a determination of the current fair value of its utility plant and property and for increases in its rates and charges based thereon for utility service in selected water and wastewater districts.  The requested increase in rates affects customers served by Arizona-American's water and wastewater systems located in Sun City West, Sun City, Tubac, Surprise, Anthem, Lake Havasu City and the Bullhead City area.

The nine-day evidentiary hearing on Arizona-American's proposed rate increase was concluded on December 23, 2003 at the ACC's Phoenix office (1200 W. Washington).  The evidence presented in the case was weighed by an administrative law judge, who filed her recommended opinion and order ("ROO") on the Company’s request for an increase in rates on April 26, 2004. 

A comparison of the proposed revenue increases* by the Company, RUCO and the ROO are as follows:

 

    Company   RUCO   RUCO   Recommended
    Requested   Recommended   Recommended   Opinion and Order
    Increase/Decrease   Increase (Decrease)   Increase/Decrease   Increase/Decrease
System   (%)   ($)   (%)   (%)
                 
Sun City West Water   36.13%   $545,792   16.14%   17.88%
                 
Sun City West Wastewater   45.56%   $1,079,850   30.54%   32.35%
                 
Sun City Water   70.60%   $1,572,021   25.38%   26.48%
                 
Sun City Wastewater   6.22%   ($856,821)   -16.84%   -26.94%
                 
Tubac Water District   73.32%   $50,353   19.79%   27.56%
                 
Agua Fria Water District   1.88%   ($241,111)   -3.90%   -8.73%
                 
Anthem Water   0.42%