Arizona-American Water Company, Inc. - Sun City & Sun City West Wastewater Districts Rate Case

On July 28, 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 Sun City & Sun City West Wastewater Districts.  Arizona-American is seeking revenue increases of $1,606,495, or 35.84 percent in Sun City and $2,337,050, or 51.49 percent for Sun City West.  The Company is seeking an 11.75 percent return on common equity and an overall rate of return of 8.33 percent.   

On August 18, 2006, RUCO filed a motion to intervene in the case with the ACC's Hearing Division.

On August 28, 2006, ACC Staff issued a letter of conditional sufficiency informing the Company that its application conditionally meets the filing requirements of A.A.C. R14-2-103 subject to the filing of certain required billing information by ACC Staff.

On October 5, 2006, the Administrative Law Judge ("ALJ") assigned to the case issued a procedural order that originally set the filing dates for written testimony and the evidentiary hearing on Arizona-American's request for an increase in rates.

On October 30, 2006, the ALJ issued a second procedural order which suspended the timeclock in the proceeding until the Company provided ACC Staff with required volumetric billing determinants that will be used to develop a rate design for the Company.  On February 15, 2007 the ALJ issued a revised procedural order, that established a new evidentiary hearing date and new filing deadlines for written testimony.

On May 7, 2007 the ALJ assigned to the case issued a procedural order which scheduled two public comment sessions for Wednesday, May 16, 2007.  The public comment sessions gave Sun City and Sun City West ratepayers the opportunity to express their opinions regarding Arizona-American's proposed rate increases.  The first public comment session was held at 10:30 a.m. at the Fairway Recreation Center Auditorium, 10600 West Peoria Avenue in Sun City.  The second public comment session was held at 2:00 p.m. at the Palm Ridge Recreation Center, Summit Room, Hall A, 13800 West Deer Valley Drive, Sun City West.

On Wednesday, June 13, 2007 RUCO filed its direct testimony making the following recommendations:

    DIRECT TESTIMONY REVENUE REQUIREMENTS - SUN CITY WASTEWATER