Black
Mountain Sewer Corporation - Rate Case Filing
On September 16,
2005, Black Mountain Sewer Corporation (“BMSC” or “Company”)
filed an application with the Arizona Corporation Commission (“ACC”
or “Commission”) seeking rate relief in the amount of $163,279,
which represents a
13.52 percent increase over operating revenues of $1,207,740
recorded during the test year ended December 31, 2004 (“Test Year”).
RUCO filed a
request to intervene in the case with the ACC’s Hearing Division
on September 26, 2005. On October 7, 2005, the Hearing
Division issued a
notification granting RUCO's request.
On October 14,
2005, ACC Staff issued a
deficiency letter informing
BMSC that the Company's application failed to meet the
sufficiency requirements of A.A.C. R-14-2-103 (because the
application did not contain a cost of service study) and that ACC
Staff would file a motion seeking administrative closure in the
matter if the Company did not correct the deficiency or make other
arrangements to remedy the situation by October 31, 2005.
On October 25,
2005, BMSC and ACC Staff filed a
stipulation informing the
Hearing Division that the parties had reached an agreement to issue
a letter of sufficiency on condition that the Company provide
specific information to ACC Staff within sixty days of a procedural
order approving the stipulation. Both BMSC and ACC
Staff also agreed that the rate case would be suspended in the event
that the requested information was not provided to ACC Staff during
the sixty-day period.
On October 27,
2005 the administrative law judge ("ALJ") assigned to the case
issued a
procedural order that refused
to grant approval of the agreement contained in the stipulation.
On November 1,
2005, ACC Staff docketed a
sufficiency letter informing
BMSC that the Company's application met the sufficiency
requirements of A.A.C. R-14-2-103 and that the Company had been
classified as a Class B wastewater utility1.
On November 2,
2005, the ALJ assigned to the case issued a
procedural order that will
govern the proceeding. The evidentiary hearing in the matter
has been scheduled for Wednesday, June 7, 2006.
During the
discovery phase of the proceeding, RUCO’s staff issued data
requests to obtain further information on BMSC's
application and conducted a full audit and cost of capital analysis.
ACC Staff
RUCO
and
the
Town
of
Carefree, filed direct
testimony and exhibits on Thursday, March 9, 2006. RUCO is recommending the
following:
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LINE
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COMPANY
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RUCO
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NO.
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DESCRIPTION
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REQUESTED
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RECOMMENDED
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1
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ADJUSTED RATE BASE
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$
887,449
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$
1,372,834
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2
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ADJUSTED OPERATING INCOME
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$
(14,233)
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$
125,730
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RUCO 
