COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON
PHOENIX, AZ. 85007

TO: EDITORS, NEWS DIRECTORSDATE: July 7, 1997
FOR: IMMEDIATE RELEASECONTACT: Jon Poston, (602) 542-0843


LAZY B GETS FUNDING TO MEET HEALTH CONCERNS

Arizona Corporation Commissioners have approved a $6,000 a year rate increase for Lazy B Water Company. The funds will be used to assure that water from the system is safe. The rate increase is subject to refund to customers if various safety standards are not met.

The small (24 customers) company near Tucson has been the subject of a series of commission actions in the last ten days because water from the system failed to meet health department guidelines. Just yesterday, the commission authorized hiring of a temporary operator for Lazy B Water because the owner is in jail facing numerous felony counts, and is unable to operate the system. System owner Myron Weinberg, also known as John Baker, is already under a Superior Court restraining order obtained by the commission that requires him to charge the rates set by the commission.

Commission Chairman Carl Kunasek said "We are simply not going to tolerate a situation in which a company owner abuses his customers verbally, and then through his failure to conduct proper tests, endangers customers' health".

The decision increases the basic service charge from $25 to $30 a month, and the charge for each 1,000 gallons of water from $2.00 to $3.90. The average bill would go from $44.50 to $68.20, an increase of $23.61 (52%) for usage of 9,795 gallons per month. The rate increase is effective with the next billing cycle.