COMMISSION NEWS

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

TO: EDITORS, NEWS DIRECTORS

DATE: September 25, 1997

FOR: IMMEDIATE RELEASE

CONTACT: Jon Poston, (602) 542-0843
Kevin Mosley, (602) 542-7269



FAR WEST WATER ORDERED TO SEEK SOLUTIONS TO QUALITY PROBLEMS

The Arizona Corporation Commission has ordered Far West Water Company to seek solutions to water quality problems caused by the high mineral content of water characteristic of the Yuma Valley. The company was directed to work with staff to communicate the options to customers, including the costs, and the impact on rates.

Commissioner Jim Irvin said, "This rate increase was declared interim and subject to refund to meet customer concerns about the quality of service. Whether the company retains the increase depends on verification of company claims of system improvements."

Commissioner Irvin, attending the April 1st customer public comment meeting in Yuma, suggested that the company needed to work toward improving its system and customer service.

The Commission also authorized the first changes in Far West Water Company rates in approximately 20 years. Here is a comparison:

 

Present Rates

Company Proposed

Approved

5/8 x 3/4" meter

$7.50

$7.50

$6.00

Gallons in minimum

5,000

1,000

1,000

Additional water Per 1,000 gallons

$0.75

$0.955

$0.75


The current median bill is for 6,500 gallons a month at a cost of $8.63. The commission decision increases the median bill to $10.13 a month. The decision is effective immediately.
Far West spent $1.5 million on improvements to water service between January, 1996 and April, 1997. Far West Water sought $446,000 in additional revenue. The Commission authorized a revenue increase of $85,000.
The commission also approved a flat fee for re-establishment of service within 12 months, and a temporary turn off fee, in view of the relatively large number of customers who leave the service area during the summer months. Customer counts showed 5,791 bills in August and 8,250 bills in February.