To: Editors, News Directors

Date: May 18, 2004

For: Immediate Release

Arizona-American Rate Case Meetings Announced
Commissioners Schedule Public Comment for June 15

PHOENIX – In preparation for a final decision on the Arizona-American Water and Wastewater rate case, the Arizona Corporation Commission has designated Tuesday, June 15 for a final round of public comment, starting at 2:00 PM. The other meetings are for discussion and deliberation by the Commissioners and the intervenors in the case. The schedule is:

Tuesday, June 15 at 2:00 PM – Public Comment on the Arizona-American Rate Case. The Commission will be using its largest hearing room but space may be limited. Large groups may wish to choose a spokesperson to represent their group at the meeting. The Commissioners reserve the right to limit public comment to three minutes per person to allow everyone a fair opportunity to speak. Prepared or written statements can also be entered into the record.

Wednesday, June 16 from 10:00 to noon – Oral Argument and discussion by Commissioners and intervenors in the Arizona-American Rate Case. This meeting is limited to two hours because the Commissioners have to depart Phoenix for an out-of-town public comment session related to another case.

Friday, June 18, 2004 at 9:00 AM – Final deliberations, discussion of any amendments and vote.

An administrative law judge presided over a courtroom-style hearing that lasted for nine days. The judge issued a 74-page Recommended Opinion and Order. It contains recommendations of a combination of increases and decreases, based upon the costs to install, maintain and operate each of the separate water and wastewater systems. The Commissioners can accept, change or deny the recommendation of the administrative law judge. An Adobe Acrobat (.pdf) version of the recommendation is available under Hot Topics on the Arizona Corporation Commission website (www.cc.state.az.us).

Arizona-American acquired the water and wastewater systems formerly owned by Citizens Water Resources in January 2002. The firm operates water and wastewater systems in the Anthem community north of Phoenix, Sun City, Sun City West and Surprise. The company also serves portions of Bullhead City, Lake Havasu City and Tubac, Arizona. In November 2003, the Commissioners traveled to six locations around the state to take public comment from residents and interested consumer groups.

This is the first rate case filed by Arizona-American Water Company and some systems have not had any rate changes since the early 1990s. The company contends that the costs of maintaining, operating and testing its water system to provide safe, reliable drinking water have increased and it sought Commission approval to raise rates.

Live audio of Arizona Corporation Commission meetings is available through the listen line at 602-542-0222.

Summary of Areas & Customers Served

Sub-system

Last Rate Change

# of Customers

Agua Fria Water (Surprise & vicinity)

May 1997

14,300

Anthem/Agua Fria Water

June 1998

4,400

Anthem/Agua Fria Wastewater

June 1998

4,300

Sun City Water

May 1997

22,000

Sun City Wastewater

May 1997

21,200

Sun City West Water

May 1997

15,300

Sun City West Wastewater

May 1997

14,900

Mohave Water

January 1992

13,600

Havasu Water

February 1990

1,200