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To: Editors, News Directors |
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For: Immediate Release |
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Local Meeting on
Rio Rico
Utilities Rate Hike |
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PHOENIX – In June 2003, Rio Rico Utilities filed an application to raise water and wastewater rates for its 4,200 water customers and 1,500 wastewater customers in Santa Cruz County. The Residential Utility Consumer Office (RUCO) filed to become an official party to the case to represent the interests of residential ratepayers. An administrative law judge held a hearing on the case in Tucson on June 3, 2004. The judge prepared a written recommendation, which was presented for a decision by the Commissioners on August 31, 2004. |
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To ensure that Rio Rico customers are aware of the potential impact of this case, the Commissioners have scheduled a public comment session in Rio Rico. The session will be: |
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September 21, 2004 from 5:00 to 7:00 PM Rio Rico Community Center 391 Avenida Coatimundi Rio Rico, Arizona 85648 |
| As the Commissioners prepared to vote at the August 31 meeting, two separate issues came to light. The first issue centered on the company’s notice to the community about the size of the potential rate hike and the level of awareness among Rio Rico Utilities’ customers. No customers had appeared at the June hearing in Tucson to offer public comment or input. The second issue centered on whether the RUCO and Rio Rico Utilities could resolve disputes over specific line items included in the wastewater rate base and the actual rate calculations. The Commissioners directed the parties to the case to work together to see if the disputed issues could be resolved to the satisfaction of all parties. |
| The company contends that it has invested a significant amount of money in building a reliable water and wastewater treatment plant to serve its customers. It also contends that the costs of treating wastewater have risen significantly in recent years due to more stringent environmental and public health rules. |
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Wastewater Rates |
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Because of the size of the wastewater increase, the company proposed phasing it in over a three year period. The judge agreed with the three-year phase in but came to a different conclusion on the actual rates. The example below shows the total rate impact for a typical customer with a 5/8” line. |
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Currently, a typical 5/8” meter customer pays $26.00 for wastewater service. Rio Rico Utilities originally proposed to take the typical customer’s rates up to $60.84, phased in over three years reflecting a total increase of 134 percent. The judge recommended an increase from $26.00 to $38.86 or 40 percent for the first year. Then rates would go from $38.86 to $51.92 in year two, representing a 33.1 percent increase over year one. The final increase would take effect in year three going from $51.92 to 58.40 for an increase of 14.4 percent. |
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Water Rates |
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Rio Rico Utilities originally proposed an increase to an average residential water customer with a 5/8” meter from the current rate of $17.61 to a new rate of $22.63 or an increase of $5.03 or 28.54 percent. The judge recommends an increase of $4.67 or 26.5 percent based on evidence reviewed in the case. This would take the current average residential water bill from $17.61 to 22.28. |
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The last time rates changed for water or wastewater was in March 1996. |
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About Public Comment Sessions |
| Public comment sessions are formal proceedings and all comments will be recorded or transcribed by a court reporter. The Commissioners may limit the duration of each individual’s comments to allow everyone a fair opportunity to speak. |
| If you cannot attend in person, the Commission encourages the timely submission of written comments by mail or e-mail before the end of the day on September 24, 2004. Submit comments to the Docket Control Center and they will be shared with the Commissioners. Be sure to reference the appropriate docket number for this case. |
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WS-02676A-03-0434 - Rio Rico Utilities
Arizona
Corporation Commission |
| You may also comment through the Commission’s “Can We Help You” page on the Utilities Division website. Be sure to include the docket number listed above. For instructions on filing electronic public comment, click on http://www.cc.state.az.us/utility/cons/index.htm. |
