Doug Little
Commissioner
Boyd Dunn
Commissioner
Tom Forese
Chairman
Andy Tobin
Commissioner
Bob Burns
Commissioner

 

 

         

Utilities Division

Commission Rules on Sewer

All sewer companies that fall within the jurisdiction of the Arizona Corporation Commission must abide by the rules and regulations of Title 14, Article 6 of the Arizona Administrative Code.
Title 14, Article 6 of the Arizona Administrative Code covers most of the sewer industry rules and regulations. For your convenience, we have copied all of Title 14, Article 6 below.
R14-2-601. Definitions
In this Article, unless the context otherwise requires, the following definitions shall apply:
1. "Advance in aid of construction". Funds provided to the utility by the applicant under the terms of a collection main extension agreement the value of which may be refundable.
2. "Applicant". A person requesting the utility to supply sewer service.
3. "Application". A request to the utility for sewer service, as distinguished from an inquiry as to the availability or charges for such service.
4. "Arizona Corporation Commission". The regulatory authority of the state of Arizona having jurisdiction over public service corporations operating in Arizona.
5. "Billing month". The period between any 2 regular billings -- approximately 30 day interval.
6. "Billing period". The time interval between 2 consecutive billings.
7. "Collection main". A sewer main of the utility from which service collection lines are extended to customers.
8. "Commodity charge". The unit of cost per billed discharge as set forth in the utility's tariffs.
9. "Contributions in aid of construction". Funds provided to the utility by the applicant under the terms of a collection main extension agreement and/or service connection tariff the value of which are not refundable.
10. "Customer". The person or entity in whose name service is rendered, as evidenced by the signature on the application or contract for that service, or by the receipt and/or payment of bills regularly issued in his name regardless of the identity of the actual user of the service.
11. "Customer charge". The amount the customer must pay the utility for the availability of sewer service, excluding any amount of discharged, as specified in the utility's tariffs.
12. "Day". Calendar day.
13. "Minimum charge". The amount the customer must pay for the availability of sewer service, including an amount of discharge, as specified in the utility's tariffs.
14. "Permanent customer". A customer who is a tenant or owner of a service location who applies for and receives sewer service.
15. "Permanent service". Service which, in the opinion of the utility, is of a permanent and established character. The use of sewer service may be continuous, intermittent, or seasonal in nature.
16. "Person". Any individual, partnership, corporation, governmental agency, or other organization operating as a single entity.
17. "Point of collection". The point where pipes owned, leased, or under license by a customer connect to the utility's collection system.
18. "Premises". All of the real property and apparatus employed in a single enterprise on an integral parcel of land undivided by public streets, alleys or railways.
19. "Residential subdivision development". Any tract of land which has been divided into 4 or more contiguous lots for use for the construction of residential buildings or permanent mobile homes for either single or multiple occupancy.
20. "Residential use". Service to customers discharging sewage for domestic purposes.
21. "Rules". The regulations set forth in the tariffs which apply to the provision of sewage service.
22. "Service area". The territory in which the utility has been granted a Certificate of Convenience and Necessity and is authorized by the Commission to provide sewer service.
23. "Service establishment charge". The charge as specified in the utility's Schedule of Rates which covers the cost of establishing a new account.
24. "Service line". A sewer line that transports sewage from a customer's point of collection to a common source (normally a collection main) of collection of the utility's.
25. "Service reconnect charge". The charge as specified in the utility's tariffs which must be paid by the customer prior to reconnection of sewer service each time the sewer service is disconnected for nonpayment or whenever service is discontinued for failure otherwise to comply with the utility's fixed rules.
26. "Service reestablishment charge". A charge as specified in the utility's tariffs for service at the same location where the same customer had ordered a service disconnection within the preceding 12-month period.
27. "Sewage". Ground garbage, human or animal excretions, and other domestic, commercial or industrial waste normally disposed of through a sanitary sewer system.
28. "Single family dwelling". A house, an apartment, a mobile home permanently affixed to a lot, or any other permanent residential unit which is used as a permanent home.
29. "Tariffs". The documents filed with the Commission which list the services and products offered by the sewer company and which set forth the terms and conditions and a schedule of the rates and charges for those services and products.
30. "Temporary service". Service to premises or enterprises which are temporary in character, or where it is known in advance that the service will be of limited duration. Service which, in the opinion of the utility, is for operations of a speculative character is also considered temporary service.
31. "Utility". The public service corporation providing sewer service to the public in compliance with state law.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2).
R14-2-602. Certificate of Convenience and Necessity for sewer utilities; Extensions of Certificates of Convenience and Necessity for Sewer Utilities; Abandonment, Sale, Lease, Transfer, or Disposal of a Sewer Utility; Discontinuance or Abandonment of Sewer Utility Service
 

A.            In this Section, unless otherwise specified:

1.             “Applicant” means a person who submits an application to obtain a Certificate of Convenience and Necessity to construct sewer utility facilities or operate as a sewer utility or to extend the service area under an existing Certificate of Convenience and Necessity held by the person.

2.             “CC&N” means Certificate of Convenience and Necessity.

3.             “Commission” means the Arizona Corporation Commission.

4.             “Contiguous” means in actual contact, touching, such as by sharing a common border.

5.             “Extension area” means the geographic area that an applicant is requesting to have added to the applicant’s existing CC&N service area.

B.            Application for a new CC&N or extension of a CC&N

1.             Any person who desires to construct sewer utility facilities or to operate as a sewer utility shall, prior to commencing construction of utility facilities or operations, file with the Commission an application for a CC&N and obtain Commission approval.

2.             Any utility that desires to extend its CC&N service area shall file with the Commission an application for a CC&N extension.

                3.             Before filing an application for a CC&N or a CC&N extension, a person shall provide written notice of the person’s intention to file the application to each person who owns land within the proposed service area or extension area and who has not requested service.  Each written notice to a landowner shall include, at a minimum:

                                a.             The legal name, physical address, mailing address (if different), and telephone number of the intended applicant;

                                b.             The approximate date by which the application will be filed;

                                c.             The type of services to be provided if the application is approved;

d.             The physical addresses and toll-free telephone numbers, in Phoenix and Tucson, for the Consumer Services Section of the Commission; and

e.             The following information:

i.              That the recipient is a property owner within the proposed service area or extension area;

ii.             That if the application is granted, the intended applicant will be the exclusive provider of the specific services to the proposed service area or extension area and will be required by the Commission to provide those services under rates and charges and terms and conditions established by the Commission;

                iii.            That a CC&N does not prohibit persons from providing services only to themselves using their own facilities on their own property although other applicable laws may restrict such activity;

                iv.            That the application is available for inspection during regular business hours at the offices of the Commission and at the offices of the intended applicant;

                v.             That the Commission will hold a hearing on the application;

                vi.            That the landowner may have the right to intervene in the proceeding and may appear at the hearing and make a statement on his or her own behalf even if the landowner does not intervene;

                vii.           That the landowner may contact the Commission for the date and time of the hearing and for information on intervention;

                viii.          That the landowner may not receive any further notice of the application proceeding unless requested; and

                ix.            That the landowner may contact the intended applicant or the Consumer Services Section of the Commission if the landowner has any questions or concerns about the application, has any objections to approval of the application, or wishes to make a statement in support of the application.

4.             Within 10 days after filing an application for a CC&N or a CC&N extension, an applicant shall provide written notice of the application to the municipal manager or administrator of each municipality with corporate limits that overlap with or are within five miles of the proposed service area or extension area.  Each written notice shall include, at a minimum:

a.             The applicant’s legal name, mailing address, and telephone number;

b.             The date the application was filed;

c.             The type of services to be provided if the application is approved;

d.             A description of the requested service area or extension area, expressed in terms of cadastral (quarter section) or metes and bound survey;

e.             The Commission docket number assigned to the application; and

f.              Instructions on how to obtain a copy of the application.

5.             Each application for a new CC&N or CC&N extension shall be submitted in a form and number prescribed by the Commission and shall include, at a minimum, the following information:

a.             applicant’s legal name, mailing address, and telephone number;

b.             If the applicant will or does operate the utility under a different business name, the name under which the applicant will be doing business;

c.             The full name, mailing address, and telephone number of a management contact for the applicant;

d.             The full name, mailing address, and telephone number of the attorney for the applicant, if any;

e.             The full name, mailing address, and telephone number of the operator certified by the Arizona Department of Environmental Quality who is or will be working for the applicant;

f.              The full name, mailing address, and telephone number of the on-site manager for the applicant;

g.             Whether the applicant is a corporation, a partnership, a limited liability company, a sole proprietor, or another specified type of legal entity;

h.             If the applicant is a corporation, the following:

i.              Whether the applicant is a “C” corporation, an “S” corporation, or a non-profit corporation and whether the corporation is domestic or foreign;

ii.             A list of the full names, titles, and mailing addresses of each of the applicant’s officers and directors;

iii.            A copy of the applicant’s certificate of good standing issued by the Commission’s Corporations Division;

iv.            Unless the applicant is applying for a CC&N extension, a certified copy of the applicant’s articles of incorporation and by-laws; and

v.             If the applicant is a for-profit corporation, the number of shares of stock authorized for issue and, if any stock has been issued, the number of shares issued and date of issuance;

i.              If the applicant is a partnership, the following:

i.              Whether the applicant is a limited partnership or a general partnership and whether the partnership is domestic or foreign;

ii.             The full names and mailing addresses of the applicant’s general partners;

iii.            The full names, mailing addresses, and telephone numbers of the applicant’s managing partners;

iv.            Unless the applicant is applying for a CC&N extension, a copy of the applicant’s articles of partnership; and

v.             If the applicant is a foreign limited partnership, a copy of the applicant’s certificate of registration filed with the Arizona Secretary of State;

                                j.              If the applicant is a limited liability company, the following:

                                                i.              The full names and mailing addresses of the applicant’s managers or, if management is reserved to the members, the applicant’s members;

                                                ii.             Unless the applicant is applying for a CC&N extension, a copy of the applicant’s articles of organization;

                                k.             The legal name and mailing address of each other utility in which the applicant has an ownership interest;

                                l.              A description of the requested service area or extension area, expressed in terms of cadastral (quarter section) or metes and bound survey;

m.            The name of each county in which the requested service area or extension area is located and a description of the area’s location in relation to the closest municipality, which shall be named;

n.             A complete description of the facilities proposed to be constructed, including a preliminary engineering report with specifications in sufficient detail to describe each sewer system and the principal components of each sewer system (e.g., collection mains, trunk lines, lift stations, treatment plants, effluent disposal areas, etc.) to allow verification of the estimated costs provided under subsection (B)(5)(p) and verification that the requirements of the Commission and the Arizona Department of Environmental Quality can be met;

o.             A copy of the Aquifer Protection Permit issued by the Arizona Department of Environmental Quality for the proposed service area or extension area or, if not yet obtained, the status of the application for the Aquifer Protection Permit;

p.             The estimated total construction cost of the proposed offsite and onsite facilities, including documentation to support the estimates, and an explanation of how the construction will be financed, such as through debt, equity, advances in aid of construction, contributions in aid of construction, or a combination thereof;

q.             Documentation establishing the applicant’s financial condition including at least the applicant’s current assets and liabilities, an income statement, the applicant’s estimated revenue and expenses for the first five years following approval of the application, and the estimated value of the applicant’s utility plant in service for the first five years following approval of the application;

r.              The rates proposed to be charged for services rendered, shown in the form of a proposed tariff that complies with Commission standards;

i.s.           The estimated annual operating revenues and for the first five years of operation for the requested service area or extension area, expressed separately for residential, commercial, industrial, and irrigation services, and including a description of each assumption made to derive the estimates;

t.              A detailed description of the proposed construction timeline for facilities, with estimated starting and completion dates and, if construction is to be phased, a description of each separate phase of construction;

u.             A copy of any requests for service from persons who own land within the proposed service area or extension area, which shall identify the applicant by name;

v.             Maps of the proposed service area. or extension area identifying:

i.              The boundaries of the area, with the total acreage noted;

ii.             The land ownership boundaries within the area, with the acreage of each separately owned parcel within the area noted;

iii.            The owner of each parcel within the area;

iv.            Any municipality corporate limits that overlap with or are within five miles of the area;

v.             The service area of any public service corporation, municipality, or district currently providing water or wastewater service within one mile of the area, with identification of the entity providing service and each type of service being provided;

vi.            The location within the area of any known sewer service connections that are already being provided service by the applicant;

vii.           The location of all proposed developments within the area;

viii.          The proposed location of each sewer system and the principal components described in subsection (B)(5)(n); and

ix.            The location of all parcels for which a copy of a request for service has been submitted per subsection (B)(5)(u);

w.            A copy of each notice to be sent, as required under subsection (B)(4), to a municipal manager or administrator;

x.             A copy of each notice sent, as required under subsection (B)(3), to a landowner not requesting service;

y.             For each landowner not requesting service, either the written response received from the landowner or, if no written response was received, a description of the actions taken by the applicant to obtain a written response;

z.             A copy of each city, county, or state agency approval required by law to construct the proposed facilities or operate the utility within the proposed service area or extension area or, for any approval not yet obtained, the status of the applicant’s application for the approval;

aa.           The estimated number of customers to be served for each of the first five years of operation, expressed separately for residential, commercial, industrial, and irrigation customers and including documentation to support the estimates;

bb.          A description of how water service is to be provided in the proposed service area or extension area and the name of each water service provider for the area, if any;

cc.           A description of how effluent from the area will be reused or, if not reused, disposed of;

dd.          If the applicant is requesting a CC&N extension: 

i.              A current compliance status report from the Arizona Department of Environmental Quality, dated no more than 30 days before the date the CC&N extension application is filed, for each wastewater system operated by the applicant, as identified by a separate Arizona Department of Environmental Quality Identification Number; and

ii.             A wastewater flow data sheet for the wastewater system being extended by the applicant; and

                                ee.           The notarized signature of the applicant.

6.             Upon receiving an application under subsection (B)(5), Utilities Division staff shall review and process the application in accordance with the requirements of R14-2-610.

7.             Once Utilities Division staff determines that an application submitted under subsection (B)(5) is administratively complete, the Commission shall, as expeditiously as practicable, schedule a hearing to consider the application.

C.            Additions/ or extensions of service contiguous to existing CC&N service areas

1.             Except in the case of an emergency, a utility that proposes to extend service to a parcel located in a non-certificated area contiguous to its CC&N service area, shall notify the Commission before the service extension occurs.

2.             Each notification required under subsection (C)(1) shall be in writing, shall be verified, and shall set forth, at a minimum,:

a.             The legal name, mailing address, and telephone number of the utility;

b.             The number of persons to be served in the contiguous parcel;

c.             The legal description of the contiguous parcel and the location of the structures to be served therein, in relation to the utility’s CC&N service area; and

d.             A statement that service will be extended only to a non-certificated parcel contiguous to the utility’s CC&N service area.

3.             When emergency service is required to be provided to a person in a non-certificated area contiguous to a utility’s CC&N service area, the utility shall notify the Commission of the service extension as soon as possible after the service extension occurs by providing written notice that includes the information required under subsection (C)(2) and describes the nature and extent of the emergency.

D.            Application for authority to abandon, sell, lease, transfer, or otherwise dispose of a utility.

1.             A utility shall not abandon, sell, lease, transfer, or otherwise dispose of its facilities or operation without first obtaining authority therefore from the Commission.

2.             A utility desiring to abandon, sell, lease, transfer, or otherwise dispose of its facilities or operation shall file with the Commission an application that includes, at a minimum:

             a.             The legal name, physical address, mailing address (if different), and telephone number of the utility;

             b.             A description of the utility property proposed to be abandoned, sold, leased, transferred or otherwise disposed of.;

             c.             Documentation establishing the utility’s financial condition, including at least the utility’s current assets and liabilities, an income statement, the utility’s revenue and expenses for the most recently completed 12-month accounting period, and the value of the utility’s utility plant in service

             d.             The legal name, physical address, mailing address (if different), and telephone number of any proposed purchaser, lessee, transferee, or assignee.;

                e.             The terms and conditions of the proposed abandonment, sale, lease, transfer, or assignment and copies of any agreement that has been or will be executed concerning the transaction;

                f.              A description of the effect that the proposed transaction will have upon the utility’s services;

                g.             The method by which the proposed transaction is to be financed

                h.             A description of the effect that the proposed transaction will have upon any other utility

                i.              The number of customers to be affected by the proposed transaction; and

                j.              A description of the effect that the proposed transaction will have upon customers.

E.             Application for discontinuance or abandonment of utility service

1.             A utility shall not discontinue or abandon any service currently in use by the public without first obtaining authority therefore from the Commission.

2.             A utility desiring to discontinue or abandon a service shall file with the Commission an application identifying the utility; including data regarding past, present and estimated future customer use of the service; describing any plant or facility that would no longer be in use if the application were approved; and explaining why the utility desires to discontinue or abandon the service.

3.             A utility is not required to apply for Commission approval to remove individual facilities where a customer has requested service discontinuance.
R14-2-603. Establishment of service
A. Information from new applicants
1. A utility may obtain the following minimum information from each new applicant for service:
a. Name or names of applicant(s).
b. Service address or location and telephone number.
c. Billing address or location and telephone number, if different than service address.
d. Address where service was provided previously.
e. Date applicant will be ready for service.
f. Indication of whether premises have been supplied with utility service previously.
g. Purpose for which service is to be used.
h. Indication of whether applicant is owner or tenant of or agent for the premises.
2. Each utility may require a new applicant for service to appear at the utility's designated place of business to produce proof of identity and sign the utility's application form.
3. Where service is requested by 2 or more individuals the utility shall have the right to collect the full amount owed to the utility from any 1 of the applicants.
B. Deposits
1. A utility may require a deposit from any new applicant for service.
2. The utility shall issue a nonnegotiable receipt to the applicant for the deposit. The inability of the customer to produce such a receipt shall in no way impair his right to receive a refund of the deposit which is reflected on the utility's records.
3. Interest on deposits shall be calculated annually at an interest rate filed by the utility and approved by the Commission in a tariff proceeding. In the absence of such, the interest rate shall be 6%.
4. Interest shall be credited to the customer's bill annually.
5. Residential deposits shall be refunded within 30 days after:
a. 12 consecutive months of service without being delinquent in the payment of utility bills provided the utility may reestablish the deposit if the customer becomes delinquent in the payment of bills 3 or more times within a 12 consecutive month period.
b. Upon discontinuance of service when the customer has paid all outstanding amounts due the utility.
6. A separate deposit may be required for each service installed.
7. The amount of a deposit required by the utility shall be determined according to the following terms:
a. Residential customer deposits shall not exceed 2 times the average residential class bill as evidenced by the utility's most recent annual report filed with the Commission.
b. Nonresidential customer deposits shall not exceed 2 1/2 times that customer's estimated maximum monthly bill.
8. The utility may review the customer's discharge after service has been established and adjust the deposit amount based upon the customer's actual discharge.
9. Upon discontinuance of service, the deposit may be applied by the utility toward settlement of the customer's bill.
C. Grounds for refusal of service.
A utility may refuse to establish service if any of the following conditions exist:
1. The applicant has an outstanding amount due for the same class of utilities services with the utility, and the applicant is unwilling to make arrangements with the utility for payment.
2. A condition exists which in the utility's judgment is unsafe or hazardous to the applicant, the general population, or the utility's personnel or facilities.
3. Refusal by the applicant to provide the utility with a deposit.
4. Customer is known to be in violation of the utility's tariffs filed with the Commission or of the Commission's rules and regulations.
5. Failure of the customer to furnish such funds, service, equipment, and/or rights-of-way necessary to serve the customer and which have been specified by the utility as a condition for providing service.
D. Service establishments, re-establishments or reconnect charge
1. A utility may make a charge as approved by the Commission for the establishment, reestablishment, or reconnection of utility service.
2. For the purpose of this rule, service establishments are where the customer's facilities are ready and acceptable to the utility and do not require construction on the part of the utility.
E. Temporary service
1. Applicants for temporary service may be required to pay the utility, in advance of service establishment, the estimated cost of installing and removing the facilities necessary for furnishing sewer service.
2. Where the duration of service is to be less than 1 month, the applicant may also be required to advance a sum of money equal to the estimated bill for service.
3. Where the duration of service is to exceed 1 month, the applicant may also be required to meet the deposit requirements of the utility.
4. If at any time during the term of the agreement for service the character of a temporary customer's operations changes so that in the opinion of the utility the customer is classified as permanent, the terms of the utility's main extension rules shall apply.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).
R14-2-604. Minimum customer information requirements
A. Information for residential customers
1. Each utility shall make available upon customer request not later than 60 days from the date of request a concise summary of the rate schedule applied for by such customer. The summary shall include the following:
a. Monthly minimum or customer charge, identifying the amount of the charge and the specific amount of minimum discharge included in the minimum charge, where applicable.
b. Rate calculation, including where applicable, computations based upon seasonal or annual water usages.
2. The utility shall to the extent practical identify the tariff most advantageous to the customer and notify the customer of such prior to service commencement.
3. In addition, a utility shall make available upon customer request not later than 60 days from the date of request a copy of the Commission's rules and regulations governing:
a. Deposits
b. Terminations of service
c. Billing and collection
d. Complaint handling.
4. Each utility shall inform all new customers of their rights to obtain the information specified above.
B. Information required due to changes in tariffs
1. Each utility shall transmit to affected customers by the most economic means available a concise summary of any change in the utility's tariffs affecting those customers.
2. This information shall be transmitted to the affected customer within 60 days of the effective date of the change.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2).
R14-2-605. Service connections
A. Priority and timing
1. After an applicant has complied with the utility's application and deposit requirements and has been accepted for service by the utility, the utility shall schedule that customer for service connection.
2. Service connections shall be scheduled for completion within 5 working days of the date the customer has been accepted for service, except in those instances when the customer requests service connection beyond the 5 working day limitation.
3. When the utility has made arrangements to meet with a customer for service establishment purposes and the utility or the customer cannot make the appointment during the prearranged time, the utility shall reschedule the connection to the satisfaction of both parties.
4. For the purposes of this rule, establishment of service takes place only when the customer's facilities are ready and acceptable to the utility.
B. Customer provided facilities
1. An applicant for service shall be responsible for the installation of all plumbing up to the applicant's property line. In addition, the applicant is responsible for the proper grade or leveling of the sewer connection so that it conforms with the collection system of the utility.
2. Funds collected for service connections may be nonrefundable contributions to the utility.
C. Customer provided equipment safety and operation.
Each customer shall be responsible for maintaining all equipment and facilities using or used for utility services located on his side of the point of collection in safe operating condition.
D. Easements and rights-of-way
1. Each customer shall grant adequate easement and right-of-way satisfactory to the utility to ensure that customer's proper service connection. Failure on the part of the customer to grant adequate easement and right-of-way shall be grounds for the utility to refuse service.
2. When a utility discovers that a customer or his agent is performing work or has constructed facilities adjacent to or within an easement or right-of-way and such work, construction or facility poses a hazard or is in violation of federal, state or local laws, ordinances, statutes, rules or regulations, or significantly interferes with the utility's access to equipment, the utility shall notify the customer or his agent and shall take whatever actions are necessary to eliminate the hazard, obstruction or violation at the customer's expense.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).
R14-2-606. Collection main extension agreements
A. General requirements
1. Each utility entering into a main extension agreement shall comply with the provisions of this rule, which specifically defines the conditions governing collection main extensions.
2. Upon request by a potential applicant for a collection main extension, the utility shall prepare, without charge, a preliminary sketch and rough estimate of the cost of installation to be paid by said applicant.
3. Any applicant for a collection main extension requesting the utility to prepare detailed plans, specifications, or cost estimates may be required to deposit with the utility an amount equal to the estimated cost of preparation. The utility shall, upon request, make available within 90 days after receipt of the deposit referred to above, such plans, specifications, or cost estimates of the proposed collection main extension. Where the applicant accepts the plans and the utility proceeds with construction of the extension, the deposit shall be credited to the cost of construction; otherwise the deposit shall be nonrefundable. If the extension is to include oversizing of facilities to be done at the utility's expense, appropriate details shall be set forth in the plans, specifications and cost estimates.
4. Where the utility requires an applicant to advance funds for a collection main extension, the utility shall furnish the applicant with a copy of the extension tariff of the appropriate utility prior to the applicant's acceptance of the utility's extension agreement.
5. All collection main extension agreements requiring payment by the applicant shall be in writing and signed by each party before the utility commences construction.
6. In the event the utility's actual cost of construction is different from the amount advanced by the customer, the utility shall make a refund to or collect additional funds from, the applicant within 120 days after the completion of the construction.
7. The provisions of this rule apply only to those applicants who in the utility's judgment will be permanent customers of the utility. Applications for temporary service shall be governed by the Commission's rules concerning temporary service applications.
B. Minimum written agreement requirements
1. Each collection main extension agreement shall, at a minimum, include the following information:
a. Name and address of applicant(s)
b. Proposed service address or location
c. Description of requested service
d. Description and sketch of the requested main extension
e. A cost estimate to include materials, labor, and other costs as necessary
f. Payment terms
g. A clear and concise explanation of any refunding provisions, if appropriate
h. The utility's estimated start date and completion date for construction of the collection main extension
2. Each applicant shall be provided with a copy of the written collection main extension agreement.
C. Main extension requirements.
Each main extension tariff shall include the following provisions:
1. A maximum footage and/or equipment allowance to be provided by the utility at no charge. The maximum footage and/or equipment allowance may be differentiated by customer class.
2. An economic feasibility analysis for those main extensions which exceed the maximum footage and/or equipment allowance. Such economic feasibility analysis shall consider the incremental revenues and cost associated with the main extension. In those instances where the requested main extension does not meet the economic feasibility criteria established by the utility, the utility may require the customer to provide funds to the utility, which will make the main extension economically feasible. The methodology employed by the utility in determining economic feasibility shall be applied uniformly and consistently to each applicant requiring a main extension.
3. The timing and methodology by which the utility will refund any advances in aid of construction as additional customers are served off the main extension. The customer may request an annual survey to determine if additional customers have been connected to and are using service from the main extension. In no case shall the amount of the refund exceed the amount originally advanced.
4. All advances in aid of construction shall be noninterest bearing.
5. If after 5 years from the utility's receipt of the advance, the advance has not been totally refunded, the advance shall be considered a contribution in aid of construction and shall no longer be refundable.
D. Residential subdivision development and permanent mobile home parks.
Each utility shall submit as a part of its main extension tariff separate provisions for residential subdivision developments and permanent mobile home parks.
E. Ownership of facilities.
Any facilities installed hereunder shall be the sole property of the utility.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).
R14-2-607. Provision of service
A. Utility responsibility
1. Each utility shall be responsible for the safe conduct and handling of the sewage from the customer's point of collection.
2. The utility may, at its option, refuse service until the customer has obtained all required permits and/or inspections indicating that the customer's facilities comply with local construction and safety standards.
B. Customer responsibility
1. Each customer shall be responsible for maintaining all facilities on the customer's premises in safe operating condition and in accordance with the rules of the state Department of Health.
2. Each customer shall be responsible for safeguarding all utility property installed in or on the customer's premises for the purpose of supplying utility service to that customer.
C. Continuity of service.
Each utility shall make reasonable efforts to supply a satisfactory and continuous level of service. However, no utility shall be responsible for any damage or claim of damage attributable to any interruption or discontinuation of service resulting from:
1. Any cause against which the utility could not have reasonably foreseen or made provision for, i.e., force majeure
2. Intentional service interruptions to make repairs or perform routine maintenance
3. Any temporary overloading of the utility's collection or treatment facilities.
D. Service interruption
1. Each utility shall make reasonable efforts to reestablish service within the shortest possible time when service interruptions occur.
2. Each utility shall make reasonable provisions to meet emergencies resulting from failure of service, and each utility shall issue instructions to its employees covering procedures to be followed in the event of emergency in order to prevent or mitigate interruption or impairment of service.
3. In the event of a national emergency or local disaster resulting in disruption of normal service, the utility may, in the public interest, interrupt service to other customers to provide necessary service to civil defense or other emergency service agencies on a temporary basis until normal service to these agencies can be restored.
4. When a utility plans to interrupt service for more than 4 hours to perform necessary repairs or maintenance, the utility shall attempt to inform affected customers at least 24 hours in advance of the scheduled date and estimated duration of the service interruption. Such repairs shall be completed in the shortest possible time to minimize the inconvenience to the customers of the utility.
5. The Commission shall be notified of interruptions in service affecting the entire system or any major division thereof. The interruption of service and cause shall be reported within 4 hours after the responsible representative of the utility becomes aware of said interruption by telephone to the Commission and followed by a written report to the Commission.
E. Construction standards.
The design, construction and operation of all sewer plants shall conform to the requirements of the Arizona Department of Health Services or its successors and any other governmental agency having jurisdiction thereof. Phase construction is acceptable.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).
R14-2-608. Billing and collection
A. Frequency.
Each utility shall bill monthly for services rendered.
B. Minimum bill information.
Each bill for residential service will contain the following minimum information:
1. Billed discharge, where applicable
2. Utility telephone number
3. Amount due and due date
4. Customer's name
5. Service account number, if available
6. Past due amount, where appropriate
7. Adjustment factor, where applicable
8. Other approved tariff charges.
C. Billing terms
1. All bills for utility services are due and payable no later than 10 days from the date the bill is rendered. Any payment not received within this time-frame shall be considered past due.
2. For purposes of this rule, the date a bill is rendered may be evidenced by:
a. The postmark date
b. The mailing date.
3. All past due bills for utility services are due and payable within 10 days. Any payment not received within this time-frame shall be considered delinquent.
4. All delinquent bills for which payment has not been received within 5 days shall be subject to the provisions of the utility's termination procedures.
5. All payments shall be made at or mailed to the office of the utility or to the utility's duly authorized representative.
D. Applicable tariffs, prepayment, failure to receive, commencement date, taxes
1. Each customer shall be billed under the applicable tariff indicated in the customer's application for service.
2. Each utility shall make provisions for advance payment for sewer services.
3. Failure to receive bills or notices which have been properly placed in the United States mail shall not prevent such bills from becoming delinquent nor relieve the customer of his obligations therein.
4. Charges for service commence when the service is installed and connection made, whether used or not.
5. In addition to the collection of regular rates, each utility may collect from its customers a proportionate share of any privilege, sales or use tax, or other imposition based on the gross revenues received by the utility.
E. Insufficient funds (NSF) checks
1. A utility shall be allowed to recover a fee, as approved by the Commission for each instance where a customer tenders payment for utility service with an insufficient funds check.
2. When the utility is notified by the customer's bank that there are insufficient funds to cover the check tendered for utility service, the utility may require the customer to make payment in cash, by money order, certified check, or other means which guarantee the customer's payment to the utility.
3. A customer who tenders an insufficient check shall in no way be relieved of the obligation to render payment to the utility under the original terms of the bill nor defer the utility's provision for termination of service for nonpayment of bills.
F. Late payment penalty
1. Each utility may include in its tariffs a late payment penalty tariff which may be applied to delinquent bills.
2. The amount of the late payment penalty shall be indicated upon the customer's bill when rendered by the utility.
3. In the absence of an approved tariff, the amount of the late payment penalty shall not exceed 1-1/2% of the delinquent bill.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).
R14-2-609. Termination of service
A. Nonpermissible reasons to disconnect service.
A utility may not disconnect service for any of the reasons stated below:
1. Delinquency in payment for services rendered to a prior customer at the premises where service is being provided, except in the instance where the prior customer continues to reside on the premises.
2. Failure of the customer to pay for services or equipment which are not regulated by the Commission.
3. Nonpayment of a bill related to another class of service.
4. Failure to pay for a bill to correct a previous underbilling due to a billing error if the customer agrees to pay over a reasonable period of time.
5. Disputed bills where the customer has complied with the Commission's rules and regulations.
B. Termination of service without notice
1. Utility service may be disconnected without advance written notice under the following conditions:
a. The existence of an obvious hazard to the safety or health of the consumer or the general population.
b. The utility has evidence of fraud.
2. The utility shall not be required to restore service until the conditions which resulted in the termination have been corrected to the satisfaction of the utility.
3. Each utility shall maintain a record of all terminations of service without notice. This record shall be maintained for a minimum of 1 year and shall be available for inspection by the Commission.
C. Termination of service with notice
1. A utility may disconnect service to any customer for any reason stated below provided the utility has met the notice requirements established by the Commission:
a. Customer violation of any of the Commission's rules.
b. Failure of the customer to pay a delinquent bill for utility service.
c. Failure to meet or maintain the utility's credit and deposit requirements.
d. Failure of the customer to provide the utility reasonable access to its equipment and property.
e. Customer breach of a written contract for service between the utility and customer.
f. When necessary for the utility to comply with an order of any governmental agency having such jurisdiction.
2. Each utility shall maintain a record of all terminations of service with notice. This record shall be maintained for 1 year and be available for Commission inspection.
D. Termination notice requirements
1. No utility shall terminate service to any of its customers without providing advance written notice to the customer of the utility's intent to disconnect service, except under those conditions specified where advance written notice is not required.
2. Such advance written notice shall contain, at a minimum, the following information:
a. The name of the person whose service is to be terminated and the address where service is being rendered.
b. The Commission rule or regulation that was violated and explanation thereof or the amount of the bill which the customer has failed to pay in accordance with the payment policy of the utility, if applicable.
c. The date on or after which service may be terminated.
d. A statement advising the customer that the utility's stated reason for the termination of services may be disputed by contacting the utility at a specific address of phone number, advising the utility of the dispute and making arrangements to discuss the cause for termination with a responsible employee of the utility in advance of the scheduled date of termination. The responsible employee shall be empowered to resolve the dispute and the utility shall retain the option to terminate service after affording this opportunity for a meeting and concluding that the reason for termination is just and advising the customer of his right to file a complaint with the Commission.
E. Timing of terminations with notice
1. Each utility shall be required to give at least 5 days' advance written notice prior to the termination date.
2. Such notice shall be considered to be given to the customer when a copy thereof is left with the customer or posted first class in the United States mail, addressed to the customer's last known address.
3. If after the period of time allowed by the notice has elapsed and the delinquent account has not been paid nor arrangements made with the utility for the payment thereof or in the case of a violation of the utility's rules the customer has not satisfied the utility that such violation has ceased, the utility may then terminate service on or after the day specified in the notice without giving further notice.
F. Landlord/tenant rule.
In situations where service is rendered at an address different from the mailing address of the bill or where the utility knows that a landlord/tenant relationship exists and that the landlord is the customer of the utility, and where the landlord as a customer would otherwise be subject to disconnection of service, the utility may not disconnect service until the following actions have been taken:
1. Where it is feasible to so provide service, the utility, after providing notice as required in these rules, shall offer the occupant the opportunity to subscribe for service in his or her own name. If the occupant then declines to so subscribe, the utility may disconnect service pursuant to the rules.
2. A utility shall not attempt to recover from a tenant or condition service to a tenant with the payment of any outstanding bills or other charges due upon the outstanding account of the landlord.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).
Editor's Note: The following Section was amended under an exemption from the Attorney General approval provisions of the Arizona Administrative Procedure Act (State ex. rel. Corbin v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App. 1992)), as determined by the Corporation Commission. This exemption means that the rules as amended were not approved by the Attorney General.
R14-2-610. Administrative and Hearing Requirements
A. Customer service complaints
1. Each utility shall make a full and prompt investigation of all service complaints made by its customers, either directly or through the Commission.
2. The utility shall respond to the complainant and/or the Commission representative within 5 working days as to the status of the utility investigation of the complaint.
3. The utility shall notify the complainant and/or the Commission representative of the final disposition of each complaint. Upon request of the complainant or the Commission representative, the utility shall report the findings of its investigation in writing.
4. The utility shall inform the customer of his right of appeal to the Commission should the results of the utility's investigation prove unsatisfactory to the customer.
5. Each utility shall keep a record of all written service complaints received which shall contain, at a minimum, the following data:
a. Name and address of the complainant
b. Date and nature of the complaint
c. Disposition of the complaint
d. A copy of any correspondence between the utility, the customer, and/or the Commission.
This record shall be maintained for a minimum period of 1 year and shall be available for inspection by the Commission.
B. Notice by utility of responsible officer or agent
1. Each utility shall file with the Commission a written statement containing the name, address (business, residence and post office) and telephone numbers (business and residence) of at least 1 officer, agent or employee responsible for the general management of its operations as a utility in Arizona.
2. Each utility shall give notice, by filing a written statement with the Commission, of any change in the information required herein within 5 days from the date of any such change.
C. Time-frames for processing applications for Certificates of Convenience and Necessity
1. This rule prescribes time-frames for the processing of any Application for a Certificate of Convenience and Necessity issued by the Arizona Corporation Commission pursuant to this Article. These time-frames shall apply to applications filed on or after the effective date of this rule.
2. Within 30 calendar days after receipt of an application for a new Certificate of Convenience and Necessity, or to amend or change the status of any existing Certificate of Convenience and Necessity, staff shall notify the applicant, in writing, that the application is either administratively complete or deficient. If the application is deficient, the notice shall specify all deficiencies.
3. Staff may terminate an application if the applicant does not remedy all deficiencies within 60 calendar days of the notice of deficiency.
4. After receipt of a corrected application, staff shall notify the applicant within 30 calendar days if the corrected application is either administratively complete or deficient. The time-frame for administrative completeness review shall be suspended from the time the notice of deficiency is issued until staff determines that the application is complete.
5. Within 150 days after an application is deemed administratively complete, the Commission shall approve or reject the application.
6. For purposes of A.R.S. § 41-1072 et seq., the Commission has established the following time-frames:
a. Administrative completeness review time-frame: 30 calendar days,
b. Substantive review time-frame: 150 calendar days,
c. Overall time-frame: 180 calendar days.
7. If an applicant requests, and is granted, an extension or continuance, the appropriate time-frames shall be tolled from the date of the request during the duration of the extension or continuance.
8. During the substantive review time-frame, the Commission may, upon its own motion or that of any interested party to the proceeding, request a suspension of the time- frame rules.
D. Accounts and records
1. Each utility shall keep general and auxiliary accounting records reflecting the cost of its properties, operating income and expense, assets and liabilities, and all other accounting and statistical data necessary to give complete and authentic information as to its properties and operations.
2. Each utility shall maintain its books and records in conformity with the NARUC Uniform Systems of Accounts for Class A, B, C and D Sewer Utilities.
3. A utility shall produce or deliver in this state any or all of its formal accounting records and related documents requested by the Commission. It may, at its option, provide verified copies of original records and documents.
4. All utilities shall submit an annual report to the Commission on a form prescribed by it. The annual report shall be filed on or before the 15th day of April for the preceding calendar year. Reports prepared by a certified or licensed public accountant on the utility, if any, shall accompany the annual report.
5. All utilities shall file with the Commission a copy of all reports required by the Securities and Exchange Commission.
E. Maps.
All utilities shall file with the Commission a map or maps clearly setting forth the location and extent of the area or areas they hold under approved certificates of convenience and necessity, in accordance with the Cadastral (Rectangular) Survey of the United States Bureau of Land Management, or by metes and bounds with a starting point determined by the aforesaid Cadastral Survey.
F. Variations, exemptions of Commission rules and regulations.
Variations or exemptions from the terms and requirements of any of the rules included herein (Title 14, Chapter 2, Article 6) shall be considered upon the verified application of an affected party to the Commission setting forth the circumstances whereby the public interest requires such variation or exemption from the Commission rules and regulations. Such application will be subject to the review of the Commission, and any variation or exemption granted shall require an order of the Commission. In case of conflict between these rules and regulations and an approved tariff or order of the Commission, the provisions of the tariff or order shall apply.
G. Prior agreements.
The adoption of these rules by the Commission shall not affect any agreements entered into between the utility and customers or other parties who, pursuant to such contracts, arranged for the extension of facilities in a provision of service prior to the effective date of these rules.
Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended effective December 31, 1998, under an exemption as determined by the Arizona Corporation Commission (Supp. 98-4). Amended to correct subsection numbering (Supp. 99-4).

 

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