Phoenix, Ariz. —   The Arizona Corporation Commission approved two amendments offered by Vice Chair Rachel Walden in the Liberty Utilities (Litchfield Park Water and Sewer) Corp. rate case during the August 12, 2026 Open Meeting.

The first amendment reduced the utility’s Return on Equity (ROE) from 9.75% to 9.4%. The adjustment recognizes the reduced risk to the company resulting from the inclusion of an Annual Rate Adjustment Mechanism (ARAM), a formula-based rate plan. The amendment was supported by the Residential Utility Consumer Office (RUCO) and passed unanimously.

The second amendment revised the ARAM to ensure that future rate changes apply to all customer classes through an actual rate adjustment—not through a surcharge or credit mechanism. The originally proposed rate structure would have excluded customers on market or contract rates from future ARAM increases, potentially shifting costs to other customers, including residential ratepayers.  RUCO expressed support for Vice Chair Walden’s amendment, stating that “no customers should be excluded from the ARAM” and that Vice Chair Walden’s interpretation and concern were “spot-on.”

Vice Chair Walden also supported Commissioner Kevin Thompson’s amendment which removed Board of Director fees from rates. Expenses that benefit shareholders should not be borne by ratepayers.

These actions reflect the Commission’s responsibility to ensure that utility rates are fair, reasonable, and balanced while protecting Arizona consumers.

For more information, contact Walden-Web@azcc.gov.