If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
Phoenix, Ariz. — The Arizona Corporation Commission voted on 17 matters, including securities, telecommunications, railroad, and water items. Highlights of the meeting include:
Railroad
Utilities
Burlington Northern & Santa Fe Railway Company (RR-02635B-26-0028)
The Commission unanimously approved an application to install a new overpass above the BNSF railway tracks, part of the proposed improvement project for US 93. The new overpass will consist of two lanes used for southbound traffic, while the existing two-lane overpass will then be used for northbound traffic. ADOT asserts that the project is necessary because the existing two-lane roadway does not have the capacity to accommodate existing and future traffic demands, which has resulted in heavy traffic congestion
Management Systems LLC DBA Jake’s Corner Water System, (W-20935A-25-0267)
The Commission, Staff, and the owner of Jake’s Corner Water System discussed the rate increase at length, before the Commission voted unanimously to approve it. Jake’s Corner provides service to 18 homes in Gila County, near Payson. The Company has struggled financially, as well as with maintaining water quality, and was not in compliance with ADWR and ADEQ at one point, but both of those issues have since been resolved and Jake’s Corner is now in compliance with ACC requirements. A typical residential customer will see their average bill increase from about $67.34 to $138.95. “This is something that’s hard to vote on as a Commissioner,” said Commissioner Lea Marquez Peterson. “Let’s do what we can to consolidate or get the system acquired by a larger system to support more efficiencies.”
Tonto Creek Water Company, LLC (W-20682A-25-0272 and W-20682A-25-0273)
The Commission, Staff, and a representative of Tonto Creek discussed the rate increase at length, before the Commission voted to approve it. Tonto Creek serves approximately 78 homes in Gila County, east of Payson and has incurred a steep increase in operating costs and has made major improvements and replacements for its aging water system. Tonto Creek was denied an Emergency Loan Surcharge to recover $25,858 advanced by its owner for operational expenses. Staff opposed the Company’s request because Tonto Creek did not seek prior Commission approval before entering into the loan. A Rate Case Expense Surcharge and a Water Infrastructure Finance Authority (WIFA) Loan Surcharge mechanism were both approved, bringing the median monthly bill of a residential customer with median usage of 826 gallons from $46.21 to $62.39, with the potential to increase to $189.80 a month, depending on the final amount of the WIFA surcharge to be determined after the loan closes.
“What I struggle with is the 300% increase, it will be one of the highest increases that this Commission has ever implemented. And it’s a tough pill for me to swallow.,” said Commissioner Keving Thompson. The president of Tonto Creek Estates Homeowner’s Association, which runs the water company was in attendance to answer questions, and replied, “Our rates have been too low for too long. So that’s why we are going to have a huge increase in percentage increase… Right now our two water tanks are springing up multiple leaks… they need to be replaced so that’s kind of our number one priority, from there we’ll work our way down obviously to meters… that would be our second priority. And eventually our distribution lines… we’re fixing 60 year old pipes that are continuously breaking.”