EPCOR Water Rate Case 2020

On August 18, 2017, EPCOR filed a “water” rate case with the Arizona Corporation Commission (ACC), requesting full consolidation of its 11 water districts. Under full consolidation, all water customers will benefit from predictable, uniform rate structures (which reduce rate shock and customer confusion), reduced regulatory expenses, and increased operating efficiencies.  The ACC could not come to a decision on this water rate case and requested EPCOR to file another rate case that included both Stand-Alone and Consolidation rate options by May 2020.  Due to COVID-19 the filing date was extended to June 2020.  EPCOR filed the water rate case on June 15, 2020.
EPCOR - 5 “Wastewater” districts:  Anthem, Agua Fria, Mohave, Sun City, Sun City West
Full consolidation was approved by the ACC July 1, 2017.  All districts are paying the same rates for the same service.

EPCOR – 11 “Water” districts:  Anthem, Agua Fria, Chaparral City, Havasu, Mohave, North Mohave, Paradise Valley, Sun City, Sun City West, Tubac, Willow Valley
Verrado is in the Agua Fria district, which is the largest district for both water and wastewater.
Most homes in Verrado & Victory have a ¾” meter.  There are a few homes that have 1” meters, which have higher monthly base rate than a ¾” meter.  The Utility Council (UC) offers a program that allows those homes that qualify with a 1” meter to downsize to ¾”, reducing the monthly meter charge by 50%.  Homes with fire suppression systems by code must have a 1” meter and are not eligible for the downsize program.

The Utilities Council is recommending full consolidation as the best option for residents in the Agua Fria District.  We will continue to keep Verrado residents informed throughout the rate case hearings.

The link below will take you to the 6,154-page Docket No. WS-01303A-20-0177 filed by EPCOR:  https://edocket.azcc.gov/Docket/DocketDetailSearch?docketId=25363

Click on Documents at the top, then click on 6/15/2020 Application-Rate.
This pdf file may take a long time to download because of the large file.

New Email Address to contact the Utilities Council in Verrado

For questions or assistance, you can contact a member of the Utilities Council by emailing:

VerradoUtilitiesCouncil@dmbcommunitylife.com

APS Rate Decision Still In Flux

In the August Open Meeting, the Arizona Corporation Commission reached a 4-1 decision on the APS rate case.  The 500-page decision had multiple amendments the were adopted on the day of the decision and lots of changes due to a settlement agreement weren't announced until the last moment.  As a result the Utilities Council, who have been following this case closely are still working through the implications to Verrado residents.

Robert Burns, ACC Commissioner

But we may yet have more time and more changes.  The lone dissenting Commissioner, Robert Burns, has long been working to get APS's parent company, Pinnacle West to disclose their campaign contributions for commissioners who ultimately voted in favor of this decision.  He's been shut down multiple times so far.  But, apparently, he's not ready to give up yet.

This week Commissioner Burns announced that he is filing an appeal with the Arizona State Supreme Court that would stay the decision until APS and Pinnacle West open their books.  We don't know what the outcome will be yet, and we don't have a timeline for how or when the court will make its decision.

The UC will continue to monitor and update, as well as work through the case to help residents choose the plan that is best for each.  It will take a little time.  As it stands, final selections for the new plans aren't required to be made until May 2018.  We will have something well before then.

New EPCOR Rates Take Effect July 1st

On June 13th, the Arizona Corporation Commission decided 4-1 in favor of consolidating all of EPCOR's wastewater districts across Arizona.  Consolidation will ensure all EPCOR customers are paying the same rate for the same service. For Verrado and Victory customers, that means our bills will start to go down, effective July 1st.

The commission decided to implement the changes over a five-year period, in order to lessen the impact for customers whose bills will increase.  Here are the phases for Verrado and Victory:

Original Rate	July 2017	July 2018	July 2019	July 2020	July 2021
$71.16	$62.44	$56.50	$50.53	$44.55	$38.59

As a reminder, this only impacts the wastewater portion of your bill.  Since your billing cycle is not the same as the effective date of the change, your July bill will be a blend of the original rate and the new, lower rate.  Your August bill will be the first one to show the new rate of $62.44.

CONSOLIDATION!

This evening, after about four hours of debate and comment, the Arizona Corporation Commission voted, four to one, in favor of consolidation of EPCOR's wastewater districts.  The decision will go into effect as of July 1st.

The Commission adopted the judge's Recommended Opinion, which will bring all EPCOR wastewater customers to the same rate, gradually, over the course of five years.  For Verrado, that means our current $71 wastewater fee will go down, once a year, until we settle somewhere around $38.  The first increment, taking effect in July, is expected to be somewhere around $63.

We don't know the exact final numbers because there were a number of amendments submitted and approved by commissioners that impact EPCOR's bottom line.  Those still need to be calculated out. As soon as we have those details, we'll put them out.

Your July bill will be split between the old rate and the new rate, since the change takes effect mid-way through the billing cycle.  Come August, you'll see the full effect of the change.

Make no mistake, this was a landmark decision for the state of Arizona.  This was the result of three years' worth of work, dozens of volunteers, hundreds of residents passing the word, signing letters, and showing up, and a strong partnership between the UC and the Verrado Community Association, as well as DMB.  Together, this community, along with our fellow communities across Agua Fria and Anthem, made it happen.

Judge Recommends Consolidation in EPCOR Case

The EPCOR Wastewater case has been chugging along for a year and a half now.  Verrado ratepayers have been working on influencing the Arizona Corporation Commission for three years.  At long last, there is light at the end of the tunnel.  The commissioners still have to vote, and they can do pretty much whatever they want.  But we are one step closer to resolution.  

On May 23rd, the Administrative Law Judge overseeing the EPCOR case has issued her Recommended Opinion and Order (ROO, for short, and it's a HUGE file, so don't download unless you're on good WiFi).  The ROO is the final recommendation, based on all of the testimony from all sides, that gets submitted to the commissioners for a vote in an open meeting.  And it's good news.

The 284 page document summarizes the entire case, along with much of the history.  In her recommendation, Judge Harping recommends strongly IN FAVOR of full consolidation of EPCOR's wastewater districts, which would result in a reduction in our wastewater charges from $71 to $38 each month.  

Judge Harping recognized the strong public interest in this case on all sides.  She also said that the commission could not base its decision on popularity and public comment, but rather the facts of the case itself.  She affirmed the justifications that Verrado has maintained all along:  that affluence or age aren't factors for policy; that systems don't have to be interconnected to be consolidated; that Agua Fria is being unfairly charged; and that cost-cause is still upheld under a consolidated system.  

The one dark spot in her recommendation:  Judge Harping is advocating for a five-year phase-in period.  This means it would take us five years in small bites to get down to the final rate of $38.  Some communities are already preparing exceptions to this finding, as we all believe that three years should be the maximum period for a phase-in.

If we're lucky, the commission will vote on this ROO during the June open meeting (scheduled for the 12th and 13th).  We won't know until about a week prior.  It's important to note, the commissioners can vote ANY WAY they want to on this.  They could accept it, reject it, or modify it to any extent they deem fit.  We're not out of the woods yet.  But we are closer than we have ever been to finally getting the fair rates for the service we all share as EPCOR customers.  

As always, your Utilities Council will keep you posted, just as soon as we know anything.  Thank you, Verrado, for all you have done to support this effort!

Utility Matters: A new way to keep in touch

The primary goal of our Utilities Council is to keep Verrado residents informed.  We want to make sure that everybody in Verrado and Victory has the information and resources they need to make the most of their gas, water, and electric resources and the LEAST of their bills.  We've reached out through our website, Facebook, Nextdoor, through events and workshops, and in-person visits to people's homes.

But we're taking it further.  Introducing: Utility Matters, our new quarterly newsletter.

Read the first edition here (PDF).

This newsletter is not just for you to read and throw away.  It's also a way to remember how to get in touch with us, as well as a way to introduce the Utilities Council to new members of the community in every corner of the community.

So, please, read, enjoy, and share. And thank you for your support.