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 29 matters, including securities, and electric and water utilities. Highlights from the meeting include:
Utilities:
Winchester Transmission II, LLC (L-21397A-26-0152-00262) The Commission approved a Certificate of Environmental Compatibility for Winchester Transmission II, LLC. The Project includes the construction of a new, 16-mile long, single circuit 230-kilovolt ("kV") alternating current transmission line to interconnect the Winchester Energy Project, which will include a variety of generating resources with the initial phase expected to be a 200 MW photovoltaic solar generating facility and battery energy storage system, to the regional grid at the existing Winchester Substation. The facility is located in Cochise County.
Janice E. Worden and Lawrence A. Worden DBA Worden Water Company (W-20391A-26-0094) Worden Water Company provides service to 27 customers located about 20 miles southwest of Tucson. The Company is not in compliance with Commission standards for not filing its 2025 annual report and is also not in compliance with Arizona Department of Environmental Quality (ADEQ) for violating E.coli and copper monitoring and reporting. The Company has since come into compliance with ADEQ monitoring standards. Staff found the Worden’s water system had a test year water loss of 20.9%, the Commission’s water loss standard is 10%. The company’s rates have not been updated since 1992. The new rates approved by the Commission will result in approximately a 111% increase for residential customers with average usage, from about $19.70 a month to about $41.66 a month. Commissioner Kevin Thompson addressed the company’s manager during the meeting, saying “I think this is a perfect example of a utility not doing its customers a favor. You’re not investing in your utility on a regular basis, you got a 21% water loss, you have a failing well, you failed ADEQ, you came in for an emergency surcharge … now you’re hitting your customers with a 111% rate increase. I think you need to do better.”
Quail Creek Water Company, Inc., Ridgeview Utility Company, and Lago Del Oro Water Company (W-02514A-25-0192, W-03861A-25-0193, W-01944A-25-0194, W-02514A-25-0216, W-03861A-25-0217, and W-01944A-25-0218) The Commission approved the financing application and consolidation of Quail Creek, Ridgeview, and Lago Del Oro into a single Arizona public service corporation known as JW Water Utility Company, which serves more than 10,000 customers in Pinal and Pima Counties. The monthly bill impact for customers with average water usage will result in an approximately 25% rate decrease for residential customers, slashing an average $8.59 per month for customers in Quail Creek, and reducing monthly bill by an average of $12.43 a month for customers in the Ridgeview divisions. Meanwhile, customers in the Lago Del Oro division could see an approximate 18% increase in their monthly water bills, increasing by an average of $4.10 per month.
Liberty Utilities (Lichfield Park Water and Sewer) Corp. (W-01427A-25-0126, SW-01428A-25-0127, W-01427A-25-0163 and SW-01428A-25-0163) The Commission approved several decisions in the Liberty Utilities (Litchfield Park Water and Sewer) rate case. Liberty provides water and wastewater services to more than 22,000 customers in areas of the west valley. The Commission approved an Annual Rate Adjustment Mechanism (ARAM) and adopted key ratepayer protection amendments to limit shareholder-backed expenses and structure future adjustments. Two amendments offered by Vice Chair Rachel Walden were approved – resulting in a reduction of 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. A 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. At this time, the bill impacts are still being calculated to include the Commission’s amendments. Preliminary estimates show the average monthly residential water bill may increase by less than 30% to approximately $30.00 a month; while the average residential wastewater bill may increase by about 43% to approximately $65.00 a month.