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ACC-Utilities Division Data Request – JULY, 2016

BEFORE THE ARIZONA CORPORATION COMMISSION

DOUG LITTLE, CHAIRMAN

BOB STUMP, COMMISSIONER

BOB BURNS, COMMISSIONER

TOM FORESE, COMMISSIONER

ANDY TOBIN, COMMISSIONER

 

IN THE MATTER OF THE APPLICATION OF

EPCOR WATER, INC. FOR   A DETERMINATION OF THE CURRENT FAIR VALUE OF ITS UTILITY PLANT & PROPERTY & FOR INCREASES/DECREASES IN ITS RATES & CHARGES BASED THEREON FOR UTILITY SERVICE BY ITS AGUA FRIA, ANTHEM,MOHAVE,SUN CITY & SUN CITY WEST WASTEWATER DISTRICTS & FOR CONSIDERATION OF CONSOLIDATION AND DE-CONSOLIDATION PROPOSALS

 

Docket No. WS-01303A-16-0145

Mr. Thomas Broderick

Director

Utilities Division

 DATA REQUEST OF GREG EISERT ON BEHALF OF SUN CITY HOME OWNERS ASSOCIATION

One of the factors in this case pertains to the issue of the Consolidation of the Sun City District with the currently and historically remaining four EPCOR Wastewater Districts.

The Sun City Home Owners Association (SCHOA) has been approached by various factions including interveners from the other concerned EPCOR Districts affected by this rate case, for the purpose of entering Settlement Agreement discussions.  The main issue of contention is that of the full consolidation of all five EPCOR Districts.

State and Federal cases dating back to 1899 address the issue of “used & useful” pertaining to fair and reasonable value and the notion, that the property thereof must exist and be used & useful for the public.**  Historically, regulatory and court opinion prescribes that a utility’s operating expenses may not be recovered in rates, and that even prudently-incurred costs of plant will not be included in rate base, unless a benefit from such expenditures inures to the benefit of present ratepayers.  Further notations have been noted in cases that an item may be included in rate base only when it is ‘used and useful’ in providing service.  In other words, current rate payers should bear only legitimate costs of providing service to them.  The ratepayer cannot be charged for infrastructure that does not yet exist.

Before our group could engage in any discussions regarding a settlement of the consolidation issue we must be reassured of the legality of full consolidation as a base premise from witch to proceed.

As a representative bound to the protection of all ratepayers, we, respectfully petition the Utilities Division to provide SCHOA an opinion as to the legality of forced consolidation within the bounds of the used and useful principle.

Respectfully submitted:     __________________________________

Greg Eisert, Director, Chairman Government Affairs

Sun City Home Owners Association

10401 W Coggins Drive

Sun City, AZ  85351

 

** San Diego Land & Town Co. v. National City, 174 U.S> 739, 756 (1899), Wilcox v. Consolidated Gas Co., 212 U.S. 19, 41 (1909), Tennessee Gas Pipeline Co. v. FPC, 561F.2d 955, 958(D.C. Cir. 1977), Tennessee Gas Pipeline Co. v. FERC, 606 F.2d 1094 (D.C. Cir. 1979), cert. denied, 445 U.S. 920, cert. denied, 447 U.S. 922 (1980)…

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Sun City Home Owners Association
10401 W. Coggins Drive
Sun City, AZ 85351
Main - 623-974-4718
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