This is the fourth year the Water Utilities Association of Arizona has sought authority for water companies to pass through to customers increases in costs over which they have no control, such as wholesale water, energy, and regulatory compliance costs.
Current law requires water companies to request a formal rate hearing.
New rates take effect on an interim basis if the ACC fails to act on the formal rate request within six months for small water companies, or within nine months for larger ones. Originally introduced as HB 2137, the bill stalled in the House Rules Committee on the issue of whether it constituted an unconstitutional limitation on the ACC's rate-setting authority. The measure reappeared in the Senate as a strike-all amendment to HB 2189. It passed out of the Senate government committee after assurances it would be amended on the Senate floor to allow operating savings as well as costs to be passed through to customers. The bill ultimately was defeated on the Senate floor, in part due to opposition from retirement communities.