Corporation Commission to hold public meeting regarding Global Water rate increase
The Arizona Corporation Commission will be in Maricopa on Tuesday night to hold a public comment meeting on a request for a rate increase by Global Water Resources.
Global is seeking an overall gross revenue increase of $3,061,292 (34 percent) over current operating revenues for it’s Santa Cruz water customers in Maricopa. Under the company’s proposal, a Santa Cruz residential water customer served by a 5/8-inch water meter, with average usage of 7,827 gallons per month, would experience an increase from current monthly charges of $42.75 to charges of $49.75 per month ($7.00 monthly increase or 16 percent). The actual percentage rate increase for Individual customers would vary depending on the type of service provided.
For its Palo Verde wastewater system, Global is asking for an overall gross revenue increase of $8,493,379 (130 percent) over current operating revenues. Under the company’s proposal, a residential customer served by a 5/8-inch water meter would experience an increase from the current monthly rate of $33.00 to a rate of $71.11 per month ($38.11 monthly increase or 115 percent). Once again, the actual percentage rate increase for individual customers would vary depending on the type of service provided.
In a statement on the company’s website, Global offered the following answer as to why they seek the rate increase:
"One of the major reasons is that the rates for the companies in this rate case were established eight to 10 years ago. Since then, many of our costs have increased dramatically. In addition, Global Water has built significant amounts of infrastructure to service these regions. In Maricopa we have built over $200 million worth of water, wastewater and recycled water infrastructure.
The timing of our proposed rate increases is not ideal. We are in the midst of a severe recession and an unprecedented real estate market collapse and our customers are suffering. But we have to ensure that our utilities remain financially stable so that they can continue to provide quality service. Even though we are seeking considerable rate increases, we have also proposed several significant steps to help reduce the rate increase – steps which allow the consumer the ability to control their own costs."
The commissioners will begin with opening remarks and then devote the meeting to residents who wish to comment on the impact of the company’s request and the quality and reliability of service the company provides. A large crowd is expected to attend.
Local homeowners’ associations, upset by the proposed Palo Verde rate hikes, have been urging their residents to attend and speak out. The parks and greenbelt areas in most local communities are irrigated with treated wastewater from the Palo Verde operation. The HOA boards say the dramatic increase in rates would hurt their ability to properly maintain community landscaping, and would most likely result in dramatic increases in HOA dues. Some HOA’s are already struggling due to unpaid dues on foreclosure homes in their neighborhoods.
The Maricopa City Council has moved their regular meeting one day earlier due to Tuesday’s ACC meeting. The rate issue is on the agenda for the Council tonight. The council will discuss and vote on a resolution asking for relief from the proposed rate increase. Click here to read the full text of the resolution.
Hearings on the rate case will begin on December 15th, 2009 at the Corporation Commission’s headquarters in Phoenix. An administrative law judge presides over the hearings and will issue a "recommended order" that will come before the commissioners at a later date for discussion and vote.
If approved, the rate increase would likely go into effect around February of 2010.
If you go:
The Arizona Corporation Commission’s public comment meeting on the Global Water rate increase request will be held Tuesday, December 1st, 2009, at Maricopa Wells Middle School, 45725 West Honeycutt Avenue in Maricopa. Take John Wayne Parkway (SR347) to Honeycutt Avenue (south of the RR tracks, by Maricopa High School), then go west one half-mile. Maricopa Wells is on the left just before the bridge.
Meeting begins at 6:30 pm in the school’s multi-purpose room.
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This is a joke we already pay a minamum of $80 a month we just moved from casa grande and we never payed over $24 a month and now they want to raise our bills to over $115.00 month something needs to be done with global water and all of the utilitie companies in maricopa or else we will loose even more people cause we cant afford to live here when just your water and electric bills are more then our house payment