Residential Utility Consumer Office v. Arizona Corp. Commission

OPINION

GARBARINO, Presiding Judge.

¶ 1 We hold that in the absence of an emergency or automatic adjustment clause, the Arizona Corporation Commission cannot impose a rate surcharge based on a specific cost increase without first determining a utility’s fair value rate base.

FACTUAL AND PROCEDURAL HISTORY

¶2 In July 1999, Rio Verde Utilities, Inc. filed an application with the Arizona Corporation Commission (the Commission), pursuant to Senate Bill 1252,1 seeking authorization to impose a surcharge to recover increases in the cost of water purchased from the Central Arizona Project (CAP). The…