Residential Utility Consumer Office v. Arizona Corporation commission/arizona Water Company

JUSTICE BRUTINEL,

opinion of the Court:

¶ 1 The Arizona Corporation Commission (“Commission”) determines the rates that a public service corporation (a “utility”) may charge. The Arizona Constitution requires the Commission to determine the fair value of a utility’s in-state property when setting rates, which historically has occurred in a full rate case. During a full rate case, the Commission scrutinizes a utility’s financial picture and holds many hearings—often extending more than a year. Here the Commission approved a rate increase mechanism known as the system improvements benefit…