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Rate Case FAQs |
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Q: Why does Sunrise Water Co. want to raise my water rate?
A: Like many businesses, Sunrise has recently experienced significant increases in labor, power and materials costs. Sunrise also is committed to investing in system upgrades to comply with new regulations and ensure our customers continue to have confidence in the water we deliver. Thus, we have filed a request for a rate review with the Arizona Corporation Commission.
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Q: How much more will I be paying for my water?
A: The amount may vary depending on your meter size and usage. For example if you have a ¾” meter and use 17,782 gallons your bill would increase from $62.68 to $73.86. The Arizona Corporation Commission (“ACC”) will have the final word in determining the amount of the rate increase, if any, that is approved.
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Q: When will the rate increase take effect?
A: The rate case process usually takes about one year. We expect any increase would become effective no sooner than August 2009.
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Q: What is the process for making a rate change?
A: Sunrise Water Co. has started the process by filing a rate application with the Arizona Corporation Commission (ACC). The ACC staff has determined that the application has met the ACC’s filing requirements. The ACC staff will now thoroughly review the application and may ask Sunrise to provide additional information. A public hearing will be held before an Administrative Law Judge with testimony provided by Sunrise personnel supporting the rate case and by the ACC staff on the findings of their review. The Judge will write a recommendation order for the five Commissioners to consider. The Commissioners can choose to accept the order, modify the order or reject the order. New rates, if approved, would go into effect once the Commissioners render a decision. This process typically takes 12-14 months from start to finish.
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Q: Will there be any other changes to my bill?
A: Yes. For the past several years the Arizona Corporation Commission (ACC) has required water utility companies to use a tiered rate structure. With a tiered rate structure, the cost of water increases as water usage increase. For example, for a ¾-inch meter, water usage in the 0 to 4,000 gallon tier will cost less per gallon than water usage in the next tier of 4,001 to 18,000 gallons. The number of tiers and water usage included in each tier vary depending on the size of the meter providing service to your home or business. The ACC has encouraged use of the tiered rate structure to promote water conservation. Sunrise will transition to the tiered rate structure once the new rates, if approved, take effect in 2009.
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Q: What new regulations does Sunrise have to meet and how does it propose meeting them?
A: Numerous water samples are taken at regular intervals to ensure the water delivered to your homes is safe and reliable. The biggest regulatory change that has incurred occurred in recent years involves the maximum level of Arsenic allowed in drinking water. As of Jan. 23, 2006, the maximum level allowed for Arsenic was reduced from 50 parts per billion (ppb) to 10 ppb. Sunrise had one (1) well that did not meet the 10 ppb and, after careful evaluation of many options, decided to take the well that was not in compliance out of service. Sunrise participated with developers in the construction of a new well, storage and pumps to replace the well that was taken out of service. Sunrise also installed additional water lines to further improve water deliveries to all of our water service area.
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Q: The proposed rate change seems like a big increase. How does it compare to other utility company increases?
A: The Arizona Corporation Commission (ACC) has jurisdiction over the service and rates of all public service utilities in Arizona. The ACC staff does an extensive review and audits the process to ensure that all approved rate increases are required to meet the needs of the customers and utility needscompany. It is not unusual for the ACC to recommend a rate increase that is less than requested by the utility company.
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Q: Why had Sunrise waited so long to raise its rates?
A: Through a combination of customer growth and reinvesting company profits into infrastructure improvements, Sunrise has been able to hold the line on rates for the last 25 years. We take pride in being fiscally conservative while providing customers with reliable, high-quality water. Changes in the economy and regulatory environment, however, make a rate increase necessary.
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Q: Can I receive any kind of financial assistance to off set the increase?
A: Yes. On our Web site, click on Web Links and follow the directions for financial assistance.
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Q: How can I get additional questions answered?
A: There will be an official public comment period but we welcome your questions and comments at any time. You can submit questions by email to info@jdcwater.com or call us at (623) 972-6133. You also can submit questions through our Web site by clicking on the Questions? Link, completing the form and pressing send.
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