Notice of hearing for San Tan Water and Wastewater District

On July 22, 2025, the Arizona Corporation Commission (“Commission”) issued Decision No. 81415, in which the Commission established new rates for EPCOR’s San Tan Water and Wastewater Districts (collectively “San Tan Districts”) that reflected revenue increases of 14.5% and 35.2%, respectively. The Commission also authorized EPCOR, within 90 days after the effective date of the decision, to file a formula rates proposal for the San Tan Districts, to be considered in a Phase 2 to this docket, and imposed requirements for EPCOR’s formula rates proposal.

On September 25, 2025, EPCOR filed a Request for Approval of Formula Rates – Annual Rate Adjustment Mechanism (Phase 2) (“ARAM Application”), requesting Commission approval of an ARAM for each of the San Tan Districts and setting forth the proposed requirements for each ARAM. If the ARAM Application is approved, each ARAM would authorize a streamlined and expedited rate adjustment process to occur on an annual basis, allowing for an increase in rates if either District’s revenues for the prior calendar year represent an amount lower than the return on equity (“ROE”) authorized in the most recently concluded full rate case for the District (“authorized ROE”) minus 20 basis points. Each proposed ARAM also could result in a decrease in rates if a District’s prior calendar year revenues represent an amount higher than the authorized ROE plus 20 basis points. As proposed in the ARAM Application, each annual ARAM update would include proposed updated fair value rate base, revenue, and expense calculations. If the ARAM Application is approved, several separate adjustor mechanisms and surcharges would be replaced by the ARAM (for the San Tan Water District, those for the Tank Maintenance Program, Sustainable Water Surcharge, Power Cost Adjustor Mechanism, and customer assistance programs (though the customer assistance programs would remain) and for the San Tan Wastewater District, those for the Power Cost Adjustor Mechanism and customer assistance programs (though the customer assistance programs would remain). The ARAM Application includes proposed provisions for customer notification of each annual ARAM update filing, participation in the annual ARAM update process by interested persons, and the Commission’s consideration and approval process for the annual ARAM update.

Neither the Commission’s Utilities Division (“staff”) nor any intervenor has yet made any recommendation regarding EPCOR’s ARAM Application. The commission is not bound by the proposals of EPCOR, staff, or any intervenors. The Commission will determine the appropriate relief to be granted in response to EPCOR’s ARAM Application based on the evidence presented in this matter. The Commission may approve or deny the ARAM Application and may approve formula rate mechanisms for the San Tan Districts that are different than those proposed in the ARAM Application.

If you have any questions concerning how the ARAM Application may affect your bill or other substantive questions about the ARAM Application, you may contact EPCOR at: 1-800-383-0834, or by email at ratecasequestions@epcor.com, or by mail to 5350 W Bell Road Suite 122, Glendale AZ 85308.

Copies of the ARAM Application are available from EPCOR Water Arizona Inc at epcor.com; at the Commission’s Docket Control Center at 1200 West Washington Street, Phoenix, Arizona, and 400 West Congress Street, Suite 218, Tucson, Arizona, during regular business hours; and on the Commission website (www.azcc.gov) using the e-Docket function.

The Commission will hold a hearing on this matter beginning July 27, 2026, at 10:00 a.m., or as soon as practicable thereafter, at the Commission’s offices at 1200 West Washington Street, Phoenix, Arizona 85007.

The Commission will hold the following public comment meetings in this matter at the Commission’s offices at 1200 West Washington Street, Phoenix, Arizona 85007:

During public comment meetings at the Commission’s offices, both telephonic and in-person public comment may be provided.

Written public comments may be submitted by mailing a letter referencing Docket No. WS-01303A-24-0130 to Arizona Corporation Commission, Consumer Services Section, 1200 West Washington, Phoenix, AZ 85007, or by submitting comments on the Commission’s website (www.azcc.gov) by clicking on “Divisions” and then “Hearing,” scrolling down to “eFiling Services,” and clicking on “Make a Public Comment in a Docket.” If you require assistance, you may contact the Consumer Services Section at 602-542-4251 or 1-800-222-7000.

If you do not intervene in this matter, you will receive no further notice of the proceedings in this matter unless you sign up to Follow the Docket. However, all documents filed in this matter are available online (usually within 24 hours after docketing) at the Commission’s website (www.azcc.gov) using the e-Docket function. Information on how to Follow a Docket is available on the Commission’s website clicking on “Divisions” and then “Hearing” and then “Following a Docket.”

The law provides for an open public hearing at which, under appropriate circumstances, interested persons may intervene. An interested person may be granted intervention if the outcome of the case will directly and substantially impact the person, and the person’s intervention will not unduly broaden the issues in the case. Intervention, among other things, entitles a party to present sworn evidence at hearing and to cross-examine other parties’ witnesses. Intervention is not required for you to appear at the hearing and provide public comment, to file written comments in the docket for the case, or to receive emailed notice of each filing made in the case by following the docket.

Information about what intervention means, including an explanation of the rights and responsibilities of an intervenor, is available on the Commission’s website (www.azcc.gov) by clicking on “Divisions” and then “Hearing” and then “Intervene in a Case.” The information includes a Sample Intervention Request and a Fillable Intervention Request Form.

To request intervention, you must file a written request to intervene, either (a) by filing a hard copy request (meeting filing requirements) with Docket Control (Docket Control, 1200 West Washington, Phoenix, AZ 85007), or (b) by eFiling the request. Your request must be filed or eFiled no later than January 12, 2026. Instructions and restrictions for eFiling are available on the Commission’s website at http://azcc.gov/hearing/efiling. You also must serve a copy of the request to intervene on each party of record, on the same day that you file the request to intervene with the Commission.

Your request to intervene must contain the information below:

1. Your name, address, and telephone number;
2. The docket number for the case in which you are requesting to intervene;
3. A short statement explaining:
   - Your interest in the proceeding (e.g., a customer of the regulated company involved, a property owner in an area to be affected by the case, etc.),
   - How you will be directly and substantially affected by the outcome of the case, and
   - Why your intervention will not unduly broaden the issues in the case;
4. A statement certifying that you have sent a copy of your request to intervene to the regulated company or its attorney and to all other parties of record in the case and showing the names of the parties to whom service was provided and the addresses (which could be email addresses) used; and
5. If you are not represented by an attorney who is an active member of the Arizona State Bar, and you are not representing yourself as an individual, sufficient information and any appropriate documentation to demonstrate compliance with Arizona Supreme Court Rules 31.1, 31.2, 31.3, 38, 39, and 42, as applicable. This only applies if you are NOT representing yourself and you are not a licensed attorney.

The granting of motions to intervene shall be governed by A.A.C. R14-3-105, except that all motions to intervene must be filed on or before January 12, 2026.

The Commission does not discriminate on the basis of disability in admission to its public meetings. Persons with a disability may request a reasonable accommodation such as a sign language interpreter, as well as request this document in an alternative format, by contacting the ADA Coordinator for the Hearing Division, E-mail HearingDivision@azcc.gov, voice phone number 602-542-4250. Requests should be made as early as possible and no later than 48 hours in advance of the event to allow time to arrange the accommodation.