Notice of hearing on EPCOR Water Arizona rate application and consolidation proposal

Public notice of hearing and public comment meetings on EPCOR Water Arizona Inc.’s application to increase the rates and charges for water utility service, and for consideration of consolidation and other proposals, for its Gateway (Mohave), Paradise Valley, Rio Verde, Sonoran, Sun City, and Sun City West Water Districts.

On June 29, 2026, EPCOR Water Arizona Inc. (“EPCOR”) filed with the Arizona Corporation Commission (“Commission”) a Rate Application requesting a determination of the fair value of its plant and property used to provide water utility service to its Gateway (Mohave), Paradise Valley, Rio Verde, Sonoran, Sun City, and Sun City West Water Districts (all of the water districts other than the San Tan Water District); increases in its rates and charges for such water utility service; and consideration of EPCOR’s proposal to consolidate these districts (other than the Paradise Valley Water District), in three steps (each one year), into the Sonoran Water District. EPCOR also proposes to reduce the Paradise Valley Water District’s rate design from five tiers to four tiers and to maintain it as a standalone district until a future rate case. EPCOR’s Application uses a test year ending December 31, 2025, and proposes an overall revenue increase of approximately $41.1 million, or approximately 30.1%, over adjusted test year revenues of $136,770,985.

EPCOR further requests approval of proposed Formula Rate Plans – Annual Rate Adjustment Mechanisms (“ARAMs”) – for its Paradise Valley Water District and the Sonoran Water District. If approved, the ARAMs, as proposed, would allow EPCOR to request up to five annual adjustments to rates before its next full rate case. The ARAM would provide a mechanism to adjust rates up or down in a given year prior to the next full rate case if EPCOR’s earnings fall below or above a specified earnings range in the previous year. Rates would remain the same year to year if EPCOR’s earnings fall within the range. Any ARAM adjustment would be subject to Commission approval. If the ARAMs are approved, EPCOR proposes to eliminate its current Purchased Water Adjustor Mechanisms (“PWAMs”) and Power Cost Adjustor Mechanisms (“PCAMs”).

If the Commission decides not to approve ARAMs for the Paradise Valley and Sonoran Water Districts, EPCOR alternatively proposes to keep and modify its existing PCAMs and Tank Maintenance Programs, to replace its existing PWAMs with a new Sustainable Water Surcharge mechanism, and to implement a new System Reliability Benefit mechanism.

Regardless of ARAM approval, EPCOR also requests to continue its Low-Income Assistance Program and to continue and modify its Deployed Service Member Credit Program and Disabled Military Veteran Credit Program to provide recovery of the deferred and subsequent costs annually. EPCOR also seeks to double its existing common facilities hook-up fees for each district included in this rate case, to ensure that growth pays for growth. Additionally, EPCOR requests approval of a new Emergency Water Augmentation Surcharge Plan of Administration, to be used in case of an emergency need to secure additional water supplies, and approval to recover its rate case expense through a surcharge. Additional requests are set forth in EPCOR’s Application and related filings.

EPCOR estimates the proposed rates and charges would result in the following monthly bills for a residential customer served by the typical residential meter size with a 7,000 gallon water usage:

Neither the Commission’s Utilities Division (“Staff”) nor any intervenor has yet made any recommendation regarding EPCOR’s 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 application based on the evidence presented in this matter. The final rates approved by the Commission may be higher, lower, or different than the rates proposed by EPCOR or by other parties.

If you have any questions concerning how the Application may affect your bill or other substantive questions about the 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 Application are available from EPCOR at www.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 April 19, 2027, at 10:00 a.m., at the Commission’s offices at 1200 West Washington Street, HR 1, Phoenix, Arizona 85007.

In addition to the public comment meetings identified below, a public comment meeting will be held at the beginning of the first day of hearing, and comment may be provided in person or telephonically. To provide telephonic public comments, call 1-877-309-3457 and enter passcode 801972877##.

The Commission will hold the following public comment meetings in this matter at the Commission’s offices at: 

Written public comments may be submitted by mailing a letter referencing Docket No. WS-01303A-26-0110 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 “Meetings & Cases” 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 by 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 November 3, 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:

    a. 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.),

    b. How you will be directly and substantially affected by the outcome of the case, and

    c. 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 November 3, 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, email 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