Far West rate decision delayed again

The state agency that regulates utilities gave a Yuma sewer company two more weeks before it decides on an emergency interim rate increase.

Members of the Arizona Corporation Commission (ACC) said it will hold off two more weeks before deciding on the emergency interim rate increase for local Far West Water and Sewer Co. The commission made the decision at its open public meeting in Phoenix Thursday.

The proposed increase would affect about 7,300 residential sewer customers. If passed, the increase could raise rates for sewer customers of Far West by almost 110 percent.

The commission heard from representatives from Far West, the ACC staff, the Residential Utility Consumer Office and members of the public at its hearing Thursday.

The decision has been continued twice, with Far West legal representative Norman James telling the commission that stockholders with the company are in the process of securing a $5.5 million loan. James is with the Phoenix-based Fennemore Craig Law Firm.

The move would help Far West pay debts, James previously told the commission.

He said the company hopes to negate the possibility of the commission appointing an interim manager after questions were raised over management at the company.

James said the company worries that if an interim manager is appointed, the company could have trouble securing loans in the future.

Commissioner Gary Pierce said the commission is at the end of its rope with the issue.

"I would start moving heaven and earth to make sure this happens in the next two weeks," he said.

Commissioner Paul Newman said one question is how exactly the company plans to use the loan.

"The company should be prepared to say how the cash infusion will affect our ultimate decision," Newman said. "We would really like to know what the plan is and how the behavior's going to change.

A call to James at his office was not returned Thursday.

Chairman Kristin K. Mayes said she also wanted to know more about the loan, which James said the company would file documentation of before the next hearing.

The case is scheduled for the commission's next Securities Public Hearing on Dec. 3.