Far West seeks interim rate increase
Far West Water and Sewer Co. is seeking an interim emergency rate increase for sewer services while its permanent rate case is pending.
According to the company's application before the Arizona Corporation Commission, Far West is seeking "immediate implementation of interim rates" for sewer service that would raise an additional $2.2 million over the company's 2007 revenue.
If granted, customer rates would increase by approximately 109.6 percent. This means residential customers would pay $45.59 a month and commercial customers would pay $91.18 while the charge per space at recreational vehicle parks would become $11.40.
This is a separate case from an earlier application by Far West for a permanent rate increase of more than 200 percent over a three-year period, said Rebecca Wilder, spokeswoman for the ACC, which regulates utility companies.
She said the emergency increase could be granted within a couple of months. The permanent rate increase process takes several months and, if granted, likely wouldn't go into effect until late this year at the earliest, she said.
Far West Water and Sewer Co. serves approximately 8,000 residential and commercial customers in the unincorporated area east of Yuma.
Many of them were stunned and angered by news of the request for the permanent rate increase. Some customers have begun a petition drive to the ACC opposing the hike.
Far West has said it needs the additional revenue to cover the cost of approximately $20 million in improvements and new construction for its wastewater treatment system.
The emergency rate increase is necessary to ensure that the company remains solvent and able to continue providing utility services to its customers pending the outcome of its permanent case, according to Far West's application, a copy of which was provided to The Sun by the ACC.
"The company is in dire need of interim relief," Far West's newest application stated. "While the company is not yet insolvent, the threat of insolvency certainly constitutes an emergency. ... the financial condition of the company is such that its ability to maintain service pending a formal rate determination is in serious doubt."
Far West officials were not available for comment Thursday.
If the ACC approves the permanent application in full, Far West is proposing to increase its sewer rates in three phases: by approximately 150 percent the first year, by another 18 percent the second year and an additional 16 percent the third year.
If the final increase is less than an emergency rate, the company would refund customers the difference, according to its new application.
A public hearing had already been scheduled regarding the permanent rate case, to be held at 6 p.m. March 5 at Sunrise Elementary School, 9943 E. 28th St.
Wilder said the public can also comment on the emergency case during that meeting.
In addition, people can send written comments to the Arizona Corporation Commission, Consumer Services Section, 1200 W. Washington St., Phoenix, AZ 85007. Or they can e-mail by going to www.azcc.gov, click on forms and go to hearing/docket control, then public comment forms. They can also call the Consumer Services Section at 1-800-222-7000.
The docket number of the emergency case is WS-03478A-08-0608. The docket number for the permanent case is WS-03478A-08-0454.
---
Joyce Lobeck can be reached at jlobeck@yumasun.com or539-6853.
