Water Issues

On May 1, 2008, Arizona-American Water Company, Inc. ("Arizona-American" or "Company"), a wholly owned subsidiary of American Water Works Company (NYSE: AWK), filed an application with the Arizona Corporation Commission ("ACC" or "Commission") requesting rate increases for the following system:

Initial closing briefs are due on Friday, May 1, 2009. This will be followed by a round of reply briefs on Friday, May 15, 2009.

After the filing of closing legal briefs, the Administrative Law Judge will weigh all of the evidence presented during the proceeding (including public comments and correspondence from concerned ratepayers) and will issue a Recommended Opinion and Order ("ROO"). The ROO will be then be voted on by the five sitting ACC Commissioners at a noticed Open Meeting. The Commissioners can either accept, reject or amend the ROO during the Open Meeting.

A final decision on Arizona-American's request for an increase in rates is not expected until sometime during the summer of 2009.

PV will restructure its water committee click for more details

The Assured Water Supply program was created as part of the historic 1980 Groundwater Management Act, and operates within Arizona’s five Active Management Areas. Every developer is required to demonstrate an assured water supply that will be physically, legally, and continuously available for the next 100 years before the developer can record plats or sell parcels. The ADRE will not issue a public report, which allows the developer to sell lots, without a demonstration of an assured water supply. The developer can prove a 100 year supply by satisfying the requirements to obtain a Certificate of Assured Water Supply or by a written commitment of service from a provider with a Designation of Assured Water Supply.

The Arizona American Water Co. goes before the Arizona Corporation Commission Thursday, March 19, 2009 at 1:30 p.m. to request a rate hike of 22% that would affect 4,700 customers in Paradise Valley and Scottsdale.

Residents served by the private Arizona American Water Co. experienced sticker shock in 2006 when the Arizona Corporation Commission approved a controversial new rate schedule that included a surcharge for residential and commercial customers who are high water users.

Of Arizona American's approximately 4,700 customers, 20 percent of those are high-block users - residential customers using more than 80,000 gallons per month and resort and other commercial customers using more than 400,000 gallons monthly.

After hearing from town officials, resort operators and residents, the commission agreed to reopen the rate case. That hearing was May 15 at the Commission, 1200 W. Washington St. As a result, water rates fell temporarily.

American Water Company Description

Water, water, everywhere -- and American Water Works (formerly American Water) wants to own it. The company, a subsidiary of German utility giant RWE, is one of the largest water utility holding companies in the US. Through its regulated utilities and its contract services division, American Water Works serves more 16.2 million consumers in 32 US states, Canada, and Puerto Rico. The company also provides wastewater treatment in some of its service areas. Nonregulated subsidiary American Water Works Service provides contract management services for water and wastewater systems. In 2007 RWE filed to spin off American Water Works via an IPO.

Water Issues News.....

Water company to ask panel for 22% rate hike	March 17, 2009
Testy residents hear about water-rate plans	Oct. 29, 2008
Anthem's plumbing sparks lawsuit	Oct. 11, 2008
Scottsdale officials keep eye on fissure	Sept. 6, 2008
Private water firm's rates fall temporarily	Sept. 5, 2008
Councilman senses 'threat' from water company	May 30, 2008
EPA cuts off use of faulty Scottsdale well	May 22, 2008
Motorola, 2 firms fined $500K total in tainted-water case	May 19, 2008
Scottsdale mulls water firm action	May 11, 2008
Companies trying to prevent water pollution	May 9, 2008
PV council to discuss water use plan	May 5, 2008
Contaminated water being treated, discharged	April 29, 2008
Water firm's officer vows better service	April 28, 2008
Councilwoman urges water-saving effort	April 24, 2008
Progress report expected on water quality	April 21, 2008
New date for water plant	April 13, 2008
Utility panel reopen PV water rate case	March 20, 2008
Council to consider absorbing water accounts from company	March 19, 2008
Commission will open water-bill case	February 29, 2008
Water company vows not to use tainted well	February 17, 2008