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RUCO v. ARIZONA CORPORATION COMMISSION

No. 1 CA-CC 99-0008.

20 P.3d 1169 (2001)

199 Ariz. 588

RESIDENTIAL UTILITY CONSUMER OFFICE, an agency of the State of Arizona, Appellant, v. The ARIZONA CORPORATION COMMISSION, an agency of the State of Arizona, Appellee, and Rio Verde Utilities, Inc., Appellee-Intervenor.

Court of Appeals of Arizona, Division 1, Department E.

March 27, 2001.

Attorney(s) appearing for the Case

Residential Utility Consumer Office by Scott S. Wakefield and Jessica Carpenter, Phoenix, Attorneys for Appellant.

Arizona Corporation Commission by Robert J. Metli and Janet F. Wagner, Phoenix, Attorneys for Appellee.

Sallquist & Drummond, P.C. by Richard L. Sallquist, Phoenix, Attorneys for Intervenor Rio Verde Utilities, Inc.

Fennemore Craig by Norman D. James and Jay L. Shapiro, Phoenix, Attorneys for Amicus Curiae Water Utilities Association of Arizona.

OPINION

GARBARINO, Presiding Judge.

¶ 1 We hold that in the absence of an emergency or automatic adjustment clause, the Arizona Corporation Commission cannot impose a rate surcharge based on a specific cost increase without first determining a utility's fair value rate base.

FACTUAL AND PROCEDURAL HISTORY

¶ 2 In July 1999, Rio Verde Utilities, Inc. filed an application with the Arizona Corporation Commission (the Commission),...

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