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PHOENIX — Arizona Water Company presented a plan to the Arizona Corporation Commission Tuesday to reduce customer rates in its western group, which includes Casa Grande, Coolidge and Stanfield.

Commissioners want to assure federal tax reform law directly benefits utility customers by passing federal tax savings on to the ratepayers, according to a press release. Commissioners have voted to award federal tax reform money directly to utility customers.

Tuesday commissioners approved $1.4 million in tax savings, which results in a one-time bill credit ranging from $2.26 to $4.26 in the northern group of Arizona Water Company and a $2.90 to $3.69 bill credit in the western group for the month. Going forward, commissioners voted to ensure a 3.6-percent rate reduction in monthly rates for the western group and a 4-percent reduction in monthly rates for the northern group.

The utility presented a plan for the eastern group — which includes Apache Junction, Superior, Oracle and San Manuel — to the commissioners in February to gain approval for a total of $154,257 in income tax expense credit to ratepayers.

The new federal tax reform law affects every regulated utility that maintains a corporate tax liability. Commissioner Justin Olson led Corporation Commission efforts to require all regulated utilities to pass tax reform savings to customers by utilizing his background as a tax expert in both the private and public sector.

In February, commissioners enacted a requirement of all public service corporations listed in the docket to address ratemaking impacts resulting from recent federal tax reform. Affected utility companies must file appropriate information with the Corporation Commission by April 7 to address how they will incorporate the impacts of the Tax Cuts and Jobs Act signed into law late last year.


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