Reports

Voyager at White Mountain Lakes Water Company, Inc.
PO Box 90890
White Mountain Lake, AZ 85912
 

June 23, 2023
 

Arizona Corporation Commission
Docket Control
1200 West Washington Street Phoenix,
Arizona 85007
 

Re: Emergency Rate Case Application DOCKET NO. W-01983A-23-0166
 

Voyager at White Mountain Lakes Water Company, Inc. (“Voyager” or “Company”)
hereby files this Emergency Rate Application, (“Application”). The Company is requesting
an Emergency Rate Surcharge to collect $302,658 annually by implementing a monthly
surcharge in the amount of $29.55 per 5/8 and 3/4-inch metered customer, increasing by
meter size, per month for 24 months. Also, the Company is requesting authorization to
implement an Emergency Water Augmentation Tariff.
 

Attachment 1 provides the detailed calculations for the requested emergency
surcharge. Attachment 2 provides a copy of the requested emergency water augmentation
tariff. Attachment 3 is a copy of the customer notice that will be sent out. Attachment 4
includes supporting documentation for some of the costs being requested in this
application.
 

1. Condition(s) that Constitute an Emergency
 

Voyager at White Mountain Lakes Water Company, Inc. provides water service to
779 connections, as of June 20, 2023 in the White Mountain Lake community in northern
Arizona. The owner of the Company passed away unexpectedly on March 31, 2023, leaving the
Company without a properly certified operator. In addition, the owner had no heirs or
succession plan, so a friend and part time employee has been assisting with the operations of the
Company, but he has other commitments and is unable to devote the necessary time to fully run
the utility. Further, the Arizona Department of Environmental Quality (“ADEQ”) has concerns
about the quality of the water being provided because the Company has not been submitting the
required samples for testing. As such ADEQ is unable to state if the Company is providing
water that meets the Safe Drinking Water Act.
 

Emergency Rate Case
 

2. Requested Emergency Funds
 

The Company requests an emergency surcharge to collect $605,317 over a two-year
period. The Company has entered into a contract with Mogollon Water Management
(“Mogollon”). Mogollon will be providing a properly certified operator(s) to run the
system, including performing the required water testing sampling. The agreement with
Mogollon also includes other services such as scheduled inspections of the facilities,
monitoring water production and usage, making system repairs, and connecting and
disconnecting service. These services are being provided at $20 per connection per
month. The Company believes that $2.50 per month per customer of this expense can be
covered by existing revenues. This results in an annual cost of $163,590 based on the
June 2023 customer count to be recovered through the emergency surcharge. The special
work will be provided as specified in the contract at various hourly rates depending on
who provides the service and the nature of the work. Mogollon has estimated an average
monthly cost of $4,125 for this type of work, based on the services that were provided in
the first month under the contract. All together the Mogollon costs over a two-year period
are estimated to be $426,180. Because it contains competitive information, a copy of the
contract was provided to Staff via email and will not be docketed with this application.
 

The Company has also estimated that $146,204 is needed to pay for system repairs and
upgrades to provide safe and reliable service. These costs are detailed in section 4 of this
application.
 

The Company has not been actively participating in the ADEQ Monitoring Assistance
Program (“MAP”) as required based on the population served. With Mogollon in place,
they have been performing the required sampling, but the Company needs to pay for past
due MAP invoices going back as far as 2014. The total for this is $32,932.68. See
Attachment 4 for the supporting documentation.
 

3. Charge to Customers / Mechanism to Recover
 

The Company proposes to implement a monthly surcharge to recover the requested
$605,317. The proposed surcharge is as follows:
 

                                                         Meter Size          Surcharge
                                                   5/8"x 3/4" Meter        $29.55
                                                    3/4" Meter                     44.33
                                                    1" Meter                         73.88
                                                    1½" Meter                   147.75
                                                    2" Meter                       236.41
                                                     3" Meter                      443.26
                                                     4" Meter                      738.77
                                                     6" Meter                  1,477.54
 

The Company’s current rates were approved by the Arizona Corporation
Commission in Decision No. 62287 and were effective on February 1, 2000. This includes a
$14.00 per month minimum charge and $2.41 per 1,000 gallons of water usage. The
Company estimates that the average customer uses 4,099 gallons per month resulting in an
average monthly bill of $23.88.
 

4. Breakdown of System repairs/Invoices
 

The Company’s certified operator has provided the following cost estimates.
These improvements will better position the system operationally and will help ensure
safe reliable service to the customers.
 

                                             System repairs cost estimates
 

    4 Stenner Chlorine Pumps at $1,000 each, injectors, rollers, plus
maintenance kits, tap saddle to attach to manifold                                      $4,000
    4 chlorine storage containers at $250 each                                                      1,000
    4 drums of Chlorine at $250 each                                                                         1,000
    4 Secondary Containment units at $300 each                                                1,200
    $3,500 for 3 mercury switches for the wells                                                    3,500
    Pressure switch for air compressor                                                                        500
    Building site maintenance materials - roofing, fencing, security
hardware 4 at $7,500 per site                                                                                 30,000
    338 meters to replace those over 1,000,000 gallons, and
approximately 40-50 meters are known to be dead at $95 each             32,110
    4 Sensus production flow meters w/ parts and fittings at $3,500
each                                                                                                                                  14,000
    4 Mission Control Remote Monitoring at $3,500 each                             14,000
    Fencing to secure well sites                                                                                15,000
    Office Equipment, printer/scanner, file cabinets, monitor’s,
computer                                                                                                                          2,500
    Boosters for booster site                                                                                      26,394
    Clay Val Rebuild Kit                                                                                                   1,000
                                                                                                                            Total $146,204.
 

5. Estimate of Cost
 

The cost estimates have been provided in sections 2 and 4 of this application.
 

6. Notice of Emergency Rate Application

The Company is including the required notice in its bills being mailed on June 30,
2023.
 

7. Copy of Notice
 

A copy of the notice provided to customers is provided as Attachment 3.
 

Emergency Water Augmentation Tariff
 

8. Example of Emergency Water Augmentation Tariff

See Attachment 2.
 

                                                  ATTACHMENT 1
 

      Col A                       Col B                    Col C                  Col D                     Col E
                                                                                              Number of           Equivalent
                                      NARUC           Number of         Months in                    Bills
   Meter Size            Multiplier        Customers          Recovery          Col. B x C x D

 5/8"x 3/4"
 Meter                               1             x            770          x          24             =          18,480
 3/4" Meter                     1.5         x               0            x           24             =                    0
 1" Meter                         2.5          x               5            x          24             =                300
 1½" Meter                      5             x               1            x          24             =                120
 2" Meter                          8             x               2            x          24             =                384
 3" Meter                         15            x              0             x          24             =                    0
 4" Meter                         25            x               0            x          24              =                   0
 6" Meter                         50            x               1            x          24              =           1,200
                                                                           779                                                    20,484
 

                          $605,317           Total cost of emergency
                               20,484           Divided by: Total Number of Equivalent Bills
                               $29.55           Monthly Surcharge for 5/8 x 3/4 Customers
 

      Col A                       Col B                    Col C                  Col D                  

                                                                                                Surcharge

                                                                   5/8"x 3/4"                 by
                                      NARUC              Customers'       Meter Size
     Meter Size         Multiplier             Surcharge         Col B x C
 5/8"x 3/4"
 Meter                               1              x           $29.55       =      $29.55
 3/4" Meter                     1.5          x           $29.55        =        44.33
 1" Meter                         2.5           x           $29.55        =       73.88
 1½" Meter                     5              x           $29.55        =     147.75
 2" Meter                         8              x           $29.55        =      236.41
 3" Meter                        15             x           $29.55        =     443.26
 4" Meter                         25            x           $29.55        =     738.77
 6" Meter                         50            x           $29.55        =  1,477.54
 

ATTACHMENT 2
 

EMERGENCY WATER AUGMENTATION SURCHARGE TARIFF
AND PLAN OF ADMINISTRATION
Utility: Voyager at White Mountain Lakes Water Company, Inc. Decision No. TBD
Docket No.: W-01983A-23-0166 Effective Date: TBD
 

I. Purpose and Applicability

Purpose
The purpose of this tariff is to authorize Voyager at White Mountain Lakes Water Company, Inc.
to make monthly adjustments to its rates and charges for water service in order to recover costs
incurred for water purchases and hauling (“Water Augmentation Costs”) in the event that Voyager
at White Mountain Lakes Water Company, Inc. experiences an emergency water shortage as
defined below. The charges will be assessed based on usage as provided below.

Applicability
This tariff was obtained during the processing of a permanent rate application and has been
approved by the Arizona Corporation Commission (“Commission”). This tariff only applies in
the event of an “emergency water shortage” as defined in Section II of the definitions below.

II. Definitions

Unless the context otherwise requires, the definitions set forth in R-14-2-401 of the Commission’s
rules and regulations governing water utilities shall apply in interpreting this tariff schedule.
 

“Affiliate,” means any other entity1 directly or indirectly controlling or controlled by, or under
direct or indirect common control with Voyager at White Mountain Lakes Water Company, Inc..
For purposes of this definition, the term “control” (including the correlative meanings of the terms
“controlled by” and “under common control with”), as used with respect to any entity, means the
power to direct the management policies of such entity, whether through ownership of voting
securities, or by contract, or otherwise.

“Company” means Voyager at White Mountain Lakes Water Company, Inc.
 

“Curtailment Account Balance” means the monies collected under the curtailment tariff authorized
in Decision No. TBD.
“

Emergency Water Augmentation Surcharge” means the surcharge calculated in accordance with
Section IV below.
 

1 A corporation, partnership, limited partnership, joint venture, trust, estate, or natural person.
 

“Emergency Water Shortage” means a water shortage of a serious nature, developing suddenly or
unexpectedly, that is out of the Company’s control, and demanding immediate attention. Water
shortages that are a recurring situation, for example, each year the utility needs to haul water every
August, would not qualify as an emergency.
 

“Surcharge Rate” means the rate per 1,000 gallons that is calculated in accordance with Section
III below.
 

“Water Augmentation Cost” means the actual cost of water purchased and water hauling costs.
 

“Water Augmentation Quantity” means the actual quantity of augmented water (in thousands of
gallons).
 

“Water Sold” means the actual quantity (in thousands of gallons) of water sold by the Company
to its Customers during the month corresponding to the month in which water was purchased.
 

III. Surcharge Rate Calculation

The surcharge is calculated using data from the previous month’s bill. For example, the water
augmentation surcharge that is applied on the July bill is calculated using the June water
augmentation costs and the June total gallons sold.
 

For each month that the Company augments water, the Company will calculate the Surcharge Rate
per the following example formula:
 

Water Augmentation Cost / Water Sold
Example
This example illustrates how the water augmentation surcharge that is included on a
customer’s July bill would be calculated using the 2,000 gallons that the customer used
in the month of June.
[A]                          B]                          [C][                              D]
Total June        June Ending     Total Gallons           Emergency
Water &            Curtailment      Sold in June                 Water
          Hauling                 Account          Gallons in             Augmentation
             Costs                    Balance            1,000's                 Surcharge per
                                                                                                         1,000 Gallons
  
( $3,000        -        $100 )       /          494           =           $5.87

                              [E]                        [F]                       [G]                        
Customer’s       Emergency          Total
          June Usage          Water           Emergency
      Gallons in     Augmentation       Water
                        1,000’s          Surcharge         Augmentation
                                            (From col. D)    Surcharge on
                                                                      July Bill
                   2          x          $5.87      =        $11.74
 

IV. Plan of Administration
 

(A) Intent To Bill Emergency Water Augmentation Surcharge: For any month in which water
is augmented, after completing its billing for the month and receiving the billing for the month,
the Company will calculate the Surcharge Rate using the same methodology discussed herein and
provide the Utilities Division of the Commission (“Commission Staff”) notice of the Company’s
intent to bill the Emergency Water Augmentation Surcharge.
 

(B) Notice to Commission Staff: For any month in which the Company intends to bill customers
an Emergency Water Augmentation Surcharge, the Company shall provide Commission Staff
notice of the Company’s intent to bill the Emergency Water Augmentation Surcharge. The notice
to Commission Staff shall include the following:
 

1. The Water Augmentation Cost.
2. The Water Augmentation Quantity.
3. A copy of the bill(s) received for the Water Augmentation.
4. A clear description explaining the system problem necessitating Water Augmentation and
a description of the action being taken by the Company to resolve the problem, including
the date operations did or are expected to return to normal
5. The dates for beginning and ending Water Augmentation.
6. A schedule showing the calculation of the Emergency Water Augmentation Surcharge Rate
in excel format with formulas intact.
7. Identification of the hauling option(s) available. If only one option was available, please
state that there was only one option.
8. Whether or not the hauling entity was an affiliate.
 

(C) Implementation of Emergency Water Augmentation Surcharge: Commission Staff will
review the Notice. If the filing is acceptable to Commission Staff, the resulting Surcharge will be
charged in the following month, and Voyager at White Mountain Lakes Water Company, Inc. will
bill the Emergency Water Augmentation Surcharge to its customers. Each individual customer’s
billing for the Emergency Water Augmentation Surcharge will be based on that customer’s actual
usage for the previous month (the month corresponding to the Water Augmentation) times the
Surcharge Rate.

The Emergency Water Augmentation Surcharge shall be presented as a separate line item on the
customer billing.
 

(D) Documentation to Be Maintained: The Company shall maintain documentation for all costs,
billing determinants, and revenues recoveries.
 

(E) Customer Notice: The Company shall notify its customers of this new tariff as part of its next
regularly scheduled billing after the effective date of the tariff or no later than sixty (60) days after
the effective date of the tariff.
 

ATTACHMENT 3

PUBLIC NOTICE OF THE APPLICATION OF VOYAGER AT
WHITE MOUNTAIN LAKES WATER COMPANY, INC. FOR AN
EMERGENCY RATE INCREASE (DOCKET NO. W-01983A-23-
0166)
 

On June 23, 2023, Voyager at White Mountain Lakes Water Company, Inc. (“Voyager” or
“Company”) filed with the Arizona Corporation Commission (“Commission”) an Application for
an emergency rate increase. The Company claims that it is entitled to emergency rate relief
The owner of the Company passed away unexpectedly on March 31, 2023, leaving the Company
without a properly certified operator. In addition, the owner had no heirs or succession plan, so a
friend and part time employee has been assisting with the operations of the Company, but he has
other commitments and is unable to devote the necessary time to fully run the utility. Further, the
Arizona Department of Environmental Quality (“ADEQ”) has concerns about the quality of the
water being provided because the Company has not been submitting the required samples for
testing. As such ADEQ is unable to state if the Company is providing water that meets the Safe
Drinking Water Act. Voyager is requesting authorization to recover $605,317 in emergency rates
by implementing a monthly surcharge in the amount of $29.55 per 5/8 and 3/4-inch customer.
 

The Commission’s Utilities Division (“Staff”) is in the process of reviewing and analyzing the
Application. Neither Staff nor any intervenor(s) has yet made any recommendation
regarding the Company’s request. The Commission is not bound by the proposals made by
the Company, Staff, or any intervenor(s), and the Commission may approve the amount
of the request, modify the amount higher or lower, or deny the request.
 

If you have any questions concerning how the Application may affect your bill or have other
substantive questions about the Application, you may contact the Company at: Voyager at
White Mountain Lakes Water Company, Inc. PO Box 90890, White Mountain Lake, AZ
85912-0890.
 

How You Can View or Obtain a Copy of the Application
Copies of the Application will be posted at the unstaffed office of Voyager at White Mountain
Lakes Water Company, Inc. at 1900 Bourdon Street, Suite #4 Show Low, Arizona, 85901,
For questions the Company can be reached at 928-521-8461; email inquiries can be sent to
Office@VoyagerWMLWater.com; and copies can be obtained from the Commission’s Docket
Control Center at 1200 West Washington Street, Phoenix, Arizona, during regular business
hours; and on the Commission’s website (www.azcc.gov) using the e-Docket function.

How Interested Persons May Participate
An interested person may participate in this matter by (1) providing written public comment, or (2)
filing for intervention and becoming a formal party to the proceeding. Written public comments
must refer to Docket No. W-01983A-23-0166 and may be submitted at any time as follows:
By Mail: Arizona Corporation Commission
Consumer Services Section
1200 West Washington
Street Phoenix, AZ 85007
Or,
On the Website: www.azcc.gov Click tab “Cases and Open Meetings”, click on “Make a Public
Comment in a Docket”. Anyone requiring assistance may contact the Consumer Services Section
at 1-800-222-7000 or 602-542-4251.
 

Arizona Corporation Commission Public Hearing Information
The Commission will hold a full public hearing on this matter. The Commission’s Hearing
Division will schedule a procedural conference to occur within five business days of the filing of
the Application in order to set a public hearing date and establish other procedural requirements.
The Company will provide notice of the hearing date by means of posting notice in a
conspicuous location within the affected communities, emailing notice to customers, and/or
posting on the Company’s website (or by other appropriate means), to allow an opportunity
for customers to attend the hearing and provide verbal public comment.
Public comments will be taken on the first day of the hearing. Written public comments may
be submitted at any time by mailing a letter referencing Docket No. W-01983A-23-0166 to
Arizona Corporation Commission, Consumer Services Section, 1200 West Washington, Phoenix,
AZ 85007, or by submitting comments on the Commission’s website (www.azcc.gov) using
the “Submit a Public Comment for a Utility” function. If you require assistance, you may
contact the Consumer Services Section during regular business hours at 602-542-4251 or 1-800-
222-7000.
 

About Intervention
The law provides for an open public hearing at which, under appropriate circumstances,
interested persons may intervene. An interested person may be granted intervention if the
outcome of the case will directly and substantially impact the person, and the person’s intervention
will not unduly broaden the issues in the case. Intervention, among other things, entitles a party to
present sworn evidence at hearing and to cross-examine other parties’ witnesses. Intervention is
not required if you want to appear at the hearing and provide public comment on the
Application, or if you want to file written comments in the record of the case.

To request intervention, you must file an original plus one hard copy of a written request
to intervene with Docket Control, 1200 West Washington Street, Phoenix, AZ 85007, no later
than 7/5/2023. You also must serve a copy of the request to intervene on each party of record
on the same day that you file the request to intervene with the Commission. Information
about what intervention means, including an explanation of the rights and responsibilities
of an intervenor, is available on the Commission’s website (www.azcc.gov) using the
“Intervention in Utility Cases” link. The link also includes sample intervention requests.
 

If you choose to request intervention, your request must contain the following:

1. Your name, address, and telephone number, and the name, address, and telephone number of
any person upon whom service of documents is to be made, if not yourself;
2. A reference to Docket No. W-01983A-23-0166;
3. A short statement explaining:
a. Your interest in the proceeding (e.g., a customer of the Company, etc.);
b. How you will be directly and substantially affected by the outcome of the case; and
c. Why your intervention will not unduly broaden the issues in the case;
4. A statement certifying that you have served a copy of the request to intervene on the Company
or its attorney and to all parties of record in the case; and
5. If you are not represented by an attorney who is an active member of the Arizona State Bar,
and you are not representing yourself as an individual, sufficient information and any
appropriate documentation to demonstrate compliance with Arizona Supreme Court Rules
31, 38, 39, and 42, as applicable.
 

The granting of motions to intervene shall be governed by A.A.C. R14-3-105, except that all
motions to intervene must be filed on or before 7/5/2023.
 

If you do not intervene in this proceeding, you may not receive any further notice of
the proceedings in this docket. However, all documents filed in this docket are available
online (usually within 24 hours after docketing) at the Commission’s website (www.azcc.gov)
using the e- Docket function. You may choose to subscribe to an RSS feed for this case
using the e-Docket function.
 

ADA/Equal Access Information
The Commission does not discriminate on the basis of disability in admission to its public
meetings. Persons with a disability may request a reasonable accommodation such as a sign
language interpreter, as well as request this document in an alternative format, by
contacting Carolyn Buck, ADA Coordinator, voice phone number at 602-542-3931, and
email at cdbuck@azcc.gov. Requests should be made as early as possible to allow time to
arrange the accommodation.

ATTACHMENT 4

Atachment 4 contains the ADEQ MAP program statements but could not be included in this translation of the document for viewing online. You can download a copy of the entire application including the ADEQ statements  at this link

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Here is a link to the Notice of the hearing regarding the application to be held on July 10, 2023

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