The Verde Santa Fe Wastewater Co. has been dealing with a huge mess — literally and figuratively.
Last week, the utility published a notice that it intends to borrow money to purchase wastewater facilities it had been leasing.
The proposed deal was prompted by the Arizona Corporation Commission, which determined that the lease was not in the best interests of VSFW’s customers.
The commission, which regulates private utilities, raised issues with VSFW’s financial operations — most notably, the lease deal with an unregulated affiliate company run by VSFW directors.
The commission also ordered VSFW to reduce the amount of money it proposed to pay its directors.
Those adjustments, and others, arose from a regulatory analysis of the company’s financial status during its most recent request for a rate increase.
As proposed, the hike would have raised the typical residential bill from $40 per month to $45.68, an increase of 14.2 percent. Instead, the commission, relying on staff analyses, reached an agreement with VSFW to limit the increase to $43.24 per month effective Aug. 1.
To read the full story, see the Wednesday, Nov. 19, edition of the Cottonwood Journal Extra.
