‘Miscellaneous Expense’ Of Water Provider Preposterous

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Editor:

I have been a homeowner and resident of Mead’s Ranch since it was first subdivided in 1961.

Maynard Mead drilled a 700-foot well to provide water for us, and it is still the ranch’s water source today.

Other than an occasional repair, there really have not been any improvements provided for the customers.

The water pressure is still at the bare minimum, and the water storage capacity has not been increased. The majority of the homeowners are weekend residents, but if they are all there on a holiday weekend, water outages occur.

Payson Water Company has applied for an exorbitant rate increase that is hardly justified by their operating statements that show “miscellaneous expenses” of 48.7 percent. This is hardly a model accounting statement.

A study of 43 private water utility companies in Arizona that were not owned by Brooke Utilities or Payson Water Company was done by one of ranch’s interveners. These 43 companies had an average “miscellaneous expense” of 2.9 percent. Of the five Arizona water companies that were owned by Brooke in 2012, the average “miscellaneous expense” was 48.7 percent. The total “operating loss” for these five companies was $47,068. If these companies had the average “miscellaneous expense” of 2.9 percent, there would have been a profit of $761,816.

These companies are avoiding paying taxes by using a non-identifiable “miscellaneous expense” category.

We are hopeful the Arizona Corporation Commission will realize the inequity and come to the rescue of Payson Water Company water customers by denying the requested increase.

Lanny Kope

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