Ariz. Admin. Code § R14-2-602 - Certificates of Convenience and Necessity for Sewer Utilities; Extensions of Certificates of Convenience and Necessity for Sewer Utilities; Abandonment, Sale, Lease, Transfer, or Disposal of a Sewer Utility; Discontinuance or Abandonment of Sewer Utility Service
A. In this Section, unless otherwise
specified:
1. "Applicant" means a person who
submits an application to obtain a Certificate of Convenience and Necessity to
construct sewer utility facilities or operate as a sewer utility or to extend
the service area under an existing Certificate of Convenience and Necessity
held by the person.
2. "CC&N"
means Certificate of Convenience and Necessity.
3. "Commission" means the Arizona Corporation
Commission.
4. "Contiguous" means
in actual contact, touching, such as by sharing a common border.
5. "Extension area" means the geographic area
that an applicant is requesting to have added to the applicant's existing
CC&N service area.
B. Application for a new CC&N or
extension of a CC&N
1. Any person who
desires to construct sewer utility facilities or to operate as a sewer utility
shall, prior to commencing construction of utility facilities or operations,
file with the Commission an application for a CC&N and obtain Commission
approval.
2. Any utility that
desires to extend its CC&N service area shall file with the Commission an
application for a CC&N extension.
3. Before filing an application for a
CC&N or a CC&N extension, a person shall provide written notice of the
person's intention to file the application to each person who owns land within
the proposed service area or extension area and who has not requested service.
Each written notice to a landowner shall include, at a minimum:
a. The legal name, physical address, mailing
address (if different), and telephone number of the intended
applicant;
b. The approximate date
by which the application will be filed;
c. The type of services to be provided if the
application is approved;
d. The
physical addresses and toll-free telephone numbers, in Phoenix and Tucson, for
the Consumer Services Section of the Commission; and
e. The following information:
i. That the recipient is a property owner
within the proposed service area or extension area;
ii. That if the application is granted, the
intended applicant will be the exclusive provider of the specific services to
the proposed service area or extension area and will be required by the
Commission to provide those services under rates and charges and terms and
conditions established by the Commission;
iii. That a CC&N does not prohibit
persons from providing services only to themselves using their own facilities
on their own property although other applicable laws may restrict such
activity;
iv. That the application
is available for inspection during regular business hours at the offices of the
Commission and at the offices of the intended applicant;
v. That the Commission will hold a hearing on
the application;
vi. That the
landowner may have the right to intervene in the proceeding and may appear at
the hearing and make a statement on the his or her own behalf even if the
landowner does not intervene;
vii.
That the landowner may contact the Commission for the date and time of the
hearing and for information on intervention;
viii. That the landowner may not receive any
further notice of the application proceeding unless requested; and
ix. That the landowner may contact the
intended applicant or the Consumer Services Section of the Commission if the
landowner has any questions or concerns about the application, has any
objections to approval of the application, or wishes to make a statement in
support of the application.
4. Within 10 days after filing an application
for a CC&N or a CC&N extension, an applicant shall provide written
notice of the application to the municipal manager or administrator of each
municipality with corporate limits that overlap with or are within five miles
of the proposed service area or extension area. Each written notice shall
include, at a minimum:
a. The applicant's
legal name, mailing address, and telephone number;
b. The date the application was
filed;
c. The type of services to
be provided if the application is approved;
d. A description of the requested service
area or extension area, expressed in terms of cadastral (quarter section) or
metes and bound survey;
e. The
Commission docket number assigned to the application; and
f. Instructions on how to obtain a copy of
the application.
5. Each
application for a new CC&N or CC&N extension shall be submitted in a
form and number prescribed by the Commission and shall include, at a minimum,
the following information:
a. The applicant's
legal name, mailing address, and telephone number;
b. If the applicant will or does operate the
utility under a different business name, the name under which the applicant
will be doing business;
c. The full
name, mailing address, and telephone number of a management contact for the
applicant;
d. The full name,
mailing address, and telephone number of the attorney for the applicant, if
any;
e. The full name, mailing
address, and telephone number of the operator certified by the Arizona
Department of Environmental Quality who is or will be working for the
applicant;
f. The full name,
mailing address, and telephone number of the onsite manager for the
applicant;
g. Whether the applicant
is a corporation, a partnership, a limited liability company, a sole
proprietor, or another specified type of legal entity;
h. If the applicant is a corporation, the
following:
i. Whether the applicant is a "C"
corporation, an "S" corporation, or a non-profit corporation and whether the
corporation is domestic or foreign;
ii. A list of the full names, titles, and
mailing addresses of each of the applicant's officers and directors;
iii. A copy of the applicant's certificate of
good standing issued by the Commission's Corporations Division;
iv. Unless the applicant is applying for a
CC&N extension, a certified copy of the applicant's articles of
incorporation and by-laws; and
v.
If the applicant is a for-profit corporation, the number of shares of stock
authorized for issue and, if any stock has been issued, the number of shares
issued and date of issuance;
i. If the applicant is a partnership, the
following:
i. Whether the applicant is a
limited partnership or a general partnership and whether the partnership is
domestic or foreign;
ii. The full
names and mailing addresses of the applicant's general partners;
iii. The full names, mailing addresses, and
telephone numbers of the applicant's managing partners;
iv. Unless the applicant is applying for a
CC&N extension, a copy of the applicant's articles of partnership;
and
v. If the applicant is a
foreign limited partnership, a copy of the applicant's certificate of
registration filed with the Arizona Secretary of State;
j. If the applicant is a limited liability
company, the following:
i. The full names and
mailing addresses of the applicant's managers or, if management is reserved to
the members, the applicant's members;
ii. Unless the applicant is applying for a
CC&N extension, a copy of the applicant's articles of
organization;
k. The
legal name and mailing address of each other utility in which the applicant has
an ownership interest;
l. A
description of the requested service area or extension area, expressed in terms
of cadastral (quarter section) or metes and bound survey;
m. The name of each county in which the
requested service area or extension area is located and a description of the
area's location in relation to the closest municipality, which shall be
named;
n. A complete description of
the facilities proposed to be constructed, including a preliminary engineering
report with specifications in sufficient detail to describe each sewer system
and the principal components of each sewer system (e.g., collection mains,
trunk lines, lift stations, treatment plants, effluent disposal areas, etc.) to
allow verification of the estimated costs provided under subsection (B)(5)(p)
and verification that the requirements of the Commission and the Arizona
Department of Environmental Quality can be met;
o. A copy of the Aquifer Protection Permit
issued by the Arizona Department of Environmental Quality for the proposed
service area or extension area or, if not yet obtained, the status of the
application for the Aquifer Protection Permit;
p. The estimated total construction cost of
the proposed offsite and onsite facilities, including documentation to support
the estimates, and an explanation of how the construction will be financed,
such as through debt, equity, advances in aid of construction, contributions in
aid of construction, or a combination thereof;
q. Documentation establishing the applicant's
financial condition, including at least the applicant's current assets and
liabilities, an income statement, the applicant's estimated revenue and
expenses for the first five years following approval of the application, and
the estimated value of the applicant's utility plant in service for the first
five years following approval of the application;
r. The rates proposed to be charged for
services rendered, shown in the form of a proposed tariff that complies with
Commission standards;
s. The
estimated annual operating revenues and expenses for the first five years of
operation for the requested service area or extension area, expressed
separately for residential, commercial, industrial, and irrigation services,
and including a description of each assumption made to derive the
estimates;
t. A detailed
description of the proposed construction timeline for facilities, with
estimated starting and completion dates and, if construction is to be phased, a
description of each separate phase of construction;
u. A copy of any requests for service from
persons who own land within the proposed service area or extension area, which
shall identify the applicant by name;
v. Maps of the proposed service area or
extension area identifying:
i. The boundaries
of the area, with the total acreage noted;
ii. The land ownership boundaries within the
area, with the acreage of each separately owned parcel within the area
noted;
iii. The owner of each
parcel within the area;
iv. Any
municipality corporate limits that overlap with or are within five miles of the
area;
v. The service area of any
public service corporation, municipality, or district currently providing water
or wastewater service within one mile of the area, with identification of the
entity providing service and each type of service being provided;
vi. The location within the area of any known
sewer service connections that are already being provided service by the
applicant;
vii. The location of all
proposed developments within the area;
viii. The proposed location of each sewer
system and the principal components described in subsection (B)(5)(n);
and
ix. The location of all parcels
for which a copy of a request for service has been submitted per subsection
(B)(5)(u);
w. A copy of
each notice to be sent, as required under subsection (B)(4), to a municipal
manager or administrator;
x. A copy
of each notice sent, as required under subsection (B)(3), to a landowner not
requesting service;
y. For each
landowner not requesting service, either the written response received from the
landowner or, if no written response was received, a description of the actions
taken by the applicant to obtain a written response;
z. A copy of each city, county, or state
agency approval required by law to construct the proposed facilities or operate
the utility within the proposed service area or extension area or, for any
approval not yet obtained, the status of the applicant's application for the
approval;
aa. The estimated number
of customers to be served for each of the first five years of operation,
expressed separately for residential, commercial, industrial, and irrigation
customers and including documentation to support the estimates;
bb. A description of how water service is to
be provided in the proposed service area or extension area and the name of each
water service provider for the area, if any;
cc. A description of how effluent from the
area will be reused or, if not reused, disposed of;
dd. If the applicant is requesting a CC&N
extension:
i. A current compliance status
report from the Arizona Department of Environmental Quality, dated no more than
30 days before the date the CC&N extension application is filed, for each
wastewater system operated by the applicant, as identified by a separate
Arizona Department of Environmental Quality Identification Number;
and
ii. A wastewater flow data
sheet for the wastewater system being extended by the applicant; and
ee. The notarized signature of the
applicant.
6. Upon
receiving an application under subsection (B)(5), Utilities Division staff
shall review and process the application in accordance with the requirements of
R14-2-610.
7. Once Utilities
Division staff determines that an application submitted under subsection (B)(5)
is administratively complete, the Commission shall, as expeditiously as
practicable, schedule a hearing to consider the application.
C. Additions or extensions of
service contiguous to existing CC&N service areas
1. Except in the case of an emergency, a
utility that proposes to extend service to a parcel located in a
non-certificated area contiguous to its CC&N service area shall notify the
Commission before the service extension occurs.
2. Each notification required under
subsection (C)(1) shall be in writing, shall be verified, and shall set forth,
at a minimum:
a. The legal name, mailing
address, and telephone number of the utility;
b. The number of persons to be served in the
contiguous parcel;
c. The legal
description of the contiguous parcel and the location of the structures to be
served therein, in relation to the utility's CC&N service area;
and
d. A statement that service
will be extended only to a non-certificated parcel contiguous to the utility's
CC&N service area.
3. When emergency service is required to be
provided to a person in a non-certificated area contiguous to a utility's
CC&N service area, the utility shall notify the Commission of the service
extension as soon as possible after the service extension occurs by providing
written notice that includes the information required under subsection (C)(2)
and describes the nature and extent of the emergency.
D. Application for authority to abandon,
sell, lease, transfer, or otherwise dispose of a utility
1. A utility shall not abandon, sell, lease,
transfer, or otherwise dispose of its facilities or operation without first
obtaining authority therefor from the Commission.
2. A utility desiring to abandon, sell,
lease, transfer, or otherwise dispose of its facilities or operation shall file
with the Commission an application that includes, at a minimum:
a. The legal name, physical address, mailing
address (if different), and telephone number of the utility;
b. A description of the utility property
proposed to be abandoned, sold, leased, transferred or otherwise disposed
of;
c. Documentation establishing
the utility's financial condition, including at least the utility's current
assets and liabilities, an income statement, the utility's revenue and expenses
for the most recently completed 12-month accounting period, and the value of
the utility's utility plant in service;
d. The legal name, physical address, mailing
address (if different), and telephone number of any proposed purchaser, lessee,
transferee, or assignee;
e. The
terms and conditions of the proposed abandonment, sale, lease, transfer, or
assignment and copies of any agreement that has been or will be executed
concerning the transaction;
f. A
description of the effect that the proposed transaction will have upon the
utility's services;
g. The method
by which the proposed transaction is to be financed;
h. A description of the effect that the
proposed transaction will have upon any other utility;
i. The number of customers to be affected by
the proposed transaction; and
j. A
description of the effect that the proposed transaction will have upon
customers.
E.
Application for discontinuance or abandonment of utility service
1. A utility shall not discontinue or abandon
any service currently in use by the public without first obtaining authority
therefor from the Commission.
2. A
utility desiring to discontinue or abandon a service shall file with the
Commission an application identifying the utility; including data regarding
past, present and estimated future customer use of the service; describing any
plant or facility that would no longer be in use if the application were
approved; and explaining why the utility desires to discontinue or abandon the
service.
3. A utility is not
required to apply for Commission approval to remove individual facilities where
a customer has requested service discontinuance.
Notes
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