AARP files challenge to utilities’ rate policy

By Ryan Randazzo | The Republic | azcentral.com

AARP is asking utility regulators to reconsider their decision to allow the Johnson Utilities and Pima Utility Co. water companies to charge customers for the

aarp_logoIncome tax expenses the company owners face from their company profit.

AARP filed comments in the two cases before the Arizona Corporation Commission, which regulates rates at water companies as well as electric and gas utilities.

The issue of charging income tax expenses has been brewing at the regulatory body for more than two years.

Utilities set their rates by adding up all of their justifiable expenses in a given year and then asking the commission to approve rates that allow them to recover those expenses plus a given profit.

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