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SUPREME COURT OF ARIZONA En Banc

HOHOKAM IRRIGATION AND DRAINAGE DISTRICT, PINAL COUNTY, ARIZONA, a political subdivision of the State of Arizona,

) ) ) ) ) Plaintiff/Counterdefendant/ ) Appellee, ) ) v. ) ) ARIZONA PUBLIC SERVICE COMPANY, an ) Arizona public service corporation, ) ) Defendant/Counterclaimant/ ) Appellant. ) ____________________________________) ) CENTRAL ARIZONA IRRIGATION AND ) DRAINAGE DISTRICT, a political ) subdivision of the State of ) Arizona; ELECTRICAL DISTRICT NO. ) ONE, Pinal County, Arizona, a ) political subdivision of the State ) of Arizona; ELECTRICAL DISTRICT ) NO. 3, Pinal County, Arizona, a ) political subdivision of the State ) of Arizona; ELECTRICAL DISTRICT ) NO. 4, Pinal County, Arizona, a ) political subdivision of the State ) of Arizona; ELECTRICAL DISTRICT ) NO. 5, Pinal County, Arizona, a ) political subdivision of the State ) of Arizona; and MARICOPA-STANFIELD ) IRRIGATION & DRAINAGE DISTRICT, ) Pinal County, Arizona, a political ) subdivision of the State of ) Arizona, ) ) Intervenors/Appellees, ) ) v. ) ) ARIZONA PUBLIC SERVICE COMPANY, an )

Arizona Supreme Court No. CV-02-0091-PR Court of Appeals Division Two No. 2 CA-CV 01-0026 Pinal County Superior Court No. CV 98-046103

O P I N I O N

Arizona public service corporation, ) ) Defendant/Appellant. ) ____________________________________) ) THE HARQUAHALA POWER DISTRICT, a ) political subdivision of the State ) of Arizona; AGUILA IRRIGATION ) DISTRICT, a political subdivision ) of the State of Arizona; McMULLEN ) VALLEY WATER CONSERVATION AND ) DRAINAGE DISTRICT, a political ) subdivision of the State of ) Arizona; BUCKEYE WATER ) CONSERVATION AND DRAINAGE DISTRICT, ) a political subdivision of the ) State of Arizona; ROOSEVELT ) IRRIGATION DISTRICT, a political ) subdivision of the State of ) Arizona; ELECTRICAL DISTRICT NO. 7, ) a political subdivision of the ) State of Arizona; and ELECTRICAL ) DISTRICT NO. 8., a political ) subdivision of the State of ) Arizona, ) ) Intervenors/Appellees, ) ) v. ) ) ARIZONA PUBLIC SERVICE COMPANY, an ) Arizona public service corporation, ) ) Defendant/Appellant. ) ) ____________________________________)

Appeal from the Superior Court of Pinal County The Honorable William J. O'Neil, Judge AFFIRMED

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Court of Appeals, Division Two 201 Ariz. 356, 35 P.3d 117 (2002) VACATED

Brown & Bain, P.A. by Paul F. Eckstein Dan L. Bagatell Attorneys for the Petitioner, Hohokam Irrigation and Drainage District, Pinal County, Arizona Osborn Maledon, P.A. by Andrew D. Hurwitz Warren Stapleton Attorneys for the Respondent, Arizona Public Service Company Moyes Storey by Jay I. Moyes Steven L. Wene Attorneys for Maricopa County Intervenors Harquahala Power District, et al. Law Offices of Robert S. Lynch by Robert S. Lynch and Law Office of Paul R. Orme, P.C. by Paul R. Orme Attorneys for Pinal County Intervenors Central Arizona Irrigation and Drainage District, et al. Gust Rosenfeld P.L.C. by Fred H. Rosenfeld Richard A. Segal Attorneys for Amicus Curiae Cortaro Marana Irrigation District Arizona Center for Law in the Public Interest by Timothy M. Hogan Attorneys for Amicus Curiae Arizona Consumers Council

Phoenix

Phoenix

Phoenix

Phoenix

Mayer

Phoenix

Phoenix

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J O N E S, Chief Justice INTRODUCTION

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Arizona Law