Arizona Water Company’s Groundwater Tank Costs Fall on Sedona Customers
In a recent emergency meeting held on July 24th, the Arizona Corporation Commission (AZCC) made a unanimous decision. They placed the financial burden of constructing a large 1.5 million-gallon groundwater tank squarely on the shoulders of customers in Sedona, Arizona. This conclusion comes after nearly four years of searching for an agreeable location in coordination with Sedona’s city officials and local residents.
The AZCC noted that any additional costs tied to the tank, especially those incurred from aesthetic considerations, would not affect customers outside of Sedona. Pinetop Lakes, Munds Park, and Payson, however, are also set to see significant changes.
According to an AZCC press release, Sedona residents can expect their water bills to go up by about 45%, ending up around $60 each month. Meanwhile, customers from other Northern Group areas will face an increase of about 34%, resulting in bills closer to $52 per month.
During the Thursday meeting, the ACC engaged in a thorough discussion about who should bear the extra costs associated with cosmetic enhancements to the infrastructure. The issue of Sedona’s new groundwater tank emerged as a central concern.
Before the meeting, Arizona Representative David Marshall (R-LD7) had voiced strong opposition to making customers outside of Sedona pay for these costs. In a statement, he highlighted the city’s requirement for Arizona Water Company to conceal the new water tank underground, disguising it with a facade resembling a home.
Marshall argued that the residents in areas like Pine Top Lakes and Munds Park were not in favor of such costly design features. He suggested that this has contributed to inflated project costs for Sedona.
In a follow-up release, the AZCC explained that amendments to Commissioner Rachel Walden’s proposal shifted the burden of “non-operating aesthetic costs” to Sedona residents. Walden emphasized her role in ensuring that costs are fair and reasonable, thanking her fellow commissioners for their support of her amendments.
The Corporation Committee commented that they found the construction of new tanks to be a wise decision. They assured that no extra costs from aesthetic requirements would be transferred to the other 15,000 customers outside of Sedona.
The overall cost for the water tank and booster project in East Sedona has now reached approximately $20 million. To receive approval from the Sedona Planning and Zoning Committee, as well as the City Council, the Arizona Water Company noted that it must meet specific aesthetic guidelines.
Chairman Thompson expressed hope that this would serve as a signal to water companies, local governments, and residents: if special conditions arise due to aesthetic preferences, those costs may fall solely on the community benefiting from them.
Commissioner Rene Lopez added that the committee managed to find a balance between protecting fee payers and ensuring the company’s sustainability amid this rate case. He noted that the committee’s decision signals to taxpayers and local governments that costs will be assigned fairly based on specific customer groups, particularly when extraordinary costs stem from exclusive benefits.
Overall, this careful discussion culminated in the committee’s final decision, demonstrating a commitment to evaluate customer support programs in future cases. Vice Chairman Nick Myers also acknowledged the committee’s directive to address the funding for the incremental costs of filling the Sedona tanks, considering the direct benefits the city receives from them.
