Following the Arizona Corporation Commission’s July 24 decision to allow Arizona Water Company to raise rates for Sedona residents by 45% — and other Northern Group customers in Lakeside, Overgaard and Pinetop Lakes by 34% — the city of Sedona and its residents have expressed universal disappointment.
The full $20 million project — which includes a 1.5-million-gallon underground tank and a booster pump station capable of delivering 3,000 gallons per minute — was completed this spring after decades of planning to improve water capacity for residents and first responders.
“The [ACC] did something that’s never been done before,” Sedona Mayor Scott Jablow said. “There’s been some confusion as to what our requirements were and what trying to work with our community means. There was a mention in the land development code that it was required that we underground that tank — and that information is not accurate. I think that changing gears the way the [ACC] did at the end of the process was just wrong. If they want to change the way they render decisions, they should set that in stone and let all communities across the state know that there’s now a different method in the way they’re looking at things.”
Sedona officials took issue with a letter from Arizona Rep. David Marshall [R-District 7] to the ACC, in which he claimed “the city of Sedona, through their Land Development Code and Conditional Use Permit, required Arizona Water Company to incur” the $6 million in additional costs.
Marshall represents constituents in Lakeside, Overgaard and Pinetop Lakes.
The city supports expanding water infrastructure to meet community needs but opposed the decision to increase rates for Sedona customers, a position it communicated to the ACC commissioners before and during the meeting.
“Furthermore, the neighbors requested the water tank be underground and [AWC] proposed an underground tank and house on top as part of their permit application to the city,” Sedona Communications Manager Lauren Browne, wrote in a statement.
“The city does not and has never required that water storage tanks be located underground. Nor did the city require that it be camouflaged to look like a house. [AWC] chose to purchase a residential parcel for the water tank, after other attempts to find a suitable location over many years failed. The city had no reason to deny the request for an underground tank or the house on top of the tank, as this was proposed by [AWC].”
Browne called the rate difference for Sedona “unprecedented and contrary to the recommendation of the administrative law judge who held a multi-day hearing. In all other rate case decisions, the commission has required the cost of all infrastructure improvements, regardless of location or cost, to be shared equally by all customers in a consolidated rate group, ensuring that all customers receive the same rate increase.”
Customer comments have remained universally against the rate hike throughout the entire process, according to submissions to the ACC docket.
“I have lived in Sedona since the 1970s and am furious with the city and the [ACC] for allowing this exclusive water storage to be built,” Wendy Hansen wrote to the NEWS following the July 24 decision. “Something of this magnitude should have been done by a voting process only. I am on a limited budget and cannot justify paying 45% more on my water bill. It is time for some other payment plans to take effect quickly.”
To share your input with ACC regarding docket number W-01445A-24-0117, you can submit comments online through the ACC Portal or send a letter to the Arizona Corporation Commission, Consumer Services Section, 1200 West Washington, Phoenix, AZ 85007.
For more information or to submit comments electronically visit azcc.gov
