News Summary
On July 24, 2025, the Arizona Corporation Commission approved a 45% rate increase for Sedona residents of the Arizona Water Company. This rate hike, aimed at covering costs for a new underground water storage tank and related aesthetic enhancements, will raise average monthly bills to around $60. Local leaders express concerns about the fairness of the financial burden on residents, particularly given that many are on fixed incomes. The project, which includes significant capital investments, highlights the ongoing challenges of balancing infrastructure needs and costs within the community.
Sedona, Arizona – On July 24, 2025, the Arizona Corporation Commission (ACC) approved a significant rate hike for the Arizona Water Company (AWC), mandating Sedona customers to cover approximately $6 million in costs related to a new underground water storage tank, which includes the construction of a mock house for aesthetic purposes. This decision will lead to an increase of around 45% in the monthly water bills for Sedona residents, bringing the average bill to about $60, while customers within AWC’s Northern Group will see a 34% rise, bringing their average bill to roughly $52.
Chairman Kevin Thompson of the ACC emphasized that the financial burden associated with aesthetic preferences tied to this project should be borne by those who benefit from these enhancements. The new water tank’s capacity stands at 1.5 million gallons, equipped with a booster pump that delivers 3,000 gallons per minute. This facility is notable for being one of only three underground tanks constructed by ACC-regulated companies in Arizona.
Concerns about the fairness of the financial burden on Sedona residents were raised by local leaders. Arizona Representative David Marshall criticized the decision, asserting that the costs, stemming from the aesthetic requirements set by the city, should not rest solely on the shoulders of Sedona residents. Furthermore, the Sedona City Council mandated AWC to incur over $4.6 million in additional expenditures to comply with local regulations, highlighting the costs associated with this project as some of the most significant the company has undertaken.
Sedona City Manager Anette Spickard voiced opposition to the surcharge imposed on Sedona customers. She argued that many residents may not directly benefit from the new tank and that it is unfair to place the financial responsibility on them. Overall, the project is estimated to cost around $20 million, with a substantial part of the total costs attributed to the underground aesthetic enhancements.
The ACC has underscored the imperative for innovative solutions to address water needs in the region, advocating for a shift away from groundwater. The approval of this rate hike reflects the increasing need for infrastructure improvements in Arizona. AWC’s capital investments have escalated over the years to meet the growing demand for water resources, particularly as the state grapples with sustainability challenges.
This rate hike comes at a time when many Sedona residents are on fixed incomes, raising concerns about the potential financial strain that the increased bills will impose. The commission’s decision could have lasting implications for how costs associated with infrastructure aesthetics are allocated in the future, with previous discussions among ACC members indicating a desire to ensure fairness and equity in financial responsibilities.
As the new water tank becomes operational, it represents a significant infrastructure advance for Sedona, yet it also highlights the complexities of balancing aesthetic preferences with financial impacts on local residents. The ongoing discussions and decisions will likely shape future approaches to public utility costs and infrastructure developments in Arizona.
Deeper Dive: News & Info About This Topic
- Red Rock News
- AZ Free News
- AZ Central
- Wikipedia: Water Supply and Sanitation in the United States
- Encyclopedia Britannica: Water Supply
