Phoenix, Ariz.— At the Arizona Corporation Commission’s Regular Open Meeting on January 9, 2024, the Commission unanimously adopted Commissioner Nick Myers’ verbal amendment to phase in a rate increase for Sonoita Valley Water customers.

“I am pleased the company was amenable to my verbal amendment and was willing to forgo lost revenues and carrying costs associated with the phased-in rate increase,” said Commissioner Myers, “this will provide some much-needed relief for the customers of this small water company.” 

Sonoita Valley Water Company, Inc. is a Class E water utility serving seventy-five customers in Santa Cruz County, approximately forty miles southeast of Tucson. Costs to operate the water company have increased significantly since its last rate increase in 2010. Before the amendment, it was estimated that the median bill would increase from $48.08 to $94.65.

Commissioner Myers’ amendment will result in a partial bill increase at this time, with the remaining of the increase taking effect in 2025.   

As part of this decision, the Commission also authorized the company to borrow $396,142.80 in long-term debt from the Water Infrastructure Finance Authority of Arizona (“WIFA”) for needed capital improvement projects. Based on discussions with WIFA, the company expects that a portion of the debt will be forgiven. This loan forgiveness in combination with a grant the company recently received will further reduce the overall bill impact.     

“Although Sonoita Valley Water customers already understood the necessity of their rates increasing after all these years, I am glad the Commission was able to work with the company to reduce some of the bill impact.” 

For more information on this amendment, please contact Amanda Hasty at Myers-Web@azcc.gov.