Maintaining necessary infrastructure to support effective water and wastewater services requires ongoing investment. Rates generate the money it takes to run and maintain a utility – rate changes are looked at when rates aren't generating enough money to cover the costs, or when they are bringing in more money than needed. For the San Tan water and wastewater, it's a combination of changes in the cost to run the system and critical infrastructure projects that have already been completed to improve your service.
Current water and wastewater rates for San Tan are based on costs from 2007 – the new request is based on costs 12 years later, in 2019. The application requests the difference between what San Tan is currently collecting and what it needs to collect based on current costs. Based on the figures in the application, the potential change to the average monthly residential customer bill could range from $3 to $15 depending on whether a customer receives water service, wastewater service, or both, and how much water they use. Customers have a great deal of control over their water bill – the less water you use, the lower your bill will be.
EPCOR continues to make significant improvements in the San Tan system, and investment is still needed to secure the system's long-term health and to provide safe, reliable service now and into the future. If the ACC approves new revenues from this application, they will not be used to pay for future capital investments outlined in a plan the ACC approved in late 2019.
This rate review was required by the ACC. The ACC normally takes at least a year to review and make a decision on new rates.
EPCOR contracted third-party experts to develop the original application while serving as Interim Manager of Johnson Utilities. Our internal experts oversaw the process and filed it on behalf of Johnson Utilities on February 14, 2020. On November 25, 2020, the ACC temporarily suspended the rate review while it considered and approved the request to transfer ownership from Johnson Utilities to EPCOR. EPCOR became owner of what is now the San Tan Water and Wastewater districts on January 29, 2021.