Sedona rate payers on hook for water tank 'camouflage' project

The Arizona Corporation Commission mandated that Sedona residents cover a $6 million expense for camouflaging a new underground water storage tank. This decision was made in response to a proposal from the Arizona Water Company to increase water rates across its northern district. As a result, Sedona customers will experience a 45% rate hike, while neighboring areas will see a 34% increase. The 1. 5-million-gallon tank and booster pump station are crucial for fulfilling the region's drinking water and fire flow needs.

To satisfy local aesthetic concerns, the company opted to bury the tank and build a house-like structure above it. The commission's unanimous vote highlighted the need for Sedona residents to bear the brunt of the costs due to their specific demands. Arizona Water's vice president expressed a commitment to collaborating with the city to explore funding options to mitigate the impact of the rate increase. This ruling signals to water companies and local governments that aesthetic preferences can lead to higher costs for local ratepayers.