State Representative David Marshall has voiced opposition to Sedona’s proposal that would shift costs to ratepayers in northern Arizona communities who do not reside in Sedona. The issue stems from Sedona’s requirement for the Arizona Water Company to bury a new water storage tank underground and disguise it with a structure resembling a home, which has significantly increased project costs.
Marshall argues that the principle of cost causation should apply, meaning those who drive up costs should be responsible for them. “Sedona’s plan is antithetical to fair and ethical ratemaking and should be an easy rejection by an impartial Corporation Commission,” he said.
The City of Sedona’s design mandate benefits only local residents, but seeks financial support from other communities’ water customers. “Arizona Water Company’s northern Arizona ratepayers—including the good people of Pinetop-Lakeside, Heber-Overgaard, Rimrock, Munds Park, and the Village of Oak Creek—did not ask for these costly design features,” Marshall said. He called it “absurd” to expect them to subsidize Sedona’s aesthetic demands.
Marshall urged the Arizona Corporation Commission to ensure that only Sedona ratepayers bear the additional costs associated with their city’s design upgrades. According to Arizona law and previous Commission rulings, when cities require enhancements like undergrounding utility structures, local ratepayers should cover these expenses.
“This is a matter of fairness and affordability,” Marshall added. “Sedona chose to inflate the cost of this project for its own benefit.”
The full letter can be accessed online. David Marshall represents Legislative District 7 in the Arizona House of Representatives and chairs the House Committee on Public Safety & Law Enforcement.
Information from this article can be found here.
