Rate Information

The Arizona Corporation Commission has scheduled a hearing on the Liberty Water rate adjustment application for Monday, January 4, 2010 at 10 a.m. in Hearing Room #1 at the Corporation Commission, 1200 W Washington, Phoenix.

Liberty Water has taken the first step in a lengthy process to increase rates charged for water and wastewater services by filing an application with the Arizona Corporation Commission (ACC). The rates sought are intended to reimburse Liberty Water for its current operating expenses and provide the company a return on the $58 million invested since 2000 in plant and equipment needed to serve Liberty Water's customers. These infrastructure improvements include an $11 million capital investment which Liberty Water was mandated to install to comply with new Federal drinking water standards.

Since rates were last established for Liberty Water in 2002, operating costs have increased to reflect both the impact of inflation on labor and electricity costs, and chemicals and other costs incurred in the operation of the additional equipment required to meet current drinking water standards.

In 2006, the trichloroethylene (TCE) contaminated groundwater from the Phoenix-Goodyear Airport North Superfund site began to migrate north and east in the aquifer, bringing the contaminated water closer to Liberty Water groundwater wells. To ensure its customers continue to have the highest quality, safe drinking water supply, Liberty Water is incurring costs related to increased testing and monitoring of its groundwater supply.

Last year alone, Liberty Water invested over $30 million to improve its water and wastewater system so that its customers are assured of a safe, reliable drinking water supply and the highest quality wastewater treatment services. Those improvements included:

  • A four million gallon reservoir to ensure adequate water storage and pressure
  • Three new arsenic treatment systems to comply with new EPA drinking water standards
  • Upgrades to the wastewater treatment plant
  • Three new water supply wells
  • Ongoing replacement of aging water and wastewater lines

Liberty Water water and wastewater rates have not been increased for almost seven years. If approved by the ACC, revisions to Liberty Water rates would not come into effect until sometime in 2010. Under the rates proposed by Liberty Water, the average residential customer's monthly water bill would increase to approximately $42 per month for a 3/4" meter ($55 for a 1" meter) and the average monthly residential wastewater bill would increase to $49. As part of the rate application, the company will be requesting approval to implement a low-income relief program to assist customers suffering undue financial hardship.

The ACC, an independent state agency comprised of five elected Commissioners, has the responsibility to ensure that the rates provided to Liberty Water will provide the utility recovery of its operating expenses and a fair rate of return on the value of the property devoted to serving the public.

During the coming year, Liberty Water will be meeting with its customers and the community to discuss the specifics behind its rate request and answer questions customers may have.

Liberty Water provides water and wastewater services to Litchfield Park, most of Goodyear north of I-10 and small sections of Avondale and unincorporated Maricopa County.