Over the last year, customers of the Sonoita Valley Water Company (SVWC) have been dealing with water shortages, low water pressure and leaking lines. Now they’re facing a doubling of their rates, too.
At a public meeting held at the Sonoita Fire Station on June 23, 15 residents from the Papago Springs and Los Encinos neighborhoods met with Steve Wene, an attorney representing Southwestern Utility Management (SWM), the parent company of SVWC, to discuss the issues that the water company is facing, as well as SVWC’s rationale for seeking a significant rate increase.
According to Wene, SVWC currently serves 73 customers, with 25 in Papago Springs, 15-20 in Los Encinos, and approximately 30 in downtown Sonoita.
At the June 23 meeting, Wene explained that SVWC has applied to the Arizona Corporation Commission (ACC) for permission to almost double the present rate for water usage. Wene acknowledged that this move could cause “rate shock” for users, but noted that the company, which is owned by his brother, has not had a rate increase since 2010. Customers currently pay a base rate of $30 for the first 1000 gallons per month, as well as an $11 surcharge for repairs made last year.
“It’s going to be expensive out here,” Wene told the audience. “There’s no doubt.”
Wene said that the company anticipates an additional surcharge to help pay for a new well that will serve Papago Springs customers. The present well is pumping only seven gallons a minute. This has forced SVWC to haul water from its downtown Sonoita location, reducing the water pressure for its business and residential customers in that area.
Further, there is a significant leak on the tank of the water truck, which makes several trips a day between downtown Sonoita and Papago Springs. Wene said that there is no way to repair the leaky tank, and that the company is waiting for delivery of a new tank.
In addition, the SVWC water system, which dates back to the 1980s, is leaking in several spots, causing significant water loss. Wene also said that the company believes there are residents who are illegally using water. “There are massive water thefts,” he said.
SVWC has already asked customers “to voluntarily employ water conservation measures to reduce water consumption by approximately 50%. All outside watering should be eliminated, except livestock, and indoor water conservation techniques should be employed whenever possible.” SVWC has also placed a moratorium on water hook-ups for new homeowners in the area.
To deal with the ongoing water shortage, SVWC is planning to extend an existing water pipeline in Los Encinos half a mile to connect into the Papago Springs water lines. “This is a stopgap measure,” Wene said. The company is also talking with local well driller Denny Hubbell about buying water from a well he plans to dig in the area, as well as looking for a grant to dig their own well, which SVWC estimates would cost $400,000. The company hopes to be awarded a grant to help defray the costs and would most likely add a surcharge to their customers’ bills.
The money generated by the proposed rate increase would be going back into the system, according to Wene. On at least two occasions during the meeting, he cautioned residents not to comment to the ACC about the rate increase, saying, “If you comment, it will slow down the process.” He referred to people who write complaints to the ACC as “interveners.”
“I don’t mind paying higher rates if I can see where it’s going for,” Papago Springs resident Carla Petersen said in an interview after the meeting. “We are paying an $11 surcharge for $20,000 spent for repairs last year on a well that’s only producing seven gallons a minute. It just frustrates me.”
“I was very impressed with what [Wene] told us,” said Jean Brothman, a Papago Springs resident and customer of the water company who attended the June 23 meeting. “I believe he answered our questions truthfully and with integrity. He was coming from a place of concern and support and wanting to help us resolve this issue.”
Petersen, however, felt that Wene appeared “kind of cavalier” about the problems residents were facing.
“Two months ago, I called the water company because I wanted answers,” she said. “The water truck was leaking, and they weren’t getting a new well drilled. They could not give me answers. I filed a complaint [with the ACC]. I ended the letter by saying the Hermosa mining project, which is an Australian owned company, put in all their permits to be fast tracked, but the SVWC can’t get one well drilled. Can someone explain this to me? I want to think these guys are sincere and that they are doing the right thing.”
At some point in the 1980s or ‘90s, the water company ended up in the hands of Buck Lewis, who owned an engineering company in Sierra Vista, after the developers of Papago Springs walked away from the project. “Buck never wanted it,” Wene said. Lewis invested $200,000 in a new well and new lines. “He wanted to get it running and give it to the community,” he said. SWM acquired the company after Lewis’ death in 2018. Wene said SWM would very much like to sell SVWC, as they have been running the company at a loss. Their preference would be for the community to take over the ownership of the water company by forming a water district, but there has been little enthusiasm for this idea in the past.
“It might be better for the community to form a water district, but there’s got to be more people on board for it,” said Petersen. She noted that out of the 73 households served by the water company, only 15 people attended the June 23 meeting.
There has been little interest in SVWC shown by outside investors to this point, but Wene said that “after the rate increase, [the water company] will be more attractive to a buyer.” He warned that the cost for the utility would likely increase even further if the community does not assume ownership of the water company.
Previously in the Patagonia Regional Times:
“Local Water Company Customers Facing New Charges, Uncertain Future” (June 2, 2022)
“Sonoita Valley Water Customers Told to Cut Water Use by 50%” (October 2, 2014)