Monday, Mar 18 2013 3:18PM
An Arizona water company is hoping to raise rates for residential and commercial customers.
Tacna Water Management Company recently submitted a request to the Arizona Corporation Commission for an emergency water rate increase, according to the Yuma Sun.
The company said that raising the rate customers pay for access to water system services will allow it to overcome debt and make repairs to crumbling infrastructure. Nancy Miller, interim manager of Tacna Water, told the Commission that the company's debt rendered it unable to pay invoices for the last three years, and it currently owes roughly $200,000, the Sun reports. In addition, Tacna's equipment is in need of significant updates and repairs, she noted.
"Meters are broken, lines are broken, and this company is broken," she wrote in the rate increase application, the Sun reports.
As a result of the company's debt, creditors will not extend financing to improve it's infrastructure and this may result in inaccurate bills being sent to customers. Tacna currently serves a rural community of roughly 240 residents and wishes to raise the current base rate of $7 for residential and commercial customers to a $28 base rate for residents and $100 for commercial enterprises.
Many private water providers have raised rates in other rural communities - such as towns in California - in an effort to raise more financing for infrastructure and fuel future water conservation projects.
For more information, check out this resource: The Yuma Sun