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Tag: EPCOR

State issues assured water supply designation amid ongoing lawsuits

Key Points:
  • EPCOR Utilities is the first recipient of an alternative designation of assured water supply
  • The designation was granted under new water rules adopted last year
  • ADWR is currently fighting two lawsuits against the rules

Gov. Katie Hobbs announced the first recipient of an alternative designation of assured water supply amid ongoing lawsuits against the Arizona Department of Water Resources. 

EPCOR Utilities is the first entity to receive a designation under the Alternative Designation of a 100-Year Assured Water Supply rules adopted by ADWR last year. The designation will allow residential construction to begin in parts of the West Valley after a two-year moratorium.

“This ADAWS Designation is going to save water, it is going to support sustainable economic growth, and it is going to create more housing,” Hobbs said in a statement. “Today we are again demonstrating that Arizona can, and will, continue to grow our economy while protecting our water.

In June 2023, Hobbs restricted the approval of new assured water supply certifications in the Phoenix Active Management Area due to a shortage of groundwater. The Alternative Designation of a 100-Year Assured Water Supply was approved in October 2024, allowing developers to explore new water sources and offset groundwater pumping in order to build in the area.

Under the ADAWS, new developments cannot obtain a certificate of 100-year assured water supply unless they can demonstrate that supply across the water provider’s entire service area, not just the development site. ADWR Director Tom Buschatzke celebrated the first designation under ADAWS in a statement released Oct. 7.

“I commend Governor Hobbs for her leadership in this effort, and I further commend my hard-working staff for the countless hours they have contributed to making this alternative pathway to an Assured Water Supply a reality for participating providers,” Buschatzke said. “The many stakeholders involved in this process have been intensely engaged and determined to find that next adaptation of water policy that allows incremental, sustainable growth while protecting groundwater. I heartily commend them as well.”

Hobbs’ announcement comes as ADWR fights two separate lawsuits from the Home Builders Association of Central Arizona (HBACA), one of which was joined by Senate President Warren Petersen and House Speaker Steve Montenegro. The first lawsuit alleges ADWR did not have the authority to create the ADAWS, and the second challenges the concept of an assured water supply altogether. 

The second suit, filed by the Goldwater Institute on behalf of HBACA, challenges the groundwater modeling requirements used for the 100-Year Assured Water Supply Program, which was created by the Groundwater Management Act in 1980. 

In a press release issued after the first lawsuit was filed in March, Republican leaders described ADWR as a “rogue” agency and characterized the groundwater pumping requirements as a tax.

“This is government overreach at its worst,” Montenegro said in a statement in March. “The people of Arizona elected us to defend their interests, not allow unelected bureaucrats to impose illegal taxes that make the American Dream of homeownership out of reach.”

Petersen repeated that characterization in a statement to the Arizona Capitol Times on Oct. 7.

“The Governor has unilaterally charged a 33.3% water tax, without legislative consent — and this new tax ultimately will be paid by Arizona families,” Petersen said. “This is exactly the abusive taxation that the Senate sued to stop, and it illustrates why taxpayers cannot trust Katie Hobbs with their checkbooks.”

Republican lawmakers have been frustrated with ADWR since late last year for using a rulemaking process to create the ADAWS without specific legislation directing it to do so. Legislators also expressed frustration with the Governor’s Regulatory Review Council, the agency responsible for reviewing and approving state agency rules, for giving the ADAWS the greenlight in 2024. 

Hobbs’ office and ADWR have disputed the characterization of the requirements as a tax and have defended the ADAWS as a way to preserve water supplies and continue home building in areas of the Valley that are dependent on groundwater.

Attorneys for ADWR filed motions to dismiss both lawsuits. An oral argument in the case filed by legislative leaders and HBACA is scheduled for Nov. 19, while the lawsuit filed by the Goldwater Institute on behalf of HBACA is currently awaiting a ruling from the Maricopa County Superior Court. 

Building water resilience through innovation and partnerships

Arizona stands at a pivotal moment. The Colorado River – long central to our state’s growth and prosperity – is shrinking under the strain of drought and rising demand. The challenges are real, but so are the opportunities. For decades, Arizona has led the nation in confronting water scarcity with foresight and resolve, from pioneering conservation strategies to forging multi-state agreements. That tradition of leadership matters now more than ever.

As we prepare for a future with less water, the path forward must be built on smart solutions, strategic partnerships and regional collaboration. At EPCOR, we’re committed to that work. Serving diverse regions and drawing from multiple sources gives us a clear view of Arizona’s water challenges and the responsibility to act. Our lowest hanging fruit is addressing aging infrastructure and making investments that conserve water, support growth and create greater efficiencies across our water and wastewater systems. Now, as pressures mount, innovation plays a critical role in shaping our next chapter. 

One area that innovation is making a measurable difference is leak detection. Through smart meters, we’re helping customers identify leaks early – saving water and reducing costs. And, through our partnership with FIDO Tech, we’re using AI and acoustic sensors to detect underground leaks. In fast-growing communities like San Tan, this technology has helped us rapidly find and repair over 115 million gallons of leaks annually that might have gone unnoticed for years.

We’re also advancing solutions through strategic partnerships. EPCOR recently collaborated with several startups through the Arizona Commerce Authority and Plug and Play’s sustainability cohort. One promising pilot effort is through OXbyEL, a local company developing a low-cost method to remove PFAS. Their system doesn’t just trap the contaminant – it breaks it down at the molecular level. Though early-stage, this kind of forward-thinking work shows how utilities can accelerate technology to protect public health. 

Looking ahead, we’re also exploring predictive maintenance and advanced decision-support systems that help us make faster, smarter decisions and keep our systems more resilient. Across Arizona, our industry is advancing supply and efficiency, from expanded reuse to regional water development projects. While EPCOR isn’t involved in every initiative, we’re proud to be part of the broader movement – from our innovative facilities where we reuse or recharge 96% of the wastewater we treat to our expansive conveyance systems that move water from where it’s abundant to where it’s needed. 

Arizona has always led in water supply planning and management. The next chapter of Arizona’s water story is being written by all of us – utilities, industry and communities working together to secure our water future. Through smart planning, bold solutions and a united approach, Arizona will continue to lead as other states follow.

Shawn Bradford is senior vice president of EPCOR USA. 

Canada’s EPCOR promises a decade of investment in Arizona’s water infrastructure

When EPCOR moved to Arizona in 2011, company officials saw a unique opportunity to expand its footprint despite the state’s complicated water challenges, sustained drought conditions and growing population.

Since 2011, EPCOR has invested more than $2.8 million in infrastructure improvements, including building and upgrading wastewater facilities, expanding its meter connections to serve growing areas of the Valley, and partnering with other Valley cities to serve customers and share facilities in areas stretching from the Loop 303 corridor in the West Valley to San Tan Valley.

In November, the utility company moved its more than 31,000-square-foot U.S. headquarters to a new office in Glendale. Over the next decade, the company plans to invest another $1 billion.

The Canadian-based company, which also has a presence in New Mexico and Texas, acquired Chaparral Water Company when it first moved to the state, followed by the acquisitions of Arizona American Water Company and New Mexico American Water Company in 2012.

It has since expanded its reach to the area around Luke Air Force Base and has set more than 100,000 new meter connections in the West Valley to accommodate the area’s growth since 2012. In addition, the company serves a number of other areas including Buckeye, Sun City and Anthem.

“That was just all the organic growth — all that population boom that the West Valley has experienced in the last…dozen years — we’ve captured a large portion of that,” Shawn Bradford, Senior Vice President of Regulated US Water, EPCOR’s U.S. branch, said.

In 2021, EPCOR purchased Johnson Utilities in the San Tan Valley area after the water and sewer company struggled with wastewater treatment issues, overflows and other challenges. EPCOR subsequently invested $259 million in the San Tan Water & Wastewater Districts for facility improvements and built the Copper Basin Water Reclamation Facility, which increased wastewater capacity and ended a moratorium on home building in the area.

“Once the wastewater treatment plant was up and running, they were able to lift that limitation and allow San Tan to grow as demand sees fit,” Bradford said.

EPCOR has also committed to building a standpipe to provide water service for residents in the Rio Ver​de Foo​thills outside Scottsdale and trading service territories with Queen Creek to move customers closer to each utility’s infrastructure.

Queen Creek has also collaborated with EPCOR to treat wastewater, and will look to work with the company on future capital projects such as a water treatment plan where both utilities have ownership and can treat their own supplies, said Paul Gardner, water resource director for the Town of Queen Creek.

“We’re so close together and there’s so many opportunities,” Gardner said. 

These types of partnerships are financially feasible and can save the companies and customers money, he said.

“It ends up saving…rate payers in both communities, where you can have two or three entities going together to build these facilities,” he said. “And as much as pricing has gone up and how costly everything is, this really is a win for the rate payer, no matter what community they live in.”

EPCOR will continue to face challenges, including continuing to upgrade its infrastructure, especially given the increased costs of building water treatment plants.

Still, Bradford is confident that the company can handle the task.

“We think we’re uniquely qualified to solve difficult water challenges, complex water problems, and when you’ve got sustained drought in a booming economy and a booming population base, there’s a challenge…managing your water resources,” he said. 

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