Developer Owned Utilities Struggle to Manage the Cost of Water in Northern Arizona

The Arizona Daily Sun details the curious case of subdivision development, private utilities, and skyrocketing utility rates that linger as an effect of the last development cycle of boom and bust.

1 minute read

April 7, 2015, 10:00 AM PDT

By James Brasuell @CasualBrasuell


Emery Cowan reports on the quickly escalating cost of water in an Arizona subdivision known as Flagstaff Meadows, which is served by a utility called Utility Source. The utility is requesting a rate increase from state regulators that would, if allowed, quadruple the price of water for residents in the last nine years.

In Flagstaff Meadows, Cowan reports, such high water rates would be too much for some homeowners to bear. Unfortunately, the Arizona Corporation Commission, the publicly elected body that regulates private utilities, predicted many of the development's current problems back in 2004 when the subdivision was first built.

According to Cowan: "While Utility Source's case is unique in many ways, several key issues are the product of larger development challenges that are pervasive across the state: small developer or landowner-owned utilities with costs that overwhelm a small ratepayer base, subdivisions left half-built after developers went bankrupt during the housing bust and a reliance on groundwater that, at least in northern Arizona, is difficult and expensive to access and pump."

Arizona has more than 400 small utilities, according to the article, which is an unusually high number. So many small utilities leads to problems with economies of scale, expertise on the part of the utilities, and trouble dealing with impacts arising from the persistence of zombie subdivisions.

Sunday, April 5, 2015 in Arizona Daily Sun

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Red 1972 Ford Pinto with black racing stripes on display with man sitting in driver's seat.

Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto

The Tesla Cybertruck was recalled seven times last year.

July 2, 2025 - Mother Jones

Close-up of park ranger in green jacket and khaki hat looking out at Bryce Canyon National Park red rock formations.

National Parks Layoffs Will Cause Communities to Lose Billions

Thousands of essential park workers were laid off this week, just before the busy spring break season.

February 18, 2025 - National Parks Traveler

Paved walking path next to canal in The Woodlands, Texas with office buildings in background.

Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50

A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.

February 19, 2025 - Greg Flisram

Screenshot of shade map of Buffalo, New York with legend.

Test News Post 1

This is a summary

0 seconds ago - 2TheAdvocate.com

Red 1972 Ford Pinto with black racing stripes on display with man sitting in driver's seat.

Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto

The Tesla Cybertruck was recalled seven times last year.

18 minutes ago - Mother Jones

test alt text

Test News Headline 46

Test for the image on the front page.

March 5 - Cleantech blog