'It's over': Arizona Corporation Commission approves long-term water fix for Rio Verde Foothills

The Arizona Corporation Commission voted Wednesday to approve a permanent solution to Rio Verde Foothills' water woes, bringing an end to months of turmoil for residents.

Construction can now begin to pipe gallons of precious desert water to a new standpipe in the community.

"I'm just glad it's over — for the most part," said resident Cody Reim.

The community, located just east of Scottsdale in unincorporated Maricopa County, is partly dependent on hauled water. It was left without a reliable source after Scottsdale officials cut off its water supply in January, citing concerns about ongoing drought conditions on the Colorado River.

Last month, it saw temporary relief when an interim water solution was cobbled together by its standpipe district, created by state lawmakers in June via emergency legislation. But that fix — a series of agreements between the standpipe district, the city of Scottsdale and Epcor, a private water utility regulated by the state — only holds until the end of 2025.

The community's new permanent solution, a long-term arrangement with Epcor, should ensure that residents never again run dry.

Still, they might not be entirely out of the woods. The solution requires Epcor to build costly new infrastructure that officials previously estimated could take 24 to 36 months to construct.

That puts the utility on a tight timeline. If its infrastructure isn't fully in place and operational by the end of 2025, the community could face new challenges.

"We'll do everything in our power to make it happen," said Thomas Loquvam, Epcor's general counsel and vice president of public policy. "But right now, there's too many variables for me to say one way or another that we know for sure when it's going to happen."

Nuts and bolts: Hookup fees, enrollment limit

Commissioners left a recommended order from Administrative Law Judge Charles Hains largely untouched.

The plan calls for limiting growth in the area by instituting an enrollment period that would allow sign-ups for standpipe service until June 2024.

Property owners who have not yet built homes in the Foothills can also sign up for service, but Epcor will restrict such enrollments to 150 homes. If more sign up, the company will conduct a lottery to distribute the service slots.

Additionally, the final plan will impose an initial water rate of $16.38 per 1,000 gallons. To pay for Epcor's infrastructure, property owners intending to build new homes in the community will be charged a $24,000 hookup fee.

People currently fully dependent on or sometimes needing hauled water will not have to pay that hookup fee, but will be charged monthly service fees.

All of the fees and rates for Foothills' customers will be adjusted as the full costs of providing water to the community become more clear.

Only one amendment to Hains' recommended order, proposed by Republican Commissioner Nick Myers, ultimately passed the commission. Hains recommended that the commission cap the ultimate adjusted cost of water for residents at $20 per 1,000 gallons, a measure that Myers removed and called an artificial subsidy.

That means the ultimate cost of water is wholly unknown. Epcor officials have estimated the rate could range from $20 per 1,000 gallons to $60 per 1,000 gallons.

It isn't the only detail of the plan that remains hazy. Utility and government officials also remain uncertain of the final location of the standpipe.

That point concerns some of the Foothills' neighbors, who worry about noise and traffic impacts on their communities if a standpipe is placed at their doorstep.

Residents call saga an 'eyesore' for state

Rio Verde Foothills residents remain divided on ideal solutions to their water woes and exactly who is to blame for their predicament.

But nearly all agree that their struggle, which widely captured attention, needlessly became a political squall between local and state leaders.

"I'm very disappointed in our government and elected officials," resident Jennifer Simpson told the commission on Wednesday. "This has become a national and international eyesore for our state."

Hours after Simpson spoke, a state water policy council recommended legislation to Gov. Katie Hobbs intended to prevent a repeat of Rio Verde Foothills by placing additional restrictions on lot splitting. Council members noted that such legislation could help protect urban and rural groundwater while stopping a spate of publicity questioning the state’s sustainability.

Most homes in the Phoenix area are covered by the state’s Groundwater Management Act, which requires proof of a 100-year water supply before construction. But when landowners split property into five or fewer contiguous lots, they are exempt from that requirement. That means homes can be built without an assured water supply, like some in Rio Verde Foothills.

'Wildcat' subdivisions targeted: Governor's water council submits management proposals, already faces lawmaker opposition

Meanwhile, some politicians celebrated the commissioners' vote. Maricopa County Supervisor Tom Galvin, who warred with Scottsdale Mayor David Ortega over an interim solution for the community, noted that a long-term agreement with Epcor was his idea.

"I'm just really, really happy for the residents of Rio Verde Foothills," he said, adding that the community's struggles wrongly became a "political football."

Ortega has previously criticized Galvin and other county supervisors, who unanimously voted down a proposed water taxing district last year, for failing to appropriately address the community's water issues sooner. He told The Republic that Galvin "continues to whine about the unanimous decisions of my city council."

Ortega added he congratulated Meredith DeAngelis, chair of the community's standpipe district, on the Corporation Commission's decision. DeAngelis confirmed to The Republic that she received messages congratulating the community from both Galvin and Ortega.

Foothills resident Karen Nabity told commissioners on Wednesday that she was "impressed by how well you've heard our community."

"When going through a process like this, it's so important to feel like you've been heard," she said. "I do feel like all of you have taken the time to hear us, so thank you."

Republic reporter Brandon Loomis contributed reporting to this article.

Sasha Hupka covers county government and regional issues for The Arizona Republic. Do you have a tip? Reach her at sasha.hupka@arizonarepublic.com. Follow her on X, formerly Twitter: @SashaHupka. Follow her on Instagram or Threads: @sashahupkasnaps.

This article originally appeared on Arizona Republic: Arizona regulators approve long-term water fix for Rio Verde Foothills