Update on Cactus State rate increase

YUMA, Ariz. (KYMA) - Arizona Attorney General Kris Mayes wrote a letter regarding a water rate increase in parts of Arizona including Yuma.

Tierra Mesa Estates and Rancheros Bonitos are two systems in yuma that use Cactus State.

Residents were notified last November of a rate increase that was approved by the commission in which customers saw their bill jump over 300%. Central State, which is the parent company of Cactus State says they're looking into the matter.

"I am aware of the letter. We plan on reopening a rate case. Probably most likely file another rate case where you could deal with these issues sometime in the future...Unfortunately, these systems have been left in disrepair for decades. I think the uranium issue in Tierra Mesa has existed for 50 years," Josiah Cox, president of Central State said.

There are also still high amounts of uranium in the water above the legal limit. For the pricing, Cox says it's based on the meter of each property in the estates.

“We are programmed that if you don't believe in meter reading, we can go remove the meter and test it. And if it is broken, we issue a credit to the customer or refund and we pay for the meter replacement. If it's reads correctly, the customer has to pay for that service," Cox said.

The Yuma County Board of Supervisors also sent a letter to the commission inviting them to hold a public meeting with those impacted by Cactus state. Chairman Nick Myers who sits on the commission board provided a statement saying:

"The Commission understands the ratepayers’ struggle with their monthly utility bills and is committed to working with the community to address their concerns.  The previous owner of this utility, Tierra Mesa Estates Water Co., failed to seek consistent rate adjustments. The previous rates were set in 2000, the utility has since been purchased by Cactus State Utility Operating Company, LLC, which filed a rate adjustment in 2024, and that case established the rates that customers are now experiencing.  The utility is currently facing about a dozen ongoing violations of the Arizona Department of Environmental Quality water safety standards in relation to unsafe levels of uranium.  Cactus State was granted financing approval in the recent rate case for the construction of a new water treatment plant for the Tierra Mesa system that would remedy the ADEQ violations.  The combination of the previous owner’s failure to seek consistent rate adjustments over the years and the serious water safety violations that must be immediately addressed both contribute to the current rate shock.  I am working with the Yuma County Board of Supervisors to set up a virtual town hall with county officials and ratepayers to answer questions and provide more information regarding the rate case.”

We will keep you updated on when that meeting will be.