A proposed rate increase by Liberty Utilities that would significantly raise water and wastewater bills for West Valley residents is moving into the next phase, with a formal hearing scheduled before the Arizona Corporation Commission.
The hearing is set for 10 a.m. March 23 at the commission’s offices in Phoenix, where regulators will consider the company’s request to boost revenue to recover nearly $200 million in infrastructure investments.
Liberty Utilities Litchfield Park, which serves customers in Litchfield Park, Goodyear, Glendale and Avondale, is seeking approval for rate increases tied to about $197 million in system upgrades and regulatory compliance costs.
If approved, the new rates could take effect in the third quarter of 2026.
Under the proposal, average residential water bills would increase by about 43%, or more than $10 per month. Wastewater bills would rise by roughly 54%, adding nearly $25 per month.
Company officials say the increases are necessary to recover costs from major capital improvements made in recent years, particularly in wastewater infrastructure.
“The case really carries the most significant amount of investment in infrastructure,” said Regina Wise, a Liberty Water representative. “Wastewater is the major driver and the rate increases that folks are seeing.”
Of the total investment, about $145 million is tied to wastewater projects, while roughly $52 million has been spent on water system improvements, including new wells aimed at strengthening supply reliability.
“We’re investing in our community,” said Moses Thompson, president of Liberty. “A good portion of that is these wells that provide additional water sources that make us resilient and consistent for our customers.”
Liberty officials also point to the age of current rates as a key factor behind the request. Existing rates are based on operating costs from 2016, leaving the company working to catch up with rising expenses.
“This rate adjustment will align us so that our rates are actually being covered at the current cost,” Wise said.
The filing also reflects continued population growth and demand in the West Valley, which officials say has driven the need for expanded treatment capacity, including a new water treatment plant.
In addition to the base rate increases, Liberty is requesting approval for a temporary surcharge to recover rate case expenses, 44 cents per month for water customers and 53 cents for wastewater customers over three years. The company is also seeking authorization to issue up to $65 million in long-term debt.
Liberty is proposing a formula rate plan that would allow for more frequent, smaller rate adjustments in the future, which officials say could help customers avoid sharp increases.
“That will really allow users to avoid rate shock,” Wise said. “Fluctuating more frequently would allow us to ease into higher or lower prices as needed.”
The March 23 hearing will be held at the Arizona Corporation Commission’s offices at 1200 W. Washington St. in Phoenix and is open to the public. The meeting will also be recorded and made available online.
Public comments are being accepted through the commission’s website as regulators consider the proposal.
Meet James James Goldmeer joined Independent Newsmedia, Inc., USA, in July 2024, starting their career as a reporter in Goodyear and Litchfield Park.
Community: James grew up in the West Valley, calling Avondale home and going to school in Glendale and Peoria. Returning to the community after university, James plans to get involved in everything arts and culture, and civil rights.
Education: Northern Arizona University a bachelor's degree in Journalism, a certificate in Professional Communications, with a minor in English.
Random Fact: James spent half a year as an intern for the Arizona House of Representatives communication team, working with legislators to inform the public through press releases and social media.
Hobbies: James collects postcards and old books, reads memoirs and attends local jazz shows.
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