Phoenix plans to enter Stage 2 of drought management plan, which includes surcharge for certain customers

With Colorado River water cuts looming, the city of Phoenix is preparing to enter Stage 2 of its drought management plan, which includes an extra charge for high-volume users.

City officials said Tuesday they expect to enter Stage 2 in January, when a new two-year Colorado River operating agreement with significant cuts to Arizona’s share is scheduled to take effect.

Arizona and the fellow Lower Basin states California and Nevada still need to approve the deal, but Phoenix officials are working under the assumption it will be finalized as is.

“We have long been planning for drought,” Mayor Kate Gallego said during a City Council policy meeting. “We’ve stored significant water underground for times of shortage, made infrastructure improvements that allow us to move water where it’s needed, and we continue to double down on conservation efforts.”

Arizona’s largest city is planning to rely more heavily on backup supplies and develop new water sources as it increases efforts to reduce unnecessary demand.

The goal of Stage 2 is to get residents and businesses to voluntarily cut water use by 5% and for city departments to reduce their use by 10%.

Stage 2 of Phoenix drought management plan includes surcharge for certain customers

The plan includes a temporary drought surcharge of $2.10 for each 748-gallon unit of water used above the following thresholds:

• Residential: 20 units per month.
• Commercial: 300 units per month.
• Industrial: 15,000 units per month.

Customers who do not exceed those thresholds will not be subject to the surcharge, which will take effect when Stage 2 is enacted.

Assuming current usage continues, the surcharge will affect 16% of residential bills, 7% of commercial bills and 1% of industrial bills. The fee is expected to generate about $40 million for conservation programs and new water supplies.

Phoenix increasing conservation incentives under Stage 2

Residents and businesses are being encouraged to take the following actions to cut their water usage:

• Find and fix leaks.
• Adjust irrigation and outdoor water use to the weather.
• Replace unused grass with desert-adapted landscaping.
• Install water-efficient devices.
• Make small, consistent changes that add up.

To encourage conservation, the city will increase or implement financial incentives for the following water-saving measures under the Stage 2 plan:

• The grass-removal incentive will increase from $2 to $4 per square foot.
• The smart irrigation controller incentive will increase from $75 to $150.
• A new $100 annual leak-repair incentive will be established.

Phoenix’s drought management plan was adopted more than 35 years ago and has been revised several times over the years.

“It was designed to be flexible and to serve as a framework that allows for nimble response,” Gallego said.

This month, Phoenix resumed water service disconnections for residential customers with delinquent accounts. The city suspended disconnections in March 2020 in response to the COVID-19 pandemic.

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