Attorney General Mayes Challenges Picacho Water and Sewer Rate Hikes That Doubled Residential Bills
PHOENIX – Attorney General Kris Mayes today announced her office has filed its opening brief in the Arizona Court of Appeals, challenging the Arizona Corporation Commission's March 2026 approval of rate increases for Picacho Water and Picacho Sewer serving Robson Ranch near Eloy. The new rates nearly doubled the average residential customer's combined monthly bill, from $72.01 to $143.59.
The brief argues the Commission violated its constitutional duty to set "just and reasonable" rates by never examining the details of JW Water Holdings' purchase of the utilities, which closed just four months before the rate applications were filed. Under Arizona Corporation Commission v. Arizona Water Company, the Commission must consider all relevant evidence of a utility's fair value, which can include a recent purchase transaction. The State argues the Commission itself found those documents relevant during the rate case, and that the documents bear on the rate base, the cost of equity, and the cost of debt.
"A private equity-backed company bought these utilities and asked for massive rate increases just four months later, but the Commission didn’t analyze that deal when considering the rate increase. Robson Ranch families saw their bills double. The Arizona Constitution requires rates that are fair to ratepayers, not just shareholders, and that means looking at all the relevant evidence. My office will keep fighting to protect Arizonans and make sure any rate increases approved by the Commission are truly just and reasonable,” said Attorney General Mayes.
The State asks the Court to remand the case so the Commission can review the full transaction and revise the rates as needed.
A copy of the brief is available.
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