The Arizona Corporation Commission (ACC) is pushing for a legislative shield to protect Arizona's ratepayers from potential spikes in their utility bills. This move comes in response to the Environmental Protection Agency's (EPA) recent action labeling certain substances as hazardous waste. The ACC's concern is the impact this designation could have on water and wastewater utilities and, by extension, the customers they serve.
To stave off possible financial implications, the Public Utilities Commission has forwarded a letter to Congress, imploring it to pass a federal law that would exempt utilities from liability for disposing of these hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund. The Republican Commissioner Nick Myers, who initiated the proposal for the letter in July, explained that utility companies are more recipients of these substances rather than their creators. "This designation as it stands right now, subjects those utilities and the customers, potentially to CERCLA violations and lawsuits and higher disposal fees," Myers said in a statement obtained by AZPM News.
The concern arose earlier this year when the EPA classified per- and polyfluoroalkyl substances (PFOA and PFOS) under CERCLA—a designation meant to ensure that polluters are held responsible for their actions. Yet, according to Myers, this has inadvertently placed a heavy burden on the water utilities to manage the cleanup costs and associated damages. He is advocating for redirecting the costs back to the polluters. Echoing Myers’ urgency, the entire ACC board has unanimously and in a bipartisan manner, approved the sending of the letter.
Rising costs pose a particular threat to rural utilities; smaller scale yet vital elements in our broader network of public services. Myers expressed to AZPM News how projections indicate that certain utilities could see their costs quadruple—a stark outlook for those already navigating the fiscal tightrope. "We’re doing everything we can to try to mitigate the costs of that," Myers added, demonstrating the ACC's commitment to cushioning consumers from harsh economic blows.
