As the Arizona Corporation Commission grapples with the future of Salome Water Company, the potential for state intervention looms over the heads of about 150 La Paz County residents who depend on the utility for their water supply. The water provider, now out of compliance with several state regulatory agencies, has been left to fend for itself after the death of its owner last year, leading to a series of revocations of its permit to operate. Amidst this regulatory disarray, the community has rallied, attempting to temporarily mend what they can without the proper resources at hand.
Without a clear successor to manage the Salome Water Company's affairs effectively, Jim Downing, a local engineer, along with Southwestern Utility Management, has stepped in to temporarily take over the utility's operations. According to a statement obtained by AZPM, attorney Steve Wene noted that the team has been working unpaid since the previous owner's demise. "That's the point I'm making here, is that the whole community is pitching in to help, because everybody knows that Mr. Farr, the former owner, kind of ran this thing over a cliff," said Wene.
With the system demand already maxed out at 100%, Salome needs a serious overhaul that includes a new water tank, a request fraught with logistical complications as a stronger infrastructure is required to handle any resultant increase in water pressure. An additional financial strain is evident as the company continues to operate at a loss, despite an $8 emergency surcharge on customers that the Corporation Commission approved back in 2017. In response to this ongoing issue, the commission directed the current management to file a rate case within six months or face the consequences of paying back unauthorized surcharges and potentially losing control over the utility.
Even though Salome currently provides water that meets state and federal quality standards, there are growing concerns about the sustainability of the water supply. "The company owns one well that is expected to go dry within six months," Steve Wene told AZPM. On top of that, there exists no formal agreement to secure continued access to a second well, adding to the precariousness of the situation.
New ownership under Stacy Romero Brown, however, isn't seen as the silver bullet solution. Commission Chairman Jim O’Connor and Commissioner Lea Márquez Peterson have strongly urged Romero Brown to sell the utility to a larger water company, one that has "a thing called capital that are willing to show up at the table and take the liability off Ms. [Romero] Brown's shoulders," O’Connor expressed in a moment of candor. Cactus State, a nearby utility with the resources to potentially revive Salome's water supply, has shown interest, yet Romero Brown remains reluctant to sell. In the delicate dance between autonomy and intervention, the Arizona Corporation Commission continues to weigh its next steps, hoping to secure more than just water for the residents of Salome – stability and certainty in an essential service.
