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Phoenix to Enter Stage 2 Drought Plan in January, Adding Surcharge for High-Volume Water Users
Phoenix will enter Stage 2 of its drought management plan in January, imposing a $2.10-per-unit surcharge on high-volume water users while boosting conservation incentives as Colorado River cuts loom.
Phoenix is preparing to enter Stage 2 of its drought management plan in January, a move that will add a temporary surcharge for high-volume water users and expand financial incentives for conservation as the city braces for significant cuts to its Colorado River supply.
City officials said Tuesday they expect the new stage to take effect when a new two-year Colorado River operating agreement is scheduled to begin. Arizona, California and Nevada still must approve the deal, but Phoenix is planning on the assumption it will be finalized as written.
"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."
The Stage 2 plan aims to get residents and businesses to voluntarily reduce water use by 5%, while city departments are asked to cut their use by 10%. Phoenix also plans to lean more heavily on backup supplies and develop new water sources.
The surcharge will apply to water use above certain monthly thresholds: 20 units for residential customers, 300 units for commercial customers and 15,000 units for industrial customers. Each unit equals 748 gallons. The fee is $2.10 per unit above those levels.
Customers who stay below the thresholds will not pay the surcharge. Based on current usage, the fee would affect 16% of residential bills, 7% of commercial bills and 1% of industrial bills. It is expected to generate about $40 million for conservation programs and new water supplies.
To encourage savings, the city will increase or introduce several incentives under Stage 2. The grass-removal rebate will double from $2 to $4 per square foot, the smart irrigation controller incentive will rise from $75 to $150, and a new $100 annual leak-repair incentive will be created.
Residents and businesses are also being urged to find and fix leaks, adjust irrigation to the weather, replace unused grass with desert-adapted landscaping, install water-efficient devices and make small, consistent changes.
Phoenix's drought management plan was adopted more than 35 years ago and has been revised several times. Gallego described it as "designed to be flexible and to serve as a framework that allows for nimble response."
The announcement comes as Phoenix this month resumed water service disconnections for residential customers with delinquent accounts, ending a suspension that began in March 2020 during the COVID-19 pandemic.