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Phoenix Water Customers Face New 'Drought Surcharge' as Colorado River Cuts Bite
Phoenix is preparing to add a drought surcharge to water bills as Colorado River cutbacks reduce the city's supply, a move that will hit households already facing rising utility costs.
Phoenix water customers will soon see a new line item on their bills: a drought surcharge tied to the shrinking Colorado River supply. The city is moving to impose the fee as federal and state cutbacks reduce how much water Arizona can draw from the river, the desert metropolis's most important source of drinking water.
The surcharge is designed to recover costs and encourage conservation as the Colorado River basin struggles with a multi-decade drought made worse by climate change. Phoenix, like other cities in the region, has already implemented water restrictions and invested in infrastructure, but the new fee signals that the crisis is now hitting ratepayers directly.
Details on the exact amount of the surcharge and when it will take effect were not immediately available, but the move comes as Arizona and six other basin states negotiate steep reductions in water use. The Colorado River supplies roughly 40 percent of Arizona's water, and the Central Arizona Project canal delivers it to Phoenix, Tucson and agricultural users across the state.
The surcharge is likely to be felt most acutely by low-income households, who already spend a larger share of their income on utilities. Consumer advocates have urged the city to pair any new fee with assistance programs and to ensure that large commercial users bear a fair share of the burden.
Phoenix has positioned itself as a leader on water conservation, recycling wastewater and storing excess river water underground. But the accelerating decline of Lake Mead and Lake Powell has forced even fast-growing cities to confront limits. The surcharge is the latest sign that the era of cheap, abundant Colorado River water is over.
The city council is expected to formally approve the surcharge in the coming weeks. Residents will have an opportunity to comment at public meetings before the fee is finalized.