Maricopa’s only water provider admits — it messed up.
Global Water Resources fessed up during a virtual town hall last night to overcharging Maricopa residents at least $7.8 million on utility bills since 2010.
“The accounting error had to do with $7.8 million in infrastructure being classified as ‘operating’ or ‘in-service’ before it should have been,” said Global Water Executive Vice President Joanne Ellsworth.
The issue began in 2007 after Global Water built a second wastewater treatment plant southwest of the city in anticipation of growth. The 2008 recession killed those growth plans but not charges to customers for the unused infrastructure.
Customers began seeing higher bills in 2010 and Global Water didn’t catch the accounting error until this year.
“As part of homes being built in Amarillo Creek, we were rehabbing the infrastructure,” Ellsworth said. “We started going through all of the accounting information, the construction information, the engineering plans. And that process is what led to the discovery of this.”
In response, Global Water will issue a $1.73 credit on wastewater bills later this year. That process begins with an application to the Arizona Corporation Commission, which the utility filed last week.
“We asked them to process that as quickly as possible, so I think we’re hopeful that the bill credit could go into effect in the next few months,” Ellsworth said.
The credit will be applied to current and new customers, since the error continues to affect current rates.
Reimbursements for former customers, however, may not occur until after the utility has a third-party completes an audit and the Arizona Corporation Commission reviews a rate case. A complete resolution could happen by 2026.
While not ideal, Ellsworth said they want to resolve the issue as soon as possible.
“There’s a part of us that wishes we could resolve it sooner for [customers],” she said. “It’s not necessarily easy or comfortable to stand up and say we made a mistake, but we want them to know we’re trying and we’re trying to get it fixed.”
Global Water will hold a second tele-town hall tonight at 6 p.m. to review the credit and answer questions. Customers can join by calling 1-855-756-7520.
