Mohave Today

Government officials took over the management and assets of the EPCOR Water Arizona Inc., indicating they are fed up with skyrocketing rate hikes after area voters passed a referendum last year giving them the right to take over the water company.

Bullhead City officials filed an eminent domain case March 27 against EPCOR with the Mohave County Superior Court in preparation for the acquisition.

City Manager Toby Cotter told the Mojave Valley Daily News that city officers had hoped a deal could be worked out with the water company after last year’s election, but water executives had turned out to be intractable.

“There never were negotiations,” Cotter said in the Mojave News report. “EPCOR didn’t even have the courtesy of sending us a letter.”

A $55 million offer had been made by the city to EPCOR, an amount based on a valuation process by Raftelis Financial Consultants, Inc.

In November of 2019 area voters approved Proposition 415, giving consent to city officials to acquire the property and run it for the community.

The Mojave News report said EPCOR’s local average water rate had increased by nearly 90% since it took over the system from Arizona American Water in 2012. Concerns about rising water rates expressed by area residents and business owners led the city to seek acquisition of the system from the utility company.

Officials of EPCOR responded to the takeover after the court action with a letter in which they said the current COVID-19 pandemic is not the time to be changing operation of a water company.

“We’re surprised the mayor and city leaders are pushing forward in the middle of a dangerous pandemic. This is a generational public health crisis and it should be everyone’s top priority,” Rebecca Stenholm, the utility company’s director of public and government affairs said in the letter. “EPCOR has all hands on deck making sure water is safe, reliable and there when we need it. We’re disappointed the city isn’t waiting a few months to get past the pandemic.”

Cotter responded that the COVID-19 pandemic’s anticipated economic impact on Bullhead City residents demonstrated the need for the city to assume control of the system for residents.