Arizona Attorney General Kris Mayes announced Oct. 6 that her office filed its opening brief in the Arizona Court of Appeals challenging rate increases for Picacho Water and Picacho Sewer, which serve Robson Ranch near Eloy. The Arizona Corporation Commission approved the increases in March 2026.
The attorney general says the new rates nearly doubled the average residential customer's combined monthly bill, from $72.01 to $143.59. The brief argues the Commission broke its constitutional duty to set just and reasonable rates because it never examined the details of JW Water Holdings' purchase of the utilities. The purchase closed four months before the rate applications were filed.
Mayes said a private equity-backed company bought the utilities and asked for large increases four months later without the Commission analyzing the deal. She says the state constitution requires rates that are fair to ratepayers and not only to shareholders. The state asks the court to remand the case so the Commission can review the full transaction and revise the rates as needed.
This is an appeal, and the court has not ruled. The release does not say whether customers would get refunds if the rates are changed, and the company's position is not included. Customers of a regulated utility can file comments or complaints with their state utility commission when a rate case is pending.