Phoenix Plans Stage 2 Drought Response as Colorado River Cuts Loom

Phoenix anticipates advancing to Stage 2 of its Drought Management Plan in January as Arizona braces for lower Colorado River deliveries. The city announced on November 10 that residents and businesses will be asked to voluntarily reduce water use by 5%, while city departments will aim for a 10% reduction. City officials say water service will continue without interruption.

Federal operating guidelines call for annual Colorado River delivery reductions of 1.25 million acre-feet to Lower Basin states in 2027 and 2028. Under a proposed sharing agreement, Arizona would take 760,000 acre-feet of the cuts. The river supplies roughly 40% of the water Phoenix residents drink, and the city anticipates its deliveries could fall by about 30%. Recent rainfall has improved Salt and Verde river storage but will not offset the Colorado River reductions.

If Stage 2 is declared, Phoenix plans a temporary $2.10 surcharge for each 748-gallon unit used above monthly thresholds: 20 units for residential customers, 300 for commercial customers and 15,000 for industrial customers. The fee would apply only to use above those limits. Current estimates suggest it would affect 16% of residential bills, 7% of business customer bills and 1% of factory customer bills, and could raise about $40 million for conservation and water-supply efforts.

The city also plans to expand free water-efficiency consultations and increase incentives for removing grass and installing smart irrigation controllers. A new incentive would offer $100 per year for leak repairs. Phoenix’s broader strategy includes drawing on backup supplies, developing new sources and reducing demand.

Projects include advanced water-purification facilities planned for three locations and regional efforts to boost Verde River reserves by means of the Bartlett Dam project. City officials say some backup supplies are limited and long-term projects will take years to come online. Phoenix has been under a Stage 1 Water Alert since June 2022; Stage 2 is the next level of its drought plan.

Phoenix Acts to Protect Water Supplies as Federal Cuts Loom

Phoenix is preparing residents and businesses for a tighter water future, with Stage 2 of its drought plan expected as early as January. The city’s November 10 announcement calls for voluntary 5% cuts by customers and a 10% reduction by city departments, alongside expanded conservation help. Officials say reliable water service will continue.

The pressure comes as federal operating guidelines set annual Colorado River delivery cuts of 1.25 million acre-feet for Lower Basin states in 2027 and 2028. Arizona would absorb 760,000 acre-feet under a proposed sharing agreement. The river supplies roughly 40% of the water Phoenix residents drink, and the city says its deliveries could decline by roughly 30%. Recent rainfall has helped Salt and Verde river storage but cannot make up for the Colorado River reductions.

A temporary surcharge would charge $2.10 per 748-gallon unit above monthly limits if Stage 2 is declared. The thresholds are 20 units for residential, 300 for commercial and 15,000 for industrial customers. The city estimates the charge would reach 16% of household charges, 7% of business customer charges and 1% of factory customer charges, generating about $40 million for conservation and additional supplies.

Phoenix is also increasing grass-removal and smart-controller incentives, adding a $100 annual leak-repair incentive and expanding free efficiency consultations. Its plans include new purification facilities and regional water-storage work, but officials say major projects will take years and backup supplies are finite. The city’s response recognizes that protecting a shared resource requires both long-term investment and practical assistance for customers asked to conserve.

Phoenix’s Drought Plan Adds Surcharge as Water Cuts Approach

Phoenix is preparing to escalate its drought plan, asking residents and businesses to reduce water use while putting a temporary surcharge on customers who exceed monthly limits. Stage 2 could begin as early as January. The city says service will not be interrupted, but it is preparing for reduced Colorado River supplies and changes to its operations.

Federal operating guidelines call for 1.25 million acre-feet in annual cuts to Lower Basin deliveries in 2027 and 2028. A draft pact distributes 760,000 acre-feet of the reductions to Arizona. Colorado River water accounts for about 40% of Phoenix’s drinking supply, and the city says its deliveries may fall by about 30%. Recent rainfall has improved Salt and Verde storage but does not erase the looming reductions.

Under the plan, the surcharge would be $2.10 per 748-gallon unit above 20 monthly units for residential customers, 300 for commercial customers and 15,000 for industrial customers. It would apply only after Stage 2 is declared and only to excess use. The city estimates 16% of residential bills, 7% of commercial bills and 1% of industrial bills would be affected; preliminary estimates put revenue at about $40 million.

Phoenix is asking customers for voluntary 5% cuts and directing city departments to reduce use by 10%. It will also expand consultations and conservation incentives. The plan relies on backup supplies, new water sources and reduced demand, while officials acknowledge that some reserves are limited and projects such as purification facilities and expanded Verde River storage will take years. The city’s warning underscores the consequences of relying on a shrinking river supply.