Summary:
The Sunrise Water Company (Sunrise) is a private water company regulated by the Arizona Corporation Commission. Their service area is partially in Peoria and partially in county “islands”. Its service area is generally located between 75th Avenue on the east, Lake Pleasant Parkway on the west, Happy Valley Road on the north, and Williams Road on the South. Per Sunrise, they have approximately 2000 connections, many of which are Peoria residents and businesses. Their water supply comes entirely from groundwater wells. The Central Arizona Groundwater Replenishment District legally mitigates for the water that Sunrise pumps from the ground by recharging water in the Maricopa Active Management Area on Sunrise’s behalf.
An agreement (LCON01611) was previously signed in June 2011 between the City of Peoria (Peoria) and Sunrise Water Company (Sunrise) to allow for a single temporary interconnection between the Peoria and Sunrise water systems. The intent of this connection was to provide water to Sunrise in the event that they experienced some type of system failure and needed additional water to serve their customers. Sunrise has used this connection several times, primarily during summer months when water demand is at its peak. Sunrise is charged for the water as if they were a commercial customer.
Earlier this year, Sunrise requested a second interconnection to the Peoria system that will allow for additional flexibility in an emergency. Sunrise has indicated that they may not have enough water to supply their customers this summer due to a failed well project and a second well with mechanical issues. The requested second connection could prevent water shortages for Peoria residents in the Sunrise water service area. This second connection requires a modification of the existing agreement. The principal changes in the new agreement include:
- Specifying the location and size of a new, second connection between the two systems.
- Requirement by Sunrise to give Peoria Long Term Storage Credits (LTSCs) annually in an amount equal to the amount of water they receive from Peoria. This stipulation will account for the LTSCs Peoria will use, or not accumulate, to supply Sunrise the water.
The cost to install the second connection point will be paid for 100% by Sunrise. No City contribution will be made for the construction and any water used by Sunrise that is processed in Peoria will be sold at the prevailing rate. Because Sunrise will convey LTSCs to Peoria, impacts to our 100-year assured water supply are negligible.