SALOME, AZ — Residents in the small town of Salome, an hour west of Wickenburg, are now paying more for water under an emergency rate hike.
The increase comes after the Salome Water Company received approval in December from the Arizona Corporation Commission to implement $24 in monthly surcharges for a pipeline and operating expenses. The surcharges went into effect February 1.
Company officials told commissioners at that meeting they were barely able to meet water demand, and one of their two wells would go dry within six months.
“Our primary well… is going dry,” Steve Wene, the company’s attorney, told commissioners in December.
Residents in this unincorporated community told ABC15 that their water pressure is low, making it difficult to have enough flow for one person to shower while another washes dishes.
Company officials estimate the price tag for repairs and a new well at more than $2 million.
“My biggest concern if this isn’t rectified — the town’s going to run dry,” said Mick Darcey, a part-time resident for 20 years.
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Documents filed with the corporation commission say the company’s two wells produce only 73,000 gallons per day – not enough to meet demand during the summer peak. The company has discontinued bulk-water sales and stopped irrigating the high school and elementary school fields.
Part of the increase the commission approved will go toward installing a pipeline to a private well that the owner has agreed to lease to the company for two years. The leased well will help meet current demand, according to the company.
But there are other issues, including:
- The Arizona Department of Environmental Quality says a 250,000-gallon water storage tank that dates to the early 1900s must be replaced. The state is suing the water company’s owner for failing to replace the tank.
- The company has failed to file required annual reports with the commission since at least 1984. The commission has now ordered the company to file reports for the last two years.
- Seven years ago, the commission approved an $8 monthly emergency surcharge that was supposed to last 18 months. But the surcharge never went away; customers are still paying it. The commission has ordered the company to end that surcharge within 12 months.
- The company owes property taxes of $48,801. Officials testified during the hearing the Salome Water Company “is currently insolvent,” according to documents. It does not generate enough income to pay its bills and expenses.
Commissioners warned the company must come back within six months with long-term solutions. Otherwise, the commission may take the rare step of appointing an interim manager.
Company officials declined ABC15’s request for an interview.
Wene told commissioners in December that the company’s long-time owner, Bill Farr, died in 2023. Farr operated the company out of his house. He also owned a local bar. Some people would pay their water bill at the bar.
Wene said the current owner, who inherited the water company from Farr, brought in professionals and the Tucson-based Southwestern Utility Management to provide field services and billing.
“What we have is a whole community who's been working together to try to assist this company to get back on its feet,” Wene said.
Email ABC15 Investigator Anne Ryman at: anne.ryman@abc15.com, call her at 602-685-6345, or connect on X, formerly known as Twitter, and Facebook
