Cactus State UOC outlines water operations, compliance work and proposes ~10% flat-rate increase

Representatives from Cactus State Utility Operating Company briefed the Tusayan Town Council on Jan. 14 about company operations, regulatory compliance and proposed customer-impact items.

Fred Kriess of Cactus State said the company is addressing industry fragmentation, new regulations for contaminants of emerging concern and efforts to increase consistency and resiliency of services. He said the firm uses a primary contractor for licensed operators and maintains additional maintenance contractors on notice across the state to respond to larger incidents.

On rates, Kriess told the council staff and public the company is "proposing to add one new flat rate that would be approximately ten percent more than the current rates" and that the new structure would not take effect until mid- to late-2027. He said contractors and spare-parts inventory positioned near the service area help meet response-time commitments.

Council members pressed about local emergency staffing and inventory; Kriess said Cactus State would maintain spares and position technicians to meet response commitments and that larger repairs would use the company’s broader network of contractors. John Rueter of Hydro Resources also commented the town "will be in good hands" as the system evolves.

The presentation was informational; no rate vote or contract award was recorded at the meeting. Councilmembers and staff indicated they expect continued discussions and asked staff to return with additional detail if a formal contract or rate change is proposed.