During a recent government meeting, council members discussed the implications of infrastructure development in Pinal County, particularly concerning large commercial gas customers. The conversation highlighted the significant investments required to support these customers and the associated risks and benefits for the city.
Council member Summers raised concerns about the infrastructure needed for large gas users, emphasizing the importance of ensuring that these developments do not burden ratepayers in the future. The council confirmed that while the city would take on some infrastructure responsibilities, the primary costs would be covered by the commercial users themselves. This arrangement aims to generate substantial revenue over time, with a payback period projected to be under ten years.
The discussion also touched on the potential for future growth in the area, with undeveloped land being marketed for industrial use. This growth could lead to multiple users benefiting from the infrastructure, similar to existing water line agreements. However, the council acknowledged the complexities involved in these agreements and the need to prevent any \"free-loading\" issues among developers.
In terms of rate adjustments, the council proposed changes to the billing structure to transition from a declining to an inclining rate system. For average residential customers, this would result in a modest increase of $1.12 per month. Commercial customers would see a more significant adjustment, with an average increase of $26.63 per month, although the rates would still remain competitive compared to Southwest Gas.
Overall, the meeting underscored the city's proactive approach to infrastructure development while balancing the financial implications for both commercial and residential ratepayers.