By Angela Gonzales | Phoenix Business Journal
It’s survival of the fittest in Arizona’s water business, even though it’s technically an industry with no competition.
The state has 321 water companies, but only a few have the financial ability to invest millions in infrastructure and keep up with regulatory changes. As a result, many smaller companies are being gobbled up by the larger ones, such as Epcor Water USA Inc. and Global Water Resources Inc.
The reason there is no competition is every one of the 321 companies operating here has been issued a Certificate of Convenience and Necessity, giving each of them a monopoly to provide water and wastewater treatment within a particular geographical area. They are regulated by the Arizona Corporation Commission.
