It seems almost elemental that a family's water service would be secure, but really the supply of water to some parts of Edgewood and the surrounding area — about 800 customers — hinges upon an agreement struck on Nov. 19 between Thunder Mountain and New Mexico American Water Co.

The agreement, which ends on Jan. 1, 2010, was arranged for by the New Mexico Public Regulation Commission and allows Thunder Mountain to buy water from NMAWC at $3 per thousand gallons.

Evan Jacobs of NMAWC and Ed Cardenas of Thunder Mountain both said they were satisfied with the arrangement, but that doesn't mean they'll be sending each other pictures of their families in green and red sweaters over the holidays. The two companies are still duking it out over a few other issues.

In fact, it was one of those disputes that made an agreement between the companies necessary — a dispute that also involves a PRC commissioner, David King, who is part-owner of another company, Estancia Basin Water Supply.

Estancia Basin has an agreement to buy 215 acre-feet per year from NMAWC. That water is then sold to Thunder Mountain. The problem is that almost all the water NMAWC owes Estancia Basin has already been pumped out, according to Jacobs.

"We would reach that limit and be forced to shut off before the end of the year," Jacobs said. "We didn't feel comfortable violating water rights."

It's up to the courts to decide part of that matter. NMAWC claims the contract began and ended on Jan. 1, but the contract between Estancia Basin and Thunder Mountain started on May 24.

Estancia Basin's lawyer, Ed Hollington, said that should be the date for the count for acre feet of water should begin, which would mean there is still more water for Thunder Mountain to purchase.

Estancia Basin has brought a lawsuit against NMAWC for breach of contract over that issue and a hike in fees for the water, which Hollington said are six times previous costs.

Jacobs said his company is allowed to charge for its operating costs, but Estancia Basin claims that it is part of an effort to skirt the agreement and included charges of intentional interference with contractual relations in its lawsuit.

Meanwhile, Jacobs pointed out that these issues, and the amount of water Thunder Mountain is purchasing, indicate that something is going on with Thunder Mountain's water supply.

"They've never been in a situation where they've used all this water before," Jacobs said. "We don't want our, or other, customers to be out of water."

Cardenas called the situation, which involves more than just the lawsuit, a case of "David vs. Goliath." In his analogy, Cardenas' small, local company would be David.

"This is an effort to drive us out of business," he said.

There is water out there for Thunder Mountain to tap into, he said, but NMAWC is attempting to block the company from getting the water. NMAWC objected when Thunder Mountain gave notice about its potential new source for water was sent out, he said.

If and when the new source of water is obtained, his company will have the resources to serve its existing and future customers, he said. The temporary agreement to purchase water from NMAWC buys his company time to get that water, he said.

More water should be available for the company to purchase from NMAWC's supplies at the beginning of the new year.

"We're hoping to sort this out next year," he said.

Other issues

Another dispute between the two companies is over territory. The PRC is looking into a case over which company should serve a master-planned 40 acre development south of Hill Ranch Road and east of N.M. 344. NMAWC and the developer, Tim Oden of Oden and Associates, are requesting that NMAWC serve the development, Hillcrest. It is currently in Thunder Mountain's service area.

That issue has spilled over, so to speak, into the town of Edgewood's business.

There has been some concern about supplying water for the playing fields Edgewood is in the process of building, according to interim town administrator Karen Mahalick. The fields are just west of Hillcrest.

Mahalick said the town attorney was given copies of the contracts and other documents that indicate there will be a legal source of water for the fields from Thunder Mountain. Those documents went to the attorney so that they wouldn't be subject to requests under the state Inspection of Public Records Act and so that Mahalick couldn't be called upon to testify in court, she said.

The town is also involved in a rate case before the PRC in which NMAWC has proposed to increase its water charges to customers by 60 percent.

The increase, if approved in its entirety, would increase the average customer's water bill from $37 to almost $60, or about 80 cents per day, according to Jacobs. The money from the rate increase will be used to pay for extensive infrastructure improvements, Jacobs said.

The town has intervened in the rate case and committed $11,000 to pay an attorney and an economist to look into the proposed rates. Mahalick, Mayor Robert Stearley, councilors Brad Hill and Rita-Loy Simmons met with the PRC staff this week to discuss the matter.

"We're hoping citizens don't get hit with a 60 percent increase," Mahalick said.