The Stage 2 drought plan will primarily affect heavy water users in Phoenix, Arizona. Approximately 16% of residential, 7% of commercial, and 1% of industrial customers are expected to incur surcharges if they exceed their monthly water thresholds. The financial impact could amount to $40 million in surcharge revenue over one year, which will be directed toward conservation programs and securing additional water supplies. The broader risk stems from reduced Colorado River water deliveries, which could strain resources for the entire Lower Basin region.