Johnson Utilities capital improvement plan approved by corporation commission

The Arizona Corporation Commission on July 18 ordered EPCOR Water Arizona Inc., while acting as interim manager of Johnson Utilities LLC, to commence work on 70 projects identified in a three-year capital improvement plan.

The plan, as proposed by EPCOR, anticipates 22 wastewater projects totaling $67,760,000 and 48 water projects totaling $61,720,000 for an overall 2019-22 capital improvement project total of $129,480,000, according to a release from the ACC.

Johnson Utilities provides water and wastewater service to the public in portions of Pinal County, including San Tan Valley.

“Last summer, commissioners found the utility company to be in violation of its duty to provide service and equipment that is in all respects just, reasonable, safe, proper, adequate and sufficient. Commissioners then directed corporation commission staff to install an interim manager to assume operation of Johnson Utilities,” according to the release.

On Aug. 14, 2018, corporation commission staff entered into an agreement with EPCOR Water Arizona Inc. for interim management services.

As part of the interim manager agreement, the interim manager consented to submit a proposal to the commission to include a description of any additional work needed within the utility company’s systems. On June 19, EPCOR submitted a copy of a proposed three-year capital improvement plan to address supply, capacity and compliance issues in the Johnson Utilities service area, according to the release.

“The commission found it was in the public interest to direct Johnson Utilities to fund the capital improvements identified in the three-year capital improvement plan. It was noted during Thursday’s meeting that project costs and descriptions will be refined as planning and design work continues,” the release states.

All documents, including amendments and the three-year capital improvement plan may be found in the Corporation Commission’s online docket at edocket.azcc.gov and entering docket number WS-02987A-18-0050.   A broadcast of the commissioner’s July 18 open meeting is at azcc.gov/live.

The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The five commissioners elected to the corporation commission oversee executive, legislative and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone and natural gas resources as well as the regulation of securities, pipeline and railroad safety. Go to visit azcc.gov.

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