San Tan Valley Area Information

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ACC Approves Request to Reduce Johnson Utilities CAGRD Fees

The Central Arizona Groundwater Replenishment District (“CAGRD”) was established in 1993 by the State legislature to replenish groundwater used by its members. The CAGRD provides a method for property owners and water providers to demonstrate a 100-year assured water supply under Arizona law by agreeing to have the CAGRD recharge amounts of groundwater used that are over the limits established by the State’s assured water supply rules – referred to as “excess groundwater”.

CAGRD’s replenishment activities are funded solely by its members through fees and assessments paid by developers, homebuilders, property owners and water utilities. CAGRD provides replenishment services within three AMA’s that include the majority of land within Maricopa, Pinal and Pima Counties.

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Johnson Utilities is a member service area of CAGRD, which has allowed Johnson Utilities to obtain a Designation of Assured Water Supply from the Arizona Department of Water Resources. As a result of this Designation, developers and homebuilders that construct new subdivisions within Johnson Utilities’ service area are automatically deemed to have proven a 100-year assured water supply. Absent CAGRD membership, these subdivisions would not have been constructed.

As a member of the CAGRD, Johnson Utilities is required to pay CAGRD an annual replenishment tax based on the amount of excess groundwater that it pumps from within its service area. Johnson Utilities previously obtained approval from the Arizona Corporation Commission to use an adjustor mechanism to recover the cost of CAGRD annual replenishment taxes from its customers. Each year, the Arizona Corporation Commission approves a CAGRD Adjustor Fee that Johnson Utilities may charge its customers. The CAGRD Adjustor Fee is based on the amount of water customers have used in the preceding month multiplied by the CAGRD adjustor rate approved by the Arizona Corporation Commission.

All of Johnson Utilities’ customers reside in Pinal County in either one of two AMA’s. The AMA’s don’t necessarily follow county lines. Those customers of Johnson Utilities who reside in the Anthem at Merrill Ranch area of Florence are located within the Pinal AMA, and the remaining customers of Johnson Utilities reside within the Phoenix AMA.

  • As a result of the Arizona Corporation Commission’s approval, the CAGRD Adjustor Fee in the Phoenix AMA was reduced from $4.19/1,000 gallons to $2.35/1,000 gallons. This represents a 43.91% decrease in these fees or $1.84/1,000 gallons.
  • As a result of the Arizona Corporation Commission’s approval, the CAGRD Adjustor Fee in the Pinal AMA was reduced from $2.43/1,000 gallons to $1.91/1,000 gallons. This represents a 21.40% decrease in these fees or $0.52/1,000 gallons.

These reduced rates are effective for water use billed on and after January 1, 2018 and will appear on your next water bill.

NOTE: If you do not see a reduction in the CAGRD fees on your bill, please contact Johnson Utilities at 480-987-9870.  If the issue is not resolved, file a complaint with the Arizona Corporation Commission under Docket #: WS-02987A-18-0050 here.

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