San Tan Valley Area Information

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ACC Staff Looking to Pull Johnson's CC&N

ACC Staff Looking in to Pulling Johnson's CC&N

During the August 14, 2018, Open Meeting, the Commission directed Staff to evaluate revoking Johnson's CC&N with a report due within 30 days.

Staff is recommending a separate docket be created to evaluate whether it is in the public interest for Johnson Utilities, LLC to continue to hold is CC&N. It is being recommended that a hearing be held, where evidence can be presented by the parties, addressing whether any of the following is appropriate:

  1. A complete revocation of Johnson's CC&N
  2. Deletion from the CC&N those areas that have no customers, no existing infrastructure, and where there have been no requests for service, and
  3. Deletion of those areas from the CC&N that have no customers, but where there have been requests for service, allowing those areas of the CC&N to be served by another party willing and able to serve whom a request for service has been made.

Staff also recommends that the Commission direct Staff to initiate a docket to evaluate whether it is in the public interest for Southwest Environmental Utilities LLC to continue to hold its CC&N.

[READ MORE: WHAT HAPPENS IF JOHNSON'S CC&N IS REVOKED?]

Any party who wishes to comment on this matter may appear before the Commission at its Open Meeting scheduled for September 11, 2018 at 10:00 a.m. or may file written comments to the docket.  

This matter may be scheduled for Commission deliberation at its Open Meeting scheduled September 11, 2018 at 10:00 a.m. and September 12, 2018 at 10:00 a.m. located at 1200 W. Washington Street. Phoenix, AZ 85007.

NOTE: A CC&N is  a Certificate of Convenience and Necessity. In Arizona, utilities are granted a CC&N by the ACC in order to provide service in a certain area/territory as a monopoly.  That CC&N prevents another entity from providing service or having competition in that area, as utilities run as monopolies in the state. The Arizona Constitution established the Arizona Corporation Commission as the entity who regulates those utilities. The CC&N has nothing to do with who owns a utility or the infrastructure, etc, it simply allows for an entity to provide the service in an area without competition.  If a CC&N is revoked or not extended, that utility is still required to provide the service to its existing customers, is still a public service corporation and is still regulated by the ACC. Aall assets, including the company itself, the infrastructure, right of way, etc remain the property of the utility. What changes however, is that the company loses the "monopoly right" allowing for an additional company to come in to the existing territory, install their own infrastructure and offer an additional choice.  

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