San Tan Valley Area Information

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Epcor/Johnson Utilities Update at ACC Meeting Feb 4, 2020

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During an update from Johnson Utilities, LLC, the company's Interim Manager, EPCOR, informed the Arizona Corporation Commission that the design of a third vessel for the Ion Exchange has begun. This vessel that will increase production by 500 gallons per minute at the Main Yard facility. The vessel is expected to be in operation by April of this year.

Promenade Well two is under construction. This well is capable of producing 2.6 million gallons per day into the distribution system. The Promenade Well has very low nitrate concentrations and this well will add additional production and redundancy to the water system. Completion of this project is expected in late spring of this year.

The Pecan Effluent Filter project phase one has been completed. This added eight filters to the existing five filter set. Phase two will take the total filter count to 16 and will be completed by spring of 2020. This upgrade will produce cleaner effluent and adds redundancy to the process.

The Pecan expansion project is also underway. Design of the facility to take the production from 3.0 million gallons per day to 4.0 million gallons per day to keep up with demand is in process. The project is expected to take about 18 months to complete and will improve the process and address the undersized influent pump station, effluent pump station and other components of the facility.

Odor alleviation efforts include sealing up headworks, regulating water levels, chemical addition to wetlands, increasing contact time with aerators, removing old sludge from deep settling zones and increasing the ecosorb misting system. These projects are all complete and EPCOR reported that they are seeing improvements from them. A significant reduction in odors has been observed through H2S loggers located around the community surrounding the facility. There has not been an exceedance (>.03) in over 11 weeks.

As of February 3, $8.5 million was on hand. EPCOR stated in previous Open Meetings that Johnson was anticipating upcoming cash flow challenges.

Johnson Utilities is developing a finance plan to assure funding for the company's Capital Improvement Plan approved in Decision No. #77330. Ongoing refinements to this plan continue to be evaluated. EPCOR as the company's interim manager is also preparing for its rate case with an August 31, 2019 test year to be filed by February 14, 2020.

All documents related to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number WS-02987A-18-0050 and WS-02987A-15-0284.
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