• Arizona
  • Thursday , Feb 1 , 2018

Area Info

San Tan Valley Area Information

2 minutes reading time (359 words)

Johnson Utilities, ACC December Update

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During an update from Johnson Utilities, LLC, the company's Interim Manager, EPCOR, informed the Arizona Corporation Commission that funding the capital improvement plan in Decision No. 77330 is a serious concern and remains an issue preventing EPCOR from starting some capital projects. Pecan Phase IV Expansion & IPS Headworks projects cannot commence construction until Johnson Utilities ownership secures financing consistent with Decision No. 77641 as amended by Decision No. 77674 or unless the proposed acquisition of Johnson Utilities by EPCOR is approved.

The Pecan plant is approaching its treatment capacity and it will take approximately 12 months to complete the expansion construction. There are not enough funds available from operations or from hook-up fees to complete this project. Ongoing issues and concerns implicated in the ACC vs. Johnson Utilities lawsuit cited above include the ordering paragraph in Decision No. 76785 to indemnify and hold harmless the interim manager, further legal action against EPCOR, and payment of attorneys' fees by Johnson Utilities (utility operations).

The Section 11 Wastewater Treatment Plant continues to be out of compliance for water and air quality constituents. Many improvements have been made to the plant and the wetlands that have greatly improved noxious odor issues and have made incremental improvements on water quality compliance, but the plant is not capable of coming into compliance with the amount of flows currently going to the plant.

EPCOR maintains its position that the only sure way to come into compliance with all regulatory requirements is to build the Copper Basin plant and decommission the Section 11 plant.

A representative of the ownership of Johnson Utilities, L.L.C., informed the Commissioners that it has sought financing to fund capital projects pursuant to Decision Nos. 77641 and 77674but today has been unsuccessful in securing financing. The Commissioners requested that Johnson Utilities, L.L.C.'s ownership file something in this docket indicating all efforts taken to date by the Company to secure financing.

Outside legal fees for Johnson Utilities continue to accumulate. The available cash balance from operations is approximately $4.572 million.

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.
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