San Tan Valley Area Information

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Johnson Utilities Update from Epcor

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During an update from Johnson Utilities, LLC, the company's Interim Manager, EPCOR, informed the Arizona Corporation Commission that the company's cash on hand is building up, as of January 10, a little over $11 million was on hand, an increase of almost $1.5 million from last month when EPCOR stated that Johnson was anticipating upcoming cash flow challenges.

A new well in the Promenade 2 region is being drilled. This well can produce 1,800 gallons of water per minute. EPCOR reports that the water in this well does not require treatment. Completion of this project is expected in late spring of 2020.

The Section 11 Aeration Basin 2 is filled and operational. A significant reduction in odors has been observed through hydrogen sulfide loggers located around the community and no odors have been reported in nine weeks.

Customer satisfaction surveys have been conducted regarding Johnson's level of care. Results show significant improvements in customer satisfaction. As of December 2019, 70 percent of customers reported satisfaction with the level of service being received, which is a 16 percent increase since December 2018. EPCOR will continue to analyze customer responses on a monthly basis.

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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