An Update On Recent Progress Regarding The Water Utility

By Arizona Corporation Commission

During an update from Johnson Utilities, LLC Interim Manager, EPCOR informed the Arizona Corporation Commission that water pressure has improved throughout community and that any problematic areas experiencing pressure issues are to be improved by Spring 2020. Hydrogen sulfide odors in the air have greatly improved due to the installation of an automated odor treatment system and the rehabilitation of existing carbon systems. When levels of hydrogen sulfide are above .03 mg/L, the air is automatically treated, but when levels are below .03 mg/L, the system shuts off to minimize costs.

EPCOR stated they are starting to face cash flow challenges as they expect to be cash flow negative by the end of March 2020. To combat this issue, EPCOR proposed raising Hook-Up-Fees (HUF) for new water and wastewater service connections.

Johnson Utilities is developing a finance plan to support the Capital Improvement Plan approved in Decision No. #77330. The company is also preparing for its rate case with an August 31, 2019 test year to be filed by December 31, 2019.

All documents related to this agenda item can be found in the Corporation Commission’s online docket at:

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