With a lot of different options floating around from a complete moratorium on building, to limited permits per month, to interconnecting with the neighboring town of Queen Creek, a decision came down on Wednesday.

The decision that was voted on allows for  28 connections per month for a time period of at least 6 months. There are exceptions that will bring the total connections hire than 28, but that will still be far lower than the numbers that was floated around by the developers at the previous Arizona Corporation Commission meeting which was around 150 connections.

Additional Utility Items

Johnson Utilities has filed an objection to the Second Revised Proposed Order docketed by Utilities Division Staff on November 6th, 2018, and requests an evidentiary hearing on the Johnson Utilities System Evaluation Report docketed by Staff on October 10, 2018.

On October 5, 2018, EPCOR Arizona Water, Inc. (“EPCOR”) submitted to the Arizona Corporation Commission a document entitled Johnson Utilities System Evaluation Report. 

Johnson Utilities disagrees with many of the generalized conclusions contained in the Report. Johnson Utilities claims the “Report is factually inaccurate in important regards.”

The Utility continues “Moreover, the Report fails to acknowledge or address significant and ongoing work that has been undertaken by Johnson Utilities as described in the George H. Johnson and Jana S. Johnson Revocable Trust’s Notice of Filing of Additional Comments to EPCOR’s Report filed November 5, 2018, which is incorporated herein by this reference. Without a hearing on the

Report, Johnson Utilities is deprived of a meaningful opportunity to be heard in order to provide evidence to rebut the Report, a violation of the Company’s rights to procedural and substantive due process! Further, developers who are interveners in this docket are likewise being deprived of procedural and substantive due process.”

Furthermore, the Utility claims, “Adoption of the Second Revised Proposed Order will cause lasting harm to Johnson Utilities and will bring about a substantial diminution in the value of the Company. Additionally, the failure of the Report to acknowledge and incorporate work that has already been undertaken by Johnson Utilities to address water supply and wastewater treatment capacity will ultimately result in higher costs to the Company’s customers. For these reasons, Johnson Utilities requests that the Commission reject the Second Revised Proposed Order and proceed expeditiously with a hearing on the Report so that the essential facts can be ascertained.

Itemized statements of the expenses of Ultra Management, L.L.C.

Johnson Utilities has responded to the ACC’s request to provide an itemized list of Ultra Management’s expenses, “At the October 11, 2018 Open Meeting, you asked Johnson Utilities, L.L.C. (“Johnson Utilities” or the “Company”) to provide itemized statements of the expenses of Ultra Management, L.L.C. (“Ultra”) and Hunt Mgt., L.L.C. (“Hunt”) from September 1, 2018, and to file those itemized statements in the docket. As you know, I represent Johnson Utilities and not Ultra or Hunt, which are separate and distinct legal entities with different ownership from Johnson Utilities. Thus, the documentation provided with this letter is documentation received by Johnson Utilities from Ultra or documentation which Hunt provided to EPCOR Water Arizona Inc. (“EPCOR”) as interim manager of Johnson Utilities. I also want to point out that a substantial portion of the expenses of Johnson Utilities are paid directly by Johnson Utilities. These include such items as pipe, meters, chemicals, etc.”

We will provide an update when the ACC responds to the ongoing effort to receive the actual expenses from Ultra.

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