Judge Finds Johnson Utilities Needs Interim Manager

An Administrative Law judge has issued a Recommended Opinion and Order in the case of Johnson Utilities. The judge found that the Arizona Corporation Commission “has the legal authority and legal justification to appoint an interim manager” for Johnson Utilities.

The judge found in the Recommended Opinion and Order (ROO) that the Commission should appoint an interim manager to protect Johnson Utility “ratepayers and the public interest.”

Johnson Utilities has 10 days to review the ROO. The company must respond by July 23. The ROO will then be placed on the the Arizona Corporation Commission agenda to be consider for approval by the commissioners.

The ROO reads in part:

It is therefore ordered that Staff shall immediately commence efforts to obtain an agreement with an Interim Manager who shall assume operation of Johnson Utilities, LLC as soon as possible on an interim basis pending further order of the Commission in this docket.

It is further ordered that Johnson Utilities LLC shall cooperate fully with the Interim Manager and shall supply all necessary documents, records and other information requested by the Interim Manager, whether the documents, records or other information are in the possession of Johnson Utilities, LLC personnel or the possession of Hunt Mgt, LLC, Ultra Management LLC or another related entity.

It is further ordered that Johnson Utilities LLC shall indemnify, defend and hold harmless the Interim Manager.

It is further ordered that the Interim Manager shall have full authortiy to conduct the business and affairs of Johnson Utilities LLC in all respects, except as authority is expressly reserved as a right of ownership under Arizona law.

It is further ordered that either Johnson Utilities LLC or the Interim Manager may at any time apply for the termination of the Interim Manager agreement upon a showing that the services of Johnson Utilities, LLC are in all respects just, reasonable, safe, proper, adequate and sufficient and that terminating the Interim Manager agreement would not present an unreasonable risk of service that is unjust, unreasonable, unsafe, improper, inadequate, and/or insufficient.

It is further ordered that this Decision shall become effective immediately.