On Tuesday, the Arizona Corporation Commission were provided an alarming glimpse into the issues facing Johnson Utilities. The commission voted unanimously to hold an emergency hearing to consider holding Johnson Utilities in contempt for violating commission orders.
Commissioners directed staff to determine whether Johnson Utilities, LLC should be held in contempt of a Commission order and instructing staff to investigate the revocation of the utility’s ability to operate in San Tan Valley.
Johnson Utilities, LLC provides water and wastewater utility services in portions of Maricopa and Pinal Counties. The company services more than 25,600 service connections and 35,000 sewer laterals.
The selected Interim Manager, EPCOR, outlined the work that has transpired over the last two weeks since it signed a consulting agreement.
EPCOR representatives presented information found during site visits to four wastewater treatment plants and 11 lift stations belonging to Johnson Utilities. Pictures from these site visits showed corroded equipment and hazardous worksites.
EPCOR also revealed it has not been granted access to Johnson Utilities’ financial information and stated it was unable to act as an interim manager without access to financials and all facilities.
Commissioners directed Johnson Utilities is to open its books and provide immediate access to the Interim Manager so it can begin the process of restoring clean and safe water and wastewater operations for the customers.
EPCOR representative Shawn Bradford told the commissioners that nitrate levels in drinking water were on the “knife’s edge” of what is legally acceptable. The legal limit is 10 milligrams per liter, while EPCOR had found Johnson’s to be above 9.9.
Commissioners also discussed and voted on Judge Jane Rodda’s order addressing recent water outages in the Johnson Utilities’ service area.
The judge outlined the issues in a Recommended Opinion and Order stating a high volume of low water pressure customer complaints were submitted to the Arizona Department of Environmental Quality and the Corporation Commission between May 17 and June 4, 2018. During this time, the company’s Hardison Well pump motor failed taking the well offline for approximately 70-hours. The utility provider told the Corporation Commission it worked to counter the effects of a broken pump by turning off irrigation meters in common areas, stopping all construction water, and posting the motor/low water pressure advisory on its website.
The judge’s order acknowledged the “totality of evidence” did not outweigh the need for the Commission to continue with the appointment of an interim manager “until the Commission can be assured that Johnson’s management is willing and capable of operating the Company in a manner that is just, reasonable, safe, proper, adequate, and sufficient.”
Commissioners agreed with the judge’s decision voting to approve the Recommended Opinion and Order and added the amendment to fine Johnson Utilities $600,000. The penalty comes from an amendment to order Johnson Utilities to pay $5,000 per offense arising from 120 separate offenses of disconnecting irrigation and construction meters.
Find all documents related to the judge’s order and Commission investigation of Johnson Utilities, LLC water outages in the Corporation Commission’s online docket at http://edocket.azcc.gov by searching for docket number WS-02987A-18-0151.