EPCOR, Johnson Utilities Update

(Disclosure: Rose Law Group represents landowners and homebuilders working with the ACC to find a utility solution in the Johnson Utilities service area.)

By San Tan Valley News

During an update from Johnson Utilities, LLC, the company’s Interim Manager, EPCOR, informed the Arizona Corporation Commission that funding the capital improvement plan in Decision No. 77330 is a serious concern and remains an issue preventing EPCOR from starting some capital projects. Pecan Phase IV Expansion & IPS Headworks projects cannot commence construction until Johnson Utilities ownership secures financing consistent with Decision No. 77641 as amended by Decision No. 77674 or unless the proposed acquisition of Johnson Utilities by EPCOR is approved.

The Pecan plant is approaching its treatment capacity and it will take approximately 12 months to complete the expansion construction. There are not enough funds available from operations or from hook-up fees to complete this project. Ongoing issues and concerns implicated in the ACC vs. Johnson Utilities lawsuit cited above include the ordering paragraph in Decision No. 76785 to indemnify and hold harmless the interim manager, further legal action against EPCOR, and payment of attorneys’ fees by Johnson Utilities (utility operations).