Arizona To Take Control Of Flailing Utility
By Sara Jerome,
@sarmje
Arizona’s utility regulator voted to seize control of Johnson Utilities this week.
“The Arizona Corporation Commission has voted to appoint an interim manager to temporarily run embattled water company Johnson Utilities,” KJZZ reported.
“At a special meeting Tuesday morning, commissioners heard from staff members who recommended the move. It comes after an extensive hearing into problems with Johnson’s services, including low water pressure, unannounced outages and a 65,000-gallon sewage spill,” the report continued.
The decision comes “after years of overflowing sewers, noxious fumes and other problems,” Arizona Central reported.
Bert Acken, an attorney representing towns near the service area, voiced support for the takeover.
"What we see is a consistent pattern of ignoring regulatory requirements, getting caught, promising to do better and then failing to fix the problems," he said.
The events follow a decision by a judge recommending that the Arizona Corporation Commission “seize control of Johnson Utilities away from the current management, at least temporarily, and install its own manager,” The East Valley Tribune reported.
Sarah Harpring, the judge, stated that the company has not sufficiently invested in repairs and infrastructure, the report said. The problems date back over a decade.
“Harpring reviewed mountains of evidence in the case and issued a 326-page recommendation Thursday that concluded regulators are justified and authorized to appoint their own manager,” Arizona Central reported.
Harpring wrote: "(Johnson Utilities) has failed to provide service and equipment that is in all respects just, reasonable, safe, proper, adequate and sufficient.”
Queen Creek Fire Chief Vance Gray testified that water issue has caused "an immediate danger to the health and safety" of locals by impeding firefighting, Arizona Central reported.
George Johnson of Johnson Utilities faces an unrelated criminal proceeding.
The case is considering whether “Johnson is guilty of conspiracy and bribery. He and former utility regulator Gary Pierce, Pierce's wife Sherry, and lobbyist Jim Norton are on trial in federal court,” Arizona Central reported.