Johnson Utilities Ordered to Provide Access to Epcor or Go to Jail - SanTanValley.com

Johnson Utilities Ordered to Provide Access to Epcor or Go to Jail

Johnson Utilities Ordered to Provide Access to Epcor or Go to Jail

Following an August 23, 2018 hearing, Pinal County Superior Court Judge Stephen McCarville has ordered Johnson Utilities to:

 

  • provide EPCOR with full and exclusive access to and control over all revenues paid by customers and associated list of financial institutions by August 30, 2pm
  • allow EPCOR, AZCC appointed interim manager, exclusive access to facilities, records, accounts, and materials owned by Johnson Utilities

Here is an excerpt from the decision:

It has now been over one month since the Decision was adopted by the Arizona Corporation Commission on July 24, 2018. Then as now, Johnson's operations of its water company are not safe, reliable or adequate. Johnson lacks the ability to financially manager the utility. And yet, the Decisions' mandate to appoint an interim manager immediately, has not been fulfilled. The Court therefore finds that irreparable injury will occur if the request is denied.

Now therefore it is is hereby ordered that the Request for Preliminary Injuction/Temporary Restraining Order is GRANTED.

It is further ordered that Johnson Utilities shall provide EPCOR with full and exclusive access to and control over all revenues paid by customers of Johnson for utility servive, or by third parties as contributions paid into a financial institution account controlled by Johnson or a Johnson Affiliate (including but not limited to Hunt Mgt LLC and Ultra Management LLC) no later than August 30, 2018 by 2:00 p.m. Should any employee, agent, officer or prinicipal of Johnson Utilities attempt to prevent EPCOR with access, they shall be subject to arrest for interreference with a judicial proceeding.

It is further ordered that Johnson Utilities shall provide EPCOR with a complete list of financial institutions, including accounnt numbers and branches, in which any revenues paid by customers of Johnson for utility service, or by third parties as contributions or advances in aid of construction or otherwise, whether such revenues were or are currently paid into a financial institution account controlled by Johnson or a Johnson affiliate (including but not limited to Hunt Mgt LLC and Ultra Management LLC) were deposited for the last 3 years, no later than Thursday Aug 30, 2018 by 2:00 p.m. Should any employee, agent, officer or prinicipal of Johnson Utilities attempt to prevent EPCOR with access, they shall be subject to arrest for interreference with a judicial proceeding.

It is further ordered that Johnson Utilities shall allow EPCOR exclusive access to any facilities, records, accounts and materials owned by Johnson Utilities that EPCOR determines, in its sole discretion, it needs access in order to successfully operate Johnson Utilities and abide by the mandates of ACC Decision 76785, no later than Thursday Aug 30, 2018. Should any employee, agent, officer or prinicipal of Johnson Utilities attempt to prevent EPCOR with access, they shall be subject to arrest for interreference with a judicial proceeding.

It is further orderd that Johnson Utilities shall allow EPCOR, as interim manager, to perform a comprehensive assessment of the existing Johnson Infrastructure, including its water supply and wastewater treatment capacity, to allow EPCOR to make a recommendation to the ACC Staff for approval as to whether, and how many, new service connections can be added. Said comprehensive assessment shall begin on Thursday, Aug 30, 2018.  

View a full copy of today’s decision from the Pinal County Superior Court here: http://bit.ly/2PNDUjA 

NOTE: The preliminary injunction that was granted is appealable in Appellate court (Tucson) and Johnson Utilities has filed for a rehearing (appealing) of the ACC decision regarding appointing an IM which will be heard in Maricopa County Superior Court. 

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