Concern over debt agreement raised as hearing begins on sale of Johnson Utilities
by Suzanne Adams-Ockrassa | Florence Reminder & Blade Tribune
The biggest concern raised during opening statements in a hearing Wednesday on the possible sale of Johnson Utilities to EPCOR Water was an agreement to defer about $45 million in debt related to the sale and allow the new owners to recoup those debt costs through future rate cases.
Johnson Utilities serves a large area of Pinal County that includes San Tan Valley, Florence and Queen Creek. The utility has been in financial trouble for several years and allegations of the misuse of funds and mismanagement of the company have been made against the family that owned and operated the utility for many years. EPCOR was named as an interim manager for the business about two years ago.
EPCOR announced its intention to purchase the utility in October. In order for the sale to go through, it must be approved by the Arizona Corporation Commission.
