EPCOR USA finishes acquisition of Johnson Utilities

EPCOR Water Arizona Inc., a subsidiary of EPCOR USA Inc., acquired the assets and operations of troubled Johnson Utilities.

This move makes EPCOR USA the water and wastewater service provider for areas that include Queen Creek, San Tan Valley and Florence.

Regulatory approval for the transfer of ownership was received from the Arizona Corporation Commission on Dec. 22. The financial transaction and transfer of ownership from Johnson Utilities to EPCOR was completed Jan. 29.

The sale comes just days after the state settled water and wastewater violations with Johnson Utilities, the most cited private utility by the Arizona Department of Environmental Quality since 2017. 

The agreements were announced Jan. 26, by officials from the ACC and ADEQ. The settlements are expected to bring relief to about 62,000 water and 40,000 wastewater customers in the Florence, Queen Creek and San Tan Valley area and more than $40 million in ratepayer benefits.

Recognizing the potential of the San Tan Valley, George Johnson founded Johnson Utilities in 1997.

Now known as the San Tan water and wastewater districts, EPCOR's newest service areas are just southeast of the greater metropolitan Phoenix area.

The 160-square-mile service area serves approximately 29,450 water and 40,160 wastewater customers in the communities of Florence, Queen Creek and unincorporated San Tan Valley in Pinal County.

"We look forward to being an active community partner and bringing the kind of investment that is essential for job opportunities and the region's strong long-term economic outlook," said Joe Gysel, president of EPCOR USA.  

The ACC appointed EPCOR as interim manager of Johnson Utilities in August 2018, and the company has worked to enhance service and reliability, address public health issues and improve customer satisfaction. More than $138 million in infrastructure improvements are still necessary during the next three years, including the construction of a new treatment facility and the expansion of another.

"This is the beginning of a new chapter. We are fully committed to bringing these customers safe, reliable service that is consistent with customer expectations, our brand and company values and we're eager to get started," Mr. Gysel said.