CAGRD Fees Going Down for San Tan Valley Residents - SanTanValley.com

CAGRD Fees Going Down for San Tan Valley Residents

CAGRD Fees Going Down for San Tan Valley Residents

During the March 12-13, 2019 Arizona Corporation Commission Open Meeting, a request to adjust the CAGRD fees charged to Johnson Utilities L.L.C. customers was on the consent agenda.

The CAGRD was established by the Arizona legislature to serve as a groundwater replenishment entity for its members, and it provides a mechanism for designated water supply providers such as Johnson Utilities to demonstrate a 100-year water supply. Members pay the CAGRD to replenish groundwater pumped by the member that exceeds the specified pumping limits. The CAGRD is recognized as an important tool in Arizona's groundwater conservation efforts.

The proposed decrease for the Phoenix AMA (San Tan Valley) from the current rate of $2.35 per 1000 gallons (kgal) to the proposed rate of $1.85 per kgal is a decrease of $0.50 per legal or 21.3 percent.

Arizona Corporation Commission Staff agreed that the Company had duly filed the appropriate request to revise the CAGRD fee, as required by Decision No. 73284 and recommended approval of the CAGRD adjustor fees as requested.  

[READ STAFF'S RECOMMENDATION HERE]

The Arizona Corporation Commission approved the request March 13, 2019.

A notice should be sent to all customers for the new CAGRD adjustor fee in the first bill in which the new fee appears.

During the same Open Meeting, Epcor, as the interim manager of Johnson Utilities provided an update to the Commission.  During their update, Epcor stated that the estimated $103M needed to improve/upgrade the system over the next 2-3 years, for current & future customer services, could be covered by current cash & operating revenues and no customer rate increase would be necessary.

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