Johnson Utilities Faces Contempt Charge At Arizona Corporation Commission Hearing

By Jimmy Jenkins
Published: Monday, August 27, 2018 - 10:48am

The Arizona Corporation Commission is holding hearings to determine whether Johnson Utilities should be held in contempt for disobeying an order to work with an interim manager. The commission ordered EPCOR to run Johnson Utilities after the company faced serious complaints over service.

EPCOR executives testified on Friday they were given access to the physical components of Johnson Utilities but not the full financials.

An EPCOR vice president said exclusive control of the company’s accounts was necessary to continue to provide services to Johnson customers while acting as the interim manager.

Johnson attorney Jeffrey Crockett argued the language in the order was open to interpretation. “It states 'it is further ordered that the interim manager shall have full authority to conduct the business and affairs of Johnson Utilities in all respects except as authority is expressly reserved as a right of ownership under Arizona law,'” Crockett said reading from the order.

Crockett said Johnson is complying with the interim manager’s requests. But EPCOR Vice President Shawn Bradford told the commission the company does not have access to Johnson’s financial accounts.

“I”ve used the term — the 'checkbook' — they wouldn’t provide us access to that," Bradford said. "And without that, EPCOR believes we can not successfully run the utility.”

The hearing will continue Monday. If it is found that Johnson violated the order, an administrative law judge could hold the company in contempt.

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