2024-10-11 - PC 1023 -LIBERTY-UTILITIS-FRANCHISE-APPLICATION-PACKET-REV-9-2024.PDF
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Docusign Envelope ID: C399B6EE-1 1AB-404A-A58E-3C016774F028 Cover Sheet 1. Signed Application 2. Litchfield Park Map 3. Exhibit A-Arroyo & Savannah Attachment #1- Savannah Legal Description Attachment #2- Arroyo Legal Description Attachment #3- Approved Wastewater CC&N 4. Exhibit B-Villas At Litchfield Park Attachment #1- Legal Description Attachment #2- Approved Water & Wastewater CC&N 5. Exhibit C- The Base Industrial Attachment #1-Legal Description Attachment #2- Approved Wastewater CC&N 6. Beardsley Map 7. Exhibit D- Various Beardsley Service Areas Attachment #1- Beardsley Legal Description Attachment #2- Approved Water CC&N for Section 26,27,29,33(TOS5N, RO3W) Attachment #3- Approved Water CC&N for Vida Del Sol Estates Attachment #4- Approved Water CC&N for Patton Place Unit 6 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F 028 BEFORE THE BOARD OF SUPERVISORS OF MARICOPA COUNTY, STATE OF ARIZONA In the matter of the Application APPLICATION FOR A PUBLIC SERVICE FRANCHISE of Liberty Utilities (Litchfield Park Water & Sewer) Corp. and Liberty Utilities (Beardsley Water) Corp. TO THE HONORABLE BOARD OF SUPERVISORS: The undersigned, a citizen or citizens, and a resident of, or a company doing business in Maricopa County, State of Arizona, hereby petitions your body for a Public Service Franchise to construct, maintain and operate: xX] A domestic water distribution system, consisting of pipe lines, meters, connections and all necessary equipment, O An irrigation water distribution system, consisting of pipe lines, ditches, gates and all necessary equipment, X] A sewage system, consisting of lines, connections, manholes and all necessary equipment, im Other — Cable TV, Gas, Telephone, etc. (Describe fully below) Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 l, Your petitioner has made application to the Arizona Corporation Commission for a Certificate of Public Convenience and Necessity to exercise the functions of a public utility to service to furnish the service described above to persons living within the area described above, subject to the laws of the State of Arizona. If granted franchise, the petitioner proposes to engage in and carry on in the business as described above and all other things necessary for performing this service to the public in the area. OR Your petitioner holds a license issued, and is regulated, by the Federal Communications Commission to furnish the service described above to persons living within the area described above. The petitioner proposes to engage in and carry on in the business as described above and all other things necessary for performing this service to the public in the area. IL. That your petitioner is financially able to undertake installation and performance of this service within the area for which this franchise is requested. Il. That by reason of the facts already stated herein, and because this service is not now available to persons now living, or who may live, within the said area hereinbefore described, and because of the further fact that services promptly supplied to waiting customers and prospective applicants will do much to develop and improve the area Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 described, your petitioner respectfully petitions your Honorable Board of Supervisors to grant this application for a right and franchise from the County of Maricopa, State of Arizona. Petitioner will construct, maintain and operate the aforementioned utility for a period to be determined at the heari after the franchised area or a portion thereof is annexed by a municipality, whichever is shorter, along upon, under and across public highways, roads, alleys, and thoroughfares (excepting State highways) within that portion of Maricopa County hereinbefore described. Also not within the confines of any incorporated city or town and under such restrictions and limitations and under such terms as this Board may provide, not inconsistent with law and order and the rules of the Arizo ng on this application, or for a period of one (1) year na Corporation Commission and that this Board take such proceedings herein as provided by the laws of the State of Arizona. DATED at Phoenix, Arizona, this 04 day of September 9994, ‘Signed by: Moses Thompson. BACSEANCBRISAEE. Signature of officer or authorized representative 9/4/2024 Name: Moses Thompson Address: Liberty Utilities 14920 W. Camelback Rd, Litchfield Park, AZ 85340 YZOZ/OE/S *8}80 ewiey uensus :hq payee) HAGd PLFIJYIIIT Bely PIIAIAS YAS PLFIJYIIIT syUuaWdO]JxaANG PddIIAIIAS Saiiil3n Aysaqiy L202-L98 (b¥8) 301440 NIV Ovese ZV ‘Muvd C1SISHOLN Qvou HOvETANYS M Oz6rL Ayeqr a ‘Avepunog a21niag di saMas BEM Aluo sae, ‘Avo James - (I Ud) YON aseg ou = Ree SC a, wih GET ane ANTE TTA VERA aS eaauaiaseserrmorameaiane> cieemun are Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 Exhibit A Includes all documents to support Liberty Utilities (Litchfield Park Water & Sewer) Corp. to serve the residents of (Savannah Development and Arroyo Mountain Estates): Attachments include: 1) Savannah Legal Description 2) Arroyo Legal Description 3) Savannah & Arroyo Mountain Estates CC&N ™ Docusign Envelope ID: C399B6EE-1 1AB-404A-A58E-3C016774F028 Attachment No.1 Legal Description for Savannah LOTS | THROUGH 319, INCLUSIVE, AND TRACTS A THROUGH 0, INCLUSIVE, OF SAVANNAH, ACCORDING TO THE PLAT OF RECORD IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 754 OF MAPS, PAGE 39, AS NO. 2005-0810388. A PARCEL OF LAND LYING IN THE WEST HALF OF SECTION 15, TOWNSHIP 2 NORTH, RANGE 2 WEST OF THE GILA AND SALT RIVER MERIDIAN, MARICOPA COUNTY, ARIZONA, MORE PARTICULARLY AS FOLLOWS: COMMENCING AT THE WEST QUARTER CORNER OF SAID SECTION 15, FROM WHICH THE SOUTHWEST CORNER OF SAID SECTION 15 BEARS SOUTH O DEGREES 13 MINUTES 05 SECONDS WEST, A DISTANCE OF 2637.32 FEE, SAID QUARTER CORNER BEING THE TRUE POINT OF BEGINNING: THENCE, NORTH O DEGREES 12 MINUTES 51 SECONDS EAST ALONG THE WEST LINE OF THE NORTHWEST QUARTER OF SAID SECTION 15, DISTANCE OF 1318.88 FEET; THENCE NORTH 89 DEGREES 54 MINUTES 22 SECONDS EAST, A DISTANCE OF 2625.99 FEET TO A POINT ON THE NORTH/SOUTH MID-SECTION LINE OF SAID SECTION 15; THENCE SOUTH O DEGREE 09 MINUTES 26 SECONDS WEST, ALONG SAID MID-SECTION LINE, A DISTANCE OF 2639.44 FEET; THENCE SOUTH 89 DEGREE 56 MINUTES 52 SECONDS WEST, A DISTANCE OF 2631.70 FEET TOA POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 15; THENCE NORTH O DEGREE 13 MINUTES 05 SECONDS EAST, A DISTANCE OF 1318.66 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 6,939,998 SQUARE FEET (159.32 ACRES) Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 Attachment No.2 Legal Description for Arroyo Mountain Estates (Formally Known as Jackrabbit Estates) LOCATED IN A PORTION OF THE SOUTHWEST QUARTER OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 2 WEST, EXCEPT THE NORTH 162 FEET AND EXCEPT 287 FEET, OF THE GILA AND SALT RIVER BASE AND MERIDIAN, MARICOPA COUNTY, AZ Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 Attachment 3 of Exhibit A ] BEFORE THE ARIZONA CORPORATION COMMISSION 2 | COMMISSIONERS 3 | LEA MARQUEZ PETERSON- CHAIRWOMAN SANDRA D. KENNEDY 4 | JUSTIN OLSON ANNA TOVAR 5 | JIM O'CONNOR 6 IN THE MATTER OF THE APPLICATION OF 7 | LIBERTY UTILITIES (LITCHFIELD PARK 8 9 OF CERTIFICATE OF CONVENIENCE AND NECESSITY TO PROVIDE WASTEWATER MOUNTAIN ESTATES DEVELOPMENT. WATER & SEWER) CORP. FOR AN EXTENSION UTILITY SERVICE TO INCLUDE THE ARROYO ECMO 0000206867 Arizona Corporation Commission DOCKETED MAY 27 2022 DOCKET NO. SW-01428A-21-0402 10 IN THE MATTER OF THE APPLICATION OF DOCKET NO, SW-01428A-21-0403 1 | LIBERTY UTILITIES (LITCHFIELD PARK WATER & SEWER) CORP. FOR AN EXTENSION 12 | OF CERTIFICATE OF CONVENIENCE AND NECESSITY TO PROVIDE WASTEWATER DECISION NO. 78565 13 | UTILITY SERVICE TO INCLUDE THE 14 SAVANNAH DEVELOPMENT. OPINION AND ORDER 15 DATE OF HEARING: April 11, 2022 16 PLACE OF HEARING: Phoenix, AZ 17 ADMINISTRATIVE LAW JUDGE: Charles H. Hains APPEARANCES: Ms. Kelly A. Daly and Ms. Paloma Diaz, SNELL 18 & WILMER L.L.P., and Ms. Judy Jenkins Hitchye, Director of Legal Services, Liberty 19 Utilities (Litchfield Park Water & Sewer) Corp. 20 on behalf of the Applicant; Mr. Jeffrey W. Crockett, CROCKETT LAW al GROUP, PLLC, on behalf of intervenors Arroyo Mountain Estates Homeowners Association and 22 Savannah Homeowners Association; and 23 Ms. Samantha Egan, Staff Attorney, Legal Division, on behalf of the Utilities Division of the 24 Arizona Corporation Commission 25 | BY THE COMMISSION: 26 Having considered the entire record herein and being fully advised in the premises, the Arizona 27 | Corporation Commission (“Commission”) finds, concludes, and orders that: 28 SACHains Water-SewenOrdersi\CC& N12 104 02etal - Liberty\2 10402ROO.docx 1 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 DOCKET NO. SW-01428A-21-0402 et al. FINDINGS OF FACT I. On December 20, 2021, Liberty Utilities (Litchfield Park Water & Sewer) Corp. (‘Liberty Utilities” or “Company”) filed an application with the Commission in Docket No. SW- 01428A-21-0402 for an extension of its Certificate of Convenience and Necessity (“CC&N”) to provide wastewater utility service to include the Arroyo Mountain Estates development (“Arroyo Docket”). 2. On the same date, Liberty Utilities filed an application with the Commission in Docket No. SW-01428A-21-0403 for an extension of its CC&N to provide wastewater utility service to include the Savannah development (“Savannah Docket”). 3. On January 4, 2022, the Company filed an amendment to its application in the Arroyo Docket. 4, On the same date, a Procedural Order regarding consent to email service was filed in the Arroyo and Savannah Dockets. 5. On January 7, 2022, Arroyo Mountain Estates Homeowners Association (‘Arroyo HOA”) filed an Application to Intervene in the Arroyo Docket. 6. On January 18, 2022, Liberty Utilities filed an amendment to its application in the Savannah Docket. 7. On the same date, Savannah Homeowners Association (“Savannah HOA”) filed an Application to Intervene in the Savannah Docket. 8. On January 19, 2022, the Commission’s Utilities Division (“Staff”) filed a Letter of Sufficiency in the Arroyo Docket and in the Savannah Docket stating that Staff had determined that minimum sufficiency requirements as outlined in applicable sections of the Arizona Administrative Code (“A.A.C.”) R14-2-602 (Wastewater Rules) have been met in the respective applications. 9. On January 25, 2022, by Procedural Order, Savannah HOA was granted intervention and a hearing was scheduled to commence on April 4, 2022, and other procedural deadlines were established in the Savannah Docket. 10. On January 27, 2022, by Procedural Order, Arroyo HOA was granted intervention and a hearing was scheduled to commence on April 6, 2022, and other procedural deadlines were Nw DECISION NO.__78565__ Docusign Envelope ID: C399B6EE-1 1AB-404A-A58E-3C016774F 028 > WwW wa im 12 13 14 16 17 18 19 20 22 23 24 25 26 28 DOCKET NO. SW-01428A-21-0402 et al. established in the Arroyo Docket. Il. On the same date, the Company filed an amendment to its application in the Arroyo Docket. 12. On January 28, 2022, Liberty Utilities filed Motion to Consolidate Proceedings in the Arroyo and Savannah Dockets on the basis that the applications are inextricably linked and the proposed extension areas will be served by common facilities. The Company also asserted that consolidation of the proceedings would produce administrative efficiencies. 13. On January 31, 2022, Arroyo HOA filed a Joinder in the Motion to Consolidate in the Arroyo Docket. 14. On the same date, Savannah HOA filed a Joinder in the Motion to Consolidate in the Savannah Docket. 15. On the same date, Liberty Utilities filed a second Motion to Consolidate Proceedings in both the Arroyo and Savannah Dockets providing the same bases as set out in the Company’s January 28, 2022, Motion to Consolidate Proceedings, with the additional representation that the Company had consulted with counsel for Staff and the Arroyo and Savannah HOAs, respectively, and that no party objects to the proposed consolidation. 16. On February 1, 2022, by Procedural Order, Docket Nos. SW-01428A-21-0402 and SW- 01428A-21-0403 were consolidated, a hearing was also set to commence on April 11, 2022, and other procedural deadlines were established. 17, On the same date, the Company filed an Amendment to the Applications. 18. On February 2, 2022, the Company filed an Amendment to the Arroyo Application. 19, On March 15, 2022, the Company filed a Notice of Filing Direct Testimony. 20. On March 18, 2022, Liberty Utilities filed a Notice of Filing Certification of Publication and Mailing indicating that on December 31, 2021, it mailed notice of the Applications to surrounding municipalities, that on February 16, 2022, it published the Public Notice of Hearing in the West Valley View News, and on February 24, 2022, mailed the Public Notice of Hearing to each real property owner in each of the Arroyo Mountain Estates and Savannah developments. 21. On March 28, 2022, Staff filed its Staff Report recommending approval of the 3 DECISION NO. 78565 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 nN yy Da A FS W DOCKET NO. SW-01428A-21-0402 et al. Applications with conditions, 22, On April 5, 2022, Liberty Utilities filed a Response to Staff Report. 23. On April 7, 2022, Staff filed a Notice of Filing List of Exhibits. 24, On the same date, Savannah HOA filed a Notice of Filing Witness Summaries. 25. On April 8, 2022, Staff filed a Notice of Filing Updated List of Exhibits. 26. On the same date, Liberty Utilities filed List of Exhibits. 27. On April 11, 2022, the hearing was held as scheduled. Liberty Utilities, the Savannah and Arroyo HOAs, and Staff were represented by counsel. No members of the public came forward to offer public comment concerning the Applications. 28. On the same date, Arroyo HOA and Savannah HOA filed HOA’s Notice to Residents of Hearing with attached copies of notices identified at hearing as Late Filed Exhibits Arroyo-1 and Savannah-1. Background 29. Liberty Utilities is a Class A public service corporation that provides water and wastewater service to portions of Maricopa County, Arizona. The Company has been authorized to provide wastewater service since it was first certificated in Decision No. 28661 (January 14, 1955). The Company’s service territory comprises approximately 20 square miles located roughly west of the Agua Fria River, between Luke Air Force Base and Interstate Highway 1-10. The Company currently serves approximately 19,849 wastewater customers. 30. The Company’s wastewater treatment system includes the Palm Valley Wastewater Reclamation Facility (“WRF”) which has an authorized treatment capacity of 6.55 Million Gallons per Day (“MGD”) and an available capacity of 5.1 MGD, The Palm Valley WRF produces A+ effluent that is discharged into the Liberty Aquifer Replenishment Facility, the Roosevelt Irrigation District, or reused under a valid water reclamation permit. Palm Valley WRF is also interconnected with City of Goodyear’s 157th Avenue Water Reclamation Facility in an arrangement that permits flows in either direction. 31. Liberty Utilities’ system also includes the Liberty Aquifer Replenishment Facility, and a treatment system comprised of pumps, influent screens, two vortex grit removal units, an influent 4 DECISION NO. __78565 Docusign Envelope ID: C399B6EE-1 1AB-404A-A58E-3C016774F028 DOCKET NO. SW-01428A-21-0402 et al. equalization basin, three sequential batch reactors (“SBR”), surge tanks, filter feed pumps, cloth media disc filters, effluent discharge pumps, three ultraviolet disinfection units, four sludge holding tanks, and two centrifuges for sludge dewatering. Two of the SBR basins will be adapted into a sludge holding tank and a surge tank. 32. The collection systems within the proposed extension areas are connected to the Company’s wastewater system via the existing Northwest Sewer Main (“NSM”). The NSM extends approximately 6.5 miles from the extension areas to the Sarival Lift Station and from there to the Palm Valley WRF. Arroyo HOA currently owns a 5.7-percent share in NSM’s capacity for approximately 52,480 Gallons Per Day (“GPD”) and Savannah HOA owns an approximate 5.2-percent share in the NSM's capacity for approximately 49,600 GPD. Upon approval of the requested extension requests, the Arroyo and Savannah HOAs’ ownership interests in the NSM’s capacity will transfer to Liberty Utilities. 33. All of the infrastructure to serve the extension areas has been previously constructed and is in use. There are no further facilities necessary for the Company to provide service to the extension areas. Liberty Utilities will pay the Arroyo and Savannah HOAs $300,000 each for their wastewater collection infrastructure and capacity shares in the NSM. 34. During the peak month of December in 2020, the Company reported receiving 149,827,000 gallons of flows at Palm Valley WRF. The peak daily flow was 5,169,000 gallons or approximately 260 GPD per customer connection. Because both proposed extension areas are fully built out and Liberty Utilities is already processing flows received from the Arroyo and Savannah HOAs, the addition of the proposed extension areas will not increase the received flows into the Company's wastewater system. Staff's analysis indicates that Liberty Utilities’ wastewater system has adequate capacity to serve existing customers and reasonable growth, 35. According to an Arizona Department of Environmental Quality (*ADEQ”) Compliance Status Report (“CSR”) dated December 1, 2021, Liberty Utilities’ Palm Valley WRF was compliant with the requirements of its Aquifer Protection Permit from the period between October 1, 2020, through September 30, 2021. However, an ADEQ CSR dated January 19, 2022, noted that the Palm Valley WRF is currently not in compliance with its Arizona Pollution Discharge Elimination System 5 DECISION No, __ 78565 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 & SY NY nun 10 i 16 17 18 19 20 21 22 23 24 25 26 27 28 DOCKET NO. SW-01428A-21-0402 et al. (“AZPDES”) permit due to discharge exceedances. ADEQ has issued a Notice of Opportunity to Correct the noncompliance. Staff recommends that the Company be ordered to file, as a compliance item in this docket, an updated ADEQ CSR indicating that Palm Valley WRF is in compliance within one year of the effective date of a Decision in this proceeding. 36. Staff reported that Liberty Utilities has no delinquent Commission-related compliance requirements. 37. The Company has an approved wastewater hook-up fee tariff on file with the Commission. Application : 38. The Applications were made in compliance with Decision No. 76799 (August 15, 2018), the Company’s 2017 rate case, which directed Liberty Utilities to pursue agreements for the extension of its service territory to include the Savannah and Arroyo Mountain Estates developments. Both developments are fully built out residential developments and consist of 319 and 339 homes, respectively. The proposed CC&N extension areas comprise approximately 140.83 acres located along the northern side of West Camelback Road, west of N. Perryville Road (Arroyo Mountain Estates) and 159.3 acres located along the eastern side of North Perryville Road, between Camelback Road and Bethany Home Road, both in Litchfield Park, Maricopa County, Arizona. 39. The wastewater collection systems for the developments are owned by Savannah HOA and Arroyo HOA, respectively, and Liberty Utilities accepts and treats the wastewater produced within the areas subject to Bulk Wastewater Treatment Agreements executed between the Company and each of the HOAs. Copies of the Agreements are attached to the corresponding applications. 40. Revenues derived from the Bulk Wastewater Treatment Agreements and third party contributed capital that funded the construction of wastewater treatment capacity had been erroneously classified as unregulated revenues through two prior rate cases before they were properly identified in Decision No. 76799. In addition to ordering a bill credit to customers to make them whole for the impacts of the years of unrecorded revenues derived from the Bulk Wastewater Treatment Agreements as well as carrying costs on over-collected revenues due to the previously unrecorded contributed 5 6 DECISION NO. 786 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 > Ww Nv wn DOCKET NO. SW-01428A-21-0402 et al. capital ', the Company was also ordered to pursue discussions with the Savannah and Arroyo HOAs to extend Liberty Utilities’ CC&N to include the two HOAs. 41. The applications to extend Liberty Utilities’ CC&N to include the Savannah and Arroyo Mountain Estates developments are the result of those efforts. Staff Recommendations 42. Staff recommends that the Commission approve Liberty Utilities’ Applications for extensions of its CC&N to include the Arroyo Mountain Estates and Savannah Developments subject to the following conditions: a. That the Company file, as a compliance item in this docket, a description of the total percentage/allotted capacity of the Northwest Sewer Main that is owned and/or operated by Litchfield Park, within six months of the effective date of Decision in this proceeding. b. Staff further recommends that the Company be required to file with Docket Control, as a compliance item in this docket, and within six months of the effective date of a Decision in this proceeding, a report documenting the percentage of ownership and the date acquired of the Northwest Sewer Main and will continue to docket any changes in percentage of ownership of the Northwest Sewer Main within sixty days of any changes. c. That the Company file, as a compliance item in this docket, an updated ADEQ Compliance Status Report indicating that the Palm Valley WRF is compliance, within one year of the effective date of a Decision in this proceeding. d. That the Commission approve the Company’s extension of its wastewater CC&N to include the Arroyo and Savannah HOAs currently being served in the Company’s service territory; and e. That Liberty Utilities be required to charge its existing rates and charges in the proposed extension area. ' Because contributed capital depresses the amount of rate base upon which a utility earns a return, the omission of the contributed capital resulted in an overstated rate base in the prior rate cases. 7 DECISION NO, _78565 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 DOCKET NO. SW-01428A-21-0402 et al. 43, | The Company expressed concerns that Staff Recommendation (c) will pose compliance tracking difficulties because the ongoing compliance filing requirement will shift with each change in ownership percentage. Liberty Utilities suggests the identification of a fixed reporting interval instead of a moving compliance target. 44, Liberty Utilities also observed that Staff Recommendations (a) and (b) express capacity ownership interests in the NSM in terms of percentages. The Company asserts that percentages can be misconstrued because they are only accurate as of the date they are identified and could change due to transfers of ownership shares between the other owners of the NSM. The Company recommends expressing the ownership interests in GPD instead of percentages. 45. Finally, the Company seeks clarification regarding Staff Recommendation (e) to the effect that Liberty Utility will be required to charge its approved tariff rates in the proposed extension areas, 46. In response to the Company’s concerns, Staff revised its recommendations to consolidate Recommendations (a) and (b) into a new Recommendation (a) to instead require: a. That Staff and the Company work on the method and structure for the Company's report documenting the total ownership percentages and allocated capacity in gallons per day for each owner, ownership type and other capacity and the date of any newly acquired ownership of the Northwest Sewer Main using the following sample format Owner's Main Capacity | Beneficiary Other Total in gpd name or | (Ownership) | Capacity Capacity for Other in gpd (Ownership) | sale in gpd in gpd Totals — in | 1,837,325 175,715 1,899,920 3,912,960 gpd and will continue to file an update with Docket Control] as a compliance item in 8 DECISION NO. 78565 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 Aa & WwW N oe a ro. | iB 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 DOCKET NO. SW-01428A-21-0402 et al. this docket, on an annual (calendar year) basis by April 15th of the following year; 47. Staff further explained that its Recommendation (e) is standard language used in all CC&N extension matters. Upon questioning, Staff witness Ms. Hunsaker confirmed that Staff's recommendation means that the Company would charge its approved tariff rates within the CC&N extension areas. 48. | The Company stated in closing that with Staffs revision to Recommendations (a) and (b), and the clarification of Recommendation (e), Liberty Utilities has no objections to the Staff recommendations, as revised. 49. Staff's Revised Recommendation (a) and Recommendations (c), (d), and (e) are reasonable, appropriate, and should be adopted. CONCLUSIONS OF LAW I. Liberty Utilities (Litchfield Park Water & Sewer) Corp. is a public service corporation within the meaning of Article XV of the Arizona Constitution and A.R.S. §§ 40-281 and 40-282. 2: The Commission has jurisdiction over Liberty Utilities (Litchfield Park Water & Sewer) Corp. and the subject matter of the applications. 3. Notice of the applications was provided in accordance with the law. 4, There is a public need and necessity for wastewater service in the proposed extension areas. 5, Staff's recommendations, as discussed herein, are reasonable and should be adopted. ORDER IT IS THEREFORE ORDERED that the applications of Liberty Utilities (Litchfield Park Water & Sewer) Corp. to extend its Certificate of Convenience and Necessity to provide wastewater utility Is ae 24 [service to the Arroyo Mountain Estates and Savannah Developments, descriptions of which are attached hereto and incorporated herein as Attachment Nos. 1 and 2, respectively, are approved. IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall by April 15, 2023, file with Docket Control, in this docket, a report documenting the total ownership percentages and allocated capacity in gallons per day for each owner, ownership type and other capacity 9 DECISION No, 78°88 Docusign Envelope ID: C399B6EE-1 1AB-404A-A58E-3C016774F028 -& w&’Y WN ny Dn ww DOCKET NO. SW-01428A-21-0402 et al. and the date of any newly acquired ownership of the Northwest Sewer Main and will, on a continuing basis, file an update with Docket Control as a compliance item in this docket annually, by April 15th of the following year. IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall file, as a compliance item in this docket, an updated Arizona Department of Environmental Quality Compliance Status Report indicating that the Palm Valley Wastewater Reclamation Facility is in compliance, within one year of the effective date of this Decision. IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall charge its existing rates and charges in the proposed extension areas. IT IS FURTHER ORDERED that this Decision shall become effective immediately. BY ORDER OF THE ARIZONA CORPORATION COMMISSION. wx Gt CHAIRWOMAN MARQUEZ PETERSON @OMMISSIONER nab) pai Vy (Inga. Soren fb LAE ren ISSIONER von | “COMMISSIONER TOVAR 4OMMISSIONER O°'CONNOR IN WITNESS WHEREOF, I, MATTHEW J. NEUBERT, Executive Director of the Arizona Corporation Commission, have hereunto set my hand and caused the official seal of the Commissi e affixed at the Wry in the City of Phoenix, this *) wi day of L 2022. MATTHEW XK NEUBERT EXECUTIVE DIRECTOR DISSENT DISSENT CHH/ec 10 DECISION No, __78565 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 SERVICE LIST FOR: LIBERTY UTILITIES (LITCHFIELD PARK WATER & SEWER) CORP. DOCKET NO.: SW-01428A-21-0402 and SW-01428A-21-0403 Kelly A. Daly Paloma Diaz SNELL & WILMER L.L.P. One Arizona Center 400 E. Van Buren, Suite 1900 Phoenix, AZ 85004-2202 Attorneys for Liberty Utilities (Litchfield Park Water & Sewer) Corp. Judy Jenkins Hitchye LIBERTY UTILITIES 14920 W. Camelback Road Litchfield Park, AZ 85340 Attorney for Liberty Utilities (Litchfield Park Water & Sewer) Corp. Jeffrey W. Crockett CROCKETT LAW GROUP, PLLC 2198 E. Camelback Road, Suite 305 Phoenix, AZ 85016 Attorney for Arroyo Mountain Estates Homeowners Association and Savannah Homeowners Association jeffiajeffcrockettlaw.com Consented to Service by Email Robin Mitchell, Director Legal Division ARIZONA CORPORATION COMMISSION 1200 West Washington Street Phoenix, AZ 85007 LegalDiv@azce.gov utildivservicebyemail@azcc.gov Consented to Service by Email I DECISION NO. 78865 Docusign Envelope ID: C399B6EE-11AB-404A-A58E-3C016774F028 DOCKET NO. SW-01428A-21-0402 et al. Attachment No. 2 “Exhibit A” A PARCEL OF LAND LYING IN THE WEST HALF OF SECTION 15, TOWNSHIP 2 NORTH, RANGE 2 WEST OF THE GILA AND SALT RIVER MERIDIAN, MARICOPA COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE WEST QUARTER CORNER OF SAID SECTION 15, FROM WHICH THE SOUTHWEST CORNER OF SAID SECTION 15 BEARS SOUTH 0 DEGREES 13 MINUTES 05 SECONDS WEST, A DISTANCE OF 2637.32 FEET, SAID QUARTER CORNER BEING THE TRUE POINT OF BEGINNING; THENCE NORTH 0 DEGREES 12 MINUTES 51 SECONDS EAST ALONG THE EAST LINE OF THE NORTHWEST QUARTER OF SAID SECTION 15, A DISTANCE OF 1318.88 FEET, THENCE NORTH 89 DEGREES 54 MINUTES 22 SECONDS EAST, A DISTANCE OF 2628,99 FEET TO A POINT ON THE NORTH/SOUTH MID-SECTION LINE OF SAID SECTION 15; THENCE SOUTH 0 DEGREES 09 MINUTES 26 SECONDS WEST, ALONG SAID MID-SECTION LINE, A DISTANCE OF 2639.44 FEET; THENCE SOUTH 89 DEGREES 56 MINUTES 52 SECONDS WEST, A DISTANCE OF 2631.70 FEET TO A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 15; THENCE NORTH 0 DEGREES 13 MINUTES 05 SECONDS EAST, A DISTANCE OF 1318.66 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 6,939,998 SQUARE FEET (159.32 ACRES). SHEET | OF 2 DECISION No, ___ 78565