Corporation Commission hears Desert Hills Water case
by Kathleen Stinson

PHOENIX/DESERT HILLS – Customers of Desert Hills Water Company on Monday packed the Arizona Corporation Commission hearing room as commissioners held an evidentiary hearing to determine whether the embattled water provider has violated state regulations.

The commission in June alleged DHW, which serves about 1,650 customers, failed to provide adequate potable water to its customers, failed to respond to requests for water main extensions, and failed to undertake full and prompt investigations of all service complaints. The hearing is slated to continue today.

ACC attorney Maureen Scott, in her opening statement, said: “The company is not acting fast enough to remedy hardships to customers.”

The hearing stems from complaints made by numerous DHW customers who say they have been experiencing water outages every morning for the past four months and, at other times, inadequate water pressure.

DHW vice president Mary Beth Rowland has said her company is building a booster pumping station to correct the problems and that she never expected the growth of her service area to reach today’s proportions.

Scott said further in her opening statement that the company’s own growth projections indicate DHW would have 1,650 customers by 1998.

ACC attorneys are asking commissioners to impose a $500,000 fine and order the water company to correct its short‑term water supply problems by December. In addition, the commission is being asked to set an April 2007 deadline for DHW to correct further deficiencies.

If the privately owned water provider fails to meet these deadlines, the ACC attorneys said they will ask the commissioners to turn company management over to an interim manager.

Rowland told The Desert Advocate on Tuesday she could not comment until after she testifies on Wednesday.

DHW attorney Jay L. Shapiro, in his opening statement, said the water company will agree to meet the deadlines. He stated that the company is talking with Phoenix officials and the Arizona American Water Co. about establishing agreements to buy water from them. Shapiro also said the company is willing to build a Website to maintain better ommunication with customers.

DHW is asking the commission to hold the fine in abeyance until the company gets its booster station up and running.

Mike and Cindy Sprinkle, two disgruntled DHW customers, said the deadlines are not enough.

“I personally think that’s absurd,” Mike Sprinkle ex‑claimed. Cindy Sprinkle said she “cannot imagine” waiting until December or April to get the problem remedied.

Mike Sprinkle also opposes any delay in requiring the company to pay a fine. “If there is no pain or penalty, then they won’t” fix the water outage,” he said.

Maricopa County’s Environmental Services Drinking Water Program early this summer found the company out of compliance with regulations and will not approve any proposed or new water lines or subdivisions in the DHW service area, said John Kolman, manager of the program.

Kolman testified on Monday that the county on June 28 sent a letter to DHW citing the company for outstanding violations– specifically, failure to maintain more than 20 pounds per square inch of pressure and for not having sufficient water storage.

At least one developer filed an action to intervene in the case.

Abbyron Desert Hills LLC‑Cielo Grande asked the commission to exempt Abbyron from any moratorium on development, stating they could drill a well that would provide sufficient water for any new homes the company plans to build.

Commission spokeswoman Heather Murphy said she thinks it will take between 10‑20 days after the hearing concludes for commissioners to render a decision.