Mr. Mozilo’s comments demonstrated a fundamental lack of understanding of the Arizona Corporation Commission and its mission. The commission is a constitutionally established, independent branch of Arizona government. We are separate from the Legislature, the Governor and the courts. Our responsibilities are quasi‑judicial in nature, meaning we serve as judges on cases. Ours is a process that is open and transparent.

It is true that commissioners are very concerned about the sudden purchase of the Desert Hills Water Company by the town. We believe that the purchase could lead to taxation (water rates) without representation for the customers who get their water from the Desert Hills Water Company.

Currently, it is the commission’s duty to safeguard the interests of the customers of the Desert Hills Water Company; if Cave Creek takes over the company, these customers–none of whom live within the town’s boundaries–will be left without a vote, and could be deprived of any real representative government when it comes to their water service.

Our concern was only heightened when the town made contradictory statements in newspaper articles and at our hearing about whether it will annex the area in which Desert Hills Water Company sits. It remains unclear whether the town will ever annex Desert Hills.

Mr. Mozilo also wrongly stated that the commission showed favoritism toward Global Water. Like Cave Creek, Global has expressed interest in purchasing Desert Hills. But the commission has never chosen sides in the ongoing competition between the town and Global for Desert Hills and another nearby water system, the Cave Creek Water Company.

In fact, the commission has ruled against Global Water on a number of occasions. For instance, recently commissioner Mundell and I questioned Global’s proposed use of groundwater on a golf course in one of its proposed water company service territories and we voted against its approval. Furthermore, commissioner Mundell has opened a docket at the commission to examine financing arrangements that Global Water has utilized in some of their acquisitions, an inquiry I support.

Mr. Mozilo also asserted that commissioner Mundell and I had “an agenda” while addressing Cave Creek’s purchase of Desert Hills. Mr. Mozilo is correct on this point: our “agenda” is to make sure that the 1,600 customers on the Desert Hills system are protected, particularly in light of what they have been through this year. Customers within the notorious one square mile of the Desert Hills system have experienced chronic outages and pressure problems. As a result, the commission recently voted to approve an Order to Show cause against the management of the company.

Throughout this process the commissioners have had one goal: ensuring that the customers of Desert Hills receive a reliable and safe source of water, a basic right of every Arizonan.

Cave Creek may eventually file the appropriate application with the commission for permission to transfer the assets of the Desert Hills Water Company to the town. Until then, the commission will continue to regulate this company. And we won’t stop asking tough questions of its owners.

Kris Mayes

Arizona Corporation

Commissioner