Town seeks transfer of DHW assets
by Kathleen Stinson

CAVE CREEK – This town is about to take the next step toward making Desert Hills Water Co. a municipal utility.

The town plans to submit an application to the Arizona Corporation Commission that, if approved, would allow transfer of the water company’s assets.

Cave Creek Town Manager Usama Abujbarah,  in a letter to Commissioner William Mundell,  said the town is drafting the application and intends to file it in the near future.

“Thus, I can assure you that we want to bring this matter before the commission as soon as possible,” Abujbarah stated in the Oct. 17 letter.

This is the latest in the back‑and‑forth legal wrangling between the town and the commission over the water company.  

The commission this past summer held a hearing looking into whether Desert Hills Water violated state regulations by failing to provide adequate service to a group of its customers. Although a law judge has determined the company did violate certain regulations and recommended a fine be imposed, the final decision rests with the commission and is pending.

In September, Cave Creek purchased the water company but the commission, by issuing an emergency order, reasserted its jurisdiction over DHW. This action stopped the town from transferring assets and dissolving the company. Commissioners have said their actions were necessary to protect DHW customers.

Had the town been able to transfer DHW’s assets, the company would have been reclassified as a municipal utility. Government‑owned utilities do not have to answer to the commission.

In a letter dated Oct. 5 that Commission Chairman Jeff Hatch‑Miller sent to fellow commissioners, he recommended postponing the state’s case against the water company. He asked that the final decision be considered at the same time as the town’s request to transfer DHW’s assets.

Reach the reporter at kathleen@thedesertadvocate.com.