Hearing - W-01994A-26-0037 - Caballeros Water Company, Inc. - Jun 23, 2026
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What is the purpose of this hearing and who are the parties involved?
We're going to go on the record at this time. Good morning. This is the time set for the public comment and evidentiary hearing in the matter of the application of Caballeros Water Company Incorporated for an extension of its certificate of convenience and necessity. This is docket number W-018. 994A-26-0037. My name is Donna Sansone. I am the administrative law judge assigned to preside over this matter. I'll start us off by taking the appearances of the parties. We'll begin with a company.
Good morning, Your Honor. Jeff Crockett, appearing on behalf of the applicant, Caballeros Water Company, Inc.
And with you today?
Oh, I'm sorry. With me is George McGann, who is my witness.
All right. Thank you so much. And
for staff? Good morning, Your Honor. Bridget Humphrey on behalf of staff and with me at council table are staff's two witnesses, Connor Tetz and Ross Nemeth. Am I pronouncing your name close to
correct?
Thank you so much, Ms.
Humphrey. We'll move into procedural items then before we go to public comment. Does anyone, does the company or staff have any procedural items or issues that we need to address starting with Mr. Crockett?
No, Your Honor, not from the company.
All right, Ms. Humphrey. Thank you. In that case, we will move on to public comment. This is the time for any member of the public present to provide comments in this matter. Are there any members of the public who would like to provide comment today on Caballeros' application? I do not see any in the hearing room. I do see one call-in user that may potentially be here for a comment. So at this time, if you would like to speak on the application in this matter, if you could select star six on your phone, I believe. That should unmute you. I'll also try to unmute you here. All right, is there anyone on the phone that would like to provide public comment today, if so, please go ahead and speak.
Hearing none, I'm assuming that that means that they do not intend to provide comments. So at this time, let the record reflect that no one has indicated a desire to speak. We'll move into opening statements. Mr. Crockett, would you like to make an opening statement on behalf of the company?
Yes, Your Honor. Thank you. Good morning again. I'm Jeff Crockett. I represent the applicant Caballeros Water Company Inc. Caballeros Water Company provides water service to 61 connections. The company's certificate of convenience and necessity is located southwest of the town of Wickenburg in Maricopa County. In the company's recent rate case, we discovered that there are two so-called donut holes within the CCNN. One of the donut holes is the Rancho de los Caballeros Resort. The resort has its own water system and does not receive water service from the water company. This area is not included in the application to extend the company's CCNN today. The second donut hole is an area of approximately 12.8 acres, which includes 15 residences or lots.
Caballeros Water Company currently provides water service to the customers in this uncertificated area, and the company's existing CCNN completely surrounds this extension area. The current ownership only recently acquired Caballeros Water Company in 2022, and so we don't exactly know why this donut hole exists. But in the company's recent rate case in decision 81536, the commission ordered Caballeros Water Company to file an application to extend its CCNN to include this second donut hole, which has the residences and a couple of lots. So the filing in this docket was made to comply with Decision 81536. Caballeros Water Company is requesting that the commission approve an extension of its CCNN to include this 12.8 acres as those are shown in the application and the staff report.
The area is located in a portion of Section 21, Township 7 North, Range 5 East, Gila and Salt River Basin Meridian in Maricopa County, Arizona. No new or additional facilities are needed to serve the customers because the area is currently being served by the water company. Caballeros Water Company will provide water service to the requested extension area under its current authorized rates and charges which were approved by the commission in decision 81536.
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Agenda
8 items
1
What is the purpose of this hearing and who are the parties involved?
0:00–11:31
2
Why is Caballeros Water Company seeking a Certificate of Convenience and Necessity (CCNN) extension?
11:31–22:50
3
What are the "donut holes" and how do they affect the CCNN extension request?
22:50–39:47
4
How does the company demonstrate compliance with staff recommendations and the 2026 rate‑case decision?
39:47–51:32
5
What evidence does witness George McGann provide about ownership and service in the extension area?
51:32–1:02:08
6
How does staff address water‑loss calculations and meter‑accuracy issues for Caballeros?
1:02:08–1:14:42
7
What are the final arguments and closing statements regarding public interest and fit‑proper status?
1:14:42–1:17:17
8
What are the next procedural steps and timeline after the hearing concludes?
1:17:17–1:17:17
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