Public Comment & Hearing - WS-21155A-26-0023 - Cactus State Utility Operating Company, LLC W-20801A-26-0023 - Desert Valencia Water, Inc. - Jun 04, 2026

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Arizona Corporation Commission 2h 0m 7 agenda items transcribed 3 days ago official recording ↗

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What is the purpose of this public comment and evidentiary hearing?

Donna Sansone 0:00

Let's go ahead and go on the record. Good morning. This is the time set for the public comment and evidentiary hearing in the matter of the joint application of Desert Valencia Water Incorporated. In Cactus State Utility Operating Company L L C for Arizona Corporation Commission approval to sell Desert Valencia's assets, water system assets and transfer its CCNN to Cactus State. This is docket number W two zero eight zero one A dash two six dash zero zero two three. And W S dash two one one five five A dash two six dash zero zero two three. Now my name is Donna Sansone and I am the administrative law judge assigned to preside over this matter. I'm going to start by taking the appearances of the parties.

Donna Sansone 0:53

I'll start with uh the company.

Caitlin Smith 0:57

Thank you. Good morning, Your Honor. My name is Caitlin Smith. On behalf of the joint applicants, Cactus State Utility Operating Company, LLC, and Desert Valencia Water Inc. Uh with me today I also have uh Fred Kreis, he's the regional director of Cactus State Utility Operating Company um in Arizona. Thank you, Miss Smith. And for staff?

Eli Gollup 1:23

Eli Gollup, staff attorney. Uh with me I have Connor Totts, the um engineer in this case, who will be testifying. Um, as well as Robert Ames, the analyst who'll be testifying. Thank you.

Donna Sansone 1:38

Thank you, Mr. Columb. Uh in that case let's move on to procedural issues, if any, before we move to public comment. Uh Miss Smith, does either of the companies have any procedural issues before we get started? No procedural issues. Your staff?

Eli Gollup 1:57

No, Your Honor.

Donna Sansone 1:59

In that case, we're going to move on to public comment at this time. This is the time for any member of the public present to provide comment on this matter. At this time are there any members of the public who would like to provide comment today? On the joint application for the sale of Desert Valencia's assets and transfer of its C CNN to Cactus State. Is there anyone in the hearing room that's here to provide comment? All right, and I do see we have potentially one call in user. Um I'm going to ask uh that they unmute themselves. Uh the way that you can do that is by entering star six on your phone. I also am going to try to unmute you here uh on the WebX screen. Uh call in user, are you here to provide comment today?

Donna Sansone 2:58

Is there anyone on the telephone that is here to provide public comment today? All right. In that case, uh not hearing any response. Uh it appears um That no one has uh decided to make public comment today, so let the w record reflect that no one has indicated a desire to speak. Uh we'll move into opening statements. I'll start with Miss Smith. Would you like to make an opening statement on behalf of either Desert Valencia or Cactus State? The joint applicants will waive opening statements. And for staff?

Eli Gollup 3:37

Staff ways as well.

Donna Sansone 3:39

Right. Then let's move into the presentation of witnesses and evidence. Uh Miss Smith, are you ready to call your first witness? Yes, Cactus State calls uh

Caitlin Smith 3:48

Fred Christ to the stand.

3:50

Mr.

Caitlin Smith 3:51

Christ, you can come up to the witness stand.

Donna Sansone 3:59

And then if you look up above you'll see our court reporter who's here via WebEx, I will have our court reporter swear you in.

Adam 4:05

Sure, thank you. Sir, would you raise your right hand? Do you swear or affirm the testimony you're about to give will be the truth, the whole truth, and nothing but the truth?

Fred Kreis 4:15

Yes, I do.

Adam 4:16

Thank you.

Donna Sansone 4:17

Welcome. Miss Smith, whenever you're ready you can proceed with questioning.

Caitlin Smith 4:21

Thank you, Your Honor. Good morning, Mr. Chrys.

Fred Kreis 4:24

Morning.

Caitlin Smith 4:25

Can you please state your name and business address?

Fred Kreis 4:28

Yes, my name is Fred Kreis, spelled K-R-I-E-S-S. The business address is um Central State's Water Resources one six three zero Topere Road Suite one hundred forty Topere Missouri six three three one three one.

Caitlin Smith 4:46

Who are you testifying on behalf of today?

Fred Kreis 4:49

On behalf of Cactus State Utility Operating Company and its parent, Central State's Water Resources.

Caitlin Smith 4:55

Have you testified before the Commission before?

Fred Kreis 4:57

Yes, on multiple occasions.

Caitlin Smith 5:00

And who are you employed and in what capacity?

Fred Kreis 5:03

Yeah, I'm employed by Cactus State Utility. As our regional director, I'm based here in Arizona.