The state commission that regulates utilities will allow Johnson Utilities to expand its reach, despite the fact the company is cited for recently spilling 10,000 gallons of raw sewage into Queen Creek Wash.

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The Arizona Corporation Commission will allow Johnson Utilities to serve a handful of future developments near Florence, but the permission came with a few caveats.

The highest hurdle is for the private utility, which serves 20,000 customers in Pinal County, to reach compliance with the state's environmental regulator.

The Arizona Department of Environmental Quality has asked Johnson Utilities to post signs around Queen Creek Wash, saying that the standing water is still unsafe for human contact.

A final solution for cleaning up the water has not been reached.

Commissioner William Mundell said that he had reservations about granting the utility the right to expand.

"With all the pending and past (environmental) violations, why should we allow this expansion to take place?" he asked.

He also said the company's explanations that customers in the nearby Pecan Creek development had clogged the sewer system with mop heads and other household items to create the overflow didn't make sense.

"The mop is sort of a red herring," Mundell said.

In addition to the cleanup, Johnson Utilities was told that it must file correct paperwork for a future rate change for its water and sewer customers before expanding its system.

Two of Johnson's filings have been incomplete, according to the commission.

Johnson has requested that the rates be adjusted; some areas could be higher, some lower.

A company representative said that the net change would be small. Currently, Johnson Utilities is more than 30 percent higher than the state average for water and sewer service, and twice as much as Phoenix and Florence, according to recent Johnson Utilities documents.

Lawyers for Johnson Utilities said that they were comfortable with the ACC's ruling.

However, it is unclear if the mandate to comply with quality standards could speed up the cleanup in the wash, which has tested high for E. coli and fecal coliform since the spills occurred in May.

Jeffrey Crockett, one of the utility's lawyers, said that there has been no confirmed cleanup plan. Johnson Utilities has recommended treating the wash with chlorine, he said.

"I honestly don't know what they want us to do," Crockett said.

It's unclear if a delay in the expansion of the utility, which would serve several future developments in northern Pinal County, could slow home building.

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