Water Rate Increase Application and Related Protests Settled at SOAH

Today in Austin we successfully resolved the application for water rate increase filed by our client, Southern Horizons Development -- a developer who owns water systems in Liberty and Montgomery Counties.

The request to increase water rates for two systems were filed with the Texas Commission on Environmental Quality early this year. 82 of the utility's customers filed written protests to the proposed increase. As a result, the TCEQ referred the application to the State Office of Administrative Hearings (SOAH) for a contested case hearing. Based upon that referral, the utility hired Trey Wilson to represent its interests.

After initial consideration of the application by an Administrative Law Judge, the water utility was able to reach an agreement and settlement with its protesting customers. Under the terms of its settlement agreement, the water utility will modestly increase the base, or monthly water rate charged to its customers. In addition, the rate for water over the monthly minimum of 2,000 gallons will be increased. These increases, and the water rate application, were necessitated by increased costs of operating and maintaining the systems and their aging water production and delivery infrastructure.

The TCEQ's Executive Director and Public Interest Counsel were also parties to the contested case.

Based upon the agreement, the application will be referred back to the tCEQ for final approval.