The Public Utility Commission of Texas voted Feb. 20 to grant an appeal in Aqua Texas’ rate case, allowing the company to begin collecting interim rates while the commission considers a final decision on the proposed increase.
Aqua Texas originally filed an application to the Public Utility Commission of Texas for the authority to change rates on June 20. In November, the company proposed a System Improvement Charge rate increase during a public hearing in Woodcreek, which the city denied.
On December 12, PUC staff argued that “the establishment of interim rates will not unreasonably affect other parties or the public interest so long as interim rates remain in effect until a final rate determination is made by the commission. The approved interim rates are intended to protect customers from potential overcharges and to ensure refunds if final rates are lower than proposed.”
Among the arbitrators in the case were the Watershed Association, Hays County and the City of Woodcreek. Lauren Ice, counsel for the Watershed Association, Hays County and the City of Woodcreek presented the oral argument to the PUC.
Prior to the hearing on February 20, testimony by a nationally-recognized rate expert, William Stannard of Kansas City, Missouri, was prefiled.
According to his direct testimony, which was made available to the Wimberley View, Stannard gave his opinion of Aqua Texas’ Notice of Intent and Application to Change Rates.
Stannard testified, “The application and supporting materials are disorganized and incomplete, making a reliable review or audit impossible; Aqua has not provided data supporting the components of its proposed rate base; Aqua has improperly included numerous expenses in its rate base; Aqua’s proposed water rate structure is inconsistent with cost of service principles; and Aqua has improperly attempted to claim rate case expenditures for its failed SIC case.”
Aqua Texas declined the Wimberley View’s request for comment stating they would wait until the judge’s final order has been made.
At the February 20 hearing, the PUC commissioners voted to grant commission staff’s appeal in the rate case, overturning the prior administrative law judge’s order to deny interim rates.
The Watershed Association is calling the appeal a protection for consumers. “By granting today’s appeal, the PUC has established that the rates Aqua collects beginning March 9 will be considered interim rates, meaning if the Commission’s final order sets lower rates than what Aqua proposed, customers will be entitled to refunds of the difference.”
According to the Watershed Association, the System Improvement Charge sought by Aqua Texas “is a sweeping rate increase: a 25% increase in water revenues and a 47% increase in wastewater revenues that will affect over 100,000 customer connections across Texas.”
A hearing on the merits of the Aqua Texas rate increase is scheduled to begin April 21.
