TCEQ still undecided on approving Aqua Texas water rate increase

Published Sunday, March 23, 2008

By Brandon Evans

After listening to testimony from a long list of elected officials, residents and representatives from Aqua Texas in Austin on Wednesday, officials with the Texas Commission on Environmental Quality were unable to approve a proposed rate increase for water service provided by Aqua Texas.

The decision has been delayed until a May 21 hearing.

Aqua Texas is a private water provider that provides water to the Shale Creek subdivision, located in the southeast corner of Wise County. They also provide water to more than 150,000 Texans scattered throughout the massive state.

The TCEQ hearing was considering a water and sewer rate increase to 52 counties in the state of Texas. The proposed base rate for the Shale Creek residents was $97.09 for the base water and sewer rate - a cost well above any public water utility in the area.

Residents from throughout Texas congregated at Wednesday's hearing in Austin to oppose the proposed rate. Residents have already been billed the high rate for years now. Aqua Texas is allowed to charge the proposed rate unless and until the rate is denied by TCEQ.

Aqua Texas president Bob Laughlman said the rates have been in place since 2004. After already gong through a full round of hearings, the March hearing was held because Shale Creek residents felt they never had a fair chance to protest the rate. Shale Creek did not start admitting residents until 2005 and 2006, after the initial round of hearings had passed.

Although no decision was made either way by TCEQ, one Shale Creek resident in attendance felt that TCEQ will not approve the rate.

"They didn't approve it or deny it," said Shale Creek resident Ross Brewer, who made the trip to Austin to attend the hearing.

The three person commission did not seem satisfied with the reasons Aqua Texas gave for increasing the base water rate so high, Brewer said. Aqua Texas cited extensive upgrades across the state as a reason, but at least one commissioner did not feel their numbers were completely accurate.

"The commissioners asked good questions, but Aqua Texas didn't have good answers," Brewer said. "I got the perception that the commissioners wanted more independent data, instead of just Aqua Texas' numbers."

Brewer said there was a huge turnout of residents affected by Aqua Texas' water rates.

"There was a big turnout," Brewer said. "The hearing room, which could hold about 150 people, was standing room only. The overflow room was also loaded and more people were standing outside. There were a lot of people from south Texas and southwest Texas present."

Also, several elected officials from throughout the state testified on behalf of residents, including Rep. Phil King and a staff member from the office of Sen. Craig Estes.

"It felt good to be a citizen of Texas, to see our elected officials get involved," Brewer said.

However, Laughman said he thinks the commissioners will probably approve the proposed rate increase, which has already been in effect for four years. The matter has already gone before administrative law judges. The AJL approved the rate increase.

"The administrative law judges were in agreement that the rate was justifiable because the money was spent on capital improvements," Laughman said.

He said Aqua Texas has invested $80 million in the last five years across the state of Texas. He said the rate is needed to offset the costs of improvements. He said improvements in the Shale Creek subdivision were costly, especially in the area of wasterwater treatment.

Laughman acknowledged that the rate is higher than other water and sewer utilities in the Fort Worth area, but it is required to offset the high infrastructure costs.

Even after the capital improvements have been paid off through the rate increase, Laughman does not anticipate the rates ever decreasing.

Regardless of the outcome of the May 21 hearing, Brewer hopes the next state legislative session works to put some kind of limits on what a for-profit company can charge for water service.

"I understand that Aqua Texas is a for-profit company and needs to earn a profit," Brewer said. "But in doing so they need to be fair to consumers. The way it is now, it is definitely not fair."

With the impression that the TCEQ will force Aqua Texas to lower it's base rate to consumers in May, Brewer gave credit to the residents in Shale Creek and throughout the state.

"I've been really impressed with how residents of Shale Creek and throughout the state of Texas signed petitions and sent letters to our elected officials to try and get this rate lowered," Brewer said.