AUSTIN — Aqua Texas’ proposal to increase water and wastewater rates for all customers across the state, including those in Hays County, was denied at the end of last month.
As previously reported by the Hays Free Press, Aqua Texas filed for a system improvement charge (SIC) increase with the Public Utility Commission (PUC) in October 2023, which would have covered all of its customers in Texas, but the increase would have been different for the Central, Southeast and North Texas regions, depending on the capital spent on infrastructure improvements in that area. For Central Texas customers, which includes Hays County, the base rate for water would have been $20.81 and the base rate for wastewater would have been $32.48; paired with a previous rate hike, customers’ bills could have increased by an average of more than $50 per month.
A hearing conducted by the State Office of Administrative Hearings to consider Aqua Texas’ proposal began Wednesday, Aug.
7, 2024, and concluded Thursday, Aug. 8, 2024, but there was no decision or ruling made within the hearing and the final decision was ultimately up to the PUC.
Months later, the PUC unanimously voted Jan. 31, 2025, to deny Aqua Texas’ request for an $8.8 million annual rate increase through its SIC amendment.
According to a memorandum by PUC Chairman Thomas Gleeson, the commission’s ruling found that Aqua Texas failed to meet its burden of proof after the following: failing to organize infrastructure investments by project as required by previous commission orders; not adequately distinguishing what constitutes a capital investment versus routine maintenance expenses; providing poorly organized records; and failing to demonstrate how claimed improvements benefited customers.
“I think this is another case where the applicant did not meet its burden of proof. I agree with the [Administrative Law Judge's] ultimate conclusions in this case and my memo really lays out some modifications and clarifications to those thoughts,” said Gleeson.
“I don’t feel like they submitted sufficient documentation.
And one of the things that was pointed out in your memo was that there had been some direction previously in terms of how they needed to organize the information by project and put it in an organized manner,” said PUC Commissioner Kathleen Jackson. “I feel like that is absolutely imperative that we have that, so that we can have the information in the data that we need to find an application sufficient, but in this particular case, that was not presented.”
Aqua Texas, per PUC’s orders, must now:
• Refund or credit amounts collected under interim rates
• Submit detailed refund calculations within 90 days of the PUC’s order
• Provide testimony and supporting documentation that explains in detail and fully support its capitalization policy in its next rate case
• Address concerns about its capitalization policy, which was adopted in 2016, that never underwent a commission review Affected customers who paid increased rates during the interim period should expect refund or credit information within 90 days. “Aqua Texas is aware of the decision made by the PUC and looks forward to reviewing the Commission’s ordering action items. Customers can expect a refund of the SIC charges within 90 days,” a representative of Aqua Texas said in a statement.
“As always, Aqua Texas remains committed to providing safe and reliable water and wastewater service to our customers across the Lone Star state.”
