VICTORY FOR RATEPAYERS: PUBLIC UTILITY COMMISSION DENIES AQUA TEXAS’ $8.8 MILLION RATE INCREASE REQUEST
FOR IMMEDIATE RELEASE February 1, 2025
Contact: David Baker Executive Director, Watershed Association davidbaker@watershedassociation.org 512-785-8950
Lauren Ice, lauren@txenvirolaw.com 512-469-6000
VICTORY FOR RATEPAYERS: PUBLIC UTILITY COMMISSION DENIES AQUA TEXAS’ $8.8 MILLION RATE INCREASE REQUEST
AUSTIN, TX – In a landmark decision yesterday, the Public Utility Commission of Texas (PUC) unanimously voted to deny Aqua Texas’ request for an $8.8 million annual rate increase through its system improvement charge (SIC) amendment. The decision follows Chairman Thomas Gleeson’s comprehensive memorandum highlighting significant deficiencies in Aqua’s application. [Click Here to Read]
“This is a major victory for 170,000 Aqua Texas ratepayers,” said David Baker, Executive Director of the Watershed Association. “The Commission’s decision sends a clear message that utilities must properly document and justify their expenditures before passing costs on to customers.”
The Commission’s ruling found that Aqua Texas failed to meet its burden of proof in several key areas:
- Failed to organize infrastructure investments by project as required by previous Commission orders
- Could not adequately distinguish between capital improvements and routine maintenance costs
- Provided poorly organized records that made verification of expenses impossible
- Failed to demonstrate how claimed improvements benefited customers
Notably, the Commission ordered Aqua Texas to:
- Refund or credit all charges collected in excess of previously approved rates
- Submit detailed refund calculations within 90 days
- Provide comprehensive documentation of its capitalization policy in its next rate case
- Better organize and document future rate increase requests
“The Commission’s decision upholds the fundamental principle that utilities must clearly demonstrate benefits to customers before increasing rates,” said Lauren Ice, attorney for the Watershed Association. “Chairman Gleeson’s memorandum particularly emphasized that administrative completeness doesn’t guarantee legal sufficiency – utilities must meet their full burden of proof.”
The ruling also requires Aqua Texas to address concerns about its capitalization policy, adopted in 2016, which has never undergone a Commission review. Questions were raised during the proceedings about whether certain expenses were improperly classified as capital investments rather than routine maintenance costs.
Affected customers who paid increased rates during the interim period should expect information about refunds or credits within 90 days. The Watershed Association will continue monitoring the refund process and Aqua’s compliance with the Commission’s order.
Click Here to watch the Public Utility Commission’s vote on the Aqua Texas System Improvement Charge (SIC) rate case
For more information about the ruling or refund process, customers can visit watershedassociation.org, https://ourwaterourtexas.com, or contact the Watershed Association at davidbaker@watershedassociation.org.