Mineral Wells water rate hike draws appeals to state regulators from districts, residents

Weatherford Democrat
By Glenn Evans, [email protected]
January 9, 2023

SANTO — Two of seven wholesalers that buy water from Mineral Wells are teaming up against a 146% rate hike in an appeal to the Public Utility Commission.

A second group, comprised of residents of the city’s extraterritorial jurisdiction, also has filed a petition asking the state regulator to reverse the rates that arrived with December bills.

The Santo SUD and Sturdivant-Progress WSC issued the following public statement on Friday:

“The appeal of the City’s wholesale rates was filed on behalf of our customers. The 146-percent increase from $7.79 per 1,000 gallons to $19.17 is a significant increase and puts the wholesale water rate right at one of highest in the state. We received limited information from the city that indicates the cost of service analysis for wholesale customers was not completed in the city’s rate study, and there are also questions related to how future debt is included in the new rate. We are exercising our right of appeal under the Texas Water Code on behalf of our customers to receive more information about the rate increase and to ensure that the rate increase complies with state law.”

The rate hike was enacted by the council as the lynchpin for borrowing $277.9 million to build a new water source for the drought-challenged city on the cusp of an anticipated growth spurt from Metroplex migration.

Water planners and council members say the high bills are necessary to attract big-pocket lenders to fund Turkey Peak Reservoir, a new water treatment plant and other water infrastructure.

“The council adopted the rates based on the coverage of debt service necessary for improvements to the water system and future water security for the customers it serves,” Mayor Regan Johnson wrote on her mayoral Facebook page. “If you attended any of the meetings over the last many months, or public meetings held by councilwoman (Beth) Watson, you would have heard us all say at various times that we did not WANT (sic) to raise rates. But FAILING (sic) to provide water for current citizens and future growth was not an option.”

Attorney Kristen Fincher, representing the Sturdivant/Santo wholesalers and their customers, said the city has until Jan. 16 to respond to the PUC appeal.

Agency staff will then determine whether the appeal is technically complete and file comments by the next day. All parties are asked to propose a hearing schedule by Jan. 17 as well.

The dispute will likely then be assigned to an administrative law judge, who has the option of conducting a trial before the specialized State Office of Administrative Hearings.

Fincher said the process can take up to two years.

Meanwhile, according to the PUC website, customers in the protesting areas must pay the new rate. If they prevail, however, they can expect refunds of amounts they are found to have overpaid.

The Santo/Sturdivant appeal includes a request the state set an “interim rate” at its pre-November level.

An earlier rate appeal was filed by residents of Mineral Wells’ extraterritorial jurisdiction. That group is represented by Terri Glidewell, who most recently led a successful petition to recall Ward 1 Councilmen Jerrel Tomlin.

The new water rate is front and center in that recall petition, as it is on a related petition drive to oust Ward 4 Councilman Doyle Light.

The council is scheduled to set Light’s recall date on Tuesday.