The Watershed Association, along with the Woodcreek Property Owners Association and Trinity Edwards Springs Protection Association learned last week that Administrative Law Judges recommended that the Public Utility Commission deny Aqua Texas’ request for an $8.8 million annual rate increase.
The utility is seeking to recover $86 million in claimed infrastructure improvements by increasing water rates by $4.7 million and sewer rates by $4.1 million annually through a system improvement charge amendment.
According to their 103-page Proposal for Decision, “Having considered the evidence and argument, the administrative law judges recommend the application be denied.”
The proposal also stated, “With minor adjustments, Staff of the Public Utility Commis- sion of Texas recommended that the application be approved,” however, “Several intervenors, including the Office of Public Utility Counsel, recommend that the amendment be denied.”
Administrative Law Judges have the power to prepare and issue decisions, along with written findings of fact and conclusions of law.
According to The Watershed Association, “The ALJs found that Aqua Texas failed to properly document and justify its expenditures, could not demonstrate which expenses were legitimate capital improvements versus routine maintenance, and did not comply with regulatory requirements that would allow the Commission to reliably calculate an appropriate SIC. Thus, the ALJs recommended that the application be denied.”
