AUSTIN (WBAP/KLIF) – Changes in water rates could be coming for several North Texas cities.
The Public Utility Commission ruled Thursday that it will examine the water rates for Richardson, Plano, Mesquite and Garland. Those cities claim they don’t need as much water as they’re contractually obligated to buy in a cost sharing plan with the 13 members of the North Texas Municipal Water District.
The commission will oversee negotiations which could bring lower rates for some of the 13 cities but higher rates for others.
“The Cities of Garland, Mesquite, Richardson and Plano applaud the Public Utility Commission for its decision to conduct a review of water rates charged by the North Texas Municipal Water District,” the four cities said in a joint statement. “We are hopeful that this next step in the process will bring us closer to establishing a new rate methodology that is fair and equitable to all members, encourages conservation and better serves the region’s long-term interests.”
The request for a commission examination was made after the cities worked for more than a decade to get relief for ratepayers.
“Due to our lack of bargaining power, all parties remained at an impasse, and our most viable option was to request the PUC review of our rates,” the statement read.
In June of 2015 the four cities asked the PUC for relief for a myriad of reasons. To date, the four cities’ ratepayers have paid nearly $275 million cumulatively for unused water since our cities’ respective peak usage years.
“Unlike most contracts between water districts and cities, the contract with the NTMWD is in perpetuity,” said Plano Mayor Harry LaRosiliere. The contract involves 13 Member Cities, which must approve any changes unanimously. Most other water-supplying entities in Texas are in contracts with single cities.
Leaders from Richardson, Mesquite, Garland, and Plano say they support the long-term initiatives of the District, but cannot continue to subsidize the system while waiting for a change in the rate methodology.
Listen to Clayton Neville’s story below:
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