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How to Fix Your System for Free, Save 80 Megagallons and Make $$$$$ in the Process
One thing about Aqua-Texas, Inc. (ATI) that has angered more people out here in the “Cedar Barrens” besides their excessive water/sewer bills, is their wasting of our groundwater water in the City of Woodcreek and Woodcreek North. Almost half of the water that ATI pumps up from the Trinity Aquifer is lost or wasted by leaks in their pipes and lines.
The amount of our precious groundwater from the Trinity aquifer that they waste has been documented at 80,000,000 gallons per year. To put that amount into perspective; it could supply the water needs of about 2000 homes and families for an entire year.
The government agency with the proper jurisdiction over ATI’s pumping is the Hays Trinity Groundwater District (HTGCD). The former Board was ineffective in dealing with ATI even though the leaks are a violation of Texas water laws. Just recently, the newly elected Board's President, Jimmy Skipton made a heroic but uncertain move in the right direction. Skipton is finding out that many obstacles still exist and tempers are on a hair trigger. Communication is difficult when emotions are so high.
At the November 18, 2010 Board meeting of the HTGCD, it was announced that ATI has made an “offer” to fix their leaks. The large crowd of citizens was deservedly suspicious but listened to the thing unfold. President Skipton did a fairly credible job of presenting the “offer”, but nothing was presented to the public in writing.
ATI’s “offer” is that they will fix the leaks that they estimate to cost about $5 million, which they will pay for. In return they want to hold onto the rights to and the 80 million gallons of water they were previously allowing to leak into the ground, for future system expansion. Now for the punch line, ATI will recoup its $5 million “investment” by opening a Rate Case with the TCEQ so they can bill their customers for the full amount over some 5 years or so. Aqua couldn't or wouldn't say how much it would cost per household.
12/4 Update: I have learned directly from ATI that the proposed plan would include a requested 3-year pumping permit with no increase in the amount of water pumped. They will repair the leaks to comply with Rule #9 (15% Loss) at an estimated $5 million total cost for both Woodcreeks. And best of all, they want to keep the 80 Megagallons to sell. They will open a Rate Case before the TCEQ to recover that amount from their Customers. They expect the process to take about 5 years. I suspect much longer ;)
The exact amount expected to be paid by the citizens for the repairs will be somewhat complex due to the differences between the rate structures of the two Woodcreeks. This will necessarily be a separate process for each entity. The City of Woodcreek (phase I) is on a negotiated rate structure that allows them to have a slightly lower base rate for water and wastewater service. Woodcreek North (phase II), being an unincorporated subdivision has a rate structure based on a previously granted Southwest Regionalization.
Note: The following Values and Calculations are not spelled out in
The ATI "Offer" and are therefore my guestimates.
Since the TCEQ allows ATI to directly recover their costs for Capital Improvements by billing their customers, there are significant differences as to what the customers in two Woodcreeks would pay. Using approximate values, let’s say that both the City of Woodcreek and Woodcreek North each have 800 customers. If ATI spends $2.5 million on Capital Improvements (repairs) in the City of Woodcreek (Phase I), each customer would be on the hook for an astounding $3125 or an unaffordable rate increase of $52.08 per month over 5 years.
If a similar $2.5 million were spent in Woodcreek North (phase II), each customer in the Southwest Region of 13,000 customers would have to pay $192.31. Spread out over about 5 years, that is an increase of $3.21 per month. You can see that while the City of Woodcreek has ‘enjoyed’ slightly cheaper utility bills for the last few years, they will be at a distinct financial disadvantage when leaks are repaired. They will likely have to renegotiate their rates and become part of the SW Region or try and secure an injunction via court action. The City could eventually try an acquisition of the system by eminent domain. All of their options will be very expensive and fraught with risk.
These charges will not likely show up in bills for at least a year, as they and can only be billed after the repairs or sections of repairs are completed and approved by the TCEQ.
Our neighbors in Kerrville and elsewhere within the Southwest Region would also see rate increases as part of the shared costs within the Southwes Region. While this is legally right, it seems MORALLY WRONG.
These leaks have been present since at least 2003 when Aqua America Inc. (know then as "Philadelphia Suburban Corp.") purchased the system from AquaSource. In the previous seven years Aqua has done nothing to fix their leaks. No one has been able to force them to fix their leaky system and they certainly have not volunteered to do so. ATI bought a “pig in a poke” and failed to check the “pig”. Now they want their customers to pay for their lack of due diligence.
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| Woodcreek Residents were a bit unhappy with the "Offer" |
The crowd did not find the "offer" very palatable and some like myself voiced their concerns. President Skipton and other Board members seemed a little surprised at the intensity of the objections, but they should have known that it wasn't going to go down easy. No one on the Board is a customer of the infamous Aqua-Texas Incorporated but many in the audience obviously were. Hays County Commissioner Will Conley was there and did speak but his words were a little superficial as you would expect from a politician not wanting to incur the wrath of his constituents. This is a very touchy subject for the property owners in the Woodcreeks. Some talk about a committees or citizens groups to work on this near impossible situation was mentioned but no firm plans were revealed.
If this entire proposal is approved and executed,
Aqua Texas a.k.a. Aqua Utilities will have;
- an additional 80 million free gallons of water/year to sell.
- enhanced sales potential due to more a favorable climate for additional development.
- fixed their leaky system substantially increasing its value, at no cost to them.
- the HTGCD, TCEQ and the Public will be off of its back for wasting water.
- a 3-year uninterupted pumping permit to allow for increased expansion and contracting.
The Customers will have;
- increased water/sewer bills.
- some further lowering of their property values.
- knowledge that most of the 80 million gallon leaks have stopped however, now ATI can sell the water and gain increased revenues.
- increased development in the area, therefore more pressure on the aquifers.
- construction inconveniences and water interruptions for about 5 years
- no guarantee that Aqua will not ask for further rate increases during their 3-year permit period.
Although I feel that everything here is true, it is the responsibility of the reader to do his or her own research before arriving at their own conclusions about the veracity of any statement(s) herein. Everything contained within these pages is protected speech guaranteed by the United States Constitution. So There!
