IOU Water Rate Process   

What does this notice mean for me? A Notice of a Proposed Rate Change means your water utility is asking PUCT approval to change your water or sewer rates.

Are my rates going to increase? Only if the PUCT grants approval after thoroughly reviewing the utility's request.

Why does my utility need to increase my rates? Your water utility must justify its proposed rate increase by proving it's necessary to meet increasing operating and maintenance costs.

What can I do to protest the rate increase? You can submit a letter opposing the proposed increase to the PUCT or you can intervene as an active legal participant in the case at the Public Utility Commission.

What is an Investor-Owned Water and Sewer Utility (IOU)? IOUs are private businesses that provide retail water or sewer service. IOUs are not cities, districts, or water supply corporations.

PUCT has to approve rates and service policies of Investor-Owned Water and Sewer Utilities (IOUs) serving customers outside the corporate limits of a city.

Inside city limits, the city has to approve the IOU's rates, unless the city has surrendered its jurisdiction to the PUCT.

Participants in the rate case argue their positions in a legal proceeding. The proceeding often takes months with many rounds of legal filings, discovery and hearings. The process follows these general steps:

• Application - The utility files an application for a rate change with the PUCT that includes evidence the increase is necessary.
• Administrative Completeness - PUCT technical staff and an administrative law judge conduct an initial review of the application.
• Deadline to Intervene - Affected parties must submit a request by a set date.
• Referral to State Office of Administrative Hearings (SOAH) - This independent state agency acts as the court in the rate dispute, collecting evidence and testimony from the requesting utility and intervenors.
• Proposal for Decision - The SOAH judge makes a recommendation whether to grant the rate change to the PUCT Commissioners.
• Open Meeting - The PUCT Commissioners vote on the proposed rate change openly, in a public meeting that is broadcast online.

• Documents related to the case are on the PUCT Interchange.
• Submit your documents on the Interchange Filer System.
• Get email alerts via the PUCT Filing Notification System.

The groups participating in these cases:

• The utility itself,
• the Staff of the PUCT who represent the public interest broadly,
• the consumers affected by the rate change, and
• The Office of Public Utility Counsel (OPUC) represents residential and small commercial consumers as a group.

Note that the PUCT staff and OPUC do not represent specific individual consumers. Individual consumers represent themselves and by attorneys they hire.

Submit comments to the official record using the Interchange Filer System. Comments help inform the PUCT and its staff of the public concerns and to identify issues to be explored.

Customers directly affected by the rate change can take an active part in the legal proceedings. As an intervenor, you can file testimony, conduct legal discovery, and cross-examine witnesses.

Submit a request to intervene using the Interchange Filer System.