Final Arguments Heard in CLWSC Rate Case. Hearing Held on Rate Case Costs.

PRLog (Press Release) - Aug. 31, 2012 - On August 22nd & 23rd, the Coalition for Equitable Water Rates (CEWR) presented its arguments in a formal hearing regarding the costs of the rate case for the massive 71% water rate increase proposed by Canyon Lake Water Service Company (CLWSC). The involved parties provided facts and recommendations to the Administrative Law Judges (ALJs) to aid in the determination as to whether CLWSC should be able to collect rate case costs from ratepayers. CLWSC’s ratepayers are now awaiting a final rate order by the Texas Commission on Environmental Quality (TCEQ). The final order should be issued after the TCEQ receives and reviews a Proposal For Decision (PFD) from the Administrative Law Judge(s) presiding over the case.

If in the final rate order CLWSC is not awarded at least 51% of their requested increase, the utility may not recover their cost of defending an appeal to a rate increase by directly billing the ratepayers in future water bills. Of the approximately $1,000,000 spent by CLWSC on the case, both the TCEQ and CEWR recommended to the ALJs that CLWSC not be allowed to collect any money from the ratepayers to pay their incurred costs from the rate case.

Final recommendations made to the ALJs on allowing Rate Case Costs to be collected by CLWSC:

             CLWSC/ SJW recommended ~ $1,015,000
             TCEQ recommended                 $ 0     
             CEWR recommended                $ 0
                                     
(To date, CEWR has spent approximately $135,000 appealing the proposed 71% rate increase.)


What Happens Next?

December 2012 - Administrative Law Judges will submit their Proposal For Decision (PFD) to full TCEQ commission.

February 2013 - TCEQ issues final rate order and directs refund or surcharge be provided to ratepayers.

         - if less than 38% increase, each ratepayer receives a refund for the difference from Nov ’10 to the effective date of the rate order.

         - if more than 38%, CLWSC increases billings from date rate increase approved.