Aqua Texas's Response to Public Utility Commission of Texas's Inquiry

Strategic Insights -

Aqua Texas, Inc., a leading water utility company in Texas, has responded to the Public Utility Commission of Texas's inquiry regarding its Southeast Region public water systems that reflected a negative line loss for the 2024 True-up period. The company has provided detailed explanations for each system's negative line loss, citing various factors such as metering issues, interconnections between systems, and the need for a unified rate division. Aqua Texas has also clarified the Regional Pass-through Gallonage Charge Adjustment, stating that it is not applicable to the current proceeding.

Key Takeaways:

  • Aqua Texas's line loss is determined by water production minus billed water consumption, but this approach can be inaccurate without understanding system-specific characteristics.
  • The company's regional line loss analysis is challenging due to interconnections between systems and metering issues at some water sources.
  • Aqua Texas interconnects its water systems to improve system reliability and redundancy of supply, which must be considered in any regional line loss analysis.
  • The company manages its systems as part of a unified rate division, pooling operational and capital resources to maximize efficiency across all service areas.
  • The American Water Works Association (AWWA) cautions against applying uniform targets across all utilities when setting goals and targets to reduce apparent and real losses in a water utility.
  • Aqua Texas recommends that line loss be summarized by operational division to better assess overall water loss management.

Statistics:

  • The total number of public water systems in Aqua Texas's Southeast Region is not specified in the document.
  • The percentage of systems that reflected a negative line loss for the 2024 True-up period is not provided.
  • The Regional Pass-through Gallonage Charge Adjustment is not applicable to the current proceeding, as it was first approved in Docket 54810.
  • The effective date of the Regional Pass-through Gallonage Charge Adjustment is January 25, 2024.
  • The pass-through language utilized by Aqua Texas in its Southeast Region Water Utility Tariff is found in Appendix D, which was approved in Docket No. 54810.

Sources:

  • Application of Aqua Texas, Inc. For 2023 True-Up Report and Pass-Through Gallonage Charge for Its Southeast Region, Docket No. 56299
  • Application of Aqua Texas, Inc. for 2023 True-Up Report, Pass-Through Rate Change, and Revision to True-Up Provision for Its Southeast Region , Docket No. 54810, Notice of Approval (Jan. 9, 2024)
  • Application of Aqua Texas, Inc. for 2023 True-Up Report, Pass-Through Rate Change, and Revision to True-Up Provision for Its Southeast Region , Docket No. 54810, Stamped Approved Tariff at Appendix D (Jan. 25, 2024)