City of Waco's Response to Prairie Hill Water Supply Corporation's Interim Appeal of SOAH Order No. 8

Strategic Insights -

The Public Utility Commission of Texas has issued a document in response to an appeal filed by Prairie Hill Water Supply Corporation, challenging the State Office of Administrative Hearings' decision to deny their motion to dismiss the City of Waco's complaint. The City of Waco argues that the Commission has jurisdiction over the dispute and that the Settlement Agreement between the parties cannot override the Commission's authority to regulate retail water service. The Response to Prairie Hill Water Supply Corporation's Interim Appeal presents a detailed analysis of the jurisdictional issues and the standard of review for motions to dismiss.

Key Takeaways:

  • The City of Waco's complaint against Prairie Hill Water Supply Corporation was referred to the State Office of Administrative Hearings (SOAH) for a contested case hearing.
  • Prairie Hill Water Supply Corporation filed a motion to dismiss the complaint, arguing that the Commission lacks jurisdiction over the dispute due to the Settlement Agreement between the parties.
  • The SOAH Administrative Law Judge (ALJ) issued an interim order denying the motion to dismiss, finding that the Commission has jurisdiction over the dispute.
  • The City of Waco argues that the Commission has exclusive jurisdiction over the provision of retail water service by a Texas non-profit water supply corporation and that the Settlement Agreement cannot override this authority.
  • The City of Waco also argues that the Motion to Dismiss fails to meet the Commission's standard of review, as it did not rely on evidence in the record and failed to provide an affidavit stating any facts that support the motion.
  • The City of Waco's Response to the Interim Appeal is timely filed, as the Interim Appeal was filed on June 6, 2025, and the Response was filed on June 13, 2025.

Statistics:

  • The complaint was filed in July 2024 and referred to SOAH in December 2024.
  • The SOAH ALJ issued an interim order denying the Motion to Dismiss on June 2, 2025.
  • The Interim Appeal was filed on June 6, 2025, and the Response to the Interim Appeal was filed on June 13, 2025.
  • The Commission and SOAH rules do not provide any guidance on the standard of review for motions to dismiss, so it is necessary to look to the Texas courts for guidance.

Sources:

  • "Filing of City of Waco's Response to Prairie Hill Water Supply Corporation's Interim Appeal of SOAH Order No. 8"

* Filed: June 13, 2025

* Control Number: 56829

* Item Number: 64

* PUC Docket No.: 56829

* SOAH Docket No.: 473-25-08499