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Public utilities

CSWR-Texas Utility Operating Company Requests Expedited Referral to SOAH for Acquisition and Initial Rate Approval

Strategic Insights

— 2 min read

Austin, TX-based CSWR-Texas Utility Operating Company (CSWR-Texas) has submitted a request for expedited referral to the State Office of Administrative Hearings (SOAH) for the acquisition of distressed water systems and the implementation of initial rates. The company seeks to acquire facilities and customers from Howard Water Supply Corporation dba Howard Water Coop and amend its Certificate of Convenience and Necessity No. 13290 in Ellis County, Texas.

CSWR-Texas intends to invest approximately $300,000 in improvements and repairs to the acquired system to resolve compliance concerns. The company also requests the approval of initial rates consistent with its existing consolidated water rates, which were approved on June 13, 2024, in Docket No. 54565. The request is expected to lead to a lowering of rates for most customers.

Key Takeaways:

  • CSWR-Texas has filed an application with the Public Utility Commission of Texas (Commission) for approval of the sale, transfer, or merger of facilities and certificate rights in Ellis County, Texas.
  • The application seeks approval to acquire facilities and customers from Howard Water Supply Corporation dba Howard Water Coop and amend CSWR-Texas's Certificate of Convenience and Necessity No. 13290.
  • CSWR-Texas intends to invest approximately $300,000 in improvements and repairs to the acquired system.
  • The company requests the approval of initial rates consistent with its existing consolidated water rates, which were approved on June 13, 2024, in Docket No. 54565.
  • The request is expected to lead to a lowering of rates for most customers.
  • CSWR-Texas has ten pending sale, transfer, or merger (STM) applications filed pursuant to Texas Water Code (TWC) § 13.3011, involving eight of which parties have formally contested or indicated intention to contest the implementation of initial rates.
  • CSWR-Texas has requested or will shortly request a hearing and referral to SOAH in each of the eight pending proceedings.

Statistics:

  • CSWR-Texas intends to invest approximately $300,000 in improvements and repairs to the acquired system.
  • The company has ten pending STM applications filed pursuant to TWC § 13.3011.
  • Eight of these proceedings have either formally contested or indicated intention to contest the implementation of initial rates.
  • Initial rates for the acquired system are expected to be consistent with CSWR-Texas's existing consolidated water rates, which were approved on June 13, 2024, in Docket No. 54565.

Sources:

  • "APPLICATION OF CSWR-TEXAS UTILITY OPERATING COMPANY, LLC AND HOWARD WATER SUPPLY CORPORATION DBA HOWARD WATER COOP FOR SALE, TRANSFER, OR MERGER OF FACILITIES AND TO AMEND CSWR-TEXAS UTILITY OPERATING COMPANY, LLC'S CERTIFICATE OF CONVENIENCE AND NECESSITY IN ELLIS COUNTY"
  • "Texas Water Code (TWC) § 13.3011"
  • "Commission Staff's Response to Order No. 10 at 5 (Sept. 9, 2025)"

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