Resolution to accept PUC ruling in MUD water rate lawsuit

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Don Zimmerman
Posts: 168
Joined: Fri Jan 09, 2015 11:05 am

Resolution to accept PUC ruling in MUD water rate lawsuit

Post by Don Zimmerman »

Dear CM Colleagues,

We've heard considerable public testimony regarding the successful PUC rate case brought against the Austin Water Utility by four wholesale MUD customers, and we've also received information in executive session.
Based on all this testimony and evidence, I recommend the following Resolution.

For backup information please refer to following links:
http://www.austinmonitor.com/stories/20 ... customers/

http://interchange.puc.texas.gov/WebApp ... TEM_NO=342

http://interchange.puc.texas.gov/WebApp ... _TO_STYLE=


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RESOLUTION NO._________________ (DRAFT)

WHEREAS, the City of Austin has opposed four wholesale water customers in the “Petition of the North Austin Municipal Utility District No. 1, Northtown Municipal Utility District, Travis County Water Control and Improvement District No. 10, and Wells Branch Municipal Utility District from the ratemaking actions of the City of Austin and request for interim rates in Williamson and Travis counties” for more than 2 years; and

WHEREAS, the City of Austin has already paid the law firm of Webb & Webb $1,171,000 to represent the City on this case before the Texas Public Utility Commission (PUC); and

WHEREAS, in October 2015, the PUC Commissioners agreed with PUC staff and found in favor of the four wholesale water customers that Assistant Director for Austin Water Utility David Anders told the Austin Monitor would “cost the utility approximately $3 million in lost revenue in this year’s budget”; and

WHEREAS, following the initial ruling, the City of Austin asked the PUC for a rehearing, which on December 17, 2015, the PUC denied the “motion on all points of error because the City of Austin’s motion asserts no new arguments”; however, the PUC did grant numerous motions from the four wholesale customers that may result in the City of Austin having to pay additional money to them; and

WHEREAS, the City of Austin could continue its opposition using the court system, which would be costly and time consuming for all parties involved; NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN:

The City Manager is directed to drop the City’s opposition to the four wholesale customers and make arrangements to pay the four wholesale customers based on the ruling of the PUC Commissioners.
Don Zimmerman
Council Member District 6 (northwest Austin)
Ellen Troxclair
Posts: 40
Joined: Tue Jan 13, 2015 1:26 pm

Re: Resolution to accept PUC ruling in MUD water rate lawsui

Post by Ellen Troxclair »

Councilmember Zimmerman,

Thanks for brining this up. We have also heard about this multiple times during citizen's communication. I think this is worth discussing, either during our next executive session or in the Pubic Utilities Committee.

Thank you,
Ellen
Ellen Troxclair
Council Member District 8
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