Mayors from four North Texas cities met at Garland City Hall Wednesday, Dec. 14 to announce that they have asked the Public Utility Commission to review the water rates with the North Texas Municipal Water District.
Plano Mayor Harry LaRosiliere, Mesquite Mayor Stan Pickett, Richardson Mayor Paul Voelker and Garland Mayor Doug Athas indicated that they had unsuccessfully attempted to negotiate with the NTMWD before appealing to the PUC for a review. These four cities represent 750,000 (60 percent) of the water district’s rate payers.
Because of a 60-year-old contract that the mayors believe is unfair and outdated rate methodology used by NTMWD, Plano has paid $78 million for water not used, Mesquite and Richardson have paid $36 million each and Garland has paid $28 million.
Plano City Manager Bruce Glasscock said during the press conference that the cities are losing “tens of millions of dollars at the expense of taxpayers because the North Texas Municipal Water District’s current rate methodology is outdated and does not incentivize water conservation.”
He also said that they had been trying to correct the inequity of the rates for many years.
“We have actively participated in every possible process to seek a solution that all 13 member cities and the water district could agree upon,” Glasscock said. “But it is evident that due to our lack of bargaining power with the North Texas Municipal Water District, negotiating among ourselves will not result in the much needed changes. Asking the Public Utility Commission for this review is the next step.”
It was indicated that leaving the NTMWD was not a potential solution for the four cities.
The rates being charged are currently based on each city’s highest year of use instead of current actual consumption. Under this system, there is no incentive for water conservation.
There are 13 member cities and by NTMWD rules, each would have to agree to the review. Not all member cities, particularly those that would not see any gain, are in favor of the review. So the four cities had to appeal to the PUC.
In addition to the member cities, there are 34 customer cities that have individual contracts with the NTMWD and some of their effective rates are lower than some of the member cities’ rates.
NTMWD Executive Director Tom Kula expressed disappointment in the four cities’ announcement and added that they have to consider the concerns of the other member cities which include Allen, Farmersville, Forney, Frisco, McKinney, Princeton, Rockwall, Royse City and Wylie.