What is a System Improvement Charge?
A system improvement charge (SIC) allows regulated water and wastewater utilities like ours to recover the cost of infrastructure investments. Since Corix Texas’ last comprehensive rate application, the company has invested more than $18 million in system improvements across the state to ensure safe and clean drinking water as well as proper treatment and disposal of wastewater. The SIC allows Corix Texas to begin recovering those investments through rates and the amount charge is based on a customer’s meter size and appears on customer bills as a separate charge from the monthly usage and base fees.
When does the new charge go into effect?
The proposed system improvement charge is a flat rate that will be added to your monthly bill once approved by the Public Utility Commission (PUC). The PUC is charged with ensuring that Corix Texas’ rates are fair and accurate. The Office of Public Utility Counsel (OPUC) represents customers in cases such as these. A utility requests rates and those rates are ultimately set by the PUC. Any new rates would not go into effect until after the PUC has reviewed and approved Corix Texas’ proposal.
How much will the average bill increase?
The proposed system improvement charge for a residential water customer with a 5/8” meter is $22.48 each month. The proposed system improvement charge for a wastewater customer is $17.85 each month per connection. Customers should refer to the letter they received in the mail for the potential effect to their monthly bill.
Didn’t the company just request a rate increase earlier this year?
Yes, you received a notice at the end of January regarding a request for a rate increase; however, Corix Texas withdrew that request for a rate increase and is instead seeking to begin recovery of its investments in its systems through the current request for a System Improvement Charge.
By PUC rule, we are only allowed to file a SIC application at certain times during the year, so we are limited in the timing of our filing. Corix Texas current rates were set based on costs incurred mostly in 2021 that do not include the millions of dollars invested since then on system improvements.
If you need assistance with paying this new rate:
Customers can apply for bill assistance through the Low Income Household Water Assistance Program (LIHWAP). LIHWAP is the first-ever federal water program developed to help low-income households access and maintain water and wastewater services through bill payment assistance. More information for customers in Texas can be found at: https://www.tdhca.texas.gov/
Assistance is also available via Texas 211, which is a program sponsored by the Texas Health and Human Services Commission and may be able to direct a customer in need to possible funding sources. They can be reached by dialing 2-1-1 or by visiting their website at 211texas.org.