What is happening?
On August 1, 2024, Corix Texas filed a request for a system improvement charge (“SIC”) to recover costs from investments and improvements made to its water and wastewater systems. The SIC is based on a customer’s meter size and appears on customer bills as a separate charge from the monthly usage and base fees. The parties to the case have reached a settlement regarding the SIC rates, which will become effective for bills issued on and after April 1, 2025.
Who participated in the filing?
Corix Utilities (Texas) Inc.
Who will see a change due to this rate filing?
This rate filing affects all water or wastewater customers of Corix Texas, except Mitchell County schools.
When were customers notified of these rates?
Customers received a notice in the mail last August, when the application was filed. Customers are also notified via a bill message on their April 2025 bills, except for the ~300 customers billed by Aqua WSC who will instead receive a postcard notice.
How much are the SIC rates?
The system improvement charge for a residential water customer with a 5/8” meter is $20.26 each month. The proposed system improvement charge for a wastewater customer is $16.05 each month per connection.
Customers should refer to the Notice of Proposed System Improvement Charge letter mailed out August 1, 2024, about the potential effect to their monthly bill.
The proposed SICs are as follows:
METER SIZE WATER SIC
5/8" Meter Customers $20.26
5/8" x 3/4" Meter Customers $20.26
3/4" Meter Customers $30.39
1" Meter Customers $50.65
1.5" Meter Customers $101.30
2" Meter Customers $162.08
3" Meter Customers $303.90
4" Meter Customers $506.50
6" Meter Customers $1,013.00
8" Meter Customers $1,620.80
10" Meter Customers $2,329.90
12" Meter Customers $4,355.90
Per connection (wholesale) $20.26
Per LUE (RV Parks) $20.26
METER SIZE SEWER SIC
Per LUE/Connection/Dwelling Unit $16.05
What is the reason for these new SIC rates?
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 system improvement charge allows Corix Texas to begin recovering those investments through rates.
Why are upgrades necessary in Texas?
The process of turning groundwater and surface water into safe water for your home is complex and goes largely unseen. Unlike electricity, which you can see coming to your home through power lines, water is processed and delivered out of sight and typically underground.
The American Society of Civil Engineers (ASCE) rated Texas’ drinking water infrastructure a C- and wastewater infrastructure a D. According to the ASCE 2021 Texas Infrastructure Report Card, “Texas’ commitment to fund safe, adequate, and reliable drinking water is critically important for continuing growth and prosperity." That is where we come in to invest in the future of your water.
Didn’t the company just increase rates last year?
Yes, Corix Texas’s rates were last set on June 13, 2024 based on Corix Texas’s 2021 costs, which do not include the millions of dollars invested since then on system improvements.
Has Corix Texas included SIC rates on bills previously?
No, this is the first time Corix Texas is proposing a system improvement charge.
When will the rate change take place?
The new rates are effective for all bills issued on and after April 1, 2025.
Are rates for customers in this utility higher than customers served by other utilities?
Utility rates are different for different types of utilities. Corix Texas is an investor-owned utility, as opposed to being a function of a local government, a Municipal Utility District (MUD), or a water supply corporation.
As an investor-owned utility, there are certain costs, such as upgrading and replacing older system components in rural areas not served by municipal utilities as well as taxes that a city-owned utility does not have to pay.
Additionally, a private utility can only recover its capital investments through rates. A city-owned utility, and MUDs, can recover such costs through taxes that are separate and in addition to their customers’ water bills.
As a regulated company, Corix Texas is compelled to charge rates that are set by the Public Utility Commission of Texas (PUC) and fair to all customers.
How are utility rates determined?
Utility rates are set by the PUC and calculated based on the cost of operating and maintaining the water and wastewater systems, supplies and materials, as well as capital expenditures for infrastructure, such as pipelines, treatment facilities, pumping stations, storage tanks, equipment and buildings.
Daily operating costs include but are not limited to; chemicals; laboratory testing; electricity; fuel; and the salaries of technicians, field operators, administrative personnel and others who help run the water utility.
What will happen if I am unable to pay 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.