On August 1st, 2022, Corix Utilities Texas (Corix) filed a rate change request with the Public Utility Commission of Texas (PUC).
We understand no one likes rate increases, and we make every effort to control operating expenses while maintaining safe and reliable essential services. Your rates, however, were last adjusted in September 2021, and since then, over $11 million in needed upgrades were completed and are providing benefits to customers. A rate increase is now needed to:
- Fund ongoing operations
- Finance needed infrastructure improvements
- Maintain compliance with federal, state, and local regulations
The previous rates did not reflect rising costs from increased investment, inflation, and compliance with stricter regulatory and environmental requirements.
New Rates and Your Bill
New rates are effective May 28, 2023, and can be found on the Rates & Tariffs Page. These rates will be reflected on your June bill. The table below shows a comparison of an average water and sewer bill.
As the rate change occurred in the middle of a billing cycle, you may see two separate base charges and two separate volumetric charges on your bill. These may include:
- Purchased Water Passthrough Surcharge – previously these costs for our raw water were recovered via base rates and are now being recovered via surcharges, as directed by the PUC.
- Rate Case Surcharge – these costs are necessary to recovery the expenses associated with rate case filings. The current rate case may yield an additional surcharge, which is unknown at present.
New Consolidated Regions
Existing water and wastewater rate regions will be consolidated into single water and wastewater rate regions; except for: Gun & Rod Water, Lometa Wastewater, Ridge Harbor Wastewater. These three rate regions will move towards full consolidation in two steps – within the current filing and as part of a future filing.
Consolidating regions, or rate leveling, is common in the utility industry. It lets a utility spread costs over a larger customer base, which results in smaller, incremental rate increases over time to avoid sharp increases. Levelized rates benefit all Corix customers and protect smaller systems from bearing the cost of large infrastructure investments.
About the Rate Change Request
Utility rates are based on a thorough cost, operations, and quality of service review by the PUC and the Office of Public Utility Counsel (OPUC). New rates were based on expense and infrastructure investment levels as of March 31, 2022.
As outlined in the rate review process established by the PUC and laid out in TX statutes, new rates will take effect on May 28, 2023. The deadline for the PUC to issue an order on the rate request is May 28, 2023. Without a ruling from the PUC, the requested rates are deemed approved.
- Corix followed the rules of the PUC and presented evidence and data to support the rate change request. This information was provided in the filing, through data requests issued by the other parties and a formal hearing in which a judge approved interim rates at 100% of the request.
- In response to interim rates, the PUC filed an appeal requesting Corix delay implementing interim rates, which we agreed to. After this delay, we are now moving forward with implementing permanent rates as requested in our application.
Details of the rate change request can be found on the PUC’s website, at https://bit.ly/CUTXrates. Interested parties can obtain more information directly from Corix at askcorixtexas@corix.com or the PUC at (512) 936-7000.
Frequently Asked Questions
Why did Corix request a rate change?
It is well-accepted that water and sewer infrastructure across the country is aging and in need of significant investment to maintain essential services and address stricter regulatory and environmental concerns. Many of our systems are reaching the end of their useful life and must be replaced, rehabilitated, or upgraded to avoid system failures and meet rigorous compliance standards. Our operating expenses have also increased due to inflation, rising land values and taxes.
What infrastructure investments have already been made?
Since the last rate case, approximately $11 million has been invested to improve and upgrade community water and sewer infrastructure. These comprise numerous minor and major (below) projects, and are not reflected in current rates.
What was the process to review and approve Corix’s rate change request?
All requests for rate changes are audited by the PUC and OPUC. This includes a full review of Corix’s operating and financial data. These parties provide recommendations to the Commission, which then holds public hearings to arrive at a final order. In this case, the PUC did not issue a final order by the statutory deadline, so our requested rates were implemented effective May 28, 2023.
Since the PUC could not meet the deadline, will you consider delaying the new rates?
Corix has great respect for the regulatory process and followed all requirements to support a transparent ratemaking process. Our rate request was based on our financials as of March 2022, well over a year before the rate change went into effect. Further delay would go against the ratemaking process and could hamper our ability to fund operations and additional investments needed to support services to customers. We remain confident our rates are necessary and justified.
Can I dispute the rate change?
The period for intervention in the filing has passed. Should the PUC continue to review the case, already established interveners will have the opportunity to file testimony. If the rate case continues, you can follow its progression at the links provided above. Ratepayers wishing to file a protest can do so using the PUC Protest Form.
What options are there for customers having difficulty managing their utility bills?
We offer two payment options for customers not able to stay current on their utility bill.
- Deferred Payment Arrangement: lets customers pay a balance in installments over future billing.
- Payment Plan: lets customers make a specified payment by a specified date, e.g., agreeing to pay a balance ten days past a bill’s due date.
Please contact Customer Service to discuss these options. No customer who is current with one of these arrangements will be disconnected.
Corix also participates in the Federal Low Income Household Water Assistance Program (LIHWAP), administered through the Texas Department of Housing and Community Affairs (TDHCA) and the Texas Utility Help Program. These programs can help eligible customers behind on their water and sewer bills or at risk of disconnection. Please visit their websites for eligibility requirements and how to apply.
Still have questions?
Should you have questions about your new rates, please email us at askcorixtexas@corix.com.