SUBJECT:
Leon Springs Utility Company, Inc. Rate Authorization Request
SUMMARY:
On September 12, 2013, City Council approved Ordinance 2013-09-12-0639 that that allows the Texas Commission on Environmental Quality (TCEQ) to exercise exclusive jurisdiction over the Leon Springs Utility Company's rates, operations, and services within the City of San Antonio. TCEQ has requested that the Ordinance be revised to allow it to exercise jurisdiction over all privately owned water and wastewater utilities within the city limits. Council had previously approved this request; however, the language in the signed Ordinance only indicated that the Council had allowed the TCEQ to exercise authority over the Leon Springs Utility Company.
BACKGROUND INFORMATION:
A law firm representing the Leon Springs Utility Company contacted City staff regarding a proposed rate adjustment by the utility. The attorney inquired whether COSA desired to retain jurisdiction over the rate adjustment process or if it would elect to have the Texas Commission on Environmental Quality (TCEQ) exercise that jurisdiction. Section 13.042 of the Texas Water Code states that the governing body of a municipality by ordinance may elect to have the TCEQ exercise exclusive jurisdiction over the utility rates, operations, and services of utilities, within the incorporated limits of the municipality.
Leon Springs is a privately-owned wastewater utility that serves approximately 960 residential customers in the Dominion development and 10 commercial customers. According to the company, it has not adjusted its rates since July 1996 and it is proposing new rates that would be equal to those currently charged by the San Antonio Water System (SAWS). An average residential Leon Springs customer currently pays $19.45 for 6,000 gallons of wastewater and the current SAWS charge is $26.24 for this volume of wastewater. The company indicated that it collects approximately $460,000 per year in wastewa...
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