April 1, 2026
AUSTIN — The State Office of Administrative Hearings (SOAH) has granted a joint motion by Texas Water Utilities (TWU), the Office of Public Utility Counsel (OPUC), and Commission Staff to pause hearings about the case as the settling parties – excluding intervenors – prepare proposed settlement documents. That means the rates which TWU has proposed will go forward, pending any adjustments that are revealed in future filings.
The SOAH order, issued March 31, requires TWU to file status reports beginning May 1 and every 30 days thereafter.
This case was about Texas Water Utilities’ request to recover the costs of new infrastructure projects outside of a full rate case. Intervenors and PUC Staff originally raised questions about affordability, customer impact, documentation sufficiency, and whether certain plant additions risk over‑recovery or double recovery. Intervenors, OPUC, and Staff also previously scrutinized whether TWU’s records and asset‑retirement information were adequate to ensure transparency and prevent customers from paying twice for the same facilities.
Intervenors Say They Were Sidelined
This development follows a ruling in which SOAH struck significant portions of customer intervenor testimony, limiting the scope of evidence that would have been considered today and tomorrow.
“The proposed settlement does not resolve the Intervenor Representatives’ concerns,” wrote Anna Miller and Tyler Croft, the appointed representatives for intervenors across the state. “A reduced increase is still an increase, and the proposed settlement would still impose additional charges on affected customers.” They made it clear that they are not joining the proposed settlement discussions and continue to contest issues including affordability, customer impact, documentation sufficiency, and potential over‑recovery.
Miller and Croft cited “disputed factual and legal issues… including but not limited to affordability and customer impact; overrecovery and potential double recovery; overlap with plant or costs previously reflected in rates; sufficiency and organization of support for claimed eligible costs.”
Although the joint motion states that TWU, OPUC, and Staff have made “sufficient progress” toward settlement, intervenors were not included as parties to the motion and have not agreed to any settlement terms. Miller and Croft said they will continue to preserve all disputed issues for Commission review.
Fair Water Texas Responds
“Intervenors have been active participants throughout this case, and yet the joint motion to abate was filed without their involvement,” said Joe Gimenez, founder of Fair Water Texas. “Customers deserved a seat at the table. While Fair Water Texas was not an intervenor in this case, it has watched it closely and applauds Anna Miller and Tyler Croft for their representation of other intervenors across Texas.”
Next Steps
With the hearing cancelled, TWU, OPUC, and Staff will prepare settlement materials for eventual consideration by the Commissioners. The Intervenors will continue to monitor developments and advocate for transparency, customer protection, and meaningful participation in any settlement process.
