Faucet Facts-July-2025

Visit PUCT at the TCEQ’s Public Drinking Water Conference

On August 5 – 6, 2025, the Public Utility Commission of Texas (PUCT) will participate in the Texas Commission on Environmental Quality’s (TCEQ) Public Drinking Water (PDW) Conference. The conference will be held in-person in Austin at the Renaissance Austin Hotel (9721 Arboretum Blvd., Austin, TX, 78759). TCEQ is also offering an online option for attendees.

During the conference, PUCT Staff will be present in the Technical Assistance area to answer questions about PUCT regulation, including utility rate setting, service area matters, and financial and managerial utility fitness. PUCT Staff will also be speaking on Wednesday morning, August 6, about legislative updates affecting water and sewer utility regulation at the PUCT and mapping requirements for applications. Stop by to get more information or to get your questions answered in person. We look forward to seeing you there.

Common Pitfalls to Avoid When Filing IOU Rate Changes

Investor-owned utilities (IOUs) in Texas must adhere to established procedures when submitting rate change requests to the PUCT or the applicable municipality. Failure to comply with these requirements can result in penalties, delays, or public opposition.

Here are six frequent mistakes to avoid:

1. Premature Rate Implementation: Utilities may not charge new rates until approval is granted. Early implementation may trigger fines or mandatory refunds.

2. Incomplete or Inaccurate Applications: All financial data, customer counts, meter sizes, and cost estimates must be up to date and well-documented.

3. Improper Customer Notification: Every affected customer must receive appropriate notice to allow the opportunity to protest or intervene.

4. Incorrect Filing Forms: Rate filing forms must match the utility's classification. Errors in form selection can lead to rejection.

5. Unsubstantiated Rate Increases: Proposed rates must be supported by clear, cost of service expenses and analysis.

6. Final Tariff Review: Check your final tariff at the end of the rate case. Make certain your approved rates appear correctly on the final tariff.

A thorough, accurate filing can help ensure a smooth and compliant rate-setting process.

Sharpen Your Skills: Free Recordkeeping Workshops for Utilities

Is your utility ready for its next rate change? Good recordkeeping is key, and help is on the way!

The PUCT is planning a series of free, in-person workshops for small and mid-sized water and sewer utilities. These sessions will guide you through best practices in:

• Bookkeeping

• Records management

• Compliance

The first workshop will occur in Aldine on October 8, 2025, from 9:00 a.m. to noon at 2909 East Aldine Amphitheatre Dr., Room A, Aldine, TX, 77039. Dates, times, and locations for the remaining workshops coming soon! Don’t miss this free opportunity to boost your confidence with bookkeeping.

Disconnection Rules & Customer Protection

IOUs in Texas must follow strict rules when disconnecting service, ensuring customer protection while maintaining effective utility management. Here is a summary of when disconnection with notice and without notice is appropriate.

Disconnection With Notice

• Provide a 10-day written notice before disconnection.

• Include reason, amount due, disconnection date, and contact information.

• Ensure notices are bilingual if needed. Disconnection Without Notice

• Dangerous conditions.

• Unauthorized use intended to avoid payment (commonly referred to as theft of service).

• Meter tampering (including bypassing, damaging, or altering utility equipment). Best Practices

• Document all notices and communications with the customer.

• Offer deferred payment plans when possible.

• Avoid disconnections during extreme weather, weekends, or holidays, or for disputed charges.

Following these guidelines ensures fair treatment of customers and reduces regulatory risk. For full details, refer to 16 TAC Section 24.167.

Join the Conversation

We value your input! This newsletter is about sharing information and creating a dialogue. If you have questions, feedback, or topics you’d like to see covered, we encourage you to reach out

DUO is committed to helping retail public water and sewer utilities understand, navigate, and achieve regulatory compliance with the PUCT. DUO@puc.texas.gov