Possible water district contract changes could cause Frisco to pay more for water


Editor's note: This article has been updated to include a statement from the city of Plano. 


A possible Public Utility Commission of Texas ruling could lead to a change in the North Texas Municipal Water District’s nearly 30-year-old water contract with its member cities, potentially costing the city of Frisco more money when new infrastructure is needed as the city grows.


Since 1988, McKinney and 12 other member cities have abided by an NTMWD contract that requires them to pay for the same amount of water each year based on the highest amount of water they used in any single year in the past, regardless of whether they ever use that much water again—a structure district officials say is necessary to pay for fixed costs, infrastructure, future projects and more.


Although most of the member cities have balked at steadily increasing water rates from the NTMWD, meetings last year with the member cities to discuss amending the contract did not result in any changes because the cities could not come to a consensus about how the contract should be changed, according to Janet Rummel, public relations manager for the NTMWD.


In December, the four largest contributing member cities—Plano, Garland, Mesquite and Richardson—challenged the contract by asking the PUCT to decide whether the contract is fair to all its member cities.


Cities, such as Frisco, that still have a significant amount of development left before build-out are concerned that major changes to the contract could cost them more money in the long run.


The city has filed to be a part of the case to oppose the effort to change the contract and protect the city’s interests, Frisco Mayor Maher Maso said.


Possible water district contract changes could cause Frisco to pay more for water“The contract is valid. The petition is without merit,” Maso said. “The four petitioner cities are trying to change their unconditional commitment to pay a proportionate share of NTMWD’s annual revenue requirement. The contract is not contrary to the public interest.”


Officials from the cities of Plano, Garland, Mesquite and Richardson disagree.


“We are losing tens of millions of dollars at the expense of our taxpayers because the North Texas Municipal Water District’s current rate methodology is outdated and does not incentivize water conservation,” Plano City Manager Bruce D. Glasscock said in a statement released shortly after the PUCT filing.


PUCT spokesperson Terry Hadley said consumer groups occasionally petition the PUCT regarding water utility rates.


“If a settlement among parties cannot be reached and the petition meets legal requirements, an evidentiary hearing can be held to be followed by a [PUCT] decision by the three commissioners,” Hadley said.


Rummel said the NTMWD is open to continuing contract discussions while the PUCT considers the request. She said any reduction in one city’s share of the system costs would result in increases to the other cities’ share to maintain and operate the system.


Rummel said cities that use less water than they purchase receive a rebate for costs not incurred for treatment and delivery, such as chemicals and power. However, the cities of Plano, Richardson, Garland and Mesquite said NTMWD’s contract is discriminatory, does not take water conservation into account and is not in the public interest.


Lindsey Juarez contributed to this story.