Representatives from each of the district’s 13 member cities signed an amended wholesale water services contract Oct. 29 at the district’s headquarters in Wylie. A separate agreement approved by the North Texas Municipal Water District and its member cities will settle the wholesale water rate cases that are pending before the Public Utility Commission of Texas.
Those cases came about after the cities of Plano, Richardson, Garland and Mesquite argued that under the previous contract, they had paid a combined $275 million in recent years for water their residents and businesses did not use.
The new agreement includes an updated allocation method developed by the cities. It will gradually adjust the annual water commitments for each city over the next eight years to more closely align with their historical water use. Then in 2029, that allocation method will move to a combination of the new annual minimums and actual water used. Beginning in 2033, the annual minimum for each member city will be based on a five-year rolling average of actual consumption.
“This document is a pledge to continue our efforts for the benefits of our cities, customers and citizens,” said Larry Parks, president of district’s board of directors. “We celebrate this commitment to each city represented."
As cities set their own water rates for their citizens, the new contract structure will have varying effects on consumer water bills.
Parks said the agreement was the culmination of thousands of hours of work over a period of five years. North Texas Municipal Water District interim Executive Director Rodney Rhoades said the district looks forward to a fresh start in its partnership with its member cities.
The water district’s other member cities are Allen, Farmersville, Forney, Princeton, Rockwall, Royse City and Wylie. In total, the water district serves 80 communities with a population of over 1.8 million residents, Parks said.