Diving in deeper
The rebate comes from the back payment of roughly $12 million from Quadvest Water & Sewer and the Woodland Oaks Utility district to the SJRA in water use fees, which had been unpaid by the two utility operators out of protest against rising water fees, according to a news release.
Quadvest and Woodland Oaks Utility were part of an 80-member coalition of utility districts and cities known as the Groundwater Reduction Plan, which aims to reduce groundwater use. Members of the GRP are required to pay annual dues to the SJRA for the procurement and management of surface water assets, such as Lake Conroe and the San Jacinto basin.
According to a March 28 news release, the money was distributed by the SJRA to members of the Groundwater Reduction Plan based on prorated water usage in 2022-23.
Funds not spent in the rebate will go toward paying down bond debt from 2012, which funded the construction of the SJRA’s surface water treatment plant and associated pipeline installations.
“Paying down the debt will benefit the GRP participants financially as it could mean a reduction in rates for all participants,” the news release states.
What they’re saying
“We want to give this money back to [the participants] through the budgetary process,” SJRA General Manager Aubrey Spear said at the GRP Review Committee meeting March 25. “I feel our staff and our board members want to do the right thing and apply these funds to participant’s accounts.”
“In my time on the board of directors, this is the first time we have provided a refund,” SJRA board President Ronnie Anderson said. “I am proud that we are able to return this money to our customers.”
How we got here
SJRA, Quadvest Water & Sewer, Woodland Oaks Utility and the cities of Conroe and Magnolia initiated lawsuits against each other regarding water use rates in 2017. The lawsuits were settled in 2020 and 2022 respectively, and ruled in favor of SJRA, which required Quadvest and Woodland Oaks Utility to pay back roughly $12 million in unpaid fees.
The SJRA is one of 10 river authorities created by the state Legislature to develop water supply and wastewater management in the San Jacinto River Basin, excluding Harris County, according to previous reporting.