Pflugerville council makes moves to acquire Windermere water

Windermere is attempting to merge with Monarch Utilities—a subsidiary of SouthWest Water Company—and, as such, has been party to the Monarch rate increase case that is currently before the Texas Commission on Environmental Quality.

City spokeswoman Terri Waggoner said the goal was to step in and acquire the company.

"We have mentioned it to Windermere and SouthWest water, and so far that has not been well received," she said. "We're ultimately trying to take over."

The resolution authorizes the use of eminent domain if a sale cannot be negotiated, but Waggoner said that would be a last resort.

Eminent domain would allow Pflugerville to force a takeover of the Windermere utility system in city limits. City Attorney George Hyde said that for Pflugerville to pursue such an avenue, the city would have to essentially show that there was a public necessity to take over the water system.

In response to the news of the resolutions, SouthWest Water Company Communications Manager Janice Hayes issued the following statement:

"Regarding the proposed STM and rate increase, we recently presented a mutually beneficial resolution to the City of Pflugerville. On February 15, the company proposed a settlement for Windermere Utility that we believe is fair and reasonable. However, it appears the City of Pflugerville's leadership is going in another direction. We are still open to working with the City of Pflugerville on a settlement that is in the best interest of its citizens and our customers."

Wade has repeatedly said that the proposed rate increase threatens property values, public safety and the general well-being of the city.

"Maintaining low water rates and efficient water supply directly affects economic development in Pflugerville," Wade said in a statement. "The continued issues and rate hikes in the Windermere service area are reprehensible and detrimental to the City's interests."

Pflugerville has been a party to both Monarch's sale-transfer-merger case and the rate increase case—both of which affect a number of water systems throughout the state—since TCEQ took up the case in the fall.

Pflugerville initially voted to deny the rate increase in October, but TCEQ has final authority on any rate increases on appeal. That case is on hold pending the outcome of the sale-transfer-merger (STM) case that will determine if Monarch is able to purchase Windermere, among other water systems throughout the state.

Since then, the Pflugerville City Council has been adamant that it would do what it takes to prevent the rate increase.

"The City Council does not see the current water issues in Pflugerville as Windermere specific, as the current Sale Transfer Merger and Rate Case and current water delivery issues are a citywide problem," Mayor Jeff Coleman said in a statement.

"If the merger happens, it will negatively impact a large portion of the western side of the city and the negative implications will flow east," he said.