Wholesale water customers’ appeal update

The Graham City Council on Thursday approved the creation of an ordinance which lowers the wholesale water rate, pursuant to data obtained from the new water meters throughout the year and addressing a pending appeal filed by the city’s wholesale customers to the Public Utility Commission of Texas.

In November 2018, the city of Graham approved Jay Joyce, President of Expergy, to conduct an independent water rate study. The plan presented via documentation to the city council in November by Joyce, had four tasks which were to discuss the initial policy direction and gather data, examine utility production and customer usage patterns, develop existing and future costs of service and finally providing the city with a rate recommendation based on the cost of service.

The wholesale customers for the city are Fort Belknap Water Supply Corporation, Graham East Water Supply Corporation, the City of Bryson and the City of Newcastle, with Graham serving as their home rule city which owns and operates wholesale and retail public water utilities. City Manager Brandon Anderson said at the Thursday city council meeting the city’s wholesale customers received the results of the study in February which suggested the change.

“In that rate study it recommends, after accurate numbers over the year, that the wholesale looks like it should be $5.52 (per 1,000 gallons used),” Anderson said. “I am recommending for the next billing cycle that we consider a rate of $5.52 (per 1,000 gallons used).”

The city’s current water rate ordinance for wholesale customers is a flat rate of $6.35 per 1,000 gallons used. 

For the rest of the story see the Saturday, April 6 edition of The Graham Leader.