Dear RCH Members,

I would like to provide an important update regarding the ongoing proceedings related to the City of McLendon Chisholm's application for a Certificate of Convenience and Necessity (CCN). Recently, the City of McLendon Chisholm requested and was granted an extension to address deficiencies in their application. The new filing deadline is January 16th, 2024.  Below is a summary of RCH’s response. The full document can be found at: 

https://interchange.puc.texas.gov/Documents/55623_23_1352838.PDF

In a letter addressed to the Honorable Susan E. Goodson, Administrative Law Judge at the Public Utility Commission of Texas (PUCT), RCH Water Supply Corporation's legal counsel articulated several concerns about the City's application. The letter highlighted that the City's application had faced persistent deficiencies and legal shortcomings from its initial filing. Despite multiple opportunities to rectify these issues, the City's filings continue to fall short of the legal requirements to proceed with their application.

Key concerns outlined by RCH include:

Failure to Meet Legal Requirements: RCH contends that the City of McLendon Chisholm filed its application prematurely and did not adhere to the mandated 180-day waiting period after issuing its Notice of Intent in July 2023. Furthermore, substantial changes to the requested areas in the application raise questions about the validity of the original notice.

Lack of Infrastructure Details: The City's application lacks essential information about its ability to provide a reliable water source and operate a water system. This absence of details on a source of water, treatment facilities, storage tanks, and other necessary infrastructure is a significant concern.

Inadequate Water Supply: The City's application fails to demonstrate how it will secure an adequate and lawful water supply. This is a crucial requirement under Texas law and regulations.

Despite the City's request for an extension and modifications to its application, RCH maintains that the deficiencies in the application render it untenable. RCH has expressed concern that allowing the application to proceed in its current state would lead to errors and appeals, resulting in unnecessary expenses. This undue financial burden affects all RCH members and has a doubled impact on RCH members who are residents of McLendon Chisholm.

As a result, RCH Water Supply Corporation respectfully urges the Public Utility Commission of Texas to dismiss the City of McLendon Chisholm's application.

RCH will continue to monitor the City’s application and work to maintain its members' best interests. Your support is greatly appreciated as we work diligently to ensure our community receives quality water services.

Sincerely,

David Naylor

RCH Board President