Dear RCH Members,

I want to inform you about recent developments concerning the City of McLendon Chisholm's actions involving our corporation. As many of you may be aware, the City submitted a Request for Information (RFI) to the Public Utility Commission of Texas (PUCT), targeting RCH Water Supply Corporation. This request sought extensive details about our operations, customers, and infrastructure.

In response to this RFI, RCH has filed objections and a motion for a protective order with the PUCT. Our objections are grounded on several key points:

• Prematurity of the Request: The City's RFI was submitted before their application was considered complete by the Commission, making their request for information premature.
• Non-Party Status: RCH is not yet a party to this proceeding, and as such, the City has no basis for serving us with such a request.
• Irrelevance and Burden: The information sought by the City largely pertains to internal operations and specifics of our infrastructure, which are not relevant to the City's application for a Certificate of Convenience and Necessity.
• Overreach in Discovery: The City's RFI represents an overreach in the discovery process, seeking detailed and sensitive information beyond the scope of what is necessary for their application.
• Protection of Member Information: The request for a detailed list of our customers and their service addresses is particularly concerning. We are committed to protecting the privacy and security of our members' information.
• Operational Integrity: The City's demands for detailed operational, financial, and infrastructural information without proper authority or relevance to their application threaten the operational integrity and security of our water supply system.
• Lack of Justification: The City has not provided adequate justification for why such extensive information is needed, raising questions about the motives and potential misuse of the requested data.

Our motion for a protective order emphasizes that RCH should not be compelled to assist the City in its attempt to take over our water system. This move by the City, despite clear deficiencies in their application and a lack of preparedness to manage a water utility, raises significant concerns.

It is unclear to the RCH Board of Directors why the City of McLendon-Chisholm continues to pursue this course of action. The evidence thus far suggests a lack of competence in managing such a critical utility, and the financial burden of this endeavor will ultimately fall on the city's taxpayers. RCH members living inside the City are paying double for McLendon Chisholm’s relentless pursuit, lacking in planning and execution, resulting in wasted funds that could be spent for the betterment of the community.

The full filings can be read here:
https://interchange.puc.texas.gov/Documents/55623_28_1362206.PDF

https://interchange.puc.texas.gov/Documents/55623_29_1362210.PDF

We are committed to transparently communicating these proceedings with you, our valued members, and ensuring the continued provision of high-quality water services. We will keep you updated on further developments and stand firm in our resolve to protect our corporation's and members' interests.

Thank you for your ongoing support.

Sincerely,

David Naylor

Board President.