ADMINISTRATIVE LAW JUDGE FINDS MCLENDON CHISHOLM' S NOTICE OF INTENT DEFICIENT, AND MOTIONS TO DISMISS

Dear Valued RCH Members,

I am reaching out to share a critical update concerning the ongoing situation with the City of McLendon Chisholm’s attempt to obtain control over portions of the RCH System inside the City limits. As your Board President, it is my duty to keep you informed about matters that directly impact our community and the essential services we depend on. You may recall that I and others encouraged the City to pause its efforts so that unnecessary time and expense would not be incurred.  That did not happen.

Recently, the Administrative Judge for the Public Utility Commission of Texas issued Order No. 8 in response to the City of McLendon Chisholm's application for a Certificate of Convenience and Necessity, which sought to take over portions of the RCH system inside the City limits.  RCH had raised numerous deficiencies in the City’s Application and filings.  The Judge’s order found the City's Application significantly deficient on multiple fronts, leading to a recommendation for dismissal of their application.

Key Points from the Order:

• The City's notice of intent, primarily communicated via email, failed to meet the legal requirements for written notification.
• The notice did not adequately identify the service area or provide necessary details about the intended utility service.
• There was a lack of clarity regarding the municipal ordinance or action that supported the City's application, making it difficult for meaningful negotiations to take place.

This ruling highlights a concerning pattern of oversight by the McLendon Chisholm City Council and a disregard for the established procedures that govern such critical transitions. It also underlines the potential for unnecessary and wasteful expenditure of taxpayer and RCH member money on a takeover bid that has now been deemed senseless and unjustifiable.

In light of these developments, I strongly urge the City of McLendon Chisholm to cease its pursuit of portions of our water utility. This endeavor not only threatens the stability and reliability of our water supply but also risks the prudent use of our community's resources.

As we approach the upcoming elections in May, I also urge all residents of McLendon Chisholm to exercise their rights and ensure they have representation that truly reflects their best interests and the well-being of the community. Your voice and your vote are powerful tools in shaping the future of the city and safeguarding the essential services we all rely on.

We at RCH remain committed to providing you with the highest quality water service. We believe in the strength of our community and the importance of standing together in the face of challenges that could affect our basic needs.

Let's continue to advocate for responsible governance, transparency, and the safeguarding of our essential services. Your support and engagement are invaluable as we navigate these times.

The full response can be read here: 

https://interchange.puc.texas.gov/Documents/55623_35_1368820.PDF

Warmest regards,

David Naylor
Board President, RCH Water Supply Corporation