Important Update Regarding the City of McLendon Chisholm's Attempt to Amend Our Certificate of Convenience and Necessity (CNN)

Dear RCH Members,

I am writing to you today to address a critical issue concerning the City of McLendon Chisholm's recent attempt to amend our Certificate of Convenience and Necessity (CCN), which would impact RCH Water Supply Corporation's service area in Rockwall County.

The City of McLendon Chisholm filed an application with the Public Utility Commission of Texas (PUCT) seeking to unilaterally replace RCH WSC as the water service provider for areas we currently serve that they have annexed. However, I am pleased to report that the Chief Administrative Law Judge has recommended the dismissal of this application, citing significant procedural and legal deficiencies on the part of the city.

Key Points from the Judge's Findings:

1. Inadequate Notice of Intent: The city's communication, purported as a Notice of Intent, was found to be severely lacking in detail and clarity. It failed to specify the annexed areas, the properties to be transferred, and the municipal ordinances involved. This lack of specificity hindered our ability to adequately prepare for and respond to the city’s actions.
2. Premature Filing: The application was prematurely filed without respecting the mandatory 180-day negotiation period following a properly issued Notice of Intent. This rush to action without proper dialogue undermines the legal processes designed to ensure fair negotiations.
3. Procedural Shortcomings: The city's approach was criticized for its failure to provide RCH WSC with the necessary information to engage in meaningful negotiations, a foundational aspect of the legal framework governing such changes.

The administrative judge’s decision to recommend dismissing the application underscores the city’s disregard for the established legal protocols and its lack of preparedness in adhering to regulatory requirements. This outcome highlights the deficiencies in the city's approach and affirms the strength of our position and our commitment to defending our rights and responsibilities as your water service provider.

Moving Forward:

This decision allows us to continue providing you with reliable and uninterrupted service. It also reminds us of the importance of vigilance and advocacy in protecting our community’s interests against poorly substantiated claims and actions. Rest assured, RCH will continue to stand firm in our duties and responsibilities to you, our members.

We will keep you informed of any further developments and our ongoing efforts to ensure the stability and integrity of our services. Thank you for your continued trust and support.

You can find the full filing here: 

https://interchange.puc.texas.gov/Documents/55623_37_1388526.PDF

Best regards,

David Naylor

RCH Board President