CCN Decertification and Compensation Potential Solutions Erin Selvera Legal And Legislative Services Director Texas Rural Water Association

Who is impacted?

Where are the decisions being made?

Where can we find solutions?

In the Courts… Must overcome precedents set in Crystal Clear Case Not just “service” under TWC 13.002(21) “any act performed, anything furnished or supplied, and any facilities or lines committed or used by a retail public utility in the performance of its duties under this chapter to its patrons, employees, other retail public utilities, and the public, as well as the interchange of facilities between two or more retail public utilities.” Must be “Receiving” Service having facilities and lines “used” to provide water to the tract or “committed” to the tract seeking expedited release

At the PUC… http://adminmonitor.com/tx/puct/open_meeting/20151217/ http://adminmonitor.com/tx/puct/open_meeting/20151217/  http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/ 45037_31_876777.PDF PETITION OF HMP RANCH, LTD. TO AMEND JOHNSON COUNTY SPECIAL UTILITY DISTRICT'S CERTIFICATE OF CONVENIENCE AND NECESSITY IN JOHNSON AND TARRANT COUNTIES BY EXPEDITED RELEASE

At the PUC… Rulemaking Docket No 46151 Proposal for Publication Approved on December 1, 2016 Comments due on January 17, 2017 Reply Comments due on January 31, 2017 Hearing tentatively set for February 13, 2017 Completely Repeals and Rewrites PUC Rules 24.113 and 24.120

At the PUC… Completely Repeals and Rewrites PUC Rules 24.113 and 24.120 New Applicability and Definitions Sections More detailed procedural rules with specified timeframes New hearing process for determining what property is rendered “useless or valueless” Specifies process for agreements reached on “useless or valueless” property or amount of compensation

At the Legislature…

At the Legislature… Potential Changes: Timing for PUC to act Timing of when payment is required Replace 3 appraisal process with hearing Address “service” vs “receiving service” Require review under (a-1) if CCN holder demonstrates that it is capable of providing service to petitioner

Questions? Erin Selvera Legal And Legislative Services Director Texas Rural Water Association 512-472-8591