ORDER NO. 28665 RESOLUTION AQUA TEXAS, INC. Came to be heard this the 2"d day of June 2004 with a motion made by Commissioner Williams, Seconded by Commissioner Baldwin, the Court unanimously approved by a vote of 4-0-0, adopt a Resolution to protest the inequitable and possibly unjust rate increase by Aqua Utilities, dba Aqua Texas, Inc. Resolution WHEREAS Aqua Utilities, dba Aqua Texas, Inc., CCN 11157 & 20453, and AquaSource Development Company, dba Aqua Texas, Inc., CCN 12902 & 20867, have submitted a rate change application to the Texas Commission on Environmental Quality (TCEQ), affecting all customers in their Southwest Region, including those in forty (40) separate water companies in Kerr County; and WHEREAS The proposed effective date of the rate increase is July 13, 2004, or the first day of a customer's billing cycle beginning on July 13, 2004; and WHEREAS While Aqua Texas, lnc. asserts a need for a forty (40) percent rate increase to recover capital investments, it nonetheless has published rate increases to Kerr County water customers that appear to be inequitable and substantially in excess of that amount; and WHEREAS Kerr County water customers whose property and water service is outside a municipal jurisdiction must ultimately rely on the TCEQ to act upon the company's phase-in proposal before July 13, 2004, or face an immediate significant double-digit rate increase, leaving undetermined possible successive rate increases; and WHEREAS To cause TCEQ to conduct a public hearing on this substantial, inequitable and possibly unjust rate increase proposal, it is necessary for at least ten (10) percent of Aqua Texas' water customers in their Southwest region to register individual protests before the 915` day after the proposed effective date of July 13, 2004; NOW THEREFORE BE IT RESOLVED That Kerr County Commissioners' Court does hereby officially protest the proposed rate increases, and urges the TCEQ to conduct a public hearing on this matter at which time it will receive testimony from affected customers, and cause Aqua Texas to justify its proposed rate structure; and be it further RESOLVED That Kerr County will contact Bandera, Bexar, Burnet, Comal, Hayes, Kendall, Live Oak, Medina, Nueces, Travis, Williamson and Wilson Counties, and provide each with a copy of this Resolution, and urge all to take a similar action on behalf of their customers in the Aqua Texas Southwest Region. Resolution adopted this 2°d day of June 2004. 1f '1 ...~ <....,, 1~ . ~~~ ~ ~~~~ H. A. "Buster" Baldwin, Commissioner Precinct 1 Judge Precinct 2 Williams, Commissioner a e Nicholson, Commissioner Precinct 4 ~ ~ ~ ~ ~ ,q '~, ~`®;~~OUNZ~' i~