ORDER NO. 28666 AQUA TEXAS, INC. PLAN TO OPPOSE RATE INCREASE Came to be heard this the 2"d day of June 2004 with a motion made by Commissioner Williams, Seconded by Commissioner Letz, the Court unanimously approved by a vote of 4-0-0, adopt the strategy plan to oppose the rate increase on behalf of Kerr County Constituents. Kerr County Commissioners' Court Strategy to Assist Kerr County Constituents' Protest Of Proposed Aqua Texas Rate Increases 1. Adopt Resolution strongly protesting Aqua Texas proposed excessive rate increase(s) slated to go into effect July 13, 2004. 2. Authorize County Judge to correspond with the 12 other counties identified in the Aqua Texas Southwest Region urging them to join in a unified effort to protest the proposed rate increase(s); and forward a copy of the Kerr County Resolution. 3. Authorize a "Town Hall" style meeting at the Hill County Youth Exhibit Center, June 14, 2004 at 7 p.m., inviting all interested customers of the 40 individual water companies owned by Aqua Texas to attend for purpose of mobilizing a countywide protest effort. 4. Meeting will be posted so all members of Commissioners' Court can participate. 5. Prepaze information as to how best to voice opposition and seek a public rate hearing. A model letter to be made available to those in attendance with instructions on how best to assure delivery to appropriate destination. 6. Prepaze appropriate "Petition Heading" with format for other pertinent information far distribution at meeting; identify individuals willing to solicit signatures from their water company customers. 7. Letters received by Commissioners' Court to be gathered and sent to TCEQ with appropriate covering letter. 8. Petitions to be returned to Commissioners' Court for forwarding to TCEQ with appropriate covering letter. DRAFT LETTER Date: Texas Commission in Environmental Quality Water Supply Division Utilities & District Section, MC 153 P.O. Box 13087 Austin, Texas 78711-3087 Dear Sir: Being a ratepayer of Aqua Utilities, Inc., d/b/a Aqua Texas, CCN Numbers 11157 and 20453, I protest their proposed rate increase. May I request a hearing in this matter as set forth by your procedures, I am currently a resident of Kerr County, Texas. Sincerely, Signature Print Name Address City, State & Zip Water Company cc: Kerr County Commissioners' Court 700 Main Street, #101 Kerrville, Texas 78028 TO: Texas Commission on Environmental Quality Water Supply Division Utilities & District Section, MC 153 P.O. Box 13087 Austin, Texas 78711-3087 As indicated by my signature below, I am a ratepayer affected by an Application for Rate Increase filed by Aqua Utilities, Inc. d/b/a Aqua Texas, CCN numbers 11157 and 20453 and AquaSource Development Company, d/b/a Aqua Texas, Inc., CCN numbers 12902 and 20867. If the application is approved as requested, my rate will be substantially and unjustly increased. By my signature below, as a customer of Water Company, I request that TCEQ conduct a hearing as required by law. At such hearing, I request that TCEQ deny such rate increase or in the alternative, that it fix a fair and just rate for the system from which I receive service and not a rate covering multiple systems that have little or no common financial and/or operational needs. Signature Printed Name Address Telephone