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Questions and answers about the proposed Monarch rate increase.
For further information, please call (888) 287-7992.

1. When do these new rates kick in?

2. What does "interim" mean?

3. Why don’t you wait until the TCEQ issues the final increase before changing rates?

4. Why didn’t I have an opportunity to voice my opinion on these rates?

5. How much is this rate increase?

6. What and when will the final increase be?

7. What is the justification for this increase?

8. How did you arrive at this increase?

9. How can I reduce my water bill?

10. Why have I received poor customer service and billing inaccuracies in the past?

11. Why is my water quality poor?


1. When do these new rates kick in?
Monarch’s interim rates became effective on September 4, 2007.

2. What does "interim" mean?
The interim rates are the rates in place until the Texas Commission on Environmental Quality (TCEQ), which is the agency that ultimately decides on the rates you pay for your service, issues its final ruling on rates for Monarch customers.

3. Why don’t you wait until the TCEQ issues the final increase before changing rates?
The law in Texas is that a proposed rate increase is put in place 60 days after customers are sent a notice of the increase and remains in place until the final ruling is issued.

4. Why didn’t I have an opportunity to voice my opinion on these rates?
You do. All Monarch customers were mailed a notice of the proposed rate increases on July 5th. If you have a protest, you should mail it to:

Texas Commission on Environmental Quality
Water Supply Division
Utilities & Districts Section, MC 153
P.O. Box 13087
Austin , TX 78711-3087

If you live in the Texas cities of Blue Mound, Flower Mound, Granbury, Kyle, Southmayd or Aurora, you should contact your city hall to file a protest.

5. How much is this rate increase?
(Note: The following numbers are accurate for customers in the Monarch Utilities districts only and do not apply to cities of Blue Mound, Kyle, Southmayed and customers of Pinnacle Club and Midway.) The proposed water rate increase is $12.87 per month for the fixed charge and a $1.47 increase for every thousand gallons used. For example, if you use 5,000 a month, your increase would be $7.35 plus the $12.87 or $20.22 per month. The proposed increase in the flat monthly wastewater charge would occur over a three-year period: $12.09 increase in the first year, an additional $12.10 increase the second year and a further $12.09 increase the third year.

6. What and when will the final increase be?
At this time, we’re not certain when the TCEQ will issue the final rate level, nor are we certain exactly what the increase will be.

7. What is the justification for this increase?
Current rates were based on 2002 expenses. Since then we have seen dramatic increases in key operating expenses. In the last five years, operational expenses have increased dramatically. For example:

• Chemical costs have increased 103%
• Pumping costs have increased 57%
• Sewer operation repairs have increased 148%
• Purchased water costs have increased 105%

More importantly, when Monarch purchased your water company in 2004, we knew we had a lot of work to do on the water delivery system. In the last three years, Monarch has spent about $20 million on capital improvements. The breakdown of how this money was spent includes:

• $3.5 million spent on wells
• $4.2 million on water and sewer lines
• $8.3 million on new and repaired water and sewer treatment plants
• $2.4 million on reservoirs and pressure tanks
• $1.5 million on pump stations

Monarch borrowed this money from a bank and has to make principal and interest payments on those funds. Monarch’s priority is to bring all of its systems into compliance, improve system efficiencies and enhance, not simply patch, sub-par systems. It is important to understand that the majority of Monarch’s capital expenditures are compliance-driven. Monarch has demonstrated its commitment to safe, high-quality and reliable water and wastewater service to its customers.

8. How did you arrive at this increase?
The proposed rates are based on historic operating costs and investments made to the systems. These costs are adjusted, taking into consideration known and measurable changes. This is then applied to Texas’s legal ratemaking formulas. The final rates will be set by the TCEQ based on these formulas to reflect what the agency believes are reasonable and fair rates that provide a high quality of water service while providing a fair return on investment. Also, during the regulatory process, both Monarch and its customers will have an opportunity to negotiate rates at the preliminary hearing.

9. How can I reduce my water bill?
Within this new filing, we are establishing rates that will create financial savings for customers who practice water conservation. The new two-tiered rate structure will reduce the cost of water for customers who use less. Each and every customer can benefit from these conservation rates. Monarch is proposing this change voluntarily in the spirit of preserving our state’s most valuable resource and rewarding our conservation-minded customers. And since a large portion of your water bill is based on the amount of water you use, a great way to reduce your monthly bill is to use water wisely. Remember to only wash full loads of laundry, limit your outside watering times, and check for leaky faucets and toilets.

10. Why have I received poor customer service and billing inaccuracies in the past?
We acknowledge there have been technical problems with our call center and billing system, and we recently sent a letter to you and all of our customers about that very thing. We appreciate your patience as we upgrade our system to make it easier for customers to express concerns, inquire about their account and make payments.

11. Why is my water quality poor?
We understand that pocket issues exist within our service territory and we have plans to continue to invest in our systems. The majority of Monarch’s capital expenditures are compliance-driven. Monarch has demonstrated its commitment to safe, high-quality and reliable water and wastewater service to its customers.