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Texas Lawmakers Request Public Utility Commission Investigation Into Undine

An image of water.
George Hodan

Some water bills in East Texas have been increasing well beyond what many locals believe is reasonable.

Back in October, KLTV reported that residents of Hideaway Lake (just west of Lindale) were receiving water bills showing usage increases that were, in some cases, hundreds of times what previous billing cycles had shown.

Immediate reactions of surprise were later replaced with worry and a fear that some residents must consider relocating in order to find more affordable utilities.

KLTV further reported in October that representatives from Undine, LLC, held a meeting with Smith Country residents to discuss and explain the water billing issues, wherein the company shared that the rate increase was introduced after they bought the water utility, and that the rates were approved by the state.

Undine seems ready to defend it’s base rate increase from $20 to $50.93, but has been unable to explain how some usage measurements went from 20,000 gallons per month to 65,000 per month.

Undine has suggested that leaks on customer properties can often account for significant usage increases, but residents have taken to calling out plumbers to check for leaks, only to find them very few and far between.

On Monday, District One State Senator Bryan Hughes joined with State House District Five Representative Cole Hefner to author a letter to the state’s Public Utility Commission to open an investigation into Undine, LLC regarding the water billing and usage issues.

The text of the letter is below.

November 18, 2024

The Honorable Thomas Gleeson, Chair, Public Utility Commission
The Honorable Lori Cobos, Commissioner, Public Utility Commission
The Honorable Jimmy Glotfelty, Commissioner, Public Utility Commission
The Honorable Courtney Hjaltman, Commissioner, Public Utility Commission
The Honorable Kathleen Jackson, Commissioner, Public Utility Commission
Public Utility Commission of Texas
Post Office Box 13326
Austin, Texas 78711

DELIVERED VIA ELECTRONIC MAIL

Dear Commissioners,

Undine, LLC (Undine), is an investor-owned water utility that services areas within our respective districts. We have received numerous complaints from constituents, specifically in the communities of Hideaway and Lindale, related to irregular water billing by Undine. The lack of timely and reasonable explanations from the company has raised significant concerns, and werequest that the Public Utility Commission initiate an investigation.

To provide more detail, our offices have received numerous reports from constituents who are experiencing abnormal water billing and usage issues. For example, Undine customers have shared troubling accounts of unexplained usage increases reflected on their monthly bill, with some being charged for 300 percent increases. These usage charges are resulting in monthly bills that in some cases approach or exceed $1,000. Customers also have reported threats from the company of water service disconnection if these exorbitant bills are not paid, creating a potentially dangerous situation for residents of these communities.

Undine’s explanations to date have been unsatisfactory. The company has said that an increase in the “base rate” from $20 to $50.93 accounts for these significant bill increases. However, based on our understanding of the company’s rate structure, this base rate adjustment cannot begin to account for the dramatic increase in water charges. Additionally, Undine has suggested that these increased bills may be due to “leaks” at customer residences. Any water system certainly has leaks, but leaks do not develop simultaneously in numerous areas to the tune of a three-fold increase in water bills. Moreover, certain customers have had their systems inspected to confirm that there are no leaks. These constituents have reported the results to Undine, but the company does not appear to have adjusted bills as a result.

Undine has taken actions that are threatening the health and well-being of our constituents. The apparent unwillingness of the company to take corrective action is unacceptable, and we urge the Commission to promptly investigate these matters.

Sincerely,

Bryan Hughes
Senate District One

Cole Hefner
House District Five

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