Yardi Matrix Report: Multifamily Rents Experience Decline in October
November 19, 2024
The Pros and Cons of Property Managers for Utility Billing and Submetering Services in 2025
December 3, 2024
Texas Lawmakers Urge Public Utility Commission to Investigate Undine
Unreasonable Water Bill Increases in East Texas Prompt Lawmakers to Call for Investigation
Residents in East Texas have expressed mounting frustration over skyrocketing water bills, with charges exceeding what many believe to be reasonable.
In October, KLTV reported alarming instances of extreme billing discrepancies for residents of Hideaway Lake, near Lindale. Some residents saw usage spikes hundreds of times higher than in previous cycles, leading to widespread shock, concern, and fear of potential relocation to escape unaffordable utilities.
Following complaints, representatives from Undine, LLC—the company that recently acquired the water utility—held a meeting with Smith County residents. The company explained that a base rate increase, approved by the state, was introduced after the acquisition. Despite these claims, Undine has struggled to justify dramatic usage discrepancies, such as reports of monthly consumption jumping from 20,000 to 65,000 gallons.
Undine attributed some increases to potential leaks on customer properties, but plumbers called in by residents rarely found significant issues.
In response, State Senator Bryan Hughes (District One) and State Representative Cole Hefner (District Five) authored a joint letter to the Public Utility Commission of Texas (PUC), urging an investigation into Undine’s billing practices.
The letter highlights complaints of unexplained billing increases, with some residents receiving monthly bills nearing or exceeding $1,000. Undine’s claims that base rate adjustments or customer leaks explain these charges have been deemed insufficient. Additionally, constituents have reported threats of water disconnection, escalating concerns over public safety.
Senator Hughes and Representative Hefner are calling for swift action by the PUC to address these alarming billing practices and to ensure the well-being of affected communities.
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
---
This growing issue underscores the need for greater oversight of utility providers to prevent undue financial and emotional strain on Texas residents.
