Magnolia area residents await decision by the state on Monarch Utilities’ request
Members of more than 1,100 households in the Magnolia area are awaiting a decision from the Texas Commission on Environmental Quality that could see their water rates increase by up to 62 percent. These households represent five housing subdivisions southeast of Magnolia’s city limits, but with Magnolia addresses, who receive water and sewer services from Monarch Utilities. Because Monarch is an investor-owned utility, rather than being government-run, residents do not have a direct route to bring up concerns.
“We weren’t aware [our subdivision] used an investor-owned utility when we purchased here,” said Johnny Jinks, who lives in the Decker Hills subdivision off Dobin Hufsmith. “If we’re ever to move again, we’re going to do some investigating on what kind of utilities are used before we consider another area.”
History
In 2007, Jinks and a group of the residents from the other four subdivisions affected by Monarch’s rate increases—Inverness Crossing, Champions Glen, Hidden Lake Estates and Park Place Mobile Homes—formed Monarch Protest Group. The group was then invited to join Texans Against Monopolies’ Excessive Rates, which provides legal representation to residents and cities across the state that receive water and sewer from Monarch. In January 2008, the TCEQ sent T.A.M.E.R. and Monarch representatives to mediation and instead of the proposed 40 percent increase, rates were increased by 20 percent, according to Jinks, the representative for the south Texas chapter of T.A.M.E.R.
Monarch charges a flat rate of $99–$109 per month for water and sewer service. Then, residents are charged for every gallon they use. Jinks said his bill usually runs $130 for 5,000 gallons.
“When we first moved here in ’96, our bill was probably $40 a month,” he said.
In August 2011, Monarch—a subsidiary of California-based SouthWest Water Company—notified customers that their rates would again be going up 62.3 percent for water and 33.6 percent for sewer. The rate increase notification coincided with SouthWest Water Company’s application to merge eight to 12 utilities into Monarch.
“Some of the companies are under a tariff that pays much less and some, much more,” Jinks said. “Monarch wants to pull them together where they can have one rate for all their customers.”
Monarch said the increases are necessary and will be put toward $70 million worth of improvements made over the past five years to tap new water resources, replace meters and replace aging water and wastewater treatment plants.
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