Mr. Dickman has extensively worked in the area of retail water and sewer utilities as a hearings examiner and staff attorney handling certificate of convenience and necessity (CCN) and rate cases at the Texas Water Commission, as Texas counsel for a national water and sewer investor-owned utility, and as counsel for various Texas cities in serving in-city and out-of-city residents. Mr. Dickman also has extensive experience in representing and advising cities and special purpose water districts on water and sewer service and public water system regulatory compliance matters. Typical kinds of cases handled by Mr. Dickman in the area of Texas retail water and sewer utility law include:
- Water and Sewer CCN Applications
- Water and Sewer Rate Cases
- Retail Water and Sewer Service Contracts
- Public Water System Regulatory Compliance
- Creation and Regulation of Special Purpose Water Districts
- Section 1926(b) Issues
Water and Sewer CCN Applications
The holder of a CCN has both the exclusive right and the duty to provide retail service within a specific geographical area. For investor-owned water and sewer utilities and for non-profit water supply corporations, a CCN must be obtained in order to provide retail water and sewer service within a specific area. Although generally not required to obtain a CCN, many cities and water districts obtain a CCN in order to document their exclusive right to provide retail water and sewer service within their boundaries. When a water or sewer service provider agrees to transfer certain within its CCN service area to another provider, the CCNs of both must be appropriately amended. Mr. Dickman is very experienced in obtaining and amending CCNs and in opposing intrusions on CCN areas by outside service providers.
Water and Sewer Rate Cases
The PUC regulates the rates and services of investor-owned water and sewer utilities and that agency has appellate jurisdiction over rates charged by cities and water districts to customers located outside their boundaries. Under recent changes in Texas law, smaller water and sewer utilities can effectuate a rate change with less regulatory oversight than for larger size utilities. Mr. Dickman has handled numerous water and sewer rate cases and his background in accounting enables him to thoroughly evaluate all aspects of the cost-of-service ratemaking methodology required under the PUC’s rules.
Retail Water and Sewer Service Contracts
When a real estate developer needs water or sewer service for a new development, a contract must be negotiated with the retail service provider. Such contracts typically require that the developer absorb most of the costs of expanding water and sewer plant capacity and installing water and sewer mains for the provider to meet the projected needs of the new development subject to rebates as other customers tie onto the system. Mr. Dickman has extensive experience in drafting and negotiating water and sewer service contracts for new residential and commercial developments. Mr. Dickman also assists individual home owners and business owners in negotiating the terms and provisions of contracts for water and sewer service.
Public Water System Regulatory Compliance
Public water systems are subject to an increasingly complex array of regulatory requirements established under the federal Safe Drinking Water Act and administered in Texas by TCEQ. For example, public water systems must carefully monitor the levels of numerous drinking water contaminants, water quality parameters and minimum pressure levels, all of which may differ depending upon the source of the drinking water. Whenever any of those regulatory limits are violated, the public water system must notify all customers of those violations and demonstrate how the violations will be corrected. Mr. Dickman has extensive experience in interpreting and applying public water system regulations and in working with TCEQ staff on corrective action plans to address any regulatory exceedances.
Creation and Regulation of Special Purpose Water Districts
Special purpose water districts are generally used to help finance new development through the issuance of district bonds backed by generated revenues or property taxes. There are a variety of such districts with some variations in how they are created and what powers they have. In creating a special purpose water district located within an existing city, special attention must be paid to the role of the city in authorizing the creation of the district and in how the city collects sales taxes from residents of the district. Mr. Dickman is very familiar with special purpose water districts and how they can be created and used to finance new development. Mr. Dickman routinely advises clients on TCEQ regulatory requirements applicable to special purpose water districts such as the rules limiting what costs can be reimbursed to developers from district bond issuances.
Section 1926(b) Issues
Under federal law, a rural water utility that has obtained a loan from the U.S. Department of Agriculture has special protections against a city encroaching upon the service area of a rural water utility. Because formerly rural areas served by a rural water utility are rapidly becoming urbanized in areas around large metropolitan areas of Texas, conflicts are developing between cities that wish to serve the urbanizing areas and the federally indebted rural water utility. Mr. Dickman has represented cities in their efforts to respond to service requests from developers in areas claimed by federally indebted rural water utilities.
