PUC might name temporary manager of Channel Oaks Water System
The Public Utility Commission of Texas released a 77-page petition on June 2 to appoint a new temporary manager for Channel Oaks Water System near Marble Falls after months of controversy and a three-month boil water notice for subdivision residents. Staff photo by Nathan Bush
The Public Utility Commission of Texas might appoint a new temporary manager of the Channel Oaks Water System when it meets on June 15. The system services resident of the Channel Oaks subdivision off of FM 2147 near Marble Falls.
PUC staffers filed a petition to name Central States Water Resources the new water system operator after owners and sisters Carolyn and Mary Maxey failed to adhere to an emergency order to identify by May 12 who is the responsible party.
“In short, the utility failed to identify the individual with authority and responsibility to manage the utility, and consequently, has violated the Commission’s final order …” reads a 77-page filing, or petition, from PUC staff.
Trouble with the system began in December after former water operator Professional General Management Services stopped working for the Maxeys because it was not receiving payment. The 45 property owners in Channel Oaks lived with a boil water notice for three months as a result.
The PUC staff petition comes after an affidavit filed on May 11 by Mary Maxey indicated she “agreed to work with the PUC to secure an entity qualified to take over the Channel Oaks Water System … .” She also identified other individuals responsible for certain operational duties.
“Since then, Ms. (Mary) Maxey has continuously implied that her sister, Carolyn Maxey, has actual legal authority over the utility,” the document says. “At each turn, Carolyn Maxey has denied this allegation and claimed that Mary Maxey is the legal owner of the utility … .”
Another source of uncertainty stems from information the state commission received from Pauline Jones, a Channel Oaks resident, who was given billing authority by Mary Maxey.
“And to confuse matters further, Pauline Jones — originally identified by Mary Maxey as the individual responsible for issuing bills on behalf of the utility — has claimed that Channel Oaks Water System, LLC is under new ownership and held herself out as the LLC’s new Managing Director,” the petition continued. “In order to ensure that Channel Oaks’ customers do not continue to bear the risk of the utility’s inability to determine the individual with authority and responsibility to manage the utility … Commission Staff recommends that the Commission appoint a temporary manager.”
If a new temporary manager is approved by PUC commissioners on June 15, the commission will then begin a lengthy process to find a court-appointed receiver to take the system over permanently.
Central States Water Resources provides water service to more than 6,100 connections statewide.