PUC appoints temporary manager for Channel Oaks Water System

The Public Utility Commission of Texas unanimously appointed a temporary manager for the Channel Oaks Water System on June 15 following months of disputes regarding the system’s ownership and functionality. The system services roughly 45 connections inside the Channel Oaks subdivision off of FM 2147 near Marble Falls.

PUC staffers filed a petition to name Central States Water Resources-Texas the new system operator after owners and sisters Carolyn and Mary Maxey failed to adhere to an emergency order to identify who was responsible for the system via sworn affidavit by May 12.

“COWS has failed to file such an affidavit or otherwise identify a manager of COWS,” PUC attorney Mildred Anaele said during the public hearing on June 15.

Issues surrounding the system cropped up in December after former water operator Professional General Management Services stopped work due to a lack of payment from Mary Maxey, which then led to a three-month-long boil water notice for system customers.

Channel Oaks resident Pauline Jones, who was given billing authority for the system by Mary Maxey, appeared before the commission during the public hearing to speak against PUC staff’s petition for a temporary manager.

“We feel like we have identified the individual responsible to manage the utility, and we have not violated the commission’s final order,” she said.

Jones argued an affidavit filed by Mary Maxey on May 11 cleared up concerns about the system’s management.

“Pauline Jones, Keith Jones, and Aaron Johnson, a Class-B licensed operator, have been identified as the new operators responsible for managing the utility,” she said.

PUC attorney Anaele insisted the May 11 filing was insufficient.

“They state that they did, but they did not specifically say who was to manage,” she said. “They listed people but did not list who was the manager.”

Before approving the temporary manager, PUC Commissioner Will McAdams inquired about the current state of the Channel Oaks Water System infrastructure.

“Has service meaningfully improved since this entire process began?” he asked.

Celia Eaves, a PUC staff member from the Division of Utility Outreach, explained the system is still in need of several key improvements.

“There are issues in regards to lines not being properly buried,” she said. “There’s obviously infrastructure upgrades that need to be conducted within this utility, so it’s important to identify someone that is actually going to have the ability to make those improvements to ensure there’s going to be continuous and adequate service to these customers.”

As temporary manager, CSWR-Texas will respond to Channel Oaks consumer complaints, read meters, bill customers, collect payments, and perform system maintenance.

“I think, ultimately, I’m in favor of appointing a temporary manager, CSWR-Texas, to get us on the right path forward with the utility and the customers that are being served in this area,” PUC Commissioner Lori Cobos said before calling for a motion.

Channel Oaks customers will see a monthly $15 fee per connection on their bills to cover the cost of the temporary manager.

CSWR-Texas will serve as temporary manager until the PUC orders otherwise or a receiver is appointed by court. The length of the receivership process depends on several variables, primarily the availability of court and procedural schedules.

“Hopefully, CSWR ends up doing a sale, merger, transfer, and buys it,” PUC Commissioner Jimmy Glotfelty said. “If they become the temporary manager, they’re going to get a head start on that by upgrading the system.”

Central States Water Resources-Texas provides water service to more than 6,100 connections statewide.

“It’s clear with 6,000 connections nearby that they do have the adequate ability to run the water system,” Glotfelty said. 

nathan@thepicayune.com