Posted: Wed, 23 Mar 2011 11:32 AM - 13,640 Readers

By: JIM BERGAMO

There's an update on that water rate battle KVUE reported last week.  The two sides reached a compromise, but the issue is far from over.

It's safe to say neither homeowners nor the water company were thrilled with the compromise that was reached Monday night.  Now, one state representative is hoping to put all Texas residents on more equal footing with service providers wanting a rate increase.

Last week, residents of the Inverness Point and Crosswind neighborhoods near Lake Travis told KVUE for the last six months they've been paying at least 100 percent more for their water.

"We've gone from $95 a month for 10,000 gallons to $205 a month," said Andrew Forsythe, and Inverness Point resident.

Monday night, residents and Southwest Water Company reached a compromise that would cut that rate increase in half.  But it's a tenuous, one year agreement and could still wind up in court if Southwest Water Company opts not to renew the terms of the agreement.

It is an obvious concern for Forsythe and other residents.

"This issue is not stopping with us," said Forsythe.  "This has taken off all over East Texas.  It's coming to Central Texas. I would suggest to everybody who pays a water bill every month to look who you are writing that check to because if it's a private business, this is coming to your neighborhood."

Aware of that possibility, Texas Representative Paul Workman has authored a bill which would require service providers to notify their customers of any possible rate hikes.  Then the customers -- as a group -- would have the right to accept the increase or fight it.

"They may agree with them and go ahead and give them the authorization and it's done," said State Representative Paul Workman, R-Austin.  "You don't have to go to TCEQ, you just raise the rates and move on."

If the residents vote it down, Workman says, the service provider can still file the rate case with the Texas Commission on Environmental Quality, but at least the property owners will be aware and can better prepare for the legal fight ahead.

"This is just an intermediate step that allows these small subdivisions to have some voice in it," said Workman.

Workman's bill requires service providers to wait two years between rate hikes.  If residents do fight an increase and win, the utility company would pay all legal fees.