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2 Donna L. Nelson Chairman Kenneth W. Anderson, Jr. Commissioner Brandy Marty Marquez Commissioner Brian H. Lloyd Executive Director Greg Abbott ^^ ^ '1 1^ Governor ^-.. t..,^ 2116 APR 28 Am 9= 32 PUS«C U'T,i^^yy Cot`";P^dla$j0;{.. r9^.i,;^ rl^^i^i Public Ut i lity Comm i ssion of Texas TO: Darcy Tramm Oak Hill Estates Water Operations Office Blueberry Hill Drive, Suite 36 Conroe, Texas Commission Staff - Water Utility Regulation Division Commission Staff- Legal Division RE: Tariff Control No Application of Oak Hill Estates Water, LLC for a Pass- Through Rate Change REVISED NOTICE OF APPROVAL This Revised Notice addresses Oak Hill Estates Water, LLC's application to implement a pass-through rate increase due to an increase in water use fees imposed on the utility by the North Harris County Regional Water Authority. The rate increase affects the Oak Hill Estates subdivision. The requested effective date was April 1, On April 18, 2016, Commission Staff recommended that the application and notice be deemed sufficient and further that the application be approved, as specified in the pleading and attached memorandum of Emily Sears of the Commission's Water Utility Regulation Division. Oak Hill requested and provided notice of a new pass-through rate of $2.76 per 1,000 gallons, calculating using 13% for line loss. However, Oak Hill's actual line loss was reported to be 12.55%, therefore, Commission Staff re-calculated the proposed rate increase and determined that the new pass-through rate should be $2.74 per 1,000 gallons. Because a slightly higher rate was noticed, Commission Staff did not recommend additional notice. Commission Staff provided revised final tariff sheets for Oak Hill reflecting a new pass-through rate of $2.74 per 1,000 gallons on April 23, A Notice of Approval was issued on April 20, 2016 with the revised final tariff sheets provided by Commission staff on April 18, 2016 attached. On April 23, 2016, Commission Staff provided corrected revised final tariff sheets for Oak Hill and asked that the corrected revised Printed on recycled paper An Equal Opportunity Employer 1701 N. Congress Avenue PO Box Austin, TX / Fax: 512/ web site:

3 TARIFF CONTROL NO REVISED NOTICE OF APROVAL PAGE 2 OF 2 final tariff sheets replace the revised final tariff sheets issued on April 20, An inadvertent grammatical error in the revised final tariff sheets issued on April 20, 2016 is corrected in the corrected revised final tariff sheets. Commission Staff's request to replace the tariff sheets issued on April 20, 2016 is granted. Consistent with Commission Staff's recommendation, Oak Hill's application is approved. A pass-t1.rough rate of $2.74 per 1,000 gallons for ratepayers in the Oak Hills Estates subdivision is approved effective April 1, The corrected revised final tariff sheets provided by Commission Staff on April 23, 2016 are attached to this Revised Notice. SIGNED AT AUSTIN, TEXAS on the ^ day of April PUBLIC UTILITY COMMISSION OF TEXAS SUSAI^ E. GOODSON ADMINISTRATIVE LAW JUDGE W2013 q.\cadm\docket management\water\tariffs - pass through adj\45xxx\45775-appr-revisedl.docx

4 WATER UTILITY TARIFF Docket Number: Castle Country Homes, Inc. dba Blueberry Hill #36 Oak Hill Estates Water Company (Business Address) (Utility Name) Conroe, Texas (281 ) (City, State, Zip Code) (Area Code/Telephone) This tariff is effective for utility operations under the following Certificate of Convenience and Necessity: This tariff is effective in the following county: Harris This tariff is effective in the following cities or unincorporated towns (if any): None This tariff is effective in the following subdivisions and public water systems: Oak Hill Estates: PWS # TABLE OF CONTENTS The above utility lists the following sections of its tariff (if additional pages are needed for a section, all pages should be numbered consecutively): SECTION RATE SCHEDULE...2 SECTION SERVICE RULES AND POLICIES...3 SECTION EXTENSION POLICY...8 SECTION DROUGHT CONTINGENCY PLAN APPENDIX A -- SAMPLE SERVICE AGREEMENT APPENDIX B - APPLICATION FOR SERVICE

5 Castle Country Homes, Inc. dba Oak Hill Estates Water Company Water Utility Tariff Page No. 2 SECTION RATE SCHEDULE Section Rates Meter Size 5/8" or 3/4" 1" 1'/2" Monthly Minimum Charge $30.85 (Includes 0 gallons) $77.13 $ Gallonage Charge $3.17 per 1000 gallons North Harris County Regional Water Authority Water Use Fee:... $2.74 per 1,000 gallons of water usage Docket No FORM OF PAYMENT: The utility will accept the following forms of payment: Cash X, Check X, Money Order X, Credit Card, Other (specify) THE UTILITY SHALL REQUIRE EXACT CHANGE FOR PAYMENTS AND SHALL REFUSE TO ACCEPT PAYMENTS MADE USING MORE THAN $1.00 IN SMALL COINS. A WRITTEN RECEIPT WILL BE GIVEN FOR CASH PAYMENTS. REGULATORY ASSESSMENT...1.0% PUC RULES REQUIRE THE UTILITY TO COLLECT A FEE OF ONE PERCENT OF THE RETAIL MONTHLY BILL AND TO REMIT THOSE FEES TO THE TCEQ. Section Miscellaneous Fees TAP FEE $ 1, TAP FEE COVERS THE UTILITY'S COSTS FOR MATERIALS AND LABOR TO INSTALL A STANDARD RESIDENTIAL 5/8" or 3/4" METER. AN ADDITIONAL FEE TO COVER UNIQUE COSTS IS PERMITTED IF LISTED ON THIS TARIFF. TAP FEE (Unique costs)...actual Cost FOR EXAMPLE, A ROAD BORE FOR CUSTOMERS OUTSIDE OF SUBDIVISIONS OR RESIDENTIAL AREAS. TAP FEE (Large meter)... Actual Cost TAP FEE IS THE UTILITY'S ACTUAL COST FOR MATERIALS AND LABOR FOR METER SIZE INSTALLED. METER RELOCATION FEE... Actual Relocation Cost, Not to Exceed Tap Fee THIS FEE SHALL BE CHARGED IF A CUSTOMER REQUESTS THAT AN EXISTING METER BE RELOCATED. METER TEST FEE THIS FEE WHICH SHOULD REFLECT THE UTILITY'S COST SHALL BE CHARGED IF A CUSTOMER REQUESTS A SECOND METER TEST WITHIN A TWO-YEAR PERIOD AND THE TEST INDICATES THAT THE METER IS RECORDING ACCURATELY. THE FEE SHALL NOT EXCEED $25. RETURNED CHECK CHARGE... $30.00 RETURNED CHECK CHARGES MUST BE BASED ON THE UTILITY'S DOCUMENTABLE COST. RECONNECTION FEE THE RECONNECT FEE MUST BE PAID BEFORE SERVICE CAN BE RESTORED TO A CUSTOMER WHO HAS BEEN DISCONNECTED FOR THE FOLLOWING REASONS (OR OTHER REASONS LISTED UNDER SECTION 2.0 OF THIS TARIFF): a) Non-payment of bill (Maximum $25.00)... $25.00 b) Customer's request that service be disconnected... $40.00 Docket No

6 Castle Country Homes, Inc. dba Oak Hill Estates Water Company Water Utility Tariff Page No. 2a SECTION RATE SCHEDULE (Continued) TRANSFER FEE THE TRANSFER FEE WILL BE CHARGED FOR CHANGING AN ACCOUNT NAME AT THE SAME SERVICE LOCATION WHEN THE SERVICE IS NOT DISCONNECTED. LATE CHARGE (EITHER $5.00 OR 10% OF THE BILL)...10% PUC RULES ALLOW A ONE-TIME PENALTY TO BE CHARGED ON DELINQUENT BILLS. A LATE CHARGE SHALL NOT BE APPLIED TO ANY BALANCE TO WHICH THE PENALTY WAS APPLIED IN A PREVIOUS BILLING. CUSTOMER DEPOSIT RESIDENTIAL ( Maximum $50) COMMERCIAL & NON-RESIDENTIAL DEPOSIT... 1/6TH OF ESTIMATED ANNUAL BILL GOVERNMENTAL TESTING, INSPECTION AND COSTS SURCHARGE: WHEN AUTHORIZED IN WRITING BY PUC AND AFTER NOTICE TO CUSTOMERS, THE UTILITY SHALL INCREASE RATES TO RECOVER INCREASED COSTS FOR INSPECTION FEES AND WATER TESTING. [16 TAC 24.21(K)(2)] LINE EXTENSION AND CONSTRUCTION CHARGES: REFER TO SECTION 3.0--EXTENSION POLICY FOR TERMS, CONDITIONS, AND CHARGES WHEN NEW CONSTRUCTION IS NECESSARY TO PROVIDE SERVICE. PASS THROUGH PROVISION: For Utilities subject to changes in costs imposed by any non-affiliated provider of purchased water or sewer or a groundwater conservation district having jurisdiction over the Utility, these increases (decreases) shall be passed though as an adjustment to the gallonage charge according to the formula: AG = G + B/(1-L), where AG = adjusted gallonage charge, rounded to the nearest one cent: G = approved gallonage charge (per 1,000 gallons); B = change in purchased water/district gallonage charge (per 1,000 gallons); L = system average line loss for preceding 12 months not to exceed 0.15 Docket No

Percent Increase. Dollar Impact. Water 2,000 $53.45 9.9% $5.29 $58.74 4.5% $2.65 $61.39. Water 5,000 $72.20 9.9% $7.15 $79.35 4.5% $3.58 $82.

Percent Increase. Dollar Impact. Water 2,000 $53.45 9.9% $5.29 $58.74 4.5% $2.65 $61.39. Water 5,000 $72.20 9.9% $7.15 $79.35 4.5% $3.58 $82. September 3, 2013 Dear Valued Customer: On September 3, 2013, SWWC Utilities, Inc. (SWWC) filed a request with the Texas Commission on Environmental Quality (TCEQ) and the city in which we serve customers