The San Jacinto River Authority and the City of Conroe have reached a settlement ending a years-long legal dispute over wholesale water rates, clearing the way for lower costs and expanded water access.
Officials announced Monday that the San Jacinto River Authority and the City of Conroe have reached an agreement to conclude a lengthy legal dispute regarding wholesale water rates associated with the authority’s Groundwater Reduction Plan.
The SJRA Board of Directors reached a unanimous decision to approve a Mutual Release and Settlement Agreement at their meeting on Aug. 19. The Conroe City Council gave the green light to the same agreement last week, officially settling disputes that have been ongoing since 2016.
The dispute arose when Conroe questioned the rate hikes associated with the SJRA’s 2010 Groundwater Reduction Plan (GRP) contract, mandating that cities and utilities in Montgomery County decrease groundwater consumption by switching to treated surface water sourced from Lake Conroe. Conroe began to withhold a portion of payments in 2017, placing the funds in escrow as the case progressed through the legal system.
As part of the agreement, Conroe will remit the total amount it underpaid since 2017 and will start paying the current wholesale water rate along with the groundwater pumpage fee. The SJRA has agreed to waive penalties and late fees, offer extra surface water to Conroe, and reduce the duration of Conroe’s GRP contract from 80 years to 40 years. The agreement further specifies that Conroe is not required to take part in any upcoming phases or expansions of the GRP water treatment facility.
SJRA General Manager Aubrey Spear stated that the resolution is advantageous for everyone involved in the regional water plan.
“Resolving this legal matter is in the best interest of all GRP participants and their ratepayers,” Spear stated. “Thanks to Conroe’s payment and savings on legal fees, the wholesale water rates are set to decrease.” Concluding the legal proceedings further solidifies our collaboration with Conroe to ensure a steady water supply for its expanding community.
Conroe City Administrator Gary Scott described the settlement as a significant achievement for the city’s future development.
“Acquiring more water is essential for Conroe’s economic development and future sustainability,” Scott stated. “This agreement signifies a collective dedication to improving our situation.” This marks a pivotal moment that propels Conroe toward a promising future.
Both parties expressed that the arrangement enables them to concentrate on strategizing for upcoming water requirements in Montgomery County, a rapidly expanding area in Texas. The finalization of agreement documents is currently underway.
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