Water and Wastewater Utility Divestiture

On Monday, March 19, LCRA transferred operation of the West Travis County Water and Wastewater systems to the West Travis County Public Utility Agency (PUA). The transfer is a significant milestone in the sale of the systems that LCRA and the PUA agreed to on Jan. 17. The PUA has taken over all responsibilities for operating the systems and setting rates. LCRA and the PUA are working to ensure a smooth and effective transition. Questions about services, billing or other issues should be directed to the PUA and its customer services agent, Severn Trent Environmental Services, at (512)246-0498 or csaus@stes.com. For more information go to wtcpua.org or read the customer letter.

On Feb. 22, LCRA's Board of Directors decided to negotiate to sell the Rollingwood Wastewater Utility system to the City of Rollingwood. The Rollingwood City Council must approve a memorandum of understanding for LCRA and the city to negotiate a definitive purchase agreement by June 23, 2012. The city council also will consider calling an election for May 12, 2012, to approve issuing bonds for the purchase. LCRA anticipates selling the system by August 2012. Read the Rollingwood resolution.

LCRA also added two more utility systems to the group it is negotiating to sell to Corix Infrastructure Inc. and extended the deadline to come to an agreement to March 30. LCRA's Board agreed Feb. 22 to add the Windmill Ranch Wastewater System and the Windmill Ranch Raw Water System to the negotiations with Corix. Read the Corix resolution.

LCRA is now negotiating to sell 20 systems to Corix, a North-American focused multi-utility company that currently provides service to more than 220 water and wastewater systems that serve 650,000 people in North America. Corix recently announced its agreement to acquire another water and wastewater utility outside of Texas that serves more than 290,000 people in 15 states. When LCRA's transaction closes with Corix, it will have water and wastewater utility operations across 18 states and in Canada and serve approximately 1 million people. Corix, through its utility services division, has been operating in the Austin area for almost 10 years. The retail utility systems included in LCRA's negotiations with Corix are:

In the Hill Country:

Lake Buchanan Water System, Spicewood Beach Water System; Smithwick Mills Water System; Ridge Harbor Water System; Ridge Harbor Wastewater System; Paradise Point Water System; Sandy Harbor Water System; Quail Creek Water System, Lometa Water System and the Lometa Wastewater System (both subject to right of first refusal by the City of Lometa), Tow Village Water System and Bonanza Beach Water System.

In the southeast region:

Camp Swift Wastewater System; McKinney Roughs Wastewater System; Alleyton Water System; Alleyton Wastewater System; Matagorda Dunes Water System and Matagorda Dunes Wastewater System.

The Board decided in November 2010 to sell its water and wastewater systems, pointing out that a water utility made up of multiple systems does not leverage LCRA's strengths as a regional supplier of raw water and wholesale power.