The Public Utility Commission of Texas (PUCT) has approved the sale and transfer of three small water systems in Harris and Chambers Counties to SP Utility Company, a move the regulator said would protect consumers and stabilise services following operational disruption.
In an announcement issued from Austin, the commission said it had authorised the transfer of Vista Utilities, Villa Utilities and Reed Estates, bringing the systems under SP Utility’s certification and oversight. The PUCT said the decision would ensure the utilities’ 85 customers “will receive safe, continuous, and affordable water service.”
The approval follows an earlier intervention by the regulator after it determined the previous owner had ceased to properly operate the systems. The commission said it had appointed a temporary manager for the three networks “after it was found the owner had abandoned operations.”
According to the PUCT, the temporary manager played a central role in restoring reliability, coordinating urgent repairs and addressing repeated equipment problems affecting supply. “The temporary manager, with the Commission’s support, coordinated emergency responses to multiple water well failures and helped establish a secure and consistent supply of safe water for the residents of these systems,” the statement said.
With the sale and transfer now approved, the PUCT said the temporary manager’s appointment would end. “Today’s approval of the sale and transfer terminates that temporary manager appointment,” it added.
SP Utility takes over as certificated provider
SP Utility is now the certificated water utility for the three systems and will assume responsibility for ongoing operations, maintenance and customer service in the affected communities. “SP Utility is now the certificated water utility for the three systems and will be required to provide continuous and adequate water service to current and future customers in these areas,” the PUCT said.
The transfer places the three systems within SP Utility’s wider footprint across the Houston metropolitan area and surrounding counties. The company already operates water facilities across multiple jurisdictions, giving it existing infrastructure and operational capacity in the region.
“SP Utility currently owns, operates, and controls facilities that provide water service in Harris, Brazoria, Fort Bend, Montgomery, and Chambers Counties,” the commission said, pointing to the firm’s established presence in local water provision.
The PUCT also cited the company’s ability to meet regulatory expectations and service requirements, indicating it had reviewed SP Utility’s capability to run the systems effectively. “SP Utility has the financial, managerial, and technical capability to serve the area and does not have a history of continuing mismanagement or misuse of revenue as a utility provider,” the regulator said.
Regulatory oversight and consumer protection
Transfers of regulated utilities are typically subject to commission scrutiny to ensure customers are not exposed to service disruption, unsafe supply, or sharp cost increases. In this case, the PUCT framed the decision as part of its consumer protection mandate, particularly given the prior need for emergency management and system recovery work.
The commission’s statement underlined the importance of maintaining safe and reliable drinking water services, particularly for smaller systems that may have fewer resources to address equipment failures or sudden operational issues.
While the announcement did not provide financial terms of the sale, it confirmed the transfer had been formally approved through the commission’s process for changes in ownership or control. The PUCT also directed customers and stakeholders seeking additional detail to the commission’s resources. “A detailed explanation of the PUCT’s sale, transfer, or merger process is available here on the PUCT website,” it said.
How customers can get more information
Customers with questions about the change in ownership or service arrangements were advised to contact SP Utility directly or speak with the commission’s public engagement team.
“Customers with questions can contact SP Utility at (832) 534-8515 or the PUCT’s Office of Public Engagement at 512-936-7374 or [email protected],” the commission said.
The PUCT also noted that filings linked to the case are available for public review. “All public filings associated with this proceeding can be found in PUCT Docket No. 54973,” it added.
The transfer is expected to provide longer-term operational continuity for the three systems, with SP Utility required to meet the commission’s standards for adequate service as demand evolves and new customers connect in the future.
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