Metering Well Water on Private Water Company Well

Hi, I’ve read a ton of the sub-metering questions, but haven’t found my answer.

We have just purchased our first MHP in Texas (outside of any city limits). The park has 20 slips, and is on a well (considered “private water company” and monitored weekly by the Texas Commission for Environmental Quality) and septic system. Water and septic have historically been free to the tenants, but we would like to submeter each home, and bill for the water (and possibly sewer down the road?). So, it won’t really be a “pass through” of expenses billed by the PUC, as we own the well and water company.

What advice can you give us on setting rates, and what other concerns should we be considering before jumping in?

Thanks mucho mucho

My understanding is that you basically need to monitor your costs over a 12 month period to justify a blended monthly rate per gallon to tenants thereafter. The TCEQ will approve the documentation of said costs as part of your rate application. This can be a tiered or straight line structure and you will likely need to make adjustments after the first year as you build in longer term capital improvements to your formula.

How far away from the city are you? Our two parks were outside city limits but a city water company was willing to buy each of our water and sewer systems from us. They installed meters and bill each tenant directly. Technically, we now have public water and sewer even though each community is not tied into any public water or sewer lines. It was a huge relief giving up our need to deal with the hassle of maintaining private systems. It is worth pursuing, if you have the time.

We did a similar thing in another state. A tenant became angry because he had to pay for utilities which were “free” in the past, so he reported us to the regulators to investigate. They found us to be in compliance, but they key takeaway is that the regulators have very specific requirements and each state is different. You should research the laws of your state and potentially speak to the regulators before making any decisions.