SJRA approves MUD-funded surface water transmission expansions to offset groundwater reliance

SJRA approves MUD-funded surface water transmission expansions to offset groundwater relianceFour utility districts will finance the design and construction of pipeline extensions to receive surface water from the San Jacinto River Authority, transferring ownership of the completed infrastructure to the authority.

Montgomery County WCID No. 1, MUD No. 94, MUD No. 119, and Spring Creek Utility District will fund all capital costs for the transmission extensions.

The districts, currently relying entirely on groundwater, opted to fund the surface water tie-ins as a long-term solution to ongoing aquifer issues.

SJRA negotiated delivery volumes—capping WCID No. 1 at 160,000 gallons per day—to ensure the new allocations remain rate-neutral for existing Groundwater Reduction Plan participants.

The board also approved a 9.09% raw water rate increase for FY 2027 to fund aging infrastructure replacement in the Highlands Division.

The San Jacinto River Authority (SJRA) Board of Directors has authorized the execution of supplemental agreements with four Montgomery County utility districts to expand the authority's surface water transmission network. Approved during the board's August 27 meeting, the agreements allow Montgomery County Water Control and Improvement District (WCID) No. 1, Municipal Utility District (MUD) No. 94, MUD No. 119, and Spring Creek Utility District to design and construct extensions to SJRA’s surface water facilities. The districts, which currently rely entirely on groundwater, are facing aquifer issues and determined that funding the infrastructure was a more cost-effective long-term solution than drilling new wells. Under the terms of the agreements, the utility districts will cover all capital costs, including engineering, construction, and easement acquisition. Upon completion—estimated to take two to three years—the transmission lines and related real property rights will be conveyed to SJRA’s Groundwater Reduction Plan (GRP) division to own, operate, and maintain. To protect existing customers, SJRA staff negotiated the surface water delivery volumes to ensure the additions remain rate-neutral. For example, WCID No. 1 initially requested up to 400,000 gallons per day (GPD) of surface water, but SJRA adjusted the allocation to 160,000 GPD to prevent negative impacts on GRP rates and fees. MUD No. 94 requested a maximum of 500,000 GPD, MUD No. 119 requested up to 720,000 GPD, and Spring Creek Utility District requested a maximum of 500,000 GPD. The new deliveries will shift the districts to a partial surface water supply, with SJRA noting that the maximum day additions will push the GRP surface water treatment plant to its total capacity during peak times of the year. In a separate move, the board also approved a 9.09% increase to the system-wide raw water rate for Fiscal Year 2027, raising it from $0.66 to $0.72 per 1,000 gallons effective January 1, 2027. The rate hike is primarily driven by the need to repair and replace aging infrastructure in the authority's Highlands Division, which has been in operation since 1937.