News post

Dear Residents,

The Paloma Creek & Northlake Estates Districts wish to inform you of a change in ownership of the water and wastewater system serving the Paloma Creek Water Districts (“District”) from the District to Mustang Special Utility District (“Mustang”). 

Up until now, the water and wastewater have been owned by the District, and the District has been the retail utility provider responsible for providing you with retail utility service. While the systems have been owned by the District, they have always been operated by Mustang SUD, who also has provided billing services on behalf of the District.

Now, pursuant to a longstanding agreement between the District and Mustang, all of the District’s water and wastewater assets have been transferred to Mustang, and Mustang will be responsible for providing you with retail water and wastewater service.

As a practical matter, Mustang will continue to operate the system and bill you for utility services. Any new connection requests or service issues will continue to be handled by Mustang, and any deposits and previous balances will be carried forward as part of the transition. Since the current District rate structure differs from Mustang’s rate structure, as part of the agreement, Mustang will implement a three-year annual limited adjustment period to gradually align all rates uniformly per their standard rate structure.

After three years, Mustang will charge the same rates as it charges its other retail customers. For reference, Mustang SUD’s current rate order can be found here: https://www.mustangwater.com/rate-orderwww.mustangwater.com/rate-order.

While Mustang will be the water and wastewater provider, the District will retain responsibility for services other than water and wastewater, including trash and police services. Therefore, going forward your water bill will include an additional line item for “District Services”.

Additionally, as part of the transition, the District will file a request with the Public Utility Commission of Texas (“PUC”) to revoke the District’s certificates of convenience and necessity, and you may receive additional notice regarding the request. This request is necessary to update the PUC’s records to show that the District is no longer providing retail utility service and will not affect the service being provided to you.

Please direct any questions regarding this transition to Mustang SUD:

Mustang Special Utility District

www.mustangwater.comwww.mustangwater.com

(940) 440-9561