46662 1 1 1 111 Ill 1 1 11 Item Number: 612

HMI iiiiii 1111 Control N mber: 46662 1 1 1 111 ill 1 1 11 Item Number: 612 Addendum StartPage: 0 „,„ f • . JUSTIN HOUAND;, TEXAS STATE REPRE,!•i'E'IVTAT'IVE; f May 16, 2019 Public Utility Commission of Texas P.O. Box 13326 Austin, TX 78711 RE: Petition of the Cities of Garland, Mesquite, Plano, and Richardson Appealing the Decision by North Texas Municipal Water District Affecting Wholesale Water Rates; PUC Docket No. 46662; SOAH Docket No. 473-17-4964.WS. Dear Commissioners, I am writing this letter to express my concern related to the above mentioned case and the potential impacts it could have on water supply planning and financing in my district, the North Texas region, and across the state. The North Texas Municipal Water District (NTMWD) recently received significant funding from the State Water Implementation Fund for Texas (SWIFT) for the construction of the Bois d'Arc Lake reservoir. These funds were made available to NTMWD through the purchase of revenue bonds, the repayment of which is guaranteed under the terms of the contested contract. If the Proposal for Decision in this case is adopted, the construction of the reservoir and funding for other necessary water services in the region could be in jeopardy. The Proposal for Decision in this case could negatively impact outstanding bonds and future funding requests by allowing wholesale water supply contracts across the state to be opened and effectively re-negotiated. These contracts have been in place for years and have been relied upon in determining finance agreements. Allowing these contracts to be re-negotiated will create uncertainty in the market and affect the credit-worthiness of these entities in negotiating future contracts. Additionally, this uncertainty will likely be passed to consumers in the form of higher interest rates. On behalf of my constituents, I respectfully ask that you consider these and other consequences as the case proceeds. Justin Holland State Representative t11:11i 0 CAPITOL: E2.906 • P.O. BOX 2910 • AUSTIN, TEXAS 78768-2910 • (512) 463-0484 • F (512) 463-7834 JUSTIN.HOLLANDOHOUSE.TEXAS.GOV uY1, cc: The Honorable Charles Perry The Honorable Bob Hall The Honorable Angela Paxton The Honorable Jane Nelson The Honorable Nathan Johnson The Honorable Pat Fallon The Honorable Juan Hinojosa The Honorable Lois W. Kolkhorst The Honorable Dan Flynn The Honorable Keith Bell The Honorable Reggie Smith The Honorable Matt Shaheen The Honorable Jeff Leach The Honorable Scott Sanford The Honorable Candy Noble The Honorable Ana-Maria Ramos The Honorable Jared Patterson The Honorable Victoria Neave The Honorable Angie Chen Button The Honorable Rhetta Andrews Bowers The Honorable Eddie Lucio III The Honorable Lyle Larson The Honorable Dade Phelan The Honorable Peter M. Lake The Honorable Kathleen Jackson The Honorable Brooke T. Paup The Honorable Glenn Hagar Mr. Paul Ballard, Texas Treasury Safekeeping Trust Co. .

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