LCRA sets dangerous precedent

LCRA and San Antonio Water System entered into a landmark water sharing contract a decade ago to benefit both San Antonio and the Colorado River communities. Scientific studies, paid entirely by SAWS, showed that the project could meet the long term needs of both utilities.

But in 2008, as the studies were virtually complete, LCRA unilaterally tried to back out of the contract by adopting new project parameters, changing the results of the studies, making the project unworkable, and breaching its contract.

A Travis County judge recently agreed with the LCRA's claim of immunity from lawsuit, dismissing our lawsuit against them. LCRA's astonishing assertion that it should not be held accountable to its contract with SAWS sets a dangerous precedent that must be addressed.

Unfortunately, LCRA thinks it can ignore contract provisions and keep the benefits of the water project for itself, leaving San Antonio holding an empty bag with a broken contract after investing $50 million.

But just as troubling is the impact of LCRA's actions on the future of water projects throughout Texas. Almost any water project, small or large, will involve contracts between governments, and will likely require millions of public dollars to be spent on related infrastructure.

How can we continue to invest ratepayer money and time in new regional partnerships if other governmental entities cannot be held accountable for the contracts they sign?

With all this in mind, and after long deliberation, the SAWS board voted to appeal the decision that granted LCRA immunity from lawsuit. If successful, we can then try to recoup the losses our ratepayers have incurred.

The decision to appeal is not one that we take lightly, but we cannot walk away from a broken contract, and our ratepayers' money, particularly while our ability to move forward with new regional projects is jeopardized.

We ask for your continued understanding as we pursue a reasonable resolution of this dispute. We believe that the law is on our side, and that this case will ultimately prove that contracts between governments in Texas are reliable ... and handshakes are your word.

Robert Puente is president and CEO of the San Antonio Water System.