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Kyle authorizes transfer of water service area to serve NewQuest development after council scrutiny
Summary
Council authorized a transfer of a portion of Texas Water Utilities' CCN (certificate of convenience and necessity) so the city can serve the NewQuest mixed‑use project. Staff said the development's average demand is about 110,000 gpd with peak 180,000 gpd; council approved the resolution 6–1 after public hearing (no speakers).
The City of Kyle on Nov. 19 authorized a resolution to accept a portion of a CCN (certificate of convenience and necessity) so the city can provide water service for the NewQuest mixed‑use development near I‑35 and Coler's Crossing.
Mike Murphy, director of water utilities, said the city and developer worked to phase the development so demand aligns with ARWA and other system capacity improvements. "The average daily demand is gonna be around 110,000 gallons per day. The maximum daily demand is gonna be around 180,000 gallons per day, which we feel very comfortable that we can provide," Murphy said, citing modeling and the new storage tank capacity.
Developer representative Andrew Alvis said NewQuest had been negotiating with Texas Water Utilities but the private utility later told the developer it did not have capacity under its permit; that prompted the CCN transfer request. "We were actively negotiating the contract when...they just went silent for a little while and came back and just told us they didn't have water to serve," Alvis said.
Nut graf: The council approved the CCN transfer by a 6–1 vote after staff said modeling and planned storage projects provide the capacity to serve the development on a phased timeline tied to ARWA deliveries and other infrastructure.
What’s next: The city will proceed with the CCN transfer process (including any required Public Utility Commission approvals) and staff will align project phasing with the water master plan and ARWA schedule.
Sources: Statements during Nov. 19 council meeting.
