Understanding the CCN
When Georgetown voters head to the polls on May 2, they will be deciding whether the city should sell part of its water service territory outside the city limits. The territory is defined by what’s called a Certificate of Convenience and Necessity, or CCN.
In Texas, a CCN grants a utility the exclusive right and the legal obligation to provide water service within a specific geographic area.
Georgetown’s CCN stretches far beyond the city itself, covering roughly 440 square miles across Williamson County and into portions of Burnet and Bell counties. Mayor Josh Schroeder says that territory grew over time as the city expanded and acquired neighboring water systems.
Decades ago, rural water providers like Jonah Water and the Chisholm Trail Special Utility District served farms and rural properties surrounding Georgetown. As the city expanded westward, Georgetown purchased the Chisholm Trail system to ensure development near the city had access to water infrastructure.
However, state regulators required the city to purchase the entire service territory rather than only the areas closest to Georgetown. “That led to us having a 440-square-mile water service territory,” the mayor explains. Today, a significant portion of that territory lies outside Georgetown’s city limits and outside its extraterritorial jurisdiction (ETJ).
A Unique Challenge
While the city provides water service to those areas, it does not control development there. Properties located inside a CCN have the legal right to request water service. That means utilities generally must provide water connections when development occurs.
Under Texas law, Mayor Schroeder says, utilities cannot refuse those requests. “If someone owns land in that territory, they can come to us and say, ‘give me my water,’ and we are required by law to provide it,” he says. As surrounding communities like Liberty Hill, Jarrell, and Florence continue to grow, that legal obligation could require Georgetown to build additional water infrastructure far outside the city.
Why the City Is Considering a Sale
City leaders say the proposal is about managing long-term water planning and infrastructure costs. When Georgetown evaluated its future water needs, officials determined the city would need a large additional supply of groundwater to serve the entire 440-square-mile territory. Much of that water would likely need to come from the Carrizo-Wilcox aquifer in East Texas, requiring major infrastructure and the construction of long-distance pipelines, which city officials say is an investment that could cost billions over time.
Another factor is how infrastructure costs are shared. Under the current model, existing ratepayers typically help fund part of the infrastructure required for new development. That means Georgetown residents could end up paying a significant portion of the cost to build water systems serving areas well outside the city.
“The sale of the water service territory frees Georgetown residents from the obligation to serve water to areas well outside the city.” — Mayor Josh Schroeder
What the Proposed Sale Would Do
Under the proposal, Georgetown would sell the portion of its CCN located outside the city limits and ETJ to a private utility provider. The selected buyer, affiliated with Bernard Capital Partners, would assume responsibility for operating the system, building future infrastructure, and securing additional water supplies needed to serve that area.
“They get the obligation to go find the water and serve that entire area,” Mayor Schroeder says. The proposed transaction would transfer both existing infrastructure and the responsibility for future service to the new utility.
It is important to note the city would not be transferring its water rights as part of the sale.
If Voters Approve the Sale
- If Georgetown voters approve the measure, the city will move forward with final agreements and submit the transaction to the Texas Public Utility Commission for approval.
- The state will evaluate whether the buyer has the financial resources, operational experience, and long-term water plan necessary to serve the area.
- City officials say the change could reduce Georgetown’s long-term water demand by about 60 percent by 2070, allowing the city to focus on meeting the needs of residents within Georgetown and nearby areas.
If Voters Reject the Sale
- If voters reject the proposal, the city would continue operating the entire 440-square-mile service territory.
- That would mean Georgetown remains responsible for building infrastructure and securing additional water supplies needed to serve future development in those areas, and;
- Continued investment in groundwater projects and infrastructure to supply growing communities outside the city.
“A no vote means the city continues to serve water in that area and continues to pay its share of the cost of infrastructure and groundwater needed to support it,” the mayor says.
Visit the city’s webpage for more information about the Georgetown Water Service Territory Election • Election Day: May 2 • Early Voting: April 20–28
Ballot Question: Whether Georgetown should authorize the sale of part of its water
service territory outside the city limits.