1. (a) In accordance with Texas Water Code §16.0121, a retail public utility, as defined by Texas Water Code §13.002, that provides potable water shall perform a water loss audit and file with the executive administrator a water loss audit computing the utility's system water loss during the preceding year.

   1. (1) The water loss audit shall be performed in accordance with methodologies developed by the executive administrator based on the population served by the utility and taking into consideration the financial feasibility of performing the water loss audit, population density in the service area, the retail public utility's source of water supply, the mean income of the service population, and any other factors determined by the executive administrator. At least one year prior to the required filing, the executive administrator will provide the necessary forms and methodologies approved by the board to the retail public utility via first-class mail, electronic mail, or both.
   2. (2) Every five years, a retail public utility that provides potable water and that does not receive financial assistance from the board shall perform and file with the executive administrator a water loss audit computing the utility's system water loss during the preceding year. The water loss audit is due by May 1, 2016, and May 1st every five years thereafter.
   3. (3) A retail public utility providing potable water that receives financial assistance from the board shall perform and file a water loss audit with the executive administrator annually. For purposes of this rule, a retail public utility has received financial assistance upon closing and funding of a loan, loan forgiveness, or grant from the board. A retail public utility providing potable water that received financial assistance from the board prior to September 1, 2011, and that has an outstanding loan from the board or active loan forgiveness or grant agreement with the board shall submit a water loss audit to the executive administrator by May 1, 2013, and by May 1st annually thereafter during the term of the loan or the loan forgiveness or grant agreement. A retail public utility providing potable water that receives financial assistance from the board after September 1, 2011, shall submit a water loss audit no later than May 1st after the passage of one year following the receipt of financial assistance, and by May 1st annually thereafter during the term of the loan or the loan forgiveness or grant agreement. The water loss audit may be submitted electronically.
   4. (4) The executive administrator shall compile the information included in the water loss audits according to category of retail public utility and according to regional water planning area.
2. (b) The executive administrator shall determine if the water loss audit is administratively complete. A water loss audit is administratively complete if all required responses are provided. In the event the executive administrator determines that a retail public utility's water loss audit is incomplete, the incomplete audit will be returned to the utility. The retail public utility will then have 30 days from the new postmark date or electronic mail sent date to complete the items found deficient and return a complete water loss audit to the executive administrator. A retail public utility that provides potable water that fails to submit a water loss audit or that fails to timely correct a water loss audit that is not administratively complete is ineligible for financial assistance for water supply projects under Texas Water Code, Chapter 15, Subchapters C, D, E, F, J, O, Q, and R; Chapter 16, Subchapters E and F; and Chapter 17, Subchapters D, I, K, and L. The retail public utility will remain ineligible for financial assistance until a complete water loss audit has been filed with and accepted by the executive administrator.

Source Note:The provisions of this §358.6 adopted to be effective December 6, 2004, 29 TexReg 11366; amended to be effective February 15, 2012, 37 TexReg 708.