The Public Utility Commission of Texas ruled on July 28 that Kempner Water Supply Corporation is not entitled to compensation from the city of Lampasas.
PUC also decided that the city is entitled to provide water to its Business Park, which is in city limits.
Kempner has never provided water to Business Park but the Business Park was originally in Kempner's service area.
The dispute began in 2015 when the Lampasas Economic Development Corporation requested water from Kempner and Kempner responded that it would cost about $2.4 million and take 36 months to provide service.
The LEDC asked the city if it could provide service that it needed.
The city was able to provide the same service to the Business Park within 90 days costing about $128,000. The LEDC started a proceeding at the PUC to have the business Park removed from Kempner's service area.
Kempner opposed the request. The PUC ruled for the LEDC and ordered the Business Park removed Kempner's service area so the city could file with the PUC to service it.
Kempner intervened in the city's PUC proceeding for approval to serve the Business Park, claiming it was entitled to $1.6 million in compensation from the city before the city serve the business park.
The case is one of a number of going disputes between Kempner and the City.
