If you're buying or selling a home in a subdivision on MidSouth water this fall, the water provider is changing while your contract is open. On Sept. 24, 2026, Conroe City Council voted unanimously to move forward with buying the water and wastewater systems owned by subsidiaries of Mid-South Electric Cooperative Association, according to Community Impact. The handoff will probably take about a year. Many closings will fall inside that window, so the provider printed in a buyer's paperwork may not be the one that bills them later.
The usual Texas disclosure for utility service areas may not cover this. Most resale homes in these subdivisions are already connected to water, and that's one of the exceptions in the state statute.
Where The Deal Actually Stands
The city's press release is titled "Conroe Purchases Water and Wastewater System." The details in the release, and in the news coverage, describe a deal that's approved but not finished.
| Milestone | Status as of mid-October 2026 |
|---|---|
| Council resolution authorizing purchase agreements | Approved Sept. 24, 2026 |
| Separate council vote on the revenue bond sale | Pending per Community Impact's Sept. 25 report |
| Public Utility Commission of Texas approval | Required, no transfer docket located |
| Texas Commission on Environmental Quality approval | Required |
| Expected closing | City projected "on or around September 30, 2026" |
| Full system transfer | City estimates about a year |
On Sept. 25, Community Impact reported that "the purchase has not closed, and council will vote on the bond sale separately." The same article said the agreements still need approval from the PUCT and TCEQ, plus the bond issuance. The City of Conroe's announcement says MidSouth will keep running both systems normally until the PUCT approves the deal and all assets have transferred. A later KSAM report from Sept. 29 covered the council's move toward offering documents and financing. It didn't report a closing. MidSouth's own news page still lists its Sept. 25 water and wastewater release as the latest update.
The expected price is about $122.6 million, paid for with city water and sewer revenue bonds. The Houston Chronicle reported the same scale: 22 wells, eight wholesale contracts, 212 miles of water line, three wastewater plants and more than 8,000 customers, 232 of them commercial.
Why Conroe Wanted It
The city wants this system for its water supply. City Administrator David Willard said the deal would give Conroe access to another 2 million gallons of surface water per day and help the city serve future growth along the Hwy. 105 corridor, Community Impact reported. In the city's release, he called it "an acquisition of historic proportions."
After a water shortage, Conroe stopped new development in the northern part of the city in August 2024. That moratorium ended after a council vote to extend it failed in August 2025, according to Community Impact. The MidSouth deal had nothing to do with lifting it. The purchase fits the city's broader push for more capacity. At an April 2025 workshop, officials said daily production had grown from 15.4 million gallons to 17 million gallons in a year.
City officials tied the purchase to growth west of town along Hwy. 105, which puts the existing MidSouth customers inside the area Conroe has said it is planning around.
Which Subdivisions Are On The Tariff
The water tariff that MSEC Enterprises filed under CCN 12887 lists the subdivisions in its service area.
- Capitol Hills
- Crown Oaks
- Crown Ranch
- Grand Lakes Estates
- Highland Ranch
- Hills of Montgomery
- Lake Forest Lodge and Lake Forest Lodge South
- Legacy Creek Estates
- Lakeview
- Oaklawn Estates
- Old Kentucky Farms
- Montgomery Trace
- Ridge Lake Shores
- Stillwater Estates
- Valleywood Acres
- Woodforest and Woodforest Golf Course
A subdivision on the list doesn't confirm service at a particular address. The PUCT's certificated service area maps and the utility itself are the parcel-level sources.
Sewer is a different story. MSEC's wastewater tariff lists a residential minimum of $55 a month. But a 2020 PUCT staff filing said MSEC Waste Water's 10 active sewer connections served no residential customers. Its listed customers included Montgomery ISD, Mid-South Synergy and Honea Baptist Church. For most households in these subdivisions, the change that matters is the water side.
Two Rate Structures Built Differently
No source we reviewed says what rates transferred customers will pay after the handoff. The PUCT's consumer guidance says that if the new owner already runs utilities elsewhere, state law lets it ask to charge those same rates, and the PUCT reviews whether they're "just and reasonable." Since that's an open question, the most useful comparison is how each rate schedule is built.
| Component | MSEC water tariff, filed Jan. 2025 | City of Conroe, FY 2026-27 |
|---|---|---|
| Base charge, small residential meter | $33.00, includes zero gallons | $13.60 |
| Lower usage tiers | $3.25 per 1,000 gal for first 10,000 | $2.90 per 1,000 gal at 4,000–10,000 |
| Top tier | $3.70 per 1,000 gal above 20,000 | $8.47 per 1,000 gal at 36,000 and above |
| Pass-through fees | $2.50 SJRA and $0.09 Lone Star GCD per 1,000 gal for most listed subdivisions | $3.05 surface water and $0.06 groundwater per 1,000 gal |
Sources are the MSEC filed tariff and the City of Conroe rates page. The MSEC tariff also lists an extra 1% regulatory assessment. Its pass-throughs differ for two subdivisions: Crown Ranch has a $0.05 Bluebonnet GCD fee in place of the Lone Star charge, and the SJRA fee doesn't apply to Crown Ranch or Stillwater Estates. According to the city's page, Conroe's current rates took effect Oct. 1, 2025, and council approved no water or sewer increase for FY 2026-27. Conroe also charges double for sewer outside city limits.
MSEC has a high base and fairly flat tiers. Conroe has a low base and tiers that climb steeply at higher usage. A small household on modest usage and an acreage property that irrigates heavily in August would fall in very different parts of either schedule. That's why one estimated "average bill" won't tell a buyer much about the property they're considering. The MSEC tariff is from January 2025, and pass-through fees can change, so the seller's recent bills are the best record of what the house actually uses.
Where The Standard Paperwork Can Miss It
Texas Water Code §13.257 generally requires a seller to give the buyer written notice before signing a binding contract when a property is inside a utility's certificated service area. The statute also has exceptions. One covers property that's already receiving utility service. It also sets out a procedure for giving notice late, at closing.
For a typical resale home in Woodforest or Crown Oaks, the house is already hooked up to MidSouth water. So the notice built to tell buyers who serves a property may not be triggered, and even when it is, it describes the utility as it stands today. A sale-transfer-merger that's partway through the approval process doesn't automatically show up in contract forms.
The PUCT describes that process in order. The buyer of the utility files an application. Staff and an administrative law judge review it for completeness. There's a deadline for affected parties to intervene, and then a public-interest review. The case may be referred to the State Office of Administrative Hearings. If the Commission approves, the parties get permission to proceed, close the deal, notify the PUCT, and the Commission issues a final order. The PUCT also says service won't be disconnected because of an ownership change.
Questions That Fit A Transaction Right Now
- Who is the water provider today, and does the PUCT service-area map confirm it for this parcel? Being on the tariff list isn't parcel-level confirmation.
- What do the last 12 months of water bills show? Usage in summer and winter shows which tiers the property lands in under either schedule.
- Who handles sewer? The records we reviewed don't show residential MidSouth sewer connections, so the answer comes from somewhere else.
- Has a transfer notice reached the property yet? The PUCT's consumer page is written for people who've gotten one in the mail.
- For a buyer planning irrigation, a pool or livestock water, how does that usage fit a schedule with steep top tiers? That's a question about rate structure, not a prediction of future rates.
A Few Questions Buyers Usually Ask
Has Conroe taken over the system yet? Not as of the latest reporting we found. Community Impact said on Sept. 25, 2026 that the purchase hadn't closed, and we found no later confirmation that it did.
Will my water be shut off during the transfer? The PUCT says service won't be disconnected because of an ownership change. The city says MidSouth keeps running the system until the transfer is complete.
Does this bring the subdivisions into Conroe city limits? None of the sources we reviewed say the purchase changes city limits. The deal covers the utility's assets and customers.
If you own a home on MidSouth water and plan to list it during this transfer, the utility details belong in the marketing from the beginning. Buyers will be asking about them. Jordan Weingrad can put your home's actual usage records next to both rate schedules, so buyers see real numbers and not guesses. Start with a free home valuation and a straight conversation about where the transfer stands.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
