82R6952 JXC-D
By: Workman H.B. No. 1223
A BILL TO BE ENTITLED
AN ACT
relating to the procedures by which certain small water and sewer
utilities may change rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 13, Water Code, is amended by adding
Subchapter F-1 to read as follows:
SUBCHAPTER F-1. RATE PROCEEDINGS OF CERTAIN
PUBLIC UTILITIES
Sec. 13.201. APPLICABILITY. This subchapter applies only
to a public utility that provides retail water or sewer utility
service through fewer than 1,000 taps or connections.
Sec. 13.202. EXEMPTION FROM PROCEEDINGS BEFORE REGULATORY
AUTHORITY. Notwithstanding Section 13.187, a public utility to
which this subchapter applies may make changes in its rates only as
prescribed by this subchapter.
Sec. 13.203. RATE CHANGE ELECTION. (a) A public utility
may make a change in its rates if the public utility holds an
election to obtain ratepayer approval of the rate change and the
rate change is approved under this section.
(b) A public utility holding an election under Subsection
(a) shall mail to each ratepayer:
(1) a description of the proposed rate change that
includes a billing comparison regarding the existing rates and the
proposed rates;
(2) an envelope addressed to the commission;
(3) for each tap or connection for which the ratepayer
receives a bill from the public utility, one ballot printed to
permit voting for or against the rate change;
(4) notice that the ratepayer must send the ballot to
the commission in the provided envelope for the ratepayer's vote to
be counted; and
(5) notice of the date described by Subsection (d) on
which the commission will stop accepting ballots for the election.
(c) The public utility may include with the envelope and
ballot a statement, not to exceed 10 letter-sized pages in length,
of the reason the public utility is holding the election.
(d) On or after the 61st day after the date the public
utility mails a ballot to each ratepayer under Subsection (b), the
commission shall count the ballots received by the commission. The
rate change is approved if a majority of the ballots received by the
commission not later than the 61st day after the date the public
utility mailed the ballots are cast in favor of the rate change.
(e) If the rate change is approved:
(1) the commission shall administratively certify the
rate change and provide written notice of the approval to the public
utility; and
(2) the public utility shall provide written notice of
the approval to each ratepayer.
Sec. 13.204. RATE CHANGE EFFECTIVE DATE. (a) A rate
change approved under this subchapter may not take effect before
the first day of a billing period that begins at least 60 days after
the date the public utility provides written notice of the approval
to each ratepayer.
(b) A rate change established under this subchapter may not
apply to service received before the effective date of the rate
change.
Sec. 13.205. PROCEEDINGS BEFORE REGULATORY AUTHORITY
ALLOWED. (a) A public utility may not file for a rate change under
Section 13.187 before holding an election under this subchapter.
(b) If a majority of the ballots received by the commission
under Section 13.203 are not cast in favor of the rate change:
(1) the public utility may file for a rate change under
Section 13.187;
(2) the public utility may not recover through its
rates the cost incurred by the utility under Section 13.187 or in an
appeal of a proceeding under that section; and
(3) the commission shall appoint a public advocate to
represent the ratepayers at any hearing conducted under Section
13.187.
Sec. 13.206. RATE CHANGE FREQUENCY. A public utility may
not hold an election under this subchapter more than once in a
24-month period unless:
(1) the public utility applies to the commission for
an exemption from this section; and
(2) the commission determines that the proposed rate
change is necessary to ensure the provision of continuous and
adequate service to the public utility's customers.
Sec. 13.207. APPLICATION OF OTHER PROVISIONS. (a) This
subchapter does not affect the application of a provision of this
title not directly related to the procedures for applying for and
receiving authority for a rate change.
(b) A service fee or service rule set by a public utility
under this subchapter must comply with commission rules that apply
to all retail public utilities.
(c) This subchapter does not affect:
(1) the authority of the commission under Section
13.186 to determine if a public utility has unlawfully charged or
received a rate for retail water or sewer utility service under this
chapter; or
(2) the authority of a public utility to adjust the
utility's rates outside the rate case process as otherwise allowed
by this subchapter.
SECTION 2. This Act applies only to a proposed rate change
for which a statement of intent has not been filed under Section
13.187, Water Code, before the effective date of this Act. A
proposed rate change to which a statement of intent filed before the
effective date of this Act applies is governed by the law in effect
on the date the statement was filed, and that law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.