83R10275 JXC-F
By: Isaac H.B. No. 2237
A BILL TO BE ENTITLED
AN ACT
relating to the recovery of rate case expenses by a water and sewer
utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.185, Water Code, is amended by
amending Subsection (d) and adding Subsection (h-1) to read as
follows:
(d) Net income is the total revenues of the utility less all
reasonable and necessary expenses as determined by the regulatory
authority. The regulatory authority shall determine expenses and
revenues in a manner consistent with Subsections (e) through (h-1)
[(h) of this section].
(h-1) The regulatory authority may not include for
ratemaking purposes any rate case expenses incurred by a water and
sewer utility in a contested proceeding under Section 13.187, or in
an appeal of that proceeding, if the local regulatory authority
holds a hearing on those rates under Section 13.187 and the utility
fails to appear at or fully participate in that hearing. This
subsection does not apply to expenses the utility is authorized to
recover under Section 13.084.
SECTION 2. The changes in law made by this Act apply only to
a rate proceeding before the governing body of a municipality that
commences on or after the effective date of this Act. A rate
proceeding before the governing body of a municipality that
commenced before the effective date of this Act is governed by the
law in effect on the date the proceeding commenced, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.