Texas 2013 - 83rd Regular

Texas House Bill HB3857 Compare Versions

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Old	New	Differences
1	1	83R21281 RWG-F
2	2	By: Lucio III H.B. No. 3857
3	3	Substitute the following for H.B. No. 3857:
4	4	By: Lucio III C.S.H.B. No. 3857
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to periodic rate adjustments by water and sewer utilities.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter F, Chapter 13, Water Code, is amended
12	12	by adding Section 13.194 to read as follows:
13	13	Sec. 13.194. RATE ADJUSTMENTS FOR INFRASTRUCTURE PROJECTS.
14	14	(a) In this section, "infrastructure improvement project" means an
15	15	engineering project to construct, improve, or renovate a facility
16	16	used and useful for:
17	17	(1) the production, transmission, storage,
18	18	distribution, or provision of potable or recycled water to the
19	19	public; or
20	20	(2) the collection, transportation, treatment, or
21	21	disposal of sewage.
22	22	(b) The commission, on the petition of a water and sewer
23	23	utility, may approve a tariff or rate schedule that includes an
24	24	adjustable rate or charge designed to increase or decrease, without
25	25	the necessity of a contested case hearing, in proportion to the
26	26	utility's amount of invested capital committed to infrastructure
27	27	improvement projects to serve the utility's certificated service
28	28	area.
29	29	(c) To be eligible for a tariff or rate schedule under this
30	30	section, or to increase or decrease an adjustable rate or charge
31	31	approved as part of a tariff or rate schedule under this section, a
32	32	water and sewer utility, not later than the 60th day before the
33	33	proposed effective date, as applicable, of the tariff or rate
34	34	schedule or of the increase or decrease of the adjustable rate or
35	35	charge, must file with the executive director for review and
36	36	approval a written petition that contains:
37	37	(1) the amount of the proposed rate or charge;
38	38	(2) the proposed implementation date for the proposed
39	39	rate or charge;
40	40	(3) a list of completed, eligible capital projects and
41	41	the depreciation and return on investment on the projects for which
42	42	the utility seeks reimbursement through the proposed rate or
43	43	charge;
44	44	(4) a computation of the projected total annual
45	45	increase or decrease in revenue expected from the proposed rate or
46	46	charge; and
47	47	(5) the cumulative annual amount the utility expects
48	48	to recover from the proposed rate or charge.
49	49	(d) The executive director may not approve a rate or charge
50	50	that allows a water and sewer utility to recover more than five
51	51	percent of the utility's annual revenue. If a water and sewer
52	52	utility regionalizes or consolidates into a single tariff under
53	53	Section 13.145, the executive director may not approve a rate or
54	54	charge that exceeds five percent of the utility's annual revenue
55	55	from the region or single tariff.
56	56	(e) A water and sewer utility may not implement a rate or
57	57	charge or an increase in a rate or charge under this section more
58	58	than once in a calendar year.
59	59	(f) The commission by rule shall require the water and sewer
60	60	utility:
61	61	(1) to apply a rate or charge to each customer included
62	62	in the utility's tariff or rate schedule; and
63	63	(2) to provide to each customer written notice of the
64	64	rate or charge on the initial tariff filing that proposes to
65	65	implement the rate or charge.
66	66	(g) A water and sewer utility may not recover expenses
67	67	related to the maintenance and operation of an infrastructure
68	68	improvement project through a rate or charge under this section.
69	69	(h) A rate or charge approved by the commission under this
70	70	section is subject to a true-up or reconciliation at the water and
71	71	sewer utility's next general rate case under Section 13.187.
72	72	(i) A water and sewer utility that has filed four petitions
73	73	under this section since the utility's most recent general rate
74	74	case under Section 13.187 may not file another petition until after
75	75	the utility's next general rate case under that section.
76	76	(j) Notwithstanding any other provision of this code, the
77	77	implementation of a utility facilities construction and
78	78	improvement charge or an increase in a utility facilities
79	79	construction and improvement charge is not subject to a contested
80	80	case hearing.
81	81	(k) The commission shall adopt rules to implement this
82	82	section.
83	83	(l) A regulatory authority other than the commission shall
84	84	allow a water and sewer utility to use an adjustable rate or charge
85	85	in a manner consistent with this section and rules adopted under
86	86	this section.
87	87	SECTION 2. The commission or regulatory authority shall
88	88	adopt all rules necessary to implement Section 13.194, Water Code,
89	89	as added by this Act, not later than September 1, 2015.
90	90	SECTION 3. This Act takes effect September 1, 2013.