Texas 2019 - 86th Regular

Texas House Bill HB1587 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R4652 GRM-F
2	2	By: Geren H.B. No. 1587
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of certain classes of retail public
8	8	water utilities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 13.002, Water Code, is amended by
11	11	amending Subdivisions (4-b) and (4-c) and adding Subdivision (4-d)
12	12	to read as follows:
13	13	(4-b) "Class B utility" means a public utility that
14	14	provides retail water or sewer utility service through 2,300 [500]
15	15	or more taps or connections but fewer than 10,000 taps or
16	16	connections.
17	17	(4-c) "Class C utility" means a public utility that
18	18	provides retail water or sewer utility service through 500 or more
19	19	taps or connections but fewer than 2,300 [500] taps or connections.
20	20	(4-d) "Class D utility" means a public utility that
21	21	provides retail water or sewer utility service through fewer than
22	22	500 taps or connections.
23	23	SECTION 2. Section 13.046, Water Code, is amended by adding
24	24	Subsection (d) to read as follows:
25	25	(d) At the time the utility commission approves the
26	26	acquisition of a nonfunctioning retail water or sewer utility
27	27	service provider under Section 13.301, the utility commission
28	28	shall:
29	29	(1) determine the duration of the temporary rates for
30	30	the retail public utility, which must be for a reasonable period;
31	31	and
32	32	(2) rule on the reasonableness of the temporary rates
33	33	under Subsection (b) if the utility commission did not make a ruling
34	34	before the application was filed under Section 13.301.
35	35	SECTION 3. Section 13.183(c), Water Code, is amended to
36	36	read as follows:
37	37	(c) To ensure that retail customers receive a higher
38	38	quality, more affordable, or more reliable water or sewer service,
39	39	to encourage regionalization, or to maintain financially stable and
40	40	technically sound utilities, the regulatory authority, by rule or
41	41	ordinance, as appropriate, may adopt specific alternative
42	42	ratemaking methodologies for water or sewer rates [based on factors
43	43	other than rate of return and those specified in Section 13.185].
44	44	Overall revenues determined according to an alternative ratemaking
45	45	methodology adopted under this section must provide revenues to the
46	46	utility that satisfy the requirements of Subsection (a). The
47	47	regulatory authority may not approve rates under an alternative
48	48	ratemaking methodology unless the regulatory authority adopts the
49	49	methodology before the date the rate application was
50	50	administratively complete.
51	51	SECTION 4. Section 13.187(a-1), Water Code, is amended to
52	52	read as follows:
53	53	(a-1) A utility may not make changes in its rates except by
54	54	sending by mail or e-mail a statement of intent to each ratepayer
55	55	and to the regulatory authority having original jurisdiction at
56	56	least 35 days before the effective date of the proposed change. The
57	57	utility may send the statement of intent to a ratepayer by e-mail
58	58	only if the ratepayer has agreed to receive communications
59	59	electronically. The effective date of the new rates must be the
60	60	first day of a billing period, and the new rates may not apply to
61	61	service received before the effective date of the new rates. The
62	62	statement of intent must include:
63	63	(1) the information required by the regulatory
64	64	authority's rules;
65	65	(2) a billing comparison regarding the existing water
66	66	rate and the new water rate computed for the use of:
67	67	(A) 5,000 [10,000] gallons of water; and
68	68	(B) 10,000 [30,000] gallons of water;
69	69	(3) a billing comparison regarding the existing sewer
70	70	rate and the new sewer rate computed for the use of 5,000 [10,000]
71	71	gallons, unless the utility proposes a flat rate for sewer
72	72	services; and
73	73	(4) a description of the process by which a ratepayer
74	74	may intervene in the ratemaking proceeding.
75	75	SECTION 5. Sections 13.1871(a), (b), and (d), Water Code,
76	76	are amended to read as follows:
77	77	(a) Except as provided by Sections 13.18715 and [Section]
78	78	13.1872, this section applies only to a Class B utility.
79	79	(b) A utility may not make changes in its rates except by
80	80	sending by mail or e-mail a statement of intent to each ratepayer
81	81	and to the regulatory authority having original jurisdiction at
82	82	least 35 days before the effective date of the proposed change. The
83	83	utility may send the statement of intent to a ratepayer by e-mail
84	84	only if the ratepayer has agreed to receive communications
85	85	electronically. The effective date of the new rates must be the
86	86	first day of a billing period, and the new rates may not apply to
87	87	service received before the effective date of the new rates. The
88	88	statement of intent must include:
89	89	(1) the information required by the regulatory
90	90	authority's rules;
91	91	(2) a billing comparison regarding the existing water
92	92	rate and the new water rate computed for the use of:
93	93	(A) 5,000 [10,000] gallons of water; and
94	94	(B) 10,000 [30,000] gallons of water;
95	95	(3) a billing comparison regarding the existing sewer
96	96	rate and the new sewer rate computed for the use of 5,000 [10,000]
97	97	gallons, unless the utility proposes a flat rate for sewer
98	98	services; and
99	99	(4) a description of the process by which a ratepayer
100	100	may file a complaint under Subsection (i).
101	101	(d) When the statement of intent is delivered, the utility
102	102	shall file with the regulatory authority an application to change
103	103	rates. The application must include information the regulatory
104	104	authority requires by rule and any appropriate cost and rate
105	105	schedules supporting the requested rate increase. [In adopting
106	106	rules relating to the information required in the application, the
107	107	utility commission shall ensure that a utility can file a less
108	108	burdensome and complex application than is required of a Class A
109	109	utility.] If the utility fails to provide within a reasonable time
110	110	after the application is filed the necessary documentation or other
111	111	evidence that supports the costs and expenses that are shown in the
112	112	application, the regulatory authority may disallow the
113	113	nonsupported costs or expenses.
114	114	SECTION 6. Subchapter F, Chapter 13, Water Code, is amended
115	115	by adding Section 13.18715 to read as follows:
116	116	Sec. 13.18715. CLASS C UTILITIES: STATEMENT OF INTENT TO
117	117	CHANGE RATES; HEARING; DETERMINATION OF RATE LEVEL. (a) This
118	118	section applies only to a Class C utility.
119	119	(b) A utility may not make changes in its rates except by
120	120	complying with the procedures to change rates described by Section
121	121	13.1871.
122	122	(c) Notwithstanding Section 13.1871(n), the utility may
123	123	send the notice required by that subsection by mail or e-mail or may
124	124	deliver a copy of the notice to the ratepayers.
125	125	SECTION 7. The heading to Section 13.1872, Water Code, is
126	126	amended to read as follows:
127	127	Sec. 13.1872. CLASS D [C] UTILITIES: RATE ADJUSTMENT.
128	128	SECTION 8. Section 13.1872, Water Code, is amended by
129	129	amending Subsection (a) and adding Subsection (c-1) to read as
130	130	follows:
131	131	(a) This section applies only to a Class D [C] utility.
132	132	(c-1) A utility that chooses to comply with Section 13.1871
133	133	as authorized under Subsection (c)(2) of this section may send the
134	134	notice required by Section 13.1871(n) by mail or e-mail or may
135	135	deliver a copy of the notice to the ratepayers.
136	136	SECTION 9. Subchapter F, Chapter 13, Water Code, is amended
137	137	by adding Section 13.1873 to read as follows:
138	138	Sec. 13.1873. APPLICATION RULES. In adopting rules
139	139	relating to the information required in an application for a Class
140	140	B, Class C, or Class D utility to change rates, the utility
141	141	commission shall ensure that a:
142	142	(1) Class B utility can file a less burdensome and
143	143	complex application than is required of a Class A utility; and
144	144	(2) Class C or Class D utility can file a less
145	145	burdensome and complex application than is required of a Class A or
146	146	Class B utility.
147	147	SECTION 10. Section 13.258(a), Water Code, is amended to
148	148	read as follows:
149	149	(a) Notwithstanding any other provision of this chapter, a
150	150	Class A utility may apply to the utility commission for an amendment
151	151	of a certificate of convenience and necessity held by a municipal
152	152	utility district to allow the utility to have the same rights and
153	153	powers under the certificate as the municipal utility district.
154	154	SECTION 11. The change in law made by this Act applies only
155	155	to an application for an amendment of a certificate of public
156	156	convenience and necessity filed on or after the effective date of
157	157	this Act. An application filed before the effective date of this Act
158	158	is governed by the law in effect on the date the application is
159	159	filed, and the former law is continued in effect for that purpose.
160	160	SECTION 12. This Act takes effect September 1, 2019.