By: Springer H.B. No. 4477
A BILL TO BE ENTITLED
AN ACT
relating to Public Utility Commission to ensure compliance and rate
regulation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE
REGULATION. (a) Except for the provisions of Section 13.192, this
subchapter shall apply only to a utility and shall not be applied to
municipalities, counties, districts, or water supply or sewer
service corporations.
(b) Subject to this chapter, the utility commission has all
authority and power of the state to ensure compliance with the
obligations of utilities under this chapter. For this purpose the
regulatory authority may fix and regulate rates of utilities,
including rules and regulations for determining the classification
of customers and services and for determining the applicability of
rates. A rule or order of the regulatory authority may not conflict
with the rulings of any federal regulatory body. The utility
commission may adopt rules which authorize a utility which is
permitted under Section 13.242(c) to provide service without a
certificate of public convenience and necessity to request or
implement a rate increase and operate according to rules,
regulations, and standards of service other than those otherwise
required under this chapter provided that rates are just and
reasonable for customers and the utility and that service is safe,
adequate, efficient, and reasonable.
(C) Every water and sewer utility shall provide a $5 million
dollar bond held in trust by the Commission.
(1) The Commission may draw down money from the bond, if and
when the water or sewer utility fails within a reasonable time, as
determined by the PUC, to furnish service, instrumentalities, and
facilities that are safe, adequate, efficient, and reasonable.
(2) The commission shall use the proceeds of the bond to
make any necessary improvements to the bring the water or sewer
utility back into compliance to ensure that the service,
instrumentalities, and facilities are safe, adequate, efficient,
and reasonable.
(3) The commission may charge the water or sewer utility the
amount that was required to make the necessary repairs to replenish
the bond of the utility back up to a $5 million dollar threshold.
SECTION 2. This Act takes effect September 1, 2019.