89R4115 SCR-F
By: Walle H.B. No. 1918
A BILL TO BE ENTITLED
AN ACT
relating to Class A water and sewer utility rate increases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.187, Water Code, is amended by
amending Subsection (p) and adding Subsection (q) to read as
follows:
(p) Except to implement a rate adjustment provision
approved by the regulatory authority by rule or ordinance, as
applicable, or to adjust the rates of a newly acquired utility
system, a utility or two or more utilities under common control and
ownership may not file a statement of intent to increase its rates
more than once in a 36-month [12-month] period, unless the
regulatory authority determines that a financial hardship exists.
If the regulatory authority requires the utility to deliver a
corrected statement of intent, the utility is not considered to be
in violation of the 36-month [12-month] filing requirement.
(q) A rate change under this section may not result in a rate
increase to any class or category of ratepayer of more than 20
percent.
SECTION 2. The changes in law made by this Act apply only to
an application for a rate increase that is filed on or after the
effective date of this Act. An application that is filed before the
effective date of this Act is subject to the law in effect at that
time, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.