| 1 | 1 | | 89R4115 SCR-F |
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| 2 | 2 | | By: Walle H.B. No. 1918 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to Class A water and sewer utility rate increases. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 13.187, Water Code, is amended by |
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| 12 | 12 | | amending Subsection (p) and adding Subsection (q) to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (p) Except to implement a rate adjustment provision |
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| 15 | 15 | | approved by the regulatory authority by rule or ordinance, as |
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| 16 | 16 | | applicable, or to adjust the rates of a newly acquired utility |
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| 17 | 17 | | system, a utility or two or more utilities under common control and |
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| 18 | 18 | | ownership may not file a statement of intent to increase its rates |
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| 19 | 19 | | more than once in a 36-month [12-month] period, unless the |
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| 20 | 20 | | regulatory authority determines that a financial hardship exists. |
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| 21 | 21 | | If the regulatory authority requires the utility to deliver a |
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| 22 | 22 | | corrected statement of intent, the utility is not considered to be |
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| 23 | 23 | | in violation of the 36-month [12-month] filing requirement. |
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| 24 | 24 | | (q) A rate change under this section may not result in a rate |
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| 25 | 25 | | increase to any class or category of ratepayer of more than 20 |
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| 26 | 26 | | percent. |
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| 27 | 27 | | SECTION 2. The changes in law made by this Act apply only to |
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| 28 | 28 | | an application for a rate increase that is filed on or after the |
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| 29 | 29 | | effective date of this Act. An application that is filed before the |
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| 30 | 30 | | effective date of this Act is subject to the law in effect at that |
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| 31 | 31 | | time, and that law is continued in effect for that purpose. |
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| 32 | 32 | | SECTION 3. This Act takes effect September 1, 2025. |
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