89R4819 CXP-D
By: Dorazio H.B. No. 2506
A BILL TO BE ENTITLED
AN ACT
relating to rates for water or sewer utility service provided by
certain municipally owned utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.181, Water Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(a) Except for the provisions of Section 13.192 and
Subsections (c) and (d), this subchapter shall apply only to a
utility and shall not be applied to municipalities, counties,
districts, or water supply or sewer service corporations.
(c) This subchapter applies to the implementation of a rate
increase by a municipally owned utility for ratepayers residing
outside the corporate limits of the municipality if:
(1) the utility is owned by a municipality with a
population of more than one million; and
(2) the rate increase is initiated on a date on which
the utility is implementing any provision of the utility's drought
contingency plan.
(d) A municipally owned utility implementing a rate
increase described by Subsection (c) is considered to be a Class A
utility for the purposes of any proceeding under this subchapter
regarding the rate increase.
SECTION 2. The changes in law made by this Act apply only to
a rate proceeding under Chapter 13, Water Code, that begins on or
after the effective date of this Act. A rate proceeding that begins
before the effective date of this Act is governed by the law in
effect on the date the rate proceeding began, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.