| 1 | 1 | | 89R4819 CXP-D |
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| 2 | 2 | | By: Dorazio H.B. No. 2506 |
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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 rates for water or sewer utility service provided by |
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| 10 | 10 | | certain municipally owned utilities. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 13.181, Water Code, is amended by |
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| 13 | 13 | | amending Subsection (a) and adding Subsections (c) and (d) to read |
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| 14 | 14 | | as follows: |
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| 15 | 15 | | (a) Except for the provisions of Section 13.192 and |
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| 16 | 16 | | Subsections (c) and (d), this subchapter shall apply only to a |
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| 17 | 17 | | utility and shall not be applied to municipalities, counties, |
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| 18 | 18 | | districts, or water supply or sewer service corporations. |
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| 19 | 19 | | (c) This subchapter applies to the implementation of a rate |
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| 20 | 20 | | increase by a municipally owned utility for ratepayers residing |
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| 21 | 21 | | outside the corporate limits of the municipality if: |
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| 22 | 22 | | (1) the utility is owned by a municipality with a |
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| 23 | 23 | | population of more than one million; and |
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| 24 | 24 | | (2) the rate increase is initiated on a date on which |
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| 25 | 25 | | the utility is implementing any provision of the utility's drought |
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| 26 | 26 | | contingency plan. |
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| 27 | 27 | | (d) A municipally owned utility implementing a rate |
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| 28 | 28 | | increase described by Subsection (c) is considered to be a Class A |
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| 29 | 29 | | utility for the purposes of any proceeding under this subchapter |
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| 30 | 30 | | regarding the rate increase. |
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| 31 | 31 | | SECTION 2. The changes in law made by this Act apply only to |
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| 32 | 32 | | a rate proceeding under Chapter 13, Water Code, that begins on or |
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| 33 | 33 | | after the effective date of this Act. A rate proceeding that begins |
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| 34 | 34 | | before the effective date of this Act is governed by the law in |
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| 35 | 35 | | effect on the date the rate proceeding began, and the former law is |
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| 36 | 36 | | continued in effect for that purpose. |
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| 37 | 37 | | SECTION 3. This Act takes effect September 1, 2025. |
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