89R8951 SCR-D
By: Tepper H.B. No. 2923
A BILL TO BE ENTITLED
AN ACT
relating to the jurisdiction of the Public Utility Commission of
Texas over certain rates for water or sewer service charged by a
municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 12.013(b) and (d), Water Code, are
amended to read as follows:
(b) In this section, "political subdivision" means
municipalities [incorporated cities, towns or villages], counties,
river authorities, water districts, and other special purpose
districts.
(d) The utility commission's jurisdiction under this
section relating to a municipality [incorporated cities, towns, or
villages] shall be limited to water furnished by the municipality
[such city, town, or village] to another political subdivision,
other than another municipality, on a wholesale basis.
SECTION 2. Section 13.043, Water Code, is amended by adding
Subsection (f-1) and amending Subsection (j) to read as follows:
(f-1) Subsection (f) does not apply to a decision of a
municipality regarding wholesale water or sewer service provided to
another municipality.
(j) In an appeal under this section, the utility commission
shall ensure that every appealed rate is just and reasonable. Rates
shall not be unreasonably preferential, prejudicial, or
discriminatory but shall be sufficient, equitable, and consistent
in application to each class of customers. The utility commission
shall use a methodology that preserves the financial integrity of
the retail public utility. [For agreements between municipalities
the utility commission shall consider the terms of any wholesale
water or sewer service agreement in an appellate rate proceeding.]
SECTION 3. This Act takes effect September 1, 2025.