| 1 | 1 | | 89R15525 ANG-D |
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| 2 | 2 | | By: Zaffirini S.B. No. 2499 |
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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 the consideration of compliance with rules of the Texas |
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| 10 | 10 | | Commission on Environmental Quality in approving rates for water or |
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| 11 | 11 | | sewer utility services. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 13.184(b), Water Code, is amended to |
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| 14 | 14 | | read as follows: |
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| 15 | 15 | | (b) In fixing a reasonable return on invested capital, the |
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| 16 | 16 | | regulatory authority shall consider, in addition to other |
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| 17 | 17 | | applicable factors, the efforts and achievements of the utility in |
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| 18 | 18 | | the conservation of resources, whether the utility is in compliance |
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| 19 | 19 | | with commission rules, the quality of the utility's services, the |
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| 20 | 20 | | efficiency of the utility's operations, and the quality of the |
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| 21 | 21 | | utility's management. |
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| 22 | 22 | | SECTION 2. Section 13.185, Water Code, is amended by adding |
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| 23 | 23 | | Subsection (g-1) to read as follows: |
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| 24 | 24 | | (g-1) When considering a utility's historic test year |
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| 25 | 25 | | information to determine reasonable and necessary expenses, the |
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| 26 | 26 | | regulatory authority shall consider whether the utility complied |
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| 27 | 27 | | with commission rules during that test year. |
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| 28 | 28 | | SECTION 3. The changes in law made by this Act apply only to |
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| 29 | 29 | | a rate proceeding under Chapter 13, Water Code, that begins on or |
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| 30 | 30 | | after the effective date of this Act. A rate proceeding that begins |
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| 31 | 31 | | before the effective date of this Act is governed by the law in |
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| 32 | 32 | | effect on the date the rate proceeding began, and the former law is |
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| 33 | 33 | | continued in effect for that purpose. |
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| 34 | 34 | | SECTION 4. This Act takes effect September 1, 2025. |
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