BILL ANALYSIS Senate Research Center C.S.S.B. 2692 89R24131 ANG-F By: Hancock Water, Agriculture and Rural Affairs 4/14/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Current law allows customers outside city limits (OCL) to appeal their water rates to the Public Utility Commission (PUC); however, the law does not distinguish between residential, commercial, or large-quantity water customers. The appeal process requires the collection of signatures from 10 percent of the total number of OCL customers. While a municipal utility may charge different rates to each class of OCL customer, the ability to appeal does not recognize that different classes of customers may be treated separately by the municipal utility. S.B. 2692 seeks to provide an additional avenue to appeal a water rate to the PUC by obtaining 10 percent of signatures from all the ratepayers within the same customer class. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 2692 amends current law relating to the filing of an appeal regarding certain water, drainage, or sewer rates with the Public Utility Commission of Texas. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 13.043(c), Water Code, as follows: (c) Requires that an appeal under Subsection (b) (relating to authorizing ratepayers of certain entities to appeal the decision of the governing body of the entity affecting their rates to the Public Utility Commission of Texas) be initiated by filing a petition for review with the Public Utility Commission of Texas and the entity providing service within 90 days after the effective day of the rate change or, if appealing under Subsection, rather than Subdivision, (b)(2) (relating to a utility under the jurisdiction of a municipality inside the corporate limits of the municipality) or (5) (relating to a utility owned by an affected county), within 90 days after the date on which the governing body of the municipality or affected county makes a final decision. Requires that the petition be signed by at least certain quantities of ratepayers, including 10 percent of those ratepayers in the same customer class whose rates have been changed and who are eligible to appeal under Subsection (b). Makes nonsubstantive changes. SECTION 2. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center C.S.S.B. 2692
89R24131 ANG-F By: Hancock
Water, Agriculture and Rural Affairs
4/14/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 2692
89R24131 ANG-F
By: Hancock
Water, Agriculture and Rural Affairs
4/14/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Current law allows customers outside city limits (OCL) to appeal their water rates to the Public Utility Commission (PUC); however, the law does not distinguish between residential, commercial, or large-quantity water customers. The appeal process requires the collection of signatures from 10 percent of the total number of OCL customers. While a municipal utility may charge different rates to each class of OCL customer, the ability to appeal does not recognize that different classes of customers may be treated separately by the municipal utility.
S.B. 2692 seeks to provide an additional avenue to appeal a water rate to the PUC by obtaining 10 percent of signatures from all the ratepayers within the same customer class.
(Original Author's/Sponsor's Statement of Intent)
C.S.S.B. 2692 amends current law relating to the filing of an appeal regarding certain water, drainage, or sewer rates with the Public Utility Commission of Texas.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 13.043(c), Water Code, as follows:
(c) Requires that an appeal under Subsection (b) (relating to authorizing ratepayers of certain entities to appeal the decision of the governing body of the entity affecting their rates to the Public Utility Commission of Texas) be initiated by filing a petition for review with the Public Utility Commission of Texas and the entity providing service within 90 days after the effective day of the rate change or, if appealing under Subsection, rather than Subdivision, (b)(2) (relating to a utility under the jurisdiction of a municipality inside the corporate limits of the municipality) or (5) (relating to a utility owned by an affected county), within 90 days after the date on which the governing body of the municipality or affected county makes a final decision. Requires that the petition be signed by at least certain quantities of ratepayers, including 10 percent of those ratepayers in the same customer class whose rates have been changed and who are eligible to appeal under Subsection (b). Makes nonsubstantive changes.
SECTION 2. Effective date: upon passage or September 1, 2025.