Bill Text: TX SB700 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to retail public utilities that provide water or sewer service.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [SB700 Detail]
Download: Texas-2019-SB700-Enrolled.html
S.B. No. 700 |
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relating to retail public utilities that provide water or sewer | ||
service. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 13.002, Water Code, is amended by | ||
amending Subdivisions (4-b) and (4-c) and adding Subdivision (4-d) | ||
to read as follows: | ||
(4-b) "Class B utility" means a public utility that | ||
provides retail water or sewer utility service through 2,300 [ |
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or more taps or connections but fewer than 10,000 taps or | ||
connections. | ||
(4-c) "Class C utility" means a public utility that | ||
provides retail water or sewer utility service through 500 or more | ||
taps or connections but fewer than 2,300 [ |
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(4-d) "Class D utility" means a public utility that | ||
provides retail water or sewer utility service through fewer than | ||
500 taps or connections. | ||
SECTION 2. Section 13.041, Water Code, is amended by | ||
amending Subsection (d) and adding Subsections (h), (i), and (j) to | ||
read as follows: | ||
(d) In accordance with Subchapter K-1, the utility | ||
commission may issue emergency orders, with or without a hearing: | ||
(1) to compel a retail public utility [ |
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certificate of public convenience and necessity to provide | ||
continuous and adequate water service, sewer service, or both, if | ||
the discontinuance of the service is imminent or has occurred | ||
because of the retail public utility's [ |
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or failure to act; and | ||
(2) to compel a retail public utility to provide an | ||
emergency interconnection with a neighboring retail public utility | ||
for the provision of temporary water or sewer service, or both, for | ||
not more than 90 days if service discontinuance or serious | ||
impairment in service is imminent or has occurred. | ||
(h) In accordance with Subchapter L, Chapter 5, the | ||
commission may issue emergency orders, with or without a hearing: | ||
(1) to compel a retail public utility that has | ||
obtained a certificate of public convenience and necessity to | ||
provide water or sewer service, or both, that complies with all | ||
statutory and regulatory requirements of the commission if | ||
necessary to ensure safe drinking water or environmental | ||
protection; and | ||
(2) to compel a retail public utility to provide an | ||
emergency interconnection with a neighboring retail public utility | ||
for the provision of temporary water or sewer service, or both, for | ||
not more than 90 days if necessary to ensure safe drinking water or | ||
environmental protection. | ||
(i) On request by the commission, the utility commission | ||
may, on an expedited basis, establish reasonable compensation for | ||
the temporary service required under Subsection (h)(2) and may | ||
allow the retail public utility receiving the service to make a | ||
temporary adjustment to its rate structure to ensure proper | ||
payment. | ||
(j) If an order is issued under Subsection (h) without a | ||
hearing, notice of a hearing under Section 5.504 to affirm, modify, | ||
or set aside the order is adequate if the notice is mailed or hand | ||
delivered to the last known address of the retail public utility's | ||
headquarters. | ||
SECTION 3. Section 13.046, Water Code, is amended by adding | ||
Subsection (d) to read as follows: | ||
(d) At the time the utility commission approves the | ||
acquisition of a nonfunctioning retail water or sewer utility | ||
service provider under Section 13.301, the utility commission | ||
shall: | ||
(1) determine the duration of the temporary rates for | ||
the retail public utility, which must be for a reasonable period; | ||
and | ||
(2) rule on the reasonableness of the temporary rates | ||
under Subsection (b) if the utility commission did not make a ruling | ||
before the application was filed under Section 13.301. | ||
SECTION 4. Section 13.183(c), Water Code, is amended to | ||
read as follows: | ||
(c) To ensure that retail customers receive a higher | ||
quality, more affordable, or more reliable water or sewer service, | ||
to encourage regionalization, or to maintain financially stable and | ||
technically sound utilities, the regulatory authority, by rule or | ||
ordinance, as appropriate, may adopt specific alternative | ||
ratemaking methodologies for water or sewer rates to allow for more | ||
timely and efficient cost recovery. Appropriate alternative | ||
ratemaking methodologies are the introduction of new customer | ||
classes, the cash needs method, and phased and multi-step rate | ||
changes. The regulatory authority may also adopt system | ||
improvement charges that may be periodically adjusted to ensure | ||
timely recovery of infrastructure investment. The utility | ||
commission by rule shall establish a schedule that requires all | ||
utilities that have implemented a system improvement charge | ||
approved by the utility commission to make periodic filings with | ||
the utility commission to modify or review base rates charged by the | ||
utility [ |
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according to an alternative ratemaking methodology adopted under | ||
this section must provide revenues to the utility that satisfy the | ||
requirements of Subsection (a). The regulatory authority may not | ||
approve rates under an alternative ratemaking methodology unless | ||
the regulatory authority adopts the methodology before the date the | ||
rate application was administratively complete. | ||
SECTION 5. Section 13.187(a-1), Water Code, is amended to | ||
read as follows: | ||
(a-1) A utility may not make changes in its rates except by | ||
sending by mail or e-mail a statement of intent to each ratepayer | ||
and to the regulatory authority having original jurisdiction at | ||
least 35 days before the effective date of the proposed change. The | ||
utility may send the statement of intent to a ratepayer by e-mail | ||
only if the ratepayer has agreed to receive communications | ||
electronically. The effective date of the new rates must be the | ||
first day of a billing period, and the new rates may not apply to | ||
service received before the effective date of the new rates. The | ||
statement of intent must include: | ||
(1) the information required by the regulatory | ||
authority's rules; | ||
(2) a billing comparison regarding the existing water | ||
rate and the new water rate computed for the use of: | ||
(A) 5,000 [ |
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(B) 10,000 [ |
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(3) a billing comparison regarding the existing sewer | ||
rate and the new sewer rate computed for the use of 5,000 [ |
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gallons, unless the utility proposes a flat rate for sewer | ||
services; and | ||
(4) a description of the process by which a ratepayer | ||
may intervene in the ratemaking proceeding. | ||
SECTION 6. Sections 13.1871(a), (b), and (d), Water Code, | ||
are amended to read as follows: | ||
(a) Except as provided by Sections 13.18715 and [ |
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13.1872, this section applies only to a Class B utility. | ||
(b) A utility may not make changes in its rates except by | ||
sending by mail or e-mail a statement of intent to each ratepayer | ||
and to the regulatory authority having original jurisdiction at | ||
least 35 days before the effective date of the proposed change. The | ||
utility may send the statement of intent to a ratepayer by e-mail | ||
only if the ratepayer has agreed to receive communications | ||
electronically. The effective date of the new rates must be the | ||
first day of a billing period, and the new rates may not apply to | ||
service received before the effective date of the new rates. The | ||
statement of intent must include: | ||
(1) the information required by the regulatory | ||
authority's rules; | ||
(2) a billing comparison regarding the existing water | ||
rate and the new water rate computed for the use of: | ||
(A) 5,000 [ |
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(B) 10,000 [ |
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(3) a billing comparison regarding the existing sewer | ||
rate and the new sewer rate computed for the use of 5,000 [ |
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gallons, unless the utility proposes a flat rate for sewer | ||
services; and | ||
(4) a description of the process by which a ratepayer | ||
may file a complaint under Subsection (i). | ||
(d) When the statement of intent is delivered, the utility | ||
shall file with the regulatory authority an application to change | ||
rates. The application must include information the regulatory | ||
authority requires by rule and any appropriate cost and rate | ||
schedules supporting the requested rate increase. [ |
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after the application is filed the necessary documentation or other | ||
evidence that supports the costs and expenses that are shown in the | ||
application, the regulatory authority may disallow the | ||
nonsupported costs or expenses. | ||
SECTION 7. Subchapter F, Chapter 13, Water Code, is amended | ||
by adding Section 13.18715 to read as follows: | ||
Sec. 13.18715. CLASS C UTILITIES: STATEMENT OF INTENT TO | ||
CHANGE RATES; HEARING; DETERMINATION OF RATE LEVEL. (a) This | ||
section applies only to a Class C utility. | ||
(b) A utility may not make changes in its rates except by | ||
complying with the procedures to change rates described by Section | ||
13.1871. | ||
(c) Notwithstanding Section 13.1871(n), the utility may | ||
send the notice required by that subsection by mail or e-mail or may | ||
deliver a copy of the notice to the ratepayers. | ||
SECTION 8. The heading to Section 13.1872, Water Code, is | ||
amended to read as follows: | ||
Sec. 13.1872. CLASS D [ |
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SECTION 9. Section 13.1872, Water Code, is amended by | ||
amending Subsections (a) and (e) and adding Subsection (c-1) to | ||
read as follows: | ||
(a) This section applies only to a Class D [ |
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(c-1) A utility that chooses to comply with Section 13.1871 | ||
as authorized under Subsection (c)(2) of this section may send the | ||
notice required by Section 13.1871(n) by mail or e-mail or may | ||
deliver a copy of the notice to the ratepayers. | ||
(e) The utility commission by rule shall adopt procedures to | ||
allow a utility to receive without a hearing an annual rate | ||
adjustment [ |
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(1) include standard language to be included in the | ||
notice described by Subsection (c)(1) describing the rate | ||
adjustment process; and | ||
(2) provide that an annual rate adjustment described | ||
by this section may not result in a rate increase to any class or | ||
category of ratepayer of more than [ |
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SECTION 10. Subchapter F, Chapter 13, Water Code, is | ||
amended by adding Section 13.1873 to read as follows: | ||
Sec. 13.1873. APPLICATION RULES. In adopting rules | ||
relating to the information required in an application for a Class | ||
B, Class C, or Class D utility to change rates, the utility | ||
commission shall ensure that a: | ||
(1) Class B utility can file a less burdensome and | ||
complex application than is required of a Class A utility; and | ||
(2) Class C or Class D utility can file a less | ||
burdensome and complex application than is required of a Class A or | ||
Class B utility. | ||
SECTION 11. Section 13.258(a), Water Code, is amended to | ||
read as follows: | ||
(a) Notwithstanding any other provision of this chapter, a | ||
Class A utility may apply to the utility commission for an amendment | ||
of a certificate of convenience and necessity held by a municipal | ||
utility district to allow the utility to have the same rights and | ||
powers under the certificate as the municipal utility district. | ||
SECTION 12. Section 5.501(c), Water Code, is amended to | ||
read as follows: | ||
(c) The commission by order or rule may delegate to the | ||
executive director the authority to: | ||
(1) receive applications and issue emergency orders | ||
under this subchapter and Section 13.041(h); and | ||
(2) authorize, in writing, a representative or | ||
representatives to act on the executive director's behalf under | ||
this subchapter and Section 13.041(h). | ||
SECTION 13. The change in law made by this Act applies only | ||
to an application for an amendment of a certificate of public | ||
convenience and necessity or an application for a rate change or | ||
adjustment filed on or after the effective date of this Act. An | ||
application filed before the effective date of this Act is governed | ||
by the law in effect on the date the application is filed, and the | ||
former law is continued in effect for that purpose. | ||
SECTION 14. Section 13.1872(b), Water Code, is repealed. | ||
SECTION 15. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 700 passed the Senate on | ||
April 9, 2019, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 21, 2019, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 700 passed the House, with | ||
amendment, on May 17, 2019, by the following vote: Yeas 141, | ||
Nays 1, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |