Bill Text: TX SB700 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
86R4652 GRM-F | ||
By: Nichols, Watson | S.B. No. 700 |
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relating to the regulation of certain classes of retail public | ||
water utilities. | ||
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 13.046, 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 3. 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 [ |
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Overall revenues determined 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 4. 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 5. 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 6. 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 7. The heading to Section 13.1872, Water Code, is | ||
amended to read as follows: | ||
Sec. 13.1872. CLASS D [ |
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SECTION 8. Section 13.1872, Water Code, is amended by | ||
amending Subsection (a) 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. | ||
SECTION 9. 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 10. 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 11. The change in law made by this Act applies only | ||
to an application for an amendment of a certificate of public | ||
convenience and necessity 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 12. This Act takes effect September 1, 2019. |