BILL ANALYSIS

Senate Research Center	H.B. 2373
88R8542 JXC-D	By: Harris, Cody (Nichols)
	Water, Agriculture & Rural Affairs
	5/5/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In its self-evaluation report to the Sunset Advisory Commission, the Public Utility Commission (PUC) identified improvements to statute to facilitate consolidation of water systems under a single tariff as an issue meriting of consideration by the legislature.  Currently, Section 13.145, Water Code, requires that in order to approve such a consolidation, the PUC must find that the systems under the tariff are "substantially similar."  In practice, this requirement precludes most water utilities from consolidating systems within a tariff.   The PUC noted in its report that "[eliminating] the substantial similarity determination to allow a utility to charge one rate to customers across all its water systems or sewer systems [would] eliminate confusion customers have when determining which part of a tariff applies to them. It would also treat water more like electric rate setting and encourage regionalization and consolidation.  In addition, it would eliminate staff processing time required to produce multiple rates for one utility with several systems and would, in turn, eliminate testimony and rate case expenses."  H.B. 2373 repeals the substantial similarity requirement found in Section 13.145, Water Code, in order to streamline ratemaking and facilitate regionalization and improvements to investor-owned water systems.

H.B. 2373 amends current law relating to the authority of a water or sewer utility to consolidate more than one system under a single tariff.

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. Repealer: Section 13.145 (Multiple Systems Consolidated Under Tariff), Water Code.

SECTION 2. Effective date: upon passage or September 1, 2023.