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A BILL TO BE ENTITLED
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AN ACT
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relating to the structuring of water rates by retail public |
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utilities to promote water conservation; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 552, Local Government |
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Code, is amended by adding Section 552.9065 to read as follows: |
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Sec. 552.9065. WATER CONSERVATION RATE AND FEE. The |
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governing body of a municipality may by ordinance: |
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(1) structure the municipality's rates for water |
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service in a manner that promotes water conservation by all of the |
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municipality's water customers so that customers in a class who |
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consume greater amounts of water pay a higher rate per unit volume |
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than customers in a class who consume lesser amounts of water; and |
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(2) establish an excessive use fee for water customers |
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whose water usage is greater than the water usage of a percentage of |
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the municipality's other customers. |
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SECTION 2. The heading to Section 13.182, Water Code, is |
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amended to read as follows: |
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Sec. 13.182. JUST AND REASONABLE RATES; WATER CONSERVATION |
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RATE STRUCTURE AND FEE. |
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SECTION 3. Section 13.182, Water Code, is amended by adding |
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Subsection (b-2) to read as follows: |
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(b-2) In establishing a utility's rates, the regulatory |
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authority by rule or ordinance may authorize a utility to: |
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(1) structure the utility's rates in a manner that |
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promotes water conservation by all of the utility's customer |
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classes so that customers in a class who consume greater amounts of |
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water pay a higher rate per unit volume than customers in a class |
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who consume lesser amounts of water; and |
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(2) establish an excessive use fee for customers whose |
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water usage is greater than the water usage of a percentage of the |
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utility's other customers. |
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SECTION 4. Chapter 13, Water Code, is amended by adding |
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Subchapter O to read as follows: |
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SUBCHAPTER O. WATER CONSERVATION RATE AND FEE |
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Sec. 13.551. APPLICABILITY. This subchapter applies to a |
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retail public utility that is not subject to Subchapter F or Section |
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552.9065, Local Government Code. |
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Sec. 13.552. TIERED CONSERVATION RATE STRUCTURE. A retail |
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public utility may establish a water conservation rate that |
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promotes water conservation by all of the utility's customer |
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classes so that customers in a class who consume greater amounts of |
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water pay a higher rate per unit volume than customers in a class |
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who consume lesser amounts of water. |
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Sec. 13.553. EXCESSIVE USE FEE. A retail public utility may |
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establish an excessive use fee for the utility's customers whose |
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water usage is greater than the water usage of a percentage of the |
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utility's other customers. |
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SECTION 5. This Act takes effect September 1, 2025. |