By: Shapleigh S.B. No. 1744
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain sales of water to be
1-3 transported by pipeline.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 13, Water Code, is amended by adding
1-6 Subchapter O to read as follows:
1-7 SUBCHAPTER O. REGULATION OF CERTAIN SALES OF WATER TO BE
1-8 TRANSPORTED BY PIPELINE
1-9 Sec. 13.551. APPLICABILITY. (a) This subchapter applies to
1-10 the sale of raw or potable water by an individual or business
1-11 entity if the water is to be transported by pipeline:
1-12 (1) at least 50 miles; or
1-13 (2) from one river basin in this state to another
1-14 river basin in this state.
1-15 (b) This section applies to the sale of surface water and
1-16 groundwater.
1-17 Sec. 13.552. POWER TO ENSURE COMPLIANCE; RATE REGULATION.
1-18 The commission has all authority and power of the state to ensure
1-19 that persons who supply water under this subchapter comply with
1-20 their obligations under this subchapter. For that purpose, the
1-21 commission may fix and regulate the rates of water suppliers under
1-22 this subchapter and may adopt rules for determining the
1-23 classification of customers and services and for determining the
2-1 applicability of rates.
2-2 Sec. 13.553. JUST AND REASONABLE RATES. The commission
2-3 shall ensure that the rate for water sold under this subchapter is
2-4 just and reasonable.
2-5 Sec. 13.554. FIXING OVERALL REVENUES. In fixing the rate
2-6 for water sold under this subchapter, the commission shall fix the
2-7 seller's revenues at a level that will:
2-8 (1) permit the seller a reasonable opportunity to earn
2-9 a reasonable return on the seller's invested capital used and
2-10 useful in supplying water to the purchaser over and above the
2-11 seller's reasonable and necessary operating expenses; and
2-12 (2) preserve the financial integrity of the seller.
2-13 Sec. 13.555. FAIR RETURN. The commission may not prescribe
2-14 any rate for water sold under this subchapter that will yield more
2-15 than a fair return on the invested capital used and useful in
2-16 supplying water to the purchaser.
2-17 Sec. 13.556. UNREASONABLE PREFERENCE OR PREJUDICE AS TO
2-18 RATES OR SERVICES. (a) a person who supplies water under this
2-19 subchapter may not make or grant any unreasonable preference or
2-20 advantage to any person within any classification or subject any
2-21 person within any classification to any unreasonable prejudice or
2-22 disadvantage.
2-23 (b) A person who supplies water under this subchapter may
2-24 not establish or maintain any unreasonable differences as to rates
2-25 for water either as between localities or as between classes of
2-26 service.
3-1 Sec. 13.557. EQUALITY OF RATES AND SERVICES. A person who
3-2 supplies water under this subchapter may not directly or indirectly
3-3 by any device or in any manner charge, demand, collect, or receive
3-4 from any person a greater or lesser compensation for any water
3-5 supplied by the person than that prescribed in the schedule of
3-6 rates of the person applicable to the supply of water by that
3-7 person, and a person may not knowingly receive or accept water from
3-8 a person for a compensation greater or less than that prescribed in
3-9 the schedule.
3-10 Sec. 13.558. DISCRIMINATION; RESTRICTION ON COMPETITION.
3-11 (a) A person who supplies water under this subchapter may not
3-12 discriminate against any person that provides water in competition
3-13 with the person or engage in any other practice that tends to
3-14 restrict or impair that competition.
3-15 (b) A person who supplies water under this subchapter by a
3-16 pipeline owned or operated by the person:
3-17 (1) shall receive and transport water delivered to the
3-18 person by other water suppliers and perform the person's other
3-19 related duties without discrimination; and
3-20 (2) may not:
3-21 (A) discriminate between or against other water
3-22 suppliers with regard to facilities provided, services rendered, or
3-23 rates charged under the same or similar circumstances in the
3-24 transportation of water; or
3-25 (B) discriminate in the transportation of water
3-26 produced or purchased by the person directly or indirectly.
4-1 (c) Notwithstanding the other provisions of this section, a
4-2 person may refuse to transport:
4-3 (1) raw water in a pipeline owned or operated by the
4-4 person if the pipeline is being used to transport potable water; or
4-5 (2) potable water in a pipeline owned or operated by
4-6 the person if the pipeline is being used to transport raw water.
4-7 Sec.13.559. CERTIFICATE OF CONVENIENCE AND NECESSITY.
4-8 (a) A person may not supply water to another person under this
4-9 subchapter unless the person supplying the water obtains from the
4-10 commission a certificate that the present or future public
4-11 convenience and necessity require that the water be supplied.
4-12 (b) In determining whether to grant a certificate of public
4-13 convenience and necessity, the commission shall ensure that the
4-14 person supplying the water possesses the financial, managerial, and
4-15 technical capability to provide continuous and adequate service.
4-16 Sec. 13.560. CONTINUOUS AND ADEQUATE SERVICE. A person that
4-17 possesses or is required to possess a certificate of public
4-18 convenience and necessity shall render continuous and adequate
4-19 service.
4-20 Sec. 13.561. APPROVAL OF WATER SUPPLY CONTRACT. A contract
4-21 to supply water under this subchapter is enforceable only if the
4-22 contract is approved by the commission after public notice and
4-23 hearing.
4-24 SECTION 2. This Act applies only to a water supply contract
4-25 that is entered into on or after the effective date of this Act.
4-26 SECTION 3. This Act takes effect immediately if it receives
5-1 a vote of two-thirds of all the members elected to each house, as
5-2 provided by Section 39, Article III, Texas Constitution. If this
5-3 Act does not receive the vote necessary for immediate effect, this
5-4 Act takes effect September 1, 2001.