79R6248 JJT-D

By:  Phillips                                                     H.B. No. 2132



A BILL TO BE ENTITLED

AN ACT

relating to rates charged for water or sewer services by an entity 
that takes over a nonfunctioning water or sewer system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 13, Water Code, is amended 
by adding Section 13.046 to read as follows:
	Sec. 13.046.  TEMPORARY RATES FOR SERVICES PROVIDED FOR 
NONFUNCTIONING SYSTEM; SANCTIONS FOR NONCOMPLIANCE.  (a)  The 
commission by rule shall establish a procedure that allows a retail 
public utility that takes over the provision of services for a 
nonfunctioning retail water or sewer utility service provider to 
charge a reasonable rate for the services provided to the customers 
of the nonfunctioning system and to bill the customers for the 
services at that rate immediately to recover service costs.
	(b)  The rules must provide a streamlined process that the 
retail public utility that takes over the nonfunctioning system may 
use to apply to the commission for a ruling on the reasonableness of 
the rates the utility is charging under Subsection (a).  The process 
must allow for adequate consideration of costs for interconnection 
or other costs incurred in making services available and of the 
costs that may necessarily be incurred to bring the nonfunctioning 
system into compliance with commission rules.
	(c)  The commission shall provide a reasonable period for the 
retail public utility that takes over the nonfunctioning system to 
bring the nonfunctioning system into compliance with commission 
rules during which the commission may not impose a penalty for any 
deficiency in the system that is present at the time the utility 
takes over the nonfunctioning system.  The commission must consult 
with the utility before determining the period and may grant an 
extension of the period for good cause.
	SECTION 2.  This Act takes effect September 1, 2005.