By:  Turner (Senate Sponsor - Ellis)                              H.B. No. 2301
	(In the Senate - Received from the House May 10, 2005; 
May 12, 2005, read first time and referred to Committee on Natural 
Resources; May 20, 2005, reported favorably by the following vote:  
Yeas 9, Nays 0; May 20, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to proceedings involving the change of rates of a water and 
sewer utility.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 13.187, Water Code, is amended by 
amending Subsections (c), (d), and (k) and adding Subsection (d-1) 
to read as follows:
	(c)  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.  If the utility fails to provide within 
a reasonable time 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.
	(d)  Except as provided by Subsection (d-1), if [If] the 
application or the statement of intent is not substantially 
complete or does not comply with the regulatory authority's rules, 
it may be rejected and the effective date of the rate change may be 
suspended until a properly completed application is accepted by the 
regulatory authority and a proper statement of intent is provided.  
The commission may also suspend the effective date of any rate 
change if the utility does not have a certificate of public 
convenience and necessity or a completed application for a 
certificate or to transfer a certificate pending before the 
commission or if the utility is delinquent in paying the assessment 
and any applicable penalties or interest required by Section 
5.701(n) of this code.
	(d-1)  After written notice to the utility, a local 
regulatory authority may suspend the effective date of a rate 
change for not more than 90 days from the proposed effective date, 
except that the suspension shall be extended by two days for each 
day a hearing exceeds 15 days.  If the local regulatory authority 
does not make a final determination on the proposed rate before the 
expiration of the applicable suspension period, the proposed rate 
shall be considered approved.  The approval is subject to the local 
regulatory authority's continuation of a hearing in progress.
	(k)  If the regulatory authority receives at least the number 
of complaints from ratepayers required for the regulatory authority 
to set a hearing under Subsection (e), the regulatory authority 
may, pending the hearing and a decision, suspend the date the rate 
change would otherwise be effective. Except as provided by 
Subsection (d-1), the [The] proposed rate may not be suspended for 
longer than:
		(1)  90 days by a local regulatory authority; or                              
		(2)  150 days by the commission.                                              
	SECTION 2.  This Act takes effect September 1, 2005.                           



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