By: Staples S.B. No. 1064
(In the Senate - Filed March 7, 2005; March 21, 2005, read
first time and referred to Committee on Natural Resources;
April 20, 2005, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0; April 20, 2005,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1064 By: Staples
A BILL TO BE ENTITLED
AN ACT
relating to rate changes by a water and sewer utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.182, Water Code, is amended by adding
Subsection (e) to read as follows:
(e) Except as provided by Section 13.4133, a utility may not
implement a rate change concerning which a hearing is set under
Section 13.187 until the date on which the regulatory authority
issues a final decision on the change.
SECTION 2. Section 13.187, Water Code, is amended by
amending Subsections (a), (d), (e), (f), (k), and (l) and adding
Subsection (e-1) to read as follows:
(a) A utility may not make changes in its rates except by
delivering a statement of intent to each ratepayer and with the
regulatory authority having original jurisdiction at least 120 [60]
days before the proposed effective date of the proposed change. The
proposed effective date of the new rates must be the first day of a
billing period, and the new rates may not apply to service received
before the proposed effective date of the new rates. The statement
of intent must include:
(1) the information required by the regulatory
authority's rules;
(2) a billing comparison regarding the existing water
rate and the new water rate computed for the use of:
(A) 3,000 gallons of water;
(B) 10,000 gallons of water; and
(C) [(B)] 30,000 gallons of water; and
(3) a billing comparison regarding the existing sewer
rate and the new sewer rate computed for the use of 3,000 gallons
and 10,000 gallons, unless the utility proposes a flat rate for
sewer services.
(d) 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 proposed 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 proposed 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].
(e) The regulatory authority shall set a hearing on the
proposed rate increase if, [If,] before the 91st day after the
[effective] date the statement of intent was provided to the
authority and each ratepayer under Subsection (a) [of the rate
change], the regulatory authority receives a complaint from any
affected municipality, or from the lesser of 1,000 or 10 percent of
the ratepayers of the utility over whose rates the regulatory
authority has original jurisdiction. A hearing under this
subsection must be set not later than the 120th day after the date
the statement of intent was provided[, the regulatory authority
shall set the matter for hearing].
(e-1) If the regulatory authority receives a complaint from
any affected municipality, or from the lesser of 1,000 or 10 percent
of the ratepayers of the utility over whose rates the regulatory
authority has original jurisdiction, the regulatory authority
shall, not later than the 120th day after the date the utility files
with the regulatory authority an application to change rates and
delivers a statement of intent to each ratepayer, hold a public
meeting to receive public comments on the proposed rate increase.
The regulatory authority may hold the public meeting in any
location the regulatory authority determines is appropriate. The
regulatory authority shall require the utility to publish notice of
the public meeting at least once in the newspaper of largest
circulation in each county in which affected ratepayers are
located. The notice must state:
(1) the time, location, and nature of the public
meeting; and
(2) a description, including a telephone number, of
the manner in which a person may contact the regulatory authority
for further information.
(f) The regulatory authority may set the matter for hearing
on its own motion at any time within 120 days after the [effective]
date the statement of intent was provided to the authority and each
ratepayer under Subsection (a) [of the rate change]. If more than
half of the ratepayers of the utility receive service in a county
with a population of more than 2.5 million, the hearing must be held
at a location in that county.
(k) If the regulatory authority sets the matter for
[receives at least the number of complaints from ratepayers
required for the regulatory authority to set] a hearing under
Subsection (e), the regulatory authority shall:
(1) [may,] pending the hearing and a decision, suspend
the date the rate change would otherwise be effective until the date
the regulatory authority issues a final decision on the matter; and
(2) fix interim rates as provided by Subsection (l).
[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.]
(l) If the regulatory authority sets the matter for a
hearing, the regulatory authority shall, not later than the 120th
day after the date the statement of intent is filed, [At any time
during the pendency of the rate proceeding the regulatory authority
may] fix interim rates to remain in effect until a final
determination is made on the proposed rate.
SECTION 3. Subsections (i), (j), (n), and (o), Section
13.187, Water Code, are repealed.
SECTION 4. This Act applies only to a statement of intent
filed on or after the effective date of this Act. A rate change to
which a statement of intent filed before the effective date of this
Act applies is governed by the law in effect on the date the
statement was filed, and that law is continued in effect for that
purpose.
SECTION 5. This Act takes effect September 1, 2005.
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