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A BILL TO BE ENTITLED
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AN ACT
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relating to rates charged by a water and sewer utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.182, Water Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) Except as provided by Section 13.4133, a utility may not |
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implement a rate change concerning which a hearing is set under |
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Section 13.187 until the date on which the regulatory authority |
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issues a final decision on the change. |
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SECTION 2. Section 13.185(h), Water Code, is amended to |
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read as follows: |
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(h) The regulatory authority may not include for ratemaking |
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purposes: |
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(1) legislative advocacy expenses, whether made |
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directly or indirectly, including legislative advocacy expenses |
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included in trade association dues; |
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(2) costs of processing a refund or credit under |
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Section 13.187 [of this chapter]; [or] |
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(3) rate case expenses, other than expenses described |
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by Section 13.084; or |
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(4) any expenditure found by the regulatory authority |
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to be unreasonable, unnecessary, or not in the public interest, |
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including executive salaries, advertising expenses, legal |
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expenses, and civil penalties or fines. |
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SECTION 3. Sections 13.187(a), (d), (e), (f), and (k), |
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Water Code, are amended to read as follows: |
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(a) A utility may not make changes in its rates except by |
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delivering a statement of intent to each ratepayer and with the |
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regulatory authority having original jurisdiction at least 120 [60] |
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days before the proposed effective date of the proposed change. The |
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proposed effective date of the new rates must be the first day of a |
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billing period, and the new rates may not apply to service received |
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before the proposed effective date of the new rates. The statement |
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of intent must include: |
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(1) the information required by the regulatory |
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authority's rules; |
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(2) a billing comparison regarding the existing water |
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rate and the new water rate computed for the use of: |
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(A) 10,000 gallons of water; and |
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(B) 30,000 gallons of water; and |
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(3) a billing comparison regarding the existing sewer |
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rate and the new sewer rate computed for the use of 10,000 gallons, |
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unless the utility proposes a flat rate for sewer services. |
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(d) If [Except as provided by Subsection (d-1), if] the |
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application or the statement of intent is not substantially |
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complete or does not comply with the regulatory authority's rules, |
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it may be rejected and the proposed effective date of the rate |
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change may be suspended until a properly completed application is |
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accepted by the regulatory authority and a proper statement of |
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intent is provided. The commission may also suspend the proposed |
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effective date of any rate change if the utility does not have a |
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certificate of public convenience and necessity or a completed |
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application for a certificate or to transfer a certificate pending |
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before the commission or if the utility is delinquent in paying the |
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assessment and any applicable penalties or interest required by |
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Section 5.701(n) of this code. |
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(e) The regulatory authority shall hold a hearing on the |
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proposed rate increase if, [If,] before the 91st day after the |
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[effective] date the statement of intent was provided to the |
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authority and each ratepayer under Subsection (a) [of the rate
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change], the regulatory authority receives a complaint from any |
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affected municipality, or from the lesser of 1,000 or 10 percent of |
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the ratepayers of the utility over whose rates the regulatory |
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authority has original jurisdiction[, the regulatory authority
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shall set the matter for hearing]. |
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(f) The regulatory authority may set the matter for hearing |
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on its own motion at any time within 120 days after the [effective] |
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date the statement of intent was provided to the authority and each |
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ratepayer under Subsection (a) [of the rate change]. If more than |
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half of the ratepayers of the utility receive service in a county |
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with a population of more than 2.5 million, the hearing must be held |
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at a location in that county. |
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(k) If the regulatory authority sets the matter for |
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[receives at least the number of complaints from ratepayers
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required for the regulatory authority to set] a hearing under |
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Subsection (e), the regulatory authority shall [may], pending the |
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hearing and a decision, suspend the date the rate change would |
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otherwise be effective until the date the regulatory authority |
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issues a final decision on the matter. [Except as provided by
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Subsection (d-1), the proposed rate may not be suspended for longer
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than:
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[(1)90 days by a local regulatory authority; or
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[(2)150 days by the commission.] |
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SECTION 4. Sections 13.187(d-1), (i), (j), (l), (m), (n), |
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and (o), Water Code, are repealed. |
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SECTION 5. This Act applies only to a statement of intent |
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filed on or after the effective date of this Act. A rate change to |
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which a statement of intent filed before the effective date of this |
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Act applies is governed by the law in effect on the date the |
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statement was filed, and that law is continued in effect for that |
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purpose. |
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SECTION 6. This Act takes effect September 1, 2007. |