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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of the Texas Commission on |
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Environmental Quality and other entities regarding water and sewer |
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utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 13.187(a), (b), (d), (e), (f), (k), |
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(o), and (p), 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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(b) A copy of the statement of intent shall be mailed or |
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delivered to the appropriate offices of each affected municipality, |
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to the executive director, and to any [other] affected persons as |
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required by the regulatory authority's rules. |
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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 proposed rates are suspended [regulatory
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authority may,] pending the hearing and until the date the |
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regulatory authority issues a final decision on the matter [a
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decision, suspend the date the rate change would otherwise be
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effective. Except as provided by Subsection (d-1), the proposed
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rate may not be suspended for longer 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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(o) If the [a] regulatory authority does not set a hearing |
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on the proposed rate increase under Subsection (e) or (f), [other
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than the commission establishes interim rates or an escrow account,
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the regulatory authority must make a final determination on the
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rates not later than the first anniversary of the effective date of
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the interim rates or escrowed rates or] the rates are automatically |
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approved as requested by the utility. |
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(p) Except to implement a rate adjustment provision |
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approved by the regulatory authority by rule or ordinance, as |
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applicable, or to adjust the rates of a newly acquired utility |
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system, a utility or two or more utilities under common control and |
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ownership may not file a statement of intent to increase its rates |
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more than once in a 36-month [12-month] period, unless the |
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regulatory authority determines that a financial hardship exists. A |
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utility or two or more utilities under common control and ownership |
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must file a statement of intent to increase its rates no later than |
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60 months after the effective date of the utility's last rate |
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increase unless the utility can show good cause to delay the filing. |
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If the regulatory authority requires the utility to deliver a |
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corrected statement of intent, the utility is not considered to be |
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in violation of the 36-month [12-month] filing requirement. |
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SECTION 2. Sections 13.187(d-1), (i), (j), (l), (m), and |
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(n), Water Code, are repealed. |
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SECTION 3. Except as otherwise provided by this Act, this |
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Act applies only to a statement of intent filed on or after the |
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effective date of this Act. A rate change to which a statement of |
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intent filed before the effective date of this Act applies is |
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governed by the law in effect on the date the statement was filed, |
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and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |