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A BILL TO BE ENTITLED
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AN ACT
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relating to the procedures by which certain small water and sewer |
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utilities may change rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 13, Water Code, is amended by adding |
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Subchapter F-1 to read as follows: |
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SUBCHAPTER F-1. RATE PROCEEDINGS OF CERTAIN |
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PUBLIC UTILITIES |
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Sec. 13.201. APPLICABILITY. This subchapter applies only |
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to a public utility that provides retail water or sewer utility |
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service through fewer than 1,000 taps or connections. |
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Sec. 13.202. EXEMPTION FROM PROCEEDINGS BEFORE REGULATORY |
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AUTHORITY. Notwithstanding Section 13.187, a public utility to |
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which this subchapter applies may make changes in its rates only as |
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prescribed by this subchapter. |
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Sec. 13.203. RATE CHANGE ELECTION. (a) A public utility |
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may make a change in its rates if the public utility holds an |
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election to obtain ratepayer approval of the rate change and the |
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rate change is approved under this section. |
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(b) A public utility holding an election under Subsection |
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(a) shall mail to each ratepayer: |
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(1) a description of the proposed rate change that |
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includes a billing comparison regarding the existing rates and the |
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proposed rates; |
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(2) an envelope addressed to the commission; |
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(3) for each tap or connection for which the ratepayer |
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receives a bill from the public utility, one ballot printed to |
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permit voting for or against the rate change; |
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(4) notice that the ratepayer must send the ballot to |
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the commission in the provided envelope for the ratepayer's vote to |
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be counted; and |
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(5) notice of the date described by Subsection (d) on |
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which the commission will stop accepting ballots for the election. |
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(c) The public utility may include with the envelope and |
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ballot a statement, not to exceed 10 letter-sized pages in length, |
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of the reason the public utility is holding the election. |
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(d) On or after the 61st day after the date the public |
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utility mails a ballot to each ratepayer under Subsection (b), the |
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commission shall count the ballots received by the commission. The |
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rate change is approved if a majority of the ballots received by the |
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commission not later than the 61st day after the date the public |
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utility mailed the ballots are cast in favor of the rate change. |
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(e) If the rate change is approved: |
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(1) the commission shall administratively certify the |
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rate change and provide written notice of the approval to the public |
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utility; and |
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(2) the public utility shall provide written notice of |
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the approval to each ratepayer. |
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Sec. 13.204. RATE CHANGE EFFECTIVE DATE. (a) A rate |
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change approved under this subchapter may not take effect before |
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the first day of a billing period that begins at least 60 days after |
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the date the public utility provides written notice of the approval |
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to each ratepayer. |
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(b) A rate change established under this subchapter may not |
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apply to service received before the effective date of the rate |
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change. |
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Sec. 13.205. PROCEEDINGS BEFORE REGULATORY AUTHORITY |
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ALLOWED. (a) A public utility may not file for a rate change under |
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Section 13.187 before holding an election under this subchapter. |
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(b) If a majority of the ballots received by the commission |
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under Section 13.203 are not cast in favor of the rate change: |
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(1) the public utility may file for a rate change under |
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Section 13.187; |
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(2) the public utility may not recover through its |
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rates the cost incurred by the utility under Section 13.187 or in an |
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appeal of a proceeding under that section; and |
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(3) the commission shall appoint a public advocate to |
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represent the ratepayers at any hearing conducted under Section |
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13.187. |
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Sec. 13.206. RATE CHANGE FREQUENCY. A public utility may |
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not hold an election under this subchapter more than once in a |
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24-month period unless: |
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(1) the public utility applies to the commission for |
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an exemption from this section; and |
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(2) the commission determines that the proposed rate |
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change is necessary to ensure the provision of continuous and |
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adequate service to the public utility's customers. |
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Sec. 13.207. APPLICATION OF OTHER PROVISIONS. (a) This |
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subchapter does not affect the application of a provision of this |
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title not directly related to the procedures for applying for and |
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receiving authority for a rate change. |
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(b) A service fee or service rule set by a public utility |
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under this subchapter must comply with commission rules that apply |
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to all retail public utilities. |
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(c) This subchapter does not affect: |
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(1) the authority of the commission under Section |
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13.186 to determine if a public utility has unlawfully charged or |
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received a rate for retail water or sewer utility service under this |
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chapter; or |
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(2) the authority of a public utility to adjust the |
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utility's rates outside the rate case process as otherwise allowed |
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by this subchapter. |
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SECTION 2. This Act applies only to a proposed rate change |
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for which a statement of intent has not been filed under Section |
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13.187, Water Code, before the effective date of this Act. A |
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proposed rate change to which a statement of intent filed before the |
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effective date of this Act applies is governed by the law in effect |
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on the date the statement was filed, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |