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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of rate case expenses by a water and sewer |
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utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.185, Water Code, is amended by |
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amending Subsection (d) and adding Subsection (h-1) to read as |
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follows: |
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(d) Net income is the total revenues of the utility less all |
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reasonable and necessary expenses as determined by the regulatory |
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authority. The regulatory authority shall determine expenses and |
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revenues in a manner consistent with Subsections (e) through (h-1) |
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[(h) of this section]. |
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(h-1) The regulatory authority may not include for |
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ratemaking purposes any rate case expenses incurred by a water and |
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sewer utility in a contested proceeding under Section 13.187, or in |
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an appeal of that proceeding, if the local regulatory authority |
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holds a hearing on those rates under Section 13.187 and the utility |
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fails to appear at or fully participate in that hearing. This |
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subsection does not apply to expenses the utility is authorized to |
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recover under Section 13.084. |
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SECTION 2. The changes in law made by this Act apply only to |
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a rate proceeding before the governing body of a municipality that |
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commences on or after the effective date of this Act. A rate |
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proceeding before the governing body of a municipality that |
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commenced before the effective date of this Act is governed by the |
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law in effect on the date the proceeding commenced, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |