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A BILL TO BE ENTITLED
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AN ACT
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relating to periodic rate adjustments by water and sewer utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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Subchapter F, Chapter 13, Water Code, is amended by |
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adding Section 13.193 as follows: |
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Sec. 13.193. PERIODIC RATE ADJUSTMENTS. (a) The |
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commission or a regulatory authority, on the petition of a water or |
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sewer utility described in Section 13.002(4-a), may approve a |
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tariff or rate schedule in which a nonfuel rate may be periodically |
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adjusted upward or downward, based on changes in the parts of the |
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utility's invested capital that serves the utility's certificated |
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service area, including a facility used for: |
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(1) the production, transmission, storage, |
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distribution, or provision of potable or recycled water to the |
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public; or |
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(2) the collection, transportation, treatment, |
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or disposal of sewage. |
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(b) The utility commission shall adopt rules as necessary to |
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implement Section 13.193. modeled on rules implementing Section |
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36.210, Utilities Code by September 1, 2015 providing that: |
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(1) the utility's revenue may not increase or |
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decrease by more than five percent, |
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(2) the facilities described in the petition have |
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been placed into service by the utility, |
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(3) the return on invested capital, depreciation |
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rate, and income tax rate is up to the amount |
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authorized in the utility's most recent rate |
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order, |
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(4) does not include the operating expenses |
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associated with the facilities described |
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in the petition, |
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(5) the utility has not filed a petition |
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authorized by this section in the prior |
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twelve months, |
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(6) the utility has not filed four petitions |
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authorized by this section since the utility's |
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last general rate application filed under |
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Section 13.187(a). |