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