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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing a regulatory authority to establish reduced |
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water utility rates funded by donations for the benefit of elderly |
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customers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.182, Water Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) Except as provided by Subsection (b-1), rates may [Rates
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shall] not be unreasonably preferential, prejudicial, or |
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discriminatory but shall be sufficient, equitable, and consistent |
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in application to each class of consumers. |
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(b-1) In establishing a utility's rates, the regulatory |
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authority may authorize the utility to establish reduced rates for |
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a minimal level of service to be provided solely to a class of |
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elderly customers to ensure that those customers receive that level |
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of service at more affordable rates. The regulatory authority |
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shall allow a utility to establish a fund to receive donations to |
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recover the costs of providing the reduced rates. A utility may not |
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recover those costs through charges to the utility's other customer |
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classes. |
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SECTION 2. Section 13.189, Water Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) For purposes of this section, a reduced rate authorized |
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under Section 13.182(b-1) does not: |
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(1) make or grant an unreasonable preference or |
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advantage to any corporation or person; |
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(2) subject a corporation or person to an unreasonable |
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prejudice or disadvantage; or |
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(3) constitute an unreasonable difference as to rates |
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of service between classes of service. |
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SECTION 3. (a) The changes in law made by this Act apply |
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only to proceedings before a regulatory authority regarding water |
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utility rates concerning an application filed on or after January |
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1, 2018. Proceedings before a regulatory authority regarding water |
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utility rates concerning an application filed before January 1, |
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2018, are governed by the law in effect when the application was |
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filed, and the former law is continued in effect for that purpose. |
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(b) The Public Utility Commission of Texas and other |
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regulatory authorities shall adopt rules as necessary to implement |
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the changes in law made by this Act not later than December 31, |
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2017. |
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SECTION 4. This Act takes effect September 1, 2017. |