87R2067 JXC-D
 
  By: Schwertner S.B. No. 387
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the appeal of rates for water or sewer service charged
  to certain customers in the extraterritorial jurisdiction of a
  municipality.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 13, Water Code, is amended
  by adding Section 13.0442 to read as follows:
         Sec. 13.0442.  RATES CHARGED IN EXTRATERRITORIAL
  JURISDICTION BY NEW PROVIDER. (a) A ratepayer paying for water or
  sewer service in the extraterritorial jurisdiction of a
  municipality may appeal the rates for that service to the utility
  commission in the manner provided by this section if:
               (1)  the rates for the service increase when a new
  service provider takes over the provision of the service; and
               (2)  the retail public utility that is the new service
  provider is:
                     (A)  subject to the appellate jurisdiction of the
  utility commission under Section 13.043(b) for the service area; or
                     (B)  a utility permitted under Section 13.242(c).
         (b)  The ratepayer may appeal the increased rates by filing a
  petition for review with the utility commission and the service
  provider not later than the 90th day after the effective date of the
  increased rates.
         (c)  The petition must be signed by the lesser of 10,000 or 10
  percent of the ratepayers whose rates have been increased due to the
  takeover by the new service provider. Each person receiving a
  separate bill is considered a ratepayer, but one person may not be
  considered more than one ratepayer regardless of the number of
  bills the person receives. The petition for review is considered
  properly signed if signed by a person, or the spouse of a person, in
  whose name utility service is carried.
         (d)  The utility commission shall hear the appeal de novo and
  shall fix in its final order the rates the governing body of the
  provider should have fixed. The utility commission may establish
  the effective date for the utility commission's rates at the
  original effective date as proposed by the service provider, may
  order refunds or allow a surcharge to recover lost revenues, and may
  allow recovery of reasonable expenses incurred by the service
  provider in the appeal proceedings. The utility commission may
  consider only:
               (1)  the information that was available to the
  governing body that approved the increased rates at the time the
  governing body approved the rates; and 
               (2)  evidence of reasonable expenses incurred by the
  service provider in the appeal proceedings.
         (e)  The rates established by the utility commission remain
  in effect until the first anniversary of the effective date
  proposed by the service provider for the rates being appealed or
  until changed by the service provider, whichever date is later,
  unless the utility commission determines that a financial hardship
  exists.
         (f)  The utility commission may, on a motion by the utility
  commission or by the appellant, establish interim rates to be in
  effect until a final decision is made under this section.
         (g)  In an appeal under this section, the utility commission
  shall ensure that every rate made, demanded, or received by the
  service provider is just and reasonable. Rates may not be
  unreasonably preferential, prejudicial, or discriminatory but must
  be sufficient, equitable, and consistent in application to each
  class of customers. The utility commission shall use a methodology
  that preserves the financial integrity of the service provider.
         SECTION 2.  Section 13.1325, Water Code, is amended to read
  as follows:
         Sec. 13.1325.  ELECTRONIC COPIES OF RATE INFORMATION. On
  request, the utility commission shall provide, at a reasonable
  cost, electronic copies of or Internet access to all information
  provided to the utility commission under Sections 13.016, [and]
  13.043, 13.0442 and Subchapter F to the extent that the information
  is available and is not confidential. Copies of all information
  provided to the utility commission shall be provided to the Office
  of Public Utility Counsel, on request, at no cost to the office.
         SECTION 3.  (a) Notwithstanding Section 13.0442(b), Water
  Code, as added by this Act, a ratepayer described by Section
  13.0442(a), Water Code, as added by this Act, may use the appeal
  process in Section 13.0442, Water Code, as added by this Act, to
  appeal increased rates charged to the ratepayer by a new service
  provider by filing a petition for review with the Public Utility
  Commission of Texas and the service provider not later than
  December 1, 2021, if the new service provider began providing
  service to the ratepayer on or after September 1, 2016.
         (b)  Subsection (a) of this section applies only to rates
  that the service provider has not changed since the service
  provider began providing service to the ratepayer.
         SECTION 4.  This Act takes effect September 1, 2021.