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