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A BILL TO BE ENTITLED
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AN ACT
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relating to Class A water and sewer utility rate increases. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.187, Water Code, is amended by |
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amending Subsection (p) and adding Subsection (q) to read as |
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follows: |
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(p) Except to implement a rate adjustment provision |
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approved by the regulatory authority by rule or ordinance, as |
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applicable, or to adjust the rates of a newly acquired utility |
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system, a utility or two or more utilities under common control and |
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ownership may not file a statement of intent to increase its rates |
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more than once in a 36-month [12-month] period, unless the |
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regulatory authority determines that a financial hardship exists. |
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If the regulatory authority requires the utility to deliver a |
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corrected statement of intent, the utility is not considered to be |
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in violation of the 36-month [12-month] filing requirement. |
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(q) A rate change under this section may not result in a rate |
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increase to any class or category of ratepayer of more than 20 |
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percent. |
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SECTION 2. The changes in law made by this Act apply only to |
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an application for a rate increase that is filed on or after the |
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effective date of this Act. An application that is filed before the |
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effective date of this Act is subject to the law in effect at that |
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time, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |