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A BILL TO BE ENTITLED
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AN ACT
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relating to rates for water or sewer utility service provided by |
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certain municipally owned utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.181, Water Code, is amended by |
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amending Subsection (a) and adding Subsections (c) and (d) to read |
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as follows: |
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(a) Except for the provisions of Section 13.192 and |
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Subsections (c) and (d), this subchapter shall apply only to a |
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utility and shall not be applied to municipalities, counties, |
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districts, or water supply or sewer service corporations. |
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(c) This subchapter applies to the implementation of a rate |
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increase by a municipally owned utility for ratepayers residing |
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outside the corporate limits of the municipality if: |
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(1) the utility is owned by a municipality with a |
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population of more than one million; and |
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(2) the rate increase is initiated on a date on which |
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the utility is implementing any provision of the utility's drought |
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contingency plan. |
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(d) A municipally owned utility implementing a rate |
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increase described by Subsection (c) is considered to be a Class A |
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utility for the purposes of any proceeding under this subchapter |
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regarding the rate increase. |
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SECTION 2. The changes in law made by this Act apply only to |
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a rate proceeding under Chapter 13, Water Code, that begins on or |
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after the effective date of this Act. A rate proceeding that begins |
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before the effective date of this Act is governed by the law in |
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effect on the date the rate proceeding began, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |