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A BILL TO BE ENTITLED
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AN ACT
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relating to the jurisdiction of the Public Utility Commission of |
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Texas over certain rates for water or sewer service charged by 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. Sections 12.013(b) and (d), Water Code, are |
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amended to read as follows: |
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(b) In this section, "political subdivision" means |
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municipalities [incorporated cities, towns or villages], counties, |
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river authorities, water districts, and other special purpose |
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districts. |
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(d) The utility commission's jurisdiction under this |
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section relating to a municipality [incorporated cities, towns, or |
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villages] shall be limited to water furnished by the municipality |
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[such city, town, or village] to another political subdivision, |
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other than another municipality, on a wholesale basis. |
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SECTION 2. Section 13.043, Water Code, is amended by adding |
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Subsection (f-1) and amending Subsection (j) to read as follows: |
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(f-1) Subsection (f) does not apply to a decision of a |
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municipality regarding wholesale water or sewer service provided to |
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another municipality. |
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(j) In an appeal under this section, the utility commission |
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shall ensure that every appealed rate is just and reasonable. 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 customers. The utility commission |
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shall use a methodology that preserves the financial integrity of |
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the retail public utility. [For agreements between municipalities |
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the utility commission shall consider the terms of any wholesale |
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water or sewer service agreement in an appellate rate proceeding.] |
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SECTION 3. This Act takes effect September 1, 2025. |