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A BILL TO BE ENTITLED
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AN ACT
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relating to expenses incurred in the appeal of rates for water or |
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sewer service charged to certain customers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.043, Water Code, is amended by |
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amending Subsection (e) and adding Subsections (e-1) and (e-2) to |
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read as follows: |
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(e) In an appeal under Subsection (b), the utility |
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commission shall hear the appeal de novo and shall fix in its final |
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order the rates the governing body should have fixed in the action |
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from which the appeal was taken. The utility commission may |
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establish the effective date for the utility commission's rates at |
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the original effective date as proposed by the service provider |
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and[,] may order refunds or allow a surcharge to recover lost |
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revenues[, and may allow recovery of reasonable expenses incurred |
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by the retail public utility in the appeal proceedings. The utility |
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commission may consider only the information that was available to |
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the governing body at the time the governing body made its decision |
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and evidence of reasonable expenses incurred by the retail public |
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utility in the appeal proceedings]. The rates established by the |
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utility commission in an appeal under Subsection (b) remain in |
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effect until the first anniversary of the effective date proposed |
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by the retail public utility for the rates being appealed or until |
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changed by the service provider, whichever date is later, unless |
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the utility commission determines that a financial hardship exists. |
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(e-1) Any party represented by counsel who alleges that |
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existing rates are excessive or that rates prescribed by a |
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governing body are excessive and who is a prevailing party in |
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proceedings for review of a governing body decision may in the same |
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action recover reasonable fees for attorneys and expert witnesses |
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and other costs incurred by the prevailing party before the utility |
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commission. The amount of the attorney's fees shall be fixed by the |
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utility commission. |
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(e-2) On a finding by the utility commission that an action |
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under this subchapter was groundless and brought in bad faith and |
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for the purpose of harassment, the utility commission may award to |
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the defendant retail public utility reasonable attorney's fees. |
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SECTION 2. The changes in law made by this Act apply only to |
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an appeal under Section 13.043(b), Water Code, that is filed on or |
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after the effective date of this Act. An appeal that is filed |
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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 appeal was filed, 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. |