By: Flores S.B. No. 2161

(In the Senate - Filed March 10, 2025; March 24, 2025, read first time and referred to Committee on Water, Agriculture and Rural Affairs; April 15, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 7, Nays 0; April 15, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 2161 By: Hancock

A BILL TO BE ENTITLED

AN ACT

relating to expenses incurred in the appeal of rates for water or sewer service charged to certain customers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 13.043, Water Code, is amended by adding Subsection (e-1) to read as follows:

(e-1) A ratepayer of a municipally owned utility who resides outside the corporate limits of the municipality and is represented by an attorney may allege that rates prescribed by the municipally owned utility are excessive and, if the ratepayer is a prevailing party in a proceeding for review of the municipally owned utility's rates, and the regulatory authority finds that a rate increase by the municipally owned utility had no basis in fact or law, in the same action the ratepayer may recover reasonable fees for attorneys and expert witnesses and other costs incurred for the proceeding by the ratepayer. The amount of the attorney's fees shall be fixed by the utility commission.

SECTION 2. The changes in law made by this Act apply only to an appeal under Section 13.043(b), Water Code, that is filed on or after the effective date of this Act. An appeal that is filed before the effective date of this Act is governed by the law in effect on the date the appeal was filed, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.

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