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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of compliance with rules of the Texas |
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Commission on Environmental Quality in approving rates for water or |
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sewer utility services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.184(b), Water Code, is amended to |
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read as follows: |
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(b) In fixing a reasonable return on invested capital, the |
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regulatory authority shall consider, in addition to other |
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applicable factors, the efforts and achievements of the utility in |
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the conservation of resources, whether the utility is in compliance |
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with commission rules, the quality of the utility's services, the |
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efficiency of the utility's operations, and the quality of the |
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utility's management. |
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SECTION 2. Section 13.185, Water Code, is amended by adding |
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Subsection (g-1) to read as follows: |
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(g-1) When considering a utility's historic test year |
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information to determine reasonable and necessary expenses, the |
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regulatory authority shall consider whether the utility complied |
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with commission rules during that test year. |
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SECTION 3. 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 4. This Act takes effect September 1, 2025. |