Monitoring the Session

HB 2506

Dorazio Water Rates Bill Reaches Only Cities Over 1 Million

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Mark DorazioRHouse 122
Why it's charged
Bracket bill

THE TEXT

“the utility is owned by a municipality with a population of more than one million”

Bill text, introduced version (I)

The population bracket limits the bill to the few Texas cities over one million people. The caption does say "certain" utilities, so the narrowing is partly disclosed.

Bracket bill

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to rates for water or sewer utility service provided by certain municipally owned utilities.

Caption from analyzed text · version I.

Summary

Drought plan on, rates up for customers outside city limits? The state rate rules apply.

The bill puts water and sewer rate hikes by city-owned utilities in cities of more than one million people under the state's utility rate rules when the hike hits customers living outside city limits. It only applies when the hike starts while the utility is using its drought contingency plan, and it treats the city utility like a large Class A private utility for that rate case. Out-of-city customers of those big-city utilities gain the same state rate-case process that private utility customers have, starting with rate cases that begin on or after September 1, 2025.

Labels

Labels: NEVER GOT A HEARING. Filed Feb 5, 2025 and referred to the House Natural Resources committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB2506 · 2025-02-05

SOLD BY

ITEM

relating to rates for water or sewer utility service provided by certain municipally owned utilities.

WHAT IT DOES

Drought plan on, rates up for customers outside city limits? The state rate rules apply.

The bill puts water and sewer rate hikes by city-owned utilities in cities of more than one million people under the state's utility rate rules when the hike hits customers living outside city limits. It only applies when the hike starts while the utility is using its drought contingency plan, and it treats the city utility like a large Class A private utility for that rate case. Out-of-city customers of those big-city utilities gain the same state rate-case process that private utility customers have, starting with rate cases that begin on or after September 1, 2025.

CHARGES

[x] BRACKET BILLanalysis confidence 45%

THE TEXT

“the utility is owned by a municipality with a population of more than one million”

Bill text, introduced version (I)

The population bracket limits the bill to the few Texas cities over one million people. The caption does say "certain" utilities, so the narrowing is partly disclosed.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Natural Resources
FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

“the rate increase is initiated on a date on which the utility is implementing any provision of the utility's drought contingency plan”

Bill text, introduced version (I)

The bill gives out-of-city water customers a state rate-case process when big-city utilities raise rates during drought.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Conservative Majority PAC$381,050.00

Texas Conservative Majority PAC

$381,050.00

Cash
$100,000.00
Paid by others
$281,050.00
Total
$381,050.00
canvassing $239,000.00advertising $25,000.00polling $17,050.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 14, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101069938, 101072345.

Texans for Truth and Liberty PAC$211,000.00

Texans for Truth and Liberty PAC

$211,000.00

Cash
$205,000.00
Paid by others
$6,000.00
Total
$211,000.00
polling $6,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 25, 2025 to Oct 6, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007777, 101036063, 101041570, 101069938, 101072345.

Texas Trial Lawyers Association PAC$160,036.00

Texas Trial Lawyers Association PAC

$160,036.00

Cash
$125,000.00
Paid by others
$35,036.00
Total
$160,036.00
mail $35,036.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Sep 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007777, 101036063, 101041570, 101061158, 101069938.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Conservative Majority PAC

$381,050.00

Cash
$100,000.00
Paid by others
$281,050.00
Total
$381,050.00
canvassing $239,000.00advertising $25,000.00polling $17,050.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 14, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101069938, 101072345.

×

Texans for Truth and Liberty PAC

$211,000.00

Cash
$205,000.00
Paid by others
$6,000.00
Total
$211,000.00
polling $6,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 25, 2025 to Oct 6, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007777, 101036063, 101041570, 101069938, 101072345.

×

Texas Trial Lawyers Association PAC

$160,036.00

Cash
$125,000.00
Paid by others
$35,036.00
Total
$160,036.00
mail $35,036.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Sep 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007777, 101036063, 101041570, 101061158, 101069938.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Feb 5, 2025

03/17/2025 H Referred to Natural Resources: Mar 17 2025 2:32PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Natural Resources · Final status: Died in committee

Subjects

City Government--Utilities

Utilities--Water & Sewer

Text

The text as introduced · 279 words

89R4819 CXP-D

By: Dorazio
H.B. No. 2506

A BILL TO BE ENTITLED

AN ACT

relating to rates for water or sewer utility service provided by

certain municipally owned utilities.

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

SECTION 1. Section 13.181, Water Code, is amended by

amending Subsection (a) and adding Subsections (c) and (d) to read

as follows:

(a) Except for the provisions of Section 13.192 and

Subsections (c) and (d) , this subchapter shall apply only to a

utility and shall not be applied to municipalities, counties,

districts, or water supply or sewer service corporations.

(c) This subchapter applies to the implementation of a rate

increase by a municipally owned utility for ratepayers residing

outside the corporate limits of the municipality if:

(1) the utility is owned by a municipality with a

population of more than one million; and

(2) the rate increase is initiated on a date on which

the utility is implementing any provision of the utility's drought

contingency plan.

(d) A municipally owned utility implementing a rate

increase described by Subsection (c) is considered to be a Class A

utility for the purposes of any proceeding under this subchapter

regarding the rate increase.

SECTION 2. The changes in law made by this Act apply only to

a rate proceeding under Chapter 13, Water Code, that begins on or

after the effective date of this Act. A rate proceeding that begins

before the effective date of this Act is governed by the law in

effect on the date the rate proceeding began, and the former law is

continued in effect for that purpose.

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