HB 2506
Dorazio Water Rates Bill Reaches Only Cities Over 1 Million
Died in committee
Verdict: Smells
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 billInitial 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
- Filed
- Read first time
- 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.
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
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.
TeamSources
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
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.
TeamSources
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
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.
TeamSources
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.
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
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.
TeamSources
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
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.
TeamSources
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
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.
TeamSources
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.