bill tying water utility profits to rule compliance

The text as introduced · 246 words

89R15525 ANG-D

By: Zaffirini
S.B. No. 2499

A BILL TO BE ENTITLED

AN ACT

relating to the consideration of compliance with rules of the Texas

Commission on Environmental Quality in approving rates for water or

sewer utility services.

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

SECTION 1. Section 13.184(b), Water Code, is amended to

read as follows:

(b) In fixing a reasonable return on invested capital, the

regulatory authority shall consider, in addition to other

applicable factors, the efforts and achievements of the utility in

the conservation of resources, whether the utility is in compliance

with commission rules, the quality of the utility's services, the

efficiency of the utility's operations, and the quality of the

utility's management.

SECTION 2. Section 13.185, Water Code, is amended by adding

Subsection (g-1) to read as follows:

(g-1) When considering a utility's historic test year

information to determine reasonable and necessary expenses, the

regulatory authority shall consider whether the utility complied

with commission rules during that test year.

SECTION 3. 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 4. This Act takes effect September 1, 2025.