bill freezing water rate cases during utility buyouts

The text as introduced · 428 words

90R963 CXP-D

By: Walle
H.B. No. 240

A BILL TO BE ENTITLED

AN ACT

relating to rate proceedings for water or sewer service conducted

during or after the purchase of a water or sewer system by a

utility.

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

SECTION 1. Section 13.3011, Water Code, is amended to read

as follows:

Sec. 13.3011. INITIAL RATES FOR CERTAIN WATER OR SEWER

SYSTEMS AFTER PURCHASE OR ACQUISITION BY UTILITY . (a) A utility

that [ person who ] files an application described by Section

13.301(a) for the purchase or acquisition of a water or sewer

system :

(1) may :

(A) charge customers of the system initial rates

for the service that are equal to the rates that are in force for the

system on the date the application described by Section 13.301(a)

is filed; or

(B) request that the regulatory authority with

original jurisdiction over the rates for water or sewer service

provided by the utility [ person ] to the customers of the system

authorize the utility [ person ] to charge initial rates for the

service that are:

(i) [ (1) ] shown in a tariff filed with a

regulatory authority by the utility [ person ] for another water or

sewer system; and

(ii) [ (2) ] in force for the other water or

sewer system on the date the application described by Section

13.301(a) is filed ; and

(2) may not initiate a new rate proceeding during the

pendency of the purchase or acquisition .

(b) The regulatory authority may not require a utility that

[ person who ] makes a request under Subsection (a)(1)(B) [ (a) ] to

initiate a new rate proceeding to establish the initial rates for

service the utility [ person ] will provide to the customers of the

purchased or acquired system.

(c) This section does not apply to rates charged under

Section 13.046.

SECTION 2. Section 13.3011, Water Code, as amended by this

Act, applies only to a purchase or acquisition of a water or sewer

system the application for which is filed under Section 13.301(a),

Water Code, on or after the effective date of this Act. A purchase

or acquisition of a water or sewer system the application for which

is filed under Section 13.301(a), Water Code, before the effective

date of this Act is governed by the law in effect on the date the

application was filed, and the former law is continued in effect for

that purpose.

SECTION 3. This Act takes effect September 1, 2027.