HB 1918
AN ACT relating to Class A water and sewer utility rate increases.
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Modifies rules for water and sewer utility rate increases in Texas, limiting utilities to filing rate increase requests only once every 36 months (extended from 12 months) unless they can prove financial hardship. The bill caps rate increases at 20% for any customer class, protecting consumers from significant sudden price jumps while providing utilities more flexibility in rate adjustment timing. The changes will apply to rate increase applications filed on or after September 1, 2025, affecting Class A water and sewer utility providers and their customers statewide.
Subject Areas
Bill Text
relating to Class A water and sewer utility rate increases. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 13.187, Water Code, is amended by amending Subsection (p) and adding Subsection (q) to read as (p) Except to implement a rate adjustment provision approved by the regulatory authority by rule or ordinance, as applicable, or to adjust the rates of a newly acquired utility system, a utility or two or more utilities under common control and ownership may not file a statement of intent to increase its rates more than once in a 36-month [12-month] period, unless the regulatory authority determines that a financial hardship exists. If the regulatory authority requires the utility to deliver a corrected statement of intent, the utility is not considered to be in violation of the 36-month [12-month] filing requirement. (q) A rate change under this section may not result in a rate increase to any class or category of ratepayer of more than 20 SECTION 2. The changes in law made by this Act apply only to an application for a rate increase that is filed on or after the effective date of this Act. An application that is filed before the effective date of this Act is subject to the law in effect at that time, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to Class A water and sewer utility rate increases.
Related Guides
Learn more about tracking Texas legislation and working with lobbyists.
How to Read & Track Texas Bills
Master bill numbering, understand legislative language, and learn effective tracking strategies.
Understanding Texas Legislative Deadlines
Navigate the 140-day session with critical calendar dates and filing deadlines.
How Laws Get Made in Texas
Follow a bill's journey from filing to the governor's desk through committees and floor votes.
When Should Your Business Hire a Lobbyist?
Discover the signs that your business needs professional advocacy at the Texas Capitol.