HB 2923
AN ACT relating to the jurisdiction of the Public Utility Commission of
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 the Public Utility Commission of Texas's jurisdiction over water and sewer service rates, specifically limiting the commission's oversight of municipal wholesale water rates. The legislation restricts the commission's ability to review and challenge water rates between political subdivisions, ensuring that wholesale water and sewer service rates can be set with more local autonomy. The act aims to preserve the financial integrity of utilities while maintaining that rates remain just, reasonable, and non-discriminatory when wholesale water services are provided between different political entities.
Subject Areas
Bill Text
relating to the jurisdiction of the Public Utility Commission of Texas over certain rates for water or sewer service charged by a BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 12.013(b) and (d), Water Code, are (b) In this section, "political subdivision" means municipalities [incorporated cities, towns or villages], counties, river authorities, water districts, and other special purpose (d) The utility commission's jurisdiction under this section relating to a municipality [incorporated cities, towns, or villages] shall be limited to water furnished by the municipality [such city, town, or village] to another political subdivision, other than another municipality, on a wholesale basis. SECTION 2. Section 13.043, Water Code, is amended by adding Subsection (f-1) and amending Subsection (j) to read as follows: (f-1) Subsection (f) does not apply to a decision of a municipality regarding wholesale water or sewer service provided to (j) In an appeal under this section, the utility commission shall ensure that every appealed rate is just and reasonable. Rates shall not be unreasonably preferential, prejudicial, or discriminatory but shall be sufficient, equitable, and consistent in application to each class of customers. The utility commission shall use a methodology that preserves the financial integrity of the retail public utility. [For agreements between municipalities the utility commission shall consider the terms of any wholesale water or sewer service agreement in an appellate rate proceeding.] SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the jurisdiction of the Public Utility Commission of
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