HB 5209

relating to the consideration of compliance with rules of the Texas
Commission on Environmental Quality in approving rates for water or
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 13.184(b), Water Code, is amended to
(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
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.