Bill Text: TX HB2399 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to allowing a water and sewer utility to assess a utility facilities construction and improvement charge to recover certain costs associated with certain construction and improvement projects.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-22 - Left pending in committee [HB2399 Detail]
Download: Texas-2011-HB2399-Introduced.html
| 82R1887 RWG-F | ||
| By: Miller of Comal | H.B. No. 2399 | |
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| relating to allowing a water and sewer utility to assess a utility | ||
| facilities construction and improvement charge to recover certain | ||
| costs associated with certain construction and improvement | ||
| projects. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter F, Chapter 13, Water Code, is amended | ||
| by adding Section 13.193 to read as follows: | ||
| Sec. 13.193. UTILITY FACILITIES CONSTRUCTION AND | ||
| IMPROVEMENT CHARGE. (a) Notwithstanding any other provision of | ||
| this chapter, a utility may assess a utility facilities | ||
| construction and improvement charge to recover the depreciation and | ||
| return on investment of a utility facilities construction and | ||
| improvement project that: | ||
| (1) is completed and placed into service between two | ||
| consecutive statements of intent to change the utility's rates or | ||
| tariff filed under Section 13.187; and | ||
| (2) serves the utility's certificated service area, | ||
| including a facility used for: | ||
| (A) the production, transmission, storage, | ||
| distribution, or provision of potable or recycled water to the | ||
| public; or | ||
| (B) the collection, transportation, treatment, | ||
| or disposal of sewage. | ||
| (b) The commission by rule shall require a utility that | ||
| proposes to assess a utility facilities construction and | ||
| improvement charge under this section: | ||
| (1) to file a tariff establishing a just and | ||
| reasonable manner for calculating the charge; and | ||
| (2) to receive the executive director's approval of | ||
| the tariff. | ||
| (c) In adopting rules under Subsection (b), the commission | ||
| shall ensure that: | ||
| (1) not later than the 60th day before a utility's | ||
| proposed inclusion of a charge or a proposed increase of a charge in | ||
| a tariff under this section, the utility submits to the executive | ||
| director for review of a project's eligibility a written notice | ||
| that contains: | ||
| (A) the amount of the proposed charge or increase | ||
| of a charge; | ||
| (B) the proposed implementation date for the | ||
| charge or increase of a charge; | ||
| (C) a list of completed, eligible capital | ||
| projects, and related depreciation and return on investment for | ||
| which the utility seeks reimbursement through the charge or | ||
| increase of a charge; and | ||
| (D) a calculation of the projected total annual | ||
| increase in revenue due to the charge or increase of a charge; | ||
| (2) the total amount the utility is authorized to | ||
| recover annually through a charge assessed under this section and | ||
| the amount the utility actually recovers are subject to annual | ||
| audit by the executive director; | ||
| (3) the amount of the charge the utility requests | ||
| authorization to assess is based on the amount necessary to ensure | ||
| that the charge yields a rate of return on invested capital that is | ||
| equal to: | ||
| (A) the rate of return approved for the utility | ||
| in the utility's most recent approved base rate or tariff change | ||
| application filed under Section 13.187; or | ||
| (B) the rate of return proposed by the utility, | ||
| if the rates in the utility's most recent base rate or tariff change | ||
| application were approved by settlement; | ||
| (4) the cumulative annual amount the utility proposes | ||
| to recover from the charge does not exceed an amount equal to 10 | ||
| percent of the utility's annual revenue; | ||
| (5) the utility does not implement an increase under | ||
| this section more often than twice every calendar year; | ||
| (6) the charge is applied to each customer included in | ||
| the tariff; | ||
| (7) the utility provides to each customer written | ||
| notice of the charge on the initial tariff filing that proposes to | ||
| implement the charge; and | ||
| (8) the charge is subject to a true-up or | ||
| reconciliation at the utility's next rate case filed under Section | ||
| 13.187. | ||
| (d) Notwithstanding any other provision of this code, the | ||
| implementation of a utility facilities construction and | ||
| improvement charge or an increase in a utility facilities | ||
| construction and improvement charge is not subject to a contested | ||
| case hearing under Chapter 2001, Government Code. | ||
| (e) This section does not apply to a utility that has in | ||
| place a negotiated stay-out agreement on September 1, 2011. | ||
| SECTION 2. The changes in law made by Section 13.193, Water | ||
| Code, as added by this Act, apply only to a project that is | ||
| completed and placed into service on or after the effective date of | ||
| this Act. A project that is completed and placed into service 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. The Texas Commission on Environmental Quality | ||
| shall adopt rules consistent with Section 13.193, Water Code, as | ||
| added by this Act, not later than December 1, 2011. | ||
| SECTION 4. This Act takes effect September 1, 2011. | ||
