Bill Text: TX HB856 | 2011-2012 | 82nd Legislature | Introduced

---

Bill Title: Relating to the powers and duties of the Texas Commission on Environmental Quality and other entities regarding water and sewer utilities.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2011-04-20 - Left pending in committee [HB856 Detail]

Download: Texas-2011-HB856-Introduced.html

---

82R1648 RWG-D
By: Dutton H.B. No. 856

A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Texas Commission on
Environmental Quality and other entities regarding water and sewer
utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 13.187(a), (b), (d), (e), (f), (k),
(o), and (p), Water Code, are amended to read as follows:
(a) A utility may not make changes in its rates except by
delivering a statement of intent to each ratepayer and [with] the
regulatory authority having original jurisdiction at least 120 [60]
days before the proposed effective date of the proposed change. The
proposed effective date of the new rates must be the first day of a
billing period, and the new rates may not apply to service received
before the proposed effective date of the new rates. The statement
of intent must include:
(1) the information required by the regulatory
authority's rules;
(2) a billing comparison regarding the existing water
rate and the new water rate computed for the use of:
(A) 10,000 gallons of water; and
(B) 30,000 gallons of water; and
(3) a billing comparison regarding the existing sewer
rate and the new sewer rate computed for the use of 10,000 gallons,
unless the utility proposes a flat rate for sewer services.
(b) A copy of the statement of intent shall be mailed or
delivered to the appropriate offices of each affected municipality,
to the executive director, and to any [other] affected persons as
required by the regulatory authority's rules.
(d) If [Except as provided by Subsection (d-1), if] the
application or the statement of intent is not substantially
complete or does not comply with the regulatory authority's rules,
it may be rejected and the proposed effective date of the rate
change may be suspended until a properly completed application is
accepted by the regulatory authority and a proper statement of
intent is provided. The commission may also suspend the proposed
effective date of any rate change if the utility does not have a
certificate of public convenience and necessity or a completed
application for a certificate or to transfer a certificate pending
before the commission or if the utility is delinquent in paying the
assessment and any applicable penalties or interest required by
Section 5.701(n) of this code.
(e) The regulatory authority shall hold a hearing on the
proposed rate increase if [If], before the 91st day after the
[effective] date the statement of intent was provided to the
authority and each ratepayer under Subsection (a) [of the rate
change], the regulatory authority receives a complaint from any
affected municipality, or from the lesser of 1,000 or 10 percent of
the ratepayers of the utility over whose rates the regulatory
authority has original jurisdiction[, the regulatory authority
shall set the matter for hearing].
(f) The regulatory authority may set the matter for hearing
on its own motion at any time within 120 days after the [effective]
date the statement of intent was provided to the authority and each
ratepayer under Subsection (a) [of the rate change]. If more than
half of the ratepayers of the utility receive service in a county
with a population of more than 2.5 million, the hearing must be held
at a location in that county.
(k) If the regulatory authority sets the matter for
[receives at least the number of complaints from ratepayers
required for the regulatory authority to set] a hearing under
Subsection (e), the proposed rates are suspended [regulatory
authority may,] pending the hearing and until the date the
regulatory authority issues a final decision on the matter [a
decision, suspend the date the rate change would otherwise be
effective. Except as provided by Subsection (d-1), the proposed
rate may not be suspended for longer than:
[(1) 90 days by a local regulatory authority; or
[(2) 150 days by the commission].
(o) If the [a] regulatory authority does not set a hearing
on the proposed rate increase under Subsection (e) or (f), [other
than the commission establishes interim rates or an escrow account,
the regulatory authority must make a final determination on the
rates not later than the first anniversary of the effective date of
the interim rates or escrowed rates or] the rates are automatically
approved as requested by the utility.
(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. A
utility or two or more utilities under common control and ownership
must file a statement of intent to increase its rates no later than
60 months after the effective date of the utility's last rate
increase unless the utility can show good cause to delay the filing.
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.
SECTION 2. Sections 13.187(d-1), (i), (j), (l), (m), and
(n), Water Code, are repealed.
SECTION 3. Except as otherwise provided by this Act, this
Act applies only to a statement of intent filed on or after the
effective date of this Act. A rate change to which a statement of
intent filed before the effective date of this Act applies is
governed by the law in effect on the date the statement was filed,
and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2011.