Bill Text: TX HB1424 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the structuring of water rates by retail public utilities to promote water conservation; authorizing a fee.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-20 - Filed [HB1424 Detail]

Download: Texas-2025-HB1424-Introduced.html

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89R2013 ANG-D
By: Goodwin H.B. No. 1424

A BILL TO BE ENTITLED
AN ACT
relating to the structuring of water rates by retail public
utilities to promote water conservation; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 552, Local Government
Code, is amended by adding Section 552.9065 to read as follows:
Sec. 552.9065. WATER CONSERVATION RATE AND FEE. The
governing body of a municipality may by ordinance:
(1) structure the municipality's rates for water
service in a manner that promotes water conservation by all of the
municipality's water customers so that customers in a class who
consume greater amounts of water pay a higher rate per unit volume
than customers in a class who consume lesser amounts of water; and
(2) establish an excessive use fee for water customers
whose water usage is greater than the water usage of a percentage of
the municipality's other customers.
SECTION 2. The heading to Section 13.182, Water Code, is
amended to read as follows:
Sec. 13.182. JUST AND REASONABLE RATES; WATER CONSERVATION
RATE STRUCTURE AND FEE.
SECTION 3. Section 13.182, Water Code, is amended by adding
Subsection (b-2) to read as follows:
(b-2) In establishing a utility's rates, the regulatory
authority by rule or ordinance may authorize a utility to:
(1) structure the utility's rates in a manner that
promotes water conservation by all of the utility's customer
classes so that customers in a class who consume greater amounts of
water pay a higher rate per unit volume than customers in a class
who consume lesser amounts of water; and
(2) establish an excessive use fee for customers whose
water usage is greater than the water usage of a percentage of the
utility's other customers.
SECTION 4. Chapter 13, Water Code, is amended by adding
Subchapter O to read as follows:
SUBCHAPTER O. WATER CONSERVATION RATE AND FEE
Sec. 13.551. APPLICABILITY. This subchapter applies to a
retail public utility that is not subject to Subchapter F or Section
552.9065, Local Government Code.
Sec. 13.552. TIERED CONSERVATION RATE STRUCTURE. A retail
public utility may establish a water conservation rate that
promotes water conservation by all of the utility's customer
classes so that customers in a class who consume greater amounts of
water pay a higher rate per unit volume than customers in a class
who consume lesser amounts of water.
Sec. 13.553. EXCESSIVE USE FEE. A retail public utility may
establish an excessive use fee for the utility's customers whose
water usage is greater than the water usage of a percentage of the
utility's other customers.
SECTION 5. This Act takes effect September 1, 2025.