Bill Text: TX HB3857 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to periodic rate adjustments by water and sewer utilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-09 - Placed on General State Calendar [HB3857 Detail]
Download: Texas-2013-HB3857-Comm_Sub.html
| 83R21281 RWG-F | |||
| By: Lucio III | H.B. No. 3857 | ||
| Substitute the following for H.B. No. 3857: | |||
| By: Lucio III | C.S.H.B. No. 3857 | ||
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| relating to periodic rate adjustments by water and sewer utilities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter F, Chapter 13, Water Code, is amended | ||
| by adding Section 13.194 to read as follows: | ||
| Sec. 13.194. RATE ADJUSTMENTS FOR INFRASTRUCTURE PROJECTS. | ||
| (a) In this section, "infrastructure improvement project" means an | ||
| engineering project to construct, improve, or renovate a facility | ||
| used and useful for: | ||
| (1) the production, transmission, storage, | ||
| distribution, or provision of potable or recycled water to the | ||
| public; or | ||
| (2) the collection, transportation, treatment, or | ||
| disposal of sewage. | ||
| (b) The commission, on the petition of a water and sewer | ||
| utility, may approve a tariff or rate schedule that includes an | ||
| adjustable rate or charge designed to increase or decrease, without | ||
| the necessity of a contested case hearing, in proportion to the | ||
| utility's amount of invested capital committed to infrastructure | ||
| improvement projects to serve the utility's certificated service | ||
| area. | ||
| (c) To be eligible for a tariff or rate schedule under this | ||
| section, or to increase or decrease an adjustable rate or charge | ||
| approved as part of a tariff or rate schedule under this section, a | ||
| water and sewer utility, not later than the 60th day before the | ||
| proposed effective date, as applicable, of the tariff or rate | ||
| schedule or of the increase or decrease of the adjustable rate or | ||
| charge, must file with the executive director for review and | ||
| approval a written petition that contains: | ||
| (1) the amount of the proposed rate or charge; | ||
| (2) the proposed implementation date for the proposed | ||
| rate or charge; | ||
| (3) a list of completed, eligible capital projects and | ||
| the depreciation and return on investment on the projects for which | ||
| the utility seeks reimbursement through the proposed rate or | ||
| charge; | ||
| (4) a computation of the projected total annual | ||
| increase or decrease in revenue expected from the proposed rate or | ||
| charge; and | ||
| (5) the cumulative annual amount the utility expects | ||
| to recover from the proposed rate or charge. | ||
| (d) The executive director may not approve a rate or charge | ||
| that allows a water and sewer utility to recover more than five | ||
| percent of the utility's annual revenue. If a water and sewer | ||
| utility regionalizes or consolidates into a single tariff under | ||
| Section 13.145, the executive director may not approve a rate or | ||
| charge that exceeds five percent of the utility's annual revenue | ||
| from the region or single tariff. | ||
| (e) A water and sewer utility may not implement a rate or | ||
| charge or an increase in a rate or charge under this section more | ||
| than once in a calendar year. | ||
| (f) The commission by rule shall require the water and sewer | ||
| utility: | ||
| (1) to apply a rate or charge to each customer included | ||
| in the utility's tariff or rate schedule; and | ||
| (2) to provide to each customer written notice of the | ||
| rate or charge on the initial tariff filing that proposes to | ||
| implement the rate or charge. | ||
| (g) A water and sewer utility may not recover expenses | ||
| related to the maintenance and operation of an infrastructure | ||
| improvement project through a rate or charge under this section. | ||
| (h) A rate or charge approved by the commission under this | ||
| section is subject to a true-up or reconciliation at the water and | ||
| sewer utility's next general rate case under Section 13.187. | ||
| (i) A water and sewer utility that has filed four petitions | ||
| under this section since the utility's most recent general rate | ||
| case under Section 13.187 may not file another petition until after | ||
| the utility's next general rate case under that section. | ||
| (j) 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. | ||
| (k) The commission shall adopt rules to implement this | ||
| section. | ||
| (l) A regulatory authority other than the commission shall | ||
| allow a water and sewer utility to use an adjustable rate or charge | ||
| in a manner consistent with this section and rules adopted under | ||
| this section. | ||
| SECTION 2. The commission or regulatory authority shall | ||
| adopt all rules necessary to implement Section 13.194, Water Code, | ||
| as added by this Act, not later than September 1, 2015. | ||
| SECTION 3. This Act takes effect September 1, 2013. | ||
