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A BILL TO BE ENTITLED
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AN ACT
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relating to Public Utility Commission to ensure compliance and rate |
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regulation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE |
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REGULATION. (a) Except for the provisions of Section 13.192, this |
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subchapter shall apply only to a utility and shall not be applied to |
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municipalities, counties, districts, or water supply or sewer |
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service corporations. |
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(b) Subject to this chapter, the utility commission has all |
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authority and power of the state to ensure compliance with the |
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obligations of utilities under this chapter. For this purpose the |
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regulatory authority may fix and regulate rates of utilities, |
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including rules and regulations for determining the classification |
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of customers and services and for determining the applicability of |
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rates. A rule or order of the regulatory authority may not conflict |
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with the rulings of any federal regulatory body. The utility |
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commission may adopt rules which authorize a utility which is |
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permitted under Section 13.242(c) to provide service without a |
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certificate of public convenience and necessity to request or |
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implement a rate increase and operate according to rules, |
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regulations, and standards of service other than those otherwise |
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required under this chapter provided that rates are just and |
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reasonable for customers and the utility and that service is safe, |
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adequate, efficient, and reasonable. |
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(C) Every water and sewer utility shall provide a $5 million |
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dollar bond held in trust by the Commission. |
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(1) The Commission may draw down money from the bond, if and |
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when the water or sewer utility fails within a reasonable time, as |
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determined by the PUC, to furnish service, instrumentalities, and |
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facilities that are safe, adequate, efficient, and reasonable. |
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(2) The commission shall use the proceeds of the bond to |
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make any necessary improvements to the bring the water or sewer |
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utility back into compliance to ensure that the service, |
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instrumentalities, and facilities are safe, adequate, efficient, |
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and reasonable. |
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(3) The commission may charge the water or sewer utility the |
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amount that was required to make the necessary repairs to replenish |
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the bond of the utility back up to a $5 million dollar threshold. |
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SECTION 2. This Act takes effect September 1, 2019. |