Bill Text: TX SB1148 | 2015-2016 | 84th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the functions of the Public Utility Commission of Texas in relation to the economic regulation of water and sewer service.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2015-06-17 - Effective on 9/1/15 [SB1148 Detail]

Download: Texas-2015-SB1148-Comm_Sub.html

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By: Watson, Nichols S.B. No. 1148
(In the Senate - Filed March 10, 2015; March 17, 2015, read
first time and referred to Committee on Natural Resources and
Economic Development; April 15, 2015, reported favorably by the
following vote: Yeas 9, Nays 0; April 15, 2015, sent to printer.)
Click here to see the committee vote

A BILL TO BE ENTITLED
AN ACT
relating to the functions of the Public Utility Commission of Texas
in relation to the economic regulation of water and sewer service.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.315, Water Code, is amended to read as
follows:
Sec. 5.315. DISCOVERY IN CASES USING PREFILED WRITTEN
TESTIMONY. In a contested case hearing delegated by the commission
to the State Office of Administrative Hearings that uses prefiled
written testimony, all discovery must be completed before the
deadline for the submission of that testimony[, except for water
and sewer ratemaking proceedings].
SECTION 2. Section 13.041(d), Water Code, is amended to
read as follows:
(d) In accordance with Subchapter K-1, the [The] utility
commission may issue emergency orders, with or without a hearing:
(1) to compel a water or sewer service provider that
has obtained or is required to obtain a certificate of public
convenience and necessity to provide continuous and adequate water
service, sewer service, or both, if the discontinuance of the
service is imminent or has occurred because of the service
provider's actions or failure to act; and
(2) to compel a retail public utility to provide an
emergency interconnection with a neighboring retail public utility
for the provision of temporary water or sewer service, or both, for
not more than 90 days if service discontinuance or serious
impairment in service is imminent or has occurred.
SECTION 3. Section 13.043, Water Code, is amended by adding
Subsections (b-1) and (b-2) to read as follows:
(b-1) A municipally owned utility shall:
(1) disclose to any person, on request, the number of
ratepayers who reside outside the corporate limits of the
municipality; and
(2) provide to any person, on request, a list of the
names and addresses of the ratepayers who reside outside the
corporate limits of the municipality.
(b-2) The municipally owned utility may not charge a fee for
disclosing the information under Subsection (b-1)(1). The
municipally owned utility may charge a reasonable fee for providing
information under Subsection (b-1)(2). The municipally owned
utility shall provide information requested under Subsection
(b-1)(1) by telephone or in writing as preferred by the person
making the request.
SECTION 4. Section 13.187(g-1), Water Code, is amended to
read as follows:
(g-1) If the regulatory authority is the utility
commission, the utility commission shall give reasonable notice of
the hearing, including notice to the governing body of each
affected municipality and county. The utility commission may
delegate to an administrative law judge of the State Office of
Administrative Hearings the responsibility and authority to give
reasonable notice of the hearing, including notice to the governing
body of each affected municipality and county. The utility is not
required to provide a formal answer or file any other formal
pleading in response to the notice, and the absence of an answer
does not affect an order for a hearing.
SECTION 5. Sections 13.1871(g), (h), (j), (m), and (p),
Water Code, are amended to read as follows:
(g) After written notice to the utility, the utility
commission may suspend the effective date of a rate change for not
more than 265 [205] days from the proposed effective date. If the
utility commission does not make a final determination on the
proposed rate before the expiration of the suspension period, the
proposed rate shall be considered approved. This approval is
subject to the authority of the utility commission thereafter to
continue a hearing in progress.
(h) The 265-day [205-day] period described by Subsection
(g) shall be extended by two days for each day a hearing exceeds 15
days.
(j) If the regulatory authority receives at least the
number of complaints from ratepayers required for the regulatory
authority to set a hearing under Subsection (i), the regulatory
authority may, pending the hearing and a decision, suspend the date
the rate change would otherwise be effective. Except as provided by
Subsection (h), the proposed rate may not be suspended for longer
than:
(1) 90 days by a local regulatory authority; or
(2) 265 [205] days by the utility commission.
(m) The regulatory authority shall give reasonable notice
of the hearing, including notice to the governing body of each
affected municipality and county. The utility commission may
delegate to an administrative law judge of the State Office of
Administrative Hearings the responsibility and authority to give
reasonable notice for the hearing, including notice to the
governing body of each affected municipality and county. The
utility is not required to provide a formal answer or file any other
formal pleading in response to the notice, and the absence of an
answer does not affect an order for a hearing.
(p) A utility may put a changed rate into effect throughout
the area in which the utility sought to change its rates, including
an area over which the utility commission is exercising appellate
or original jurisdiction, by filing a bond with the utility
commission if the suspension period has been extended under
Subsection (h) and the utility commission fails to make a final
determination before the 266th [206th] day after the date the rate
change would otherwise be effective.
SECTION 6. Sections 13.301(a) and (h), Water Code, are
amended to read as follows:
(a) A utility or a water supply or sewer service
corporation, on or before the 120th day before the effective date of
a sale, acquisition, lease, or rental of a water or sewer system
owned by an entity that is required by law to possess a certificate
of public convenience and necessity or the effective date of a sale
or acquisition of or merger or consolidation with such an entity [a
utility or water supply or sewer service corporation], shall:
(1) file a written application with the utility
commission; and
(2) unless public notice is waived by the utility
commission for good cause shown, give public notice of the action.
(h) A sale, acquisition, lease, or rental of any water or
sewer system owned by an entity required by law to possess a
certificate of public convenience and necessity or a sale or
acquisition of or merger or consolidation with such an entity that
is not completed in accordance with the provisions of this section
is void.
SECTION 7. Sections 13.4133(a) and (c), Water Code, are
amended to read as follows:
(a) Notwithstanding the requirements of Subchapter F, the
utility commission may authorize an emergency rate increase for a
utility for which a person has been appointed under Section 13.4132
or for which a receiver has been appointed under Section 13.412 if
the increase is necessary to ensure the provision of continuous and
adequate services to the utility's customers. The commission and
utility commission shall coordinate as needed to carry out this
section.
(c) An emergency order may be issued under this section for
a term not to exceed 15 months. The utility commission shall
schedule a hearing to establish a final rate within 15 months after
the date on which an emergency rate increase takes effect. The
utility commission shall require the utility to provide notice of
the hearing to each customer. The additional revenues collected
under an emergency rate increase are subject to refund if the
utility commission finds that the rate increase was larger than
necessary to ensure continuous and adequate service.
SECTION 8. Chapter 13, Water Code, is amended by adding
Subchapter K-1 to read as follows:
SUBCHAPTER K-1. EMERGENCY ORDERS
Sec. 13.451. ISSUANCE OF EMERGENCY ORDER. (a) The utility
commission may issue an emergency order authorized under this
chapter after providing the notice and opportunity for a hearing
that the utility commission considers practicable under the
circumstances or without notice or opportunity for a hearing. If
the utility commission considers the provision of notice and
opportunity for a hearing practicable, the utility commission shall
provide the notice not later than the 10th day before the date set
for the hearing.
(b) The utility commission by order or rule may delegate to
the utility commission's executive director the authority to:
(1) receive applications and issue emergency orders
under this subchapter; and
(2) authorize, in writing, a representative or
representatives to act on the utility commission's executive
director's behalf under this subchapter.
(c) Chapter 2001, Government Code, does not apply to the
issuance of an emergency order under this subchapter without a
hearing.
(d) A law under which the utility commission acts that
requires notice of hearing or that prescribes procedures for the
issuance of emergency orders does not apply to a hearing on an
emergency order issued under this subchapter unless the law
specifically requires notice for an emergency order. The utility
commission shall give notice of the hearing as it determines is
practicable under the circumstances.
(e) An emergency order issued under this subchapter does not
vest any rights in a person affected by the order and the order
expires according to its terms.
(f) The utility commission may adopt rules necessary to
administer this subchapter.
Sec. 13.452. APPLICATION FOR EMERGENCY ORDER. A person
other than the utility commission or the staff of the utility
commission who desires the issuance of an emergency order under
this subchapter must submit a sworn written application to the
utility commission. The application must:
(1) describe the emergency condition or other
condition justifying the issuance of the order;
(2) allege facts to support the findings required
under this subchapter;
(3) estimate the dates on which the proposed order
should begin and end;
(4) describe the action sought and the activity
proposed to be allowed, mandated, or prohibited; and
(5) include any other statement, including who must
sign the application for the order, and any information required by
the utility commission.
Sec. 13.453. NOTICE OF ISSUANCE. Notice of the issuance of
an emergency order must be provided as required by utility
commission rule.
Sec. 13.454. HEARING TO AFFIRM, MODIFY, OR SET ASIDE ORDER.
(a) If the utility commission or the utility commission's
executive director issues an emergency order under this subchapter
without a hearing, a hearing must be held to affirm, modify, or set
aside the emergency order unless the person affected by the order
waives the right to a hearing. If the person does not waive the
right to a hearing, the utility commission or the utility
commission's executive director shall set a time and place for a
hearing to be held before the utility commission or the State Office
of Administrative Hearings, which must be as soon as practicable
after the order is issued.
(b) At a hearing required under Subsection (a), or within a
reasonable time after the hearing, the utility commission shall
affirm, modify, or set aside the emergency order.
(c) A hearing to affirm, modify, or set aside an emergency
order must be conducted in accordance with Chapter 2001, Government
Code, and utility commission rules. Utility commission rules
relating to a hearing to affirm, modify, or set aside an emergency
order must provide for presentation of evidence by the applicant,
if any, under oath, presentation of rebuttal evidence under oath,
and cross-examination of witnesses under oath.
Sec. 13.455. TERM OF ORDER. An emergency order issued under
this subchapter must be limited to a reasonable time as specified in
the order. Except as otherwise provided by this chapter, the term
of an emergency order may not exceed 180 days. An emergency order
may be renewed once for a period not to exceed 180 days.
SECTION 9. Section 5.507, Water Code, is amended to read as
follows:
Sec. 5.507. EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
The commission [or the Public Utility Commission of Texas] may
issue an emergency order appointing a willing person to temporarily
manage and operate a utility under Section 13.4132. Notice of the
action is adequate if the notice is mailed or hand delivered to the
last known address of the utility's headquarters.
SECTION 10. Section 5.508, Water Code, is repealed.
SECTION 11. This Act takes effect September 1, 2015.
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