HB 240 — Rate proceedings

90R963 CXP-D By: Walle H.B. No. 240 relating to rate proceedings for water or sewer service conducted during or after the purchase of a water or sewer system by a utility.

SECTION 1. Section 13.3011, Water Code, is amended to read as follows: Sec. 13.3011. INITIAL RATES FOR CERTAIN WATER OR SEWER SYSTEMS AFTER PURCHASE OR ACQUISITION BY UTILITY . (a) A utility that [ person who ] files an application described by Section 13.301(a) for the purchase or acquisition of a water or sewer system : (1) may : (A) charge customers of the system initial rates for the service that are equal to the rates that are in force for the system on the date the application described by Section 13.301(a) is filed; or (B) request that the regulatory authority with original jurisdiction over the rates for water or sewer service provided by the utility [ person ] to the customers of the system authorize the utility [ person ] to charge initial rates for the service that are: (i) [ (1) ] shown in a tariff filed with a regulatory authority by the utility [ person ] for another water or sewer system; and (ii) [ (2) ] in force for the other water or sewer system on the date the application described by Section 13.301(a) is filed ; and (2) may not initiate a new rate proceeding during the pendency of the purchase or acquisition . (b) The regulatory authority may not require a utility that [ person who ] makes a request under Subsection (a)(1)(B) [ (a) ] to initiate a new rate proceeding to establish the initial rates for service the utility [ person ] will provide to the customers of the purchased or acquired system. (c) This section does not apply to rates charged under Section 13.046.

SECTION 2. Section 13.3011, Water Code, as amended by this Act, applies only to a purchase or acquisition of a water or sewer system the application for which is filed under Section 13.301(a), Water Code, on or after the effective date of this Act. A purchase or acquisition of a water or sewer system the application for which is filed under Section 13.301(a), Water Code, before the effective date of this Act is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2027.