HB1424 - Relating to the structuring of water rates by retail public utilities to promote water conservation; authorizing a fee.

  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.