HB2506 - Relating to rates for water or sewer utility service provided by certain municipally owned utilities.

  89R4819 CXP-D     By: Dorazio H.B. No. 2506       A BILL TO BE ENTITLED   AN ACT   relating to rates for water or sewer utility service provided by   certain municipally owned utilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 13.181, Water Code, is amended by   amending Subsection (a) and adding Subsections (c) and (d) to read   as follows:          (a)  Except for the provisions of Section 13.192 and   Subsections (c) and (d) , this subchapter shall apply only to a   utility and shall not be applied to municipalities, counties,   districts, or water supply or sewer service corporations.           (c)     This subchapter applies to the implementation of a rate   increase by a municipally owned utility for ratepayers residing   outside the corporate limits of the municipality if:                 (1)     the utility is owned by a municipality with a   population of more than one million; and                 (2)     the rate increase is initiated on a date on which   the utility is implementing any provision of the utility's drought   contingency plan.           (d)     A municipally owned utility implementing a rate   increase described by Subsection (c) is considered to be a Class A   utility for the purposes of any proceeding under this subchapter   regarding the rate increase.          SECTION 2.  The changes in law made by this Act apply only to   a rate proceeding under Chapter 13, Water Code, that begins on or   after the effective date of this Act. A rate proceeding that begins   before the effective date of this Act is governed by the law in   effect on the date the rate proceeding began, and the former law is   continued in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2025.