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  89R8951 SCR-D     By: Tepper H.B. No. 2923       A BILL TO BE ENTITLED   AN ACT   relating to the jurisdiction of the Public Utility Commission of   Texas over certain rates for water or sewer service charged by a   municipality.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 12.013(b) and (d), Water Code, are   amended to read as follows:          (b)  In this section, "political subdivision" means   municipalities [ incorporated cities, towns or villages ], counties,   river authorities, water districts, and other special purpose   districts.          (d)  The utility commission's jurisdiction under this   section relating to a municipality [ incorporated cities, towns, or   villages ] shall be limited to water furnished by the municipality   [ such city, town, or village ] to another political subdivision ,   other than another municipality, on a wholesale basis.          SECTION 2.  Section 13.043, Water Code, is amended by adding   Subsection (f-1) and amending Subsection (j) to read as follows:           (f-1)     Subsection (f) does not apply to a decision of a   municipality regarding wholesale water or sewer service provided to   another municipality.          (j)  In an appeal under this section, the utility commission   shall ensure that every appealed rate is just and reasonable.  Rates   shall not be unreasonably preferential, prejudicial, or   discriminatory but shall be sufficient, equitable, and consistent   in application to each class of customers.  The utility commission   shall use a methodology that preserves the financial integrity of   the retail public utility. [ For agreements between municipalities   the utility commission shall consider the terms of any wholesale   water or sewer service agreement in an appellate rate proceeding. ]          SECTION 3.  This Act takes effect September 1, 2025.