HB5209 - Relating to the consideration of compliance with rules of the Texas Commission on Environmental Quality in approving rates for water or sewer utility services.

  89R15525 ANG-D     By: Guillen H.B. No. 5209       A BILL TO BE ENTITLED   AN ACT   relating to the consideration of compliance with rules of the Texas   Commission on Environmental Quality in approving rates for water or   sewer utility services.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 13.184(b), Water Code, is amended to   read as follows:          (b)  In fixing a reasonable return on invested capital, the   regulatory authority shall consider, in addition to other   applicable factors, the efforts and achievements of the utility in   the conservation of resources, whether the utility is in compliance   with commission rules, the quality of the utility's services, the   efficiency of the utility's operations, and the quality of the   utility's management.          SECTION 2.  Section 13.185, Water Code, is amended by adding   Subsection (g-1) to read as follows:           (g-1)     When considering a utility's historic test year   information to determine reasonable and necessary expenses, the   regulatory authority shall consider whether the utility complied   with commission rules during that test year.          SECTION 3.  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 4.  This Act takes effect September 1, 2025.