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

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

FULL TEXT:
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 Oto 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 For 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.