2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter C. Jurisdiction › Section 13.043. Appellate Jurisdiction

Sec. 13.043.  APPELLATE JURISDICTION.  (a)  Any party to a rate proceeding before the governing body of a municipality may appeal the decision of the governing body to the utility commission.  This subsection does not apply to a municipally owned utility.  An appeal under this subsection must be initiated within 90 days after the date of notice of the final decision by the governing body, or within 30 days if the appeal relates to the rates of a Class A utility, by filing a petition for review with the utility commission and by serving copies on all parties to the original rate proceeding.  The utility commission shall hear the appeal de novo and shall fix in its final order the rates the governing body should have fixed in the action from which the appeal was taken and may include reasonable expenses incurred in the appeal proceedings.  The utility commission may establish the effective date for the utility commission's rates at the original effective date as proposed by the utility provider and may order refunds or allow a surcharge to recover lost revenues.  The utility commission may consider only the information that was available to the governing body at the time the governing body made its decision and evidence of reasonable expenses incurred in the appeal proceedings.
(b)  Ratepayers of the following entities may appeal the decision of the governing body of the entity affecting their water, drainage, or sewer rates to the utility commission:
(1)  a nonprofit water supply or sewer service corporation created and operating under Chapter 67;
(2)  a utility under the jurisdiction of a municipality inside the corporate limits of the municipality;
(3)  a municipally owned utility, if the ratepayers reside outside the corporate limits of the municipality, including a decision of a governing body that results in an increase in rates when the municipally owned utility takes over the provision of service to ratepayers previously served by another retail public utility;
(4)  a district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution that provides water or sewer service to household users; and
(5)  a utility owned by an affected county, if the ratepayer's rates are actually or may be adversely affected.  For the purposes of this section ratepayers who reside outside the boundaries of the district or authority shall be considered a separate class from ratepayers who reside inside those boundaries.
(b-1)  A municipally owned utility shall:
(1)  disclose to any person, on request, the number of ratepayers who reside outside the corporate limits of the municipality; and
(2)  provide to any person, on request, a list of the names and addresses of the ratepayers who reside outside the corporate limits of the municipality.
(b-2)  Unless a ratepayer has requested that a municipally owned utility disclose the ratepayer's personal information under Section 182.052, Utilities Code, the municipally owned utility may not disclose the address of the ratepayer under Subsection (b-1)(2).
(b-3)  The municipally owned utility may not charge a fee for disclosing the information under Subsection (b-1)(1). The municipally owned utility may charge a reasonable fee for providing information under Subsection (b-1)(2).  The municipally owned utility shall provide information requested under Subsection (b-1)(1) by telephone or in writing as preferred by the person making the request.
(b-4)  Subsection (b)(3) does not apply to a municipally owned utility that takes over the provision of service to ratepayers previously served by another retail public utility if the municipally owned utility:
(1)  takes over the service at the request of the ratepayer;
(2)  takes over the service in the manner provided by Subchapter H; or
(3)  is required to take over the service by state law, an order of the commission, or an order of the utility commission.
(c)  An appeal under Subsection (b) must be initiated by filing a petition for review with the utility commission and the entity providing service within 90 days after the effective day of the rate change or, if appealing under Subdivision (b)(2) or (5), within 90 days after the date on which the governing body of the municipality or affected county makes a final decision.  The petition must be signed by the lesser of 10,000 or 10 percent of those ratepayers whose rates have been changed and who are eligible to appeal under Subsection (b).
(d)  In an appeal under Subsection (b) of this section, each person receiving a separate bill is considered a ratepayer, but one person may not be considered more than one ratepayer regardless of the number of bills the person receives.  The petition for review is considered properly signed if signed by a person, or the spouse of a person, in whose name utility service is carried.
(e)  In an appeal under Subsection (b), the utility commission shall hear the appeal de novo and shall fix in its final order the rates the governing body should have fixed in the action from which the appeal was taken.  The utility commission may establish the effective date for the utility commission's rates at the original effective date as proposed by the service provider, may order refunds or allow a surcharge to recover lost revenues, and may allow recovery of reasonable expenses incurred by the retail public utility in the appeal proceedings.  The utility commission may consider only the information that was available to the governing body at the time the governing body made its decision and evidence of reasonable expenses incurred by the retail public utility in the appeal proceedings.  The rates established by the utility commission in an appeal under Subsection (b) remain in effect until the first anniversary of the effective date proposed by the retail public utility for the rates being appealed or until changed by the service provider, whichever date is later, unless the utility commission determines that a financial hardship exists.
(f)  A retail public utility that receives water or sewer service from another retail public utility or political subdivision of the state, including an affected county, may appeal to the utility commission a decision of the provider of water or sewer service affecting the amount paid for water or sewer service.  An appeal under this subsection must be initiated within 90 days after the date of notice of the decision is received from the provider of water or sewer service by the filing of a petition by the retail public utility.
(g)  An applicant for service from an affected county or a water supply or sewer service corporation may appeal to the utility commission a decision of the county or water supply or sewer service corporation relating to any fee or amount to be paid to obtain service, other than the regular membership or tap fees or a groundwater conservation district or other governmental fee.  In addition to the factors specified under Subsection (j), in an appeal brought under this subsection the utility commission shall determine whether the amount paid by the applicant is consistent with the tariff of the water supply or sewer service corporation and is reasonably related to the cost of installing on-site and off-site facilities to provide service to that applicant.  If the utility commission finds the amount charged to be clearly unreasonable, it shall establish the fee to be paid for that applicant.  An appeal under this subsection must be initiated within 90 days after the date written notice is provided to the applicant or member of the decision of an affected county or water supply or sewer service corporation relating to the applicant's initial request for that service.  A determination made by the utility commission on an appeal under this subsection is binding on all similarly situated applicants for service, and the utility commission may not consider other appeals on the same issue until the applicable provisions of the tariff of the water supply or sewer service corporation are amended.
(g-1)  An applicant for service from a water supply or sewer service corporation may appeal to the utility commission for a determination of whether the regular membership fee or tap fee required to be paid to obtain service is consistent with the tariff of the water supply or sewer service corporation.  If the utility commission finds that the fee is inconsistent with the tariff of the water supply or sewer service corporation, the utility commission shall issue an order requiring the water supply or sewer service corporation to charge the applicant an amount consistent with the tariff.  An appeal under this subsection must be initiated not later than the 30th day after the date the water supply or sewer service corporation provides the applicant with the cost of obtaining service.
(h)  The utility commission may, on a motion by the utility commission or by the appellant under Subsection (a), (b), or (f), establish interim rates to be in effect until a final decision is made.
(i)  The governing body of a municipally owned utility or a political subdivision, within 60 days after the date of a final decision on a rate change, shall provide individual written notice to each ratepayer eligible to appeal who resides outside the boundaries of the municipality or the political subdivision.  The notice must include, at a minimum, the effective date of the new rates, the new rates, and the location where additional information on rates can be obtained.  The governing body of a municipally owned utility or a political subdivision may provide the notice electronically if the utility or political subdivision has access to a ratepayer's e-mail address.
(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.
(k)  Not later than the 30th day after the date of a final decision on a rate change, the commissioners court of an affected county shall provide written notice to each ratepayer eligible to appeal.  The notice must include the effective date of the new rates, the new rates, and the location where additional information on rates may be obtained.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1987, 70th Leg., ch. 539, Sec. 7, eff. Sept. 1, 1987;  Acts 1989, 71st Leg., ch. 567, Sec. 6, eff. Sept. 1, 1989;  Acts 1991, 72nd Leg., ch. 678, Sec. 2, eff. Sept. 1, 1991;  Acts 1991, 72nd Leg., ch. 852, Sec. 2, eff. June 16, 1991;  Acts 1993, 73rd Leg., ch. 549, Sec. 1, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 400, Sec. 2, eff. Sept. 1, 1995;  Acts 1995, 74th Leg., ch. 979, Sec. 7, eff. June 16, 1995;  Acts 1999, 76th Leg., ch. 62, Sec. 18.53, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1021 (H.B. 2694), Sec. 9.01, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.15, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 15, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 853 (S.B. 1148), Sec. 4, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 279 (H.B. 3689), Sec. 1, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 367 (S.B. 387), Sec. 1, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 1025 (H.B. 872), Sec. 5, eff. June 18, 2021.
Acts 2023, 88th Leg., R.S., Ch. 1051 (S.B. 317), Sec. 1, eff. June 18, 2023.