reglab/statecodes huggingface dataset:
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter E. Records, Reports, Inspections, Rates, and Services › Section 13.152. Billing for Recreational Vehicle Parks

Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 340 (S.B. 594), Sec. 2
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 163 (S.B. 1778), Sec. 1, see other Sec. 13.152.
Sec. 13.152.  BILLING FOR RECREATIONAL VEHICLE PARKS.  (a)  In this section, "recreational vehicle park" has the meaning assigned by Section 13.087.
(b)  A retail public utility, other than a municipally owned utility described by Section 13.087, providing water or sewer service to a recreational vehicle park:
(1)  shall ensure that billing for the service is based on actual water usage recorded by the retail public utility; and
(2)  may not impose a surcharge based on the number of recreational vehicle or cabin sites in the recreational vehicle park.
Added by Acts 2023, 88th Leg., R.S., Ch. 340 (S.B. 594), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.181. Power to Ensure Compliance; Rate Regulation

Sec. 13.181.  POWER TO ENSURE COMPLIANCE;  RATE REGULATION.  (a)  Except for the provisions of Section 13.192, this subchapter shall apply only to a utility and shall not be applied to municipalities, counties, districts, or water supply or sewer service corporations.
(b)  Subject to this chapter, the utility commission has all authority and power of the state to ensure compliance with the obligations of utilities under this chapter.  For this purpose the regulatory authority may fix and regulate rates of utilities, including rules and regulations for determining the classification of customers and services and for determining the applicability of rates.  A rule or order of the regulatory authority may not conflict with the rulings of any federal regulatory body.  The utility commission may adopt rules which authorize a utility which is permitted under Section 13.242(c) to provide service without a certificate of public convenience and necessity to request or implement a rate increase and operate according to rules, regulations, and standards of service other than those otherwise required under this chapter provided that rates are just and reasonable for customers and the utility and that service is safe, adequate, efficient, and reasonable.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 16, eff. Sept. 1, 1989;  Acts 1993, 73rd Leg., ch. 652, Sec. 1, eff. Aug. 30, 1993;  Acts 1995, 74th Leg., ch. 979, Sec. 13, eff. June 16, 1995;  Acts 1997, 75th Leg., ch. 1010, Sec. 6.03, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.34, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 34, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.182. Just and Reasonable Rates

Sec. 13.182.  JUST AND REASONABLE RATES.  (a)  The regulatory authority shall ensure that every rate made, demanded, or received by any utility or by any two or more utilities jointly shall be just and reasonable.
(b)  Except as provided by Subsection (b-1), rates may not be unreasonably preferential, prejudicial, or discriminatory but shall be sufficient, equitable, and consistent in application to each class of consumers.
(b-1)  In establishing a utility's rates, the regulatory authority may authorize the utility to establish reduced rates for a minimal level of service to be provided solely to a class of elderly customers 65 years of age or older to ensure that those customers receive that level of service at more affordable rates.  The regulatory authority shall allow a utility to establish a fund to receive donations to recover the costs of providing the reduced rates.  A utility may not recover those costs through charges to the utility's other customer classes.
(c)  For ratemaking purposes, the utility commission may treat two or more municipalities served by a utility as a single class wherever the utility commission considers that treatment to be appropriate.
(d)  The utility commission by rule shall establish a preference that rates under a consolidated tariff be consolidated by region.  The regions under consolidated tariffs must be determined on a case-by-case basis.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 2001, 77th Leg., ch. 966, Sec. 10.04, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.35, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 35, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 129 (H.B. 1083), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.184. Fair Return; Burden of Proof

Sec. 13.184.  FAIR RETURN;  BURDEN OF PROOF.  (a)  Unless the utility commission establishes alternate rate methodologies in accordance with Section 13.183(c), the utility commission may not prescribe any rate that will yield more than a fair return on the invested capital used and useful in rendering service to the public.  The governing body of a municipality exercising its original jurisdiction over rates and services may use alternate ratemaking methodologies established by ordinance or by utility commission rule in accordance with Section 13.183(c).  Unless the municipal regulatory authority uses alternate ratemaking methodologies established by ordinance or by utility commission rule in accordance with Section 13.183(c), it may not prescribe any rate that will yield more than a fair return on the invested capital used and useful in rendering service to the public.
(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, the quality of the utility's services, the efficiency of the utility's operations, and the quality of the utility's management.
(c)  In any proceeding involving any proposed change of rates, the burden of proof shall be on the utility to show that the proposed change, if proposed by the utility, or that the existing rate, if it is proposed to reduce the rate, is just and reasonable.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 6.05, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.37, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 37, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.186. Unreasonable or Violative Existing Rates; Investigating Costs of Obtaining Service From Another Source

Sec. 13.186.  UNREASONABLE OR VIOLATIVE EXISTING RATES;  INVESTIGATING COSTS OF OBTAINING SERVICE FROM ANOTHER SOURCE.  (a)  If the regulatory authority, after reasonable notice and hearing, on its own motion or on complaint by any affected person, finds that the existing rates of any utility for any service are unreasonable or in any way in violation of any law, the regulatory authority shall determine the just and reasonable rates, including maximum or minimum rates, to be observed and in force, and shall fix the same by order to be served on the utility.  Those rates constitute the legal rates of the utility until changed as provided in this chapter.
(b)  If a utility does not itself produce that which it distributes, transmits, or furnishes to the public for compensation, but obtains it from another source, the regulatory authority may investigate the cost of that production in any investigation of the reasonableness of the rates of the utility.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 19, eff. Sept. 1, 1989.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.1861. Rates Charged State

Sec. 13.1861.  RATES CHARGED STATE.  The rates that a utility or municipally owned utility charges the state or a state agency or institution may not include an amount representing a gross receipts assessment, regulatory assessment, or other similar expense.  A regulatory authority may adopt reasonable rules specifying similar expenses to be excluded.
Added by Acts 1993, 73rd Leg., ch. 660, Sec. 8, eff. Sept. 1, 1993.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.18715. Class C Utilities: Statement of Intent to Change Rates; Hearing; Determination of Rate Level

Sec. 13.18715.  CLASS C UTILITIES:  STATEMENT OF INTENT TO CHANGE RATES; HEARING; DETERMINATION OF RATE LEVEL.  (a)  This section applies only to a Class C utility.
(b)  A utility may not make changes in its rates except by complying with the procedures to change rates described by Section 13.1871.
(c)  Notwithstanding Section 13.1871(n), the utility may send the notice required by that subsection by mail or e-mail or may deliver a copy of the notice to the ratepayers.
Added by Acts 2019, 86th Leg., R.S., Ch. 967 (S.B. 700), Sec. 7, eff. September 1, 2019.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.1872. Class D Utilities: Rate Adjustment

Sec. 13.1872.  CLASS D UTILITIES:  RATE ADJUSTMENT.  (a)  This section applies only to a Class D utility.
(b)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 967 (S.B. 700), Sec. 14, eff. September 1, 2019.
(c)  A utility may not make changes in its rates except by:
(1)  filing an application for a rate adjustment under the procedures described by Subsection (e) and sending by mail, or by e-mail if the ratepayer has agreed to receive communications electronically, a notice to each ratepayer describing the proposed rate adjustment at least 30 days before the effective date of the proposed change; or
(2)  complying with the procedures to change rates described by Section 13.1871.
(c-1)  A utility that chooses to comply with Section 13.1871 as authorized under Subsection (c)(2) of this section may send the notice required by Section 13.1871(n) by mail or e-mail or may deliver a copy of the notice to the ratepayers.
(d)  The utility shall mail, send by e-mail, or deliver a copy of the application to the appropriate offices of each affected municipality and to any other affected persons as required by the regulatory authority's rules.
(e)  The utility commission by rule shall adopt procedures to allow a utility to receive without a hearing an annual rate adjustment.  The rules must:
(1)  include standard language to be included in the notice described by Subsection (c)(1) describing the rate adjustment process; and
(2)  provide that an annual rate adjustment described by this section may not result in a rate increase to any class or category of ratepayer of more than five percent.
(f)  A utility may adjust the utility's rates using the procedures adopted under Subsection (e) not more than once each year and not more than four times between rate proceedings described by Section 13.1871.
Added by Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.40, eff. September 1, 2013.
Added by Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 40, eff. September 1, 2013.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 967 (S.B. 700), Sec. 8, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 967 (S.B. 700), Sec. 9, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 967 (S.B. 700), Sec. 14, eff. September 1, 2019.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.1873. Application Rules

Sec. 13.1873.  APPLICATION RULES.  In adopting rules relating to the information required in an application for a Class B, Class C, or Class D utility to change rates, the utility commission shall ensure that a:
(1)  Class B utility can file a less burdensome and complex application than is required of a Class A utility; and
(2)  Class C or Class D utility can file a less burdensome and complex application than is required of a Class A or Class B utility.
Added by Acts 2019, 86th Leg., R.S., Ch. 967 (S.B. 700), Sec. 10, eff. September 1, 2019.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.188. Adjustment for Change in Energy Costs

Sec. 13.188.  ADJUSTMENT FOR CHANGE IN ENERGY COSTS.  (a)  Notwithstanding any other provision in this chapter, the utility commission by rule shall adopt a procedure allowing a utility to file with the utility commission an application to timely adjust the utility's rates to reflect an increase or decrease in documented energy costs in a pass through clause.  The utility commission, by rule, shall require the pass through of documented decreases in energy costs within a reasonable time.  The pass through, whether a decrease or increase, shall be implemented on no later than an annual basis, unless the utility commission determines a special circumstance applies.
(b)  Notwithstanding any other provision to the contrary, this adjustment is an uncontested matter not subject to a contested case hearing.  However, the utility commission shall hold an uncontested public meeting:
(1)  on the request of a member of the legislature who represents the area served by the water and sewer utility; or
(2)  if the utility commission determines that there is substantial public interest in the matter.
(c)  A proceeding under this section is not a rate case and Sections 13.187, 13.1871, and 13.1872 do not apply.
Added by Acts 2007, 80th Leg., R.S., Ch. 1430 (S.B. 3), Sec. 2.07, eff. September 1, 2007.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.41, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 41, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.189. Unreasonable Preference or Prejudice as to Rates or Services

Sec. 13.189.  UNREASONABLE PREFERENCE OR PREJUDICE AS TO RATES OR SERVICES.  (a)  A water and sewer utility as to rates or services may not make or grant any unreasonable preference or advantage to any corporation or person within any classification or subject any corporation or person within any classification to any unreasonable prejudice or disadvantage.
(b)  A utility may not establish and maintain any unreasonable differences as to rates of service either as between localities or as between classes of service.
(c)  For purposes of this section, a reduced rate authorized under Section 13.182(b-1) does not:
(1)  make or grant an unreasonable preference or advantage to any corporation or person;
(2)  subject a corporation or person to an unreasonable prejudice or disadvantage; or
(3)  constitute an unreasonable difference as to rates of service between classes of service.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 129 (H.B. 1083), Sec. 2, eff. September 1, 2017.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.190. Equality of Rates and Services

Sec. 13.190.  EQUALITY OF RATES AND SERVICES.  (a)  A water and sewer utility may not directly or indirectly by any device or in any manner charge, demand, collect, or receive from any person a greater or lesser compensation for any service rendered or to be rendered by the utility than that prescribed in the schedule of rates of the utility applicable to that service when filed in the manner provided in this chapter, and a person may not knowingly receive or accept any service from a utility for a compensation greater or less than that prescribed in the schedules, provided that all rates being charged and collected by a utility on the effective date of this chapter may be continued until schedules are filed.
(b)  This chapter does not prevent a cooperative corporation from returning to its members the whole or any part of the net earnings resulting from its operations in proportion to their purchases from or through the corporation.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.191. Discrimination; Restriction on Competition

Sec. 13.191.  DISCRIMINATION;  RESTRICTION ON COMPETITION.  A water and sewer utility may not discriminate against any person or corporation that sells or leases equipment or performs services in competition with the utility, and a utility may not engage in any other practice that tends to restrict or impair that competition.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter F. Proceedings Before Regulatory Authority › Section 13.192. Payments in Lieu of Taxes

Sec. 13.192.  PAYMENTS IN LIEU OF TAXES.  Payments made in lieu of taxes by a water and sewer utility to the municipality by which it is owned may not be considered an expense of operation for the purpose of determining, fixing, or regulating the rates to be charged for the provision of utility service to a school district or hospital district.  No rates received by a utility from a school district or hospital district may be used to make or to cover the cost of making payments in lieu of taxes to the municipality by which the utility is owned.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.241. Granting Certificates

Sec. 13.241.  GRANTING CERTIFICATES.  (a)  In determining whether to grant or amend a certificate of public convenience and necessity, the utility commission shall ensure that the applicant possesses the financial, managerial, and technical capability to provide continuous and adequate service.
(b)  For water utility service, the commission shall ensure that the applicant:
(1)  is capable of providing drinking water that meets the requirements of Chapter 341, Health and Safety Code, and requirements of this code;  and
(2)  has access to an adequate supply of water.
(c)  For sewer utility service, the commission shall ensure that the applicant is capable of meeting the commission's design criteria for sewer treatment plants and the requirements of this code.
(d)  Before the utility commission grants a new certificate of convenience and necessity for an area which would require construction of a physically separate water or sewer system, the applicant must demonstrate to the utility commission that regionalization or consolidation with another retail public utility is not economically feasible.
(e)  The utility commission by rule shall develop a standardized method for determining under Section 13.246(f) which of two or more retail public utilities or water supply or sewer service corporations that apply for a certificate of public convenience and necessity to provide water or sewer utility service to an uncertificated area located in an economically distressed area is more capable financially, managerially, and technically of providing continuous and adequate service.  In this subsection, "economically distressed area" has the meaning assigned by Section 15.001.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 6.07, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 404, Sec. 30, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1145 (H.B. 2876), Sec. 2, eff. September 1, 2005.
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.42, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 42, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.243. Exceptions for Extension of Service

Sec. 13.243.  EXCEPTIONS FOR EXTENSION OF SERVICE.  A retail public utility is not required to secure a certificate of public convenience and necessity for:
(1)  an extension into territory contiguous to that already served by it, if the point of ultimate use is within one-quarter mile of the boundary of the certificated area, and not receiving similar service from another retail public utility and not within the area of public convenience and necessity of another retail public utility;  or
(2)  an extension within or to territory already served by it or to be served by it under a certificate of public convenience and necessity.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1987, 70th Leg., ch. 539, Sec. 14, eff. Sept. 1, 1987;  Acts 1989, 71st Leg., ch. 567, Sec. 22, eff. Sept. 1, 1989.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.247. Area Within Municipality

Sec. 13.247.  AREA WITHIN MUNICIPALITY.  (a)  If an area is within the boundaries of a municipality, all retail public utilities certified or entitled to certification under this chapter to provide service or operate facilities in that area may continue and extend service in its area of public convenience and necessity within the area pursuant to the rights granted by its certificate and this chapter, unless the municipality exercises its power of eminent domain to acquire the property of the retail public utility under Subsection (d).  Except as provided by Section 13.2475 or 13.255, a municipally owned or operated utility may not provide retail water and sewer utility service within the area certificated to another retail public utility without first having obtained from the utility commission a certificate of public convenience and necessity that includes the areas to be served.
(b)  Notwithstanding any other provision of law, a retail public utility may continue and extend service within its area of public convenience and necessity and utilize the roads, streets, highways, alleys, and public property to furnish retail utility service, subject to the authority of the governing body of a municipality to require any retail public utility, at its own expense, to relocate its facilities to permit the widening or straightening of streets, by giving to the retail public utility 30 days' notice and specifying the new location for the facilities along the right-of-way of the street or streets.
(c)  This section may not be construed as limiting the power of municipalities to incorporate or extend their boundaries by annexation, or as prohibiting any municipality from levying taxes and other special charges for the use of the streets as are authorized by Section 182.025, Tax Code.
(d)  In addition to any other rights provided by law, a municipality with a population of more than 500,000 may exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, to acquire a substandard water or sewer system if all the facilities of the system are located entirely within the municipality's boundaries.  The municipality shall pay just and adequate compensation for the property.  In this subsection, "substandard water or sewer system" means a system that is not in compliance with the municipality's standards for water and wastewater service.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 25, eff. Sept. 1, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 1145 (H.B. 2876), Sec. 7, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 1145 (H.B. 2876), Sec. 8, eff. September 1, 2005.
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.48, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 48, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 673 (S.B. 789), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.2475. Certificates of Public Convenience and Necessity to Provide Sewer Service in Certain Municipalities

Sec. 13.2475.  CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE SEWER SERVICE IN CERTAIN MUNICIPALITIES.  (a)  This section applies only to a municipality:
(1)  with a population of more than 95,000;
(2)  located in a county that:
(A)  borders Lake Palestine; and
(B)  has a population of more than 200,000;
(3)  that owns and operates a utility that provides sewer service; and
(4)  that has an area within the boundaries of the municipality that is certificated to another retail public utility that provides sewer service.
(b)  A municipality may provide sewer service to an area entirely within the municipality's boundaries without first having to obtain from the utility commission a certificate of public convenience and necessity that includes the area to be served, regardless of whether the area to be served is certificated to another retail public utility.
(c)  Not less than 30 days before the municipality begins providing sewer service to an area certificated to another retail public utility, the municipality shall provide notice to the retail public utility and the utility commission of its intention to provide service to the area.
(d)  On receipt of the notice required by Subsection (c), a retail public utility may:
(1)  petition the utility commission to decertify its certificate for the area to be served by the municipality; or
(2)  discontinue service to the area to be served by the municipality, provided that there is no interruption of service to any customer.
(e)  This section may not be construed to limit the right of a retail public utility to provide service in an area certificated to the retail public utility.
(f)  This section does not expand a municipality's power of eminent domain under Chapter 21, Property Code.
Added by Acts 2015, 84th Leg., R.S., Ch. 673 (S.B. 789), Sec. 2, eff. September 1, 2015.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.248. Contracts Valid and Enforceable

Sec. 13.248.  CONTRACTS VALID AND ENFORCEABLE.  Contracts between retail public utilities designating areas to be served and customers to be served by those retail public utilities, when approved by the utility commission after public notice and hearing, are valid and enforceable and are incorporated into the appropriate areas of public convenience and necessity.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 26, eff. Sept. 1, 1989.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.49, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 49, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.2501. Conditions Requiring Refusal of Service

Sec. 13.2501.  CONDITIONS REQUIRING REFUSAL OF SERVICE.  The holder of a certificate of public convenience and necessity shall refuse to serve a customer within its certified area if the holder of the certificate is prohibited from providing the service under Section 212.012 or 232.0047, Local Government Code.
Added by Acts 1987, 70th Leg., ch. 1102, Sec. 6, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1, Sec. 46(f), eff. Aug. 28, 1989;  Acts 1989, 71st Leg., ch. 624, Sec. 3.13, eff. Sept. 1, 1989.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.251. Sale, Assignment, or Lease of Certificate

Sec. 13.251.  SALE, ASSIGNMENT, OR LEASE OF CERTIFICATE.  Except as provided by Section 13.255, a utility or a water supply or sewer service corporation may not sell, assign, or lease a certificate of public convenience and necessity or any right obtained under a certificate unless the utility commission has determined that the purchaser, assignee, or lessee is capable of rendering adequate and continuous service to every consumer within the certified area, after considering the factors under Section 13.246(c).  The sale, assignment, or lease shall be on the conditions prescribed by the utility commission.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1987, 70th Leg., ch. 539, Sec. 17, eff. Sept. 1, 1987;  Acts 1989, 71st Leg., ch. 567, Sec. 28, eff. Sept. 1, 1989;  Acts 1991, 72nd Leg., ch. 678, Sec. 8, eff. Sept. 1, 1991.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.52, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 52, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.252. Interference With Other Retail Public Utility

Sec. 13.252.  INTERFERENCE WITH OTHER RETAIL PUBLIC UTILITY.  If a retail public utility in constructing or extending a line, plant, or system interferes or attempts to interfere with the operation of a line, plant, or system of any other retail public utility, or furnishes, makes available, renders, or extends retail water or sewer utility service to any portion of the service area of another retail public utility that has been granted or is not required to possess a certificate of public convenience and necessity, the utility commission may issue an order prohibiting the construction, extension, or provision of service or prescribing terms and conditions for locating the line, plant, or system affected or for the provision of the service.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1987, 70th Leg., ch. 539, Sec. 18, eff. Sept. 1, 1987;  Acts 1989, 71st Leg., ch. 567, Sec. 29, eff. Sept. 1, 1989.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.53, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 53, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.2551. Completion of Decertification

Sec. 13.2551.  COMPLETION OF DECERTIFICATION.  (a)  As a condition to decertification or single certification under Section 13.254 or 13.255, and on request by an affected retail public utility, the utility commission may order:
(1)  the retail public utility seeking to provide service to a decertified area to serve the entire service area of the retail public utility that is being decertified; and
(2)  the transfer of the entire certificate of public convenience and necessity of a partially decertified retail public utility to the retail public utility seeking to provide service to the decertified area.
(b)  The utility commission shall order service to the entire area under Subsection (a) if the utility commission finds that the decertified retail public utility will be unable to provide continuous and adequate service at an affordable cost to the remaining customers.
(c)  The utility commission shall require the retail public utility seeking to provide service to the decertified area to provide continuous and adequate service to the remaining customers at a cost comparable to the cost of that service to its other customers and shall establish the terms under which the service must be provided.  The terms may include:
(1)  transferring debt and other contract obligations;
(2)  transferring real and personal property;
(3)  establishing interim service rates for affected customers during specified times; and
(4)  other provisions necessary for the just and reasonable allocation of assets and liabilities.
(d)  The retail public utility seeking decertification shall not charge the affected customers any transfer fee or other fee to obtain service other than the retail public utility's usual and customary rates for monthly service or the interim rates set by the utility commission, if applicable.
(e)  The utility commission shall not order compensation to the decertificated retail utility if service to the entire service area is ordered under this section.
Added by Acts 2005, 79th Leg., Ch. 1145 (H.B. 2876), Sec. 11, eff. September 1, 2005.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.57, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 57, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter G. Certificates of Convenience and Necessity › Section 13.256. County Fee

Sec. 13.256.  COUNTY FEE.  (a)  Notwithstanding any other provision of law, a county with a population of more than 2.8 million may not charge a water and sewer utility a fee for the privilege of installing or replacing a water or sewer line in the county's right-of-way.
(b)  This section does not affect a franchise agreement or other contract entered into before September 1, 1995.
Added by Acts 1995, 74th Leg., ch. 628, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter H. Sale of Property and Mergers › Section 13.3011. Initial Rates for Certain Water or Sewer Systems After Purchase or Acquisition

Sec. 13.3011.  INITIAL RATES FOR CERTAIN WATER OR SEWER SYSTEMS AFTER PURCHASE OR ACQUISITION.  (a)  A person who files an application described by Section 13.301(a) for the purchase or acquisition of a water or sewer system may request that the regulatory authority with original jurisdiction over the rates for water or sewer service provided by the person to the customers of the system authorize the person to charge initial rates for the service that are:
(1)  shown in a tariff filed with a regulatory authority by the person for another water or sewer system; and
(2)  in force for the other water or sewer system on the date the application described by Section 13.301(a) is filed.
(b)  The regulatory authority may not require a person who makes a request under Subsection (a) to initiate a new rate proceeding to establish the initial rates for service the person will provide to the customers of the purchased or acquired system.
Added by Acts 2021, 87th Leg., R.S., Ch. 252 (H.B. 1484), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter H. Sale of Property and Mergers › Section 13.302. Purchase of Voting Stock in Another Public Utility: Report

Sec. 13.302.  PURCHASE OF VOTING STOCK IN ANOTHER PUBLIC UTILITY:  REPORT.  (a)  A utility may not purchase voting stock in another utility doing business in this state and a person may not acquire a controlling interest in a utility doing business in this state unless the person or utility files a written application with the utility commission not later than the 61st day before the date on which the transaction is to occur.
(b)  The utility commission may require that a person acquiring a controlling interest in a utility demonstrate adequate financial, managerial, and technical capability for providing continuous and adequate service to the requested area and any areas currently certificated to the person.
(c)  If the person acquiring a controlling interest cannot demonstrate adequate financial capability, the utility commission may require that the person provide a bond or other financial assurance in a form and amount specified by the utility commission to ensure continuous and adequate utility service is provided.
(d)  The utility commission may hold a public hearing on the transaction if the utility commission believes that a criterion prescribed by Section 13.301(e) applies.
(e)  Unless the utility commission holds a public hearing, the purchase or acquisition may be completed as proposed:
(1)  at the end of the 60-day period; or
(2)  at any time after the utility commission notifies the person or utility that a hearing will not be held.
(f)  If the utility commission decides to hold a hearing or if the person or utility fails to make the application to the utility commission as required, the purchase or acquisition may not be completed unless the utility commission determines that the proposed transaction serves the public interest.  A purchase or acquisition that is not completed in accordance with the provisions of this section is void.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 34, eff. Sept. 1, 1989;  Acts 1991, 72nd Leg., ch. 678, Sec. 10, eff. Sept. 1, 1991;  Acts 1997, 75th Leg., ch. 1010, Sec. 6.12, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.60, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 60, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter H. Sale of Property and Mergers › Section 13.303. Loans to Stockholders: Report

Sec. 13.303.  LOANS TO STOCKHOLDERS:  REPORT.  A utility may not loan money, stocks, bonds, notes, or other evidences of indebtedness to any corporation or person owning or holding directly or indirectly any stock of the utility unless the utility reports the transaction to the utility commission within 60 days after the date of the transaction.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 35, eff. Sept. 1, 1989.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.61, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 61, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter H. Sale of Property and Mergers › Section 13.304. Foreclosure Report

Sec. 13.304.  FORECLOSURE REPORT.  (a)  A utility that receives notice that all or a portion of the utility's facilities or property used to provide utility service are being posted for foreclosure shall notify the utility commission and the commission in writing of that fact not later than the 10th day after the date on which the utility receives the notice.
(b)  A financial institution that forecloses on a utility or on any part of the utility's facilities or property that are used to provide utility service is not required to provide the 120-day notice prescribed by Section 13.301, but shall provide written notice to the utility commission and the commission before the 30th day preceding the date on which the foreclosure is completed.
(c)  The financial institution may operate the utility for an interim period prescribed by utility commission rule before transferring or otherwise obtaining a certificate of convenience and necessity.  A financial institution that operates a utility during an interim period under this subsection is subject to each utility commission rule to which the utility was subject and in the same manner.
Added by Acts 1991, 72nd Leg., ch. 678, Sec. 11, eff. Sept. 1, 1991.  Amended by Acts 1995, 74th Leg., ch. 400, Sec. 8, eff. Sept. 1, 1995.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.62, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 62, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter I. Relations With Affiliated Interests › Section 13.341. Jurisdiction Over Affiliated Interests

Sec. 13.341.  JURISDICTION OVER AFFILIATED INTERESTS.  The utility commission has jurisdiction over affiliated interests having transactions with utilities under the jurisdiction of the utility commission to the extent of access to all accounts and records of those affiliated interests relating to such transactions, including but in no way limited to accounts and records of joint or general expenses, any portion of which may be applicable to those transactions.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.63, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 63, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter I. Relations With Affiliated Interests › Section 13.342. Disclosure of Substantial Interest in Voting Securities

Sec. 13.342.  DISCLOSURE OF SUBSTANTIAL INTEREST IN VOTING SECURITIES.  The utility commission may require the disclosure of the identity and respective interests of every owner of any substantial interest in the voting securities of any utility or its affiliated interest.  One percent or more is a substantial interest within the meaning of this section.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.64, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 64, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter I. Relations With Affiliated Interests › Section 13.343. Wholesale Water Contracts Between Certain Affiliates

Sec. 13.343.  WHOLESALE WATER CONTRACTS BETWEEN CERTAIN AFFILIATES.  (a)  The owner of a utility that supplies retail water service may not contract to purchase from an affiliated supplier wholesale water service for any of that owner's systems unless:
(1)  the wholesale service is provided for not more than 90 days to remedy an emergency condition, as defined by utility commission or commission rule; or
(2)  the utility commission determines that the utility cannot obtain wholesale water service from another source at a lower cost than from the affiliate.
(b)  The utility may not purchase groundwater from any provider if:
(1)  the source of the groundwater is located in a priority groundwater management area;  and
(2)  a wholesale supply of surface water is available.
Added by Acts 2001, 77th Leg., ch. 966, Sec. 10.07, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.65, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 65, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter J. Judicial Review › Section 13.381. Right to Judicial Review; Evidence

Sec. 13.381.  RIGHT TO JUDICIAL REVIEW; EVIDENCE.  Any party to a proceeding before the utility commission or the commission is entitled to judicial review under the substantial evidence rule.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.66, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 66, eff. September 1, 2013.
2023 Texas Statutes › Water Code › Title 2 - Water Administration › Subtitle B - Water Rights › Chapter 13 - Water Rates and Services › Subchapter J. Judicial Review › Section 13.382. Costs and Attorney's Fees

Sec. 13.382.  COSTS AND ATTORNEY'S FEES.  (a)  Any party represented by counsel who alleges that existing rates are excessive or that rates prescribed by the utility commission are excessive and who is a prevailing party in proceedings for review of a utility commission order or decision may in the same action recover against the regulation fund reasonable fees for attorneys and expert witnesses and other costs incurred by him before the utility commission and the court.  The amount of the attorney's fees shall be fixed by the court.
(b)  On a finding by the court that an action under this subchapter was groundless and brought in bad faith and for the purpose of harassment, the court may award to the defendant retail public utility reasonable attorney's fees.
Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 567, Sec. 36, eff. Sept. 1, 1989.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.67, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 67, eff. September 1, 2013.