SB 2499

89R15525 ANG-D
		By: Zaffirini
  S.B. No. 2499
  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.