Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.

89(R) SB 2160 - Introduced version - Bill Text

89R12292 SCR-F

By: Flores

S.B. No. 2160

A BILL TO BE ENTITLED

AN ACT

relating to the jurisdiction of the Public Utility Commission of

Texas over municipally owned utility water and sewer service

outside the corporate limits of a municipality.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 13.042(e) and (f), Water Code, are

amended to read as follows:

(e) The utility commission shall have exclusive original

jurisdiction over
the
[
water and sewer utility
] rates, operations,

and services
:

(1)

of a water and sewer utility for water or sewer

utility service provided outside
[
not within
] the
corporate

[
incorporated
] limits of a municipality exercising exclusive

original jurisdiction over those rates, operations, and services as

provided in this chapter
; and

(2)

of a municipally owned utility for water or sewer

utility service provided outside the corporate limits of the

municipality
.

(f) This subchapter does not give the utility commission

power or jurisdiction to regulate or supervise the rates or service

of a
municipally owned utility
[
utility owned and operated by a

municipality, directly or through a municipally owned

corporation,
] within its corporate limits or to affect or limit the

power, jurisdiction, or duties of a municipality that regulates

land and supervises water and sewer utilities within its corporate

limits, except as provided by this code.

SECTION 2. Section 13.043(b), Water Code, is amended to

read as follows:

(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

(4)
[
(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.

SECTION 3. The changes in law made by this Act apply only to

a rate proceeding initiated on or after the effective date of this

Act.

SECTION 4. This Act takes effect September 1, 2025.