SB2160 - 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.

  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.