The bill, H.B. No. 1424, aims to promote water conservation by allowing retail public utilities and municipalities to structure their water rates accordingly. It introduces new provisions in the Local Government Code and Water Code that enable municipalities to set tiered water rates, where customers who consume more water pay a higher rate per unit than those who consume less. Additionally, the bill authorizes the establishment of an excessive use fee for customers whose water usage exceeds a certain percentage compared to other customers.

Specifically, the bill adds Section 552.9065 to the Local Government Code and amends Section 13.182 of the Water Code to include provisions for water conservation rate structures and fees. It also creates a new Subchapter O in the Water Code, detailing the applicability of these provisions to retail public utilities not covered by existing regulations. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Water Code 13.182 (Water Code 13)