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 that of a certain percentage of other customers.

Specifically, the bill adds Section 552.9065 to the Local Government Code and introduces Subchapter O to the Water Code, which outlines the applicability of these new rate structures and fees. The regulatory authority is also empowered to authorize utilities to implement similar conservation-focused rate structures. The changes are designed to incentivize water conservation among all customer classes and are set to take effect on September 1, 2025.

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