The bill amends Section 13.187 of the Water Code regarding Class A water and sewer utility rate increases. It establishes that a utility or multiple utilities under common control may not file a statement of intent to increase rates more than once in a 36-month period, unless the regulatory authority determines that a financial hardship exists. Additionally, if the regulatory authority requires a utility to submit a corrected statement of intent, the utility will not be considered in violation of the 36-month filing requirement.

Furthermore, the bill introduces a new provision that limits any rate change to a maximum increase of 20 percent for any class or category of ratepayer. The changes will only apply to applications for rate increases filed on or after the effective date of the Act, which is set for September 1, 2025. Applications filed before this date will continue to be governed by the existing law.

Statutes affected:
Introduced: Water Code 13.187 (Water Code 13)