The bill amends Section 13.187 of the Water Code regarding Class A water and sewer utility rate increases. It modifies Subsection (p) to extend the period in which a utility can file a statement of intent to increase rates from 12 months to 36 months, unless a financial hardship is determined by the regulatory authority. Additionally, it introduces a new Subsection (q) that stipulates any rate change under this section cannot result in a rate increase of more than 20 percent for any class or category of ratepayer.

The changes enacted by this bill will only apply to applications for rate increases filed on or after its effective date of September 1, 2025. Applications submitted before this date will continue to be governed by the existing law.

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