The bill, S.B. No. 947, amends the Water Code to streamline the process for municipalities to obtain a certificate of public convenience and necessity for providing water or sewer services in areas that have been incorporated or annexed. Key changes include the removal of the requirement for the utility commission to determine compensation for property rendered useless or valueless due to the certification. Instead, the commission will now determine adequate and just compensation for any property transferred to the municipality or a franchised utility, as well as for any remaining property of the retail public utility that is damaged or adversely affected after the certification.

Additionally, the bill clarifies the process for transferring property and the conditions under which municipalities or franchised utilities can take possession of property pending appeal. It specifies that if a municipality files for certification on behalf of a franchised utility, both entities must be joined in the application, and the franchised utility is responsible for compensating the retail public utility for any property transfer and damages. The changes will apply only to proceedings that commence after the bill's effective date of September 1, 2025.

Statutes affected:
Introduced: Water Code 13.255 (Water Code 13)