The bill amends the Water Code to enhance the regulatory framework for water and sewer services managed by the Public Utility Commission of Texas. Key provisions include the introduction of alternative ratemaking methodologies to improve the quality, affordability, and reliability of services. Specifically, it mandates that the utility commission must issue a final order on system improvement charge applications within 60 days of receiving a complete application, with a possible 15-day extension for good cause. Additionally, the bill establishes that applications for system improvement charges must include detailed documentation of eligible costs, such as receipts and contracts, to be considered complete.

Furthermore, the bill streamlines the process for acquiring utilities in receivership or under supervision by allowing certain entities, such as municipally owned utilities and water supply corporations, to expedite their acquisition applications. It also clarifies that a receiver can be various entities, including municipalities and corporations, and allows them to seek approval for acquiring utility facilities. The bill aims to ensure that utilities can recover costs efficiently while maintaining service quality and stability, with the new provisions taking effect on September 1, 2025.

Statutes affected:
Introduced: Water Code 13.183, Water Code 13.301, Water Code 13.412, Water Code 13.4132 (Water Code 13)