The bill amends Section 13.181 of the Water Code to establish new regulations regarding rate increases for water or sewer utility services provided by certain municipally owned utilities. Specifically, it introduces provisions that apply to municipally owned utilities with populations exceeding one million, allowing them to implement rate increases for ratepayers outside the municipality's corporate limits under specific conditions. These conditions include the initiation of the rate increase coinciding with the implementation of the utility's drought contingency plan.

Additionally, the bill designates municipally owned utilities that implement such rate increases as Class A utilities for the purposes of any proceedings related to the rate increase. The changes will only apply to rate proceedings that commence on or after the effective date of the Act, which is set for September 1, 2025. Rate proceedings initiated before this date will continue to be governed by the existing law.

Statutes affected:
Introduced: Water Code 13.181 (Water Code 13)