The bill amends the Water Code to clarify the jurisdiction of the Public Utility Commission of Texas over rates charged by municipalities for water and sewer services. Specifically, it redefines "political subdivision" to include municipalities, river authorities, water districts, and other special purpose districts, while removing the previous specification of "incorporated cities, towns, or villages." Additionally, the bill limits the Commission's jurisdiction regarding municipalities to wholesale water services provided to other political subdivisions, excluding other municipalities.

Furthermore, the bill introduces a new subsection that states decisions made by municipalities regarding wholesale water or sewer services to other municipalities are not subject to certain provisions. It also modifies the existing requirements for the Commission to ensure that appealed rates are just and reasonable, while removing the obligation to consider the terms of wholesale service agreements between municipalities in appellate rate proceedings. The changes are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Water Code 12.013, Water Code 13.043 (Water Code 13, Water Code 12)