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Relating to the appeal of rates charged for water or sewer service by certain retail public utilities.
No significant fiscal implication to the State is anticipated
HB 3689 would require the Public Utility Commission to ensure that every appealed water and sewer rate charged by a municipally-owned utility to its outside-the-city-limits customers is just, reasonable and fair. The bill would narrow the scope of the Public Utility Commission's jurisdiction over rates charged by retail municipal utilities for water or sewer service such that their jurisdiction over an appealed rate would not automatically trigger wider jurisdiction over every rate set by the utility. This is a legislative update to settle a jurisdictional matter that has become subject to interpretation by the PUC.
It is well within the rights of the legislature to define the regulatory scope of agencies which are creations of the legislature and subject to its oversight, and to settle disputes about the intent of the law by making the law more specific and precise. Texas Action is neutral on HB 3689.
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