Current through Reg. 50, No. 13; March 28, 2025
(a) The commission may issue an emergency
order in accordance with Texas Water Code (TWC) Chapter 13, Subchapter K-1
under Chapter 22, Subchapter P of this title (relating to Emergency Orders for
Water and Sewer Utilities), with or without a hearing:
(1) to appoint a person under §
24.355 of this title (relating to
Operation of Utility that Discontinues Operation or is Referred for Appointment
of a Receiver), §
24.357 of this title (relating to
Operation of a Utility by a Temporary Manager), or TWC §13.4132 to
temporarily manage and operate a utility that has discontinued or abandoned
operations or that is being referred to the Office of the Texas Attorney
General for the appointment of a receiver under TWC §13.412;
(2) to compel a retail public utility that
has obtained or is required to obtain a certificate of public convenience and
necessity to provide continuous and adequate retail water service, sewer
service, or both, if the discontinuance of the service is imminent or has
occurred because of the retail public utility's actions or inactions;
(3) to compel a retail public utility to
provide an emergency interconnection with a neighboring retail public utility
for the provision of temporary water or sewer service, or both, for not more
than 90 days if discontinuance of service or serious impairment in service is
imminent or has occurred;
(4) to
authorize an emergency rate increase if necessary to ensure the provision of
continuous and adequate retail water or sewer service to the utility's
customers under TWC §13.4133:
(A) for a
utility for which a person has been appointed under TWC §13.4132 to
temporarily manage and operate the utility; or
(B) for a utility for which a receiver has
been appointed under TWC §13.412;
(5) to establish, on an expedited basis, in
response to a request by the Texas Commission on Environmental Quality (TCEQ),
reasonable compensation for the temporary service required under TWC
§13.041(h)(2) and to allow the retail public utility receiving the service
to make a temporary adjustment to its rate structure to ensure proper
payment;
(6) to compel a retail
public utility to make specified improvements and repairs to a water or sewer
system owned or operated by the utility under TWC §13.253(b):
(A) if the commission has reason to believe
that improvements and repairs to a water or sewer service system are necessary
to enable a retail public utility to provide continuous and adequate service in
any portion of its service area;
(B) after providing a retail public utility
notice and an opportunity to be heard at an open meeting of the commission;
and
(C) if the retail public
utility has provided financial assurance under Texas Health and Safety Code
§
341.0355 or
TWC Chapter 13;
(7) to
order an improvement in service or an interconnection under TWC
§13.253(a)(1)-(3).
(b) The commission may establish reasonable
compensation for temporary service ordered under subsection (a)(3) of this
section and may allow the retail public utility receiving the service to make a
temporary adjustment to its rate structure to ensure proper payment.
(c) For an emergency order issued under
subsection (a)(4) of this section:
(1) the
commission will coordinate with the TCEQ as needed;
(2) an emergency rate increase may be granted
for a period not to exceed 15 months from the date on which the increase takes
effect;
(3) the additional revenues
collected under an emergency rate increase are subject to refund if the
commission finds that the rate increase was larger than necessary to ensure
continuous and adequate service;
(4) the effective date of the emergency rates
must be the first day of a billing cycle, unless otherwise authorized by the
commission;
(5) any emergency rate
increase related to charges for actual consumption will be for consumption
after the effective date. An increase or the portion of an increase that is not
related to consumption may be billed at the emergency rate on the effective
date or the first billing cycle after approval by the commission;
(6) the utility must maintain adequate books
and records for a period not less than 12 months to allow for the determination
of a cost of service as set forth in §
24.41 of this title (relating to
Cost of Service); and
(7) during
the pendency of the emergency rate increase, the commission may require that
the utility deposit all or part of the rate increase into an interest-bearing
escrow account as set forth in §
24.39 of this title (relating to
Escrow of Proceeds Received under Rate Increase).
(d) The costs of any improvements ordered
under subsection (a)(6) of this section may be paid by bond or other financial
assurance in an amount determined by the commission not to exceed the amount of
the bond or financial assurance. After notice and hearing, the commission may
require a retail public utility to obligate additional money to replace the
financial assurance used for the improvements.
(e) An emergency order issued under this
subchapter does not vest any rights and expires in accordance with its terms or
this subchapter.
(f) An emergency
order issued under this subchapter must be limited to a reasonable time as
specified in the order. Except as otherwise provided by this chapter, the term
of an emergency order may not exceed 180 days.
(g) An emergency order may be renewed once
for a period not to exceed 180 days, except an emergency order issued under
subsection (a)(4) of this section.
