Current through Reg. 50, No. 13; March 28, 2025
(a) Purpose. This section describes the
requirements for the contents of an application to change rates and the
requirements for the provision of notice of an application to change rates
filed by a Class A, B, or C utility, or a Class D utility filing under Texas
Water Code (TWC) §13.1872(c)(2).
(b) Contents of the application. An
application to change rates is initiated by the filing of the applicable rate
filing package, a statement of intent to change rates, and the proposed form
and method of notice to customers and other affected entities under subsection
(c) of this section.
(1) The application must
include the commission's rate filing package form and include all required
schedules.
(2) The application must
be based on a test year as defined in §
24.3(36) of this
title (relating to Definitions of Terms).
(3) For an application filed by a Class A
utility, the rate filing package, including each schedule, must be supported by
pre-filed direct testimony. The pre-filed direct testimony must be filed at the
same time as the application to change rates.
(4) For an application filed by a Class B
utility, Class C utility, or Class D utility filing under TWC
§13.1872(c)(2), the applicable rate filing package, including each
schedule, must be supported by affidavit. The affidavit must be filed at the
same time as the application to change rates. The utility may file pre-filed
direct testimony at the same time as the application to change rates. If the
application is set for a hearing, the presiding officer may require the filing
of pre-filed direct testimony at a later date.
(5) Proof of notice. Proof of notice in the
form of an affidavit stating that proper notice was mailed, e-mailed, or
delivered to customers and affected municipalities and stating the dates of
such delivery must be filed with the commission by the applicant utility as
part of the rate change application.
(c) Notice requirements specific to
applications filed by a Class A Utility under TWC §13.187.
(1) Notice of the application. In order to
change rates under TWC §13.187, a utility must comply with the following
requirements at least 35 days before the effective date of the proposed change.
(A) The utility must file a statement of
intent (notice) with the commission and provide a copy of the notice to all
customers of the utility affected by the proposed rate change, to the
appropriate offices of each municipality affected by the proposed rate change,
and to the Office of Public Utility Counsel.
(B) Notice must be provided using the
commission-approved form and must include a description of the process by which
a ratepayer may intervene in the proceeding.
(C) This notice must state the docket number
assigned to the rate application. Prior to the provision of notice, the utility
must file a request for the assignment of a docket number for the rate
application.
(D) Notices to
affected ratepayers may be mailed separately, e-mailed (if the customer has
agreed to receive communications electronically), or may accompany customer
billings.
(E) Notice is considered
to be completed upon mailing, e-mailing (if the customer has agreed to receive
communications electronically), or hand delivery.
(2) Notice of the hearing. After the rate
application is set for a hearing, the commission will give reasonable notice of
the hearing, including notice to the governing body of each affected
municipality and county. The commission may require the utility to complete
this notice requirement. The commission may delegate to an administrative law
judge of the State Office of Administrative Hearings the responsibility and
authority to give reasonable notice of the hearing, including notice to the
governing body of each affected municipality and county.
(d) Notice requirements specific to
applications filed by Class B, C, and D utilities.
(1) Notice of the application. In order to
change rates, a Class B or C utility, or a Class D utility filing under TWC
§13.1872(c)(2), must comply with the following requirements at least 35
days before the effective date of the proposed change.
(A) The utility must file a notice with the
commission and provide a copy of the notice to all customers of the utility
affected by the proposed rate change, to the appropriate offices of each
municipality affected by the proposed rate change, and to the Office of Public
Utility Counsel.
(B) Notice must be
provided using the commission-approved form and must include a description of
the process by which a ratepayer may file a protest under TWC
§13.1871(i).
(C) The notice
must state the docket number assigned to the rate application. Prior to
providing notice, a Class B or C utility, or a Class D utility filing under TWC
§13.1872(c)(2), must file a request for the assignment of a docket number
for the rate application.
(D)
Notices to affected ratepayers may be mailed separately, e-mailed (if the
customer has agreed to receive communications electronically), or may accompany
customer billings.
(E) Notice is
considered to be completed upon mailing, e-mailing (if the customer has agreed
to receive communications electronically), or hand
delivery.
(2) Notice of
the hearing. After the rate application is set for a hearing, the following
notice requirements apply.
(A) The commission
will give reasonable notice of the prehearing conference, including notice to
the governing body of each affected municipality and county. The commission may
require the utility to provide this notice. The commission may delegate to an
administrative law judge of the State Office of Administrative Hearings the
responsibility and authority to give reasonable notice for the prehearing
conference, including notice to the governing body of each affected
municipality and county.
(B) A
Class B utility must mail notice of the prehearing conference to each affected
ratepayer at least 20 days before the prehearing conference.
(C) A Class C utility, or a Class D utility
filing under TWC §13.1872(c)(2), must mail, e-mail, or hand deliver notice
of the prehearing conference to each affected ratepayer at least 20 days before
the prehearing conference.
(D) A
notice provided under subparagraph (B) or (C) of this paragraph must include a
description of the process by which a ratepayer may intervene in the
proceeding.
(e)
Line extension and construction policies. A request to approve or amend a
utility's line extension and construction policy must be filed in a rate change
application under TWC §§13.187, 13.1871, 13.18715, or 13.1872(c)(2).
The application must include the proposed tariff and other information
requested by the commission. The request may be made with a request to change
one or more of the utility's other rates.
(f) Capital improvements surcharge. In a rate
proceeding under TWC §§13.187, 13.1871, 13.18715, or 13.1872(c)(2),
the commission may approve a surcharge to collect funds for capital
improvements necessary to provide facilities capable of providing continuous
and adequate utility service, and for the preparation of design and planning
documents.
(g) Debt repayments
surcharge. In a rate proceeding under TWC §§13.187, 13.1871,
13.18715, or 13.1872(c)(2), the commission may approve a surcharge to collect
funds for debt repayments and associated costs, including funds necessary to
establish contingency funds and reserve funds. Surcharge funds may be collected
to meet all the requirements of the Texas Water Development Board regarding
financial assistance from the Safe Drinking Water Revolving Fund.
