Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 24 - SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS
Subchapter F - CUSTOMER SERVICE AND PROTECTION
Section 24.163 - Service Connections
Universal Citation: 16 TX Admin Code § 24.163
Current through Reg. 50, No. 13; March 28, 2025
(a) Water Service Connections.
(1) Tap Fees. The fees
for initiation of service, where no service previously existed, shall be in
accordance with the following:
(A) The fee
charged by a utility for connecting a residential service applicant's premises
to the system shall be as stated on the approved tariff. In determining the
reasonableness of a tap fee, the commission will consider the actual costs of
materials, labor, and administrative costs for such service connections and
road construction or impact fees charged by authorities with control of road
use if typically incurred and may allow a reasonable estimate of tax
liabilities. The commission may limit the tap fee to an amount equal to the
average costs incurred by the utility.
(B) Whether listed on the utility's approved
tariff or not, the tap fee charged for all service connections requiring meters
larger than 3/4 inch shall be limited to the actual cost of materials, labor
and administrative costs for making the individual service connection and road
construction or impact fees charged by authorities with control of road use and
a reasonable estimate of tax liabilities. The service applicant shall be given
an itemized statement of the costs.
(C) An additional fee may be charged to a
residential service applicant, if stated on the approved tariff, for a tap
expense not normally incurred; for example, a road bore for customers outside
of subdivisions or residential areas.
(2) Installation and Service Connection.
(A) The utility shall furnish and install,
for the purpose of connecting its distribution system to the service
applicant's property, the service pipe from its main to the meter location on
the service applicant's property. See also paragraph (3) of this subsection.
For all new installations, a utility-owned cut-off valve shall be provided on
the utility side of the meter. Utilities without customer meters shall provide
and maintain a cut-off valve on the customer's property as near the property
line as possible. This does not relieve the utility of the obligation to comply
with §
24.169 of this title (relating to
Meters).
(B) The service applicant
shall be responsible for furnishing and laying the necessary service line from
the meter to the place of consumption and shall keep the service line in good
repair. For new taps or for new service at a location with an existing tap,
service applicants may be required to install a customer owned cut-off valve on
the customer's side of the meter or connection. Customers who have damaged the
utility's cut-off valve or curb stop through unauthorized use or tampering may
be required to install a customer owned cut-off valve on the customer's side of
the meter or connection within a reasonable time frame of not less than 30 days
if currently connected or prior to restoration of service if the customer has
been lawfully disconnected under these rules. The customer's responsibility
shall begin at the discharge side of the meter or utility's cut-off valve if
there are no meters. If the utility's meter or cut-off valve is not on the
customer's property, the customer's responsibility will begin at the property
line.
(3) Location of
meters. Meters shall be located on the customer's property, readily accessible
for maintenance and reading and, so far as practicable, the meter shall be at a
location mutually acceptable to the customer and the utility. The meter shall
be installed so as to be unaffected by climatic conditions and reasonably
secure from damage.
(4) Relocation
and conversion of meters. If an existing meter is moved to a location
designated by the customer for the customer's convenience, the utility may not
be responsible except for negligence. The customer may be charged the actual
cost of relocating the meter. If the customer requests that an existing meter
be replaced with a meter of another size or capacity, the customer may be
charged the actual cost of converting the meter including enlarging the line
from the main to the meter if necessary.
(b) Sewer Service Connections.
(1) Tap Fees. The fees for initiation of
sewer service, where no service previously existed, shall be in accordance with
the following:
(A) The fee charged by a
utility for connecting a residential service applicant's premises to the sewer
system shall be as stated on the approved tariff. In determining the
reasonableness of a tap fee, the commission will consider the actual costs of
materials, labor, and administrative costs for such service connections and
road construction or impact fees charged by authorities with control of road
use if typically incurred and may allow a reasonable estimate of tax
liabilities. The commission may limit the tap fee to an amount equal to the
average costs incurred by the utility.
(B) The fee charged for all commercial or
nonstandard service connections shall be set at the actual cost of materials,
labor and administrative costs for making the service connection and road
construction or impact fees charged by authorities with control of road use and
may include a reasonable estimate of tax liabilities. The service applicant
shall be given an itemized statement of the costs.
(C) A fee in addition to the standard tap fee
may be charged for a new residential service connection which requires expenses
not normally incurred if clearly identified on the approved tariff; for
example, a road bore for service applicants outside of subdivisions or
residential areas.
(D) Tap fees for
sewer systems designed to receive effluent from a receiving tank located on the
customer's property, whether fed by gravity or pressure into the utility's
sewer main, may include charges to install a receiving tank and appurtenances
on the customer's property and service line from the tank to the utility's main
which meets the minimum standards set by the utility and authorized by the
commission. The tank may include grinder pumps, etc. to pump the effluent into
the utility's main. Ownership of and maintenance responsibilities for the
receiving tank and appurtenances shall be specified in the utility's approved
tariff.
(2) Installation
and Service Connections.
(A) The utility shall
furnish and install, for the purpose of connecting its collection system to the
service applicant's service line, the service pipe from its main to a point on
the customer's property.
(B) The
customer shall be responsible for furnishing and laying the necessary customer
service line from the utility's line to the residence.
(3) Maintenance by Customer.
(A) The customer service line and
appurtenances installed by the customer shall be constructed in accordance with
the laws and regulations of the State of Texas governing plumbing practices
which must be at least as stringent and comprehensive as one of the following
nationally recognized codes: the Southern Standard Plumbing Code, the Uniform
Plumbing Code, and/or the National Standard Plumbing Code, or other standards
as prescribed by the commission.
(B) It shall be the customer's responsibility
to maintain the customer service line and any appurtenances which are the
customer's responsibility in good operating condition, such as, clear of
obstruction, defects, leaks or blockage. If the utility can provide evidence of
excessive infiltration or inflow into the customer's service line or failure to
provide proper pretreatment, the utility may, with the written approval of the
commission, require that the customer repair the line or eliminate the
infiltration or inflow or take such actions necessary to correct the problem.
If the customer fails to correct the problem within a reasonable time, the
utility may disconnect the service after notice as required under §
24.167 of this title (relating to
Discontinuance of Service). Less than ten days notice may be given if
authorized by the commission.
(C)
If the customer retains ownership of receiving tanks and appurtenances located
on the customer's property under the utility's tariff, routine maintenance and
repairs are the customer's responsibility. The utility may require in its
approved tariff that parts and equipment meet the minimum standards set by the
utility to ensure proper and efficient operation of the sewer system but cannot
require that the customer purchase parts or repair service from the
utility.
(c) Line extension and construction charges. Each utility shall file its extension policy with the commission as part of its tariff. The policy shall be consistent and nondiscriminatory. No contribution in aid of construction may be required of any service applicant except as provided for in the approved extension policy.
(1) Contributions in aid of
construction shall not be required of individual residential service applicants
for production, storage, treatment, or transmission facilities unless that
residential customer places unique, non-standard service demands upon the
system, in which case, the customer may be charged the additional cost of
extending service to and throughout his property, including the cost of all
necessary collection or transmission facilities necessary to meet the service
demands anticipated to be created by that property.
(2) Developers may be required to provide
contributions in aid of construction in amounts sufficient to reimburse the
utility for:
(A) existing uncommitted
facilities at their original cost if the utility has not previously been
reimbursed. A utility shall not be reimbursed for facilities in excess of the
amount the utility paid for the facilities. A utility is not required to
allocate existing uncommitted facilities to a developer for projected
development beyond a reasonable planning period; or
(B) additional facilities compliant with the
commission's minimum design criteria for facilities used in the production,
transmission, pumping, or treatment of water or the commission's minimum design
criteria for wastewater collection and treatment facilities and to provide for
reasonable local demand requirements. Income tax liabilities which may be
incurred due to collection of contributions in aid of construction may be
included in extension charges to developers. Additional tax liabilities due to
collection of the original tax liability may not be collected unless they can
be supported and are specifically noted in the approved extension
policy.
(3) For purposes
of this subsection, a developer is one who subdivides or requests more than two
water service connections or sewer service connections on a single contiguous
tract of land.
(d) Cost utilities and service applicants shall bear.
(1) Within its certificated area, a utility
shall be required to bear the cost of the first 200 feet of any water main or
sewer collection line necessary to extend service to an individual residential
service applicant within a platted subdivision unless the utility can document:
(A) that the developer of the subdivision
refused to provide facilities compatible with the utility's facilities in
accordance with the utility's approved extension policy after receiving a
written request from the utility; or
(B) that the developer of the subdivision
defaulted on the terms and conditions of a written agreement or contract
existing between the utility and the developer regarding payment for services,
extensions, or other requirements; or in the event the developer declared
bankruptcy and was therefore unable to meet obligations; and
(C) that the residential service applicant
purchased the property from the developer after the developer was notified of
the need to provide facilities to the utility.
(2) A residential service applicant may be
charged the remaining costs of extending service to his property; provided,
however, that the residential service applicant may only be required to pay the
cost equivalent to the cost of extending the nearest water main or wastewater
collection line, whether or not that line has adequate capacity to serve that
residential service applicant. The following criteria shall be considered to
determine the residential service applicant's cost for extending service:
(A) The residential service applicant shall
not be required to pay for costs of main extensions greater than two inches in
diameter for water distribution and pressure wastewater collection lines and
six inches in diameter for gravity wastewater lines.
(B) Exceptions may be granted by the
commission if:
(i) adequate service cannot be
provided to the applicant using the maximum line sizes listed due to distance
or elevation, in which case, it shall be the utility's burden to justify that a
larger diameter pipe is required for adequate service;
(ii) larger minimum line sizes are required
under subdivision platting requirements or building codes of municipalities
within whose corporate limits or extraterritorial jurisdiction the point of use
is located; or
(iii) the
residential service applicant is located outside the CCN service
area.
(C) If an exception
is granted, the utility must establish a proportional cost plan for the
specific extension or a rebate plan which may be limited to seven years to
return the portion of the applicant's costs for oversizing as new customers are
added to ensure that future applicants for service on the line pay at least as
much as the initial service applicant.
(3) The utility shall bear the cost of any
oversizing of water distribution lines or wastewater collection lines necessary
to serve other potential service applicants or customers in the immediate area
or for fire flow requirements unless an exception is granted under paragraph
(2)(B) of this subsection.
(4) For
purposes of determining the costs that service applicants shall pay, commercial
customers with service demands greater than residential customer demands in the
certificated area, industrial, and wholesale customers may be treated as
developers. A service applicant requesting a one inch meter for a lawn
sprinkler system to service a residential lot is not considered nonstandard
service.
(e) Other Fees for Service Applicants. Except for an affected county, utilities shall not charge membership fees or application fees.
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