Update: Water Regulation Transfer Public Utility Commission

The Public Utility Commission (PUC) held a workshop on February 26, 2014, to discuss the PUC staff’s proposed changes to the substantive rules, procedural rules, and forms related to the transfer of the of water rate and certificate of convenience and necessity (CCN) programs from the from Texas Commission on Environmental Quality (TCEQ).

The progress of these rulemaking packages is available on the PUC website.

Phase I of the transfer to the PUC runs from now until August 31, 2014, with certain programs moving from the TCEQ to the PUC on September 1, 2014. Included in phase I is the migration of Chapter 291 of the TCEQ rules that govern water rates and CCN programs to Chapter 24 of the PUC rules, as well as procedures for cases that are ongoing at TCEQ when the transfer occurs.

The PUC plans to formally propose the new rules in March, at which time it will seek formal comments. The rules should then be adopted at the end of July.

Phase II will include a rulemaking to implement the new retail water utility rate structure from S.B. 567 and H.B. 1600. That phase will begin in September and is scheduled to be implemented in the summer of 2015.

The League will continue to monitor and report on the rulemaking process.

TML member cities may use the material herein for any purpose. No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League.

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