All Roll Calls
Yes: 337 • No: 0
TexasSB 74089th Legislature Regular SessionSenate
Relating to certain proceedings by the Public Utility Commission of Texas regarding water or sewer service.
Sponsored By: Charles Perry (Republican), David Spiller
Signed by Governor
Utilities--GeneralUtilities--Water & SewerWATER & SEWER SERVICEENVIRONMENTAL QUALITY, TEXAS COMMISSION ONPUBLIC UTILITY COMMISSION
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
More managers for troubled water utilities
Beginning September 1, 2025, more entities can serve as court-appointed receivers or willing temporary managers for troubled water and sewer utilities. They include people, city-owned utilities, counties, water or sewer corporations, public utility agencies, and specified districts or authorities. Receivers can seek commission approval to buy facilities and transfer the utility's service certificate through the required acquisition process. Temporary management is available after abandoned operations or service, or a past or current referral for a receiver. It also covers utilities with fewer than 10,000 taps or connections that violate final commission orders on capacity, pressure, or monitoring. These standards include 35 psi under normal conditions and properly calibrated treatment and monitoring equipment. Before temporary management, the utility must receive notice and a chance to be heard at a commission meeting.
Faster water utility sales, later cost recovery
Beginning September 1, 2025, expedited purchase paths cover utilities in receivership, supervision, or temporary management, including their service certificates when applicable. Eligible buyers include Class A or B utilities, city-owned utilities, counties, water or sewer corporations, public utility agencies, and specified districts or authorities. Buyers must first be appointed manager or supervisor by the commission, or receiver at its request. Public notice is waived; approval is required for public-interest deals, and the appointment counts as proof of service capability. Local-entity purchases follow the utility process except where the commission's lack of original rate authority prevents it. For Class A or B buyers, qualifying used-and-useful investment and reasonable operating costs during appointment are recoverable in their next comprehensive rate case or system improvement charge application, potentially raising customer bills.
Less state review of city water deals
Beginning September 1, 2025, Texas limits state review of cities' wholesale water deals. The commission's jurisdiction under the affected law covers city water supplied to other political subdivisions, but not other cities. A separate rate-appeal rule no longer applies to a city's decisions about wholesale water or sewer service to another city. The commission also no longer must expressly consider intercity service agreement terms in rate appeals. Cities gain more control over these arrangements, while customers have less state oversight.
New checks on water infrastructure charges
System improvement charges let water and sewer utilities recover infrastructure costs through customer bills outside regular base-rate cases. For applications received beginning September 1, 2026, utilities must use a standard form and document each eligible cost not already in rates. Applications cannot be complete before day 30; final orders are due within 60 days after completion, plus up to 15 days for good cause. Applicants must send the Office of Public Utility Counsel a copy, and the office has 30 days to comment. The office gets related commission data electronically at no cost, with confidentiality protections retained. The commission must complete the required procedural changes by September 1, 2026; earlier applications follow prior law.
Sponsors & Cosponsors
Sponsors
Charles Perry
Republican • Senate
David Spiller
House
Cosponsors
Sarah Eckhardt
Democratic • Senate
Royce West
Democratic • Senate
Roll Call Votes
Senate vote • 5/26/2025
Record vote
Yes: 31 • No: 0
House vote • 5/22/2025
Record vote
Yes: 144 • No: 0
House vote • 5/21/2025
Record vote
Yes: 142 • No: 0
Senate vote • 3/24/2025
Record vote
Yes: 0 • No: 0
Senate vote • 3/24/2025
Record vote
Yes: 0 • No: 0
Senate vote • Unknown
Committee vote: Water, Agriculture and Rural Affairs
Yes: 9 • No: 0
House vote • Unknown
Committee vote: Natural Resources
Yes: 11 • No: 0
Actions Timeline
Effective on 9/1/25
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
5/28/2025HouseSigned in the House
5/28/2025HouseSigned in the Senate
5/27/2025SenateReported enrolled
5/26/2025SenateSenate concurs in House amendment(s)-reported
5/26/2025HouseRecord vote
5/26/2025SenateSenate concurs in House amendment(s)
5/26/2025SenateRead
5/26/2025SenateHouse amendment(s) laid before the Senate
5/26/2025SenateHouse passage as amended reported
5/23/2025SenateStatement(s) of vote recorded in Journal
5/22/2025HouseRecord vote (RV#3204)
5/22/2025HousePassed
5/22/2025HouseRead 3rd time
5/22/2025HouseStatement(s) of vote recorded in Journal
5/21/2025HouseRecord vote (RV#3173)
5/21/2025HousePassed to 3rd reading as amended
5/21/2025HouseAmended (2-Tepper)
5/21/2025HouseAmended (1-Spiller)
5/21/2025HouseRead 2nd time
5/21/2025HousePlaced on General State Calendar
5/21/2025HouseConsidered in Calendars
5/19/2025HouseCommittee report sent to Calendars
4/29/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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