89R13872 CS-D     By: Flores S.B. No. 2161       A BILL TO BE ENTITLED   AN ACT   relating to expenses incurred in the appeal of rates for water or   sewer service charged to certain customers.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 13.043, Water Code, is amended by   amending Subsection (e) and adding Subsections (e-1) and (e-2) to   read as follows:          (e)  In an appeal under Subsection (b), the utility   commission shall hear the appeal de novo and shall fix in its final   order the rates the governing body should have fixed in the action   from which the appeal was taken. The utility commission may   establish the effective date for the utility commission's rates at   the original effective date as proposed by the service provider   and[,] may order refunds or allow a surcharge to recover lost   revenues[, and may allow recovery of reasonable expenses incurred   by the retail public utility in the appeal proceedings. The utility   commission may consider only the information that was available to   the governing body at the time the governing body made its decision   and evidence of reasonable expenses incurred by the retail public   utility in the appeal proceedings]. The rates established by the   utility commission in an appeal under Subsection (b) remain in   effect until the first anniversary of the effective date proposed   by the retail public utility for the rates being appealed or until   changed by the service provider, whichever date is later, unless   the utility commission determines that a financial hardship exists.          (e-1)  Any party represented by counsel who alleges that   existing rates are excessive or that rates prescribed by a   governing body are excessive and who is a prevailing party in   proceedings for review of a governing body decision may in the same   action recover reasonable fees for attorneys and expert witnesses   and other costs incurred by the prevailing party before the utility   commission. The amount of the attorney's fees shall be fixed by the   utility commission.          (e-2)  On a finding by the utility commission that an action   under this subchapter was groundless and brought in bad faith and   for the purpose of harassment, the utility commission may award to   the defendant retail public utility reasonable attorney's fees.          SECTION 2.  The changes in law made by this Act apply only to   an appeal under Section 13.043(b), Water Code, that is filed on or   after the effective date of this Act. An appeal that is filed   before the effective date of this Act is governed by the law in   effect on the date the appeal was filed, and the former law is   continued in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2025.