| (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.
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