| (a) Application. The following provisions are applicable
to utilities, including those with consolidated or regional tariffs,
under common control or ownership with any utility that has filed
a statement of intent to increase rates under TWC §§13.187,
13.1871, or 13.18715.
(b) A utility, or two or more utilities under common
control and ownership, may not file a statement of intent to increase
rates more than once in a 12-month period except:
(1) to implement an approved purchase water pass through
provision;
(2) to adjust the rates of a newly acquired utility
system;
(3) to comply with a commission order;
(4) to adjust rates authorized by §24.25(b)(2)
of this title (relating to Form and Filing of Tariffs);
(5) when the regulatory authority requires the utility
to deliver a corrected statement of intent; or
(6) when the regulatory authority determines that a
financial hardship exists. A utility may be considered to be experiencing
a financial hardship if revenues are insufficient to:
(A) cover reasonable and necessary operating expenses;
(B) cover cash flow needs which may include regulatory
sampling requirements, unusual repair and maintenance expenses, revenues
to finance required capital improvements or, in certain instances,
existing debt service requirements specific to utility operations;
or
(C) support a determination that the utility is able
to provide continuous and adequate service to its existing service
area.
(c) A Class D utility under common control or ownership
with a utility that has filed an application to change rates under
TWC §§13.187, 13.1871, or 13.18715 within the preceding
12 months may not file an application to change rates under TWC §13.1872(c)(2)
unless one of the exceptions listed in subsection (b) of this section
applies.
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