| (a) If the commission finds the protested rate adversely
affects the public interest and sets rates on a cost of service basis,
then the commission shall add the following provisions to its order:
(1) If the purchaser files a new petition or appeal,
and the commission forwards the petition or appeal to the State Office
of Administrative Hearings pursuant to §24.307 of this title
(relating to Commission's Review of Petition or Appeal), then the
administrative law judge shall set an interim rate immediately. The
interim rate shall equal the rate set by the commission in this proceeding
where the commission granted the petition or appeal and set a cost
of service rate.
(2) The commission shall determine in the proceedings
pursuant to the new petition or appeal that the protested rate adversely
affects the public interest. The administrative law judge shall not
hold an evidentiary hearing on public interest but rather shall proceed
with the evidentiary hearing to determine a rate consistent with the
ratemaking mandates of the TWC, Chapters 12 and 13.
(b) The effective period for the provisions issued
pursuant to subsection (a) of this section shall expire upon the earlier
of three years after the end of the test year period, or upon the
seller and purchaser entering into a new written agreement for the
sale of water or sewer service which supersedes the agreement which
was the subject of the proceeding where the commission granted the
petition or appeal and set a cost of service rate. The provisions
shall be effective in proceedings pursuant to a new petition or appeal
if the petition or appeal is filed before the date of expiration.
(c) For purposes of subsection (b) of this section,
the "test year period" is the test year used by the commission in
the proceeding where the commission granted the petition or appeal
and set rates on a cost of service basis.
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