| (a) Purpose. This section describes the requirements
for the processing of applications 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) Proceedings Under TWC §13.187. The following
criteria apply to applications to change rates filed by Class A utilities
under TWC §13.187.
(1) Not later than the 30th day after the effective
date of the change, the commission will begin a hearing to determine
the propriety of the change.
(2) The matter may be referred to the State Office
of Administrative Hearings and the referral will be deemed to be the
beginning of the hearing required by paragraph (1) of this subsection.
(3) If the matter is not referred to the State Office
of Administrative Hearings, an order establishing a date for a prehearing
conference will be deemed to be the beginning of the hearing required
by paragraph (1) of this subsection.
(c) Proceedings Under TWC §13.1871. The following
criteria apply to applications to change rates filed by a Class B,
C, or D utility, using the procedures in TWC §13.1871.
(1) The commission may set the matter for hearing on
its own motion at any time within 120 days after the effective date
of the rate change.
(2) The commission will set the matter for a hearing
if it receives a complaint from any affected municipality or protests
from the lesser of 1,000 or 10 percent of the affected ratepayers
of the utility over whose rates the commission has original jurisdiction,
during the first 90 days after the effective date of the proposed
rate change.
(A) Ratepayers may file individual protests or joint
protests. Each protest must contain the following information:
(i) a clear and concise statement that the ratepayer
is protesting a specific rate action of the water or sewer service
utility in question; and
(ii) the name and service address or other identifying
information of each signatory ratepayer. The protest must list the
address of the location where service is received if it differs from
the residential address of the signatory ratepayer.
(B) For the purposes of this subsection, each person
receiving a separate bill is considered a ratepayer, but one person
may not be considered more than one ratepayer regardless of the number
of bills the person receives. The protest is properly signed if signed
by a person, or the spouse of a person, in whose name utility service
is carried.
(3) Referral to the State Office of Administrative
Hearings at any time during the pendency of the proceeding is deemed
to be setting the matter for hearing as required by paragraphs (1)
and (2) of this subsection.
(4) If the matter is not referred to the State Office
of Administrative Hearings, an order establishing a date for a prehearing
conference is deemed to be the beginning of the hearing required by
paragraph (2) of this subsection.
(d) If, after hearing, the regulatory authority finds
the rates currently being charged or those proposed to be charged
are unreasonable or in violation of the law, the regulatory authority
will determine the rates to be charged by the utility and will fix
the rates by order served on the utility.
(e) The utility may begin charging the proposed rates
on the proposed effective date, unless the proposed rate change is
suspended by the commission under §24.33 of this title (relating
to Suspension of the Effective Date of Rates) or interim rates are
set by the presiding officer under §24.37 of this title (relating
to Interim Rates). Rates charged under a proposed rate during the
pendency of a proceeding are subject to refund to the extent the commission
ultimately approves rates that are lower than the proposed rates.
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