| (a) Notwithstanding other provisions of this chapter,
upon sending written notice to the commission, a retail public utility
other than a municipally owned utility or a water and sewer utility
subject to the original rate jurisdiction of a municipality that takes
over the provision of services for a nonfunctioning retail public
water or sewer utility service provider may immediately begin charging
the customers of the nonfunctioning system a temporary rate to recover
the reasonable costs incurred for interconnection or other costs incurred
in making services available and any other reasonable costs incurred
to bring the nonfunctioning system into compliance with commission
rules.
(b) Notice of the temporary rate must be provided to
the customers of the nonfunctioning system no later than the first
bill which includes the temporary rates.
(c) Within 90 days of receiving notice of the temporary
rate increase, the commission will issue an order regarding the reasonableness
of the temporary rates. In making the determination, the commission
will consider information submitted by the retail public utility taking
over the provision of service, the customers of the nonfunctioning
system, or any other affected person.
(d) At the time the commission approves an acquisition
of a nonfunctioning retail water or sewer utility service provider
under Texas Water Code (TWC) §13.301, the commission must:
(1) determine the duration of the temporary rates to
the retail public utility, which must be for a reasonable period;
and
(2) rule on the reasonableness of the temporary rates
under subsection (a) of this section if the commission did not make
a ruling before the application was filed under TWC §13.301.
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