(a) A district created pursuant to Texas Constitution,
Article XVI, §59, which district is located within the corporate
limits or the extraterritorial jurisdiction of a municipality and
which receives water or sewer service or whose residents receive water
or sewer service from the municipality may by filing a petition with
the commission appeal the rates charged by the municipality if the
resolution, ordinance, or agreement of the municipality consenting
to the creation of the district required the district to purchase
water or sewer service from the municipality.
(b) The commission shall hear the appeal de novo and
the municipality shall have the burden of proof to establish that
the rates are just and reasonable.
(c) After the commission establishes just and reasonable
rates, the municipality may not increase those rates without approval
of the commission. A municipality desiring to increase rates must
provide the commission with updated information in a format specified
in the current rate data package developed by the Rates Section.
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