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Project #47303

Rulemaking Proceeding to Amend 16 TAC Section §24.21 for a Pass Though Provision Formula and to Implement House Bill 1083 to Allow a Utility to Establish Reduced Water Utility Rates Funded by Donations for Elderly Customers Pursuant to TWC Sections 13.182 And 13.189


HB 1083 amends Texas Water Code § 13.182(b) by adding Subsection (b-1) to allow the regulatory authority with rate jurisdiction over a utility to establish reduced rates for a minimal "life line" level of service to elderly customers to ensure they get service at an affordable rate. The bill also requires a regulatory authority to allow a utility to establish a fund to accept donations to recover the costs associated with providing the reduced rates to elderly customers. In addition, the bill specifies that a utility may not recover those costs through charges to the utility's other customer classes.

HB 1083 also adds Texas Water Code § 13.189(c) to clarify that a reduced rate authorized under proposed new Texas Water Code § 13.182(b-1) does not give an unreasonable preference or advantage to any corporation or person, subject a corporation or person to an unreasonable prejudice or disadvantage or constitute an unreasonable difference as to rates of service between customer classes.

Since section 24.21 will be open and it covers minor tariff changes, staff will correct the current pass through provision formula.

Staff Assigned:

Jonathan Ramirez

Tammy Benter

Debi Loockerman

Ashley Nwonuma


The adoption will be published in the Texas Register on December 29, 2017.
The rule will be effective on January 7, 2018.
The proposal will be published in the Texas Register on September 15, 2017;
Comments are due October 13, 2017

Documents Available

Order Adopting Amendment to §24.21 as Approved at the December 14, 2017 Open Meeting
Proposal for Publication of Amendments To § 24.21 as Approved at the August 31, 2017 Open Meeting