Texas SB1891 amends Water Code to redefine test years for ratemaking by water and sewer utilities.

Texas SB1891 amends the Water Code to redefine the criteria for selecting test years used in ratemaking by water and sewer utilities. The bill specifies that a regulatory authority must base rates on a test year selected by the utility, which must include historic, future, or combined data, begin on the first day of a calendar or fiscal year quarter, and be a 12-month period starting no later than 18 months after the utility files a statement of intent to change rates and ending no earlier than 18 months before such a filing.

Texas SB1891 amends Water Code to redefine test years for ratemaking by water and sewer utilities.

Texas SB1891 amends the Water Code to redefine the criteria for selecting test years used in ratemaking by water and sewer utilities. The bill specifies that a regulatory authority must base rates on a test year selected by the utility, which must include historic, future, or combined data, begin on the first day of a calendar or fiscal year quarter, and be a 12-month period starting no later than 18 months after the utility files a statement of intent to change rates and ending no earlier than 18 months before such a filing.