Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.

SB 2160 clarifies that the Public Utility Commission of Texas (PUC) has exclusive authority to regulate rates, operations, and services for water and sewer utilities owned by municipalities when those utilities serve customers outside the city's corporate boundaries. This directly affects rural residents and businesses located beyond city limits but served by city-owned utilities, as the PUC - not the city - will now oversee their rates and service standards. The bill also updates appeal procedures, allowing these outside-ratepayers to challenge rate decisions with the PUC. The changes take effect September 1, 2025, applying only to rate proceedings initiated after that date.