SB 2161 Texas Senate · 89th Legislature (2025)

Relating to expenses incurred in the appeal of rates for water or sewer service charged to certain customers.

This bill (SB 2161) allows certain ratepayers to recover legal costs if they successfully challenge water or sewer rates set by a municipally owned utility. Specifically, it applies to customers living outside a municipality's corporate limits who hire an attorney and win an appeal proving the rate increase was unjustified. If the utility commission finds the rate hike lacked factual or legal basis, the successful ratepayer may recover reasonable attorney fees, expert witness costs, and other expenses incurred during the appeal. The law applies only to appeals filed on or after September 1, 2025, and does not change how pre-existing appeals are handled.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
Apr 2025
Senate Passage
Apr 2025
House Passage
Governor
Introduced Mar 10, 2025 Last action Apr 28, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 3 edits · Apr 24, 2025
MINOR
This bill updates Texas water law to allow ratepayers of municipally owned utilities to claim attorney fees and expert witness costs if they successfully challenge excessive rates. The changes also clarify that these fee recoveries apply specifically to ratepayers living outside municipal boundaries who are represented by counsel.
Scope change
The bill expands fee recovery eligibility to include ratepayers of municipally owned utilities who reside outside corporate limits and are represented by attorneys, whereas the original text focused on parties represented by counsel without specifying utility type or residency requirements.
ELIGIBILITY

New eligibility criteria added for ratepayers of municipally owned utilities who live outside municipal boundaries and are represented by an attorney to claim attorney fees and costs.

REQUIREMENT

Modified the scope of fee recovery to specifically address ratepayers of municipally owned utilities rather than all parties represented by counsel.

TECHNICAL

Removed formatting inconsistencies and placeholder text from the original draft version.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
24
Key actions
5
Committee
6
Apr 28, 2025
Committee
Referred to Natural Resources
lower
Apr 28, 2025
Introduced
Read first time
lower
Apr 25, 2025
Introduced
Received from the Senate
lower
Apr 24, 2025
Upper · Passed
Passed
upper
Apr 15, 2025
Upper · Passed
Committee report printed and distributed
upper
Apr 15, 2025
Upper · Passed
Reported favorably as substituted
upper
Apr 14, 2025
Upper · Passed
Vote taken in committee
upper
Apr 14, 2025
Upper · Passed
Testimony taken in committee
upper
Mar 24, 2025
Committee
Referred to Water, Agriculture, & Rural Affairs
upper
Mar 24, 2025
Introduced
Read first time
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.