HB 777 (Brackett) regarding municipal water or sewer utility rates, fees and charges will be heard by the House Energy, Communications and Cybersecurity Subcommittee on Wednesday, January 10, at 8:30 a.m.
The bill does the following:
- Effective July 1, 2024, eliminates authorization for municipalities to impose ANY surcharge on water or sewer services provided to extraterritorial customers.
- Provides that any rates, fees or charges for extraterritorial customers must be “just and equitable” and based on the same factors used to fix rates, fees and charges for customers inside the municipality’s boundaries.
- Requires municipal water and sewer utilities to conduct a rate study by January 1, 2027, and every 7 years thereafter.
- Impairs existing contracts between local governments.
- May interfere with bonded revenues.
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