Adopted Rules Title 16

TITLE 16. ECONOMIC REGULATION

PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 24. SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS

The Public Utility Commission of Texas (commission) repeals 16 Texas Administrative Code (TAC) §24.361, relating to Municipal Rates for Certain Recreational Vehicle Parks, with no changes to the proposed text as published in the August 30, 2024, issue of the Texas Register (49 TexReg 6665) and will not be republished, and adopts new 16 TAC §24.50, relating to Rates for Certain Recreational Vehicle Parks, with changes to the proposed text as published in the August 30, 2024, issue of the Texas Register (49 TexReg 6664) and will be republished. The rule implements Texas Water Code (TWC) §13.152 as added by Senate Bill (SB) 594 during the Texas 88th Regular Legislative Session. The new rule will require a retail public utility, other than a municipally owned utility (MOU), that provides water or sewer service to a recreational vehicle park to ensure that billing for the service is based on actual water usage recorded by the retail public utility. The new rule will also prohibit a retail public utility, other than an MOU, from imposing a surcharge based on the number of recreational vehicle or cabin sites in the recreational vehicle park. The repeal and new rule are adopted under Project Number 56828.

The commission received comments on the proposed new rule from the Texas Rural Water Association (TRWA).

Proposed §24.50(a) - Definitions

Proposed §24.50(a) defines certain terms in the rule.

TRWA suggested adding a definition of "cabin" that also includes tiny homes. TRWA stated that the new law has created confusion and that it had received questions regarding the definition of "cabin" and whether that definition includes "tiny homes."

Commission Response

The commission disagrees with adding a definition of "cabin" because it is unnecessary. "Cabin" is a commonly understood term that does not need further specification for purposes of this rule. The word "cabin" in TWC §13.152(b)(2) describes a site within a recreational vehicle park that has a water connection and is distinguishable from a recreational vehicle site. It is not a standalone concept. A recreational vehicle park that has water connections for recreational vehicles may also have connections for other types of habitation, such as cabins. The purpose of the term "cabin" in TWC §13.152(b)(2) is to clarify that the prohibition on imposing a surcharge applies to all water connections within a recreational vehicle park, not just those for recreational vehicles.

The commission also declines to include the term "tiny home" in the rule for the reasons above and because "tiny home" is an ambiguous term that could be classified in different ways, depending upon a particular tiny home's features (e.g., is it stationary, or mounted on a chassis).

The commission further clarifies the intended application of this rule by modifying the definition of "recreational vehicle park" to align with how that term is defined in TWC §13.087. Specifically, the adopted definition states that a recreational vehicle park is designed "primarily for recreational vehicle transient guest use." Accordingly, regardless of whether a cabin includes a "tiny home," the key factor determining whether the rule applies is whether the location is primarily intended to service recreational vehicles.

Proposed §24.50(b) - Municipally owned utilities providing nonsubmetered master metered utility service

Under proposed §24.50(b), a municipally owned utility that provides nonsubmetered master metered utility service to a recreational vehicle park must determine the rates for that service on the same basis that it uses to determine the rates for other similar commercial businesses. The commission modifies the rule to reflect that such utilities are also prohibited from charging a recreational vehicle park a fee that the utility does not charge other commercial businesses. This prohibition already applies to municipally owned utilities under TWC § 13.087(b-1). Accordingly, this modification does not impose any new burdens on municipally owned utilities and prevents confusion over the applicable requirements.

Proposed §24.50(c) - Billing based on actual water usage data

Proposed §24.50(c) requires that a retail public utility, other than an MOU, ensure that billing for service is based on actual water usage recorded by the retail public utility.

TRWA suggested adding a sentence to the rule that would allow a retail public utility providing sewer service to use the best means available for determining the actual water usage of an RV park for billing purposes when actual water usage data is not available to that utility. TRWA argued that some sewer service providers do not have access to actual water usage data, and that the commission's rules already allow some retail public utilities to calculate customers' sewer service bills based on best available data (16 TAC §24.165(f)).

Commission Response

The commission declines to modify the rule to allow a retail public utility providing sewer service to use the best means available to determine actual water usage when actual water usage data is not available, as requested by TRWA. The plain language of TWC §13.152(b) explicitly states that "a retail public utility...providing water or sewer service to a recreational vehicle park...shall ensure that billing for the service is based on actual water usage recorded by the retail public utility" (emphasis added). Accordingly, this requirement already applies to retail public utilities providing water and sewer service by statute, and the commission does not have authority to overrule or circumvent explicit statutory requirements by rule.

In adopting this section, the commission makes other minor modifications for the purpose of clarifying its intent.

SUBCHAPTER B. RATES AND TARIFFS

16 TAC §24.50

The new section is adopted under the Texas Water Code (TWC) §13.041(a), which provides the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by the Texas Water Code that is necessary and convenient to the exercise of that power and jurisdiction; TWC §13.041(b), which provides the commission the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; TWC §13.087, which prescribes municipal rates for certain recreational vehicle parks; and TWC §13.152, which establishes billing requirements for recreational vehicle parks by a retail public utility other than an MOU described by TWC §13.087.

Cross Reference to Statutes: Texas Water Code §§13.041(a) and (b), 13.087, 13.152.

§24.50.Rates for Certain Recreational Vehicle Parks.

(a) The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.

(1) Nonsubmetered master metered utility service--Potable water service that is master metered but not submetered and wastewater service that is based on master metered potable water service.

(2) Recreational vehicle--Includes a:

(A) house trailer as that term is defined by Texas Transportation Code, §501.002; and

(B) towable recreational vehicle as that term is defined by Texas Transportation Code, §541.201.

(3) Recreational vehicle park--A commercial property that is designed primarily for recreational vehicle transient guest use and for which fees for site service connections for recreational vehicles, as defined by Texas Transportation Code, §522.004(b), are paid daily, weekly, or monthly.

(b) A municipally owned utility that provides nonsubmetered master metered utility service to a recreational vehicle park must determine the rates for that service on the same basis the utility uses to determine the rates for other commercial businesses that serve transient customers and receive nonsubmetered master metered utility service from the utility, and must not charge a recreational vehicle park a fee that the utility does not charge other commercial businesses.

(c) A retail public utility, other than a municipally owned utility to which subsection (b) of this section applies, that provides water or sewer service to a recreational vehicle park:

(1) must ensure that billing for the service is based on actual water usage recorded by the retail public utility; and

(2) is prohibited from imposing a surcharge based on the number of recreational vehicle or cabin sites in the recreational vehicle park.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 25, 2024.

TRD-202405023

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Effective date: November 14, 2024

Proposal publication date: August 30, 2024

For further information, please call: (512) 936-7322

SUBCHAPTER K. ENFORCEMENT, SUPERVISION, AND RECEIVERSHIP

16 TAC §24.361

The repeal is adopted under the Texas Water Code (TWC) §13.041(a), which provides the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by the Texas Water Code that is necessary and convenient to the exercise of that power and jurisdiction; TWC §13.041(b), which provides the commission the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; TWC §13.087, which prescribes municipal rates for certain recreational vehicle parks; and TWC §13.152, which establishes billing requirements for recreational vehicle parks by a retail public utility other than an MOU described by TWC §13.087.