TX HB2712

Allows Class A, B, C, or D water and sewer utilities to select their own test year for rate proceedings, which may include historic data, future projected data, or a combination of both

Requires the selected test year to be a consecutive 12-month period beginning on the first day of a calendar or fiscal quarter, starting no later than 18 months after filing and ending no earlier than 18 months before filing a rate change request

Mandates customer refunds if a regulatory authority later determines that rates based on future or combined test year projections yielded more than a fair return on the utility's invested capital

Requires utilities using fully projected future test years to file a statement within 30 days after the test year ends, reporting actual results and data demonstrating the accuracy of their estimates

Public Utility Commission of Texas must adopt implementing rules by September 1, 2026; the act takes effect September 1, 2025