TX SB1891

Allows Class A, B, C, and D water and sewer utilities to select their own test year for rate-setting purposes, which can include historic, future, or combined historic and future data

Requires the selected test year to be a consecutive 12-month period that begins on the first day of a calendar or fiscal quarter and falls within 18 months before or after the utility files its statement of intent to change rates

Requires regulatory authorities to base utility rates on the original cost of property used during the test year, including facilities projected to be in service through the end of the test year

Removes the requirement that utility expenses be based specifically on "historic" test year information adjusted for known and measurable changes, instead allowing test year information as determined by utility commission rules

Applies only to rate proceedings commencing on or after September 1, 2025, with pending proceedings governed by prior law