TX SB1977

Caps recoverable legal expenses for electric and water/sewer utilities in rate proceedings at $500,000 plus 50% of any legal costs exceeding that threshold

Prohibits utilities from recovering legal expenses attributable to filing frivolous discovery motions, acts intended to harass or delay proceedings, or conduct not in the public interest

Bars electric and water/sewer utilities from reimbursing municipalities for legal expenses incurred due to the municipality's frivolous motions, harassment, delays, or conduct against the public interest

Creates an exception allowing utilities to recover legal expenses in any amount if those costs were caused by bad-faith conduct from non-utility intervenors and are deemed reasonable

Applies only to rate proceedings beginning on or after September 1, 2025