TX SB2662

Authorizes the Public Utility Commission of Texas to regulate tariffs of water and sewer utilities and grants municipalities exclusive original jurisdiction over tariffs within their corporate limits

Requires water and sewer utilities to include their drought contingency plans as part of filed tariffs with regulatory authorities, while clarifying that drought plan provisions do not constitute "rates" under state law

Allows water and sewer utilities to discontinue, reduce, or impair service to customers for noncompliance with drought contingency plans, adding this as a permitted reason alongside nonpayment and nonuse

Mandates that drought contingency plans include specific quantified water use reduction targets during shortages and reasonable enforcement procedures such as fines, rate surcharges, service restriction, or service discontinuation

Requires the Texas Commission on Environmental Quality, Public Utility Commission, and Texas Water Development Board to jointly develop and update model drought contingency programs at least once every five years

Takes effect immediately with two-thirds legislative vote, otherwise September 1, 2025; passed Senate 31-0 on April 30, 2025, and House 128-19 on May 20, 2025