Relating to the consideration of compliance with rules of the Texas Commission on Environmental Quality in approving rates for water or sewer utility services.

SB 2499 requires Texas state regulators to consider whether water and sewer utilities complied with Texas Commission on Environmental Quality (TCEQ) rules when approving their service rates. Specifically, it amends the Water Code to mandate that regulators factor in a utility’s TCEQ compliance - both in determining a reasonable return on investment and when reviewing historic rate data. This affects all water and sewer utilities seeking rate increases under Texas law. The bill applies only to rate cases filed on or after September 1, 2025, leaving existing cases governed by prior rules.