Tex. Codes » Water Code · TITLE 2. WATER ADMINISTRATION · SUBTITLE B. WATER RIGHTS · CHAPTER 13. WATER RATES AND SERVICES
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Tex. Water Code § 13.001 (2026)

Legislative Policy And Purpose

✓ current as of May 2026
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Sec. 13.001. LEGISLATIVE POLICY AND PURPOSE. (a) This chapter is adopted to protect the public interest inherent in the rates and services of retail public utilities.

(b) The legislature finds that:

(1) retail public utilities are by definition monopolies in the areas they serve;

(2) the normal forces of competition that operate to regulate prices in a free enterprise society do not operate for the reason stated in Subdivision (1) of this subsection; and

(3) retail public utility rates, operations, and services are regulated by public agencies, with the objective that this regulation will operate as a substitute for competition.

(c) The purpose of this chapter is to establish a comprehensive regulatory system that is adequate to the task of regulating retail public utilities to assure rates, operations, and services that are just and reasonable to the consumers and to the retail public utilities.

Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985. Amended by Acts 1989, 71st Leg., ch. 567, Sec. 1, eff. Sept. 1, 1989.

Notes of Decisions
Cited in 17 cases (5 in the last 5 years), 1987–2025 · leading case: Texas Nat. Resource Conservation Comm'n v. Lakeshore Util. Co., Inc., Sentry Title Co., Inc., Alan D. Whatley, & Thelma J. Whatley, 164 S.W.3d 368 (Tex. 2005).
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Texas Nat. Resource Conservation Comm'n v. Lakeshore Util. Co., Inc., Sentry Title Co., Inc., Alan D. Whatley, & Thelma J. Whatley, 164 S.W.3d 368 (Tex. 2005). · cites it 2× “When a utility has violated the Water Code by overcharging its customers, refunds may be necessary to effect compliance with Water Code provisions mandating that customers be charged only approved amounts.”
Texas Water Com'n v. Lakeshore Util., Co., Inc., 877 S.W.2d 814 (Tex. App. 1994). · cites it 2× “” Tex. Water Code Ann. § 13.001 (e) (West Supp.”
City of West Tawakoni v. Williams, 742 S.W.2d 489 (Tex. App. 1987). · cites it 2× “In 1985, the legislature transferred the ratemaking jurisdiction of the Public Utility Commission over water and wastewater utilities to the Texas Water Commission by the adoption of Chapter 13 of the Texas Water Code. TEX.WATER CODE ANN. § 13.”
City of San Antonio v. BSR Water Co., 190 S.W.3d 747 (Tex. App. 2005). “” Tex. WateR Code Ann. § 13.001 (c). The TCEQ has “exclusive original jurisdiction over water and sewer utility rates, operations, and services not within the incorporated limits of a municipality exercising exclusive original jurisdiction over those rates, operations, and…”
City of Galveston v. Flagship Hotel, Ltd., 73 S.W.3d 422 (Tex. App. 2002). “Tex. Water Code Ann. § 13.001 (Vernon 2000).”
City of Carrollton v. Texas Comm'n on Env't Quality, 170 S.W.3d 204 (Tex. App. 2005). “See Tex. Water Code Ann. §§ 13.001 , .250, .254 (West 2000).”
Jordan v. Staff Water Supply Corp., 919 S.W.2d 833 (Tex. App. 1996). “” TEX.WATER CODE ANN. § 13.001(a) (Vernon Supp.”
Megatel Homes LLC v. City of Mansfield, Texas (N.D. Tex. 2025). · cites it 3× “” TEX. WATER CODE § 13.001(b); see also id.”
Pub. Util. Comm'n of Texas & North Fort Bend Water Auth. v. City of Fulshear, Texas (Tex. App. 2025). · cites it 2× “34 Tex. Water Code § 13.001 ................”
Am. Zurich Ins. Co. v. Daniel Samudio (Tex. App. 2015). · cites it 2× “135, 13.190. In this case, for instance, the total amount Lakeshore collected from its customers far exceeded the amount Lakeshore was authorized to collect under the Code's provisions; thus, refunds were necessary to bring Lakeshore *379 into statutory compliance and ensure…”
City of Palmview v. Agua Special Util. Dist. (Tex. App. 2019). “9 TEX. W ATER CODE ANN. § 13.001 (West, Westlaw through 2017 1st C.”
HMW Special Util. Dist. of Harris & Montgomery Counties v. Pub. Util. Comm'n of Texas (Tex. App. 2023). “254(a-5); see also Tex. Water Code §§ 13.001(c) (stating that purpose of chapter is to establish comprehensive regulatory scheme that is adequate), .”
Show all 17 citing cases →
— Tex. Water Code § 13.001(a) — 3 cases
Texas Nat. Resource Conservation Comm'n v. Lakeshore Util. Co., Inc., Sentry Title Co., Inc., Alan D. Whatley, & Thelma J. Whatley, 164 S.W.3d 368 (Tex. 2005). “When a utility has violated the Water Code by overcharging its customers, refunds may be necessary to effect compliance with Water Code provisions mandating that customers be charged only approved amounts.”
Jordan v. Staff Water Supply Corp., 919 S.W.2d 833 (Tex. App. 1996). “” TEX.WATER CODE ANN. § 13.001(a) (Vernon Supp.”
Am. Zurich Ins. Co. v. Daniel Samudio (Tex. App. 2015). “135, 13.190. In this case, for instance, the total amount Lakeshore collected from its customers far exceeded the amount Lakeshore was authorized to collect under the Code's provisions; thus, refunds were necessary to bring Lakeshore *379 into statutory compliance and ensure…”
— Tex. Water Code § 13.001(b) — 1 case
Megatel Homes LLC v. City of Mansfield, Texas (N.D. Tex. 2025). “” TEX. WATER CODE § 13.001(b); see also id.”
— Tex. Water Code § 13.001(b)(1) — 1 case
Megatel Homes LLC v. City of Mansfield, Texas (N.D. Tex. 2025). “” TEX. WATER CODE § 13.001(b); see also id.”
— Tex. Water Code § 13.001(c) — 5 cases
Texas Nat. Resource Conservation Comm'n v. Lakeshore Util. Co., Inc., Sentry Title Co., Inc., Alan D. Whatley, & Thelma J. Whatley, 164 S.W.3d 368 (Tex. 2005). “When a utility has violated the Water Code by overcharging its customers, refunds may be necessary to effect compliance with Water Code provisions mandating that customers be charged only approved amounts.”
HMW Special Util. Dist. of Harris & Montgomery Counties v. Pub. Util. Comm'n of Texas (Tex. App. 2023). “254(a-5); see also Tex. Water Code §§ 13.001(c) (stating that purpose of chapter is to establish comprehensive regulatory scheme that is adequate), .”
Megatel Homes LLC v. City of Mansfield, Texas (N.D. Tex. 2025). “” TEX. WATER CODE § 13.001(b); see also id.”
Pub. Util. Comm'n of Texas & North Fort Bend Water Auth. v. City of Fulshear, Texas (Tex. App. 2025).
Am. Zurich Ins. Co. v. Daniel Samudio (Tex. App. 2015). “135, 13.190. In this case, for instance, the total amount Lakeshore collected from its customers far exceeded the amount Lakeshore was authorized to collect under the Code's provisions; thus, refunds were necessary to bring Lakeshore *379 into statutory compliance and ensure…”
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