Senator Perry explained Senate Bill 18-91, a proposal to authorize the Public Utility Commission of Texas (PUC) to use historic, projected (future) or combined test years when setting rates for investor-owned water and sewer utilities.

Craig Blanchett, president of Aqua Texas, testified that the company's recent investments—more than $80 million in work in progress since the close of its 2024 test year—are excluded from recovery under the current historical test-year framework. He said the bill would allow timing of investments to align more closely with rate recovery and could reduce the need for frequent rate cases.

Jeff Kirschbaum, general counsel for the Texas Association of Water Companies, also supported the measure, saying other jurisdictions allow future or hybrid test years and that similar options in Texas would incentivize investment, minimize regulatory lag, and improve service. Committee members discussed safeguards to prevent excessive rates if projections overstate costs; Senator Perry said the House version will address mechanisms such as credits or refunds should differences arise.

The committee left the bill pending to await the House companion and further work on safeguards; no committee vote was taken during the hearing.