1. (a) Except as provided by this section or Section 13.2501 of this code, any retail public utility that possesses or is required to possess a certificate of public convenience and necessity shall serve every consumer within its certified area and shall render continuous and adequate service within the area or areas.

2. (b) Unless the utility commission issues a certificate that neither the present nor future convenience and necessity will be adversely affected, the holder of a certificate or a person who possesses facilities used to provide utility service shall not discontinue, reduce, or impair service to a certified service area or part of a certified service area except for:

   1. (1) nonpayment of charges for services provided by the certificate holder or a person who possesses facilities used to provide utility service;
   2. (2) nonpayment of charges for sewer service provided by another retail public utility under an agreement between the retail public utility and the certificate holder or a person who possesses facilities used to provide utility service or under a utility commission-ordered arrangement between the two service providers;
   3. (3) noncompliance with a drought contingency plan;
   4. (4) nonuse; or
   5. (5) other similar reasons in the usual course of business.
3. (c) Any discontinuance, reduction, or impairment of service, whether with or without approval of the utility commission, shall be in conformity with and subject to conditions, restrictions, and limitations that the utility commission prescribes.

4. (d) Except as provided by this subsection, a retail public utility that has not been granted a certificate of public convenience and necessity may not discontinue, reduce, or impair retail water or sewer service to any ratepayer without approval of the regulatory authority. Except as provided by this subsection, a utility or water supply corporation that is allowed to operate without a certificate of public convenience and necessity under Section 13.242(c) may not discontinue, reduce, or impair retail water or sewer service to any ratepayer without the approval of the regulatory authority. Subject to rules of the regulatory authority, a retail public utility, utility, or water supply corporation described in this subsection may discontinue, reduce, or impair retail water or sewer service for:

   1. (1) nonpayment of charges;
   2. (2) noncompliance with a drought contingency plan;
   3. (3) nonuse; or
   4. (4) other similar reasons in the usual course of business.
5. (e) Not later than the 48th hour after the hour in which a utility files a bankruptcy petition, the utility shall report this fact to the utility commission and the commission in writing.

Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 539, Sec. 16, eff. Sept. 1, 1987;

Acts 1987, 70th Leg., ch. 1102, Sec. 5, eff. Sept. 1, 1987;

Acts 1989, 71st Leg., ch. 567, Sec. 27, eff. Sept. 1, 1989;

Acts 1991, 72nd Leg., ch. 678, Sec. 7, eff. Sept. 1, 1991;

Acts 1993, 73rd Leg., ch. 652, Sec. 3, eff. Aug. 30, 1993;

Acts 1995, 74th Leg., ch. 400, Sec. 5, eff. Sept. 1, 1995.

Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.50, eff. September 1, 2013.

Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 50, eff. September 1, 2013.

Acts 2025, 89th Leg., R.S., Ch. 330 (S.B. 2662), Sec. 4, eff. May 30, 2025.