Sec. 13.343. WHOLESALE WATER CONTRACTS BETWEEN CERTAIN AFFILIATES

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(a) The owner of a utility that supplies retail water service may not contract to purchase from an affiliated supplier wholesale water service for any of that owner's systems unless:
(1) the wholesale service is provided for not more than 90 days to remedy an emergency condition, as defined by commission rule; or
(2) the executive director determines that the utility cannot obtain wholesale water service from another source at a lower cost than from the affiliate.
(b) The utility may not purchase groundwater from any provider if:
(1) the source of the groundwater is located in a priority groundwater management area; and
(2) a wholesale supply of surface water is available.

Added by Acts 2001, 77th Leg., ch. 966, Sec. 10.07, eff. Sept. 1, 2001.

                    
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