SESSION WATCH
Superseded — its companion passed HOUSE · SESSION 2026

No. HB 225

Consumer Fairness in Utility Rates
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SPONSOR
Robinson, F.
FILED BY
Felicia Robinson — District 104, Democrat [search donations]
EFFECTIVE
7/1/2026
COMPANION
CS/CS/HB 1451 — HB 225 was set aside and its companion carried the policy

Filed under Local Government.

PROVIDED SUMMARY

Consumer Fairness in Utility Rates; Requires certain municipalities to impose same utility rates, fees, & charges on consumers within its municipal boundaries & boundaries of recipient municipality; prohibits such municipalities from imposing surcharges on consumers within boundaries of recipient municipality unless certain conditions are met; prohibits certain use of such surcharges; requires such municipalities to hold certain public hearings; requires certain municipalities to file specified reports with PSC; requires PSC to review certain consumer disputes & make certain determinations.

Full bill text →

Plain English Summary

AI-GENERATED
Bars cities from charging outside customers higher water and sewer rates.

A city operating a water or sewer utility with any facility, even a single well or pump station, located in another municipality must charge that municipality's customers the same base rates, fees, and charges as its own residents.

It may not add a surcharge on those out-of-town customers unless the charge is tied to documented service, maintenance, or infrastructure costs and disclosed in writing on the bill.

Surcharge money cannot be used as general revenue or profit. Before changing any rate, fee, or surcharge, the city must hold a public hearing open to residents on both sides of the border.

Each utility must file an annual report on surcharge revenue with the Public Service Commission, which will also rule on consumer disputes over rates, fees, or surcharges.

KEY PROVISIONS
§ 1 Equal base rates for recipient-municipality customers majors. 180.191

AIA municipality with a water or sewer utility facility located in another city must charge that city's customers the same base rates, fees, and charges as its own in-city customers.

“must impose the same base rates, fees, and charges on consumers within the recipient municipality as it does on consumers within its municipal boundaries” bill text, line 37 →
§ 2 Conditional ban on cross-border surcharges majors. 180.191

AIA city may not charge consumers in a recipient municipality a surcharge unless it is tied to documented service, maintenance, or infrastructure costs and disclosed in writing on the bill.

“may not impose a surcharge on consumers within the boundaries of the recipient municipality” bill text, line 42 →
§ 3 PSC reviews rate and surcharge disputes majors. 180.191

AIThe Public Service Commission must review consumer disputes over rates, fees, or surcharges and determine whether the municipality's charges are fair and comply with this section.

“Consumer disputes over rates, fees, or surcharges must be reviewed by the Public Service Commission for a determination of fairness and compliance with this section” bill text, line 60 →
§ 4 Surcharge revenue barred from general-fund or profit use moderates. 180.191

AIEven a properly documented and disclosed surcharge cannot be treated as a general revenue source or a profit margin for the utility.

“Surcharges may not be used as a general revenue source or profit margin” bill text, line 49 →
§ 5 Public hearing required before rate or surcharge changes moderates. 180.191

AIBefore setting or adjusting rates, fees, or surcharges, the municipality must hold a public hearing open to input from both its own residents and the recipient municipality's residents.

“must hold a public hearing to allow input from consumers within its municipal boundaries and the boundaries of the recipient municipality” bill text, line 53 →
§ 6 Annual surcharge-revenue report to the PSC moderates. 180.191

AIThe utility must file a yearly report with the Public Service Commission describing how it used surcharge revenue collected under this section.

“must file an annual report with the Public Service Commission detailing the use of surcharge revenues” bill text, line 57 →
TIMELINE
3/13/2026
Died in Economic Infrastructure Subcommittee; Companion bill(s)...
1/13/2026
1st Reading (Original Filed Version)
10/28/2025
Now in Economic Infrastructure Subcommittee
10/28/2025
Referred to Commerce Committee
10/28/2025
Referred to Intergovernmental Affairs Subcommittee
10/28/2025
Referred to Economic Infrastructure Subcommittee
10/21/2025
Filed
1 EARLIER →
STATUTES IT CHANGES
s. 180.191
+298 / −0