HB 2505 modifies the notification requirements for municipalities that intend to provide water or sewer service in newly incorporated or annexed areas. The bill amends the Water Code to require that if a municipality and a retail public utility do not reach an agreement within 180 days, the municipality must file an application with the Texas Public Utility Commission (PUC) before providing service. Additionally, when submitting an application for single certification to serve the area, the municipality must send a copy of the application to the affected retail public utility via certified mail, hand delivery, or email on the same day. The bill applies only to proceedings initiated on or after September 1, 2025​.