§ 113.002.Waiver of Immunity to Suit for Claim Regarding Water Supply Contract

The waiver itself, and every word of it is a limit.

The contract must be written and must state the essential terms. An oral understanding or a course of dealing does not open the courthouse.

The water must be supplied for use in connection with the generation of electricity. A municipal supply contract, an irrigation contract or an industrial contract for any other use falls outside the chapter.

The breach must be a failure to provide water, or access to water, according to the contract’s terms. Some other breach of the same contract is not what this section waives immunity for.

The waiver is of immunity to suit — the bar that keeps a case from being heard at all — and Section 113.004 leaves every other defense in place.

The narrowness is the point. A power plant that cannot get cooling or process water stops generating, and the legislature opened a door for that specific failure without opening the general contract door.

Chapter 114 is the comparison worth drawing. It waives immunity for state agency construction and engineering contracts, on its own terms and with its own damage caps. Texas waives contract immunity subject by subject.