Texas Senate Bill SB1985

Texas 2017 - 85th Regular

Caption

Relating to the revocation or amendment of a certificate of public convenience and necessity for water utilities in a service area.

Impact

The modification of Section 13.254 of the Water Code introduces notable changes to how water utilities may relinquish or modify their service area designations. It allows the commission to grant or deny petitions with clear findings, ensuring that no water utility can operate without oversight when modifications are pursued. The bill's enforcement will mandate better coordination among service providers and landowners, potentially enhancing service efficiency.

Summary

SB1985 focuses on the protocols for revoking or amending the certificate of public convenience and necessity for water utilities operating within a specified service area. The bill aims to streamline the decision-making process for the Texas utility commission when faced with petitions related to service availability and certifications. It specifies that if a valid petition is filed, the commission must decide within a certain timeframe, providing clarity and expedited processes for landowners seeking access to utility services.

Contention

A key point of contention surrounding SB1985 is the implications of compensation for water utilities affected by the amendment of their service area. The bill outlines how compensation should be evaluated and determined based on various factors, including existing investments and future revenue impacts. Critics argue that this process may favor existing utilities by imposing stringent requirements on newcomers, thus affecting competition and possibly leading to higher costs for consumers.