Texas House Bill HB1826

Texas 2019 - 86th Regular

Caption

Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain water utilities.

Impact

The changes introduced by HB 1826 will significantly impact state laws regarding water service utility management. By allowing for expedited releases of these certifications under specific conditions, the bill seeks to streamline processes for landowners looking for alternative water services. This can potentially lead to increased competition among water service providers, ideally resulting in better service quality and lower costs for consumers. The bill also establishes guidelines for determining compensations owed to decertified utilities, ensuring that previous providers are justly compensated for the loss of business, which is necessary for the sustainability of utility services statewide.

Summary

House Bill 1826 addresses the procedure for amending or revoking certificates of public convenience and necessity assigned to certain water utilities. The bill provides a framework that allows for more flexibility in the handling of service areas and the competition between retail public utilities. It lays down specific conditions under which the Texas utility commission may revoke or amend these certifications based on the service capabilities of the certificate holders. These provisions are established to ensure that residents have access to reliable water services by permitting alternate providers to step in when existing providers fail to adequately serve their designated areas.

Contention

There may be notable contention regarding the balance between providing consumers with choices and ensuring the viability of existing water utilities. While supporters of the bill argue that competition will drive service improvements and innovations, opponents may express concerns over the financial implications of decertification for small utility providers, which could destabilize them. Additionally, some stakeholders might question whether the bill could lead to service gaps if not managed carefully, as the transition between service providers can complicate the reliability of water services during decertification processes.