Texas House Bill HB4590

Texas 2023 - 88th Regular

• Filed: 3/9/23

Caption

Relating to charges imposed for costs related to Winter Storm Uri

Impact

The passage of HB 4590 would significantly alter the landscape of utility regulation and consumer protection in Texas. The establishment of the Storm Cost Offset Fund would require oversight and distribution of funds to assist electric cooperatives in recovering costs without placing the full burden on consumers. This financial mechanism aims to provide customers with pro-rata rate reductions on their electricity bills as the fund is utilized to offset the increased expenses from Winter Storm Uri. The impact is anticipated to benefit a wide range of consumers, ensuring more manageable utility bills despite the backdrop of financial strain caused by the storm's aftermath.

Summary

House Bill 4590 aims to address the extraordinary costs and expenses incurred by electric cooperatives as a result of Winter Storm Uri, which impacted Texas in February 2021. The bill establishes a Storm Cost Offset Fund to help mitigate the charges imposed on retail electric service customers due to these extraordinary costs. By creating provisions for financial relief, the bill seeks to protect consumers from significant rate increases that could arise from the recovery of these incurred costs. The legislation recognizes the storm as a public calamity that caused severe disruptions to utility services across the state, further justifying the need for such measures.

Sentiment

The sentiment surrounding HB 4590 appears to be primarily supportive among legislators recognizing the need for intervention following the storm's disastrous effects on infrastructure and utility services. However, there may also be some contention regarding the mechanisms for fund distribution and the long-term implications for state financing of utility costs. Advocates assert that the bill is a necessary step for consumer protection, while opponents might raise concerns about potential inefficiencies or mismanagement regarding how the storm cost offset fund is administered.

Contention

A notable point of contention is whether the establishment of the Storm Cost Offset Fund will adequately address the ongoing financial repercussions of Winter Storm Uri for both the electric cooperatives and the consumers. While supporters argue that this fund will provide critical immediate relief, critics might ask how sustainable this funding mechanism will be in the long run and whether it sufficiently addresses systemic issues within the electrical supply framework. Moreover, the language around the exceptional costs and charges incurred by cooperatives may lead to legislative or operational challenges regarding its definitions and applications.

Texas Constitutional Statutes Affected

Utilities Code

• Chapter 1. General Provisions
  • Section: New Section

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: New Section