Texas Senate Bill SB1513

Texas 2019 - 86th Regular

Caption

Relating to the consideration of employee compensation and benefits in establishing the rates of gas utilities.

Impact

The introduction of this bill is likely to have significant implications for the regulatory environment surrounding gas utility rates in Texas. By establishing that employee compensation and benefits that are verified against market standards are considered necessary expenditures, the bill could lead to increased rates for consumers if the utilities adjust their pricing structures to reflect higher employee costs. This could place more scrutiny on how compensation is determined and affect overall rate calculations across the state.

Summary

SB1513 proposes amendments to the Texas Utilities Code to influence how employee compensation and benefit expenses are handled when determining the rates of gas utilities. Specifically, it presumes that these expenses are reasonable and necessary if they align with recent market compensation studies. The bill aims to provide a clearer framework for the regulatory authorities when assessing utility rates, thereby potentially leading to more predictable outcomes for both gas utility companies and their employees.

Contention

Discussions around SB1513 may bring forth debates on the balance between fair employee compensation and the financial burden placed on consumers. Stakeholders could express varying views about whether such presumptive measures are warranted, especially in times of economic strain when utility costs can have a cascading effect on other financial obligations faced by residents. Concerns regarding the potential for increased rates due to presumed costs may lead to discussions about the appropriateness of regulatory authority's role and the potential lack of oversight in scrutinizing actual compensation disparities.