Texas House Bill HB4147

Texas 2021 - 87th Regular

Caption

Relating to the regulation of rates for water sales and the provision of wholesale water or sewer service.

Impact

If enacted, HB 4147 will centralize authority over pricing for wholesale water and sewer purchases, ensuring that rates charged are aimed at covering debt service and public security requirements. By regulating the costs associated with these services, the bill intends to maintain the financial stability of public utilities while ensuring reliable service. The statute also protects the terms of existing written contracts unless they are found to seriously harm the public interest, effectively reinforcing the legitimacy of agreements made between sellers and purchasers of water resources.

Summary

House Bill 4147 addresses the regulation of rates for water sales and wholesale water or sewer services in Texas. It amends existing sections of the Water Code to establish explicit policies for the rates charged for raw water and the provision of wholesale water or sewer services. This Bill enhances the authority of the Texas Commission on Environmental Quality to define what constitutes just and reasonable rates by allowing them to take into account the financial integrity of political subdivisions, such as river authorities, when fixing these rates.

Contention

The specification of reasonable costs and protective measures against arbitrary rate adjustments under HB 4147 could lead to contentious debate. Stakeholders, particularly in political subdivisions, may argue over what constitutes a fair price and the methodologies used by the utility commission in rate-setting. There's potential for conflict regarding the balance between ensuring affordable water services for consumers and guaranteeing that service providers can fulfill their financial responsibilities. Critics may also express concern about the perceived reduction of local control in water rate decisions, favoring a more centralized authority in regulatory practices.