Texas Senate Bill SB2000

Texas 2021 - 87th Regular

Caption

Relating to rates applied to certain water or sewer systems after a sale or purchase of the system.

Impact

The enactment of SB2000 will primarily simplify the process by which newly acquired water and sewer systems can establish rates for their customers. By allowing former rates from similar systems to be retained, this legislation could mitigate disruptions often associated with ownership transitions. It changes the requirements for initial rate approvals, potentially reducing the burdens of new rate proceedings for utility purchasers and facilitating more immediate service continuity for consumers.

Summary

Senate Bill 2000 introduces specific amendments to the Texas Water Code, particularly addressing the initial rate-setting process for water and sewer systems post-acquisition. The bill allows entities acquiring these systems to request authorization from the regulatory authority to charge initial rates that align with those applied to another similar system, provided those rates are still in effect when the application is filed. This approach seeks to streamline the transition for new owners and provide some consistency in service charges.

Contention

While SB2000 aims to reduce complexities in rate approvals, there may be various points of contention in different stakeholder communities. Regulating entities or consumer advocacy groups may express concerns about the potential for new owners to set higher rates based on previous tariffs without adequate scrutiny or adjustment to local service needs. Such issues could lead to debates on the balance between regulatory oversight and operational flexibility for utility companies, particularly with regards to consumer protections.