Texas Senate Bill SB2075

Texas 2021 - 87th Regular

Caption

Relating to the charging of higher prices by retail electric providers during a declared disaster.

Impact

If enacted, this bill will impose restrictions on how retail electric providers can price their services in times of declared disasters, thereby protecting consumers from potential exploitation in situations where they have limited options for energy. The measures in SB2075 are designed to ensure consumers are not charged prices significantly higher than the average in the month preceding a disaster declaration, thereby promoting fair pricing practices and consumer protection in times of crisis.

Summary

SB2075 proposes amendments to the Business and Commerce Code relating to the charging of higher prices by retail electric providers during declared disasters. The bill aims to combat price gouging practices during emergencies by setting clear regulations on pricing strategies that can be employed by electric companies. Specifically, it addresses situations where these providers may charge exorbitantly high rates during disasters, an issue that has been a major concern for consumers in the face of extreme weather events and other crises.

Contention

The discussion surrounding SB2075 has highlighted notable points of contention, particularly regarding the extent of regulation on electric providers. Proponents argue that the bill is necessary to prevent abuse during desperate times when consumers are at their most vulnerable. Conversely, opponents raise concerns about the potential negative impact on electric providers, suggesting that strict pricing regulations could discourage investment in infrastructure and lead to service issues following disasters. As the implications of potential high prices during disasters have become a hot-button issue, this bill seeks to balance interests between consumer protection and the operational viability of electric providers.