Relating to certificates of public convenience and necessity for water or sewer services.
Impact
The proposed changes could significantly alter how public utility services are managed, particularly in rural or undeveloped areas of Texas. By enabling landowners to petition for new service providers more easily, the bill could enhance competition among utilities, potentially leading to improved service delivery and responsiveness. Additionally, it aims to streamline the process for landowners to secure basic water and sewer services, which is crucial for developments in growing regions.
Summary
SB1361 is a legislative proposal aimed at amending Section 13.254 of the Texas Water Code, which governs the issuance of certificates of public convenience and necessity for water and sewer services. The bill introduces provisions for landowners of tracts of land that are at least 25 acres and not part of a platted subdivision to petition for expedited release from existing certificates held by public utilities. This would allow them to seek service from alternative retail public utilities, should the current providers be unable or unwilling to meet their needs in a reasonable manner.
Contention
While supporters argue that the bill will facilitate better access to essential services and promote competition among retail public utilities, critics may raise concerns about the implications for existing utilities. There may be fears that the expedited release mechanism could undermine the financial viability of smaller utilities that rely on certainty provided by existing certificates. Moreover, potential disputes about service adequacy and competition could arise, complicating relationships between landowners and existing service providers.