Texas Senate Bill SB1772

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/24/09
• Voted on by Senate: 5/1/09
• Out of House Committee: 5/23/09
• Report Pass: 5/22/09

Caption

Relating to the authority of the Public Utility Commission of Texas to address market power abuse, including the right to order restitution for violations.

Impact

The passage of SB1772 is expected to result in more stringent monitoring and regulation of market power abuses in the electricity sector. By enabling the Commission to order restitution, the bill aims to provide remedies for consumers or entities that have been adversely affected by unfair practices, such as predatory pricing or collusion. This change implies a greater accountability for electric utilities, as violations will now carry direct consequences that could financially impact them, ultimately aiming to enhance market fairness and protect consumers' interests in Texas.

Summary

Senate Bill 1772 authorizes the Public Utility Commission of Texas to impose restitution for violations related to market power abuse within the state's electricity sector. This bill seeks to amend the Utilities Code, particularly sections concerning contested cases and general rules about electricity regulation. It establishes that affected parties have the right to file for restitution under specific conditions, strengthening the Commission's oversight and enforcement capabilities against practices that harm competition in the electricity market.

Contention

While the bill garners support for its intent to protect consumers and ensure fair competition, there may be concerns from electric utilities regarding the implications of increased regulatory scrutiny. Opponents of the bill potentially argue that the definitions of market power abuses could be overly broad, leading to disputes about what constitutes unfair practices. They might also posit that imposing restitution could deter investment in the market, potentially impacting the availability and pricing of electricity. Overall, the balance between robust regulation and maintaining a conducive environment for utility operations remains a point of contention.