Relating to the issuance or amendment of a certificate of public convenience and necessity that authorizes the construction of an electrical substation.
If enacted, SB 365 would significantly alter the oversight and process concerning the construction of electrical substations in Texas. Specifically, it establishes a legally binding requirement for notification, thereby increasing the accountability of electric utilities. This shift is expected to empower communities by keeping property owners informed and allowing them to prepare for any potential impacts associated with new substations. The changes set to take effect on September 1, 2023, also include legal provisions ensuring the continuity of existing laws for proceedings initiated prior to that date, thereby preserving the rights of property owners under the previous framework.
Senate Bill 365 aims to enhance transparency for property owners regarding the construction of electrical substations by electric utility companies. This legislation requires electric utilities to provide written notice to property owners adjacent to the site of a proposed substation, as well as those directly across a highway or road from the property. This requirement addresses an existing gap in state law, which currently mandates notification for electricity transmission lines but does not extend this obligation to substations. The changes proposed under SB 365 are intended to give homeowners and property owners better awareness and a voice in the planning processes that impact their properties.
The sentiment surrounding SB 365 has been generally supportive, especially among property owners and advocates for community rights. Many see the bill as a crucial step towards ensuring fair treatment and notification practices by utility companies. Legislators discussing the bill emphasized its importance for homeowner transparency and the necessary framework it provides for notification. However, there are concerns regarding the potential costs and administrative burden that could arise from implementing these new requirements for utility companies, though these issues have not dominated the legislative discussions.
One notable point of contention in the legislative discussions was the committee substitute version of SB 365, which initially linked the notification requirements to certificates of public convenience and necessity. This requirement was later amended to remove a 300 ft notification requirement that was included in earlier drafts of the bill, which sparked some debate. Nevertheless, the underlying principle of improving transparency and accountability regarding the construction of substations largely united supporters, while some utility representatives expressed concerns about the practical implications of these new requirements.