Texas Senate Bill SB1612

Texas 2013 - 83rd Regular

Caption

Relating to the authority of certain municipalities to provide water and sewer service to areas within the municipal boundaries without obtaining a certificate of public convenience and necessity.

Impact

The bill is expected to have significant implications on how public and private utilities operate within smaller municipalities in Texas. By exempting qualifying municipalities from obtaining the usual certifications, SB1612 could enhance local control over utility services and potentially reduce delays in service provision. However, the change could also disrupt the existing dynamics between municipal services and investor-owned utilities, raising questions about the equity and fairness of utility distribution.

Summary

SB1612 amends the Texas Water Code to grant specific municipal authorities the ability to provide water and sewer services to areas within their municipal boundaries without needing to obtain a certificate of public convenience and necessity. This legislation specifically targets municipalities with a population of less than 50,000 and those that contain areas being serviced by an investor-owned utility. By allowing these municipalities to bypass the certification process, the bill aims to streamline service provision and improve access to essential utilities in potentially underserved regions.

Contention

Notably, the bill may bring about contention regarding the rights of investor-owned utilities, especially if municipalities decide to provide services in areas already certificated to these utilities. The stipulation requiring municipalities to notify these utilities at least 30 days before commencing service could lead to conflicts, as affected utilities may seek to challenge the municipalities' decisions. This aspect highlights potential issues related to service continuity and competition between public and private entities.