Texas House Bill HB1194

Texas 2009 - 81st Regular

Caption

Relating to the regulation of propane utility companies.

Impact

The proposed legislation explicitly grants the Railroad Commission of Texas exclusive jurisdiction over the rates and services provided by propane utilities. This amendment is designed to ensure consistent regulatory practices across the state and to provide a guideline for how propane utility services are handled both in municipal and non-municipal areas. Additionally, the bill includes measures to prevent disconnection of propane service during extreme weather emergencies, emphasizing the state’s responsibility to protect vulnerable populations during periods of severe cold.

Summary

House Bill 1194 addresses the regulation of propane utility companies within Texas. It seeks to amend provisions within the Utilities Code to define and regulate propane utilities similarly to gas utilities. The bill aims to clarify the role of propane utilities in the state and make necessary adjustments to how they are governed, ensuring that they follow similar regulatory frameworks as other gas utilities. The updated legislation emphasizes that these utilities serve as monopolies in their designated areas, creating a need for public agency oversight to administer rates and service standards effectively.

Contention

One notable point of contention surrounding HB 1194 is the balance between regulatory oversight and utility companies' operational flexibility. Proponents argue that the bill will enhance consumer protection by establishing minimum standards for service and ensuring that propane utility rates remain affordable and regulated. On the other hand, critics may voice concerns regarding potential impacts on how these utilities manage their operations and pass costs to consumers, particularly regarding the disconnection policy during extreme weather conditions. The bill’s legacy will depend on the ongoing dialogue among stakeholders, including utility companies, consumer advocates, and regulatory bodies.