Texas House Bill HB1341

Texas 2009 - 81st Regular

Caption

Relating to the recovery of certain rate case expenses by a water and sewer utility.

Impact

The impact of HB1341 will be significant for water and sewer utilities in Texas as it seeks to define and limit the types of expenses that can be passed on to consumers. By restricting the recovery of costs associated with legislative advocacy and certain legal fees, the bill aims to protect consumers from bearing the financial burden of what may be deemed unreasonable or unnecessary expenses. This could lead to lower utility rates for consumers, as utilities will have to absorb more of these costs instead of transferring them to ratepayers.

Summary

House Bill 1341 aims to clarify and amend existing regulations related to the recovery of certain rate case expenses by water and sewer utilities in Texas. The proposed changes specifically address the type of expenses that can be included for ratemaking purposes. This bill prohibits the inclusion of legislative advocacy expenses, processing costs of refunds or credits, and various legal expenses unless they fall under specific categories. The intent is to enhance regulatory clarity and ensure that only reasonable and necessary expenses are recovered through utility rates.

Contention

There may be notable points of contention surrounding HB1341, particularly regarding the balance between regulatory compliance and the financial health of water and sewer utilities. While some stakeholders might argue that limiting expense recovery could hinder utilities' ability to effectively manage legislative and legal challenges, others may see it as a necessary reform to safeguard consumer interests. Opponents of broader expense recovery might express concerns that such changes could negatively affect utilities’ operations and ability to advocate for necessary regulatory reforms on behalf of their customers.