Texas House Bill HB3610

Texas 2009 - 81st Regular

• Out of House Committee: 4/14/09

Caption

Relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.

Impact

If enacted, HB 3610 would significantly affect how water utilities calculate and report depreciation, potentially leading to more consistent financial reporting across the sector. This change is essential as accurate depreciation reports can influence the rates charged to consumers and overall utility profitability, impacting public trust in the financial integrity of these services. By standardizing depreciation methods, the bill seeks to prevent discrepancies that may arise from varied accounting practices among different utilities.

Summary

House Bill 3610 is aimed at establishing clear guidelines regarding the rates and methods of depreciation applied to retired property classes for regulated water utilities in Texas. The bill proposes amendments to the Texas Water Code, particularly focusing on ensuring uniform treatment of depreciation and requiring all utilities to maintain proper accounts in line with the set methodologies. This change seeks to optimize the financial accounting practices within the water utility sector, promoting transparency and regulatory compliance.

Contention

While the bill focuses on a technical aspect of utility management, it might face scrutiny over how the proposed changes could affect consumer rates. Critics may argue that changing depreciation practices could result in higher costs for consumers if utilities adjust their rates to reflect new accounting burdens. Additionally, there may be concerns about the implementation timeline and transition for existing utilities, which could necessitate administrative overhauls and resource allocations, further impacting operational efficiency.