Relating to the rates charged by a water and sewer utility.
Impact
The bill is positioned as a measure to improve the operational efficiency of water and sewer utilities in Texas. By allowing the establishment of interim rates, it seeks to provide more immediate solutions to rate changes and appeals, thereby ensuring that utilities can continue to operate smoothly without prolonged uncertainty over rate approvals. This change could lead to more stable funding for utility services while ensuring that customers are protected from sudden hikes in charges during appeal processes.
Summary
SB719 aims to modify the regulations concerning the rates charged by water and sewer utilities in Texas. The bill specifically amends sections of the Water Code to empower the regulatory authority or commission to establish interim rates that would remain effective until a final decision is reached regarding any appeals against proposed rate changes. This is significant as it addresses the procedural aspects of fee setting for utilities, ensuring that customers are not overly burdened while appeals are pending.
Contention
Notable points of contention around SB719 stem from concerns regarding transparency and customer rights. Critics might argue that the ability to set interim rates could lead to situations where utilities impose higher charges without adequate justification or transparency during the appeal process. Furthermore, stakeholders may express concerns about how such measures could impact low-income residents who are particularly sensitive to fluctuations in public utility charges. The balance between facilitating utility operations and protecting consumer interests is a likely focal point in discussions surrounding this bill.
Relating to the transfer of functions relating to the economic regulation of water and sewer service from the Public Utility Commission of Texas and the Office of Public Utility Counsel to the Water Public Utility Commission and the Office of Water Public Utility Counsel; creating a criminal offense.