Texas Senate Bill SB720

Texas 2009 - 81st Regular

Caption

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

Impact

If enacted, SB720 will affect existing statutes under the Texas Water Code, particularly those relating to the costs that water and sewer utilities can recover when setting their rates. By excluding various expenditures from consideration, the legislation could lead to more competently governed rate-setting processes that reflect the actual cost of utilities without undue influence from external advocacy or unnecessary costs. This aspect aims to ensure that utility rates remain fair and just for consumers, emphasizing the importance of reasonable expense management.

Summary

SB720 aims to amend the Texas Water Code concerning the recovery of certain rate case expenses by water and sewer utilities. The primary focus of the bill is on the types of expenses that may be considered by the regulatory authority when determining rates for these utilities. Specifically, the bill outlines that expenses related to legislative advocacy, legal proceedings in contested cases, and any expenditure deemed unreasonable or not in the public interest should be excluded from rate-making purposes. This change is expected to provide clarity and set limitations on what can be included in the rate-setting processes for water services.

Contention

One notable point of contention surrounding the bill may arise regarding the exclusion of legislative advocacy expenses and legal costs. Proponents argue that these expenses should not be passed on to consumers, as they do not directly relate to the service provided. Conversely, opponents may contend that such exclusions could hinder the ability of utilities to represent their interests effectively in legislative matters, potentially impacting their operational capabilities. This divergence reflects the ongoing debate about balancing utility accountability with the need for fair representation within legislative processes.