Relating to allowing a water and sewer utility to assess a utility facilities construction and improvement charge to recover certain costs associated with certain construction and improvement projects.
Impact
The implementation of HB2399 is expected to enable utilities to better manage their financial recovery from necessary construction projects. By allowing for the assessment of this construction charge, the bill could promote timely updates to essential service facilities while ensuring that the costs associated with such improvements are transparently passed on to consumers. However, the new charge is subject to strict regulatory requirements, including approval from the executive director and audits of the amounts recovered annually.
Summary
House Bill 2399 aims to allow water and sewer utilities in Texas to assess a 'utility facilities construction and improvement charge' to recover costs associated with construction and improvement projects. The bill proposes modifications to the Texas Water Code, specifically adding Section 13.193, which stipulates that utilities can charge for depreciation and return on investment for projects that have been completed and placed into service between two consecutive statements of intent to change their rates. This initiative is connected to the ongoing need to maintain and enhance water and sewage infrastructure in the state.
Sentiment
The sentiment surrounding HB2399 appears to be cautiously optimistic among supporters, who believe it will help utilities maintain and improve essential infrastructure. Proponents argue that the charge is a fair way to ensure that infrastructure is funded without unduly burdening the utilities while enabling them to operate sustainably. However, there may be concerns among consumers regarding the potential increase in utility bills, leading to some opposition based on financial impacts for residents.
Contention
While proponents of HB2399 view it as a necessary step for ensuring the effective functioning of water and sewer systems, potential contention could arise from consumer advocates and organizations concerned with the implications of increased charges on household expenses. Some may argue that the introduction of such charges could disproportionately affect lower-income households, raising questions about the equity of the funding mechanisms established for utility infrastructure improvements.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
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.