Texas House Bill HB2400

Texas 2011 - 82nd Regular

• Out of House Committee: 4/21/11
• Introduced: 3/7/11
• Refer: 3/10/11
• Report Pass: 4/7/11

Caption

Relating to the powers and duties of the Texas Commission on Environmental Quality and other entities regarding water and sewer utilities and certain conservation and reclamation districts.

Impact

The implications of HB2400 on state laws are significant, as it clarifies the regulatory framework under which the TCEQ operates, particularly in the realm of utility management and rate setting. With these amendments, the TCEQ gains more authority to oversee rate changes while imposing stricter requirements on how utilities communicate proposed rate increases to consumers. This could lead to easier and quicker adjustments in rates for utilities and potentially reduce barriers for municipalities seeking to provide services in unserved areas, thus improving overall service efficiency and regulatory compliance.

Summary

House Bill 2400 addresses the responsibilities and authorities of the Texas Commission on Environmental Quality (TCEQ) regarding the regulation of water and sewer utilities and certain conservation districts. The bill amends several sections of the Texas Water Code, modifying existing definitions and establishing new protocols for utility rate changes. A key component of the bill is the introduction of a utility facilities construction and improvement charge, which allows utilities to recover costs associated with infrastructure improvements in a streamlined manner that can enhance service delivery.

Contention

Although designed to streamline processes, the bill may face criticism regarding concerns over consumer protection. The introduction of the improvement charge, while beneficial for utility companies looking to finance improvements, might lead to debates over its potential impacts on consumer rates. Stakeholders may express concerns that such changes could reduce oversight and lead to increased costs for consumers without adequate justification or scrutiny. As the bill progresses, discussions will likely focus on finding a balance between facilitating utility investment and ensuring transparency and fairness for consumers.