Texas House Bill HB2895

Texas 2011 - 82nd Regular

• Introduced: 3/10/11
• Refer: 3/17/11

Caption

Relating to rate proceedings before a regulatory authority regarding water utility rates.

Impact

The implementation of HB 2895 is set to impact the operational framework governing how utility rates are determined and adjusted. By permitting the provision of reduced rates for specific classes of customers, the bill seeks to balance the need for utilities to maintain financial integrity while addressing the needs of lower-income households and the elderly. The regulatory authority is tasked with evaluating the costs incurred by utilities and how these costs are covered, potentially impacting the rates charged to other customer classes.

Summary

House Bill 2895 addresses the process of rate proceedings conducted by regulatory authorities regarding water utility rates in Texas. The bill amends existing sections of the Water Code to enhance provisions for establishing rates that are equitable and sufficient while promoting affordability for low-income and elderly customers. Specifically, it allows the regulatory authority to authorize reduced rates for these vulnerable classes of consumers, ensuring they can access necessary utility services at lower costs.

Sentiment

The general sentiment surrounding HB 2895 appears to lean towards a supportive stance. Proponents argue that the legislation is a necessary step to ensure equitable access to essential services for economically disadvantaged groups. This perspective is often echoed by advocacy groups focused on consumer rights and welfare. However, there may be concerns regarding the financial implications for utilities and how these changes could affect rate structures for other customers.

Contention

One notable point of contention regarding HB 2895 stems from the balance it attempts to strike between providing affordable rates to specific populations and the financial stability of utilities. Critics may argue that while supporting low-income customers is important, it could lead to higher costs for other consumer classes if not managed effectively. The bill's provisions regarding the recovery of costs from other customer classes could trigger debates about fairness and equity in utility pricing.