Texas Senate Bill SB555

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/29/11
• Introduced: 2/8/11
• Voted on by Senate: 5/16/11
• Refer: 2/17/11
• Report Pass: 4/29/11
• Engrossed: 5/16/11
• Refer: 5/19/11

Caption

Relating to the regulation of propane gas distribution retailers.

Impact

The potential impact of SB555 on state laws is significant as it centralizes regulatory authority under the Railroad Commission of Texas. This means that LP-gas utility companies will be required to comply with specified guidelines, including restrictions on service disconnections during extreme weather emergencies. This change aims to enhance consumer protection and ensure that necessary services remain accessible, particularly during harsh weather conditions, which often affects vulnerable populations relying on these utilities for heating and cooking.

Summary

SB555 focuses on the regulation of liquefied petroleum gas (LP-gas) utility companies in Texas. The bill recognizes LP-gas utilities as monopolies in their service areas due to the absence of competitive market forces which affects pricing and service standards. The legislation seeks to provide a regulatory framework that ensures LP-gas utility providers are monitored and held accountable for their rates and services. By amending existing sections of the Utilities Code, the bill will give the Railroad Commission exclusive original jurisdiction over the rates and services of LP-gas utilities under certain conditions, mainly in areas outside municipalities or in areas where municipalities have relinquished such jurisdiction.

Contention

Notable points of contention surrounding SB555 include concerns about its implications for local control and the effectiveness of centralized regulatory oversight. Some legislators argue that such centralization could impair the ability of local governments or agencies to respond to unique community needs or challenges related to LP-gas distributors. Additionally, there are discussions about how such regulation will balance out costs for consumers while ensuring that safety standards are upheld across the board. The debate also touches on the possible financial implications for LP-gas utility companies and whether these changes could lead to increased operational costs that might be passed on to consumers.