Texas Senate Bill SB637

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/18/11
• Introduced: 2/14/11
• Voted on by Senate: 4/29/11
• Refer: 2/23/11
• Report Pass: 4/18/11
• Engrossed: 4/29/11
• Refer: 5/2/11

Caption

Relating to the recovery of certain rate case expenses by an investor-owned water and sewer utility.

Impact

If enacted, SB637 could significantly impact the financial operations of investor-owned water utilities. By defining the types of expenses that can be included in rate calculations, the bill could protect consumers from being charged for unnecessary or unreasonable costs. Furthermore, it sets a precedent for regulatory oversight by allowing the authority to scrutinize expenditures more rigorously. The intent behind the bill is to foster a fairer pricing structure while ensuring that the utilities operate profitably and can maintain necessary services.

Summary

SB637 addresses the recovery of certain rate case expenses incurred by investor-owned water and sewer utilities. The bill amends Section 13.185 of the Water Code, specifying conditions under which the regulatory authority may not include certain expenses for ratemaking purposes. Notably, it disallows the inclusion of legislative advocacy expenses, processing costs for refunds, and legal expenses in contested proceedings unless specific criteria are met. This aims to provide clearer guidelines on what can be charged to consumers and promote transparency in utility pricing.

Contention

Debates surrounding SB637 highlight tensions between utility companies and consumer advocacy groups. Proponents argue that the bill will discourage excessive spending on lobbying and legal actions that ultimately result in higher rates for customers. Critics, however, worry that limiting the types of recoverable expenses could strain the operational capacity of these utilities. The stakeholders remain divided on whether this measure would lead to more ethical practices within the industry or create an imbalance in the financial viability of water service providers.