Texas House Bill HB71

Texas 2011 - 82nd 1st C.S.

Caption

Relating to the establishment of certain water and sewer utility rates and the transfer of certain functions from the Texas Commission on Environmental Quality to the Public Utility Commission of Texas.

Impact

The bill significantly alters the procedural landscape for water and sewer utilities in Texas. It specifies the authorities of both the utility commission and municipalities in determining rates and operations, granting municipalities the opportunity to surrender jurisdiction over these matters temporarily. Furthermore, it emphasizes appealing to the utility commission for decisions on utility rates, which may streamline regulatory practices for utility management across Texas. Such changes could create a more standardized approach to utility rates, potentially easing compliance for utilities while aiming to protect consumer interests.

Summary

House Bill 71 aims to address the governance and regulation of water and sewer utility rates by revising specific sections of the Water Code related to the Texas Commission on Environmental Quality (TCEQ) and the Public Utility Commission (PUC). The bill proposes a method for establishing interim rates while awaiting final decisions on appeals related to utility rate determinations. This change intends to enhance the timeliness and efficiency of rate-setting processes to ensure that necessary utility services are provided consistently and reliably.

Sentiment

Sentiment around the bill appears moderately supportive, particularly among stakeholders who advocate for predictable regulation. Supporters argue that establishing clear processes for interim rates and utility oversight can lead to improved service delivery and minimize disruptions caused by variable rate approvals. However, there may be apprehension from local governments and advocacy groups who fear the bill could limit their regulatory powers over local utility matters, which could lead to conflicts between state and local regulatory authorities.

Contention

Notably, points of contention include the balance of power between state and local authorities, especially regarding the ability of municipalities to manage local utility rates effectively. Critics of the bill may argue that it centralizes too much power in the utility commission, potentially undermining local autonomy. Additionally, concerns were raised regarding how the mechanisms for establishing interim rates could be misused, leading to unfair or excessive charges on consumers before the final rate decisions are implemented.