Texas House Bill HB2988

Texas 2015 - 84th Regular

Caption

Relating to the authority of the Railroad Commission of Texas to adopt certain rules related to ratemaking procedures and to the status of previously adopted rules.

Impact

The bill's impact on existing state laws could be significant, as it effectively nullifies any rules adopted within a defined timeframe that do not adhere to the strict criteria outlined. By limiting the commission's ability to implement new rules, the legislation reinforces previously established regulations, promoting stability within the gas utility sector. Moreover, it emphasizes adherence to historical guidelines, thereby potentially preventing disruptions that could arise from more recent regulatory changes.

Summary

House Bill 2988 seeks to amend the Natural Resources Code by clarifying the authority of the Railroad Commission of Texas regarding its ratemaking procedures. The bill stipulates specific limitations on the commission's ability to adopt new rules related to these procedures, particularly focusing on rules that were established before January 1, 2014, and those that were enacted between January 1, 2014, and September 1, 2015. This legislation essentially aims to maintain continuity and restrict changes in rules that govern how gas utilities manage their ratemaking processes.

Contention

While the bill appears to reinforce regulatory consistency, it may lead to contention among stakeholders who desire more flexibility in ratemaking assessments. Opponents might argue that the restrictions could hinder the Railroad Commission's ability to adapt to evolving market conditions or technological advancements. The specificity of the provisions may be seen as overly prescriptive, limiting opportunities for reform that could improve how gas utilities operate or respond to public needs.