Texas Senate Bill SB1271

Texas 2015 - 84th Regular

Caption

Relating to the recovery of certain expenses by an electric utility in a ratemaking proceeding; adding provisions subject to a criminal penalty.

Impact

The implications of SB1271 could significantly affect state laws regarding how utilities recover costs associated with their regulatory obligations. By enforcing a uniform basis for cost recovery, the bill aims to provide greater transparency and fairness in utility billing practices. It also seeks to protect consumers from potentially higher costs that could arise from fragmented local recovery systems. This change is anticipated to streamline the financial operations of electric utilities and enhance regulatory oversight.

Summary

SB1271 is a bill introduced in the Texas Legislature that addresses the recovery of certain expenses by electric utilities during ratemaking proceedings. The bill amends the Utilities Code to specify that electric utilities can recover the reasonable costs of reimbursing governing bodies only on a uniform, system-wide basis. This change ensures that expenses incurred by utilities are not disproportionately passed on to consumers but are instead spread evenly among all customers served by the utility.

Contention

Notable points of contention surrounding SB1271 relate to the potential impact on utility rates and consumer protection. Critics of similar measures often argue that centralizing cost recovery might limit local governments' influence and oversight over utility pricing and expenditures. Furthermore, the introduction of provisions subject to criminal penalties for non-compliance raises concerns about how these penalties might be enforced and their effectiveness in ensuring that utilities adhere to the new regulations. Proponents of the bill, however, argue that uniformity in cost recovery is essential for maintaining equitable rates for all consumers and promoting responsible utility management.