Texas Senate Bill SB1115

Texas 2017 - 85th Regular

Caption

Relating to the revocation of certain water utilities' certificate of public convenience and necessity for major rules violations.

Impact

If enacted, SB1115 would introduce new mechanisms for oversight and accountability specifically for larger investor-owned water utilities that face significant regulatory challenges. It delineates a process whereby the commission can intervene by appointing a temporary manager to oversee utility operations. This change could stabilize utilities that have struggled with compliance, thereby enhancing the protection of consumers and ensuring consistent service delivery across the state.

Summary

Senate Bill 1115 addresses issues related to the management and regulation of investor-owned water utilities in Texas. The bill proposes a framework for the revocation of a water utility's certificate of public convenience and necessity if the utility violates major regulatory rules consistently over an extended period. The intention is to empower the Texas Utility Commission with more authority to address repeated violations, particularly those affecting service quality, and to ensure that affected communities can maintain access to reliable water services.

Contention

While the bill aims to enhance accountability within the water utility sector, it may raise concerns regarding the balance of regulatory control and operational autonomy for utilities. Stakeholders may have differing opinions on the appropriateness of state intervention versus self-correction within the utilities. The process for appointing temporary managers and setting criteria for revocation of certificates may also trigger discussions about the feasibility and implications for existing service providers, including economic impacts and the quality of customer service.