Texas House Bill HB4054

Texas 2019 - 86th Regular

Caption

Relating to a landowner petition to partition and transfer a geographic portion of a service area of an electric cooperative.

Impact

If enacted, HB4054 could significantly alter how electric cooperatives operate within Texas. The bill proposes a clear framework for landowners, creating a procedure to seek service area adjustments that can foster competition in electricity supply. It empowers landowners by establishing criteria for petitioning the commission to effectuate these changes, potentially leading to increased efficiency in service delivery and options for consumers in areas served by electric cooperatives.

Summary

House Bill 4054 pertains to the ability of landowners to petition for the partitioning and transfer of a geographic portion of an electric cooperative's service area. Specifically, the bill allows landowners whose property lies partially within an area regulated by an electric cooperative and an area open to competition in the Electric Reliability Council of Texas (ERCOT) to request a transition of service area. The petition would enable the commission to assess the land and execute the necessary regulatory changes if deemed beneficial for ratepayers.

Contention

Some points of contention surrounding HB4054 may arise regarding the implications for existing electric cooperatives. Opponents could argue that the bill might destabilize existing service arrangements and affect the cooperative's financial assets due to the mandated compensation for transferred assets. The need for careful regulation and assessment by the Utilities Commission is crucial to prevent any negative impacts on cooperative operations and ensure the interests of both landowners and cooperatives are balanced.