Texas House Bill HB4553

Texas 2019 - 86th Regular

Caption

Relating to the certificate of convenience and need decertification.

Impact

The passage of this bill could significantly alter how utilities operate in Texas, particularly in terms of local governments' authority over public utilities. By refining the process for decertification, it may allow municipalities greater flexibility in acquiring services, potentially improving service delivery. However, the bill also imposes requirements on compensation for property deemed necessary to be transferred from the public utility to the municipality, which could influence negotiations and financial arrangements surrounding such transfers.

Summary

House Bill 4553 addresses the processes and conditions under which a municipality can decertify a retail public utility's certificate of convenience and necessity. Specifically, the bill stipulates that the utility commission may grant a single certification to a municipality unless it finds that the municipality has not adequately demonstrated the public utility's incapacity to serve the proposed decertified area. This creates a structured method for municipalities to acquire utilities through clear statutory guidance on the necessary findings and conclusions based on presented information.

Contention

Notable points of contention may arise regarding the implications for current public utilities who may resist decertification efforts by municipalities. Stakeholders may argue about the fairness and adequacy of compensation for utilities whose property is affected by transfers. Critics might express concerns that the bill favors municipal interests at the expense of retail public utilities, leading to conflicts over property rights and operational capacities in areas undergoing transitions to new service providers.