Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain water utilities.
The impact of SB1310 is significant for both water utilities and residents. It seeks to enhance customer service levels by enabling the transfer of service to alternative providers in cases where existing utilities fail to meet service expectations. The bill includes provisions that allow landowners within a specified size to petition for expedited release from their current CCN, facilitating access to better service options. For those areas that undergo decertification, the bill mandates fair compensation calculations to ensure that the outgoing utility is reimbursed for lost connections and potential revenues.
Senate Bill 1310 establishes new procedures for amending or revoking certificates of public convenience and necessity (CCN) for certain water utilities in Texas. The bill outlines the conditions under which the Texas Utility Commission can revoke or amend a CCN, primarily focusing on ensuring continuous and adequate service delivery. The proposed law allows the Commission to act if a utility is incapable of providing sufficient service or if service has been denied, addressing the growing concern regarding inadequate utilities and the impact on residents in affected areas.
Notable points of contention surrounding SB1310 revolve around the balance of regulatory power between state authority and local utility operations. Proponents argue that it is crucial for ensuring residents have access to quality service, while opponents express concerns that such changes may lead to inconsistencies in service levels and operational disruptions while new utilities are offboarded. The discussion emphasizes the need for adequate compensation mechanisms to avoid creating financial burdens on current providers, particularly those who have invested in infrastructure based on their entitled service areas.