Texas Senate Bill SB1694

Texas 2019 - 86th Regular

Caption

Relating to authorizing a regulatory authority to establish reduced water and sewer utility rates funded by donations for the benefit of certain low-income customers.

Impact

The implementation of SB1694 would potentially lead to significant changes in how utilities calculate their rates for low-income customers. By allowing the establishment of donation funds, the bill addresses a critical gap in financial support for vulnerable populations who struggle to afford basic utilities. Regulatory authorities, such as the Public Utility Commission of Texas, are required to adopt rules to implement these changes, which may include eligibility requirements for customers seeking reduced rates. These changes are aimed at alleviating the financial burden on the elderly and those relying on assistance programs.

Summary

SB1694 aims to authorize regulatory authorities in Texas to establish reduced water and sewer utility rates for certain low-income customers, specifically targeting the elderly and those receiving medical assistance or supplemental nutrition. The bill amends Section 13.182 of the Texas Water Code and introduces provisions that allow utilities to create dedicated funds for these reduced rates, funded by donations rather than through charges to other customer classes. This initiative seeks to ensure that vulnerable sections of the population can access essential services at more affordable rates.

Contention

While the intention behind SB1694 is to support low-income customers, some lawmakers and advocacy groups may raise concerns about the funding model based on donations. The reliance on contributions could lead to instability in the availability of financial support for reduced rates, potentially putting vulnerable populations at risk if donations do not meet demand. Additionally, there may be debates regarding the effectiveness of utilizing regulatory authority to implement these rate reductions, as critics might argue that it does not address the broader issues of utility affordability.