Texas Senate Bill SB661

Texas 2019 - 86th Regular

Caption

Relating to the establishment of rates for certain non-ERCOT utilities.

Impact

The bill modifies existing provisions in the Utilities Code by allowing these utilities to file applications for riders that would enable them to recover their generation investments and associated costs. A significant feature of this bill is that it allows utilities to seek approval for cost recovery even before the infrastructure goes into service, which aims to encourage timely investment in necessary infrastructure improvements. The Public Utility Commission of Texas is responsible for implementing rules that regulate these processes going forward.

Summary

Senate Bill 661 focuses on establishing regulations concerning the rates charged by certain electric utilities that operate outside the Electric Reliability Council of Texas (ERCOT). The primary aim of the bill is to facilitate the recovery of reasonable costs associated with power generation investments made by these non-ERCOT utilities. This is intended to promote investments that could potentially enhance the electric supply and infrastructure in Texas, ensuring that utilities can maintain reliable service for their customers.

Contention

While the bill has the potential to streamline investment opportunities for non-ERCOT utilities, there are concerns over the implications for consumer costs and regulatory oversight. Critics may argue that allowing utilities to recover costs prior to service could lead to increased rates for consumers, raising questions about consumer protections and transparency in rate-setting processes. The discussion surrounding SB661 is expected to emphasize the balance between encouraging infrastructure investment and safeguarding consumer interests.