Texas House Bill HB1435

Texas 2021 - 87th Regular

Caption

Relating to a certificate of public convenience and necessity to provide water or sewer service in an area incorporated or annexed by a municipality.

Impact

The bill mandates that the utility commission must determine whether the retail public utility can provide continuous and adequate service to the newly incorporated or annexed areas. If it is found that the utility is lacking in this capacity, the municipality may be granted a single certification, allowing it to take over the service provision. This measure seeks to enhance service reliability and accessibility for residents in newly incorporated regions, thereby potentially improving public health and safety through better management of water and sewer services.

Summary

House Bill 1435 addresses the provision of water and sewer services in areas that have been incorporated or annexed by municipalities in Texas. The bill modifies the existing regulatory framework by amending Section 13.255 of the Water Code, focusing on the issuance of certificates of public convenience and necessity to retail public utilities. This legislative change aims to ensure that municipalities have the ability to assess and provide these critical services where retail public utilities may not demonstrate the capability to do so adequately.

Contention

Notable points of contention arising from this bill include the implications of transferring service provision from established public utilities to municipalities. Concerns were raised regarding the adequacy of compensation to retail public utilities for their property that may be rendered obsolete or valueless due to this transition. Additionally, the bill includes provisions for how municipalities must inform customers of changes in service providers, which could create administrative burdens and challenges for smooth transitions in service delivery.