Texas Senate Bill SB1022

Texas 2021 - 87th Regular

Caption

Relating to the appeal of rates charged for water or sewer service by certain retail public utilities.

Impact

If enacted, SB1022 would significantly influence how retail public utilities establish and appeal their rates. The bill stipulates that the utility commission must consider the provisions of any wholesale water or sewer service agreements when evaluating disputes over rates. This means a shift in how rate structures are assessed, which may lead to a more standardized approach and enhance transparency for consumers. The adjustments could foster a more equitable pricing mechanism that benefits all customer classes while maintaining the financial viability of the utilities.

Summary

Senate Bill 1022 aims to modify the existing legal framework governing the appeal process of rates charged by retail public utilities for water or sewer services. By amending Section 13.043 of the Texas Water Code, the bill emphasizes that any appealed rates must be just and reasonable, avoiding any unreasonable preferential or discriminatory practices among different classes of customers. This legislative move seeks to ensure that utility rates are equitable and consistent, thereby preserving the financial integrity of the utilities involved in any rate assessment process.

Sentiment

The sentiment around SB1022 appears generally supportive among stakeholders advocating for consumer protection and fair utility practices. By establishing clearer guidelines for rate appeals and fostering transparency, supporters believe the bill will enhance consumer trust in public utilities. However, there may be concerns raised by utility companies regarding how these changes might affect their operational finances and the spectrum of market competitiveness.

Contention

While the bill aims to provide clarity and fairness in the rate setting process, some contention might arise from the utilities' perspective. They could argue that the proposed amendments may constrain their ability to adjust rates flexibly in response to fluctuating costs or market conditions. The balancing act of ensuring just and reasonable rates while protecting the financial health of utilities could be a point of debate as the bill moves through the legislative process.