Texas Senate Bill SB1690

Texas 2021 - 87th Regular

Caption

Relating to rates charged for wholesale or retail electric service; authorizing a civil penalty.

Impact

The bill establishes specific rights for ratepayers, mandating that utilities provide advanced written notice before discontinuing service and allowing customers to negotiate payment terms during financial hardships. Furthermore, it creates a framework to ensure that no customer is charged excessively during declared emergencies, reinforcing consumer protections while holding utilities accountable for their pricing strategies. This can significantly alter the landscape of utility regulation, shifting focus towards greater consumer protection and transparency.

Summary

SB1690, known as the Texas Ratepayer's Bill of Rights, aims to amend regulations regarding rates charged for wholesale or retail electric services. The legislative findings acknowledge the state's historical failures in managing the electric grid, particularly highlighted by the catastrophic weather events of February 2021. This bill intends to protect Texas families from unfair practices and ensure equitable access to electricity during emergencies, addressing the suffering and exploitative pricing experienced in previous crises.

Contention

While proponents of SB1690 argue that it is a necessary step towards safeguarding consumer interests during emergencies, there may be concerns from utility providers regarding the implications for operational flexibility and costs. Critics could argue that while the bill seeks to address immediate concerns, it may inadvertently complicate the business operations of utilities, potentially leading to higher prices for consumers in the long run. This tension highlights the need for a balance between consumer protection and the sustainability of utility operations.