Texas Senate Bill SB1769

Texas 2021 - 87th Regular

Caption

Relating to the authorization of dual certification of convenience and necessity for water and sewer service in incorporated or annexed areas.

Impact

The bill has significant implications for state laws governing water and sewer services by enabling municipalities in specific demographics—those located in densely populated counties without major cities—to manage service areas more effectively. By allowing for dual certification, local governments could enhance service reliability while navigating changes in community needs more responsively. This move also emphasizes the importance of local governance in utility management and could lead to increased competition that benefits consumers through improved service options.

Summary

SB1769 is a legislative proposal that seeks to amend the Texas Water Code by introducing provisions for the dual certification of convenience and necessity for water and sewer services in incorporated or annexed areas. Specifically, the bill stipulates that municipalities meeting certain criteria can provide written notice to retail public utilities about areas that may be served by either municipally owned utilities or franchised utilities. This allows for flexibility in service provision as well as competition among utility providers, which is anticipated to enhance services and potentially lower costs for consumers.

Contention

However, there are potential points of contention inherent in the implementation of SB1769. Critics may argue that the introduction of dual certification could create confusion in service areas where multiple providers exist, leading to disputes over service reliability and quality. Additionally, concerns might arise regarding the financial implications for existing retail public utilities, especially those fearful of being forced to sell or relinquish their assets without receiving adequate compensation, which the bill seeks to address through defined procedures for monetary compensation and property transfers.