Texas Senate Bill SB2114

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 seeks to streamline the process for municipalities acquiring water or sewer services by allowing the utility commission to grant single certification under specific conditions. This grant is contingent on the commission's findings regarding the incapacity of existing retail public utilities to provide adequate service. As a result, municipalities can gain the authority to operate utilities themselves or facilitate the provision of such services through franchised utilities. This change aims to enhance service delivery and responsiveness in rapidly growing areas but may also create tensions with existing utilities that could see their operations impacted by municipal acquisitions.

Summary

SB2114 proposes amendments to the Water Code concerning certificates of public convenience and necessity for providing water and sewer services in areas that have been incorporated or annexed by municipalities. The bill emphasizes the need for an express finding from the utility commission on whether a retail public utility is capable of offering continuous and adequate service to the newly integrated areas, solely based on the evidence provided by the municipality and the utility. This provision ensures that newly incorporated areas receive reliable water and sewer services aligned with state standards.

Contention

One notable point of contention surrounding SB2114 may arise from the implications for existing retail public utilities, which may feel threatened by the potential loss of business and property value due to anticipated municipal certifications. The bill requires the utility commission to determine just compensation for the affected retail public utility, including potential damages to remaining property. Opponents may argue that the bill risks undermining the interests of established utilities, while supporters will highlight the necessity for municipalities to ensure adequate service provision in newly incorporated areas, which may not be adequately addressed under current laws.