Texas Senate Bill SB2327

Texas 2025 - 89th Regular

• Filed: 3/12/25

Caption

Relating to the generation of electric power for sale by a water supply or sewer service corporation.

Impact

If enacted, SB2327 could significantly impact the operational landscape for water supply and sewer service corporations by enabling them to generate and sell electricity. The generated revenue can be reinvested into their service operations or other approved purposes. This financial flexibility may enhance the resiliency of these corporations and allow them to maintain or improve service delivery. However, this also raises questions about the operational focus of these corporations and the regulatory framework governing their activities in both water and electricity.

Summary

Senate Bill 2327 aims to amend the Texas Water Code, specifically allowing water supply and sewer service corporations operating in the Electric Reliability Council of Texas (ERCOT) to register as power generation companies. The bill facilitates these corporations in generating electric power for sale within the ERCOT region, potentially providing a new revenue stream for entities traditionally focused on water services. This change reflects an evolving landscape where utility providers can diversify their services by entering the energy market.

Contention

The bill invites discussion about the appropriateness of allowing water supply and sewer service corporations to engage in the power market. Proponents argue that this diversification can enhance financial stability and service reliability, while critics may express concerns over the potential dilution of focus from public water services to profit-driven energy generation. Additionally, there may be scrutiny related to safety, regulatory compliance, and the implications of overlapping responsibilities between water and energy sectors.

Texas Constitutional Statutes Affected

Water Code

• Chapter 67. Nonprofit Water Supply Or Sewer Service Corporations
  • Section: New Section
  • Section: 002
  • Section: 004

Utilities Code

• Chapter 39. Restructuring Of Electric Utility Industry
  • Section: 351