Relating to the consideration of compliance with rules of the Texas Commission on Environmental Quality in approving rates for water or sewer utility services.
Impact
The bill is expected to influence the way water utility companies are evaluated by regulatory agencies, particularly in how their rates are approved. With the provisions in SB2499, utilities will need to demonstrate compliance with existing environmental regulations, which could lead to stricter oversight by the TCEQ. This legislative change carries potential ramifications for consumers, as compliance may require utilities to invest in upgrades or changes in operations, which could ultimately affect service costs.
Summary
SB2499 aims to amend the Water Code in Texas, specifically focusing on the regulation of rates for water and sewer utility services. The bill emphasizes the importance of compliance with the rules set by the Texas Commission on Environmental Quality (TCEQ) during rate proceedings. By mandating that regulatory authorities consider a utility's compliance as a factor in determining reasonable returns on invested capital, the bill seeks to promote adherence to environmental standards and efficient resource management. This aligns with broader goals of sustainable water management practices in the state.
Contention
While the bill has supportive backing for its intent to ensure environmental compliance, there may be contention surrounding its implementation. Concerns arise regarding the financial impact on utilities and consequently on consumers if compliance standards increase operational costs. Additionally, stakeholders may debate the effectiveness of this regulatory change in achieving its environmental goals versus the burdens it places on utility operations, especially smaller providers who may struggle to meet such standards.
Identical
Relating to the consideration of compliance with rules of the Texas Commission on Environmental Quality in approving rates for water or sewer utility services.
Relating to the transfer of functions relating to the economic regulation of water and sewer service from the Public Utility Commission of Texas and the Office of Public Utility Counsel to the Water Public Utility Commission and the Office of Water Public Utility Counsel; creating a criminal offense.
Relating to the inclusion of a water conservation plan in a petition filed with the Texas Commission on Environmental Quality requesting the creation of a municipal utility district.