Texas Senate Bill SB2499

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

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.

Texas Constitutional Statutes Affected

Water Code

• Chapter 13. Water Rates And Services
  • Section: 184
  • Section: 185