BILL ANALYSIS

H.B. 2373

By: Harris, Cody

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

In its self-evaluation report submitted to the Sunset Advisory Commission, the Public Utility Commission of Texas (PUC) listed "allow consolidation of multiple systems under one tariff" as one of its major issues in the regulation of water. According to the PUC, there is currently too much confusion for customers surrounding the determination of which part of a tariff applies to them. H.B. 2373 seeks to allow water and wastewater utilities to be treated more like electric utilities for rate-setting purposes and encourage regionalization and consolidation by removing certain conditions on the authority of a water or wastewater utility to consolidate more than one system under a single tariff. This change would also eliminate staff processing time required to produce multiple rates for one utility with several systems and would eliminate testimony and rate case expenses.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2373 repeals Section 13.145, Water Code, which conditions a water or wastewater utility's authority to consolidate more than one system under a single tariff on the systems being substantially similar in terms of facilities, quality of service, and cost of service and on the tariff providing for rates that promote water conservation for single-family residences and landscape irrigation.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.