Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
SB726 by Nichols (Relating to the recovery of certain rate case expenses by a water and sewer utility.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend the Water Code to prohibit the governing body of a municipality that owns or operates a water and sewer utility from including in setting rates legal expenses incurred in a contested proceeding related to a hearing on intent to change rates or related to cost reimbursement to a consultant, accountant, or other experts.
Local Government Impact
The fiscal impact would vary by municipally owned utility and would depend on losses incurred through contested proceedings for which the municipality may otherwise have sought to recoup through utility rates.