BILL ANALYSIS

C.S.H.B. 2442

By: Guillen

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Concerns have been raised regarding the lack of due process for the granting of single certification by the Public Utility Commission of Texas (PUC) to a municipality for the provision of retail utility service to an incorporated or annexed area that is being served by a retail public utility. The current decertification process at the PUC is automatic and offers little in the way of process for the retail water utility whose area is being decertified. Current statute language makes it difficult for the water utility to receive any compensation for their assets in their service delivery upon decertification. C.S.H.B. 2442 seeks to revise certain provisions relating to certificates of public convenience and necessity issued to certain retail public utilities, including by providing for notice, the opportunity to respond, and the opportunity for the retail public utility to appeal certain actions by the PUC.

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

C.S.H.B. 2442 amends the Water Code to revise certain provisions relating to certificates of public convenience and necessity issued to certain retail public utilities as follows:

· requires a landowner of a tract of land that is at least 25 acres and that is not receiving water or sewer service who submits a petition to the Public Utility Commission of Texas (PUC) for expedited release of the area from a certificate of public convenience and necessity to send, via certified mail and on the day the petitioner submits the petition, a copy of the petition to the certificate holder, who may submit information to the PUC to controvert information submitted by the petitioner;

· requires a municipality that submits an application to the PUC for single certification in incorporated or annexed areas to send, via certified mail or hand delivery and on the day the municipality submits the application, a copy of the application to the applicable retail public utility;

· specifies that the PUC is required by order to grant a single certification to a municipality; and

· authorizes a retail public utility to appeal a final order of the PUC granting single certification to a municipality.

The bill provides for the retail public utility's appeal to occur in a separate hearing before the PUC, before filing an appeal with the Travis County district court, and not later than the seventh day after the date the PUC issues a final order. The bill applies only to a proceeding affecting a certificate of public convenience and necessity that commences on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2442 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced provided for the PUC to make a finding to grant single certification to the municipality, the substitute provides for the PUC to grant by order such certification.