2011 BILLS AFFECTING WATER/SEWER IOUs

RATES

No ratemaking bills passed.  Ratemaking will stay at the TCEQ.  The 12-month moratorium between filed rate cases remains unchanged.  A utility’s rate case expenses may not be automatically disallowed in contested cases and appeals.  Proposed increased rates will not be automatically suspended until a final order is issued.

CCNs

SB 573 by Sen. Robert Nichols of Jacksonville passed effective 9-1-11.  In select counties, landowners with as little as 25 acres of unserved property may obtain an expedited release from an existing CCN.  In all counties, a landowner with 50 acres of unserved property can get an expedited release more easily.

SB 1097 by Sen. Kevin Eltife of Tyler and HB 490 by Rep. Harold Dutton of Houston did not pass.  These bills would have allowed cities to condemn the CCNs of IOUs as they annexed new territory.

SB 572 by Sen. Robert Nichols of Jacksonville did not pass.  It would have required every landowner with 10 acres or more affected by a CCN application to consent in writing to the inclusion of their property in the proposed service area before the application is filed.  Notice would have to be served on all landowners of 10 acres or more and they would have an automatic right to opt out of the proposed CCN.

GROUNDWATER

SB 332 by Sen. Troy Fraser of Horseshoe Bay passed effective 9-1-11.  Texas now recognizes by statute the right of the surface owner to the groundwater under his/her property and the right to produce that water.  These rights are limited and subject to local and state regulation by groundwater conservation districts and priority groundwater management areas.

SB 330 by Sen. Robert Nichols of Jacksonville passed effective 9-1-11.  The TCEQ Executive Director must give notice to local groundwater conservation districts of suspected contamination of groundwater.

WATER CONSERVATION

HB 3090 by Rep. Brandon Creighton of Conroe passed effective 9-1-11.  Retail public utilities receiving TWDB funds must perform annual water audits and calculate their system water loss.  Retail public utilities not receiving TWDB funds must perform water audits and calculate their system water loss every five years.

SB 181 by Sen. Florence Shapiro of Plano passed effective 9-1-11.  The TCEQ and the TWDB must develop uniform methods for retail public water utilities to calculate and report water usage to be used in regional water plans.

SUNSET

The TCEQ passed through Sunset Review with nominal changes to its duties and functions. 

The Public Utility Commission and the Railroad Commission did not pass through Sunset Review and will have to repeat the process in 2 years.

MISCELLANEOUS BILLS

HB 601 by Rep. John Zerwas of Richmond passed effective 9-1-11.  The TCEQ may send notice, orders, etc. by electronic means.

HB 805 by Rep. Bill Callegari of Katy passed effective 6-17-11.  It requires certain water service providers in the Greater Houston Area to insure emergency operations during an extended power outage through the creation of emergency preparedness plans.

HB 495 by Rep. Harold Dutton of Houston did not pass.  It would have required IOUs to follow the same competitive bidding requirements imposed on public entities for contracts exceeding $50,000.