HB 3857

83(R) - 2013
Natural Resources

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Negative
  • Neutral


Eddie Lucio III

Bill Caption

Relating to periodic rate adjustments by water and sewer utilities.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Summary: HB 3857 would place extra regulations on water and sewer utilities, including prohibiting the utilities from raising their rates more than once in a year.

Analysis: Most public water and sewer utilities in Texas do not operate in a free market, and most have government granted monopolies. Because of this government granted anti-competitive market, the government does have a responsibility that they would not have in a free market situation to regulate rate hikes. However, sufficient protections already exist to prevent public utilities from abusing their monopoly power. HB 3857 would represent an expansion of government regulation beyond what is necessary to keep these monopoly utilities in check. We oppose this legislation.