Test years used for ratemaking purposes by certain water and sewer utilities

Texas SB1891 proposes changes to the test years that certain water and sewer utilities use when determining their rates. Essentially, it aims to update the way these utilities calculate their costs and set prices for services. This could affect how much customers pay for their water and sewer services.

Supporters of SB1891 argue that updating the test years will lead to fairer and more accurate pricing for water and sewer services. They believe this bill will help ensure that utilities can cover their costs while providing reliable service to residents, ultimately benefiting consumers.

Critics of SB1891 may argue that changing the test years could lead to higher rates for consumers, as utilities might use the new calculations to justify increased charges. They may also express concerns that this bill prioritizes utility profits over the affordability of essential services for Texas residents.