89th Legislature

SB 1664

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

SB 1664 seeks to improve public transparency in the rate-setting processes of transmission and distribution utilities in Texas. The bill adds Section 39.113 to Subchapter C, Chapter 39 of the Texas Utilities Code and imposes a new requirement for utilities when submitting a statement of intent to change rates. Specifically, the legislation mandates the inclusion of a stand-alone, easy-to-understand document that outlines the scope and impact of the proposed rate change.

This required document must detail several key components: the specific rate changes applicable to each rate class, the timeframe in which the new rates will be in effect, and the projected revenue the utility expects to collect under the new rates. For base rate increases, this projection covers a four-year period; for other rate changes, it spans the duration the change remains effective. Additionally, utilities must include a side-by-side comparison of current versus proposed delivery charges for an average residential customer, along with the monetary difference.

To further facilitate public access and comprehension, SB 1664 directs the Public Utility Commission of Texas (PUCT) to ensure these documents are presented in a format easily understandable by consumers. Moreover, the PUCT is tasked with maintaining and updating rate information monthly on its website, including the state's consumer comparison platform, “Power to Choose.” The bill also accounts for regulatory adjustments by requiring updated public documents if the commission modifies a proposed rate change before approval.

In essence, SB 1664 increases utility rate transparency, enhances consumer access to vital pricing information, and reinforces accountability in utility filings without imposing substantive regulatory constraints on pricing or business models.

Author
Charles Schwertner
Sponsor
Lacey Hull
Fiscal Notes

According to the Legislative Budget Board (LBB), SB 1664 is not expected to have a significant fiscal impact on the state. The Public Utility Commission of Texas (PUCT), which is responsible for implementing the bill’s transparency and public information requirements, is anticipated to absorb any additional costs using its existing resources. This means the bill will not necessitate additional appropriations or funding increases from the state budget.

Likewise, no significant fiscal impact is projected for local governments. Since the bill’s primary implementation responsibilities rest with state-level regulatory bodies and utilities—which are not typically under local government control—municipal or county budgets are unlikely to be affected.

In summary, SB 1664 achieves its policy goal of increasing utility rate transparency with minimal financial burden on state or local agencies. This makes the measure fiscally neutral while still delivering potential benefits to consumers in the form of improved access to rate information.

Vote Recommendation Notes

Texas Policy Research recommends that lawmakers vote YES on SB 1664 based on its targeted approach to enhancing transparency in Texas' electricity market, particularly for transmission and distribution utilities (TDUs) that operate as regulated monopolies. The bill requires these utilities to submit a stand-alone, public-facing document whenever they propose a rate change. This document must include clear information about the nature, timing, and financial impact of the change, especially on residential customers. It also mandates that the Public Utility Commission of Texas make this information accessible and regularly updated online.

While it does place a regulatory requirement on private businesses, this concern is mitigated by the unique nature of the entities involved. TDUs do not operate in a competitive marketplace; their rates and service areas are established by the state, and customers have no choice but to use their assigned utility provider. In such a context, transparency requirements serve as a proxy for market accountability. The bill does not interfere with pricing decisions or impose operational restrictions—it simply ensures that rate information is disclosed in a format the public can understand.

From a liberty-oriented perspective, SB 1664 strikes a sound balance. It enhances individual liberty by giving consumers better access to information, supports personal responsibility through informed decision-making, and does so without expanding the size or scope of government in a material way. The bill is fiscally neutral, requiring no significant additional state or local spending.

  • Individual Liberty: The bill enhances individual liberty by increasing access to clear, actionable information about electricity delivery charges. Currently, rate structures can be opaque and difficult for consumers to interpret. By requiring utilities to present this information in a simple, stand-alone document, the bill empowers individuals to understand how rate changes affect them, supporting their autonomy in making informed financial decisions. In deregulated markets, this transparency also enhances consumer choice by enabling better comparisons among retail electricity providers.
  • Personal Responsibility: The bill reinforces personal responsibility by equipping consumers with the tools needed to take ownership of their energy consumption and budgeting. With transparent delivery cost projections and rate change explanations, individuals can make more informed decisions about energy use, plan for cost increases, or explore options available in competitive retail markets. Providing information is a foundational step in fostering responsible behavior without coercive mandates.
  • Free Enterprise: While the bill imposes a disclosure requirement on private utilities, these utilities are not operating in a typical competitive market. They are state-regulated monopolies that serve captive customers. SB 1664 does not limit business operations, profits, or pricing; it simply adds a transparency layer to ensure that customers understand what they’re being charged. In that sense, it supports the principles of free enterprise by encouraging market-like accountability in a non-competitive environment. It enhances consumer information, which is a key condition of a functioning market—even in regulated sectors.
  • Private Property Rights: Though indirect, the bill helps protect private property rights by ensuring residents are not subject to undisclosed or poorly explained increases in utility costs, which can affect the cost of living, homeownership stability, and budgeting. Transparent utility billing safeguards homeowners and renters from unexpected financial burdens that could impact their ability to maintain or enjoy their property.
  • Limited Government: The bill is consistent with limited government principles because it does not expand regulatory control over pricing or operations. Instead, it establishes a minimal disclosure requirement that enables the public to evaluate regulatory decisions and utility filings. It asks the Public Utility Commission to facilitate access to this data, using existing resources and infrastructure, with no new enforcement mechanisms or bureaucracies created. This measured intervention supports transparency and accountability without growing government authority or cost.
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