Texas Senate bill authored by Sen. Schwertner mandates clear utility rate change disclosures

Newly passed bill authored by State Sen. Charles Schwertner seeks to increase transparency by mandating utilities to provide clear, detailed information on proposed rate changes and related charges to the public, according to the Texas Legislature website.

In the Senate, 10 Democrats and 20 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the House, 52 Democrats and 83 Republicans voted in favor, also with no opposing votes.

Charles Schwertner introduced the bill in the Texas Senate on Thursday, Feb. 27, during the 89th regular legislative session.

Schwertner graduated from the University of Texas at Austin with a BS.

Schwertner, a Republican, was elected to the Texas State Senate in 2013 to represent the state’s 5th Senate district, replacing previous state senator Steve Ogden.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to public information regarding the rates of a transmission and distribution utility’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill mandates that transmission and distribution utilities in Texas provide clear, standalone documents detailing any proposed rate changes with their statements of intent filed under Chapter 36. These documents must include specific information such as the rate changes for each class, the duration the changes will be in effect, anticipated revenue increases, current and projected delivery charges for average residential customers, and the differences between these charges. The Public Utility Commission of Texas is tasked with ensuring these documents are easily understood by the public and published monthly on their website for transparency. If a regulatory authority suggests a different rate change than initially proposed, the utility must submit revised documentation. This legislation applies to proceedings beginning on or after Sept. 1, 2025.

The bill received its final legislative approval on Saturday, May 24, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.