🟡Relating to the enforcement of drought contingency plans by water and sewer utilities and the Public Utility Commission of Texas.

🟡 SB 2662: Stronger drought enforcement for water utilities

What it says it does:
SB 2662 says it will make drought contingency plans more effective by giving utilities and regulators clearer authority to enforce water restrictions during shortages.

What it actually changes:
It requires every utility to file its drought plan as part of its official tariff. It confirms that drought rules are not “rates” so they cannot be challenged in rate cases. Utilities are explicitly allowed to fine, surcharge, limit, or disconnect service for violations. The Public Utility Commission joins TCEQ and TWDB to issue statewide model drought plans every five years.

Who is pushing for it:
Supporters in the files include the Texas Association of Water Companies, multiple groundwater conservation districts, Wimberley Water Supply Corporation, municipal officials, and environmental organizations such as Sierra Club and Greater Edwards Aquifer Alliance.

Who benefits:
Investor-owned water utilities gain stronger enforcement tools. Regulators gain clearer roles in shaping statewide drought planning. Conservation districts and environmental groups benefit from faster demand reduction in dry years.

Who gets left out or exposed:
Customers who fail to comply face real financial risk through surcharges and the possibility of shutoffs. Households with medical needs, renters, or small businesses with high outdoor water use could be disproportionately affected if “reasonable procedures” are uneven across utilities.

Why this matters long term:
The bill shifts more practical power to utilities by embedding penalties in tariffs and removing some avenues of public challenge. It sets up a precedent where statewide models quietly shape enforcement culture, even if they are not binding.

What to watch next:
How utilities design their “reasonable procedures” for notice and appeals. Whether PUC reporting captures who is being fined or disconnected. How future model drought plans expand penalties or tighten compliance expectations.

Bottom line:
SB 2662 helps conserve water in drought, but it does so by giving utilities sharper enforcement tools without setting uniform consumer safeguards. The result is stronger conservation leverage paired with uneven protection for vulnerable communities.

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