Concerns over a controversial utility bill dominated the Texas Senate Committee on Natural Resources meeting on May 14, 2025. Thomas Mercado, representing the ACSC, voiced strong opposition to the proposed legislation, arguing it would unfairly increase profits for utilities while raising rates for consumers without providing any real benefits.

Mercado highlighted that the bill, which allows utilities to self-implement rate increases based on their spending, creates a dangerous incentive for overspending. He explained, “This bill would remake 105 years of rate making,” emphasizing that it undermines the balance between customer interests and utility profits. He criticized the bill's aggressive language and its origins, suggesting that it was heavily influenced by CenterPoint, the utility company.

The discussion turned heated when committee member Sam Chang challenged Mercado's assertion that CenterPoint wrote the bill, defending the integrity of the bill's author. Chang urged Mercado to collaborate with the bill's proponents rather than make assumptions about its origins.

Mercado's testimony raised significant questions about the implications of the bill for Texas ratepayers, as he pointed out that it fails to address existing costs and could lead to over-collection of taxes by utilities. The committee's deliberations on this contentious issue will likely shape the future of utility regulation in Texas, with potential impacts on both consumers and utility companies.