Texas Backbone Authority
The Texas Backbone Authority (TBA) is a proposed state entity responsible for:
- Owning and operating the pipeline infrastructure
- Setting water transmission rates
- Allocating capacity among municipal customers
- Coordinating with private desalination operators
The TBA model is based on successful water authorities in Texas and other states, adapted for this unique infrastructure.
Board Structure
A 9-member board provides balanced representation:
| Seats | Appointed By | Representing |
|---|---|---|
| 3 | Governor | State interests, technical expertise |
| 2 | Lt. Governor | Senate confirmation, regional balance |
| 2 | Speaker | House input, constituent concerns |
| 2 | TWDB | Technical/regulatory coordination |
Board member qualifications:
- Water management experience or expertise
- No conflicts of interest with private operators
- Geographic diversity across the state
- Staggered 6-year terms for continuity
Pricing Authority
The TBA sets cost-plus pricing to ensure:
- Full cost recovery for infrastructure
- Fair return for private desalination operators (8% margin)
- Affordable rates for municipal customers
- Transparent rate-setting process
Pricing structure:
| Component | Description |
|---|---|
| Base rate | Covers transmission O&M |
| Capital recovery | Pays down infrastructure bonds |
| Water cost | Pass-through from desalination operators |
| Reserve contribution | Builds maintenance/emergency fund |
Rate changes require public notice and board approval.
Allocation Framework
Capacity allocation follows a priority system:
- Contracted municipal customers (firm allocations)
- Interruptible customers (as available)
- Emergency supplies (drought response)
Allocation decisions are based on:
- Demonstrated need (water planning data)
- Commitment (long-term contracts)
- Regional equity (no single region dominates)
Accountability
The TBA answers to the public through:
- Annual audits by State Auditor
- Performance reports to Legislature
- Public meetings with notice and participation
- Rate review process with stakeholder input
Key principle: The TBA operates the infrastructure in the public interest, not for profit. Any surplus funds reduce rates or build reserves—they don't enrich private interests.