1-1 By: Yost (Senate Sponsor - Truan) H.B. No. 2677
1-2 (In the Senate - Received from the House May 3, 1993;
1-3 May 4, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 14, 1993, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; May 14, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the requirement of water utilities to obtain a
1-22 certificate of convenience and necessity.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Section 13.181, Water Code, is amended to read as
1-25 follows:
1-26 Sec. 13.181. Power to Ensure Compliance; Rate Regulation.
1-27 Subject to this chapter, the commission has all authority and power
1-28 of the state to ensure compliance with the obligations of utilities
1-29 under this chapter. For this purpose the regulatory authority may
1-30 fix and regulate rates of utilities, including rules and
1-31 regulations for determining the classification of customers and
1-32 services and for determining the applicability of rates. A rule or
1-33 order of the regulatory authority may not conflict with the rulings
1-34 of any federal regulatory body. Except Section 13.192, this
1-35 subchapter shall apply only to a utility and shall not be applied
1-36 to municipalities, districts, or water supply or sewer service
1-37 corporations. The commission may adopt rules which authorize a
1-38 utility which is permitted under Section 13.242(c) to provide
1-39 service without a certificate of public convenience and necessity
1-40 to request or implement a rate increase and operate according to
1-41 rules, regulations, and standards of service other than those
1-42 otherwise required under this chapter provided that rates are just
1-43 and reasonable for customers and the utility and that service is
1-44 safe, adequate, efficient, and reasonable.
1-45 SECTION 2. Section 13.242, Water Code, is amended to read as
1-46 follows:
1-47 Sec. 13.242. Certificate Required. (a) Unless otherwise
1-48 specified, a utility or water supply or sewer service corporation
1-49 may not in any way render retail water or sewer utility service
1-50 directly or indirectly to the public without first having obtained
1-51 from the commission a certificate that the present or future public
1-52 convenience and necessity <require or> will require that
1-53 installation, operation, or extension, and except as otherwise
1-54 provided by this subchapter, a retail public utility may not
1-55 furnish, make available, render, or extend retail water or sewer
1-56 utility service to any area to which retail water or sewer utility
1-57 service is being lawfully furnished by another retail public
1-58 utility without first having obtained a certificate of public
1-59 convenience and necessity that includes the area in which the
1-60 consuming facility is located.
1-61 (b) A person that is not a retail public utility or a
1-62 utility or water supply corporation that is operating under
1-63 provisions pursuant to Subsection (c) may not construct facilities
1-64 to provide water or sewer service to more than one service
1-65 connection not on the property owned by the person and that are
1-66 within the certificated <service> area of a retail public utility
1-67 without first obtaining written consent from the retail public
1-68 utility. A person that violates this section or the reasonable and
2-1 legal terms and conditions of any written consent is subject to the
2-2 administrative penalties described <prescribed> by Section 13.4151
2-3 of this code.
2-4 (c) The commission may by rule allow a municipality or
2-5 utility or water supply corporation to render retail water service
2-6 without a certificate of public convenience and necessity if the
2-7 municipality has given notice under Section 13.255 of this code
2-8 that it intends to provide retail water service to an area or if
2-9 the utility or water supply corporation has less than 15 potential
2-10 connections and is not within the certificated area of another
2-11 retail public utility. <Not later than September 1, 1990, a
2-12 utility or water supply or sewer service corporation that has been
2-13 previously exempted from the certificate requirements because of
2-14 operations, extensions, or service in progress on September 1,
2-15 1975, shall submit to the commission a completed application to
2-16 obtain a certificate of public convenience and necessity for the
2-17 service being provided on September 1, 1975. The commission shall
2-18 grant a certificate of public convenience and necessity to the
2-19 customer locations currently being served by the utility or water
2-20 supply or sewer service corporation that were also being served on
2-21 September 1, 1975.>
2-22 SECTION 3. Section 13.250(d), Water Code, is amended to read
2-23 as follows:
2-24 (d) Except as provided by this subsection, a <A> retail
2-25 public utility that has not been granted <but is required by law to
2-26 possess> a certificate of public convenience and necessity may not
2-27 discontinue, reduce, or impair retail water or sewer service to any
2-28 ratepayer without approval of the regulatory authority. Except as
2-29 provided by this subsection, a utility or water supply corporation
2-30 that is allowed to operate without a certificate of public
2-31 convenience and necessity under Section 13.242(c) may not
2-32 discontinue, reduce, or impair retail water or sewer service to any
2-33 ratepayer without the approval of the regulatory authority.
2-34 Subject to rules of the regulatory authority, a retail public
2-35 utility, utility, or water supply corporation described in this
2-36 subsection may discontinue, reduce, or impair retail water or sewer
2-37 service <except> for:
2-38 (1) nonpayment of charges;
2-39 (2) nonuse; or
2-40 (3) other similar reasons in the usual course of
2-41 business.
2-42 SECTION 4. Section 13.254, Water Code, is amended to read as
2-43 follows:
2-44 Sec. 13.254. Revocation or Amendment of Certificate.
2-45 (a) The commission at any time after notice and hearing may revoke
2-46 or amend any certificate of public convenience and necessity with
2-47 the written consent of the certificate holder or if it finds that
2-48 the certificate holder has never provided, is no longer providing,
2-49 or has failed to provide continuous and adequate service in the
2-50 area, or part of the area, covered by the certificate.
2-51 (b) Upon written request from the certificate holder, the
2-52 executive director may cancel the certificate of a utility or water
2-53 supply corporation authorized by rule to operate without a
2-54 certificate of public convenience and necessity under Section
2-55 13.242(c).
2-56 (c) If the certificate of any public utility is revoked or
2-57 amended, the commission may require one or more public utilities to
2-58 provide service in the area in question.
2-59 SECTION 5. The importance of this legislation and the
2-60 crowded condition of the calendars in both houses create an
2-61 emergency and an imperative public necessity that the
2-62 constitutional rule requiring bills to be read on three several
2-63 days in each house be suspended, and this rule is hereby suspended.
2-64 * * * * *
2-65 Austin,
2-66 Texas
2-67 May 14, 1993
2-68 Hon. Bob Bullock
2-69 President of the Senate
2-70 Sir:
3-1 We, your Committee on Natural Resources to which was referred H.B.
3-2 No. 2677, have had the same under consideration, and I am
3-3 instructed to report it back to the Senate with the recommendation
3-4 that it do pass and be printed.
3-5 Sims,
3-6 Chairman
3-7 * * * * *
3-8 WITNESSES
3-9 FOR AGAINST ON
3-10 ___________________________________________________________________
3-11 Name: Steve Blackhurst x
3-12 Representing: Tx Water Commission
3-13 City: Austin
3-14 -------------------------------------------------------------------