By: Parker S.B. No. 83
A BILL TO BE ENTITLED
AN ACT
1-1 relating to utility service and related service provided by or to
1-2 the state, a state agency or institution, or a local government.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (c), Section 3, Public Utility
1-5 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
1-6 amended to read as follows:
1-7 (c) The term "public utility" or "utility," when used in
1-8 this Act, includes any person, corporation, river authority,
1-9 cooperative corporation, or any combination thereof, other than a
1-10 municipal corporation or a water supply or sewer service
1-11 corporation, or their lessees, trustees, and receivers, now or
1-12 hereafter owning or operating for compensation in this state
1-13 equipment or facilities for:
1-14 (1) producing, generating, transmitting, distributing,
1-15 selling, or furnishing electricity ("electric utilities"
1-16 hereinafter) provided, however, that this definition shall not be
1-17 construed to apply to or include a qualifying small power producer
1-18 or qualifying cogenerator, as defined in Sections 3(17)(D) and
1-19 3(18)(C) of the Federal Power Act, as amended (16 U.S.C. Sections
1-20 796(17)(D) and 796(18)(C));
1-21 (2)(A) the conveyance, transmission, or reception of
1-22 communications over a telephone system as a dominant carrier as
1-23 hereinafter defined ("telecommunications utilities" hereinafter);
1-24 provided that no person or corporation not otherwise a public
2-1 utility within the meaning of this Act shall be deemed such solely
2-2 because of the furnishing or furnishing and maintenance of a
2-3 private system or the manufacture, distribution, installation, or
2-4 maintenance of customer premise communications equipment and
2-5 accessories; and provided further that nothing in this Act shall be
2-6 construed to apply to telegraph services, television stations,
2-7 radio stations, community antenna television services, or
2-8 radio-telephone services that may be authorized under the Public
2-9 Mobile Radio Services rules of the Federal Communications
2-10 Commission, other than such radio-telephone services provided by
2-11 wire-line telephone companies under the Domestic Public Land Mobile
2-12 Radio Service and Rural Radio Service rules of the Federal
2-13 Communications Commission; and provided further that interexchange
2-14 telecommunications carriers (including resellers of interexchange
2-15 telecommunications services), specialized communications common
2-16 carriers, other resellers of communications, other communications
2-17 carriers who convey, transmit, or receive communications in whole
2-18 or in part over a telephone system, and providers of operator
2-19 services as defined in Section 18A(a) of this Act (except that
2-20 subscribers to customer-owned pay telephone service shall not be
2-21 deemed to be telecommunications utilities) who are not dominant
2-22 carriers are also telecommunications utilities, but the
2-23 commission's regulatory authority as to them is only as hereinafter
2-24 defined;
2-25 (B) "dominant carrier" when used in this Act
2-26 means (i) a provider of any particular communication service which
2-27 is provided in whole or in part over a telephone system who as to
3-1 such service has sufficient market power in a telecommunications
3-2 market as determined by the commission to enable such provider to
3-3 control prices in a manner adverse to the public interest for such
3-4 service in such market; and (ii) any provider of local exchange
3-5 telephone service within a certificated exchange area as to such
3-6 service. A telecommunications market shall be statewide until
3-7 January 1, 1985. After this date the commission may, if it
3-8 determines that the public interest will be served, establish
3-9 separate markets within the state. Prior to January 1, 1985, the
3-10 commission shall hold such hearings and require such evidence as is
3-11 necessary to carry out the public purpose of this Act and to
3-12 determine the need and effect of establishing separate markets.
3-13 Any such provider determined to be a dominant carrier as to a
3-14 particular telecommunications service in a market shall not be
3-15 presumed to be a dominant carrier of a different telecommunications
3-16 service in that market.
3-17 (C) Access to or use of the state
3-18 telecommunications network by an office, board, department,
3-19 institution, commission, or agency of the state, by a house of the
3-20 legislature, or by a county, municipality, district, or other
3-21 political subdivision or agency does not constitute the resale of
3-22 telecommunications services used by the network or cause the state
3-23 telecommunications network to be considered a carrier or public
3-24 utility under this Act. For the purposes of this paragraph, "state
3-25 telecommunications network" means the intercity consolidated
3-26 telecommunications system authorized by Article 10, State
3-27 Purchasing and General Services Act (Article 601b, Vernon's Texas
4-1 Civil Statutes), and its subsequent amendments.
4-2 (3) The term "public utility" or "utility" shall not
4-3 include any person or corporation not otherwise a public utility
4-4 that furnishes the services or commodity described in any paragraph
4-5 of this subsection only to itself, its employees, or tenants as an
4-6 incident of such employee service or tenancy, when such service or
4-7 commodity is not resold to or used by others. The term "electric
4-8 utility" shall not include any person or corporation not otherwise
4-9 a public utility that owns or operates in this state equipment or
4-10 facilities for producing, generating, transmitting, distributing,
4-11 selling, or furnishing electric energy to an electric utility, if
4-12 the equipment or facilities are used primarily for the production
4-13 and generation of electric energy for consumption by the person or
4-14 corporation. The term "public utility," "utility," or "electric
4-15 utility" shall not include any person or corporation not otherwise
4-16 a public utility that owns or operates in this state a recreational
4-17 vehicle park that provides metered electric service in accordance
4-18 with Article 1446d-2, Revised Statutes. A recreational vehicle
4-19 park owner is considered a public utility if the owner fails to
4-20 comply with Article 1446d-2, Revised Statutes, with regard to the
4-21 metered sale of electricity at the recreational vehicle park.
4-22 SECTION 2. Section 41, Public Utility Regulatory Act
4-23 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
4-24 as follows:
4-25 Sec. 41. The components of invested capital and net income
4-26 shall be determined according to the following rules:
4-27 (a) Invested Capital. Utility rates shall be based
5-1 upon the original cost of property used by and useful to the public
5-2 utility in providing service including construction work in
5-3 progress at cost as recorded on the books of the utility. The
5-4 inclusion of construction work in progress is an exceptional form
5-5 of rate relief to be granted only upon the demonstration by the
5-6 utility that such inclusion is necessary to the financial integrity
5-7 of the utility. Construction work in progress shall not be
5-8 included in the rate base for major projects under construction to
5-9 the extent that such projects have been inefficiently or
5-10 imprudently planned or managed. Original cost shall be the actual
5-11 money cost, or the actual money value of any consideration paid
5-12 other than money, of the property at the time it shall have been
5-13 dedicated to public use, whether by the utility which is the
5-14 present owner or by a predecessor, less depreciation.
5-15 (b) Separations and Allocations. Costs of facilities,
5-16 revenues, expenses, taxes, and reserves shall be separated or
5-17 allocated as prescribed by the regulatory authority.
5-18 (c) Net Income. By "net income" is meant the total
5-19 revenues of the public utility less all reasonable and necessary
5-20 expenses as determined by the regulatory authority. The regulatory
5-21 authority shall determine expenses and revenues in a manner
5-22 consistent with the following:
5-23 (1) Transactions with Affiliated Interests.
5-24 Payment to affiliated interests for costs of any services, or any
5-25 property, right or thing, or for interest expense shall not be
5-26 allowed either as capital cost or as expense except to the extent
5-27 that the regulatory authority shall find such payment to be
6-1 reasonable and necessary for each item or class of items as
6-2 determined by the commission. Any such finding shall include
6-3 specific findings of the reasonableness and necessity of each item
6-4 or class of items allowed and a finding that the price to the
6-5 utility is no higher than prices charged by the supplying affiliate
6-6 to its other affiliates or divisions for the same item or class of
6-7 items, or to unaffiliated persons or corporations. The price paid
6-8 by gas utilities to affiliated interests for natural gas from Outer
6-9 Continental Shelf lands shall be subject to a rebuttable
6-10 presumption that such price is reasonable if the price paid does
6-11 not exceed the price permitted by federal regulation if such gas is
6-12 regulated by any federal agency or if not regulated by a federal
6-13 agency does not exceed the price paid by nonaffiliated parties for
6-14 natural gas from Outer Continental Shelf lands. The burden of
6-15 establishing that such a price paid is not reasonable shall be on
6-16 any party challenging the reasonableness of such price.
6-17 (2) Income Taxes. If the public utility is a
6-18 member of an affiliated group that is eligible to file a
6-19 consolidated income tax return, and if it is advantageous to the
6-20 public utility to do so, income taxes shall be computed as though a
6-21 consolidated return had been so filed and the utility had realized
6-22 its fair share of the savings resulting from the consolidated
6-23 return, unless it is shown to the satisfaction of the regulatory
6-24 authority that it was reasonable to choose not to consolidate
6-25 returns. The amounts of income taxes saved by a consolidated group
6-26 of which a public utility is a member by reason of the elimination
6-27 in the consolidated return of the intercompany profit on purchases
7-1 by the public utility from an affiliate shall be applied to reduce
7-2 the cost of the property or services so purchased. The investment
7-3 tax credit allowed against federal income taxes, to the extent
7-4 retained by the utility, shall be applied as a reduction in the
7-5 rate based contribution of the assets to which such credit applies,
7-6 to the extent and at such rate as allowed by the Internal Revenue
7-7 Code.
7-8 (3) Expenses Disallowed. The regulatory
7-9 authority shall not consider for ratemaking purposes the following
7-10 expenses:
7-11 (A) legislative advocacy expenses, whether
7-12 made directly or indirectly, including but not limited to
7-13 legislative advocacy expenses included in trade association dues;
7-14 (B) payments, except those made under an
7-15 insurance or risk-sharing arrangement executed before the date of
7-16 loss, made to cover costs of an accident, equipment failure, or
7-17 negligence at a utility facility owned by a person or governmental
7-18 body not selling power inside the State of Texas;
7-19 (C) Costs of processing a refund or credit
7-20 under Subsection (e) of Section 43 of this Act; or
7-21 (D) any expenditure found by the
7-22 regulatory authority to be unreasonable, unnecessary, or not in the
7-23 public interest, including but not limited to executive salaries,
7-24 advertising expenses, legal expenses, and civil penalties or fines.
7-25 The regulatory authority may promulgate reasonable rules and
7-26 regulations with respect to the allowance or disallowance of any
7-27 expenses for ratemaking purposes.
8-1 (d) Rates Charged State. The rates that a utility or
8-2 municipally owned utility charges the state or a state agency or
8-3 institution may not include an amount representing a gross receipts
8-4 assessment, regulatory assessment, or other similar expense. A
8-5 regulatory authority may adopt reasonable rules specifying similar
8-6 expenses to be excluded.
8-7 SECTION 3. Section 87B, Public Utility Regulatory Act
8-8 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
8-9 as follows:
8-10 Sec. 87B. (a) A telecommunications utility providing
8-11 dedicated line long distance service (TEXAN) to the state on August
8-12 31, 1987, shall continue to have this type of service available to
8-13 the state on a month-to-month contract basis until September 1,
8-14 1988. The contract will become effective on September 1, 1987, and
8-15 shall be under terms and conditions negotiated by the state and the
8-16 utility in accordance with the amounts appropriated by the General
8-17 Appropriations Act for this purpose. The <State Purchasing and>
8-18 General Services Commission shall perform all actions necessary to
8-19 insure that one or more contracts for telecommunications services
8-20 as provided in Article 10 of the State Purchasing and General
8-21 Services Act (Article 601b, Vernon's Texas Civil Statutes) (TEXAN
8-22 II) are awarded pursuant to the requirements of the State
8-23 Purchasing and General Services Act (Article 601b, Vernon's Texas
8-24 Civil Statutes) by October 15, 1987, and that TEXAN II is
8-25 operational no later than August 31, 1988. Those funds
8-26 appropriated by the General Appropriations Act for extending the
8-27 existing TEXAN contract which are not expended in fiscal year 1988
9-1 shall be transferred to the <State Purchasing and> General Services
9-2 Commission for the sole purpose of offsetting the expenses
9-3 associated with the administration of the TEXAN II network. If,
9-4 during the period of time this section is in effect, any
9-5 supplemental or other telecommunications service is required by the
9-6 state, it may be acquired from vendors other than the utility or
9-7 utilities providing TEXAN or TEXAN II service.
9-8 (b) The state's TEXAN network is not required to subscribe
9-9 to switched access service if the technical requirements of the
9-10 TEXAN network may be satisfied by less expensive service. A
9-11 restriction on the availability or use of the less expensive
9-12 service based on location or distance of calls does not apply to
9-13 the TEXAN network or to a user of the TEXAN network.
9-14 (c) A telecommunications utility or a regulatory authority
9-15 may not prohibit the state's TEXAN network or a state agency or
9-16 institution from sharing TEXAN service. The TEXAN network may
9-17 provide service to a state agency or institution, house of the
9-18 legislature, county, municipality, special district, or other
9-19 political subdivision of the state.
9-20 (d) If the state's TEXAN network or a state agency or
9-21 institution uses a telecommunications utility's switched access
9-22 service, the utility may not charge the state or the state agency
9-23 or institution an amount for the service that exceeds the utility's
9-24 direct costs in providing the service.
9-25 SECTION 4. Article XIII, Public Utility Regulatory Act
9-26 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
9-27 adding Section 88 to read as follows:
10-1 Sec. 88. (a) The commission shall determine the just and
10-2 reasonable rates a local exchange company may charge an educational
10-3 institution in accordance with this section. In any rate case
10-4 before the commission, the commission shall treat an educational
10-5 institution as a separate class in allocating costs and designing
10-6 rates.
10-7 (b) The commission shall establish a flat rate for single
10-8 line local exchange services, including services used to access the
10-9 Texas Education Network, its successor or assigns, or any other
10-10 data or voice network that assists in or is related to education.
10-11 The flat rate shall be set in an amount not greater than the rate
10-12 established for that utility's residential customers in each rate
10-13 group.
10-14 (c) The commission may not establish or allow a local
10-15 exchange company to charge a rate for service using dedicated
10-16 private lines operating at 56 kilobits per second or greater and
10-17 used to access the Texas Education Network, its successor or
10-18 assigns, or any other data or voice network that assists in or is
10-19 related to education, in an amount greater than 2.5 times the rate
10-20 available to the utility's residential customers in each rate
10-21 group.
10-22 (d) The commission may not establish or allow a local
10-23 exchange company to charge a rate for service using dedicated
10-24 private lines operating at 1.5 megabits per second or greater and
10-25 used to access the Texas Education Network, its successor or
10-26 assigns, or any other data or voice network that assists in or is
10-27 related to education, in an amount greater than 7.5 times the rate
11-1 available to the utility's residential customers in each rate
11-2 group.
11-3 (e) The commission may not establish or allow a local
11-4 exchange company to charge a rate for multiline business service,
11-5 PBX service, or central office based PBX-type services in an amount
11-6 greater than 50 percent of the utility's otherwise applicable rate
11-7 for each type of service.
11-8 (f) In establishing a rate under this section, the
11-9 commission shall follow sound ratemaking principles and may not
11-10 establish a rate that is less than the utility's long-run
11-11 incremental costs for providing that service to an educational
11-12 institution.
11-13 (g) In this section, "educational institution" includes:
11-14 (1) an institution of higher education, as defined by
11-15 Section 61.003, Education Code, and its subsequent amendments;
11-16 (2) the Central Education Agency and its successors
11-17 and assigns; and
11-18 (3) the Texas Higher Education Coordinating Board and
11-19 its successors and assigns.
11-20 SECTION 5. Article XIII, Public Utility Regulatory Act
11-21 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
11-22 adding Sections 93C and 93D to read as follows:
11-23 Sec. 93C. A utility or municipally owned utility may not
11-24 bill or otherwise require the state or a state agency or
11-25 institution to pay for service before the service is rendered.
11-26 Sec. 93D. (a) In this section, "utility" includes a
11-27 municipally owned utility.
12-1 (b) The commission shall adopt rules concerning payment of
12-2 utility bills that are consistent with Chapter 82, Acts of the 69th
12-3 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
12-4 Civil Statutes), and its subsequent amendments. However, that Act
12-5 and the rules adopted under this section do not apply to
12-6 telecommunications service authorized by Article 10, State
12-7 Purchasing and General Services Act (Article 601b, Vernon's Texas
12-8 Civil Statutes).
12-9 (c) This Act does not prohibit a utility from entering into
12-10 an agreement with the state or a state agency to establish a
12-11 levelized or average monthly service billing plan. The agreement
12-12 must require reconciliation of the levelized or equalized bills
12-13 quarterly.
12-14 SECTION 6. Subdivision (3), Section 1.03, Gas Utility
12-15 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), is
12-16 amended to read as follows:
12-17 (3) "Gas utility" or "utility" includes any person,
12-18 corporation, river authority, cooperative corporation, or any
12-19 combination thereof, other than a municipal corporation, or their
12-20 lessees, trustees, and receivers, now or hereafter owning or
12-21 operating for compensation in this state equipment or facilities
12-22 for transmitting or distributing combustible hydrocarbon natural or
12-23 synthetic natural gas for sale or resale in a manner which is not
12-24 subject to the jurisdiction of the Federal Energy Regulatory
12-25 Commission under the Natural Gas Act (15 U.S.C.A., Section 717, et
12-26 seq.) provided that the production, gathering, transportation, or
12-27 sale of natural gas or synthetic gas under Section 4, Article 6050,
13-1 Revised Statutes, the distribution or sale of liquefied petroleum
13-2 gas, and the transportation, delivery, or sale of natural gas for
13-3 fuel for irrigation wells or any other direct use in agricultural
13-4 activities is not included. The term "gas utility" or "utility"
13-5 does not include:
13-6 (A) a <any> person or corporation not otherwise
13-7 a gas utility that furnishes gas or gas service only to itself, its
13-8 employees, or tenants as an incident of that employee service or
13-9 tenancy, when the gas or gas service is not resold to or used by
13-10 others;
13-11 (B)<. The term also does not include> a person
13-12 to the extent the person sells natural gas for use as vehicle fuel,
13-13 sells natural gas to a person who later sells the natural gas for
13-14 use as vehicle fuel, or owns or operates equipment or facilities to
13-15 sell or transport the natural gas for ultimate use as vehicle fuel;
13-16 or
13-17 (C) a person or corporation not otherwise a gas
13-18 utility that transports gas on behalf of the state or a state
13-19 agency or institution.
13-20 SECTION 7. Section 4.09, Gas Utility Regulatory Act (Article
13-21 1446e, Vernon's Texas Civil Statutes), is amended by adding
13-22 Subsection (d) to read as follows:
13-23 (d) A utility or municipally owned utility may not refuse to
13-24 provide service to the state or a state agency or institution if
13-25 pipeline capacity is available.
13-26 SECTION 8. The Gas Utility Regulatory Act (Article 1446e,
13-27 Vernon's Texas Civil Statutes) is amended by adding Section 5.061
14-1 to read as follows:
14-2 Sec. 5.061. RATES CHARGED STATE. The rates that a utility
14-3 or municipally owned utility charges the state or a state agency or
14-4 institution may not include an amount representing a gross receipts
14-5 assessment, regulatory assessment, or other similar expense. A
14-6 regulatory authority may adopt reasonable rules specifying similar
14-7 expenses to be excluded.
14-8 SECTION 9. Section 5.02, Gas Utility Regulatory Act (Article
14-9 1446e, Vernon's Texas Civil Statutes), is amended to read as
14-10 follows:
14-11 Sec. 5.02. Just and Reasonable Rates. (a) It shall be the
14-12 duty of the regulatory authority to ensure that every rate made,
14-13 demanded, or received by any gas utility, or by any two or more gas
14-14 utilities jointly, is just and reasonable. Rates may not be
14-15 unreasonably preferential, prejudicial, or discriminatory, but must
14-16 be sufficient, equitable, and consistent in application to each
14-17 class of consumers. For ratemaking purposes, the railroad
14-18 commission may treat two or more municipalities served by a gas
14-19 utility as a single class if the railroad commission considers that
14-20 treatment to be appropriate.
14-21 (b) Rates charged or offered to be charged by a gas utility
14-22 for pipeline-to-pipeline transactions and to transportation,
14-23 industrial, and other similar large volume contract customers, but
14-24 excluding direct sales-for-resale to gas distribution utilities at
14-25 city gates, are considered to be just and reasonable and otherwise
14-26 to comply with this section, and shall be approved by the
14-27 regulatory authority, if:
15-1 (1) neither the gas utility nor the customer had an
15-2 unfair advantage during the negotiations;
15-3 (2) the rates are substantially the same as rates
15-4 between the gas utility and two or more of those customers under
15-5 the same or similar conditions of service; or
15-6 (3) competition does or did exist either with another
15-7 gas utility, another supplier of natural gas, or with a supplier of
15-8 an alternative form of energy.
15-9 (c) Notwithstanding Subsection (b) of this section, the
15-10 railroad commission shall approve gas transportation rates
15-11 established under a contract between a utility or municipally owned
15-12 utility and a state agency or institution. Absent a contract
15-13 between a utility or municipally owned utility and a state agency
15-14 or institution, the railroad commission shall, not later than the
15-15 120th day after the date either party files a request to set rates,
15-16 establish rates not to exceed the cost-based transportation rate.
15-17 The railroad commission shall base its determination of a
15-18 cost-based transportation rate on the entire distribution system of
15-19 the utility or municipally owned utility in this state. The
15-20 railroad commission has exclusive original jurisdiction to
15-21 establish rates under this subsection.
15-22 (d) If a complaint is filed with the railroad commission by
15-23 a transmission pipeline purchaser of gas sold or transported under
15-24 any such pipeline-to-pipeline or transportation rate, then the
15-25 provisions of Subsection (b) shall not apply.
15-26 (e) <(d)> Notwithstanding any provision in this Act to the
15-27 contrary, the regulatory authority may approve administratively any
16-1 decrease in rates proposed by the applicant and agreed upon by all
16-2 parties directly affected, unless the regulatory authority finds
16-3 the proposed decrease not to be in the public interest.
16-4 (f) <(d)> The standard contained in Subsection (b)(1) of
16-5 this section shall not apply to rates charged or offered to be
16-6 charged to an affiliated pipeline utility. Gas purchase costs
16-7 included in city gate rates proposed to be charged for
16-8 sales-for-resale to gas distribution utilities at city gates may be
16-9 reviewed as to reasonableness in city gate rate proceedings even
16-10 though they have been previously approved as rates for other
16-11 parties under Subsection (b) of this section.
16-12 SECTION 10. Article X, Gas Utility Regulatory Act (Article
16-13 1446e, Vernon's Texas Civil Statutes), is amended by adding
16-14 Sections 10.05 and 10.06 to read as follows:
16-15 Sec. 10.05. BILLING FOR SERVICE TO STATE. A utility or
16-16 municipally owned utility may not bill or otherwise require the
16-17 state or a state agency or institution to pay for service before
16-18 the service is rendered.
16-19 Sec. 10.06. TIME OF PAYMENT OF UTILITY BILLS BY STATE.
16-20 (a) In this section, "utility" includes a municipally owned
16-21 utility.
16-22 (b) The commission shall adopt rules concerning payment of
16-23 utility bills that are consistent with Chapter 82, Acts of the 69th
16-24 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
16-25 Civil Statutes), and its subsequent amendments.
16-26 (c) This Act does not prohibit a utility from entering into
16-27 an agreement with the state or a state agency to establish a
17-1 levelized or average monthly service billing plan. The agreement
17-2 must require reconciliation of the levelized or equalized bills
17-3 quarterly.
17-4 SECTION 11. Subchapter E, Chapter 13, Water Code, is amended
17-5 by adding Sections 13.141 and 13.142 to read as follows:
17-6 Sec. 13.141. BILLING FOR SERVICE TO STATE. A utility or
17-7 municipally owned utility may not bill or otherwise require the
17-8 state or a state agency or institution to pay for service before
17-9 the service is rendered.
17-10 Sec. 13.142. TIME OF PAYMENT OF UTILITY BILLS BY STATE.
17-11 (a) In this section, "utility" includes a municipally owned
17-12 utility.
17-13 (b) The commission shall adopt rules concerning payment of
17-14 utility bills that are consistent with Chapter 82, Acts of the 69th
17-15 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
17-16 Civil Statutes), and its subsequent amendments.
17-17 (c) This Act does not prohibit a utility from entering into
17-18 an agreement with the state or a state agency to establish a
17-19 levelized or average monthly service billing plan. The agreement
17-20 must require reconciliation of the levelized or equalized bills
17-21 quarterly.
17-22 SECTION 12. Subchapter F, Chapter 13, Water Code, is amended
17-23 by adding Section 13.1861 to read as follows:
17-24 Sec. 13.1861. RATES CHARGED STATE. The rates that a utility
17-25 or municipally owned utility charges the state or a state agency or
17-26 institution may not include an amount representing a gross receipts
17-27 assessment, regulatory assessment, or other similar expense. A
18-1 regulatory authority may adopt reasonable rules specifying similar
18-2 expenses to be excluded.
18-3 SECTION 13. Section 403.056, Government Code, is amended by
18-4 adding Subsection (e) to read as follows:
18-5 (e) Notwithstanding Subsection (c), the comptroller may
18-6 deliver a warrant for payment of a bill for electric, telephone,
18-7 gas, or water service provided to the state or a state agency
18-8 directly to the utility that provided the service. The comptroller
18-9 may adopt rules to carry out this subsection, consistent with
18-10 Chapter 82, Acts of the 69th Legislature, Regular Session, 1985
18-11 (Article 601f, Vernon's Texas Civil Statutes).
18-12 SECTION 14. Subsections (b) and (c), Section 10.06, State
18-13 Purchasing and General Services Act (Article 601b, Vernon's Texas
18-14 Civil Statutes), are amended to read as follows:
18-15 (b) The comptroller of public accounts shall establish in
18-16 the state treasury a revolving fund account for the administration
18-17 of this article. The account shall be used as a depository for
18-18 funds received from entities served <and as a source of funds to
18-19 purchase, lease, or otherwise acquire services, supplies, and
18-20 equipment, and to pay salaries, wages, and other costs directly
18-21 attributable to the provisions and operations of the system>.
18-22 (c) In order to provide an adequate cash flow as may be
18-23 necessary for purposes of this article, using state agencies and
18-24 other entities, upon proper notification, shall make monthly
18-25 payments into the telecommunications revolving fund account from
18-26 appropriated or other available funds. The legislature may
18-27 appropriate funds for the operation of the system directly to the
19-1 commission. In that case the revolving fund account shall be used
19-2 to receive funds due from local government entities and other
19-3 agencies to the extent that their funds are not subject to
19-4 legislative appropriation. The commission shall maintain in the
19-5 revolving fund account sufficient amounts to pay the bills of the
19-6 consolidated telecommunications systems and the centralized Capitol
19-7 Complex telephone system. The commission shall certify amounts
19-8 that exceed this amount to the comptroller, and the comptroller
19-9 shall transfer the excess amounts to the credit of the statewide
19-10 network applications account established by Section 22A,
19-11 Information Resources Management Act (Article 4413(32j), Revised
19-12 Statutes), and its subsequent amendments.
19-13 SECTION 15. Section 1, Chapter 82, Acts of the 69th
19-14 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
19-15 Civil Statutes), is amended to read as follows:
19-16 Sec. 1. Definitions. In this Act:
19-17 (1) "State agency" means:
19-18 (A) a board, commission, department, office, or
19-19 other agency in the executive branch of state government that was
19-20 created under the constitution or a statute of the state, including
19-21 an institution of higher education as defined by Section 61.003,
19-22 Education Code, and a river authority;
19-23 (B) the legislature or a legislative agency; or
19-24 (C) the supreme court, the court of criminal
19-25 appeals, a court of appeals, a state judicial agency, or the State
19-26 Bar of Texas.
19-27 (2) "Political subdivision" means:
20-1 (A) a county;
20-2 (B) an incorporated city or town;
20-3 (C) a public school district; or
20-4 (D) a special purpose district or authority.
20-5 (3) "Governmental entity" means a state agency or a
20-6 political subdivision of this state.
20-7 (4) "Payment" means money owed to a vendor from whom a
20-8 governmental entity acquires property or services.
20-9 (5) "Commission" means the State Purchasing and
20-10 General Services Commission.
20-11 (6) "Vendor" means a person, corporation, association,
20-12 partnership, or other legal entity that supplies goods and/or
20-13 services to a governmental entity.
20-14 (7) "Services" includes electric, telephone, gas, and
20-15 water utility service.
20-16 (8) "Subcontractor" means a person who contracts with
20-17 a vendor to work, or has contracted with a vendor to contribute
20-18 toward the completion of work done, for a governmental entity.
20-19 SECTION 16. Section 7, Chapter 82, Acts of the 69th
20-20 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
20-21 Civil Statutes), is amended by adding Subsection (c) to read as
20-22 follows:
20-23 (c) Notwithstanding Subsection (a) of this section, this Act
20-24 applies to payments made by a state agency for electric, telephone,
20-25 gas, and water utility service regardless of any contractual
20-26 provision.
20-27 SECTION 17. The Information Resources Management Act
21-1 (Article 4413(32j), Revised Statutes) is amended by adding Section
21-2 22A to read as follows:
21-3 Sec. 22A. STATEWIDE NETWORK APPLICATIONS ACCOUNT. The
21-4 statewide network applications account is established in the
21-5 general revenue fund. Money credited to the account is from
21-6 transfers of excess balances in the telecommunications revolving
21-7 fund account as provided by Section 10.06(c), State Purchasing and
21-8 General Services Act (Article 601b, Vernon's Texas Civil Statutes),
21-9 and its subsequent amendments. Amounts credited to the statewide
21-10 network applications account may be appropriated only for the
21-11 purchase, improvement, or maintenance of information resources,
21-12 information resources technologies or applications, or related
21-13 services and other items for use by a network of state agencies
21-14 which may include agencies in the legislative branch of government.
21-15 SECTION 18. Section 1, Article 6050, Revised Statutes, is
21-16 amended to read as follows:
21-17 Sec. 1. In this article, "person" means an individual,
21-18 company, or private corporation, or their lessees, trustees, and
21-19 receivers. In Articles 6050-6066, Revised Civil Statutes of Texas,
21-20 1925, as amended, "gas utility," "public utility," or "utility"
21-21 means a person owning, managing, operating, leasing or controlling
21-22 within this State any pipe lines, plant, property, equipment,
21-23 facility, franchise, license, or permit for either one or more of
21-24 the following kinds of business:
21-25 (a) Transporting, conveying, distributing or
21-26 delivering natural gas: (1) for public use or service for
21-27 compensation; (2) for sale to municipalities or persons or
22-1 companies, in those cases referred to in Subsection (c) hereof,
22-2 engaged in distributing or selling natural gas to the public; (3)
22-3 for sale or delivery of natural gas to any person operating under
22-4 franchise or a contract with any municipality or other legal
22-5 subdivision of this State; or, (4) for sale or delivery of natural
22-6 gas to the public for domestic or other use.
22-7 (b) Owning or operating or managing a pipe line for
22-8 the transportation or carriage of natural gas, whether for public
22-9 hire or not, if any part of the right of way for said line has been
22-10 acquired, or is hereafter acquired by the exercise of the right of
22-11 eminent domain.
22-12 (c) Producing or purchasing natural gas and
22-13 transporting or causing the same to be transported by pipe lines to
22-14 or near the limits of any municipality in which said gas is
22-15 received and distributed or sold to the public by another public
22-16 utility or by said municipality, in all cases where such business
22-17 is in fact the only or practically exclusive agency of supply of
22-18 natural gas to such utility or municipality, is hereby declared to
22-19 be virtual monopoly and a business and calling affected with a
22-20 public interest, and the said business and property employed
22-21 therein within this State shall be subject to the provisions of
22-22 this law and to the jurisdiction and regulation of the Commission
22-23 as a gas utility.
22-24 (d) No person shall be deemed to be a "gas utility,"
22-25 "public utility," or "utility" solely because such person is an
22-26 affiliate of such an entity. The term "gas utility," "public
22-27 utility," or "utility" does not include a person not otherwise a
23-1 gas utility that transports gas on behalf of the state or a state
23-2 agency or institution.
23-3 (e) Every such gas utility is hereby declared to be
23-4 affected with a public interest and subject to the jurisdiction,
23-5 control and regulation of the Commission as provided herein.
23-6 SECTION 19. Article 6050, Revised Statutes, is amended by
23-7 adding Section 6 to read as follows:
23-8 Sec. 6. (a) A gas utility may not refuse to provide service
23-9 to the state or a state agency or institution if pipeline capacity
23-10 is available.
23-11 (b) In this section, "gas utility" includes a municipally
23-12 owned utility as that term is defined by Section 1.03, Gas Utility
23-13 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), and
23-14 its subsequent amendments.
23-15 SECTION 20. Section 1, Article 6053, Revised Statutes, is
23-16 amended to read as follows:
23-17 Sec. 1. (a) The Commission after due notice shall fix and
23-18 establish and enforce the adequate and reasonable price of gas and
23-19 fair and reasonable rates of charges and regulations for
23-20 transporting, producing, distributing, buying, selling, and
23-21 delivering gas by such pipe lines in this State; and shall
23-22 establish fair and equitable rules and regulations for the full
23-23 control and supervision of said gas pipe lines and all their
23-24 holdings pertaining to the gas business in all their relations to
23-25 the public, as the Commission may from time to time deem proper;
23-26 and establish a fair and equitable division of the proceeds of the
23-27 sale of gas between the companies transporting or producing the gas
24-1 and the companies distributing or selling it; and prescribe and
24-2 enforce rules and regulations for the government and control of
24-3 such pipe lines in respect to their gas pipe lines and producing,
24-4 receiving, transporting, and distributing facilities; and regulate
24-5 and apportion the supply of gas between towns, cities, and
24-6 corporations, and when the supply of gas controlled by any gas pipe
24-7 line shall be inadequate, the Commission shall prescribe fair and
24-8 reasonable rules and regulations requiring such gas pipe lines to
24-9 augment their supply of gas, when in the judgment of the Commission
24-10 it is practicable to do so; and it shall exercise its power,
24-11 whether upon its own motion or upon petition by any person,
24-12 corporation, municipal corporation, county, or Commissioners
24-13 precinct showing a substantial interest in the subject, or upon
24-14 petition of the Attorney General, or of any County or District
24-15 Attorney in any county wherein such business or any part thereof
24-16 may be carried on.
24-17 (b) Notwithstanding Subsection (a) of this section, the
24-18 Commission shall approve rates established under a contract between
24-19 a gas utility or gas supplier and a State agency or institution.
24-20 Absent a contract between a gas utility or gas supplier and a State
24-21 agency or institution, the Commission shall, not later than the
24-22 120th day after the date either party files a request to set rates,
24-23 establish rates not to exceed the gas utility's or gas supplier's
24-24 cost-based transportation rate. The Commission shall base its
24-25 determination of a cost-based transportation rate on the entire
24-26 distribution system of the gas utility or gas supplier in this
24-27 State. The Commission has exclusive original jurisdiction to
25-1 establish rates under this subsection. In this subsection, the
25-2 term "gas utility" or "gas supplier" includes a municipally owned
25-3 utility as that term is defined by Section 1.03, Gas Utility
25-4 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), and
25-5 its subsequent amendments.
25-6 (c) If any transportation, industrial, or other similar
25-7 large-volume contract customer who is an end-use customer of a gas
25-8 utility (i) reduces or ceases purchases of natural gas or of
25-9 natural gas service from the gas utility and (ii) purchases natural
25-10 gas or natural gas service from another supplier or purchases an
25-11 alternate form of energy, then the gas utility thereafter shall
25-12 have no obligation to serve or to maintain the gas supply or the
25-13 physical capacity to serve such customer, except to the extent that
25-14 such customer continues to purchase natural gas or natural gas
25-15 service of any class from the gas utility or to the extent the gas
25-16 utility has a written contract to provide natural gas or natural
25-17 gas service of any class to the customer. Nothing herein shall
25-18 prevent the Railroad Commission from requiring that utilities
25-19 comply with all orders of the Railroad Commission in apportioning
25-20 gas under curtailment plans and orders.
25-21 SECTION 21. Title 110A, Revised Statutes, is amended by
25-22 adding Article 6252-5g to read as follows:
25-23 Art. 6252-5g. UTILITY BILLING AUDIT
25-24 Sec. 1. Except as provided by Section 3 of this article,
25-25 every four years each state agency and institution of higher
25-26 education shall perform an audit of its electric, telephone, gas,
25-27 and water utility billing during the preceding four years or the
26-1 maximum recovery period. The agency or institution may contract
26-2 with a private consultant in the performance of the audit.
26-3 Sec. 2. The audit must provide information to allow the
26-4 agency or institution to ensure that it is properly classified and
26-5 subscribed and that the amounts paid for service are proper.
26-6 Sec. 3. Before the agency or institution conducts an audit
26-7 it shall analyze the potential benefit of the audit. The agency or
26-8 institution is not required to perform the audit if it determines
26-9 that the savings and refunds provided by the audit will not exceed
26-10 its cost.
26-11 Sec. 4. The audit must be funded from refunds received as a
26-12 result of the audit. The agency or institution shall take
26-13 appropriate action to recover any refund due. The attorney general
26-14 may assist in recovering a refund. The amount of any refunds
26-15 received shall be deposited in the state treasury to the credit of
26-16 the general revenue fund. The costs of the audit shall be paid
26-17 from amounts appropriated from those funds for that purpose.
26-18 Sec. 5. During January and June of each year during which an
26-19 audit is being conducted, the agency or institution shall submit to
26-20 the governor, Legislative Budget Board, and comptroller a report on
26-21 the status of the audit. The report must include a summary of the
26-22 costs of the audit, current audit activity, a schedule of future
26-23 activity, audit recommendations and results, pending refunds, and
26-24 recovered refunds. Not later than the 30th day after the date an
26-25 audit is completed, the agency or institution shall submit to the
26-26 governor, Legislative Budget Board, and comptroller a report on the
26-27 savings resulting from the audit, including their source, and the
27-1 costs of the audit.
27-2 SECTION 22. Subchapter B, Chapter 23, Education Code, is
27-3 amended by adding Section 23.34 to read as follows:
27-4 Sec. 23.34. UTILITY BILLING AUDIT. (a) Except as provided
27-5 by Subsection (c) of this section, every four years each school
27-6 district shall perform an audit of its electric, telephone, gas,
27-7 and water utility billing during the preceding four years. The
27-8 school district may contract with a private consultant in the
27-9 performance of the audit.
27-10 (b) The audit must provide information to allow the school
27-11 district to ensure that it is properly classified and subscribed
27-12 and that the amounts paid for service are proper.
27-13 (c) Before the school district conducts an audit it shall
27-14 analyze the potential benefit of the audit. The school district is
27-15 not required to perform the audit if it determines that the savings
27-16 and refunds provided by the audit will not exceed its cost.
27-17 (d) The audit must be funded from refunds received as a
27-18 result of the audit. The school district shall take appropriate
27-19 action to recover any refund due. The attorney general may assist
27-20 in recovering a refund.
27-21 (e) During January and June of each year during which an
27-22 audit is being conducted, the school district shall submit to the
27-23 State Board of Education a report on the status of the audit. The
27-24 report must include a summary of the costs of the audit, current
27-25 audit activity, a schedule of future activity, audit
27-26 recommendations and results, pending refunds, and recovered
27-27 refunds. The State Board of Education shall submit a summary of
28-1 the report to the governor, Legislative Budget Board, and
28-2 comptroller. Not later than the 30th day after the date an audit
28-3 is completed, the school district shall submit to the State Board
28-4 of Education a report on the savings resulting from the audit,
28-5 including their source, and the costs of the audit. The State
28-6 Board of Education shall submit a copy of this report to the
28-7 governor, Legislative Budget Board, and comptroller.
28-8 SECTION 23. The attorney general shall coordinate with the
28-9 Public Utility Commission of Texas and the Railroad Commission of
28-10 Texas in the development and maintenance of systems to publicly
28-11 monitor and verify rates of the utilities regulated by each of
28-12 those commissions. The systems must provide for easy acquisition
28-13 of information in a format that is easy to understand. Before
28-14 February 1, 1995, the attorney general and each commission shall
28-15 submit a report of their activities under this section to the
28-16 speaker of the house of representatives and lieutenant governor.
28-17 SECTION 24. Immediately after the effective date of this
28-18 Act, the Public Utility Commission of Texas shall initiate rate
28-19 proceedings under Section 42, Public Utility Regulatory Act
28-20 (Article 1446c, Vernon's Texas Civil Statutes), to set just and
28-21 reasonable rates in accordance with Section 88, Public Utility
28-22 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), as
28-23 added by Section 4 of this Act. The commission shall provide that
28-24 the rates take effect September 1, 1993, regardless of the date on
28-25 which a final order is issued.
28-26 SECTION 25. (a) Except as provided by Subsection (b) of
28-27 this section, this Act takes effect September 1, 1993.
29-1 (b) Sections 4 and 24 of this Act take effect immediately.
29-2 SECTION 26. The importance of this legislation and the
29-3 crowded condition of the calendars in both houses create an
29-4 emergency and an imperative public necessity that the
29-5 constitutional rule requiring bills to be read on three several
29-6 days in each house be suspended, and this rule is hereby suspended,
29-7 and that this Act take effect and be in force according to its
29-8 terms, and it is so enacted.