1-1 By: Parker S.B. No. 83
1-2 (In the Senate - Filed February 17, 1993; February 17, 1993,
1-3 read first time and referred to Committee on Economic Development;
1-4 March 23, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 3; March 23, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 83 By: Rosson
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to utility service and related service provided by or to
1-24 the state, a state agency or institution, or a local government.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Subsection (c), Section 3, Public Utility
1-27 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
1-28 amended to read as follows:
1-29 (c) The term "public utility" or "utility," when used in
1-30 this Act, includes any person, corporation, river authority,
1-31 cooperative corporation, or any combination thereof, other than a
1-32 municipal corporation or a water supply or sewer service
1-33 corporation, or their lessees, trustees, and receivers, now or
1-34 hereafter owning or operating for compensation in this state
1-35 equipment or facilities for:
1-36 (1) producing, generating, transmitting, distributing,
1-37 selling, or furnishing electricity ("electric utilities"
1-38 hereinafter) provided, however, that this definition shall not be
1-39 construed to apply to or include a qualifying small power producer
1-40 or qualifying cogenerator, as defined in Sections 3(17)(D) and
1-41 3(18)(C) of the Federal Power Act, as amended (16 U.S.C. Sections
1-42 796(17)(D) and 796(18)(C));
1-43 (2)(A) the conveyance, transmission, or reception of
1-44 communications over a telephone system as a dominant carrier as
1-45 hereinafter defined ("telecommunications utilities" hereinafter);
1-46 provided that no person or corporation not otherwise a public
1-47 utility within the meaning of this Act shall be deemed such solely
1-48 because of the furnishing or furnishing and maintenance of a
1-49 private system or the manufacture, distribution, installation, or
1-50 maintenance of customer premise communications equipment and
1-51 accessories; and provided further that nothing in this Act shall be
1-52 construed to apply to telegraph services, television stations,
1-53 radio stations, community antenna television services, or
1-54 radio-telephone services that may be authorized under the Public
1-55 Mobile Radio Services rules of the Federal Communications
1-56 Commission, other than such radio-telephone services provided by
1-57 wire-line telephone companies under the Domestic Public Land Mobile
1-58 Radio Service and Rural Radio Service rules of the Federal
1-59 Communications Commission; and provided further that interexchange
1-60 telecommunications carriers (including resellers of interexchange
1-61 telecommunications services), specialized communications common
1-62 carriers, other resellers of communications, other communications
1-63 carriers who convey, transmit, or receive communications in whole
1-64 or in part over a telephone system, and providers of operator
1-65 services as defined in Section 18A(a) of this Act (except that
1-66 subscribers to customer-owned pay telephone service shall not be
1-67 deemed to be telecommunications utilities) who are not dominant
1-68 carriers are also telecommunications utilities, but the
2-1 commission's regulatory authority as to them is only as hereinafter
2-2 defined;
2-3 (B) "dominant carrier" when used in this Act
2-4 means (i) a provider of any particular communication service which
2-5 is provided in whole or in part over a telephone system who as to
2-6 such service has sufficient market power in a telecommunications
2-7 market as determined by the commission to enable such provider to
2-8 control prices in a manner adverse to the public interest for such
2-9 service in such market; and (ii) any provider of local exchange
2-10 telephone service within a certificated exchange area as to such
2-11 service. A telecommunications market shall be statewide until
2-12 January 1, 1985. After this date the commission may, if it
2-13 determines that the public interest will be served, establish
2-14 separate markets within the state. Prior to January 1, 1985, the
2-15 commission shall hold such hearings and require such evidence as is
2-16 necessary to carry out the public purpose of this Act and to
2-17 determine the need and effect of establishing separate markets.
2-18 Any such provider determined to be a dominant carrier as to a
2-19 particular telecommunications service in a market shall not be
2-20 presumed to be a dominant carrier of a different telecommunications
2-21 service in that market.
2-22 (C) Access to or use of the state
2-23 telecommunications network by an office, board, department,
2-24 institution, commission, or agency of the state, by a house of the
2-25 legislature, or by a county, municipality, district, or other
2-26 political subdivision or agency does not constitute the resale of
2-27 telecommunications services used by the network or cause the state
2-28 telecommunications network to be considered a carrier or public
2-29 utility under this Act. For the purposes of this paragraph, "state
2-30 telecommunications network" means the intercity consolidated
2-31 telecommunications system authorized by Article 10, State
2-32 Purchasing and General Services Act (Article 601b, Vernon's Texas
2-33 Civil Statutes), and its subsequent amendments.
2-34 (3) The term "public utility" or "utility" shall not
2-35 include any person or corporation not otherwise a public utility
2-36 that furnishes the services or commodity described in any paragraph
2-37 of this subsection only to itself, its employees, or tenants as an
2-38 incident of such employee service or tenancy, when such service or
2-39 commodity is not resold to or used by others. The term "electric
2-40 utility" shall not include any person or corporation not otherwise
2-41 a public utility that owns or operates in this state equipment or
2-42 facilities for producing, generating, transmitting, distributing,
2-43 selling, or furnishing electric energy to an electric utility, if
2-44 the equipment or facilities are used primarily for the production
2-45 and generation of electric energy for consumption by the person or
2-46 corporation. The term "public utility," "utility," or "electric
2-47 utility" shall not include any person or corporation not otherwise
2-48 a public utility that owns or operates in this state a recreational
2-49 vehicle park that provides metered electric service in accordance
2-50 with Article 1446d-2, Revised Statutes. A recreational vehicle
2-51 park owner is considered a public utility if the owner fails to
2-52 comply with Article 1446d-2, Revised Statutes, with regard to the
2-53 metered sale of electricity at the recreational vehicle park.
2-54 SECTION 2. Section 41, Public Utility Regulatory Act
2-55 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
2-56 as follows:
2-57 Sec. 41. The components of invested capital and net income
2-58 shall be determined according to the following rules:
2-59 (a) Invested Capital. Utility rates shall be based
2-60 upon the original cost of property used by and useful to the public
2-61 utility in providing service including construction work in
2-62 progress at cost as recorded on the books of the utility. The
2-63 inclusion of construction work in progress is an exceptional form
2-64 of rate relief to be granted only upon the demonstration by the
2-65 utility that such inclusion is necessary to the financial integrity
2-66 of the utility. Construction work in progress shall not be
2-67 included in the rate base for major projects under construction to
2-68 the extent that such projects have been inefficiently or
2-69 imprudently planned or managed. Original cost shall be the actual
2-70 money cost, or the actual money value of any consideration paid
3-1 other than money, of the property at the time it shall have been
3-2 dedicated to public use, whether by the utility which is the
3-3 present owner or by a predecessor, less depreciation.
3-4 (b) Separations and Allocations. Costs of facilities,
3-5 revenues, expenses, taxes, and reserves shall be separated or
3-6 allocated as prescribed by the regulatory authority.
3-7 (c) Net Income. By "net income" is meant the total
3-8 revenues of the public utility less all reasonable and necessary
3-9 expenses as determined by the regulatory authority. The regulatory
3-10 authority shall determine expenses and revenues in a manner
3-11 consistent with the following:
3-12 (1) Transactions with Affiliated Interests.
3-13 Payment to affiliated interests for costs of any services, or any
3-14 property, right or thing, or for interest expense shall not be
3-15 allowed either as capital cost or as expense except to the extent
3-16 that the regulatory authority shall find such payment to be
3-17 reasonable and necessary for each item or class of items as
3-18 determined by the commission. Any such finding shall include
3-19 specific findings of the reasonableness and necessity of each item
3-20 or class of items allowed and a finding that the price to the
3-21 utility is no higher than prices charged by the supplying affiliate
3-22 to its other affiliates or divisions for the same item or class of
3-23 items, or to unaffiliated persons or corporations. The price paid
3-24 by gas utilities to affiliated interests for natural gas from Outer
3-25 Continental Shelf lands shall be subject to a rebuttable
3-26 presumption that such price is reasonable if the price paid does
3-27 not exceed the price permitted by federal regulation if such gas is
3-28 regulated by any federal agency or if not regulated by a federal
3-29 agency does not exceed the price paid by nonaffiliated parties for
3-30 natural gas from Outer Continental Shelf lands. The burden of
3-31 establishing that such a price paid is not reasonable shall be on
3-32 any party challenging the reasonableness of such price.
3-33 (2) Income Taxes. If the public utility is a
3-34 member of an affiliated group that is eligible to file a
3-35 consolidated income tax return, and if it is advantageous to the
3-36 public utility to do so, income taxes shall be computed as though a
3-37 consolidated return had been so filed and the utility had realized
3-38 its fair share of the savings resulting from the consolidated
3-39 return, unless it is shown to the satisfaction of the regulatory
3-40 authority that it was reasonable to choose not to consolidate
3-41 returns. The amounts of income taxes saved by a consolidated group
3-42 of which a public utility is a member by reason of the elimination
3-43 in the consolidated return of the intercompany profit on purchases
3-44 by the public utility from an affiliate shall be applied to reduce
3-45 the cost of the property or services so purchased. The investment
3-46 tax credit allowed against federal income taxes, to the extent
3-47 retained by the utility, shall be applied as a reduction in the
3-48 rate based contribution of the assets to which such credit applies,
3-49 to the extent and at such rate as allowed by the Internal Revenue
3-50 Code.
3-51 (3) Expenses Disallowed. The regulatory
3-52 authority shall not consider for ratemaking purposes the following
3-53 expenses:
3-54 (A) legislative advocacy expenses, whether
3-55 made directly or indirectly, including but not limited to
3-56 legislative advocacy expenses included in trade association dues;
3-57 (B) payments, except those made under an
3-58 insurance or risk-sharing arrangement executed before the date of
3-59 loss, made to cover costs of an accident, equipment failure, or
3-60 negligence at a utility facility owned by a person or governmental
3-61 body not selling power inside the State of Texas;
3-62 (C) Costs of processing a refund or credit
3-63 under Subsection (e) of Section 43 of this Act; or
3-64 (D) any expenditure found by the
3-65 regulatory authority to be unreasonable, unnecessary, or not in the
3-66 public interest, including but not limited to executive salaries,
3-67 advertising expenses, legal expenses, and civil penalties or fines.
3-68 The regulatory authority may promulgate reasonable rules and
3-69 regulations with respect to the allowance or disallowance of any
3-70 expenses for ratemaking purposes.
4-1 (d) Rates Charged State. The rates that a utility or
4-2 municipally owned utility charges the state or a state agency or
4-3 institution may not include an amount representing a gross receipts
4-4 assessment, regulatory assessment, or other similar expense. A
4-5 regulatory authority may adopt reasonable rules specifying similar
4-6 expenses to be excluded.
4-7 SECTION 3. Section 87B, Public Utility Regulatory Act
4-8 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
4-9 as follows:
4-10 Sec. 87B. (a) A telecommunications utility providing
4-11 dedicated line long distance service (TEXAN) to the state on August
4-12 31, 1987, shall continue to have this type of service available to
4-13 the state on a month-to-month contract basis until September 1,
4-14 1988. The contract will become effective on September 1, 1987, and
4-15 shall be under terms and conditions negotiated by the state and the
4-16 utility in accordance with the amounts appropriated by the General
4-17 Appropriations Act for this purpose. The <State Purchasing and>
4-18 General Services Commission shall perform all actions necessary to
4-19 insure that one or more contracts for telecommunications services
4-20 as provided in Article 10 of the State Purchasing and General
4-21 Services Act (Article 601b, Vernon's Texas Civil Statutes) (TEXAN
4-22 II) are awarded pursuant to the requirements of the State
4-23 Purchasing and General Services Act (Article 601b, Vernon's Texas
4-24 Civil Statutes) by October 15, 1987, and that TEXAN II is
4-25 operational no later than August 31, 1988. Those funds
4-26 appropriated by the General Appropriations Act for extending the
4-27 existing TEXAN contract which are not expended in fiscal year 1988
4-28 shall be transferred to the <State Purchasing and> General Services
4-29 Commission for the sole purpose of offsetting the expenses
4-30 associated with the administration of the TEXAN II network. If,
4-31 during the period of time this section is in effect, any
4-32 supplemental or other telecommunications service is required by the
4-33 state, it may be acquired from vendors other than the utility or
4-34 utilities providing TEXAN or TEXAN II service.
4-35 (b) The state's TEXAN network is not required to subscribe
4-36 to switched access service if the technical requirements of the
4-37 TEXAN network may be satisfied by less expensive service. A
4-38 restriction on the availability or use of the less expensive
4-39 service based on location or distance of calls does not apply to
4-40 the TEXAN network or to a user of the TEXAN network.
4-41 (c) A telecommunications utility or a regulatory authority
4-42 may not prohibit the state's TEXAN network or a state agency or
4-43 institution from sharing TEXAN service. The TEXAN network may
4-44 provide service to a state agency or institution, house of the
4-45 legislature, county, municipality, special district, or other
4-46 political subdivision of the state.
4-47 (d) If the state's TEXAN network or a state agency or
4-48 institution uses a telecommunications utility's switched access
4-49 service, the utility may not charge the state or the state agency
4-50 or institution an amount for the service that exceeds the utility's
4-51 direct costs in providing the service.
4-52 SECTION 4. Article XIII, Public Utility Regulatory Act
4-53 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
4-54 adding Section 88 to read as follows:
4-55 Sec. 88. (a) The commission shall determine the just and
4-56 reasonable rates a local exchange company may charge an educational
4-57 institution in accordance with this section. In any rate case
4-58 before the commission, the commission shall treat an educational
4-59 institution as a separate class in allocating costs and designing
4-60 rates.
4-61 (b) The commission shall establish a flat rate for single
4-62 line local exchange services, including services used to access the
4-63 Texas Education Network, its successor or assigns, or any other
4-64 data or voice network that assists in or is related to education.
4-65 The flat rate shall be set in an amount not greater than the rate
4-66 established for that utility's residential customers in each rate
4-67 group.
4-68 (c) The commission may not establish or allow a local
4-69 exchange company to charge a rate for service using dedicated
4-70 private lines operating at 56 kilobits per second or greater and
5-1 used to access the Texas Education Network, its successor or
5-2 assigns, or any other data or voice network that assists in or is
5-3 related to education, in an amount greater than 2.5 times the rate
5-4 available to the utility's residential customers in each rate
5-5 group.
5-6 (d) The commission may not establish or allow a local
5-7 exchange company to charge a rate for service using dedicated
5-8 private lines operating at 1.5 megabits per second or greater and
5-9 used to access the Texas Education Network, its successor or
5-10 assigns, or any other data or voice network that assists in or is
5-11 related to education, in an amount greater than 7.5 times the rate
5-12 available to the utility's residential customers in each rate
5-13 group.
5-14 (e) The commission may not establish or allow a local
5-15 exchange company to charge a rate for multiline business service,
5-16 PBX service, or central office based PBX-type services in an amount
5-17 greater than 50 percent of the utility's otherwise applicable rate
5-18 for each type of service.
5-19 (f) In establishing a rate under this section, the
5-20 commission shall follow sound ratemaking principles and may not
5-21 establish a rate that is less than the utility's long-run
5-22 incremental costs for providing that service to an educational
5-23 institution.
5-24 (g) In this section, "educational institution" includes:
5-25 (1) an institution of higher education, as defined by
5-26 Section 61.003, Education Code, and its subsequent amendments;
5-27 (2) the Central Education Agency and its successors
5-28 and assigns; and
5-29 (3) the Texas Higher Education Coordinating Board and
5-30 its successors and assigns.
5-31 SECTION 5. Article XIII, Public Utility Regulatory Act
5-32 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
5-33 adding Sections 93C and 93D to read as follows:
5-34 Sec. 93C. A utility or municipally owned utility may not
5-35 bill or otherwise require the state or a state agency or
5-36 institution to pay for service before the service is rendered.
5-37 Sec. 93D. (a) In this section, "utility" includes a
5-38 municipally owned utility.
5-39 (b) The commission shall adopt rules concerning payment of
5-40 utility bills that are consistent with Chapter 82, Acts of the 69th
5-41 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
5-42 Civil Statutes), and its subsequent amendments. However, that Act
5-43 and the rules adopted under this section do not apply to
5-44 telecommunications service authorized by Article 10, State
5-45 Purchasing and General Services Act (Article 601b, Vernon's Texas
5-46 Civil Statutes).
5-47 (c) This Act does not prohibit a utility from entering into
5-48 an agreement with the state or a state agency to establish a
5-49 levelized or average monthly service billing plan. The agreement
5-50 must require reconciliation of the levelized or equalized bills
5-51 quarterly.
5-52 SECTION 6. Subdivision (3), Section 1.03, Gas Utility
5-53 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), is
5-54 amended to read as follows:
5-55 (3) "Gas utility" or "utility" includes any person,
5-56 corporation, river authority, cooperative corporation, or any
5-57 combination thereof, other than a municipal corporation, or their
5-58 lessees, trustees, and receivers, now or hereafter owning or
5-59 operating for compensation in this state equipment or facilities
5-60 for transmitting or distributing combustible hydrocarbon natural or
5-61 synthetic natural gas for sale or resale in a manner which is not
5-62 subject to the jurisdiction of the Federal Energy Regulatory
5-63 Commission under the Natural Gas Act (15 U.S.C.A., Section 717, et
5-64 seq.) provided that the production, gathering, transportation, or
5-65 sale of natural gas or synthetic gas under Section 4, Article 6050,
5-66 Revised Statutes, the distribution or sale of liquefied petroleum
5-67 gas, and the transportation, delivery, or sale of natural gas for
5-68 fuel for irrigation wells or any other direct use in agricultural
5-69 activities is not included. The term "gas utility" or "utility"
5-70 does not include:
6-1 (A) a <any> person or corporation not otherwise
6-2 a gas utility that furnishes gas or gas service only to itself, its
6-3 employees, or tenants as an incident of that employee service or
6-4 tenancy, when the gas or gas service is not resold to or used by
6-5 others;
6-6 (B)<. The term also does not include> a person
6-7 to the extent the person sells natural gas for use as vehicle fuel,
6-8 sells natural gas to a person who later sells the natural gas for
6-9 use as vehicle fuel, or owns or operates equipment or facilities to
6-10 sell or transport the natural gas for ultimate use as vehicle fuel;
6-11 or
6-12 (C) a person or corporation not otherwise a gas
6-13 utility that transports gas on behalf of the state or a state
6-14 agency or institution.
6-15 SECTION 7. Section 4.09, Gas Utility Regulatory Act (Article
6-16 1446e, Vernon's Texas Civil Statutes), is amended by adding
6-17 Subsection (d) to read as follows:
6-18 (d) A utility or municipally owned utility may not refuse to
6-19 provide service to the state or a state agency or institution if
6-20 pipeline capacity is available.
6-21 SECTION 8. The Gas Utility Regulatory Act (Article 1446e,
6-22 Vernon's Texas Civil Statutes) is amended by adding Section 5.061
6-23 to read as follows:
6-24 Sec. 5.061. RATES CHARGED STATE. The rates that a utility
6-25 or municipally owned utility charges the state or a state agency or
6-26 institution may not include an amount representing a gross receipts
6-27 assessment, regulatory assessment, or other similar expense. A
6-28 regulatory authority may adopt reasonable rules specifying similar
6-29 expenses to be excluded.
6-30 SECTION 9. Section 5.02, Gas Utility Regulatory Act (Article
6-31 1446e, Vernon's Texas Civil Statutes), is amended to read as
6-32 follows:
6-33 Sec. 5.02. Just and Reasonable Rates. (a) It shall be the
6-34 duty of the regulatory authority to ensure that every rate made,
6-35 demanded, or received by any gas utility, or by any two or more gas
6-36 utilities jointly, is just and reasonable. Rates may not be
6-37 unreasonably preferential, prejudicial, or discriminatory, but must
6-38 be sufficient, equitable, and consistent in application to each
6-39 class of consumers. For ratemaking purposes, the railroad
6-40 commission may treat two or more municipalities served by a gas
6-41 utility as a single class if the railroad commission considers that
6-42 treatment to be appropriate.
6-43 (b) Rates charged or offered to be charged by a gas utility
6-44 for pipeline-to-pipeline transactions and to transportation,
6-45 industrial, and other similar large volume contract customers, but
6-46 excluding direct sales-for-resale to gas distribution utilities at
6-47 city gates, are considered to be just and reasonable and otherwise
6-48 to comply with this section, and shall be approved by the
6-49 regulatory authority, if:
6-50 (1) neither the gas utility nor the customer had an
6-51 unfair advantage during the negotiations;
6-52 (2) the rates are substantially the same as rates
6-53 between the gas utility and two or more of those customers under
6-54 the same or similar conditions of service; or
6-55 (3) competition does or did exist either with another
6-56 gas utility, another supplier of natural gas, or with a supplier of
6-57 an alternative form of energy.
6-58 (c) Notwithstanding Subsection (b) of this section, the
6-59 railroad commission shall approve gas transportation rates
6-60 established under a contract between a utility or municipally owned
6-61 utility and a state agency or institution. Absent a contract
6-62 between a utility or municipally owned utility and a state agency
6-63 or institution, the railroad commission shall, not later than the
6-64 120th day after the date either party files a request to set rates,
6-65 establish rates not to exceed the cost-based transportation rate.
6-66 The railroad commission shall base its determination of a
6-67 cost-based transportation rate on the entire distribution system of
6-68 the utility or municipally owned utility in this state. The
6-69 railroad commission has exclusive original jurisdiction to
6-70 establish rates under this subsection.
7-1 (d) If a complaint is filed with the railroad commission by
7-2 a transmission pipeline purchaser of gas sold or transported under
7-3 any such pipeline-to-pipeline or transportation rate, then the
7-4 provisions of Subsection (b) shall not apply.
7-5 (e) <(d)> Notwithstanding any provision in this Act to the
7-6 contrary, the regulatory authority may approve administratively any
7-7 decrease in rates proposed by the applicant and agreed upon by all
7-8 parties directly affected, unless the regulatory authority finds
7-9 the proposed decrease not to be in the public interest.
7-10 (f) <(d)> The standard contained in Subsection (b)(1) of
7-11 this section shall not apply to rates charged or offered to be
7-12 charged to an affiliated pipeline utility. Gas purchase costs
7-13 included in city gate rates proposed to be charged for
7-14 sales-for-resale to gas distribution utilities at city gates may be
7-15 reviewed as to reasonableness in city gate rate proceedings even
7-16 though they have been previously approved as rates for other
7-17 parties under Subsection (b) of this section.
7-18 SECTION 10. Article X, Gas Utility Regulatory Act (Article
7-19 1446e, Vernon's Texas Civil Statutes), is amended by adding
7-20 Sections 10.05 and 10.06 to read as follows:
7-21 Sec. 10.05. BILLING FOR SERVICE TO STATE. A utility or
7-22 municipally owned utility may not bill or otherwise require the
7-23 state or a state agency or institution to pay for service before
7-24 the service is rendered.
7-25 Sec. 10.06. TIME OF PAYMENT OF UTILITY BILLS BY STATE.
7-26 (a) In this section, "utility" includes a municipally owned
7-27 utility.
7-28 (b) The commission shall adopt rules concerning payment of
7-29 utility bills that are consistent with Chapter 82, Acts of the 69th
7-30 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
7-31 Civil Statutes), and its subsequent amendments.
7-32 (c) This Act does not prohibit a utility from entering into
7-33 an agreement with the state or a state agency to establish a
7-34 levelized or average monthly service billing plan. The agreement
7-35 must require reconciliation of the levelized or equalized bills
7-36 quarterly.
7-37 SECTION 11. Subchapter E, Chapter 13, Water Code, is amended
7-38 by adding Sections 13.141 and 13.142 to read as follows:
7-39 Sec. 13.141. BILLING FOR SERVICE TO STATE. A utility or
7-40 municipally owned utility may not bill or otherwise require the
7-41 state or a state agency or institution to pay for service before
7-42 the service is rendered.
7-43 Sec. 13.142. TIME OF PAYMENT OF UTILITY BILLS BY STATE.
7-44 (a) In this section, "utility" includes a municipally owned
7-45 utility.
7-46 (b) The commission shall adopt rules concerning payment of
7-47 utility bills that are consistent with Chapter 82, Acts of the 69th
7-48 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
7-49 Civil Statutes), and its subsequent amendments.
7-50 (c) This Act does not prohibit a utility from entering into
7-51 an agreement with the state or a state agency to establish a
7-52 levelized or average monthly service billing plan. The agreement
7-53 must require reconciliation of the levelized or equalized bills
7-54 quarterly.
7-55 SECTION 12. Subchapter F, Chapter 13, Water Code, is amended
7-56 by adding Section 13.1861 to read as follows:
7-57 Sec. 13.1861. RATES CHARGED STATE. The rates that a utility
7-58 or municipally owned utility charges the state or a state agency or
7-59 institution may not include an amount representing a gross receipts
7-60 assessment, regulatory assessment, or other similar expense. A
7-61 regulatory authority may adopt reasonable rules specifying similar
7-62 expenses to be excluded.
7-63 SECTION 13. Section 403.056, Government Code, is amended by
7-64 adding Subsection (e) to read as follows:
7-65 (e) Notwithstanding Subsection (c), the comptroller may
7-66 deliver a warrant for payment of a bill for electric, telephone,
7-67 gas, or water service provided to the state or a state agency
7-68 directly to the utility that provided the service. The comptroller
7-69 may adopt rules to carry out this subsection, consistent with
7-70 Chapter 82, Acts of the 69th Legislature, Regular Session, 1985
8-1 (Article 601f, Vernon's Texas Civil Statutes).
8-2 SECTION 14. Subsections (b) and (c), Section 10.06, State
8-3 Purchasing and General Services Act (Article 601b, Vernon's Texas
8-4 Civil Statutes), are amended to read as follows:
8-5 (b) The comptroller of public accounts shall establish in
8-6 the state treasury a revolving fund account for the administration
8-7 of this article. The account shall be used as a depository for
8-8 funds received from entities served <and as a source of funds to
8-9 purchase, lease, or otherwise acquire services, supplies, and
8-10 equipment, and to pay salaries, wages, and other costs directly
8-11 attributable to the provisions and operations of the system>.
8-12 (c) In order to provide an adequate cash flow as may be
8-13 necessary for purposes of this article, using state agencies and
8-14 other entities, upon proper notification, shall make monthly
8-15 payments into the telecommunications revolving fund account from
8-16 appropriated or other available funds. The legislature may
8-17 appropriate funds for the operation of the system directly to the
8-18 commission. In that case the revolving fund account shall be used
8-19 to receive funds due from local government entities and other
8-20 agencies to the extent that their funds are not subject to
8-21 legislative appropriation. The commission shall maintain in the
8-22 revolving fund account sufficient amounts to pay the bills of the
8-23 consolidated telecommunications systems and the centralized Capitol
8-24 Complex telephone system. The commission shall certify amounts
8-25 that exceed this amount to the comptroller, and the comptroller
8-26 shall transfer the excess amounts to the credit of the statewide
8-27 network applications account established by Section 22A,
8-28 Information Resources Management Act (Article 4413(32j), Revised
8-29 Statutes), and its subsequent amendments.
8-30 SECTION 15. Section 1, Chapter 82, Acts of the 69th
8-31 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
8-32 Civil Statutes), is amended to read as follows:
8-33 Sec. 1. Definitions. In this Act:
8-34 (1) "State agency" means:
8-35 (A) a board, commission, department, office, or
8-36 other agency in the executive branch of state government that was
8-37 created under the constitution or a statute of the state, including
8-38 an institution of higher education as defined by Section 61.003,
8-39 Education Code, and a river authority;
8-40 (B) the legislature or a legislative agency; or
8-41 (C) the supreme court, the court of criminal
8-42 appeals, a court of appeals, a state judicial agency, or the State
8-43 Bar of Texas.
8-44 (2) "Political subdivision" means:
8-45 (A) a county;
8-46 (B) an incorporated city or town;
8-47 (C) a public school district; or
8-48 (D) a special purpose district or authority.
8-49 (3) "Governmental entity" means a state agency or a
8-50 political subdivision of this state.
8-51 (4) "Payment" means money owed to a vendor from whom a
8-52 governmental entity acquires property or services.
8-53 (5) "Commission" means the State Purchasing and
8-54 General Services Commission.
8-55 (6) "Vendor" means a person, corporation, association,
8-56 partnership, or other legal entity that supplies goods and/or
8-57 services to a governmental entity.
8-58 (7) "Services" includes electric, telephone, gas, and
8-59 water utility service.
8-60 (8) "Subcontractor" means a person who contracts with
8-61 a vendor to work, or has contracted with a vendor to contribute
8-62 toward the completion of work done, for a governmental entity.
8-63 SECTION 16. Section 7, Chapter 82, Acts of the 69th
8-64 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
8-65 Civil Statutes), is amended by adding Subsection (c) to read as
8-66 follows:
8-67 (c) Notwithstanding Subsection (a) of this section, this Act
8-68 applies to payments made by a state agency for electric, telephone,
8-69 gas, and water utility service regardless of any contractual
8-70 provision.
9-1 SECTION 17. The Information Resources Management Act
9-2 (Article 4413(32j), Revised Statutes) is amended by adding Section
9-3 22A to read as follows:
9-4 Sec. 22A. STATEWIDE NETWORK APPLICATIONS ACCOUNT. The
9-5 statewide network applications account is established in the
9-6 general revenue fund. Money credited to the account is from
9-7 transfers of excess balances in the telecommunications revolving
9-8 fund account as provided by Section 10.06(c), State Purchasing and
9-9 General Services Act (Article 601b, Vernon's Texas Civil Statutes),
9-10 and its subsequent amendments. Amounts credited to the statewide
9-11 network applications account may be appropriated only for the
9-12 purchase, improvement, or maintenance of information resources,
9-13 information resources technologies or applications, or related
9-14 services and other items for use by a network of state agencies
9-15 which may include agencies in the legislative branch of government.
9-16 SECTION 18. Section 1, Article 6050, Revised Statutes, is
9-17 amended to read as follows:
9-18 Sec. 1. In this article, "person" means an individual,
9-19 company, or private corporation, or their lessees, trustees, and
9-20 receivers. In Articles 6050-6066, Revised Civil Statutes of Texas,
9-21 1925, as amended, "gas utility," "public utility," or "utility"
9-22 means a person owning, managing, operating, leasing or controlling
9-23 within this State any pipe lines, plant, property, equipment,
9-24 facility, franchise, license, or permit for either one or more of
9-25 the following kinds of business:
9-26 (a) Transporting, conveying, distributing or
9-27 delivering natural gas: (1) for public use or service for
9-28 compensation; (2) for sale to municipalities or persons or
9-29 companies, in those cases referred to in Subsection (c) hereof,
9-30 engaged in distributing or selling natural gas to the public; (3)
9-31 for sale or delivery of natural gas to any person operating under
9-32 franchise or a contract with any municipality or other legal
9-33 subdivision of this State; or, (4) for sale or delivery of natural
9-34 gas to the public for domestic or other use.
9-35 (b) Owning or operating or managing a pipe line for
9-36 the transportation or carriage of natural gas, whether for public
9-37 hire or not, if any part of the right of way for said line has been
9-38 acquired, or is hereafter acquired by the exercise of the right of
9-39 eminent domain.
9-40 (c) Producing or purchasing natural gas and
9-41 transporting or causing the same to be transported by pipe lines to
9-42 or near the limits of any municipality in which said gas is
9-43 received and distributed or sold to the public by another public
9-44 utility or by said municipality, in all cases where such business
9-45 is in fact the only or practically exclusive agency of supply of
9-46 natural gas to such utility or municipality, is hereby declared to
9-47 be virtual monopoly and a business and calling affected with a
9-48 public interest, and the said business and property employed
9-49 therein within this State shall be subject to the provisions of
9-50 this law and to the jurisdiction and regulation of the Commission
9-51 as a gas utility.
9-52 (d) No person shall be deemed to be a "gas utility,"
9-53 "public utility," or "utility" solely because such person is an
9-54 affiliate of such an entity. The term "gas utility," "public
9-55 utility," or "utility" does not include a person not otherwise a
9-56 gas utility that transports gas on behalf of the state or a state
9-57 agency or institution.
9-58 (e) Every such gas utility is hereby declared to be
9-59 affected with a public interest and subject to the jurisdiction,
9-60 control and regulation of the Commission as provided herein.
9-61 SECTION 19. Article 6050, Revised Statutes, is amended by
9-62 adding Section 6 to read as follows:
9-63 Sec. 6. (a) A gas utility may not refuse to provide service
9-64 to the state or a state agency or institution if pipeline capacity
9-65 is available.
9-66 (b) In this section, "gas utility" includes a municipally
9-67 owned utility as that term is defined by Section 1.03, Gas Utility
9-68 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), and
9-69 its subsequent amendments.
9-70 SECTION 20. Section 1, Article 6053, Revised Statutes, is
10-1 amended to read as follows:
10-2 Sec. 1. (a) The Commission after due notice shall fix and
10-3 establish and enforce the adequate and reasonable price of gas and
10-4 fair and reasonable rates of charges and regulations for
10-5 transporting, producing, distributing, buying, selling, and
10-6 delivering gas by such pipe lines in this State; and shall
10-7 establish fair and equitable rules and regulations for the full
10-8 control and supervision of said gas pipe lines and all their
10-9 holdings pertaining to the gas business in all their relations to
10-10 the public, as the Commission may from time to time deem proper;
10-11 and establish a fair and equitable division of the proceeds of the
10-12 sale of gas between the companies transporting or producing the gas
10-13 and the companies distributing or selling it; and prescribe and
10-14 enforce rules and regulations for the government and control of
10-15 such pipe lines in respect to their gas pipe lines and producing,
10-16 receiving, transporting, and distributing facilities; and regulate
10-17 and apportion the supply of gas between towns, cities, and
10-18 corporations, and when the supply of gas controlled by any gas pipe
10-19 line shall be inadequate, the Commission shall prescribe fair and
10-20 reasonable rules and regulations requiring such gas pipe lines to
10-21 augment their supply of gas, when in the judgment of the Commission
10-22 it is practicable to do so; and it shall exercise its power,
10-23 whether upon its own motion or upon petition by any person,
10-24 corporation, municipal corporation, county, or Commissioners
10-25 precinct showing a substantial interest in the subject, or upon
10-26 petition of the Attorney General, or of any County or District
10-27 Attorney in any county wherein such business or any part thereof
10-28 may be carried on.
10-29 (b) Notwithstanding Subsection (a) of this section, the
10-30 Commission shall approve rates established under a contract between
10-31 a gas utility or gas supplier and a State agency or institution.
10-32 Absent a contract between a gas utility or gas supplier and a State
10-33 agency or institution, the Commission shall, not later than the
10-34 120th day after the date either party files a request to set rates,
10-35 establish rates not to exceed the gas utility's or gas supplier's
10-36 cost-based transportation rate. The Commission shall base its
10-37 determination of a cost-based transportation rate on the entire
10-38 distribution system of the gas utility or gas supplier in this
10-39 State. The Commission has exclusive original jurisdiction to
10-40 establish rates under this subsection. In this subsection, the
10-41 term "gas utility" or "gas supplier" includes a municipally owned
10-42 utility as that term is defined by Section 1.03, Gas Utility
10-43 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), and
10-44 its subsequent amendments.
10-45 (c) If any transportation, industrial, or other similar
10-46 large-volume contract customer who is an end-use customer of a gas
10-47 utility (i) reduces or ceases purchases of natural gas or of
10-48 natural gas service from the gas utility and (ii) purchases natural
10-49 gas or natural gas service from another supplier or purchases an
10-50 alternate form of energy, then the gas utility thereafter shall
10-51 have no obligation to serve or to maintain the gas supply or the
10-52 physical capacity to serve such customer, except to the extent that
10-53 such customer continues to purchase natural gas or natural gas
10-54 service of any class from the gas utility or to the extent the gas
10-55 utility has a written contract to provide natural gas or natural
10-56 gas service of any class to the customer. Nothing herein shall
10-57 prevent the Railroad Commission from requiring that utilities
10-58 comply with all orders of the Railroad Commission in apportioning
10-59 gas under curtailment plans and orders.
10-60 SECTION 21. Title 110A, Revised Statutes, is amended by
10-61 adding Article 6252-5g to read as follows:
10-62 Art. 6252-5g. UTILITY BILLING AUDIT
10-63 Sec. 1. Except as provided by Section 3 of this article,
10-64 every four years each state agency and institution of higher
10-65 education shall perform an audit of its electric, telephone, gas,
10-66 and water utility billing during the preceding four years or the
10-67 maximum recovery period. The agency or institution may contract
10-68 with a private consultant in the performance of the audit.
10-69 Sec. 2. The audit must provide information to allow the
10-70 agency or institution to ensure that it is properly classified and
11-1 subscribed and that the amounts paid for service are proper.
11-2 Sec. 3. Before the agency or institution conducts an audit
11-3 it shall analyze the potential benefit of the audit. The agency or
11-4 institution is not required to perform the audit if it determines
11-5 that the savings and refunds provided by the audit will not exceed
11-6 its cost.
11-7 Sec. 4. The audit must be funded from refunds received as a
11-8 result of the audit. The agency or institution shall take
11-9 appropriate action to recover any refund due. The attorney general
11-10 may assist in recovering a refund. The amount of any refunds
11-11 received shall be deposited in the state treasury to the credit of
11-12 the general revenue fund. The costs of the audit shall be paid
11-13 from amounts appropriated from those funds for that purpose.
11-14 Sec. 5. During January and June of each year during which an
11-15 audit is being conducted, the agency or institution shall submit to
11-16 the governor, Legislative Budget Board, and comptroller a report on
11-17 the status of the audit. The report must include a summary of the
11-18 costs of the audit, current audit activity, a schedule of future
11-19 activity, audit recommendations and results, pending refunds, and
11-20 recovered refunds. Not later than the 30th day after the date an
11-21 audit is completed, the agency or institution shall submit to the
11-22 governor, Legislative Budget Board, and comptroller a report on the
11-23 savings resulting from the audit, including their source, and the
11-24 costs of the audit.
11-25 SECTION 22. Subchapter B, Chapter 23, Education Code, is
11-26 amended by adding Section 23.34 to read as follows:
11-27 Sec. 23.34. UTILITY BILLING AUDIT. (a) Except as provided
11-28 by Subsection (c) of this section, every four years each school
11-29 district shall perform an audit of its electric, telephone, gas,
11-30 and water utility billing during the preceding four years. The
11-31 school district may contract with a private consultant in the
11-32 performance of the audit.
11-33 (b) The audit must provide information to allow the school
11-34 district to ensure that it is properly classified and subscribed
11-35 and that the amounts paid for service are proper.
11-36 (c) Before the school district conducts an audit it shall
11-37 analyze the potential benefit of the audit. The school district is
11-38 not required to perform the audit if it determines that the savings
11-39 and refunds provided by the audit will not exceed its cost.
11-40 (d) The audit must be funded from refunds received as a
11-41 result of the audit. The school district shall take appropriate
11-42 action to recover any refund due. The attorney general may assist
11-43 in recovering a refund.
11-44 (e) During January and June of each year during which an
11-45 audit is being conducted, the school district shall submit to the
11-46 State Board of Education a report on the status of the audit. The
11-47 report must include a summary of the costs of the audit, current
11-48 audit activity, a schedule of future activity, audit
11-49 recommendations and results, pending refunds, and recovered
11-50 refunds. The State Board of Education shall submit a summary of
11-51 the report to the governor, Legislative Budget Board, and
11-52 comptroller. Not later than the 30th day after the date an audit
11-53 is completed, the school district shall submit to the State Board
11-54 of Education a report on the savings resulting from the audit,
11-55 including their source, and the costs of the audit. The State
11-56 Board of Education shall submit a copy of this report to the
11-57 governor, Legislative Budget Board, and comptroller.
11-58 SECTION 23. The attorney general shall coordinate with the
11-59 Public Utility Commission of Texas and the Railroad Commission of
11-60 Texas in the development and maintenance of systems to publicly
11-61 monitor and verify rates of the utilities regulated by each of
11-62 those commissions. The systems must provide for easy acquisition
11-63 of information in a format that is easy to understand. Before
11-64 February 1, 1995, the attorney general and each commission shall
11-65 submit a report of their activities under this section to the
11-66 speaker of the house of representatives and lieutenant governor.
11-67 SECTION 24. Immediately after the effective date of this
11-68 Act, the Public Utility Commission of Texas shall initiate rate
11-69 proceedings under Section 42, Public Utility Regulatory Act
11-70 (Article 1446c, Vernon's Texas Civil Statutes), to set just and
12-1 reasonable rates in accordance with Section 88, Public Utility
12-2 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), as
12-3 added by Section 4 of this Act. The commission shall provide that
12-4 the rates take effect September 1, 1993, regardless of the date on
12-5 which a final order is issued.
12-6 SECTION 25. (a) Except as provided by Subsection (b) of
12-7 this section, this Act takes effect September 1, 1993.
12-8 (b) Sections 4 and 24 of this Act take effect immediately.
12-9 SECTION 26. The importance of this legislation and the
12-10 crowded condition of the calendars in both houses create an
12-11 emergency and an imperative public necessity that the
12-12 constitutional rule requiring bills to be read on three several
12-13 days in each house be suspended, and this rule is hereby suspended,
12-14 and that this Act take effect and be in force according to its
12-15 terms, and it is so enacted.
12-16 * * * * *
12-17 Austin,
12-18 Texas
12-19 March 23, 1993
12-20 Hon. Bob Bullock
12-21 President of the Senate
12-22 Sir:
12-23 We, your Committee on Economic Development to which was referred
12-24 S.B. No. 83, have had the same under consideration, and I am
12-25 instructed to report it back to the Senate with the recommendation
12-26 that it do not pass, but that the Committee Substitute adopted in
12-27 lieu thereof do pass and be printed.
12-28 Parker,
12-29 Chairman
12-30 * * * * *
12-31 WITNESSES
12-32 FOR AGAINST ON
12-33 ___________________________________________________________________
12-34 Name: Vicki Oswalt x
12-35 Representing: Public Utility Comm.
12-36 City: Austin
12-37 -------------------------------------------------------------------
12-38 Name: Richard Muscat x
12-39 Representing:
12-40 City: Austin
12-41 -------------------------------------------------------------------
12-42 Name: Ray Bonilla x
12-43 Representing: Comptrollers Office
12-44 City: Austin
12-45 -------------------------------------------------------------------
12-46 Name: Bill Magness x
12-47 Representing: Office of Pub. Utility
12-48 City: Austin
12-49 -------------------------------------------------------------------
12-50 Name: Kent Caperton x
12-51 Representing: Assn. of Electric Co.
12-52 City: Austin
12-53 -------------------------------------------------------------------
12-54 Name: Martin Wilson x
12-55 Representing: Public Utility Comm.
12-56 City: Austin
12-57 -------------------------------------------------------------------
12-58 Name: Clarence Johnson x
12-59 Representing: Public Utility Comm.
12-60 City: Austin
12-61 -------------------------------------------------------------------
12-62 Name: Tim Raven x
12-63 Representing: TX Telephone
12-64 City: Austin
12-65 -------------------------------------------------------------------
12-66 Name: Jack B. x
12-67 Representing: Texceltel
12-68 City: Austin
12-69 -------------------------------------------------------------------
12-70 Name: Steve Bickerstaff x
13-1 Representing: TX Assn. of Long Dist. Teleph
13-2 City: Austin
13-3 -------------------------------------------------------------------
13-4 Name: Dee Golla x
13-5 Representing: Metromedia Com. Corp.
13-6 City: San Antonio
13-7 -------------------------------------------------------------------
13-8 Name: Charles Land x
13-9 Representing: Texaltel
13-10 City: Austin
13-11 -------------------------------------------------------------------
13-12 FOR AGAINST ON
13-13 ___________________________________________________________________
13-14 Name: Pam McClellan x
13-15 Representing: Gov Affairs Comm. of Tx Gas
13-16 City: Austin
13-17 -------------------------------------------------------------------
13-18 Name: Sandy Kibby x
13-19 Representing: TX Assn of Ed. Serv. Centers
13-20 City: Austin
13-21 -------------------------------------------------------------------
13-22 Name: Mary Buckley x
13-23 Representing: Comptroller of Public Accts.
13-24 City: Austin
13-25 -------------------------------------------------------------------
13-26 Name: Cindy Alexander x
13-27 Representing: Comptroller of Pub. Accts.
13-28 City: Austin
13-29 -------------------------------------------------------------------
13-30 Name: Scott McCollough x
13-31 Representing: Comptroller of Pub. Accts.
13-32 City: Austin
13-33 -------------------------------------------------------------------
13-34 Name: Bill Clayton x
13-35 Representing: ATC
13-36 City: Austin
13-37 -------------------------------------------------------------------
13-38 Name: Jerry Henckel x
13-39 Representing: City of San Antonio
13-40 City: San Antonio
13-41 -------------------------------------------------------------------
13-42 Name: Connie T. Maxwell x
13-43 Representing: City of Lewisville
13-44 City: Lewisville
13-45 -------------------------------------------------------------------