73R10677 CBH-D
By Parker S.B. No. 498
Substitute the following for S.B. No. 498:
By Seidlits C.S.S.B. No. 498
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to continuation, operations, and functions of the Public
1-3 Utility Commission of Texas and the Office of Public Utility
1-4 Counsel; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1
1-7 SECTION 1.01. Section 3, Public Utility Regulatory Act
1-8 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
1-9 amending Subdivisions (a), (c), (u), and (v) and adding Subdivision
1-10 (f) to read as follows:
1-11 (a) The term "person," when used in this Act, includes
1-12 natural persons, partnerships of two or more persons having a joint
1-13 or common interest, mutual or cooperative associations, <water
1-14 supply or sewer service corporations,> and corporations, as herein
1-15 defined.
1-16 (c) The term "public utility" or "utility," when used in
1-17 this Act, includes any person, corporation, river authority,
1-18 cooperative corporation, or any combination thereof, other than a
1-19 municipal corporation <or a water supply or sewer service
1-20 corporation>, or their lessees, trustees, and receivers, now or
1-21 hereafter owning or operating for compensation in this state
1-22 equipment or facilities for:
1-23 (1) producing, generating, transmitting, distributing,
1-24 selling, or furnishing electricity ("electric utilities"
2-1 hereinafter) provided, however, that this definition shall not be
2-2 construed to apply to or include a qualifying small power producer
2-3 or qualifying cogenerator, as defined in Sections 3(17)(D) and
2-4 3(18)(C) of the Federal Power Act, as amended (16 U.S.C. Sections
2-5 796(17)(D) and 796(18)(C));
2-6 (2)(A) the conveyance, transmission, or reception of
2-7 communications over a telephone system as a dominant carrier as
2-8 hereinafter defined ("telecommunications utilities" hereinafter);
2-9 provided that no person or corporation not otherwise a public
2-10 utility within the meaning of this Act shall be deemed such solely
2-11 because of the furnishing or furnishing and maintenance of a
2-12 private system or the manufacture, distribution, installation, or
2-13 maintenance of customer premise communications equipment and
2-14 accessories; and provided further that nothing in this Act shall be
2-15 construed to apply to telegraph services, television stations,
2-16 radio stations, community antenna television services, or
2-17 radio-telephone services that may be authorized under the Public
2-18 Mobile Radio Services rules of the Federal Communications
2-19 Commission, other than such radio-telephone services provided by
2-20 wire-line telephone companies under the Domestic Public Land Mobile
2-21 Radio Service and Rural Radio Service rules of the Federal
2-22 Communications Commission; and provided further that interexchange
2-23 telecommunications carriers (including resellers of interexchange
2-24 telecommunications services), specialized communications common
2-25 carriers, other resellers of communications, other communications
2-26 carriers who convey, transmit, or receive communications in whole
2-27 or in part over a telephone system, and providers of operator
3-1 services as defined in Section 18A(a) of this Act (except that
3-2 subscribers to customer-owned pay telephone service shall not be
3-3 deemed to be telecommunications utilities) <who are not dominant
3-4 carriers> are also telecommunications utilities, but the
3-5 commission's regulatory authority as to them is only as hereinafter
3-6 defined;
3-7 (B) "dominant carrier" when used in this Act
3-8 means (i) a provider of any particular communication service which
3-9 is provided in whole or in part over a telephone system who as to
3-10 such service has sufficient market power in a telecommunications
3-11 market as determined by the commission to enable such provider to
3-12 control prices in a manner adverse to the public interest for such
3-13 service in such market; and (ii) any provider of local exchange
3-14 telephone service within a certificated exchange area as to such
3-15 service. A telecommunications market shall be statewide until
3-16 January 1, 1985. After this date the commission may, if it
3-17 determines that the public interest will be served, establish
3-18 separate markets within the state. Prior to January 1, 1985, the
3-19 commission shall hold such hearings and require such evidence as is
3-20 necessary to carry out the public purpose of this Act and to
3-21 determine the need and effect of establishing separate markets.
3-22 Any such provider determined to be a dominant carrier as to a
3-23 particular telecommunications service in a market shall not be
3-24 presumed to be a dominant carrier of a different telecommunications
3-25 service in that market. The term does not include an interexchange
3-26 carrier that is not a certificated local exchange carrier, with
3-27 respect to interexchange services.
4-1 (3) The term "public utility" or "utility" shall not
4-2 include any person or corporation not otherwise a public utility
4-3 that furnishes the services or commodity described in any paragraph
4-4 of this subsection only to itself, its employees, or tenants as an
4-5 incident of such employee service or tenancy, when such service or
4-6 commodity is not resold to or used by others. The term "electric
4-7 utility" shall not include any person or corporation not otherwise
4-8 a public utility that owns or operates in this state equipment or
4-9 facilities for producing, generating, transmitting, distributing,
4-10 selling, or furnishing electric energy to an electric utility, if
4-11 the equipment or facilities are used primarily for the production
4-12 and generation of electric energy for consumption by the person or
4-13 corporation. The term "public utility," "utility," or "electric
4-14 utility" shall not include any person or corporation not otherwise
4-15 a public utility that owns or operates in this state a recreational
4-16 vehicle park that provides metered electric service in accordance
4-17 with Article 1446d-2, Revised Statutes. A recreational vehicle
4-18 park owner is considered a public utility if the owner fails to
4-19 comply with Article 1446d-2, Revised Statutes, with regard to the
4-20 metered sale of electricity at the recreational vehicle park.
4-21 (f) "Office" means the Office of Public Utility Counsel.
4-22 (u) <"Water supply or sewer service corporation" means a
4-23 nonprofit, member-owned corporation organized and operating under
4-24 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933,
4-25 as amended (Article 1434a, Vernon's Texas Civil Statutes).>
4-26 <(v)> "Local exchange company" means a telecommunications
4-27 utility certificated to provide local exchange service within the
5-1 state.
5-2 SECTION 1.02. Section 5, Public Utility Regulatory Act
5-3 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
5-4 as follows:
5-5 Sec. 5. A commission, to be known as the "Public Utility
5-6 Commission of Texas" is hereby created. It shall consist of three
5-7 commissioners, who shall be appointed to staggered, six-year terms
5-8 by the governor, with the advice and consent of two-thirds of the
5-9 members of the senate present, and who shall have and exercise the
5-10 jurisdiction and powers herein conferred upon the commission. Each
5-11 commissioner shall hold office until his successor is appointed and
5-12 qualified. The governor shall designate a member of the commission
5-13 as the chairman of the commission to serve in that capacity at the
5-14 pleasure of the governor <At its first meeting following the
5-15 biennial appointment and qualification of a commissioner, the
5-16 commission shall elect one of the commissioners chairman>.
5-17 Appointments to the commission shall be made without regard to the
5-18 race, color, handicap <creed>, sex, religion, age, or national
5-19 origin of the appointees.
5-20 SECTION 1.03. Section 5a, Public Utility Regulatory Act
5-21 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
5-22 as follows:
5-23 Sec. 5a. The Public Utility Commission of Texas and the
5-24 Office of Public Utility Counsel are subject to Chapter 325,
5-25 Government Code (Texas Sunset Act). Unless continued in existence
5-26 as provided by that chapter, the commission and the office <Office
5-27 of Public Utility Counsel> are abolished and this Act expires
6-1 September 1, 2001 <1993>.
6-2 SECTION 1.04. Section 6, Public Utility Regulatory Act
6-3 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
6-4 amending Subsections (a), (b), and (k) and adding Subsections (g),
6-5 (l), (m), (n), (o), and (p) to read as follows:
6-6 (a) To be eligible for appointment as a commissioner, a
6-7 person must be a qualified voter<, not less than 30 years of age>,
6-8 a citizen of the United States, and a resident of the State of
6-9 Texas. No person is eligible for appointment as a commissioner if
6-10 at any time during the two-year period immediately preceding his
6-11 appointment he personally served as an officer, director, owner,
6-12 employee, partner, or legal representative of any public utility or
6-13 any affiliated interest, or he owned or controlled, directly or
6-14 indirectly, stocks or bonds of any class with a value of $10,000,
6-15 or more in a public utility or any affiliated interest. Each
6-16 commissioner shall qualify for office by taking the oath prescribed
6-17 for other state officers and shall execute a bond for $5,000
6-18 payable to the state and conditioned on the faithful performance of
6-19 his duties. All members must be representatives of the general
6-20 public. A person may not serve as a member of the commission or
6-21 act as the legal counsel to the commission if the person <who> is
6-22 required to register as a lobbyist under Chapter 305, Government
6-23 Code, and its subsequent amendments, because of the person's
6-24 activities for compensation on behalf of a profession related to
6-25 the operation of the commission <may not serve as a member of the
6-26 commission or public utility counsel or act as the general counsel
6-27 to the commission>.
7-1 (b) No commissioner or employee of the commission may do any
7-2 of the following during his period of service with the commission:
7-3 (1) have any pecuniary interest, either as an officer,
7-4 director, partner, owner, employee, attorney, consultant, or
7-5 otherwise, in any public utility or affiliated interest, or in any
7-6 person or corporation or other business entity a significant
7-7 portion of whose business consists of furnishing goods or services
7-8 to public utilities or affiliated interests, but not including a
7-9 nonprofit group or association solely supported by gratuitous
7-10 contributions of money, property or services, other than a trade
7-11 association as defined by Subsection (n) of this section;
7-12 (2) own or control any securities in a public utility
7-13 or affiliated interest, either directly or indirectly;
7-14 (3) accept any gift, gratuity, or entertainment
7-15 whatsoever from any public utility or affiliated interest, or from
7-16 any person, corporation, agent, representative, employee, or other
7-17 business entity a significant portion of whose business consists of
7-18 furnishing goods or services to public utilities or affiliated
7-19 interests, or from any agent, representative, attorney, employee,
7-20 officer, owner, director, or partner of any such business entity or
7-21 of any public utility or affiliated interest; provided, however,
7-22 that the receipt and acceptance of any gifts, gratuities, or
7-23 entertainment after termination of service with the commission
7-24 whose cumulative value in any one-year period is less than $100
7-25 shall not constitute a violation of this Act.
7-26 (g) A person is not eligible for appointment as a public
7-27 member of the commission or for employment as the general counsel
8-1 or executive director of the commission if:
8-2 (1) the person serves on the board of directors of a
8-3 company that supplies fuel, utility-related services, or
8-4 utility-related products to regulated or unregulated electric or
8-5 telecommunications utilities; or
8-6 (2) the person or the person's spouse:
8-7 (A) is employed by or participates in the
8-8 management of a business entity or other organization regulated by
8-9 the commission or receiving funds from the commission;
8-10 (B) owns or controls, directly or indirectly,
8-11 more than a 10 percent interest or a pecuniary interest with a
8-12 value exceeding $10,000 in:
8-13 (i) a business entity or other
8-14 organization regulated by the commission or receiving funds from
8-15 the commission; or
8-16 (ii) any utility competitor, utility
8-17 supplier, or other entity affected by a commission decision in a
8-18 manner other than by the setting of rates for that class of
8-19 customer;
8-20 (C) uses or receives a substantial amount of
8-21 tangible goods, services, or funds from the commission, other than
8-22 compensation or reimbursement authorized by law for commission
8-23 membership, attendance, or expenses; or
8-24 (D) notwithstanding Paragraph (B) of this
8-25 subdivision, has an interest in a mutual fund or retirement fund in
8-26 which more than 10 percent of the fund's holdings at the time of
8-27 appointment is in a single utility, utility competitor, or utility
9-1 supplier in this state and the person does not disclose this
9-2 information to the governor, senate, commission, or other entity,
9-3 as appropriate.
9-4 (k) The commission shall provide to <require> its members
9-5 and employees, <to read this section and> as often as necessary,
9-6 <shall provide> information regarding their qualification for
9-7 office or employment under this Act and their responsibilities
9-8 under applicable laws relating to standards of conduct for state
9-9 officers or <and> employees.
9-10 (l) An officer, employee, or paid consultant of a trade
9-11 association in the field of public utilities may not be a member or
9-12 employee of the commission who is exempt from the state's position
9-13 classification plan or is compensated at or above the amount
9-14 prescribed by the General Appropriations Act for step 1, salary
9-15 group 17, of the position classification salary schedule.
9-16 (m) A person who is a spouse of an officer, manager, or paid
9-17 consultant of a trade association in the field of public utilities
9-18 may not be a commission member and may not be a commission employee
9-19 who is exempt from the state's position classification plan or is
9-20 compensated at or above the amount prescribed by the General
9-21 Appropriations Act for step 1, salary group 17, of the position
9-22 classification salary schedule.
9-23 (n) For the purposes of this section, a trade association is
9-24 a nonprofit, cooperative, and voluntarily joined association of
9-25 business or professional persons who are employed by public
9-26 utilities or utility competitors to assist the public utility
9-27 industry, a utility competitor, or the industry's or competitor's
10-1 employees in dealing with mutual business or professional problems
10-2 and in promoting their common interest.
10-3 (o) In this Act, an entity or utility supplier is considered
10-4 to be affected in a manner other than by the setting of rates for
10-5 that class of customer if during a relevant calendar year the
10-6 entity provides fuel, utility-related goods, utility-related
10-7 products, or utility-related services to a regulated or unregulated
10-8 provider of telecommunications or electric services or to an
10-9 affiliated interest in an amount equal to the greater of $10,000 or
10-10 10 percent of the person's business.
10-11 (p) Notwithstanding any other provision of this Act, a
10-12 person otherwise ineligible because of the application of Paragraph
10-13 (B) of Subdivision (2) of Subsection (g) of this section may be
10-14 appointed to the commission and serve as a commissioner or may be
10-15 employed as the general counsel or executive director if the
10-16 person:
10-17 (1) notifies the attorney general and commission that
10-18 the person is ineligible because of the application of Paragraph
10-19 (B) of Subdivision (2) of Subsection (g) of this section; and
10-20 (2) divests the person or the person's spouse of the
10-21 ownership or control before beginning service or employment, or
10-22 within a reasonable time if the person is already serving or
10-23 employed at the time Paragraph (B) of Subdivision (2) of Subsection
10-24 (g) of this section first applies to the person.
10-25 SECTION 1.05. Section 6A, Public Utility Regulatory Act
10-26 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
10-27 as follows:
11-1 Sec. 6A. (a) It is a ground for removal from the commission
11-2 if a member:
11-3 (1) does not have at the time of appointment the
11-4 qualifications required by Section 6 of this Act; <for appointment
11-5 to the commission; or>
11-6 (2) does not maintain during <the> service on the
11-7 commission the qualifications required by Section 6 of this Act;
11-8 (3) violates a prohibition established by Section 6 of
11-9 this Act;
11-10 (4) cannot discharge the member's duties for a
11-11 substantial part of the term for which the member is appointed
11-12 because of illness or disability; or
11-13 (5) is absent from more than half of the regularly
11-14 scheduled commission meetings that the member is eligible to attend
11-15 during a calendar year unless the absence is excused by majority
11-16 vote of the commission <for appointment to the commission>.
11-17 (b) The validity of an action of the commission is not
11-18 affected by the fact that it is <was> taken when a ground for
11-19 removal of a <member of the> commission member exists <existed>.
11-20 (c) If the executive director has knowledge that a potential
11-21 ground for removal exists, the executive director shall notify the
11-22 governor and the attorney general that a potential ground for
11-23 removal exists.
11-24 SECTION 1.06. Section 8, Public Utility Regulatory Act
11-25 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
11-26 amending Subsections (a), (e), and (f) and adding Subsections (g)
11-27 and (h) to read as follows:
12-1 (a) The commission shall employ an executive director, a
12-2 general counsel, and such officers<, administrative law judges,
12-3 hearing examiners, investigators, lawyers, engineers, economists,
12-4 consultants, statisticians, accountants, administrative assistants,
12-5 inspectors, clerical staff,> and other employees as it deems
12-6 necessary to carry out the provisions of this Act. All employees
12-7 receive such compensation as is fixed by the legislature. The
12-8 commission shall develop and implement policies that clearly define
12-9 the respective responsibilities of the commission and the staff of
12-10 the commission.
12-11 (e) The executive director or the executive director's <his>
12-12 designee shall develop an intra-agency <intraagency> career ladder
12-13 program. The program shall require intra-agency posting of all
12-14 non-entry-level positions concurrently with any public posting<,
12-15 one part of which shall be the intraagency posting of all nonentry
12-16 level positions for at least 10 days before any public posting>.
12-17 The executive director or the executive director's <his> designee
12-18 shall develop a system of annual performance evaluations <based on
12-19 measurable job tasks>. All merit pay for commission employees must
12-20 be based on the system established under this section.
12-21 (f) The executive director or the executive director's
12-22 <his/her> designee shall prepare and maintain a written policy
12-23 statement <plan> to assure implementation of a program of equal
12-24 employment opportunity under which <whereby> all personnel
12-25 transactions are made without regard to race, color, handicap
12-26 <disability>, sex, religion, age, or national origin. The policy
12-27 statement must <plans shall> include:
13-1 (1) personnel policies, including policies relating to
13-2 recruitment, evaluation, selection, appointment, training, and
13-3 promotion of personnel <a comprehensive analysis of all the
13-4 agency's work force by race, sex, ethnic origin, class of position,
13-5 and salary or wage>;
13-6 (2) a comprehensive analysis of the commission work
13-7 force that meets federal and state guidelines <plans for
13-8 recruitment, evaluation, selection, appointment, training,
13-9 promotion, and other personnel policies>;
13-10 (3) procedures by which a determination can be made of
13-11 significant underutilization in the commission work force of all
13-12 persons for whom federal or state guidelines encourage a more
13-13 equitable balance <steps reasonably designed to overcome any
13-14 identified underutilization of minorities and women in the agency's
13-15 work force>; and
13-16 (4) reasonable methods to address those areas of
13-17 significant underutilization appropriately.
13-18 (g) A policy statement prepared under Subsection (f) of this
13-19 section must <objectives and goals, timetables for the achievement
13-20 of the objectives and goals, and assignments of responsibility for
13-21 their achievement.>
13-22 <The plans shall be filed with the governor's office within
13-23 60 days of the effective date of this Act,> cover an annual period,
13-24 <and> be updated at least annually, and be filed with the
13-25 governor's office and the Commission on Human Rights.
13-26 (h) The governor's office shall deliver a biennial report to
13-27 the legislature based on the information received under Subsection
14-1 (g) of this section. The report may be made separately or as a
14-2 part of other biennial reports made to the legislature<. Progress
14-3 reports shall be submitted to the governor's office within 30 days
14-4 of November 1 and April 1 of each year and shall include the steps
14-5 the agency has taken within the reporting period to comply with
14-6 these requirements>.
14-7 SECTION 1.07. Section 10, Public Utility Regulatory Act
14-8 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
14-9 as follows:
14-10 Sec. 10. (a) The principal office of the commission shall
14-11 be located in the City of Austin, Texas, and shall be open daily
14-12 during the usual business hours, Saturdays, Sundays, and legal
14-13 holidays excepted. The commission shall hold meetings at its
14-14 office and at such other convenient places in the state as shall be
14-15 expedient and necessary for the proper performance of its duties.
14-16 (b) The commission shall develop and implement policies that
14-17 provide the public with a reasonable opportunity to appear before
14-18 the commission and to speak on any issue under the jurisdiction of
14-19 the commission.
14-20 SECTION 1.08. Subsection (a), Section 14, Public Utility
14-21 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
14-22 amended to read as follows:
14-23 (a) The commission shall file annually with the governor and
14-24 the presiding officer of each house of the legislature a complete
14-25 and detailed written report accounting for all funds received and
14-26 disbursed by the commission during the preceding fiscal year. The
14-27 annual report must be in the form and reported in the time provided
15-1 by the General Appropriations Act <publish an annual report to the
15-2 governor, summarizing its proceedings, listing its receipts and the
15-3 sources of its receipts, listing its expenditures and the nature of
15-4 such expenditures, and setting forth such other information
15-5 concerning the operations of the commission and the public utility
15-6 industry as it considers of general interest>.
15-7 SECTION 1.09. Section 14A, Public Utility Regulatory Act
15-8 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
15-9 as follows:
15-10 Sec. 14A. (a) The commission shall prepare information of
15-11 public <consumer> interest describing the <regulatory> functions of
15-12 the commission and <describing> the commission's procedures by
15-13 which <consumer> complaints are filed with and resolved by the
15-14 commission. The commission shall make the information available to
15-15 the <general> public and appropriate state agencies.
15-16 (b) The commission by rule shall establish methods by which
15-17 consumers and service recipients are notified of the name, mailing
15-18 address, and telephone number of the commission for the purpose of
15-19 directing complaints to the commission.
15-20 (c) The commission shall prepare and maintain a written plan
15-21 that describes how a person who does not speak English can be
15-22 provided reasonable access to the commission's programs. The
15-23 commission shall also comply with federal and state laws for
15-24 program and facility accessibility.
15-25 SECTION 1.10. Subsections (a) and (b), Section 83, Public
15-26 Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
15-27 Statutes), are amended to read as follows:
16-1 (a) Any affected person may complain to the regulatory
16-2 authority in writing setting forth any act or thing done or omitted
16-3 to be done by any public utility in violation or claimed violation
16-4 of any law which the regulatory authority has jurisdiction to
16-5 administer, or of any order, ordinance, rule, or regulation of the
16-6 regulatory authority. The commission shall keep an information
16-7 file about each complaint filed with the commission that the
16-8 commission has authority to resolve <relating to a utility>. The
16-9 commission shall retain the file for a reasonable period.
16-10 (b) If a written complaint is filed with the commission that
16-11 the commission has authority to resolve <relating to a utility>,
16-12 the commission, at least <as frequently as> quarterly and until
16-13 final disposition of the complaint, shall notify the parties to the
16-14 complaint of the status of the complaint unless the notice would
16-15 jeopardize an undercover investigation.
16-16 SECTION 1.11. The changes in law made by this article
16-17 relating to the requirements for membership on the Public Utility
16-18 Commission of Texas or to employment as executive director or
16-19 general counsel of the commission apply only to a person appointed
16-20 or hired, as appropriate, on or after the effective date of this
16-21 Act and do not affect the entitlement of a member serving on the
16-22 commission on August 31, 1993, to continue to hold office for the
16-23 remainder of the term for which the person was appointed or the
16-24 ability of a person serving as executive director or general
16-25 counsel on August 31, 1993, to continue to hold that position.
16-26 ARTICLE 2
16-27 SECTION 2.01. Subsection (i), Section 6, Public Utility
17-1 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
17-2 amended to read as follows:
17-3 (i) No commissioner shall within two years, and no employee
17-4 shall, within one year after his employment or service with the
17-5 commission has ceased:
17-6 (1)<,> be employed by a public utility which was in
17-7 the scope of the commissioner's or employee's official
17-8 responsibility while the commissioner or employee was associated
17-9 with the commission; or
17-10 (2) be employed by a utility competitor, utility
17-11 supplier, or other entity affected in a manner other than by the
17-12 setting of rates for that class of customer, provided that this
17-13 subdivision does not apply to an employee other than the general
17-14 counsel or executive director.
17-15 SECTION 2.02. Section 8(b), Public Utility Regulatory Act
17-16 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
17-17 as follows:
17-18 (b) The commission shall employ <the following:>
17-19 <(1)> an executive director, a general counsel, and<;>
17-20 <(2)> a director of hearings who has wide experience
17-21 in utility regulation and rate determination. The executive
17-22 director is responsible for the day-to-day operations of the agency
17-23 and shall coordinate the activities of commission employees<;>
17-24 <(3) a chief engineer who is a registered engineer and
17-25 an expert in public utility engineering and rate matters;>
17-26 <(4) a chief accountant who is a certified public
17-27 accountant, experienced in public utility accounting;>
18-1 <(5) a director of research who is experienced in the
18-2 conduct of analyses of industry, economics, energy, fuel, and other
18-3 related matters that the commission may want to undertake;>
18-4 <(6) a director of consumer affairs and public
18-5 information;>
18-6 <(7) a director of utility evaluation;>
18-7 <(8) a director of energy conservation; and>
18-8 <(9) a general counsel>.
18-9 SECTION 2.03. (a) Article II, Public Utility Regulatory Act
18-10 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
18-11 amending Section 15A and adding Section 15B to read as follows:
18-12 Sec. 15A. (a) The independent Office of Public Utility
18-13 Counsel is hereby established to represent the interests of
18-14 residential and small commercial consumers.
18-15 (b) The chief executive of the office <Office of Public
18-16 Utility Counsel> is the public utility counsel, hereinafter
18-17 referred to as counsellor. The counsellor is appointed by the
18-18 governor with the advice and consent of the senate to a two-year
18-19 term that expires on February 1 of the final year of the term.
18-20 Appointment of the public utility counsel shall be made without
18-21 regard to the race, color, handicap, sex, religion, age, or
18-22 national origin of the appointee <Immediately after this section
18-23 takes effect, the governor shall, with the advice and consent of
18-24 the senate, appoint the public utility counsel>.
18-25 (c) The counsellor may employ such lawyers, economists,
18-26 engineers, consultants, statisticians, accountants, clerical staff,
18-27 and other employees as he or she deems necessary to carry out the
19-1 provisions of this section. All employees shall receive such
19-2 compensation as is fixed by the legislature from the assessment
19-3 imposed by Section 78 of this Act. The public utility counsel or
19-4 the counsellor's designee shall develop an intra-agency career
19-5 ladder program. The program shall require intra-agency postings of
19-6 all non-entry-level positions concurrently with any public posting.
19-7 The public utility counsel or the counsellor's designee shall
19-8 develop a system of annual performance evaluations. All merit pay
19-9 for office employees must be based on the system established under
19-10 this subsection. The office shall provide to the public utility
19-11 counsel and its employees, as often as necessary, information
19-12 regarding their qualification for office or employment under this
19-13 Act and their responsibilities under applicable laws relating to
19-14 standards of conduct for state officers or employees.
19-15 (d) The counsellor shall be a resident of Texas and admitted
19-16 to the practice of law in this state who has demonstrated a strong
19-17 commitment and involvement in efforts to safeguard the rights of
19-18 the public and possesses the knowledge and experience necessary to
19-19 practice effectively in utility proceedings. A person is not
19-20 eligible for appointment as public utility counsel if the person or
19-21 the person's spouse:
19-22 (1) is employed by or participates in the management
19-23 of a business entity or other organization regulated by the
19-24 commission or receiving funds from the commission;
19-25 (2) owns or controls, directly or indirectly, more
19-26 than a 10 percent interest or a pecuniary interest with a value
19-27 exceeding $10,000 in:
20-1 (A) a business entity or other organization
20-2 regulated by the commission or receiving funds from the commission
20-3 or the office; or
20-4 (B) any utility competitor, utility supplier, or
20-5 other entity affected by a commission decision in a manner other
20-6 than by the setting of rates for that class of customer;
20-7 (3) uses or receives a substantial amount of tangible
20-8 goods, services, or funds from the commission or the office, other
20-9 than compensation or reimbursement authorized by law for counsellor
20-10 or commission membership, attendance, or expenses; or
20-11 (4) notwithstanding Subdivision (2) of this
20-12 subsection, has an interest in a mutual fund or retirement fund in
20-13 which more than 10 percent of the fund's holdings is in a single
20-14 utility, utility competitor, or utility supplier in this state and
20-15 the person does not disclose this information to the governor,
20-16 senate, or other entity, as appropriate.
20-17 (e) A person may not serve as counsellor or act as the
20-18 general counsel for the office if the person is required to
20-19 register as a lobbyist under Chapter 305, Government Code, because
20-20 of the person's activities for compensation related to the
20-21 operation of the commission or the office.
20-22 (f) An officer, employee, or paid consultant of a trade
20-23 association in the field of public utilities may not serve as
20-24 counsellor or be an employee of the office who is exempt from the
20-25 state's position classification plan or is compensated at or above
20-26 the amount prescribed by the General Appropriations Act for step 1,
20-27 salary group 17, of the position classification salary schedule. A
21-1 person who is the spouse of an officer, manager, or paid consultant
21-2 of a trade association in the field of public utilities may not
21-3 serve as counsellor and may not be an office employee who is exempt
21-4 from the state's position classification plan or is compensated at
21-5 or above the amount prescribed by the General Appropriations Act
21-6 for step 1, salary group 17, of the position classification salary
21-7 schedule. For the purposes of this subsection, a trade association
21-8 is a nonprofit, cooperative, and voluntarily joined association of
21-9 business or professional persons who are employed by public
21-10 utilities or utility competitors to assist the public utility
21-11 industry, a utility competitor, or the industry's or competitor's
21-12 employees in dealing with mutual business or professional problems
21-13 and in promoting their common interest.
21-14 (g) Notwithstanding any other provision of this Act, a
21-15 person otherwise ineligible because of the application of
21-16 Subdivision (2) of Subsection (d) of this section may be appointed
21-17 as counsellor and may serve as counsellor if the person:
21-18 (1) notifies the attorney general and commission that
21-19 the person is ineligible because of the application of Subdivision
21-20 (2) of Subsection (d) of this section; and
21-21 (2) divests the person or the person's spouse of the
21-22 ownership or control before appointment, or within a reasonable
21-23 time if the person is already serving at the time Subdivision (2)
21-24 of Subsection (d) of this section first applies to the person.
21-25 (h) During the period of the counsellor's employment and for
21-26 a period of two years following the termination of employment, it
21-27 shall be unlawful for any person employed as counsellor to have a
22-1 direct or indirect interest in any utility company regulated under
22-2 the Public Utility Regulatory Act, to provide legal services
22-3 directly or indirectly to or be employed in any capacity by a
22-4 utility company regulated under the Public Utility Regulatory Act,
22-5 its parent, or its subsidiary companies, corporations, or
22-6 cooperatives or a utility competitor, utility supplier, or other
22-7 entity affected in a manner other than by the setting of rates for
22-8 that class of customer; but such person may otherwise engage in the
22-9 private practice of law after the termination of employment as the
22-10 counsellor. It is a ground for removal from office if the
22-11 counsellor:
22-12 (1) does not have at the time of appointment the
22-13 qualifications required by this section;
22-14 (2) does not maintain during service as counsellor the
22-15 qualifications required by this section;
22-16 (3) violates a prohibition established by this
22-17 section; or
22-18 (4) cannot discharge the counsellor's duties for a
22-19 substantial part of the term for which the counsellor is appointed
22-20 because of illness or disability.
22-21 (i) The validity of an action of the office is not affected
22-22 by the fact that it is taken when a ground for removal of the
22-23 counsellor exists.
22-24 (j) The office shall file annually with the governor and the
22-25 presiding officer of each house of the legislature a complete and
22-26 detailed written report accounting for all funds received and
22-27 disbursed by the office during the preceding fiscal year. The
23-1 annual report must be in the form and reported in the time provided
23-2 by the General Appropriations Act.
23-3 (k) The office shall prepare information of public interest
23-4 describing the functions of the office. The office shall make the
23-5 information available to the public and appropriate state agencies.
23-6 (l) The counsellor or the counsellor's designee shall
23-7 prepare and maintain a written policy statement to assure
23-8 implementation of a program of equal employment opportunity under
23-9 which all personnel transactions are made without regard to race,
23-10 color, handicap, sex, religion, age, or national origin. The
23-11 policy statement must include:
23-12 (1) personnel policies, including policies relating to
23-13 recruitment, evaluation, selection, appointment, training, and
23-14 promotion of personnel;
23-15 (2) a comprehensive analysis of the office work force
23-16 that meets federal and state guidelines;
23-17 (3) procedures by which a determination can be made of
23-18 significant underutilization in the office work force of all
23-19 persons for whom federal or state guidelines encourage a more
23-20 equitable balance; and
23-21 (4) reasonable methods to address those areas of
23-22 significant underutilization appropriately.
23-23 (m) A policy statement prepared under Subsection (l) of this
23-24 section must cover an annual period, be updated at least annually,
23-25 and be filed with the governor's office and the Commission on Human
23-26 Rights. The governor's office shall deliver a biennial report to
23-27 the legislature based on the information received under this
24-1 subsection. The report may be made separately or as a part of
24-2 other biennial reports made to the legislature.
24-3 (n) The office shall prepare and maintain a written plan
24-4 that describes how a person who does not speak English can be
24-5 provided reasonable access to the office's programs. The office
24-6 shall also comply with federal and state laws for program and
24-7 facility accessibility.
24-8 (o) In this section, an entity or utility supplier is
24-9 considered to be affected in a manner other than by the setting of
24-10 rates for that class of customer if during a relevant calendar year
24-11 the entity provides fuel, utility-related goods, utility-related
24-12 products, or utility-related services to a regulated or unregulated
24-13 provider of telecommunications or electric services or to an
24-14 affiliated interest in an amount equal to the lesser of $10,000 or
24-15 10 percent of the person's business.
24-16 Sec. 15B. (a) <(f)> The Office of Public Utility Counsel:
24-17 (1) shall assess the impact of utility rate changes
24-18 and other regulatory actions on residential consumers in the State
24-19 of Texas and shall be an advocate in its own name of positions most
24-20 advantageous to a substantial number of such consumers as
24-21 determined by the counsellor;
24-22 (2) may appear or intervene as a matter of right as a
24-23 party or otherwise on behalf of residential consumers, as a class,
24-24 in all proceedings before the commission;
24-25 (3) may appear or intervene as a matter of right as a
24-26 party or otherwise on behalf of small commercial consumers, as a
24-27 class, in all proceedings where it is deemed by the counsel that
25-1 small commercial consumers are in need of representation;<.>
25-2 (4) may initiate or intervene as a matter of right or
25-3 otherwise appear in any judicial proceedings involving or arising
25-4 out of any action taken by an administrative agency in a proceeding
25-5 in which the counsel was authorized to appear;
25-6 (5) may have access as any party, other than staff, to
25-7 all records gathered by the commission under the authority of
25-8 Subsection (a) of Section 29 of this Act;
25-9 (6) may obtain discovery of any nonprivileged matter
25-10 which is relevant to the subject matter involved in any proceeding
25-11 or petition before the commission;
25-12 (7) may represent individual residential and small
25-13 commercial consumers with respect to their disputed complaints
25-14 concerning utility services unresolved before the commission; and
25-15 (8) may recommend legislation to the legislature which
25-16 in its judgment would positively affect the interests of
25-17 residential and small commercial consumers.
25-18 (b) <(g)> Nothing in this section shall be construed as in
25-19 any way limiting the authority of the commission to represent
25-20 residential or small commercial consumers.
25-21 (c) <(h)> The appearance of the Public Counsel in any
25-22 proceeding in no way precludes the appearance of other parties on
25-23 behalf of residential ratepayers or small commercial consumers.
25-24 The Public Counsel shall not be grouped with any other parties.
25-25 (d) <(i)> There shall be only one Office of Public Utility
25-26 Counsel even though that office may be referenced in one or more
25-27 Acts of the 68th Legislature.
26-1 (b) The changes in law made by this section relating to the
26-2 requirements for service as public utility counsel apply only to an
26-3 appointment made on or after the effective date of this section and
26-4 do not affect the entitlement of the public utility counsel serving
26-5 on August 31, 1993, to continue to hold office for the remainder of
26-6 the term for which the person was appointed.
26-7 SECTION 2.04. (a) Subsections (c), (d), and (l), Section
26-8 18, Public Utility Regulatory Act (Article 1446c, Vernon's Texas
26-9 Civil Statutes), are amended to read as follows:
26-10 (c) Except as provided by Subsections (l) and (m) of this
26-11 section and Section 18A of this Act, the commission shall only
26-12 have the following jurisdiction over all telecommunications
26-13 utilities who are not dominant carriers:
26-14 (1) to require registration as provided in Subsection
26-15 (d) of this section;
26-16 (2) to conduct such investigations as are necessary to
26-17 determine the existence, impact, and scope of competition in the
26-18 telecommunications industry, including identifying dominant
26-19 carriers in the local exchange and intralata interexchange
26-20 telecommunications industry and defining the telecommunications
26-21 market or markets, and in connection therewith may call and hold
26-22 hearings, issue subpoenas to compel the attendance of witnesses and
26-23 the production of papers and documents, and make findings of fact
26-24 and decisions with respect to administering the provisions of this
26-25 Act or the rules, orders, and other actions of the commission;
26-26 (3) to require the filing of such reports as the
26-27 commission may direct from time to time;
27-1 (4) to require the maintenance of statewide average
27-2 rates or prices of telecommunications service;
27-3 (5) to require that every local exchange area have
27-4 access to interexchange telecommunications service, except that an
27-5 interexchange telecommunications carrier must be allowed to
27-6 discontinue service to a local exchange area if comparable service
27-7 is available in the area and the discontinuance is not contrary to
27-8 the public interest. This section does not authorize the
27-9 commission to require an interexchange telecommunications carrier
27-10 that has not provided services to a local exchange area during the
27-11 previous 12 months and that has never provided services to that
27-12 same local exchange area for a cumulative period of one year at any
27-13 time in the past to initiate services to that local exchange area;
27-14 and
27-15 (6) to require the quality of interexchange
27-16 telecommunications service provided in each exchange to be adequate
27-17 to protect the public interest and the interests of customers of
27-18 that exchange if the commission determines that service to a local
27-19 exchange has deteriorated to the point that long distance service
27-20 is not reliable.
27-21 (d) All providers of communications service described in
27-22 Subsection (c) of this section who are providing such service to
27-23 the public on the effective date of this Act shall register with
27-24 the commission within 90 days of the effective date of this Act
27-25 unless the provider has previously registered with the commission.
27-26 All providers of communications service described in Subsection (c)
27-27 of this section who commence such service to the public thereafter
28-1 shall register with the commission within 30 days of commencing
28-2 service. Such registration shall be accomplished by filing with
28-3 the commission a description of the location and type of service
28-4 provided, the cost to the public of such service, and such other
28-5 registration information as the commission may direct.
28-6 Notwithstanding any other provision of this Act, an interexchange
28-7 telecommunications carrier doing business in this state shall
28-8 continue to maintain on file with the commission tariffs or lists
28-9 governing the terms of providing its services.
28-10 (l) Notwithstanding any other provision of this Act, the
28-11 commission may enter such orders as may be necessary to protect the
28-12 public interest, including the imposition on any specific service
28-13 or services of its full regulatory authority under Articles III
28-14 through XI of this Act, if the commission upon complaint from
28-15 another interexchange telecommunications carrier finds by a
28-16 preponderance of the evidence upon notice and hearing that an
28-17 interexchange telecommunications carrier has engaged in predatory
28-18 pricing or attempted to engage in predatory pricing <conduct that
28-19 demonstrates the ability to control prices in a manner adverse to
28-20 the public interest>.
28-21 (b) Sections 100 and 101, Public Utility Regulatory Act
28-22 (Article 1446c, Vernon's Texas Civil Statutes), are repealed.
28-23 SECTION 2.05. Section 16, Public Utility Regulatory Act
28-24 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
28-25 as follows:
28-26 Sec. 16. (a) The commission has the general power to
28-27 regulate and supervise the business of every public utility within
29-1 its jurisdiction and to do all things, whether specifically
29-2 designated in this Act or implied herein, necessary and convenient
29-3 to the exercise of this power and jurisdiction. The commission
29-4 shall make and enforce rules reasonably required in the exercise of
29-5 its powers and jurisdiction, including rules governing practice and
29-6 procedure before the commission. The commission shall adopt rules
29-7 authorizing an administrative law judge or hearings examiner to:
29-8 (1) limit the amount of time that a party may have to
29-9 present its case;
29-10 (2) limit the number of requests for information that
29-11 a party may make in a contested case;
29-12 (3) require a party to a contested case to identify
29-13 contested issues and facts before the hearing begins and to limit
29-14 cross-examination to only those issues and facts and to any new
29-15 issues that may arise as a result of the discovery process; or
29-16 (4) group parties, other than the office, that have
29-17 the same position on an issue to facilitate cross-examination on
29-18 that issue, provided that each party in a group is entitled to
29-19 present that party's witnesses for cross-examination during the
29-20 hearing.
29-21 (b) Rules adopted under Subsection (a) of this section must
29-22 ensure that all parties receive due process.
29-23 (c) The commission may call and hold hearings, administer
29-24 oaths, receive evidence at hearings, issue subpoenas to compel the
29-25 attendance of witnesses and the production of papers and documents,
29-26 and make findings of fact and decisions with respect to
29-27 administering the provisions of this Act or the rules, orders, or
30-1 other actions of the commission. Notwithstanding any other
30-2 provision of this Act or other law, in proceedings other than those
30-3 involving major rate changes, the commission may delegate to an
30-4 administrative law judge or hearings examiner the authority to make
30-5 a final decision and to issue findings of fact, conclusions of law,
30-6 and other necessary orders in a proceeding in which there is no
30-7 contested issue of fact or law. The commission, by rule, shall
30-8 define the procedures by which it delegates final decision making
30-9 authority authorized by this section. For review purposes the
30-10 final decision of the administrative law judge or hearings examiner
30-11 has the same effect as a final decision of the commission unless a
30-12 commissioner requests formal review of the decision.
30-13 (d) The commission may change a finding of fact or
30-14 conclusion of law made by the administrative law judge or hearings
30-15 examiner or vacate or modify an order issued by the administrative
30-16 law judge or hearings examiner only if the commission:
30-17 (1) determines that the administrative law judge or
30-18 hearings examiner:
30-19 (A) did not properly apply or interpret
30-20 applicable law, agency rules or policies, or prior administrative
30-21 decisions; or
30-22 (B) issued a finding of fact that is not
30-23 supported by a preponderance of the evidence; or
30-24 (2) determines that an agency rule or policy or a
30-25 prior administrative decision on which the administrative law judge
30-26 or hearings examiner relied is incorrect or should be changed.
30-27 (e) The commission shall state in writing the specific
31-1 reason and legal basis for its determination under Subsection (d)
31-2 of this section.
31-3 (f) An administrative law judge or hearings examiner, on the
31-4 judge's or examiner's own motion or on motion of a party and after
31-5 notice and an opportunity for a hearing, may impose appropriate
31-6 sanctions as provided by Subsection (g) of this section against a
31-7 party or its representative for:
31-8 (1) filing a motion or pleading that is groundless and
31-9 brought:
31-10 (A) in bad faith;
31-11 (B) for the purpose of harassment; or
31-12 (C) for any other improper purpose, such as to
31-13 cause unnecessary delay or needless increase in the cost of the
31-14 proceeding;
31-15 (2) abuse of the discovery process in seeking, making,
31-16 or resisting discovery; or
31-17 (3) failure to obey an order of the administrative law
31-18 judge, hearings examiner, or commission.
31-19 (g) A sanction imposed under Subsection (f) of this section
31-20 may include, as appropriate and justified, issuance of an order:
31-21 (1) disallowing further discovery of any kind or of a
31-22 particular kind by the offending party;
31-23 (2) charging all or any part of the expenses of
31-24 discovery against the offending party or its representative;
31-25 (3) holding that designated facts be deemed admitted
31-26 for purposes of the proceeding;
31-27 (4) refusing to allow the offending party to support
32-1 or oppose a designated claim or defense or prohibiting the party
32-2 from introducing designated matters in evidence;
32-3 (5) disallowing in whole or in part requests for
32-4 relief by the offending party and excluding evidence in support of
32-5 such requests;
32-6 (6) punishing the offending party or its
32-7 representative for contempt to the same extent as a district court;
32-8 (7) requiring the offending party or its
32-9 representative to pay, at the time ordered by the administrative
32-10 law judge or hearings examiner, the reasonable expenses, including
32-11 attorney fees, incurred by other parties because of the
32-12 sanctionable behavior; and
32-13 (8) striking pleadings or testimony, or both, in whole
32-14 or in part, or staying further proceedings until the order is
32-15 obeyed.
32-16 (h) <(b) The commission shall develop a long-term statewide
32-17 electrical energy forecast which shall be sent to the governor
32-18 biennially. The forecast will include an assessment of how
32-19 alternative energy sources, conservation, and load management will
32-20 meet the state's electricity needs.>
32-21 <(c) Every generating electric utility in the state shall
32-22 prepare and transmit to the commission by December 31, 1983, and
32-23 every two years thereafter a report specifying at least a 10-year
32-24 forecast for assessments of load and resources for its service
32-25 area. The report shall include a list of facilities which will be
32-26 required to supply electric power during the forecast periods. The
32-27 report shall be in a form prescribed by the commission. The report
33-1 shall include:>
33-2 <(1) a tabulation of estimated peak load, resources,
33-3 and reserve margins for each year during the forecast or assessment
33-4 period;>
33-5 <(2) a list of existing electric generating plants in
33-6 service with a description of planned and potential generating
33-7 capacity at existing sites;>
33-8 <(3) a list of facilities which will be needed to
33-9 serve additional electrical requirements identified in the
33-10 forecasts or assessments, the general location of such facilities,
33-11 and the anticipated types of fuel to be utilized in the proposed
33-12 facilities, including an estimation of shutdown costs and disposal
33-13 of spent fuel for nuclear power plants;>
33-14 <(4) a description of additional system capacity which
33-15 might be achieved through, among other things, improvements in (A)
33-16 generating or transmission efficiency, (B) importation of power,
33-17 (C) interstate or interregional pooling, (D) other improvements in
33-18 efficiencies of operation; and (E) conservation measures;>
33-19 <(5) an estimation of the mix and type of fuel
33-20 resources for the forecast or assessment period;>
33-21 <(6) an annual load duration curve and a forecast of
33-22 anticipated peak loads for the forecast or assessment period for
33-23 the residential, commercial, industrial, and such other major
33-24 demand sectors in the service area of the electric utility as the
33-25 commission shall determine; and>
33-26 <(7) a description of projected population growth,
33-27 urban development, industrial expansion, and other growth factors
34-1 influencing increased demand for electric energy and the basis for
34-2 such projections.>
34-3 <(d) The commission shall establish and every electric
34-4 utility shall utilize a reporting methodology for preparation of
34-5 the forecasts of future load and resources.>
34-6 <(e) The commission shall review and evaluate the electric
34-7 utilities' forecast of load and resources and any public comment on
34-8 population growth estimates prepared by Bureau of Business
34-9 Research, University of Texas at Austin.>
34-10 <(f) Within 12 months after the receipt of the reports
34-11 required in Subsection (b) of this section, the commission shall
34-12 hold a public hearing and subsequently issue a final report to the
34-13 governor and notify every electric utility of the commission's
34-14 electric forecast for that utility. The commission shall consider
34-15 its electric forecast in all certification proceedings covering new
34-16 generation plant.>
34-17 <(g)> The commission shall make and enforce rules to
34-18 encourage the economical production of electric energy by
34-19 qualifying cogenerators and qualifying small power producers.
34-20 (i) <(h)> The commission shall inquire into the management
34-21 of the business of all public utilities under its jurisdiction,
34-22 shall keep itself informed as to the manner and method in which the
34-23 management and business is conducted, and shall obtain from any
34-24 public utility all necessary information to enable the commission
34-25 to perform management audits. The commission may audit each
34-26 utility under the jurisdiction of the commission as frequently as
34-27 needed<, but shall audit each utility at least once every 10
35-1 years>. Six months after any audit, the utility shall report to
35-2 the commission on the status of the implementation of the
35-3 recommendations of the audit and shall file subsequent reports at
35-4 such times as the commission deems appropriate.
35-5 SECTION 2.06. Article III, Public Utility Regulatory Act
35-6 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
35-7 adding Section 19 to read as follows:
35-8 Sec. 19. (a) The commission by rule shall develop an
35-9 integrated resource planning process to provide reliable energy
35-10 service at the lowest overall cost.
35-11 (b) The commission shall adopt and periodically update a
35-12 statewide integrated resource plan. The commission shall send the
35-13 plan to the governor when it adopts or revises the plan and notify
35-14 each electric utility of the approval of the statewide plan and of
35-15 the utility's individual utility plan.
35-16 (c) The statewide plan shall include:
35-17 (1) the approved individual plans of electric
35-18 generating utilities;
35-19 (2) an assessment of how alternative energy sources,
35-20 conservation, and load management will meet the state's electricity
35-21 needs;
35-22 (3) the commission's goals for the use of various
35-23 energy resources; and
35-24 (4) other information required by the commission.
35-25 (d) In the manner specified by the commission, each
35-26 generating electric utility shall submit to the commission on a
35-27 staggered schedule adopted by the commission a plan to increase its
36-1 supply of electricity or to decrease the demands made on its system
36-2 by its customers.
36-3 (e) The contents of such a plan shall include but are not
36-4 limited to the methods that are used by the utility to:
36-5 (1) forecast the future demands; and
36-6 (2) determine the lowest cost combination of resources
36-7 to meet the demands or the lowest cost method to reduce the
36-8 demands.
36-9 (f) After a utility has filed its plan, the commission shall
36-10 convene a public hearing on the adequacy of the plan. A commission
36-11 hearing is not required for a plan filed by a municipally owned
36-12 electric utility, or a plan filed by a river authority or
36-13 generating electric cooperative that does not intend to build a new
36-14 generating plant. At the hearing, any interested person may
36-15 intervene, present evidence, and cross-examine witnesses regarding
36-16 the contents and adequacy of the plan.
36-17 (g) After the hearing, the commission shall determine
36-18 whether:
36-19 (1) the utility's plan is based on substantially
36-20 accurate data and an adequate method of forecasting;
36-21 (2) the plan identifies and takes into account any
36-22 present and projected reductions in the demand for energy that may
36-23 result from measures to improve conservation and energy efficiency
36-24 in various customer classes of the area being served;
36-25 (3) the plan adequately demonstrates the economic,
36-26 environmental, and other benefits to this state and to the
36-27 customers of the utility associated with the following possible
37-1 measures and sources of supply:
37-2 (A) improvements in conservation and energy
37-3 efficiency;
37-4 (B) demand-side management;
37-5 (C) purchases and sales of power;
37-6 (D) wheeling of power;
37-7 (E) renewable resources;
37-8 (F) cogeneration; and
37-9 (G) any other facilities; and
37-10 (4) the plan demonstrates the participation of
37-11 nongenerating utilities in the development of the plan, if the
37-12 utility makes wholesale sales to nongenerating utilities.
37-13 (h) The commission may determine the measures and sources of
37-14 supply set forth in Subdivision (3) of Subsection (g) of this
37-15 section that, on balance, provide reliable energy services at the
37-16 lowest overall cost.
37-17 (i) Within 365 days after the date on which a utility has
37-18 filed its plan, the commission shall issue a final order on the
37-19 plan. The commission may approve, disapprove, or amend and approve
37-20 the plan.
37-21 (j) In carrying out its duties related to the integrated
37-22 resource planning process, the commission may:
37-23 (1) allow timely recovery of reasonable costs of
37-24 conservation, load management, and purchased power, notwithstanding
37-25 Subdivision (1) of Subsection (g) of Section 43 of this Act;
37-26 (2) authorize additional incentives for conservation,
37-27 load management, purchased power, and renewable resources;
38-1 (3) require a utility to provide transmission service
38-2 to another utility or any other entity authorized to generate and
38-3 sell electricity; and
38-4 (4) review the state's transmission system to
38-5 determine and make recommendations to electric utilities on the
38-6 need to build new power lines, upgrade power lines, and make other
38-7 improvements and additions as necessary, and who should pay the
38-8 cost of these improvements if made, review the actions of the
38-9 electric utilities in light of such recommendations, and take such
38-10 actions into account in fixing a reasonable return on invested
38-11 capital under Subsection (b) of Section 39 of this Act.
38-12 (k) Before permitting cost recovery or incentives for the
38-13 utility for a conservation or demand-side management program, the
38-14 commission must first find that the program is cost-effective in
38-15 comparison with all other available resources.
38-16 (l) In prescribing requirements under this section,
38-17 including reporting requirements, the commission shall consider and
38-18 recognize the different generating capacities of small and large
38-19 utilities.
38-20 (m) The process must include procedures for electric
38-21 utilities to solicit proposals for alternative energy resources,
38-22 whether supply-side or demand-side. In any such solicitation, the
38-23 utility shall consider the feasibility, cost, reliability, and
38-24 other relevant factors of the solicited resources.
38-25 (n) The commission may impose and revise limits on the cost
38-26 of a resource addition that may be included in the utility's
38-27 invested capital, for ratemaking purposes, based on the costs
39-1 relied on by the commission in approving the utility's integrated
39-2 resource plan or certificate of convenience and necessity.
39-3 (o) In addition to its other authority and responsibility
39-4 under this section, the commission shall establish rules and
39-5 guidelines which will ensure the development of renewable energy
39-6 technologies consistent with the criteria of the integrated
39-7 resource planning process.
39-8 SECTION 2.07. Subsection (b), Section 39, Public Utility
39-9 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
39-10 amended to read as follows:
39-11 (b) In fixing a reasonable return on invested capital, the
39-12 regulatory authority shall consider, in addition to other
39-13 applicable factors, efforts to comply with the most recent
39-14 statewide integrated resource plan and the utility's most recent
39-15 approved individual integrated resource <energy> plan, the efforts
39-16 and achievements of such utility in the conservation of resources,
39-17 the quality of the utility's services, the efficiency of the
39-18 utility's operations, and the quality of the utility's management.
39-19 SECTION 2.08. Subsections (a) and (c), Section 52, Public
39-20 Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
39-21 Statutes), are amended to read as follows:
39-22 (a) A public utility shall submit to the commission an
39-23 application to obtain a certificate of public convenience and
39-24 necessity or an amendment thereof. The utility shall file
39-25 concurrently with the office a copy of the application.
39-26 (c) Each applicant for a certificate shall file with the
39-27 commission and the office such evidence as is required by the
40-1 commission to show that the applicant has received the required
40-2 consent, franchise, or permit of the proper municipality or other
40-3 public authority.
40-4 SECTION 2.09. Section 52, Public Utility Regulatory Act
40-5 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
40-6 adding Subsection (d) to read as follows:
40-7 (d) Except as provided by rule, the commission may not
40-8 accept an application for a certificate of convenience and
40-9 necessity relating to the construction of an electric generating
40-10 plant if the utility's most recent individual integrated resource
40-11 plan has been filed with the commission but has not yet been
40-12 approved.
40-13 SECTION 2.10. Section 54, Public Utility Regulatory Act
40-14 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
40-15 as follows:
40-16 Sec. 54. (a) When an application for a certificate of
40-17 public convenience and necessity is filed, the commission shall
40-18 give notice of such application to interested parties and, if
40-19 requested, shall fix a time and place for a hearing and give notice
40-20 of the hearing. Any person interested in the application may
40-21 intervene at the hearing.
40-22 (b) Except for certificates for prior operations granted
40-23 under Section 53 and certificates for the construction of an
40-24 electric generating plant, the commission may grant applications
40-25 and issue certificates only if the commission finds that the
40-26 certificate is necessary for the service, accommodation,
40-27 convenience, or safety of the public. The commission may grant
41-1 applications and issue certificates for the construction of an
41-2 electric generating plant only if the proposed plant has been
41-3 approved by the commission as part of the utility's most recent
41-4 approved individual integrated resource plan and the utility has
41-5 conducted a solicitation based on the resource for which it is
41-6 seeking a certificate. The commission may issue the certificate as
41-7 prayed for, or refuse to issue it, or issue it for the construction
41-8 of a portion only of the contemplated system or facility or
41-9 extension thereof, or for the partial exercise only of the right or
41-10 privilege.
41-11 (c) Except as provided by Subsection (d) of this section,
41-12 certificates <Certificates> of convenience and necessity shall be
41-13 granted on a nondiscriminatory basis after consideration by the
41-14 commission of the adequacy of existing service, the need for
41-15 additional service, the effect of the granting of a certificate on
41-16 the recipient of the certificate and on any public utility of the
41-17 same kind already serving the proximate area, and on such factors
41-18 as community values, recreational and park areas, historical and
41-19 aesthetic values, environmental integrity, and the probable
41-20 improvement of service or lowering of cost to consumers in such
41-21 area resulting from the granting of such certificate.
41-22 (d) A <In addition to the requirements of this section, an
41-23 electric utility applying for certificate of convenience and
41-24 necessity for a new generating plant must first file a notice of
41-25 intent to file an application for certification.>
41-26 <(1) The notice of intent shall set out alternative
41-27 methods considered to help meet the electrical needs, related
42-1 electrical facilities, and the advantages and disadvantages of the
42-2 alternatives. In addition, the notice shall indicate compatibility
42-3 with the most recent long-term forecast provided in this Act.>
42-4 <(2) The commission shall conduct a hearing on the
42-5 notice of intent to determine the appropriateness of the proposed
42-6 generating plant as compared to the alternatives and shall issue a
42-7 report on its findings. In conjunction with the issuance of the
42-8 report, the commission shall render a decision approving or
42-9 disapproving the notice. Such decision shall be rendered within
42-10 180 days from the date of filing the notice of intent.>
42-11 <(e) On approval of the notice of intent, a> utility may
42-12 apply for certification for a generating plant, site, and site
42-13 facilities no later than 12 months before construction is to
42-14 commence.
42-15 (1) The application for certification shall contain
42-16 such information as the commission may require to approve <justify>
42-17 the proposed generating plant, site, and site facilities and to
42-18 allow a determination showing compatibility with the utility's most
42-19 recent approved individual integrated resource plan <forecast>.
42-20 (2) Certificates of convenience and necessity shall be
42-21 granted on a nondiscriminatory basis if the commission finds that
42-22 the proposed new plant is required under the utility's most recent
42-23 approved individual integrated resource plan <service area
42-24 forecast, that it is the best and most economical choice of
42-25 technology for that service area as compatible with the
42-26 commission's forecast, and that conservation and alternative energy
42-27 sources cannot meet the need>. In making this determination, the
43-1 commission shall review the solicitation process and the utility's
43-2 decision with respect to the offers it received. In determining
43-3 whether to grant a certificate, the commission shall consider the
43-4 factors prescribed by this subsection and Subsection (c) of this
43-5 section. The commission may not reconsider issues that were
43-6 decided by the commission in the utility's most recent individual
43-7 integrated resource plan.
43-8 (e) The <(f) If the application for a certificate of
43-9 convenience and necessity involves new transmission facilities,
43-10 the> commission shall approve or deny an application for a
43-11 certificate of convenience and necessity relating to construction
43-12 of an electric generating plant within 180 days <the application
43-13 within one year> after the date the application is filed. If the
43-14 commission does not approve or deny the application before this
43-15 deadline, any party may seek a writ of mandamus in a district court
43-16 of Travis County to compel the commission to make a decision on the
43-17 application.
43-18 SECTION 2.11. Section 62, Public Utility Regulatory Act
43-19 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
43-20 adding Subsection (c) to read as follows:
43-21 (c) The commission may revoke a certificate for a generating
43-22 plant under construction if the commission finds that construction
43-23 of the plant is no longer the lowest-cost option taking into
43-24 consideration the cost to complete the plant relative to other
43-25 alternatives and finds that it is no longer in the public interest.
43-26 The commission shall provide appropriate treatment for all prudent
43-27 expenditures associated with the planning, design, construction,
44-1 cancellation, and dismantlement of the plant.
44-2 SECTION 2.12. Section 43A, Public Utility Regulatory Act
44-3 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
44-4 as follows:
44-5 Sec. 43A. A local exchange company may make changes in its
44-6 tariffed rules, regulations, or practices that do not affect its
44-7 charges or rates by filing the proposed changes concurrently with
44-8 the office and <with> the commission at least 35 days prior to the
44-9 effective date of the changes. The commission may require such
44-10 notice to ratepayers as it considers appropriate. The commission
44-11 may on complaint by any affected person or on its own motion hold a
44-12 hearing, after reasonable notice, to determine the propriety of the
44-13 change. Pending the hearing and decision, the commission may
44-14 suspend the operation of the proposed changes for a period not to
44-15 exceed 120 days after the date on which the changes would otherwise
44-16 go into effect. The commission shall approve, deny, or modify the
44-17 proposed changes before expiration of the suspension period. In
44-18 any proceeding under this section, the burden of proving that the
44-19 requested relief is in the public interest and complies with this
44-20 Act shall be borne by the local exchange company.
44-21 SECTION 2.13. Sections 63, 64, and 65, Public Utility
44-22 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), are
44-23 amended to read as follows:
44-24 Sec. 63. No public utility may sell, acquire, lease, or rent
44-25 any plant as an operating unit or system in this state for a total
44-26 consideration in excess of $100,000 or merge or consolidate with
44-27 another public utility operating in this state unless the public
45-1 utility reports such transaction to the commission and the office
45-2 within a reasonable time. All transactions involving the sale of
45-3 50 percent or more of the stock of a public utility shall also be
45-4 reported to the commission and the office within a reasonable time.
45-5 On the filing of a report with the commission, the commission shall
45-6 investigate the same with or without public hearing, to determine
45-7 whether the action is consistent with the public interest. In
45-8 reaching its determination, the commission shall take into
45-9 consideration the reasonable value of the property, facilities, or
45-10 securities to be acquired, disposed of, merged or consolidated. If
45-11 the commission finds that such transactions are not in the public
45-12 interest, the commission shall take the effect of the transaction
45-13 into consideration in the rate-making proceedings and disallow the
45-14 effect of such transaction if it will unreasonably affect rates or
45-15 service. The provisions of this section shall not be construed as
45-16 being applicable to the purchase of units of property for
45-17 replacement or to the addition to the facilities of the public
45-18 utility by construction.
45-19 Sec. 64. No public utility may purchase voting stock in
45-20 another public utility doing business in Texas, unless the utility
45-21 reports such purchase to the commission and the office.
45-22 Sec. 65. No public utility may loan money, stocks, bonds,
45-23 notes, or other evidences of indebtedness to any corporation or
45-24 person owning or holding directly or indirectly any stock of the
45-25 public utility unless the public utility reports the transaction to
45-26 the commission and the office within a reasonable time.
45-27 SECTION 2.14. (a) The Public Utility Commission of Texas by
46-1 rule shall adopt a statewide integrated resource planning process
46-2 as required by Section 19, Public Utility Regulatory Act (Article
46-3 1446c, Vernon's Texas Civil Statutes), as added by this article,
46-4 not later than September 1, 1994.
46-5 (b) The changes in law made by this article to Subsection
46-6 (d), Section 52, and Section 54, Public Utility Regulatory Act
46-7 (Article 1446c, Vernon's Texas Civil Statutes), take effect
46-8 September 1, 1994, and apply only to an application for a
46-9 certificate of convenience and necessity filed on or after that
46-10 date, except that, in the case of any utility for which the
46-11 commission has not yet approved an individual integrated resource
46-12 plan as of September 1, 1994, applications for certificates of
46-13 convenience and necessity shall be governed by the law in effect
46-14 prior to the effective date of this Act until the commission
46-15 approves an integrated resource plan for that utility.
46-16 ARTICLE 3
46-17 SECTION 3.01. (a) Article III, Public Utility Regulatory
46-18 Act (Article 1446c, Vernon's Texas Civil Statutes), is amended by
46-19 adding Section 16A to read as follows:
46-20 Sec. 16A. (a) The commission by rule shall adopt procedures
46-21 governing the use of settlements to resolve contested cases.
46-22 (b) The rules shall ensure that:
46-23 (1) each party retains the right to:
46-24 (A) have a full hearing before the commission on
46-25 issues that remain in dispute; and
46-26 (B) judicial review of issues that remain in
46-27 dispute;
47-1 (2) an issue of fact raised by a nonsettling party
47-2 cannot be waived by a settlement or stipulation of the other
47-3 parties; and
47-4 (3) the nonsettling party may use the issue of fact
47-5 raised by that party as the basis for judicial review.
47-6 (b) This section applies only to a proceeding for which a
47-7 final order has not been issued before the effective date of this
47-8 Act. On or after the effective date of this Act, the Public
47-9 Utility Commission of Texas may not approve a settlement unless the
47-10 settlement has been reached in accordance with rules adopted under
47-11 Section 16A, Public Utility Regulatory Act (Article 1446c, Vernon's
47-12 Texas Civil Statutes), as added by this Act, and its subsequent
47-13 amendments.
47-14 SECTION 3.02. Section 30, Public Utility Regulatory Act
47-15 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
47-16 as follows:
47-17 Sec. 30. The regulatory authority may require an annual
47-18 reporting from each utility company of all its expenditures for
47-19 business gifts and entertainment, and institutional,
47-20 consumption-inducing and other advertising or public relations
47-21 expenses. The regulatory authority shall not allow as costs or
47-22 expenses for rate-making purposes any of these expenditures which
47-23 the regulatory authority determines not to be in the public
47-24 interest. The cost of legislative-advocacy expenses shall not in
47-25 any case be allowed as costs or expenses for rate-making purposes.
47-26 Reasonable costs of participating in a proceeding under this Act
47-27 and reasonable charitable or civic contributions may be allowed not
48-1 to exceed the amount approved by the regulatory authority.
48-2 SECTION 3.03. Article VI, Public Utility Regulatory Act
48-3 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
48-4 amending Section 41 and adding Section 41C to read as follows:
48-5 Sec. 41. The components of invested capital and net income
48-6 shall be determined according to the following rules:
48-7 (a) Invested Capital. Utility rates shall be based
48-8 upon the original cost of property used by and useful to the public
48-9 utility in providing service including construction work in
48-10 progress at cost as recorded on the books of the utility. The cost
48-11 of local exchange company pay telephone property, as that term is
48-12 defined by Section 41C of this Act, may not be included in the rate
48-13 base, except as provided by Section 41C of this Act. The inclusion
48-14 of construction work in progress is an exceptional form of rate
48-15 relief to be granted only upon the demonstration by the utility
48-16 that such inclusion is necessary to the financial integrity of the
48-17 utility. Construction work in progress shall not be included in
48-18 the rate base for major projects under construction to the extent
48-19 that such projects have been inefficiently or imprudently planned
48-20 or managed. Original cost shall be the actual money cost, or the
48-21 actual money value of any consideration paid other than money, of
48-22 the property at the time it shall have been dedicated to public
48-23 use, whether by the utility which is the present owner or by a
48-24 predecessor, less depreciation.
48-25 (b) Separations and Allocations. Costs of facilities,
48-26 revenues, expenses, taxes, and reserves shall be separated or
48-27 allocated as prescribed by the regulatory authority.
49-1 (c) Net Income. By "net income" is meant the total
49-2 revenues of the public utility less all reasonable and necessary
49-3 expenses as determined by the regulatory authority. The regulatory
49-4 authority shall determine expenses and revenues in a manner
49-5 consistent with the following:
49-6 (1) Transactions with Affiliated Interests. (A)
49-7 Payment to affiliated interests for costs of any services, or any
49-8 property, right or thing, or for interest expense shall not be
49-9 allowed either as capital cost or as expense except to the extent
49-10 that the regulatory authority shall find such payment to be
49-11 reasonable and necessary for each item or class of items as
49-12 determined by the commission. Any such finding shall include
49-13 specific findings of the reasonableness and necessity of each item
49-14 or class of items allowed and a finding that the price to the
49-15 utility is no higher than prices charged by the supplying affiliate
49-16 to its other affiliates or divisions for the same item or class of
49-17 items, or to unaffiliated persons or corporations within the same
49-18 market area or having the same market conditions. In any case in
49-19 which the commission finds that the test period affiliate expense
49-20 is unreasonable, the commission shall determine the reasonable
49-21 level of the expense and shall include such expense in determining
49-22 the utility's cost of service.
49-23 (B) Notwithstanding the foregoing
49-24 provisions of this subsection, charges to a telecommunications
49-25 utility from an affiliate shall be allowed in cost of service if
49-26 the utility establishes that the costs have been charged,
49-27 attributed, or allocated to the utility in accordance with the
50-1 guidelines and methodology of Parts 32 and 64 of the rules
50-2 promulgated by the Federal Communications Commission, and that the
50-3 resulting cost to the utility is less than if the service were
50-4 acquired by the utility on its own behalf. <The price paid by gas
50-5 utilities to affiliated interests for natural gas from Outer
50-6 Continental Shelf lands shall be subject to a rebuttable
50-7 presumption that such price is reasonable if the price paid does
50-8 not exceed the price permitted by federal regulation if such gas is
50-9 regulated by any federal agency or if not regulated by a federal
50-10 agency does not exceed the price paid by nonaffiliated parties for
50-11 natural gas from Outer Continental Shelf lands. The burden of
50-12 establishing that such a price paid is not reasonable shall be on
50-13 any party challenging the reasonableness of such price.>
50-14 (2) Income Taxes. If the public utility is a
50-15 member of an affiliated group that is eligible to file a
50-16 consolidated income tax return, and if it is advantageous to the
50-17 public utility to do so, income taxes shall be computed as though a
50-18 consolidated return had been so filed and the utility had realized
50-19 its fair share of the savings resulting from the consolidated
50-20 return, unless it is shown to the satisfaction of the regulatory
50-21 authority that it was reasonable to choose not to consolidate
50-22 returns. The amounts of income taxes saved by a consolidated group
50-23 of which a public utility is a member by reason of the elimination
50-24 in the consolidated return of the intercompany profit on purchases
50-25 by the public utility from an affiliate shall be applied to reduce
50-26 the cost of the property or services so purchased. The investment
50-27 tax credit allowed against federal income taxes, to the extent
51-1 retained by the utility, shall be applied as a reduction in the
51-2 rate based contribution of the assets to which such credit applies,
51-3 to the extent and at such rate as allowed by the Internal Revenue
51-4 Code.
51-5 (3) Expenses Disallowed. The regulatory
51-6 authority shall not consider for ratemaking purposes the following
51-7 expenses:
51-8 (A) legislative advocacy expenses, whether
51-9 made directly or indirectly, including but not limited to
51-10 legislative advocacy expenses included in trade association dues;
51-11 (B) payments, except those made under an
51-12 insurance or risk-sharing arrangement executed before the date of
51-13 loss, made to cover costs of an accident, equipment failure, or
51-14 negligence at a utility facility owned by a person or governmental
51-15 body not selling power inside the State of Texas;
51-16 (C) Costs of processing a refund or credit
51-17 under Subsection (e) of Section 43 of this Act; or
51-18 (D) any expenditure found by the
51-19 regulatory authority to be unreasonable, unnecessary, or not in the
51-20 public interest, including but not limited to executive salaries,
51-21 advertising expenses, legal expenses, and civil or administrative
51-22 penalties or fines.
51-23 The regulatory authority may promulgate reasonable rules and
51-24 regulations with respect to the allowance or disallowance of any
51-25 expenses for ratemaking purposes. The commission shall adopt
51-26 reasonable rules with respect to the allowance or disallowance of
51-27 costs of participating in a proceeding under this Act.
52-1 (4) Imputing Directory Advertising to Regulated
52-2 Operations. The commission practice of imputing directory
52-3 advertising to regulated operations will expire September 1, 1995.
52-4 Sec. 41C. (a) The commission shall adopt rules allowing
52-5 providers of pay telephone service to designate certain pay
52-6 telephones as public interest pay telephones. The service of these
52-7 telephones constitutes public interest pay telephone service if the
52-8 utility demonstrates that the pay telephone will not recover its
52-9 cost because the pay telephone is located in:
52-10 (1) a rural or remote area where the volume of traffic
52-11 at the pay telephone is not sufficient to cover the cost of
52-12 providing the service; or
52-13 (2) an area where the expense associated with the
52-14 provision of the pay telephone service is significant due to theft,
52-15 vandalism, or other similar problems such that the volume of
52-16 traffic at the pay telephone is not sufficient to cover the costs
52-17 of providing the service.
52-18 (b) A utility may not include in the company's rate base the
52-19 costs of local exchange company pay telephone property or include
52-20 in the company's revenue and expense calculations the expense of
52-21 providing local exchange company pay telephone service to the
52-22 public.
52-23 (c) A utility may include in the company's cost of service
52-24 the expense of public interest pay telephone property and the
52-25 expense of providing public interest pay telephone service. The
52-26 utility has the burden of proof in establishing that the pay
52-27 telephone service constitutes public interest pay telephone
53-1 service. In addition, it is not sufficient for the utility to
53-2 merely show that the pay telephone is not expected to recover its
53-3 costs.
53-4 (d) The commission shall adopt rules to provide that the
53-5 total value of a contract is considered in determining whether a
53-6 pay telephone included in a contract for the provision of
53-7 telecommunications is a public interest pay telephone.
53-8 (e) The commission shall adopt rules to implement this
53-9 section.
53-10 (f) In this section:
53-11 (1) "Local exchange company pay telephone property"
53-12 means all property the local exchange company requires to provide
53-13 pay telephone service to the public, including the cost of pay
53-14 telephone hardware, pay telephone enclosures, pay telephone
53-15 internal software, lines costs, and switch costs. The term does
53-16 not include property the local exchange company requires to provide
53-17 public interest pay telephone service.
53-18 (2) "Local exchange company pay telephone service"
53-19 means each act done, rendered, or performed, each thing furnished
53-20 or supplied, and each facility used, furnished, or supplied by a
53-21 public utility to provide to the public pay telephone service. The
53-22 term does not include an act, thing, or facility used to provide
53-23 public interest pay telephone service.
53-24 (3) "Public interest pay telephone property" means all
53-25 property the local exchange company requires to provide pay
53-26 telephone service to the public from a pay telephone designated in
53-27 accordance with Subsection (a) of this section, including the cost
54-1 of pay telephone hardware, pay telephone enclosures, pay telephone
54-2 internal software, lines costs, and switch costs.
54-3 (4) "Public interest pay telephone service" means each
54-4 act done, rendered, or performed, each thing furnished or supplied,
54-5 and each facility used, furnished, or supplied by a public utility
54-6 to provide to the public pay telephone service from a pay telephone
54-7 designated in accordance with Subsection (a) of this section.
54-8 SECTION 3.04. Section 42, Public Utility Regulatory Act
54-9 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
54-10 as follows:
54-11 Sec. 42. (a) Whenever the regulatory authority, after
54-12 reasonable notice and hearing, on its own motion or on complaint by
54-13 any affected person, finds that the existing rates of any public
54-14 utility for any service are unreasonable or in any way in violation
54-15 of any provision of law, the regulatory authority shall determine
54-16 the just and reasonable rates, including maximum or minimum rates,
54-17 to be thereafter observed and in force, and shall fix the same by
54-18 order to be served on the public utility; and such rates shall
54-19 constitute the legal rates of the public utility until changed as
54-20 provided in this Act. Whenever a public utility does not itself
54-21 produce or generate that which it distributes, transmits, or
54-22 furnishes to the public for compensation, but obtains the same from
54-23 another source, the regulatory authority shall have the power and
54-24 authority to investigate the cost of such production or generation
54-25 in any investigation of the reasonableness of the rates of such
54-26 public utility.
54-27 (b) Not later than the 120th day after the regulatory
55-1 authority notifies the utility that the regulatory authority has
55-2 decided to proceed with an inquiry under this section relating to
55-3 the rates of the utility, the utility shall file a rate-filing
55-4 package concurrently with the regulatory authority and the office.
55-5 The regulatory authority may grant an extension of the 120-day
55-6 period or waive the rate-filing package requirement on agreement of
55-7 the parties. The regulatory authority shall make a final
55-8 determination concerning the matter not later than the 185th day
55-9 after the date on which the utility files the rate-filing package.
55-10 However, the 185-day period is extended two days for each one day
55-11 of actual hearings on the merits of the case that exceeds 15 days.
55-12 (c) At any time after an initial complaint is filed under
55-13 this section, the regulatory authority may issue an interim order
55-14 fixing temporary rates for the utility that will continue until a
55-15 final determination on the matter is made. On issuance of a final
55-16 order, the regulatory authority may require the utility to refund
55-17 to customers or to credit against future bills all sums collected
55-18 during the period in which those temporary rates were in effect
55-19 that are in excess of the rate finally ordered, plus interest at
55-20 the current rate as finally determined by the commission or, if the
55-21 amounts collected during the period in which the temporary rates
55-22 were in effect are less than the amounts that would have been
55-23 collected under the rate finally ordered, the regulatory authority
55-24 shall authorize the utility to surcharge bills to recover the
55-25 difference between those amounts, plus interest on the amount of
55-26 the difference at the current rate as finally determined by the
55-27 commission.
56-1 (d) If the 185-day period has been extended as provided by
56-2 Subsection (b) of this section and the regulatory authority has not
56-3 issued a final order or fixed temporary rates on or before the
56-4 185th day, the rates charged by the utility on that 185th day
56-5 automatically become temporary rates. On issuance of a final
56-6 order, the regulatory authority shall require the utility to refund
56-7 to customers or to credit against future bills all sums collected
56-8 during the period in which those temporary rates were in effect
56-9 that are in excess of the rate finally ordered, plus interest at
56-10 the current rate as finally determined by the commission or, if the
56-11 amounts collected during the period in which the temporary rates
56-12 were in effect are less than the amounts that would have been
56-13 collected under the rate finally ordered, the regulatory authority
56-14 shall authorize the utility to surcharge bills to recover the
56-15 difference between those amounts, plus interest on the amount of
56-16 the difference at the current rate as finally determined by the
56-17 commission.
56-18 SECTION 3.05. Section 71A, Public Utility Regulatory Act
56-19 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
56-20 as follows:
56-21 Sec. 71A. (a) The commission may impose an administrative
56-22 penalty against a person regulated under this Act who violates this
56-23 Act or a rule or order adopted under this Act.
56-24 (b) The penalty for a violation may be in an amount not to
56-25 exceed $5,000. Each day a violation continues or occurs is a
56-26 separate violation for purposes of imposing a penalty.
56-27 (c) The amount of the penalty shall be based on:
57-1 (1) the seriousness of the violation, including the
57-2 nature, circumstances, extent, and gravity of any prohibited acts,
57-3 and the hazard or potential hazard created to the health, safety,
57-4 or economic welfare of the public;
57-5 (2) the economic harm to property or the environment
57-6 caused by the violation;
57-7 (3) the history of previous violations;
57-8 (4) the amount necessary to deter future violations;
57-9 (5) efforts to correct the violation; and
57-10 (6) any other matter that justice may require.
57-11 (d) If the general counsel determines that a violation has
57-12 occurred, the general counsel may issue to the commission a report
57-13 that states the facts on which the determination is based and the
57-14 general counsel's recommendation on the imposition of a penalty,
57-15 including a recommendation on the amount of the penalty.
57-16 (e) Within 14 days after the date the report is issued, the
57-17 general counsel shall give written notice of the report to the
57-18 person. The notice may be given by certified mail. The notice
57-19 must include a brief summary of the alleged violation and a
57-20 statement of the amount of the recommended penalty and must inform
57-21 the person that the person has a right to a hearing on the
57-22 occurrence of the violation, the amount of the penalty, or both the
57-23 occurrence of the violation and the amount of the penalty.
57-24 (f) Within 20 days after the date the person receives the
57-25 notice, the person in writing may accept the determination and
57-26 recommended penalty of the general counsel or may make a written
57-27 request for a hearing on the occurrence of the violation, the
58-1 amount of the penalty, or both the occurrence of the violation and
58-2 the amount of the penalty.
58-3 (g) If the person accepts the determination and recommended
58-4 penalty of the general counsel, the commission by order shall
58-5 approve the determination and impose the recommended penalty.
58-6 (h) If the person requests a hearing or fails to respond
58-7 timely to the notice, the general counsel shall set a hearing and
58-8 give notice of the hearing to the person. The administrative law
58-9 judge or hearings examiner shall make findings of fact and
58-10 conclusions of law and promptly issue to the commission a proposal
58-11 for a decision about the occurrence of the violation and the amount
58-12 of a proposed penalty. Based on the findings of fact, conclusions
58-13 of law, and proposal for a decision, the commission by order may
58-14 find that a violation has occurred and impose a penalty or may find
58-15 that no violation occurred.
58-16 (i) The notice of the commission's order given to the person
58-17 under the Administrative Procedure and Texas Register Act (Article
58-18 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
58-19 amendments must include a statement of the right of the person to
58-20 judicial review of the order.
58-21 (j) Within 30 days after the date the commission's order is
58-22 final as provided by Subsection (c), Section 16, Administrative
58-23 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
58-24 Civil Statutes), and its subsequent amendments, the person shall:
58-25 (1) pay the amount of the penalty;
58-26 (2) pay the amount of the penalty and file a petition
58-27 for judicial review contesting the occurrence of the violation, the
59-1 amount of the penalty, or both the occurrence of the violation and
59-2 the amount of the penalty; or
59-3 (3) without paying the amount of the penalty, file a
59-4 petition for judicial review contesting the occurrence of the
59-5 violation, the amount of the penalty, or both the occurrence of the
59-6 violation and the amount of the penalty.
59-7 (k) Within the 30-day period, a person who acts under
59-8 Subdivision (3) of Subsection (j) of this section may:
59-9 (1) stay enforcement of the penalty by:
59-10 (A) paying the amount of the penalty to the
59-11 court for placement in an escrow account; or
59-12 (B) giving to the court a supersedeas bond that
59-13 is approved by the court for the amount of the penalty and that is
59-14 effective until all judicial review of the commission's order is
59-15 final; or
59-16 (2) request the court to stay enforcement of the
59-17 penalty by:
59-18 (A) filing with the court a sworn affidavit of
59-19 the person stating that the person is financially unable to pay the
59-20 amount of the penalty and is financially unable to give the
59-21 supersedeas bond; and
59-22 (B) giving a copy of the affidavit to the
59-23 general counsel by certified mail.
59-24 (l) The general counsel, on receipt of a copy of an
59-25 affidavit under Subdivision (2) of Subsection (k) of this section,
59-26 may file with the court, within five days after the date the copy
59-27 is received, a contest to the affidavit. The court shall hold a
60-1 hearing on the facts alleged in the affidavit as soon as
60-2 practicable and shall stay the enforcement of the penalty on
60-3 finding that the alleged facts are true. The person who files an
60-4 affidavit has the burden of proving that the person is financially
60-5 unable to pay the amount of the penalty and to give a supersedeas
60-6 bond.
60-7 (m) If the person does not pay the amount of the penalty and
60-8 the enforcement of the penalty is not stayed, the general counsel
60-9 may refer the matter to the attorney general for collection of the
60-10 amount of the penalty.
60-11 (n) Judicial review of the order of the commission:
60-12 (1) is instituted by filing a petition as provided by
60-13 Section 19, Administrative Procedure and Texas Register Act
60-14 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
60-15 subsequent amendments; and
60-16 (2) is under the substantial evidence rule.
60-17 (o) If the court sustains the occurrence of the violation,
60-18 the court may uphold or reduce the amount of the penalty and order
60-19 the person to pay the full or reduced amount of the penalty. If
60-20 the court does not sustain the occurrence of the violation, the
60-21 court shall order that no penalty is owed.
60-22 (p) When the judgment of the court becomes final, the court
60-23 shall proceed under this subsection. If the person paid the amount
60-24 of the penalty and if that amount is reduced or is not upheld by
60-25 the court, the court shall order that the appropriate amount plus
60-26 accrued interest be remitted to the person. The rate of the
60-27 interest is the rate charged on loans to depository institutions by
61-1 the New York Federal Reserve Bank, and the interest shall be paid
61-2 for the period beginning on the date the penalty was paid and
61-3 ending on the date the penalty is remitted. If the person gave a
61-4 supersedeas bond and if the amount of the penalty is not upheld by
61-5 the court, the court shall order the release of the bond. If the
61-6 person gave a supersedeas bond and if the amount of the penalty is
61-7 reduced, the court shall order the release of the bond after the
61-8 person pays the amount.
61-9 (q) A penalty collected under this section shall be remitted
61-10 to the comptroller for deposit in the general revenue fund.
61-11 (r) All proceedings under this section are subject to the
61-12 Administrative Procedure and Texas Register Act (Article 6252-13a,
61-13 Vernon's Texas Civil Statutes) and its subsequent amendments <At
61-14 the request of the commission, the attorney general shall bring
61-15 suit for the appointment of a receiver to collect the assets and
61-16 carry on the business of a water or sewer utility that violates a
61-17 final order of the commission or allows any property owned or
61-18 controlled by it to be used in violation of a final order of the
61-19 commission.>
61-20 <(b) The court shall appoint a receiver if such appointment
61-21 is necessary to guarantee the collection of assessments, fees,
61-22 penalties, or interest, to guarantee continued service to the
61-23 customers of the utility, or to prevent continued or repeated
61-24 violation of the final order.>
61-25 <(c) The receiver shall execute a bond to assure the proper
61-26 performance of the receiver's duties in an amount to be set by the
61-27 court.>
62-1 <(d) After appointment and execution of bond the receiver
62-2 shall take possession of the assets of the utility specified by the
62-3 court. Until discharged by the court, the receiver shall perform
62-4 the duties that the court directs to preserve the assets and carry
62-5 on the business of the utility and shall strictly observe the final
62-6 order involved.>
62-7 <(e) Upon a showing of good cause by the utility, the court
62-8 may dissolve the receivership and order the assets and control of
62-9 the business returned to the utility>.
62-10 SECTION 3.06. Section 116, Public Utility Regulatory Act
62-11 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
62-12 as follows:
62-13 Sec. 116. <(a)> A person who owns or operates an ADAD and
62-14 who operates the ADAD without a valid permit or with an expired
62-15 permit or who operates the ADAD in violation of this article or a
62-16 commission rule or order is subject to an administrative penalty in
62-17 accordance with Section 71A of this Act <of not more than $1,000
62-18 for each day or portion of a day during which the ADAD was
62-19 operating in violation of this section.>
62-20 <(b) The administrative penalty authorized by this section
62-21 is civil in nature and is cumulative of any other penalty provided
62-22 by law.>
62-23 <(c) The commission by rule shall prescribe the procedures
62-24 for assessing an administrative penalty under this section. The
62-25 procedures shall require proper notice and hearing in accordance
62-26 with the Administrative Procedure and Texas Register Act (Article
62-27 6252-13a, Vernon's Texas Civil Statutes).>
63-1 <(d) A person may appeal the final order of the commission
63-2 under the Administrative Procedure and Texas Register Act (Article
63-3 6252-13a, Vernon's Texas Civil Statutes), using the substantial
63-4 evidence rule on appeal.>
63-5 <(e) The proceeds of administrative penalties collected
63-6 under this section shall be deposited to the credit of the General
63-7 Revenue Fund>.
63-8 SECTION 3.07. Sections 78 and 80, Public Utility Regulatory
63-9 Act (Article 1446c, Vernon's Texas Civil Statutes), are amended to
63-10 read as follows:
63-11 Sec. 78. An assessment is hereby imposed upon each public
63-12 utility within the commission's jurisdiction, including
63-13 interexchange telecommunications carriers, serving the ultimate
63-14 consumer equal to one-sixth of one percent of its gross receipts
63-15 from rates charged the ultimate consumers in Texas for the purpose
63-16 of defraying the costs and expenses incurred in the administration
63-17 of this Act. The legislature may <Thereafter the commission shall,
63-18 subject to the approval of the Legislature,> adjust this
63-19 assessment to provide a level of income sufficient to fund the
63-20 commission and the office of public utility counsel. <Any
63-21 interexchange telecommunications carrier found dominant as to any
63-22 service market under Section 100(b) or filing a petition under
63-23 Section 100(f) of this Act shall be required to reimburse the
63-24 Office of Public Utility Counsel for the costs of participation
63-25 before the commission on behalf of residential ratepayers in any of
63-26 the proceedings under Section 100 of this Act to the extent found
63-27 reasonable by the commission. Recovery of costs under this section
64-1 by the Office of Public Utility Counsel shall not exceed $175,000
64-2 per annum.> Nothing in this Act or any other provision of law
64-3 shall prohibit interexchange telecommunications carriers who do not
64-4 provide local exchange telephone service from collecting the fee
64-5 imposed under this Act as an additional item separately stated on
64-6 the customer bill as "Utility Gross Receipts Assessment."
64-7 Sec. 80. (a) All fees, penalties, and interest paid under
64-8 the provisions of Sections 78 and 79 of this article shall be
64-9 collected by the comptroller of public accounts and paid into the
64-10 general revenue fund. <The commission shall notify the comptroller
64-11 of public accounts of any adjustment of the assessment imposed in
64-12 Section 78 when made.>
64-13 (b) All money paid to the commission or to the Office of
64-14 Public Utility Counsel under this Act shall be deposited in the
64-15 state treasury.
64-16 SECTION 3.08. Subsection (c), Section 6, Chapter 1132, Acts
64-17 of the 70th Legislature, Regular Session, 1987 (Article 4413(55),
64-18 Vernon's Texas Civil Statutes), is amended to read as follows:
64-19 (c) Any order or ruling of the Public Utility Commission of
64-20 Texas entered pursuant to this Act shall be deemed to have been
64-21 entered or adopted under the Public Utility Regulatory Act and, for
64-22 purposes of enforcement, is subject to enforcement pursuant to
64-23 Article XI <Sections 71 through 77> of the Public Utility
64-24 Regulatory Act and its subsequent amendments.
64-25 SECTION 3.09. (a) This article takes effect September 1,
64-26 1993, and applies to a proceeding for which a final order has not
64-27 been issued before that date.
65-1 (b) The changes in Sections 71A and 116, Public Utility
65-2 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), and
65-3 to Subsection (c), Section 6, Chapter 1132, Acts of the 70th
65-4 Legislature, Regular Session, 1987 (Article 4413(55), Vernon's
65-5 Texas Civil Statutes), made by this article apply only to a
65-6 violation committed on or after the effective date of this article.
65-7 A violation committed before the effective date of this article is
65-8 governed by the law in effect when the violation occurred, and that
65-9 law is continued in effect for that purpose.
65-10 ARTICLE 4
65-11 SECTION 4.01. Section 43B, Public Utility Regulatory Act
65-12 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
65-13 as follows:
65-14 Sec. 43B. (a) Policy. The legislature finds that
65-15 regulatory policy should recognize differences between the small
65-16 and large local exchange companies, that there are a large number
65-17 of customer-owned telephone cooperatives and small, locally owned
65-18 investor companies, and that it is appropriate to provide
65-19 incentives and flexibility to allow local exchange companies that
65-20 serve the rural areas to provide existing services and to introduce
65-21 new technology and new services in a prompt, efficient, and
65-22 economical manner.
65-23 (b) Except as otherwise provided by this section, a local
65-24 exchange company that is a cooperative corporation, or that,
65-25 together with all affiliated local exchange companies, has fewer
65-26 than 31,000 access lines in service in this state, may offer
65-27 extended local calling services or new services on an optional
66-1 basis or make minor changes in its rates or tariffs if the company:
66-2 (1) files with the commission and the office a
66-3 statement of intent, as prescribed by Subsection (c) of this
66-4 section, not later than the 91st day before the date on which the
66-5 proposed change will take effect;
66-6 (2) provides notice as prescribed by Subsection (d) of
66-7 this section; and
66-8 (3) files with the commission affidavits verifying the
66-9 provision of notice as prescribed by Subsection (d) of this
66-10 section.
66-11 (c) The statement of intent required by Subsection (b)(1) of
66-12 this section must include:
66-13 (1) a copy of a resolution approving the proposed
66-14 change by the local exchange telephone company's board of
66-15 directors;
66-16 (2) a description of the services affected by the
66-17 proposed change;
66-18 (3) a copy of the proposed tariff for the affected
66-19 service;
66-20 (4) a copy of the customer notice required by
66-21 Subsection (b)(2) of this section;
66-22 (5) the number of access lines the company has in
66-23 service in this state; and
66-24 (6) the amount by which the company's total gross
66-25 annual revenues will increase or decrease as a result of the
66-26 change.
66-27 (d) The local exchange company shall provide notice to
67-1 affected customers in the manner prescribed by the commission no
67-2 later than the 61st day before the date on which the proposed
67-3 change will take effect. Each notice prescribed by the commission
67-4 must include:
67-5 (1) a description of the services affected by the
67-6 proposed change;
67-7 (2) the effective date of the proposed change;
67-8 (3) an explanation of the customer's right to petition
67-9 the commission for a review under Subsection (e) of this section,
67-10 including the number of persons required to petition before a
67-11 commission review will occur;
67-12 (4) an explanation of the customer's right to obtain
67-13 information concerning how to obtain a copy of the proposed tariff
67-14 from the company;
67-15 (5) the amount by which the company's total gross
67-16 revenues will increase or decrease as a result of the proposed
67-17 change; and
67-18 (6) a list of rates that are affected by the proposed
67-19 rate change.
67-20 (e) The commission shall review a proposed change filed
67-21 under this section if:
67-22 (1) the commission receives complaints relating to the
67-23 proposed change signed by the lesser of five percent or 1,500 of
67-24 the affected local service customers;
67-25 (2) the commission receives a complaint relating to
67-26 the proposed change from an affected intrastate access customer, or
67-27 a group of affected intrastate access customers, that in the
68-1 preceding 12 months accounted for more than 10 percent of the
68-2 company's total intrastate access revenues;
68-3 (3) the proposed change is not a minor change;
68-4 (4) the company does not comply with the procedural
68-5 requirements of this section; or
68-6 (5) the proposed change is inconsistent with the
68-7 commission's substantive policies as expressed in its rules.
68-8 (f) On review, the commission may suspend the proposed
68-9 tariff during the pendency of review.
68-10 (g) This section does not prohibit a local exchange
68-11 telephone company from filing for a new service or rate change
68-12 under another applicable section of this Act or the commission from
68-13 conducting a review in accordance with Section 42 of this Act.
68-14 (h) In this section, "minor change" means a change,
68-15 including the restructuring of rates of existing services, that
68-16 decreases the rates or revenues of the local exchange telephone
68-17 company or that, together with any other rate or proposed or
68-18 approved tariff changes in the 12 months preceding the date on
68-19 which the proposed change will take effect, results in an increase
68-20 of the company's total annual gross revenues by not more than five
68-21 percent. Further, with regard to a change to a basic local access
68-22 line rate, a "minor change" may not, together with any other change
68-23 to that rate that went into effect during the 12 months preceding
68-24 the proposed effective date of the requested change, result in an
68-25 increase of more than 10 percent. <Except as otherwise provided by
68-26 this section, a local exchange company that is a cooperative
68-27 corporation or that has fewer than 5,000 access lines in service in
69-1 this state may change rates by publishing notice of the change at
69-2 least 60 days before the date of the change in the place and form
69-3 as prescribed by the commission. The notice must include:>
69-4 <(1) the reasons for the rate change;>
69-5 <(2) a description of the affected service;>
69-6 <(3) an explanation of the right of the subscriber to
69-7 petition the commission for a hearing on the rate change; and>
69-8 <(4) a list of rates that are affected by the proposed
69-9 rate change.>
69-10 <(b) At least 60 days before the date of the change, the
69-11 local exchange company shall file with the commission a statement
69-12 of intent to change rates containing:>
69-13 <(1) a copy of the notice required by Subsection (a)
69-14 of this section;>
69-15 <(2) the number of access lines the company has in
69-16 service in this state;>
69-17 <(3) the date of the most recent commission order
69-18 setting rates of the company;>
69-19 <(4) the increase in total gross annual local revenues
69-20 that will be produced by the proposed rates;>
69-21 <(5) the increase in total gross annual local revenues
69-22 that will be produced by the proposed rates together with any local
69-23 rate changes which went into effect during the 12 months preceding
69-24 the proposed effective date of the requested rate change and any
69-25 other proposed local rate changes then pending before the
69-26 commission;>
69-27 <(6) the increase in rates for each service category;
70-1 and>
70-2 <(7) other information the commission by rule
70-3 requires.>
70-4 <(c) The commission shall review a proposed change in the
70-5 rates set by a local exchange company under this section upon the
70-6 receipt of complaints signed by at least five percent of all
70-7 affected subscribers or upon its own motion. The commission may
70-8 require notice to ratepayers as it considers appropriate. If
70-9 sufficient complaints are presented to the commission within 60
70-10 days after the date notice of the rate change was sent to
70-11 subscribers, the commission shall review the proposed change.
70-12 After notice to the local exchange company, the commission may
70-13 suspend the rates during the pendency of the review and reinstate
70-14 the rates previously in effect. Review under this subsection shall
70-15 be as provided by Section 43 of this Act. The period for review by
70-16 the commission does not begin until the local exchange company
70-17 files a complete rate-filing package.>
70-18 <(d) If the commission has entered an order setting a rate,
70-19 the affected local exchange company may not change that rate under
70-20 this section before 365 days after the date of the commission's
70-21 order setting the rate.>
70-22 <(e) This section does not prohibit a local exchange company
70-23 from filing for a rate change under any other applicable section of
70-24 this Act.>
70-25 <(f) The commission shall review a proposed change in the
70-26 rates of a local exchange company under this section if the
70-27 proposed rates, together with any local rate changes which went
71-1 into effect during the 12 months preceding the proposed effective
71-2 date of the requested rate change as well as any other proposed
71-3 local rate changes then pending before the commission, will
71-4 increase its total gross annual local revenues by more than 2-1/2
71-5 percent or if the proposed change would increase the rate of any
71-6 service category by more than 25 percent, except for basic local
71-7 service, which shall be limited to a maximum of 2-1/2 percent of
71-8 the total gross annual local revenue. Review under this subsection
71-9 shall be as provided by Section 43 of this Act. Each local
71-10 exchange company may receive a change in its local rates or in any
71-11 service category pursuant to this section only one time in any
71-12 12-month period.>
71-13 (i) <(g)> Rates established under this section must be in
71-14 accordance with the rate-setting principles of Article VI of this
71-15 Act. However, such companies may provide to its board members,
71-16 officers, employees, and agents free or reduced rates for services.
71-17 (j) Small Company Policy Review. The commission shall
71-18 examine its policies, its reporting requirements, and its
71-19 procedural and substantive rules as they relate to rural and small
71-20 local exchange companies to eliminate or revise those that place
71-21 unnecessary burdens and expenses on such small companies. Within
71-22 120 days of the effective date of this section, the commission
71-23 shall consider and may adopt policies which include, but are not
71-24 limited to, the following:
71-25 (1) Policies to allow such small companies to provide
71-26 required information by report or otherwise as necessary, including
71-27 a rate filing package when required, in substantially less
72-1 burdensome and complex form than required of larger local exchange
72-2 companies.
72-3 (2) Policies that permit consideration of the
72-4 company's future construction plans and operational changes in
72-5 evaluating the reasonableness of current rates.
72-6 (3) Policies that provide for evaluation of the
72-7 overall reasonableness of current rates no more frequently than
72-8 once every three years.
72-9 (4) Policies that permit small companies to change
72-10 depreciation and amortization rates when customer rates are not
72-11 affected by notice to the commission, subject to review by the
72-12 commission in proceedings under Sections 42 and 43 of this Act.
72-13 (5) Policies to allow the small local exchange
72-14 companies to adopt for new services the rates for the same or
72-15 substantially similar services offered by a larger local exchange
72-16 company, without commission requirement of additional cost
72-17 justification.
72-18 (6) Policies that allow a small local exchange
72-19 company, in lieu of any management audit that would otherwise be
72-20 required by law, policy, or rule, to instead submit to the
72-21 commission financial audits of the company regularly performed by
72-22 independent auditors or required and performed as a result of the
72-23 company's participation in federal or state financing or
72-24 revenue-sharing programs.
72-25 (7) Notwithstanding any other relevant provision of
72-26 this Act, the commission may adopt policies under this subsection
72-27 that the commission considers appropriate.
73-1 (k) <(h)> The commission is granted all necessary power and
73-2 authority to prescribe and collect fees and assessments from local
73-3 exchange companies necessary to recover the commission's and the
73-4 Office of Public Utility Counsel's costs of activities carried out
73-5 and services provided under Subsection (i) of Section 43 and
73-6 Sections 43A, <and> 43B, and 43C of this Act.
73-7 (l) This section may not apply to any local exchange company
73-8 that is a cooperative corporation partially deregulated under the
73-9 provisions of Section 43C of this Act.
73-10 SECTION 4.02. Section 39, Public Utility Regulatory Act
73-11 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
73-12 adding Subsection (c) to read as follows:
73-13 (c) The commission may extend application of Section 43B of
73-14 this Act to local exchange companies having 300,000 or fewer access
73-15 lines in service in this state if the commission determines that
73-16 the state telecommunications policies in this section and in
73-17 Sections 2 and 18 of this Act would be served by that action.
73-18 SECTION 4.03. Article VI, Public Utility Regulatory Act
73-19 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
73-20 adding Section 43C to read as follows:
73-21 Sec. 43C. (a) A local exchange company that is a
73-22 cooperative corporation may vote to partially deregulate the
73-23 company by sending a ballot to each corporation member. The ballot
73-24 may be included in a bill or sent separately. The ballot shall
73-25 provide for voting for or against the proposition: "Authorizing
73-26 the partial deregulation of the (name of local exchange company)."
73-27 (b) The company may offer extended local calling services or
74-1 new services on an optional basis, restructure rates of existing
74-2 services, or make changes in its rates or tariffs if:
74-3 (1) a majority of the ballots returned to the company
74-4 not later than the 45th day after the date on which the ballots are
74-5 mailed favor deregulation; and
74-6 (2) the company:
74-7 (A) files concurrently with the commission and
74-8 the office a statement of intent, as prescribed by Subsection (c)
74-9 of this section, not later than the 61st day before the date on
74-10 which the proposed change will take effect;
74-11 (B) provides notice of the proposed change to
74-12 all customers and municipalities as prescribed by Subsection (d) of
74-13 this section; and
74-14 (C) files with the commission affidavits
74-15 verifying the provision of notice as prescribed by Subsection (e)
74-16 of this section.
74-17 (c) The statement of intent required by Paragraph (A) of
74-18 Subdivision (2) of Subsection (b) of this section must include:
74-19 (1) a copy of a resolution approving the proposed
74-20 change and authorizing the filing of the statement of intent signed
74-21 by a majority of the members of the local exchange telephone
74-22 company's board of directors;
74-23 (2) a description of the services affected by the
74-24 proposed change;
74-25 (3) a copy of the proposed tariff for the affected
74-26 service;
74-27 (4) a copy of the customer notice required by
75-1 Subdivision (2) of Subsection (b) of this section;
75-2 (5) the amount by which the company's total gross
75-3 annual revenues will increase or decrease as a result of the
75-4 change; and
75-5 (6) a statement explaining in detail the estimated
75-6 effect of the change on the utility's revenue by revenue class and
75-7 stating the classes and number of classes affected.
75-8 (d) The local exchange company shall provide to all affected
75-9 customers and parties, including municipalities, at least two
75-10 notices of the proposed change by bill insert or by individual
75-11 notice. The company shall provide the first notice not later than
75-12 the 61st day before the date on which the proposed change will take
75-13 effect. The company shall provide the last notice not later than
75-14 the 31st day before the date on which the proposed change will take
75-15 effect. Each notice prescribed by this subsection must include:
75-16 (1) a description of the services affected by the
75-17 proposed change;
75-18 (2) the effective date of the proposed change;
75-19 (3) an explanation of the customer's right to petition
75-20 the commission for a review under Subsection (f) of this section;
75-21 (4) an explanation of the customer's right to obtain a
75-22 copy of the proposed tariff from the company;
75-23 (5) the amount by which the company's total gross
75-24 annual revenues will increase or decrease as a result of the
75-25 proposed change; and
75-26 (6) a list of rates that are affected by the proposed
75-27 rate change.
76-1 (e) Not later than the 15th day before the date on which the
76-2 proposed change will take effect, the local exchange telephone
76-3 company shall file with the commission affidavits that verify that
76-4 the company provided each notice prescribed under Subsection (d) of
76-5 this section.
76-6 (f) The commission shall review a proposed change filed
76-7 under this section if:
76-8 (1) the commission receives, not later than the 30th
76-9 day after the date notice is provided under Subsection (d) of this
76-10 section, complaints relating to the proposed change:
76-11 (A) signed by at least five percent of the
76-12 affected local service customers; or
76-13 (B) from an affected intrastate access customer,
76-14 or group of affected intrastate access customers, that in the
76-15 preceding 12 months accounted for more than 10 percent of the
76-16 company's total intrastate access revenues; or
76-17 (2) the company does not comply with the procedural
76-18 requirements of this section.
76-19 (g) Notwithstanding any other provision of this section, the
76-20 commission may conduct a review in accordance with Section 42 of
76-21 this Act. On review, the commission may suspend the actions of the
76-22 local exchange telephone company during the pendency of review.
76-23 (h) A company that is partially deregulated under this
76-24 section may vote to reverse the deregulation by sending a ballot to
76-25 each corporation member. The ballot may be included in a bill or
76-26 sent separately. The ballot shall provide for voting for or
76-27 against the proposition: "Reversing the partial deregulation of
77-1 the (name of local exchange company)." The partial deregulation is
77-2 reversed if a majority of the ballots returned to the company not
77-3 later than the 45th day after the date on which the ballots are
77-4 mailed favor reversal.
77-5 (i) The commission by rule shall prescribe the voting
77-6 procedures a company is required to use under this section.
77-7 (j) This section does not:
77-8 (1) prohibit a local exchange telephone company from
77-9 filing for a new service or rate change under another applicable
77-10 section of this Act; or
77-11 (2) affect the application of other provisions of this
77-12 Act not directly related to rate-making or the authority of the
77-13 commission to require the company to file reports required under
77-14 this Act or under rules adopted by the commission.
77-15 SECTION 4.04. Article VI, Public Utility Regulatory Act
77-16 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
77-17 adding Sections 41D and 41E to read as follows:
77-18 Sec. 41D. (a) A local exchange company may elect to become
77-19 subject to the applicable provisions and obligations of this
77-20 section and Section 41E of this Act. In this section and Section
77-21 41E of this Act, such companies are referred to as "electing
77-22 companies." An electing company shall have an infrastructure
77-23 commitment that begins on the date of commitment and ends on
77-24 September 1, 1995. The annual infrastructure development
77-25 commitment for an electing company shall be equivalent to that
77-26 company's net income from directory advertising from the preceding
77-27 year. For any partial calendar year during an election period, the
78-1 infrastructure development commitment is equal to the amount
78-2 computed by multiplying the electing company's net income from
78-3 directory advertising for the preceding year by the number of days
78-4 in the partial year election period and dividing that number by
78-5 365. This amount shall be known as the company's Texas
78-6 infrastructure development commitment. The amount identified as
78-7 the company's Texas infrastructure development commitment shall be
78-8 expended for projects prescribed by this section and Section 41E of
78-9 this Act. In order for an infrastructure project to be eligible
78-10 for funding under this section, a medical or educational customer
78-11 request for the infrastructure must be submitted to the electing
78-12 company not later than September 1, 1995.
78-13 (b) In this section, a medical or educational customer means
78-14 a public high school, a four-year public college or university, or
78-15 an accredited medical hospital.
78-16 (c) On the request of a medical or educational customer, an
78-17 electing company, to meet the needs of that customer, shall:
78-18 (1) provide fiber optic facilities or equivalent
78-19 technologies to connect the requesting educational or medical
78-20 customer to another educational or medical customer within the same
78-21 local access transport area (LATA); and/or
78-22 (2) provide digital switching capability in each
78-23 central office that serves a medical or educational customer who
78-24 has a technical need for the digital switching capability.
78-25 (d) No special construction charge shall be imposed on the
78-26 medical or educational customer for the installation of digital
78-27 switching capability or fiber optic facilities or equivalent
79-1 technologies. The charges for digital switching capability or
79-2 fiber optic facilities or equivalent technologies for that customer
79-3 shall not include any special construction costs.
79-4 (e) The facilities or equivalent technologies required in
79-5 Subsection (c) of this section shall be completed within 18 months
79-6 after the date of receipt of the request from an educational or
79-7 medical customer.
79-8 (f) Any local exchange company serving more than two million
79-9 access lines in this state shall be deemed to be an electing
79-10 company effective January 1, 1994.
79-11 (g) For an electing company, other than an electing company
79-12 serving more than two million access lines in this state, the
79-13 dollar value of the infrastructure development commitment shall be
79-14 deducted, after the effective date of the company's election, from
79-15 net income as determined under Section 41(c) of this Act for the
79-16 purpose of calculating rate of return under this Act. For an
79-17 electing company serving more than two million access lines in this
79-18 state, the dollar value of the infrastructure development
79-19 commitment shall be deducted, effective December 1, 1994, from net
79-20 income as determined under Section 41(c) of this Act for the
79-21 purpose of calculating rate of return under this Act.
79-22 (h) The tariffed rates for the following services of an
79-23 electing company may not be changed by the commission before
79-24 September 1, 1995:
79-25 (1) single line local residential service;
79-26 (2) single line local business service;
79-27 (3) PBX trunk lines;
80-1 (4) multi-line hunt business service;
80-2 (5) service connection charges;
80-3 (6) residential Lifeline Discount telephone service;
80-4 (7) Touch-tone service;
80-5 (8) intralata long distance service; and
80-6 (9) switched access service.
80-7 (i) "Tariffed rates" as used in Subsection (h) of this
80-8 section means the rates charged on the date of enactment of this
80-9 section by the legislature, regardless of administrative orders not
80-10 yet final or subject to or on appeal, for both electing companies
80-11 of more than two million access lines and for other electing
80-12 companies who elect under Subsection (a) of this section on or
80-13 before the effective date of this section. For all other electing
80-14 companies, "tariffed rates" means the rates in effect on the date
80-15 of election. Notwithstanding any other provision of this
80-16 subsection, if a rate reduction was previously scheduled to become
80-17 effective by commission action approved before January 1, 1993, the
80-18 reduction shall be made as scheduled and the "tariffed rate" is
80-19 that reduced rate.
80-20 (j) For an electing company serving more than one million
80-21 access lines in this state, an investment qualifies as a Texas
80-22 infrastructure development commitment investment under this section
80-23 and Section 41E of this Act only if the investment is in addition
80-24 to the company's annual capital investment averaged over the three
80-25 years preceding the date of election. However, the electing
80-26 company may apply to the commission for a determination that
80-27 extraordinary expenditures justify using a different method for
81-1 determining the level of investment above which the expenditure
81-2 qualifies as a Texas infrastructure development commitment
81-3 investment under this section and Section 41E of this Act.
81-4 (k) A local exchange company serving between one million and
81-5 two million, inclusive, access lines in this state shall fulfill
81-6 all infrastructure requests required under this section and Section
81-7 41E of this Act up to a value of $25 million for each 12-month
81-8 period beginning on the effective date of this section and ending
81-9 on September 1, 1995, if all tax-related issues involved in any
81-10 pending judicial appeal regarding the company's overall revenues
81-11 are resolved in favor of the company by an Act of the 73rd
81-12 Legislature, Regular Session. In such event, the rate freeze
81-13 provisions of Subsection (h) of this section shall apply, except
81-14 that the freeze does not apply to any refunds that result from
81-15 remand of any other issue involved in any pending judicial appeal
81-16 regarding the company's overall revenues. If all tax-related
81-17 issues involved in any pending judicial appeal regarding the
81-18 company's overall revenues are not resolved in favor of the company
81-19 by an Act of the 73rd Legislature, Regular Session, but are
81-20 resolved in favor of the company in the judicial appellate process,
81-21 the company may elect under Subsection (a) of this section to
81-22 become subject to the other applicable provisions and obligations
81-23 of this section and Section 41E of this Act, and in such event, the
81-24 rate freeze provisions of Subsection (h) of this section shall
81-25 apply. If all tax-related issues involved in any pending judicial
81-26 appeal regarding the company's overall revenues are not resolved in
81-27 favor of the company by an Act of the 73rd Legislature, Regular
82-1 Session, or are not resolved in favor of the company in the
82-2 judicial appellate process, the company may elect under Subsection
82-3 (a) of this section to become subject to the other applicable
82-4 provisions and obligations of this section and Section 41E of this
82-5 Act, but the rate freeze provisions of Subsection (h) of this
82-6 section do not apply.
82-7 Sec. 41E. (a) If, on February 1, 1996, an electing company
82-8 has not committed to specific eligible projects the total amount of
82-9 the company's Texas infrastructure development commitment required
82-10 under Section 41D of this Act, the company shall file with the
82-11 commission a plan for additional infrastructure investment.
82-12 (b) The plan required under this section shall propose
82-13 additional investment so that the electing company's total
82-14 infrastructure investment under this section and Section 41D of
82-15 this Act is equivalent to the company's Texas infrastructure
82-16 development commitment required under Section 41D of this Act.
82-17 (c) The plan required under this section shall give primary
82-18 emphasis to infrastructure investment to benefit:
82-19 (1) public community colleges;
82-20 (2) public junior colleges;
82-21 (3) Texas State Technical College;
82-22 (4) regional educational service centers;
82-23 (5) public junior high schools;
82-24 (6) public middle schools; and
82-25 (7) public elementary schools.
82-26 (d) The commission shall act on the plan not later than the
82-27 90th day after the plan is filed. The commission may approve the
83-1 filed plan, revise the filed plan, or develop its own plan.
83-2 SECTION 4.05. Article V, Public Utility Regulatory Act
83-3 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
83-4 adding Section 36A to read as follows:
83-5 Sec. 36A. A local exchange company will not engage in
83-6 electronic publishing on or before September 1, 1995.
83-7 SECTION 4.06. Section 45, Public Utility Regulatory Act
83-8 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
83-9 as follows:
83-10 Sec. 45. (a) No public utility may, as to rates or
83-11 services, make or grant any unreasonable preference or advantage to
83-12 any corporation or person within any classification, or subject any
83-13 corporation or person within any classification to any unreasonable
83-14 prejudice or disadvantage. No public utility may establish and
83-15 maintain any unreasonable differences as to rates of service either
83-16 as between localities or as between classes of service.
83-17 (b) A public utility may not impose a restriction, including
83-18 a geographic requirement per location or a minimum line
83-19 requirement, that will limit the availability of central office
83-20 based PBX-type services to any business, either individually or as
83-21 part of a sharing arrangement. A public utility may not
83-22 unreasonably discriminate between individual businesses obtaining
83-23 central office based PBX-type services and businesses obtaining
83-24 those services through a sharing arrangement.
83-25 SECTION 4.07. Article VII, Public Utility Regulatory Act
83-26 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
83-27 adding Section 61A to read as follows:
84-1 Sec. 61A. (a) Within six months of the effective date of
84-2 this section, the commission shall adopt rules providing that
84-3 owners and operators of pay telephones:
84-4 (1) shall not impose any charge for local directory
84-5 assistance calls or calls made pursuant to Chapter 772, Health and
84-6 Safety Code; and
84-7 (2) shall, if other than a local exchange company, not
84-8 impose a total charge for a local call that is an amount greater
84-9 than the rate charged for a local call placed from a pay telephone
84-10 owned by a local exchange company at the same location.
84-11 (b)(1) The commission shall have the authority over private
84-12 pay telephone providers to investigate and prohibit the blocking of
84-13 access by consumers to interexchange carriers and other
84-14 telecommunications utilities for the completion of calls or for
84-15 access to the operator services of the local exchange carrier
84-16 serving the area where the private pay telephone is located. The
84-17 commission may grant a temporary waiver for blocking if the private
84-18 pay telephone provider demonstrates that unblocking could result in
84-19 fraudulent use.
84-20 (2) Except as provided under Subdivision (3) of this
84-21 subsection, the commission shall have all necessary authority over
84-22 private pay telephone providers and other telecommunications
84-23 utilities to order just and reasonable compensation for intrastate
84-24 dial-around calls if the commission finds such compensation to be
84-25 in the public interest.
84-26 (3) Any compensation provided under Subdivision (2) of
84-27 this subsection may not be paid until the private pay telephone
85-1 provider certifies that the pay telephone is unblocked. The
85-2 commission shall order compensation paid to a private pay telephone
85-3 provider under this section to be refunded in full if the
85-4 provider's pay telephone is found to be blocking access to a
85-5 telecommunications utility other than the presubscribed operator
85-6 services provider.
85-7 (4) This section applies notwithstanding Subsection
85-8 (c) of Section 18 of this Act.
85-9 (c) In addition to the rules adopted under Subsection (a) of
85-10 this section, the commission shall adopt rules providing that
85-11 owners and operators of pay telephones:
85-12 (1) not impose a charge for calls made to reach the
85-13 local exchange operator serving the exchange in which the pay
85-14 telephone is located or calls paid for by credit card; and
85-15 (2) afford customers the ability to make calls
85-16 specified in Subsection (a)(1) and in Subdivision (1) of this
85-17 subsection without the necessity of inserting a coin into the
85-18 telephone, unless that ability is technologically infeasible for
85-19 the pay telephone provider, in which event the commission may waive
85-20 this requirement until not later than the second anniversary of the
85-21 effective date of this section.
85-22 SECTION 4.08. Section 18A, Public Utility Regulatory Act
85-23 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
85-24 amending Subsection (h) and adding Subsection (i) to read as
85-25 follows:
85-26 (h) Except as provided by Subsection (i) of this section,
85-27 this <This> section applies only to a telecommunications utility
86-1 that is not a dominant carrier. The commission is granted all
86-2 necessary power and authority under this Act to promulgate rules
86-3 and establish procedures for the purposes of enforcing and
86-4 implementing this section.
86-5 (i) Each dominant or nondominant telecommunications utility
86-6 that provides operator service shall ensure that a caller may
86-7 access a live operator at the beginning of all live or mechanized
86-8 operator assisted calls through a method designed to be easily and
86-9 clearly understandable and accessible to the caller. A
86-10 telecommunications utility shall submit to the commission the
86-11 method by which the utility will provide access to a live operator
86-12 for review. This subsection applies regardless of the method by
86-13 which the telecommunications utility provides the operator service.
86-14 The requirements of this subsection shall not apply to telephones
86-15 located in prison or jail facilities.
86-16 ARTICLE 5
86-17 SECTION 5.01. Section 23, Public Utility Regulatory Act
86-18 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
86-19 as follows:
86-20 Sec. 23. (a) Any municipality regulating its public
86-21 utilities pursuant to this Act may <shall> require from those
86-22 utilities all necessary data to make a reasonable determination of
86-23 rate base, expenses, investment, and rate of return within the
86-24 municipal boundaries. The standards for such determination shall
86-25 be based on the procedures and requirements of this Act and said
86-26 municipality shall retain any and all personnel necessary to make
86-27 the determination of reasonable rates required under this Act.
87-1 (b) Not later than the 31st day before the date on which a
87-2 utility files a statement of intent under Subsection (a) of Section
87-3 43 of this Act, the utility shall provide to each municipality
87-4 having original jurisdiction notice of intent to file the
87-5 statement. Not later than the 30th day after a municipality
87-6 receives notice of intent to file a statement, the municipality may
87-7 request that the utility file with the municipality a statement of
87-8 intent in accordance with Subsection (a) of Section 43 of this Act.
87-9 If requested, the utility shall file the statement of intent with
87-10 the municipality at the same time the statement is filed with the
87-11 commission and the office.
87-12 SECTION 5.02. Subsection (a), Section 43, Public Utility
87-13 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
87-14 amended to read as follows:
87-15 (a) Except as provided by Subsection (b) of Section 23 of
87-16 this Act, no <No> utility may make changes in its rates except by
87-17 filing a statement of intent concurrently with the office and with
87-18 the regulatory authority having original jurisdiction at least 35
87-19 days prior to the effective date of the proposed change. The
87-20 statement of intent shall include proposed revisions of tariffs and
87-21 schedules and a statement specifying in detail each proposed
87-22 change, the effect the proposed change is expected to have on the
87-23 revenues of the company, the classes and numbers of utility
87-24 consumers affected, and such other information as may be required
87-25 by the regulatory authority's rules and regulations. A copy of the
87-26 statement of intent shall be mailed or delivered to the appropriate
87-27 officer of each affected municipality, and notice shall be given by
88-1 publication in conspicuous form and place of a notice to the public
88-2 of such proposed change once in each week for four successive weeks
88-3 prior to the effective date of the proposed change in a newspaper
88-4 having general circulation in each county containing territory
88-5 affected by the proposed change, and by mail to such other affected
88-6 persons as may be required by the regulatory authority's rules and
88-7 regulations. The regulatory authority may waive the publication of
88-8 notice requirement prescribed by this subsection in a proceeding
88-9 that involves a rate reduction for all affected ratepayers only.
88-10 The applicant shall give notice of the proposed rate change by mail
88-11 to all affected utility customers. The regulatory authority by
88-12 rule shall also define other proceedings for which the publication
88-13 of notice requirement prescribed by this subsection may be waived
88-14 on a showing of good cause, provided that no waiver may be granted
88-15 in any proceeding involving a rate increase to any class or
88-16 category of ratepayer.
88-17 SECTION 5.03. Subsection (g), Section 43, Public Utility
88-18 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
88-19 amended to read as follows:
88-20 (g)(1) A rate or tariff set by the commission shall not
88-21 authorize a utility to automatically adjust and pass through to its
88-22 customers changes in fuel or other costs of the utility.
88-23 (2)(A) Subdivision (1) of this subsection does not
88-24 prohibit the commission from reviewing and providing for
88-25 adjustments of a utility's fuel factor. The commission by rule
88-26 shall implement procedures that provide for the timely adjustment
88-27 of a utility's fuel factor, with or without a hearing. The
89-1 procedures shall provide that the findings required by Subdivision
89-2 (1) of Subsection (c) of Section 41 of this Act regarding fuel
89-3 transactions with affiliated interests are made in a fuel
89-4 reconciliation proceeding or in a rate case filed under Subsection
89-5 (a) of this section or under Section 42 of this Act. The
89-6 procedures shall provide an affected party notice and the
89-7 opportunity to request a hearing before the commission. However,
89-8 the commission may adjust a utility's fuel factor without a hearing
89-9 if the commission determines that a hearing is not necessary. If
89-10 the commission holds a hearing, the <Any revision of a utility's
89-11 billings to its customers to allow for the recovery of additional
89-12 fuel costs may be made only upon a public hearing and order of the
89-13 commission.>
89-14 <(B) The> commission may consider any evidence
89-15 that is appropriate and in the public interest at such hearing.
89-16 The commission shall render a timely decision approving,
89-17 disapproving, or modifying the adjustment to the utility's fuel
89-18 factor.
89-19 (B) The commission by rule shall provide for the
89-20 reconciliation of a utility's fuel costs on a timely basis.
89-21 (C) A proceeding under this subsection shall not
89-22 be considered a rate case under Section 43 of this Act.
89-23 (3)(A) <The commission may, after a hearing, grant
89-24 interim relief for fuel cost increases that are the result of
89-25 unusual and emergency circumstances or conditions.>
89-26 <(4)(A)> This subsection applies only to increases or
89-27 decreases in the cost of purchased electricity which have been:
90-1 (i) accepted by a federal regulatory
90-2 authority; or
90-3 (ii) approved after a hearing by the
90-4 Public Utility Commission of Texas.
90-5 (B) The Public Utility Commission of Texas may
90-6 utilize any appropriate method to provide for the adjustment of the
90-7 cost of purchased electricity upon such terms and conditions as the
90-8 commission may determine. Such purchased electricity costs may be
90-9 recovered concurrently with the effective date of the changed costs
90-10 to the purchasing utility or as soon thereafter as is reasonably
90-11 practical.
90-12 SECTION 5.04. Subsection (h), Section 43, Public Utility
90-13 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
90-14 amended to read as follows:
90-15 (h) The commission by rule may prescribe a schedule for
90-16 electric utilities to appear before the commission in a general
90-17 rate proceeding under this section. The schedule shall cover at
90-18 least a five-year period. The commission shall review and by rule
90-19 shall revise the schedule at least every five years. The rules
90-20 prescribing the schedule must:
90-21 (1) provide that the schedule applies only to
90-22 investor-owned electric utilities and to the electric operations of
90-23 river authorities;
90-24 (2) allow a utility to initiate a rate proceeding
90-25 before its scheduled time if:
90-26 (A) the utility is earning a return on equity,
90-27 computed over the immediately preceding 12-month period, that is
91-1 less than the utility's allowed return on equity as established by
91-2 the commission in the utility's most recent general rate case; or
91-3 (B) a new generating facility or other major
91-4 construction project has been completed and has been placed in
91-5 service;
91-6 (3) specifically authorize a utility to initiate a
91-7 rate proceeding before its scheduled time by a showing of good
91-8 cause;
91-9 (4) define the good cause conditions that will allow a
91-10 utility to initiate a rate proceeding before its scheduled time;
91-11 and
91-12 (5) define the conditions under which a utility may
91-13 bypass a scheduled rate proceeding if a rate change is not needed
91-14 <A water or sewer utility exempted in Subsection (a) of this
91-15 section may change its rates by filing a statement of change with
91-16 the commission at least 30 days after providing notice of the
91-17 change to its customers. The changed rates may be put into effect
91-18 on the filing of the statement of change. At the request of
91-19 one-tenth of the customers of the utility within 60 days after the
91-20 day the rates are put into effect, the commission may hold a
91-21 hearing, which may be an informal proceeding. On a finding by the
91-22 commission that the changed rates are not just and reasonable, the
91-23 commission shall set the utility's rates according to its usual
91-24 procedure. The utility shall refund or credit against future bills
91-25 all sums collected since the filing of the statement of change in
91-26 excess of the rate finally set plus interest at the current rate as
91-27 finally determined by the commission. No filing for a rate change
92-1 under this section may be made for a period of six months from the
92-2 last such filing by the same utility>.
92-3 SECTION 5.05. Article VI, Public Utility Regulatory Act
92-4 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
92-5 adding Section 37A to read as follows:
92-6 Sec. 37A. (a) An electric cooperative corporation that
92-7 provides retail electric utility service at distribution voltage is
92-8 exempt from rate regulation if a majority of the members voting in
92-9 an election on the deregulation of the electric cooperative vote to
92-10 approve the exemption and the electric cooperative sends notice of
92-11 the action to each applicable regulatory authority. An electric
92-12 cooperative that wants to hold an election under this section shall
92-13 send a ballot by mail to each electric cooperative member. The
92-14 electric cooperative may include the ballot in a monthly billing.
92-15 The ballot shall provide for voting for or against rate
92-16 deregulation of the electric cooperative. If the proposition is
92-17 approved, the electric cooperative shall send each ballot to the
92-18 commission not later than the 10th day after the date the electric
92-19 cooperative counts the ballots. Based on the ballots received, the
92-20 commission shall administratively certify that the electric
92-21 cooperative is or is not deregulated for rate-making purposes. An
92-22 electric cooperative may not hold another election on the issue of
92-23 being exempt from rate regulation before the first anniversary of
92-24 the most recent election on the issue. Subsections (b) through (n)
92-25 of this section apply to an electric cooperative that has elected
92-26 to be exempt from rate regulation.
92-27 (b) No regulatory authority shall fix and regulate the rates
93-1 of an electric cooperative that has made an election under this
93-2 section to be exempt from rate regulation except as provided for
93-3 the commission in Subsections (g) and (i) of this section.
93-4 Notwithstanding Subsection (a) of Section 17 of this Act, the
93-5 commission has exclusive original jurisdiction in all of the
93-6 electric cooperative's service area in a proceeding initiated under
93-7 Subsection (g) or (i) of this section.
93-8 (c) An electric cooperative may change its rates by:
93-9 (1) adopting a resolution approving the proposed
93-10 change;
93-11 (2) mailing notice of the proposed change to:
93-12 (A) the commission;
93-13 (B) each affected municipality;
93-14 (C) each affected customer, which notice may be
93-15 included in a monthly billing; and
93-16 (D) each electric utility providing retail
93-17 service in the electric cooperative's service area or in the
93-18 adjoining service area; and
93-19 (3) making available at each of the electric
93-20 cooperative's business offices for review by all interested persons
93-21 a cost-of-service study that:
93-22 (A) is not more than five years old at the time
93-23 the electric cooperative adopts rates under this subsection; and
93-24 (B) bears the certification of a professional
93-25 engineer or certified public accountant.
93-26 (d)(1) The notice required by Subsection (c) of this section
93-27 must contain the following information:
94-1 (A) the increase or decrease in total operating
94-2 revenues over actual test year revenues or over test year revenues
94-3 adjusted to annualize the recovery of changes in the cost of
94-4 purchased electricity, stated both as a dollar amount and as a
94-5 percentage;
94-6 (B) the classes of utility customers affected
94-7 and the creation and application of any new rate classes;
94-8 (C) the increase or decrease for each class
94-9 stated as a percentage of actual test year revenues for the class
94-10 or of test year revenues for the class adjusted to annualize the
94-11 recovery of changes in the cost of purchased electricity;
94-12 (D) a statement that the commission may review
94-13 the rate change if the commission receives a petition in accordance
94-14 with Subsection (g) of this section;
94-15 (E) the address and telephone number of the
94-16 commission;
94-17 (F) a statement that a customer opposed to the
94-18 rate change should notify the electric cooperative in writing of
94-19 the person's opposition and should provide a return address; and
94-20 (G) a statement that members may review a copy
94-21 of any written opposition the electric cooperative receives.
94-22 (2) The electric cooperative may not be required to
94-23 include additional information in the notice.
94-24 (e) The electric cooperative shall make available for review
94-25 by a member of the cooperative at each of the electric
94-26 cooperative's business offices a copy of any written opposition to
94-27 the rate change the electric cooperative receives.
95-1 (f) The electric cooperative shall file tariffs with the
95-2 commission. If the electric cooperative complies with Subsection
95-3 (c) of this section, the commission shall approve the tariffs not
95-4 later than the 10th day after the 60-day period prescribed by
95-5 Subsection (g) of this section expires, unless a review is required
95-6 under Subsection (g) or (i) of this section. If the tariffs are
95-7 approved or if a review is not required and the commission fails to
95-8 act during the period prescribed by this subsection, the change in
95-9 rates takes effect on the 70th day after the date on which the
95-10 electric cooperative first complies with all requirements of
95-11 Subsection (c) of this section or on a later date determined by the
95-12 electric cooperative. Except as provided by Subsections (g) and
95-13 (i) of this section, the rates of the electric cooperative are not
95-14 subject to review.
95-15 (g) The commission shall review a change in rates under this
95-16 section if, not later than the 60th day after the date the electric
95-17 cooperative first complies with all requirements of Subsection (c)
95-18 of this section, the commission receives a petition requesting
95-19 review signed by:
95-20 (1) at least 10 percent of the members of the electric
95-21 cooperative;
95-22 (2) members of the electric cooperative who purchased
95-23 more than 50 percent of the electric cooperative's annual energy
95-24 sales to a customer class in the test year, provided that the
95-25 petition includes a certification of the purchases; or
95-26 (3) an executive officer of an affected electric
95-27 utility, provided that the petition prescribes the particular class
96-1 or classes for which a review is requested.
96-2 (h) When a person files a petition under Subsection (g) of
96-3 this section, the person shall notify the electric cooperative in
96-4 writing of the action.
96-5 (i) The commission may on its own motion review the rates of
96-6 an electric cooperative if the commission first finds that there is
96-7 good cause to believe that the electric cooperative is earning more
96-8 than a reasonable return on overall system revenues or on revenue
96-9 from a rate class.
96-10 (j) The commission shall conduct a review under Subdivision
96-11 (1) or (2) of Subsection (g) of this section or under Subsection
96-12 (i) of this section in accordance with Section 43 of this Act and
96-13 the other applicable rate-setting principles of Article VI of this
96-14 Act, except that:
96-15 (1) the period for review does not begin until the
96-16 electric cooperative files a rate-filing package as required by
96-17 commission rules;
96-18 (2) the proposed change may not be suspended during
96-19 the pendency of the review; however, the electric cooperative shall
96-20 refund or credit against future bills all sums collected in excess
96-21 of the rate finally set by the commission, if the commission so
96-22 orders; and
96-23 (3) the electric cooperative shall observe the rates
96-24 set by the commission until the rates are changed as provided by
96-25 this section or by other sections of this Act.
96-26 (k) For a review conducted under Subdivision (3) of
96-27 Subsection (g) of this section, the electric cooperative shall file
97-1 with the commission a copy of the cost-of-service study required
97-2 under Subsection (c)(3) of this section not later than the 10th day
97-3 after the date the electric cooperative receives from the affected
97-4 electric utility notice that a petition has been filed. The
97-5 commission shall determine for each class for which review has been
97-6 requested the annual cost of providing service to the class, as
97-7 stated in the electric cooperative's cost-of-service study, and the
97-8 revenues for the class that would be produced by multiplying the
97-9 rate set by the electric cooperative by the annual billing units
97-10 for the class, as stated in the cost-of-service study. If the
97-11 electric cooperative proposes a rate class solely for a new
97-12 customer, the electric cooperative shall estimate the reasonable
97-13 annual cost of providing service to the class, and the electric
97-14 cooperative shall base class revenues on reasonable estimates of
97-15 billing units.
97-16 (l) The rate for each class for which review has been
97-17 requested under Subdivision (3) of Subsection (g) of this section
97-18 is suspended during the pendency of the review. The commission
97-19 shall dismiss the petition and approve the rates if the revenues
97-20 for the class are equal to or greater than the cost of providing
97-21 service to the class. The commission shall disapprove the rate if
97-22 the revenues for the class are less than the cost of providing
97-23 service to the class; however, this action does not affect
97-24 reconsideration of the rate as a part of any subsequent rate-making
97-25 proceeding. The rate adopted by the electric cooperative is deemed
97-26 approved and may be placed into effect if the commission fails to
97-27 make its final determination administratively not later than the
98-1 45th day after the date the electric cooperative files its
98-2 cost-of-service study.
98-3 (m) Except as provided by Subsection (a) of this section,
98-4 the members of an electric cooperative may at any time revoke the
98-5 electric cooperative's election to be exempt from rate regulation
98-6 or elect to again be exempt from rate regulation by majority vote
98-7 of the members voting.
98-8 (n) This section does not affect the application of other
98-9 provisions of this Act not directly related to rates or to the
98-10 authority of the commission to require an electric cooperative to
98-11 file reports required under this Act or rules adopted by the
98-12 commission. A service fee or a service rule or regulation set by
98-13 the electric cooperative under this section must comply with
98-14 commission rules applicable to all electric utilities. The
98-15 commission may determine whether an electric cooperative has
98-16 unlawfully charged, collected, or received a rate for electric
98-17 utility service.
98-18 SECTION 5.06. Article XIII, Public Utility Regulatory Act
98-19 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
98-20 adding Section 88B to read as follows:
98-21 Sec. 88B. (a) If the United States Congress enacts an
98-22 energy tax based on British thermal units (Btu) and the tax becomes
98-23 law, each electric utility shall state on each customer's bill the
98-24 amount included in the bill that is derived from that tax.
98-25 (b) The commission by rule shall prescribe the procedure an
98-26 electric utility shall use to determine the amount derived from the
98-27 tax and shall specify the form used for the statement.
99-1 ARTICLE 6
99-2 SECTION 6.01. Subsections (a), (b), and (e), Section 17,
99-3 Public Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
99-4 Statutes), are amended to read as follows:
99-5 (a) Subject to the limitations imposed in this Act, and for
99-6 the purpose of regulating rates and services so that such rates may
99-7 be fair, just, and reasonable, and the services adequate and
99-8 efficient, the governing body of each municipality shall have
99-9 exclusive original jurisdiction over all electric<, water, and
99-10 sewer> utility rates, operations, and services provided by an
99-11 electric<, water, and sewer> utility within its city or town
99-12 limits.
99-13 (b) A <At any time after two years have passed from the date
99-14 this Act becomes effective, a> municipality may elect to have the
99-15 commission exercise exclusive original jurisdiction over electric<,
99-16 water, or sewer> utility rates, operations, and services within the
99-17 incorporated limits of the municipality. The governing body of a
99-18 municipality may by ordinance elect to surrender its original
99-19 jurisdiction to the commission, or the governing body may submit
99-20 the question of the surrender to the qualified voters at a
99-21 municipal election. Upon receipt of a petition signed by the
99-22 lesser of 20,000 or ten percent of the number of qualified voters
99-23 voting in the last preceding general election in that municipality,
99-24 the governing body shall submit the question of the surrender of
99-25 the municipality's original jurisdiction to the commission at a
99-26 municipal election.
99-27 (e) The commission shall have exclusive original
100-1 jurisdiction over electric<, water, and sewer> utility rates,
100-2 operations, and services not within the incorporated limits of a
100-3 municipality exercising exclusive original jurisdiction over those
100-4 rates, operations, and services as provided in this Act.
100-5 SECTION 6.02. Subsections (p), (q), and (r), Section 18,
100-6 Public Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
100-7 Statutes), are amended to read as follows:
100-8 (p) <Before January 15 of each odd-numbered year, the
100-9 commission shall report to the legislature on the scope of
100-10 competition in regulated telecommunications markets and the impact
100-11 of competition on customers in both competitive and noncompetitive
100-12 markets, with a specific focus on rural markets. The report shall
100-13 include an assessment of the impact of competition on the rates and
100-14 availability of telecommunications services for residential and
100-15 business customers and shall specifically address any effects on
100-16 universal service. The report shall provide a summary of
100-17 commission actions over the preceding two years that reflect
100-18 changes in the scope of competition in regulated telecommunications
100-19 markets. The report shall also include recommendations to the
100-20 legislature for further legislation that the commission finds
100-21 appropriate to promote the public interest in the context of a
100-22 partially competitive telecommunications market.>
100-23 <(q)> The commission may exempt from any requirement of this
100-24 section an interexchange telecommunications carrier that the
100-25 commission determines does not have a significant effect on the
100-26 public interest, and it may exempt any interexchange carrier which
100-27 solely relies on the facilities of others to complete long distance
101-1 calls if the commission deems this action to be in the public
101-2 interest.
101-3 (q) <(r)> Requirements imposed by Subsections (c), (d), (k),
101-4 (l), (m), (n), (o), and (p)<, and (q)> of this section on an
101-5 interexchange telecommunications carrier shall apply to nondominant
101-6 carriers and shall constitute the minimum requirements to be
101-7 imposed by the commission for any dominant carrier.
101-8 SECTION 6.03. Subsection (c), Section 26, Public Utility
101-9 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), as
101-10 amended by Chapters 325 and 1167, Acts of the 71st Legislature,
101-11 Regular Session, 1989, is amended to reconcile those amendments to
101-12 read as follows:
101-13 (c)(1) Ratepayers of a municipally owned electric utility
101-14 outside the municipal limits may appeal any action of the governing
101-15 body affecting the rates of the municipally owned electric utility
101-16 through filing with the commission a petition for review signed by
101-17 the lesser of 10,000 or 5 percent of the ratepayers served by such
101-18 utility outside the municipal limits. For purposes of this
101-19 subsection each person receiving a separate bill shall be
101-20 considered as a ratepayer. But no person shall be considered as
101-21 being more than one ratepayer notwithstanding the number of bills
101-22 received. Such petition for review shall be considered properly
101-23 signed if signed by any person, or spouse of any such person, in
101-24 whose name residential utility service is carried.
101-25 (2) The municipality that owns the electric utility
101-26 shall on request disclose to any person the number of ratepayers
101-27 who reside outside the municipal limits. The municipality shall
102-1 provide the information by telephone or in a written form, as
102-2 preferred by the person making the request. The municipality may
102-3 not charge a fee for providing the information. The municipality
102-4 shall on request provide to any person a list of the names and
102-5 addresses of the ratepayers who reside outside the municipal
102-6 limits. The municipality may charge a reasonable fee to cover the
102-7 cost of providing the list.
102-8 (3) <(2)> Not later than the 14th day after the date
102-9 on which the governing body makes a final decision, the
102-10 municipality shall issue a written report stating the effect of the
102-11 decision on each class of ratepayers. The appeal process shall be
102-12 instituted by filing a petition for review with the commission and
102-13 serving copies on all parties to the original rate proceeding. The
102-14 petition must be filed not later than the 45th day after the date
102-15 on which the municipality issues the written report prescribed by
102-16 this subsection.
102-17 (4) Not later than the 90th day after the date on
102-18 which a petition for review that meets the requirements of this
102-19 subsection is filed, the municipality shall file with the
102-20 commission a rate application that complies in all material
102-21 respects with the rules and forms prescribed by the commission.
102-22 The commission may, for good cause shown, extend the <time> period
102-23 for filing the rate application.
102-24 SECTION 6.04. Section 41B, Public Utility Regulatory Act
102-25 (Article 1446c, Vernon's Texas Civil Statutes), as added by Chapter
102-26 1182, Acts of the 71st Legislature, Regular Session, 1989, is
102-27 amended to read as follows:
103-1 Sec. 41D <41B>. The commission shall not have the authority
103-2 to interfere with employee wages and benefits, working conditions,
103-3 or other terms or conditions of employment that are the product of
103-4 a collective bargaining agreement recognized under federal law.
103-5 Employee wage rates and benefit levels that are the product of such
103-6 bargaining shall be presumed reasonable.
103-7 SECTION 6.05. Subsection (c), Section 43, Public Utility
103-8 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
103-9 amended to read as follows:
103-10 (c) Whenever there is filed with the Regulatory Authority
103-11 any schedule modifying or resulting in a change in any rates then
103-12 in force, the Regulatory Authority shall on complaint by any
103-13 affected person or may on its own motion, at any time within 30
103-14 days from the date when such change would or has become effective,
103-15 and, if it so orders, without answer or other formal pleading by
103-16 the utility, but on reasonable notice, including notice to the
103-17 governing bodies of all affected municipalities and counties, enter
103-18 on a hearing to determine the propriety of such change. The
103-19 Regulatory Authority shall hold such a hearing in every case in
103-20 which the change constitutes a major change in rates, provided that
103-21 an informal proceeding may satisfy this requirement if no complaint
103-22 has been received before the expiration of 45 days after notice of
103-23 the change shall have been filed. In each case where the
103-24 commission determines it is in the public interest to collect
103-25 testimony at a regional hearing for the inclusion in the record,
103-26 the commission shall hold a regional hearing at an appropriate
103-27 location. A regional hearing is not required in a case involving a
104-1 <water, sewer, or> member-owned utility, unless the commission
104-2 determines otherwise.
104-3 SECTION 6.06. Section 49, Public Utility Regulatory Act
104-4 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
104-5 as follows:
104-6 Sec. 49. For the purposes of this article only,
104-7 "retail<: (a) "Retail> public utility" means any person,
104-8 corporation, <water supply or sewer service corporation,>
104-9 municipality, political subdivision or agency, or cooperative
104-10 corporation, now or hereafter operating, maintaining, or
104-11 controlling in Texas facilities for providing retail utility
104-12 service.
104-13 <(b) For the purposes of this article only, "public utility"
104-14 includes a water supply or sewer service corporation.>
104-15 SECTION 6.07. Subsections (a) and (b), Section 72, Public
104-16 Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
104-17 Statutes), are amended to read as follows:
104-18 (a) Any public utility<, water supply or sewer service
104-19 corporation,> or affiliated interest that knowingly violates a
104-20 provision of this Act, fails to perform a duty imposed on it, or
104-21 fails, neglects, or refuses to obey an order, rule, regulation,
104-22 direction, or requirement of the commission or decree or judgment
104-23 of a court, shall be subject to a civil penalty of not less than
104-24 $1,000 nor more than $5,000 for each offense.
104-25 (b) A public utility<, water supply or sewer service
104-26 corporation,> or affiliated interest commits a separate offense
104-27 each day it continues to violate the provisions of Subsection (a)
105-1 of this section.
105-2 SECTION 6.08. Subsection (a), Section 74, Public Utility
105-3 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
105-4 amended to read as follows:
105-5 (a) Except as provided by Section 117 <87B> of this Act, any
105-6 person or persons who willfully and knowingly violate the
105-7 provisions of this Act shall be guilty of a third degree felony.
105-8 SECTION 6.09. The following sections of the Public Utility
105-9 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes) are
105-10 repealed:
105-11 (1) Section 71B;
105-12 (2) Section 87A; and
105-13 (3) Section 90.
105-14 ARTICLE 7
105-15 SECTION 7.01. Article XIII, Public Utility Regulatory Act
105-16 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
105-17 adding Sections 91A and 91B to read as follows:
105-18 Sec. 91A. (a) The commission may receive, monitor, and
105-19 attempt to mediate complaints relating to cellular telephone
105-20 service that have been submitted by cellular customers or carriers.
105-21 (b) This section does not give the commission the authority
105-22 to regulate in any way cellular services or rates.
105-23 (c) This section expires August 31, 1995.
105-24 Sec. 91B. (a) The lieutenant governor and speaker of the
105-25 house of representatives shall appoint a joint interim committee
105-26 composed of members of the senate appointed by the lieutenant
105-27 governor and an equal number of members of the house of
106-1 representatives appointed by the speaker of the house of
106-2 representatives.
106-3 (b) The lieutenant governor shall designate a member of the
106-4 senate and the speaker of the house of representatives shall
106-5 designate a member of the house of representatives to serve as
106-6 co-presiding officers.
106-7 (c) Members of the committee serve without compensation.
106-8 The members are entitled to reimbursement for expenses from the
106-9 member's house to the same extent as for other legislative duties.
106-10 Expenses of cooperating and support agencies and offices, including
106-11 the cost of staff provided under Subsection (g) or (h) of this
106-12 section, shall be borne by those agencies.
106-13 (d) The joint committee shall study:
106-14 (1) the structure of the commission;
106-15 (2) state telecommunications regulatory policy with
106-16 specific attention to matters prescribed by the lieutenant governor
106-17 and speaker of the house of representatives;
106-18 (3) competition in providing local exchange service;
106-19 (4) regulation of exempt wholesale generators;
106-20 (5) the possibility for long-distance
106-21 telecommunications service within a local-access transport area
106-22 (intralata toll service) by interexchange telecommunications
106-23 carriers who are not local exchange companies, under the same
106-24 dialing arrangements as local exchange companies;
106-25 (6) tax issues, including investment tax credits,
106-26 accelerated depreciation, consolidated returns, affiliates, and
106-27 disallowances, for all utilities except for gas utilities;
107-1 (7) any other utility matter specified by the
107-2 lieutenant governor or speaker; and
107-3 (8) the limitations, if any, which may or may not be
107-4 imposed upon the use or non-use of customer specific information by
107-5 local exchange carriers.
107-6 (e) In addition to the duties prescribed by Subsection (d)
107-7 of this section, the committee shall supervise the commission in
107-8 the collection of information on current cellular telephone
107-9 services as prescribed by Section 91A of this Act.
107-10 (f) The joint committee shall develop a report that analyzes
107-11 the issues studied by the committee and that includes specific
107-12 policy options and recommended rule or statutory changes to
107-13 implement the policy options. The joint committee may make
107-14 preliminary reports but shall make a final report not later than
107-15 November 1, 1994.
107-16 (g) On request of the committee, the commission, the office,
107-17 the Texas Legislative Council, the governor's office, the senate,
107-18 and the house of representatives shall provide staff as necessary
107-19 to carry out the duties of the joint committee.
107-20 (h) If necessary to the discharge of its duties, the joint
107-21 committee may request the assistance of a state agency, department,
107-22 or office. The agency, department, or office shall provide the
107-23 requested assistance.
107-24 (i) In addition to the assistance provided under Subsections
107-25 (g) and (h) of this section, the interim committee may:
107-26 (1) employ staff appropriate to carry out the duties
107-27 of the committee; and
108-1 (2) employ professional consultants, as appropriate,
108-2 on a contract basis to conduct research into the matters the
108-3 committee is studying and to otherwise assist the committee.
108-4 (j) This section expires August 31, 1995.
108-5 SECTION 7.02. To facilitate the provision of all necessary
108-6 assistance to the joint interim committee and notwithstanding any
108-7 other provision of law, the tariffed rates established by the most
108-8 recent final order of the commission in a general rate case
108-9 regarding a local exchange company having more than two million
108-10 access lines in this state may not be changed by the commission
108-11 before September 1, 1995, provided that the local exchange company
108-12 shall comply with the rate freeze set forth in Section 41D(h),
108-13 Public Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
108-14 Statutes), and in the final order. However, if a rate reduction
108-15 was previously scheduled to become effective by commission action
108-16 approved before January 1, 1993, the reduction shall be made as
108-17 scheduled and the tariffed rate is that reduced rate. No earnings
108-18 sharing provision of any such order shall be extended. For the
108-19 company, the dollar amount of the infrastructure development
108-20 commitment made under Section 41D, Public Utility Regulatory Act
108-21 (Article 1446c, Vernon's Texas Civil Statutes), shall be deducted,
108-22 effective December 1, 1994, from net income as determined under
108-23 Section 41(c), Public Utility Regulatory Act (Article 1446c,
108-24 Vernon's Texas Civil Statutes), for the purpose of determining rate
108-25 of return under the Public Utility Regulatory Act (Article 1446c,
108-26 Vernon's Texas Civil Statutes).
108-27 SECTION 7.03. (a) Effective September 1, 1995, Subsection
109-1 (c), Section 3, Public Utility Regulatory Act (Article 1446c,
109-2 Vernon's Texas Civil Statutes), is amended to read as follows:
109-3 (c) The term "public utility" or "utility," when used in
109-4 this Act, includes any person, corporation, river authority,
109-5 cooperative corporation, or any combination thereof, other than a
109-6 municipal corporation <or a water supply or sewer service
109-7 corporation>, or their lessees, trustees, and receivers, now or
109-8 hereafter owning or operating for compensation in this state
109-9 equipment or facilities for:
109-10 (1) producing, generating, transmitting, distributing,
109-11 selling, or furnishing electricity ("electric utilities"
109-12 hereinafter) provided, however, that this definition shall not be
109-13 construed to apply to or include a qualifying small power producer
109-14 or qualifying cogenerator, as defined in Sections 3(17)(D) and
109-15 3(18)(C) of the Federal Power Act, as amended (16 U.S.C. Sections
109-16 796(17)(D) and 796(18)(C));
109-17 (2)<(A) the conveyance, transmission, or reception of
109-18 communications over a telephone system as a dominant carrier as
109-19 hereinafter defined ("telecommunications utilities" hereinafter);
109-20 provided that no person or corporation not otherwise a public
109-21 utility within the meaning of this Act shall be deemed such solely
109-22 because of the furnishing or furnishing and maintenance of a
109-23 private system or the manufacture, distribution, installation, or
109-24 maintenance of customer premise communications equipment and
109-25 accessories; and provided further that nothing in this Act shall be
109-26 construed to apply to telegraph services, television stations,
109-27 radio stations, community antenna television services, or
110-1 radio-telephone services that may be authorized under the Public
110-2 Mobile Radio Services rules of the Federal Communications
110-3 Commission, other than such radio-telephone services provided by
110-4 wire-line telephone companies under the Domestic Public Land Mobile
110-5 Radio Service and Rural Radio Service rules of the Federal
110-6 Communications Commission; and provided further that interexchange
110-7 telecommunications carriers (including resellers of interexchange
110-8 telecommunications services), specialized communications common
110-9 carriers, other resellers of communications, other communications
110-10 carriers who convey, transmit, or receive communications in whole
110-11 or in part over a telephone system, and providers of operator
110-12 services as defined in Section 18A(a) of this Act (except that
110-13 subscribers to customer-owned pay telephone service shall not be
110-14 deemed to be telecommunications utilities) who are not dominant
110-15 carriers are also telecommunications utilities, but the
110-16 commission's regulatory authority as to them is only as hereinafter
110-17 defined;>
110-18 <(B) "dominant carrier" when used in this Act
110-19 means (i) a provider of any particular communication service which
110-20 is provided in whole or in part over a telephone system who as to
110-21 such service has sufficient market power in a telecommunications
110-22 market as determined by the commission to enable such provider to
110-23 control prices in a manner adverse to the public interest for such
110-24 service in such market; and (ii) any provider of local exchange
110-25 telephone service within a certificated exchange area as to such
110-26 service. A telecommunications market shall be statewide until
110-27 January 1, 1985. After this date the commission may, if it
111-1 determines that the public interest will be served, establish
111-2 separate markets within the state. Prior to January 1, 1985, the
111-3 commission shall hold such hearings and require such evidence as is
111-4 necessary to carry out the public purpose of this Act and to
111-5 determine the need and effect of establishing separate markets.
111-6 Any such provider determined to be a dominant carrier as to a
111-7 particular telecommunications service in a market shall not be
111-8 presumed to be a dominant carrier of a different telecommunications
111-9 service in that market.>
111-10 <(3)> The term "public utility" or "utility" shall not
111-11 include any person or corporation not otherwise a public utility
111-12 that furnishes the services or commodity described in any paragraph
111-13 of this subsection only to itself, its employees, or tenants as an
111-14 incident of such employee service or tenancy, when such service or
111-15 commodity is not resold to or used by others. The term "electric
111-16 utility" shall not include any person or corporation not otherwise
111-17 a public utility that owns or operates in this state equipment or
111-18 facilities for producing, generating, transmitting, distributing,
111-19 selling, or furnishing electric energy to an electric utility, if
111-20 the equipment or facilities are used primarily for the production
111-21 and generation of electric energy for consumption by the person or
111-22 corporation. The term "public utility," "utility," or "electric
111-23 utility" shall not include any person or corporation not otherwise
111-24 a public utility that owns or operates in this state a recreational
111-25 vehicle park that provides metered electric service in accordance
111-26 with Article 1446d-2, Revised Statutes. A recreational vehicle
111-27 park owner is considered a public utility if the owner fails to
112-1 comply with Article 1446d-2, Revised Statutes, with regard to the
112-2 metered sale of electricity at the recreational vehicle park.
112-3 (b) Effective September 1, 1995, Section 18, Public Utility
112-4 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
112-5 amended to read as follows:
112-6 Sec. 18. (a) <It is the policy of this state to protect the
112-7 public interest in having adequate and efficient telecommunications
112-8 service available to all citizens of the state at just, fair, and
112-9 reasonable rates.> The legislature finds that the interexchange
112-10 telecommunications industry through technical advancements, federal
112-11 judicial and administrative actions, and the formulation of new
112-12 telecommunications enterprises has become and will continue to be
112-13 in many and growing areas a competitive industry which does not
112-14 lend itself to traditional public utility regulatory rules,
112-15 policies, and principles; and that therefore, the public interest
112-16 requires that new rules, policies, and principles be formulated and
112-17 applied to protect the public interest and to provide equal
112-18 opportunity to all interexchange telecommunications utilities in a
112-19 competitive marketplace. It is the purpose of this section to
112-20 grant to the commission the authority and the power under this Act
112-21 to carry out the public policy herein stated.
112-22 (b) <Subject to the limitations imposed in this Act, and for
112-23 the purpose of carrying out the public policy above stated and of
112-24 regulating rates, operations, and services so that such rates may
112-25 be just, fair, and reasonable, and the services adequate and
112-26 efficient, the commission shall have exclusive original
112-27 jurisdiction over the business and property of all
113-1 telecommunications utilities in this state. In the exercise of its
113-2 jurisdiction to regulate the rates, operations, and services of a
113-3 telecommunications utility providing service in a municipality on
113-4 the state line adjacent to a municipality in an adjoining state,
113-5 the commission may cooperate with the utility regulatory commission
113-6 of the adjoining state or the federal government and may hold joint
113-7 hearings and make joint investigations with any of those
113-8 commissions.>
113-9 <(c)> Except as provided by Subsections (e) and (f) of this
113-10 section and Section 18A of this Act, the commission shall only have
113-11 the following jurisdiction over all telecommunications utilities
113-12 that are interexchange telecommunications carriers but who are not
113-13 certificated local exchange companies <dominant carriers>:
113-14 (1) to require registration as provided in Subsection
113-15 (c) <(d)> of this section;
113-16 (2) to conduct such investigations as are necessary to
113-17 determine the existence, impact, and scope of competition in the
113-18 telecommunications industry, <including identifying dominant
113-19 carriers and defining the telecommunications market or markets,>
113-20 and in connection therewith may call and hold hearings, issue
113-21 subpoenas to compel the attendance of witnesses and the production
113-22 of papers and documents, and make findings of fact and decisions
113-23 with respect to administering the provisions of this Act or the
113-24 rules, orders, and other actions of the commission;
113-25 (3) to require the filing of such reports as the
113-26 commission may direct from time to time;
113-27 (4) to require the maintenance of statewide average
114-1 rates or prices of telecommunications service;
114-2 (5) to require that every local exchange area have
114-3 access to interexchange telecommunications service, except that an
114-4 interexchange telecommunications carrier must be allowed to
114-5 discontinue service to a local exchange area if comparable service
114-6 is available in the area and the discontinuance is not contrary to
114-7 the public interest. This section does not authorize the
114-8 commission to require an interexchange telecommunications carrier
114-9 that has not provided services to a local exchange area during the
114-10 previous 12 months and that has never provided services to that
114-11 same local exchange area for a cumulative period of one year at any
114-12 time in the past to initiate services to that local exchange area;
114-13 and
114-14 (6) to require the quality of interexchange
114-15 telecommunications service provided in each exchange to be adequate
114-16 to protect the public interest and the interests of customers of
114-17 that exchange if the commission determines that service to a local
114-18 exchange has deteriorated to the point that long distance service
114-19 is not reliable.
114-20 (c) <(d)> All providers of communications service described
114-21 in Subsection (b) <(c)> of this section who are providing such
114-22 service to the public on the effective date of this Act shall
114-23 register with the commission within 90 days of the effective date
114-24 of this Act unless the provider has previously registered with the
114-25 commission. All providers of communications service described in
114-26 Subsection (b) <(c)> of this section who commence such service to
114-27 the public thereafter shall register with the commission within 30
115-1 days of commencing service. Such registration shall be
115-2 accomplished by filing with the commission a description of the
115-3 location and type of service provided, the cost to the public of
115-4 such service, and such other registration information as the
115-5 commission may direct. Notwithstanding any other provision of this
115-6 Act, an interexchange telecommunications carrier doing business in
115-7 this state shall continue to maintain on file with the commission
115-8 tariffs or lists governing the terms of providing its services.
115-9 (d) <(e)(1) For the purpose of carrying out the public
115-10 policy stated in Subsection (a) of this section and any other
115-11 section of this Act notwithstanding, the commission is granted all
115-12 necessary power and authority under this Act to promulgate rules
115-13 and establish procedures applicable to local exchange companies for
115-14 determining the level of competition in specific telecommunications
115-15 markets and submarkets and providing appropriate regulatory
115-16 treatment to allow local exchange companies to respond to
115-17 significant competitive challenges. Nothing in this section is
115-18 intended to change the burden of proof of the local exchange
115-19 company under Sections 38, 39, 40, and 41 of Article VI of this
115-20 Act.>
115-21 <(2) In determining the level of competition in a
115-22 specific market or submarket, the commission shall hold an
115-23 evidentiary hearing to consider the following:>
115-24 <(A) the number and size of telecommunications
115-25 utilities or other persons providing the same, equivalent, or
115-26 substitutable service;>
115-27 <(B) the extent to which the same, equivalent,
116-1 or substitutable service is available;>
116-2 <(C) the ability of customers to obtain the
116-3 same, equivalent, or substitutable services at comparable rates,
116-4 terms, and conditions;>
116-5 <(D) the ability of telecommunications utilities
116-6 or other persons to make the same, equivalent, or substitutable
116-7 service readily available at comparable rates, terms, and
116-8 conditions;>
116-9 <(E) the existence of any significant barrier to
116-10 the entry or exit of a provider of the service; and>
116-11 <(F) other relevant information deemed
116-12 appropriate.>
116-13 <(3) The regulatory treatments which the commission
116-14 may implement include but are not limited to:>
116-15 <(A) approval of a range of rates for a specific
116-16 service;>
116-17 <(B) approval of customer-specific contracts for
116-18 a specific service; provided, however, that the commission shall
116-19 approve a contract to provide central office based PBX-type
116-20 services for systems of 200 stations or more, billing and
116-21 collection services, high-speed private line services of 1.544
116-22 megabits or greater, and customized services, provided that the
116-23 contract is filed at least 30 days before initiation of the service
116-24 contracted for; that the contract is accompanied with an affidavit
116-25 from the person or entity contracting for the telecommunications
116-26 service stating that he considered the acquisition of the same,
116-27 equivalent, or substitutable services by bid or quotation from a
117-1 source other than the local exchange company; that the local
117-2 exchange company is recovering the appropriate costs of providing
117-3 the services; and that approval of the contract is in the public
117-4 interest. The contract shall be approved or denied within 30 days
117-5 after filing, unless the commission for good cause extends the
117-6 effective date for an additional 35 days; and>
117-7 <(C) the detariffing of rates.>
117-8 <(f) Moreover, in order to encourage the rapid introduction
117-9 of new or experimental services or promotional rates, the
117-10 commission shall promulgate rules and establish procedures which
117-11 allow the expedited introduction of, the establishment and
117-12 adjustment of rates for, and withdrawal of such services, including
117-13 requests for such services made to the commission by the governing
117-14 body of a municipality served by a local exchange company having
117-15 more than 500,000 access lines throughout the state. Rates
117-16 established or adjusted at the request of a municipality may not
117-17 result in higher rates for ratepayers outside the boundaries of the
117-18 municipality and may not include any rates for local exchange
117-19 company interexchange services or interexchange carrier access
117-20 service.>
117-21 <(g) In promulgating new rules and establishing the
117-22 procedures contemplated in Subsections (e) and (f) of this section,
117-23 the commission shall seek to balance the public interest in a
117-24 technologically advanced telecommunications system providing a wide
117-25 range of new and innovative services with traditional regulatory
117-26 concerns for preserving universal service, prohibiting
117-27 anticompetitive practices, and preventing the subsidization of
118-1 competitive services with revenues from regulated monopoly
118-2 services. The commission shall promulgate these rules and
118-3 establish these procedures so as to incorporate an appropriate mix
118-4 of regulatory and market mechanisms reflecting the level and nature
118-5 of competition in the marketplace. Rates established under
118-6 Subsections (e) and (f) of this section shall not be (1)
118-7 unreasonably preferential, prejudicial, or discriminatory; (2)
118-8 subsidized either directly or indirectly by regulated monopoly
118-9 services; or (3) predatory or anticompetitive.>
118-10 <(h) The commission shall initiate a rulemaking proceeding
118-11 and take public comment and promulgate rules which prescribe the
118-12 standards necessary to ensure that all rates set under the
118-13 provisions of this section cover their appropriate costs as
118-14 determined by the commission. Until such rules are promulgated,
118-15 the commission shall use a costing methodology that is in the
118-16 public interest in determining whether the rates set under the
118-17 provisions of this section cover their appropriate costs.>
118-18 <(i) The commission is granted all necessary power and
118-19 authority to prescribe and collect fees and assessments from local
118-20 exchange companies necessary to recover the commission's and the
118-21 Office of Public Utility Counsel's costs of activities carried out
118-22 and services provided under Subsections (e), (f), (g), (h), (i),
118-23 (j), and (k) of this section.>
118-24 <(j) Subsections (e) and (f) of this section are not
118-25 applicable to basic local exchange service, including local
118-26 measured service. Paragraph (B) of Subdivision (3) of Subsection
118-27 (e) of this section is not applicable to message telecommunications
119-1 services, switched access services for interexchange carriers, or
119-2 wide area telecommunications service. A local exchange company may
119-3 not price similar services provided pursuant to contracts under
119-4 Paragraph (B) of Subdivision (3) of Subsection (e) of this section
119-5 in an unreasonably discriminatory manner. For purposes of this
119-6 section, similar services shall be defined as those services which
119-7 are provided at or near the same point in time, which have the same
119-8 characteristics and which are provided under the same or similar
119-9 circumstances.>
119-10 <(k)> Before January 15 of each odd-numbered year, the
119-11 commission shall report to the legislature on the scope of
119-12 competition in regulated telecommunications markets and the impact
119-13 of competition on customers in both competitive and noncompetitive
119-14 markets, with a specific focus on rural markets. The report shall
119-15 include an assessment of the impact of competition on the rates and
119-16 availability of telecommunications services for residential and
119-17 business customers and shall specifically address any effects on
119-18 universal service. The report shall provide a summary of
119-19 commission actions over the preceding two years which reflect
119-20 changes in the scope of competition in regulated telecommunications
119-21 markets. The report shall also include recommendations to the
119-22 legislature for further legislation which the commission finds
119-23 appropriate to promote the public interest in the context of a
119-24 partially competitive telecommunications market.
119-25 (e) <(l)> Notwithstanding any other provision of this Act,
119-26 the commission may enter such orders as may be necessary to protect
119-27 the public interest, including the imposition on any specific
120-1 service or services of its full regulatory authority under Articles
120-2 III through XI of this Act, if the commission upon complaint from
120-3 another interexchange telecommunications carrier finds by a
120-4 preponderance of the evidence upon notice and hearing that an
120-5 interexchange telecommunications carrier has engaged in predatory
120-6 pricing or attempted to engage in predatory pricing <conduct that
120-7 demonstrates the ability to control prices in a manner adverse to
120-8 the public interest>.
120-9 (f) <(m)> Notwithstanding any other provision of this Act,
120-10 the commission may enter such orders as may be necessary to protect
120-11 the public interest if the commission finds upon notice and hearing
120-12 that an interexchange telecommunications carrier has:
120-13 (1) failed to maintain statewide average rates;
120-14 (2) abandoned interexchange message telecommunications
120-15 service to a local exchange area in a manner contrary to the public
120-16 interest; or
120-17 (3) engaged in a pattern of preferential or
120-18 discriminatory activities prohibited by Sections 45 and 47 of this
120-19 Act, except that nothing in this Act shall prohibit volume
120-20 discounts or other discounts based on reasonable business purposes.
120-21 (g) <(n)> In any proceeding before the commission alleging
120-22 conduct or activities by an interexchange telecommunications
120-23 carrier against another interexchange carrier in contravention of
120-24 Subsections (e), (f), and (h) <(l), (m), and (o)> of this section,
120-25 the burden of proof shall be upon the complaining interexchange
120-26 telecommunications carrier; however, in such proceedings brought by
120-27 customers or their representatives who are not themselves
121-1 interexchange telecommunications carriers or in such proceedings
121-2 initiated by the commission's general counsel, the burden of proof
121-3 shall be upon the respondent interexchange telecommunications
121-4 carrier. However, if the commission finds it to be in the public
121-5 interest, the commission may impose the burden of proof in such
121-6 proceedings on the complaining party.
121-7 (h) <(o)> The commission shall have the authority to require
121-8 that a service provided by an interexchange telecommunications
121-9 carrier described in Subsection (b) <(c)> of this section be made
121-10 available in an exchange served by the carrier within a reasonable
121-11 time after receipt of a bona fide request for such service in that
121-12 exchange, subject to the ability of the local exchange carrier to
121-13 provide the required access or other service. No carrier shall be
121-14 required to extend a service to an area if provision of that
121-15 service would impose, after consideration of the public interest to
121-16 be served, unreasonable costs upon or require unreasonable
121-17 investments by the interexchange telecommunications carrier. The
121-18 commission may require such information from interexchange carriers
121-19 and local exchange carriers as may be necessary to enforce this
121-20 provision.
121-21 (i) <(p) Before January 15 of each odd-numbered year, the
121-22 commission shall report to the legislature on the scope of
121-23 competition in regulated telecommunications markets and the impact
121-24 of competition on customers in both competitive and noncompetitive
121-25 markets, with a specific focus on rural markets. The report shall
121-26 include an assessment of the impact of competition on the rates and
121-27 availability of telecommunications services for residential and
122-1 business customers and shall specifically address any effects on
122-2 universal service. The report shall provide a summary of
122-3 commission actions over the preceding two years that reflect
122-4 changes in the scope of competition in regulated telecommunications
122-5 markets. The report shall also include recommendations to the
122-6 legislature for further legislation that the commission finds
122-7 appropriate to promote the public interest in the context of a
122-8 partially competitive telecommunications market.>
122-9 <(q)> The commission may exempt from any requirement of this
122-10 section an interexchange telecommunications carrier that the
122-11 commission determines does not have a significant effect on the
122-12 public interest, and it may exempt any interexchange carrier which
122-13 solely relies on the facilities of others to complete long distance
122-14 calls if the commission deems this action to be in the public
122-15 interest.
122-16 (j) <(r)> Requirements imposed by Subsections (b), (c), (e),
122-17 (f), (g), (h), (i), and (k) <(c), (d), (l), (m), (n), (o), (p), and
122-18 (q)> of this section on <an> interexchange telecommunications
122-19 carriers who are not certificated local exchange companies
122-20 <carrier> shall apply to other <nondominant> carriers who are not
122-21 certificated local exchange companies <and shall constitute the
122-22 minimum requirements to be imposed by the commission for any
122-23 dominant carrier>.
122-24 (k) The commission shall have exclusive original
122-25 jurisdiction over interexchange telecommunications carriers. For
122-26 purposes of this section, interexchange telecommunications carriers
122-27 (including resellers of interexchange telecommunications services),
123-1 specialized communications common carriers, other resellers of
123-2 communications, other communications carriers who convey, transmit,
123-3 or receive communications in whole or in part over a telephone
123-4 system, and providers of operator services as defined in Section
123-5 18A(a) of this Act (except that subscribers to customer-owned pay
123-6 telephone service shall not be deemed to be telecommunications
123-7 utilities) are telecommunications utilities, but the commission's
123-8 regulatory authority as to them is only as provided by this
123-9 section.
123-10 (c) The following provisions of the Public Utility
123-11 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes) are
123-12 repealed effective September 1, 1995:
123-13 (1) Section 36A;
123-14 (2) Section 39(c);
123-15 (3) Section 41D;
123-16 (4) Section 41(c)(4);
123-17 (5) Subsection (i), Section 43;
123-18 (6) Section 43A;
123-19 (7) Section 43B;
123-20 (8) Section 43C;
123-21 (9) Section 61;
123-22 (10) Section 93;
123-23 (11) Section 93B;
123-24 (12) Article XIV; and
123-25 (13) Article XV.
123-26 SECTION 7.04. (a) The method of calculating income taxes
123-27 and the treatment of federal income tax expenses and savings for
124-1 ratemaking purposes for public utilities shall be the same as the
124-2 method adopted by the Public Utility Commission of Texas in
124-3 commission rate orders signed and dated between September 1, 1988,
124-4 and September 1, 1992.
124-5 (b) This section governs all proceedings, orders, judgments,
124-6 and decrees in rate applications pending or subject to or on appeal
124-7 as of the date of enactment of this Act, before any regulatory
124-8 authority or court, and to all rate applications filed until the
124-9 Legislature of the State of Texas takes action on the study
124-10 required by Section 7.01 of this Act.
124-11 SECTION 7.05. Article XIII, Public Utility Regulatory Act
124-12 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
124-13 adding Section 93A to read as follows:
124-14 Sec. 93A. (a) To address telephone calling needs between
124-15 nearby telephone exchanges, the commission shall initiate a
124-16 rulemaking proceeding to approve rules to provide for an expedited
124-17 hearing to allow the expanding of toll free calling areas according
124-18 to the following criteria:
124-19 (1) Toll free calling boundaries may only be expanded
124-20 under this section after the filing of a petition signed by the
124-21 lesser of five percent of the subscribers or 100 subscribers within
124-22 an exchange. If such a petition is filed with the commission, the
124-23 commission shall order the local exchange company to provide for
124-24 the balloting of its subscribers within the petitioning exchange
124-25 and, if there is an affirmative vote of at least 70 percent of
124-26 those responding, the commission shall consider the request.
124-27 (2) The commission shall provide for the expansion of
125-1 toll free calling areas for each local exchange customer in the
125-2 petitioning exchange if the petitioning exchange serves not more
125-3 than 10,000 lines and if:
125-4 (A) the petitioning exchange is located within
125-5 22 miles of the exchange requested for toll free calling service;
125-6 or
125-7 (B) the petitioning exchange shares a community
125-8 of interest with the exchange requested for toll free calling
125-9 service. For purposes of this paragraph, "community of interest"
125-10 includes areas that have a relationship because of schools,
125-11 hospitals, local governments, business centers, and other
125-12 relationships the unavailability of which would cause a hardship to
125-13 the residents of the area but need not include an area where the
125-14 affected central offices are more than 50 miles apart.
125-15 (3)(A) The local exchange company shall recover all of
125-16 its costs incurred and all loss of revenue from any expansion of
125-17 toll free calling areas under this section through a request other
125-18 than a revenue requirement showing by:
125-19 (i) a monthly fee for toll free calling
125-20 service of not more than $3.50 per line for residential customers
125-21 nor more than $7 per line for business customers, to be collected
125-22 from all of the customers in the petitioning exchange and only
125-23 until the local exchange company's next general rate case; or
125-24 (ii) a monthly fee for toll free calling
125-25 service for all of the local exchange company's local exchange
125-26 service customers in the state in addition to the company's current
125-27 local exchange rates; or
126-1 (iii) both (i) and (ii).
126-2 (B) A local exchange company may not recover
126-3 regulatory case expenses under this section by surcharging
126-4 petitioning exchange subscribers.
126-5 (b)(1) The commission and a local exchange company are not
126-6 required to comply with this section with regard to a petitioning
126-7 exchange or petitioned exchange if:
126-8 (A) the commission determines that there has
126-9 been a good and sufficient showing of a geographic or technological
126-10 infeasibility to serve the area;
126-11 (B) the local exchange company has less than
126-12 10,000 lines;
126-13 (C) the petitioning or petitioned exchange is
126-14 served by a cooperative;
126-15 (D) extended area service or extended
126-16 metropolitan service is currently available between the petitioning
126-17 and petitioned exchanges; or
126-18 (E) the petitioning or petitioned exchange is a
126-19 metropolitan exchange.
126-20 (2) The commission may expand the toll free calling
126-21 area into an exchange not within a metropolitan exchange but within
126-22 the local calling area contiguous to a metropolitan exchange that
126-23 the commission determines to have a community of interest
126-24 relationship with the petitioning exchange. For the purposes of
126-25 this section, metropolitan exchange, local calling area of a
126-26 metropolitan exchange, and exchange have the same meanings and
126-27 boundaries as currently defined and approved by the commission.
127-1 However, under no circumstances shall a petitioning or petitioned
127-2 exchange be split in the provision of a toll free calling area.
127-3 (c) The commission may, in order to promote the wide
127-4 dispersion of pay telephones, either exempt such telephones from
127-5 the provisions of this section or may change the rates to be
127-6 charged from such telephones in an amount sufficient to promote
127-7 this goal.
127-8 SECTION 7.06. (a) Subchapter D, Chapter 74, Property Code,
127-9 is amended by adding Section 74.3011 to read as follows:
127-10 Sec. 74.3011. DELIVERY OF MONEY TO RURAL SCHOLARSHIP FUND.
127-11 (a) Notwithstanding and in addition to any other provision of this
127-12 chapter or other law, a local telephone exchange company may
127-13 deliver reported money to a scholarship fund for rural students
127-14 instead of delivering the money to the state treasurer as
127-15 prescribed by Section 74.301.
127-16 (b) A local telephone exchange company may deliver the money
127-17 under this section only to a scholarship fund established by one or
127-18 more local telephone exchange companies in this state to enable
127-19 needy students from rural areas to attend college, technical
127-20 school, or another postsecondary educational institution.
127-21 (c) A local telephone exchange company shall file with the
127-22 state treasurer a verification of money delivered under this
127-23 section that complies with Section 74.302.
127-24 (d) A claim for money delivered to a scholarship fund under
127-25 this section must be filed with the local telephone exchange
127-26 company that delivered the money. The local telephone exchange
127-27 company shall forward the claim to the administrator of the
128-1 scholarship fund to which the money was delivered. The scholarship
128-2 fund shall pay the claim if the fund determines in good faith that
128-3 the claim is valid. A person aggrieved by a claim decision may
128-4 file a suit against the fund in a district court in the county in
128-5 which the administrator of the scholarship fund is located in
128-6 accordance with Section 74.506.
128-7 (e) The state treasurer shall prescribe forms and procedures
128-8 governing this section, including forms and procedures relating to:
128-9 (1) notice of presumed abandoned property;
128-10 (2) delivery of reported money to a scholarship fund;
128-11 and
128-12 (3) filing of a claim.
128-13 (f) In this section, "local telephone exchange company"
128-14 means a telecommunications utility certificated to provide local
128-15 exchange service within the state and that is a telephone
128-16 cooperative or has fewer than 50,000 access lines in service in
128-17 this state.
128-18 (b) Section 74.3011, Property Code, as added by this
128-19 section, applies only to money that a local telephone exchange
128-20 company would otherwise be required to deliver to the state
128-21 treasurer on or after the effective date of this section. Money
128-22 that was required to be delivered to the state treasurer before the
128-23 effective date of this section is governed by the law in effect
128-24 when the money was required to be delivered, and that law is
128-25 continued in effect for that purpose.
128-26 SECTION 7.07. Nothing in this Act shall be construed to
128-27 abrogate any agreement specified in the February 2, 1990,
129-1 Stipulation and Agreement in Public Utility Commission of Texas
129-2 Docket No. 8585/8218 (Stipulation). Any flow through of access
129-3 reductions by an interexchange telecommunications carrier which is
129-4 required by said Stipulation shall provide reductions to each
129-5 affected type of service in the same relative proportion as the
129-6 annual access minutes of use billed to that type of service. Any
129-7 interexchange telecommunications carrier required by the
129-8 Stipulation to flow through access reductions resulting from Docket
129-9 No. 8585/8218 shall deliver revised tariff sheets reflecting such
129-10 flow through, together with supporting documentation, to the Public
129-11 Utility Commission of Texas staff, for review and concurrence,
129-12 within 60 days of implementation of the last rate reduction
129-13 required by said Stipulation.
129-14 ARTICLE 8
129-15 SECTION 8.01. Section 1, Chapter 556, Acts of the 68th
129-16 Legislature, Regular Session, 1983 (Article 9021, Vernon's Texas
129-17 Civil Statutes), is amended by amending Subdivision (1) and adding
129-18 Subdivisions (3) and (4) to read as follows:
129-19 (1) "Equipment" means a line, wire, cable, pipe,
129-20 conduit, conductor, pole, or other facility for transmission of
129-21 community antenna or cable television service or for the provision
129-22 of telecommunications service.
129-23 (3) "Telecommunications common carrier" means a person
129-24 who provides telecommunications service.
129-25 (4) "Telecommunications service" means the electronic
129-26 or optical transmission of information between separate points by a
129-27 prearranged means.
130-1 SECTION 8.02. Section 2, Chapter 556, Acts of the 68th
130-2 Legislature, Regular Session, 1983 (Article 9021, Vernon's Texas
130-3 Civil Statutes), is amended to read as follows:
130-4 Sec. 2. Installation and Maintenance. In any unincorporated
130-5 area in the state, a person in the business of providing community
130-6 antenna or cable television service to the public or of operating
130-7 as a telecommunications common carrier may install and maintain
130-8 equipment through, under, along, across, and over a utility
130-9 easement, a public road, an alley, or a body of public water in the
130-10 state, in accordance with this Act.
130-11 SECTION 8.03. (a) A building owner, building manager, or
130-12 tenant that allows building access to a telecommunications common
130-13 carrier or telecommunications utility for the installation and
130-14 maintenance of telecommunications equipment shall allow building
130-15 access for that purpose to all telecommunications common carriers
130-16 on a nondiscriminatory basis and with reasonable terms and
130-17 conditions.
130-18 (b) A landlord, building owner, or building manager may not
130-19 discriminate between tenants in a rental charge or otherwise on the
130-20 basis that a particular telecommunications carrier is serving or is
130-21 not serving a tenant.
130-22 (c) In this section:
130-23 (1) "Telecommunications common carrier" means a person
130-24 who provides telecommunications service.
130-25 (2) "Telecommunications service" means the electronic
130-26 or optical transmission of information between separate points by a
130-27 prearranged means.
131-1 ARTICLE 9
131-2 SECTION 9.01. Except as otherwise provided by this Act, this
131-3 Act takes effect September 1, 1993.
131-4 SECTION 9.02. The importance of this legislation and the
131-5 crowded condition of the calendars in both houses create an
131-6 emergency and an imperative public necessity that the
131-7 constitutional rule requiring bills to be read on three several
131-8 days in each house be suspended, and this rule is hereby suspended.