By: Armbrister S.B. No. 965
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the powers and duties of the Public Utility Commission
1-2 of Texas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.002, Public Utility Regulatory Act of
1-5 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
1-6 to read as follows:
1-7 Sec. 1.002. LEGISLATIVE POLICY AND PURPOSE. (a) This Act
1-8 is enacted to protect the public interest inherent in the rates and
1-9 services of public utilities. The legislature finds that
1-10 traditionally public utilities are by definition monopolies in the
1-11 areas they serve; that therefore the normal forces of competition
1-12 which operate to regulate prices in a free enterprise society do
1-13 not operate; and that therefore utility rates, operations, and
1-14 services are regulated by public agencies with the objective that
1-15 this regulation shall operate as a substitute for competition. The
1-16 purpose of this Act is to establish a comprehensive regulatory
1-17 system which is adequate to the task of regulating public utilities
1-18 as defined by this Act, to assure rates, operations, and services
1-19 which are just and reasonable to the consumers and to the
1-20 utilities.
1-21 (b) The commission shall promote public awareness of changes
1-22 in the electric and telecommunications markets, provide customers
1-23 with information necessary to make informed choices about available
2-1 options, and ensure that customers have an adequate understanding
2-2 of their rights.
2-3 SECTION 2. Section 1.003, Public Utility Regulatory Act of
2-4 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
2-5 by amending Subdivision (14) and adding Subdivision (19) to read as
2-6 follows:
2-7 (14) "Rate" means and includes every compensation,
2-8 tariff, charge, fare, toll, rental, and classification, or any of
2-9 them demanded, observed, charged, or collected whether directly or
2-10 indirectly by any public utility for any service, product, or
2-11 commodity described in the definition of "utility" in Section
2-12 2.0011 [2.001] or 3.002 of this Act and any rules, regulations,
2-13 practices, or contracts affecting any such compensation, tariff,
2-14 charge, fare, toll, rental, or classification.
2-15 (19) "Alternative dispute resolution" includes:
2-16 (A) a procedure described by Chapter 154, Civil
2-17 Practice and Remedies Code; and
2-18 (B) a combination of the procedures described by
2-19 Chapter 154, Civil Practice and Remedies Code.
2-20 SECTION 3. Subsections (d), (e), and (f), Section 1.023,
2-21 Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
2-22 Texas Civil Statutes), are amended to read as follows:
2-23 (d) A person who is required to register as a lobbyist under
2-24 Chapter 305, Government Code, because of the person's activities
2-25 for compensation on behalf of a profession related to the operation
3-1 of the commission may not serve as a member of the commission or
3-2 serve as the public utility counsel [or act as the general counsel
3-3 to the commission].
3-4 (e) A person is not eligible for appointment as a public
3-5 member of the commission or for employment as the [general counsel
3-6 or] executive director of the commission if:
3-7 (1) the person serves on the board of directors of a
3-8 company that supplies fuel, utility-related services, or
3-9 utility-related products to regulated or unregulated electric or
3-10 telecommunications utilities; or
3-11 (2) the person or the person's spouse:
3-12 (A) is employed by or participates in the
3-13 management of a business entity or other organization regulated by
3-14 the commission or receiving funds from the commission;
3-15 (B) owns or controls, directly or indirectly,
3-16 more than a 10 percent interest or a pecuniary interest with a
3-17 value exceeding $10,000 in:
3-18 (i) a business entity or other
3-19 organization regulated by the commission or receiving funds from
3-20 the commission; or
3-21 (ii) any utility competitor, utility
3-22 supplier, or other entity affected by a commission decision in a
3-23 manner other than by the setting of rates for that class of
3-24 customer;
3-25 (C) uses or receives a substantial amount of
4-1 tangible goods, services, or funds from the commission, other than
4-2 compensation or reimbursement authorized by law for commission
4-3 membership, attendance, or expenses; or
4-4 (D) notwithstanding Paragraph (B) of this
4-5 subdivision, has an interest in a mutual fund or retirement fund in
4-6 which more than 10 percent of the fund's holdings at the time of
4-7 appointment is in a single utility, utility competitor, or utility
4-8 supplier in this state and the person does not disclose this
4-9 information to the governor, senate, commission, or other entity,
4-10 as appropriate.
4-11 (f) Notwithstanding any other provision of this Act, a
4-12 person otherwise ineligible because of the application of
4-13 Subsection (e)(2)(B) of this section may be appointed to the
4-14 commission and serve as a commissioner or may be employed as the
4-15 [general counsel or] executive director if the person:
4-16 (1) notifies the attorney general and commission that
4-17 the person is ineligible because of the application of Subsection
4-18 (e)(2)(B) of this section; and
4-19 (2) divests the person or the person's spouse of the
4-20 ownership or control before beginning service or employment, or
4-21 within a reasonable time if the person is already serving or
4-22 employed at the time Subsection (e)(2)(B) of this section first
4-23 applies to the person.
4-24 SECTION 4. Subtitle B, Title I, Public Utility Regulatory
4-25 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
5-1 amended by adding Sections 1.0235, 1.0241, and 1.0245 to read as
5-2 follows:
5-3 Sec. 1.0235. PROHIBITION ON SEEKING ANOTHER OFFICE. A
5-4 person may not seek nomination or election to another civil office
5-5 of this state or of the United States while serving as a
5-6 commissioner. If a commissioner files for nomination or election
5-7 to another civil office of this state or of the United States, the
5-8 person's office as commissioner immediately becomes vacant, and the
5-9 governor shall appoint a successor.
5-10 Sec. 1.0241. PROHIBITED ACTIVITIES. (a) During the period
5-11 of service with the commission or the State Office of
5-12 Administrative Hearings, a commissioner, commission employee, or
5-13 employee of the State Office of Administrative Hearings involved in
5-14 hearing utility cases may not:
5-15 (1) have a pecuniary interest in a rate regulated
5-16 entity, direct competitor, or affected entity;
5-17 (2) directly or indirectly own or control securities
5-18 in a rate regulated entity, direct competitor, or affected entity;
5-19 (3) accept a gift, gratuity, or entertainment from a
5-20 rate regulated entity, direct competitor, or affected entity;
5-21 (4) represent a person before the commission or State
5-22 Office of Administrative Hearings or a court in a particular matter
5-23 in which the commissioner or employee was personally involved while
5-24 associated with the commission or State Office of Administrative
5-25 Hearings; or
6-1 (5) directly or indirectly solicit, request from, or
6-2 suggest or recommend to a rate regulated entity, direct competitor,
6-3 or affected entity the appointment to a position or the employment
6-4 of a person, including an appointment or employment that would
6-5 violate Chapter 572, Government Code.
6-6 (b) A rate regulated entity, direct competitor, or affected
6-7 entity may not give or offer to give a gift, gratuity, employment,
6-8 or entertainment to a commissioner or a commission employee.
6-9 (c) It is not a violation of this section if a commissioner,
6-10 commission employee, or employee of the State Office of
6-11 Administrative Hearings, on becoming the owner of stocks, bonds, or
6-12 another pecuniary interest in a rate regulated entity, direct
6-13 competitor, or affected entity otherwise than voluntarily, informs
6-14 the commission or office, as appropriate, and the attorney general
6-15 of the ownership and divests the ownership or interest within a
6-16 reasonable time.
6-17 (d) It is not a violation of this section if a pecuniary
6-18 interest is held indirectly by ownership of an interest in a
6-19 retirement system, institution, or fund that in the normal course
6-20 of business invests in diverse securities independently of the
6-21 control of the commissioner, commission employee, or employee of
6-22 the State Office of Administrative Hearings.
6-23 (e) This section does not apply to a contract for a product
6-24 or service of a rate regulated entity, direct competitor, or
6-25 affected entity, or for equipment for use of such a product or
7-1 service, when a commissioner, commission employee, or employee of
7-2 the State Office of Administrative Hearings is acting as a
7-3 consumer.
7-4 (f) In this section:
7-5 (1) "Affected entity" means a business entity,
7-6 including an affiliate, that furnishes goods or services to rate
7-7 regulated entities, affiliates, or direct competitors if the value
7-8 of the goods or services is equal to at least the greater of
7-9 $10,000 or 10 percent of the affiliate's or entity's business. The
7-10 term includes the affiliate's or entity's agent, representative,
7-11 attorney, employee, officer, owner, director, or partner.
7-12 (2) "Direct competitor" means an entity that provides
7-13 services that are the same as, equivalent to, or substitutable for
7-14 services provided by a rate regulated entity within a geographic
7-15 market or submarket in this state at rates, terms, and conditions
7-16 that are comparable to those offered by the rate regulated entity.
7-17 (3) "Participated" means to have taken an action as a
7-18 commission officer or employee or employee of the State Office of
7-19 Administrative Hearings by approving, disapproving, or recommending
7-20 a decision, by giving advice, or by taking similar action.
7-21 (4) "Particular matter" means a specific
7-22 investigation, application, request for a ruling or determination,
7-23 rulemaking proceeding, contract, claim, charge, accusation, arrest,
7-24 or judicial or other proceeding.
7-25 (5) "Pecuniary interest" includes income,
8-1 compensation, and payment of any kind, in addition to an ownership
8-2 interest, as an officer, director, partner, owner, employee,
8-3 attorney, consultant, or otherwise.
8-4 (6) "Rate regulated entity" means:
8-5 (A) a public utility as defined by Section
8-6 2.0011 of this Act; or
8-7 (B) a dominant carrier as defined by Section
8-8 3.002 of this Act.
8-9 Sec. 1.0245. QUALIFICATIONS AND STANDARDS OF CONDUCT
8-10 INFORMATION. The executive director or the executive director's
8-11 designee shall provide to commissioners and commission employees as
8-12 often as necessary information regarding their:
8-13 (1) qualifications for office or employment under this
8-14 Act; and
8-15 (2) responsibilities under applicable laws relating to
8-16 standards of conduct for state officers and employees.
8-17 SECTION 5. Subsection (a), Section 1.026, Public Utility
8-18 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
8-19 Statutes), is amended to read as follows:
8-20 (a) It is a ground for removal from the commission if a
8-21 member:
8-22 (1) does not have at the time of appointment the
8-23 qualifications required by Section 1.023 of this Act;
8-24 (2) does not maintain during service on the commission
8-25 the qualifications required by Section 1.023 of this Act;
9-1 (3) violates a prohibition established by Section
9-2 1.023, 1.0235 [1.024], or 1.0241 [1.025] of this Act;
9-3 (4) cannot discharge the member's duties for a
9-4 substantial part of the term for which the member is appointed
9-5 because of illness or disability; or
9-6 (5) is absent from more than half of the regularly
9-7 scheduled commission meetings that the member is eligible to attend
9-8 during a calendar year unless the absence is excused by majority
9-9 vote of the commission.
9-10 SECTION 6. Subsections (a), (c), and (d), Section 1.028,
9-11 Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
9-12 Texas Civil Statutes), are amended to read as follows:
9-13 (a) The commission shall employ an executive director[, a
9-14 general counsel,] and such officers and other employees as it deems
9-15 necessary to carry out the provisions of this Act. All employees
9-16 receive such compensation as is fixed by the legislature. The
9-17 commission shall develop and implement policies that clearly define
9-18 the respective responsibilities of the commission and the staff of
9-19 the commission.
9-20 (c) The commission [general counsel and his] staff is [are]
9-21 responsible for the gathering of information relating to all
9-22 matters within the authority of the commission.
9-23 (d) The duties of the commission staff [general counsel]
9-24 include:
9-25 (1) accumulation of evidence and other information
10-1 from public utilities and from the accounting and technical and
10-2 other staffs of the commission and from other sources for the
10-3 purposes specified herein;
10-4 (2) preparation and presentation of such evidence
10-5 before the commission or its appointed examiner in proceedings;
10-6 (3) conduct of investigations of public utilities
10-7 under the jurisdiction of the commission;
10-8 (4) preparation of proposed changes in the rules of
10-9 the commission;
10-10 (5) preparation of recommendations that the commission
10-11 undertake investigation of any matter within its authority;
10-12 (6) preparation of recommendations and a report of
10-13 such staff for inclusion in the annual report of the commission;
10-14 (7) protection and representation of the public
10-15 interest and coordination and direction of the preparation and
10-16 presentation of evidence from the commission staff in all cases
10-17 before the commission as necessary to effect the objectives and
10-18 purposes stated in this Act and ensure protection of the public
10-19 interest; [and]
10-20 (8) preparation of proposed orders under Section 1.105
10-21 of this Act;
10-22 (9) preparation of staff reports under Section 1.106
10-23 of this Act; and
10-24 (10) such other activities as are reasonably necessary
10-25 to enable the staff [him] to perform the staff's [his] duties.
11-1 SECTION 7. Section 1.0512, Public Utility Regulatory Act of
11-2 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
11-3 to read as follows:
11-4 Sec. 1.0512. PROHIBITION OF [EMPLOYMENT OR] REPRESENTATION.
11-5 (a) [The counsellor may not within two years, and an employee of
11-6 the office may not within one year after his employment with the
11-7 office has ceased, be employed by a public utility which was in the
11-8 scope of the counsellor's or employee's official responsibility
11-9 while the counsellor or employee was associated with the office.]
11-10 [(b)] During the time the counsellor or an employee of the
11-11 office is associated with the office [or at any time after], the
11-12 counsellor or employee may not represent a person, corporation, or
11-13 other business entity before the commission or State Office of
11-14 Administrative Hearings or a court in a particular matter in which
11-15 the counsellor or employee was personally involved while associated
11-16 with the office [or a matter that was within the counsellor's or
11-17 employee's official responsibility while the counsellor or employee
11-18 was associated with the office].
11-19 (b) In this section, "particular matter" has the meaning
11-20 assigned by Section 1.0241 of this Act.
11-21 SECTION 8. Section 1.052, Public Utility Regulatory Act of
11-22 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
11-23 to read as follows:
11-24 Sec. 1.052. INTEREST PROHIBITED. During the period of the
11-25 counsellor's employment [and for a period of two years following
12-1 the termination of employment], it shall be unlawful for any person
12-2 employed as counsellor to have a direct or indirect interest in any
12-3 utility company regulated under this Act, to provide legal services
12-4 directly or indirectly to or be employed in any capacity by a
12-5 utility company regulated under this Act, its parent, or its
12-6 subsidiary companies, corporations, or cooperatives or a utility
12-7 competitor, utility supplier, or other entity affected in a manner
12-8 other than by the setting of rates for that class of customer[; but
12-9 such person may otherwise engage in the private practice of law
12-10 after the termination of employment as counsellor].
12-11 SECTION 9. Subsection (a), Section 1.054, Public Utility
12-12 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
12-13 Statutes), is amended to read as follows:
12-14 (a) The Office of Public Utility Counsel:
12-15 (1) shall assess the impact of utility rate changes
12-16 and other regulatory actions on residential consumers in the State
12-17 of Texas and shall be an advocate in its own name of positions most
12-18 advantageous to a substantial number of such consumers as
12-19 determined by the counsellor;
12-20 (2) may appear or intervene as a matter of right as a
12-21 party or otherwise on behalf of residential consumers, as a class,
12-22 in all proceedings before the commission, including a proceeding
12-23 involving an alternative dispute resolution procedure;
12-24 (3) may appear or intervene as a matter of right as a
12-25 party or otherwise on behalf of small commercial consumers, as a
13-1 class, in all proceedings where it is deemed by the counsellor that
13-2 small commercial consumers are in need of representation, including
13-3 a proceeding involving an alternative dispute resolution
13-4 procedure;
13-5 (4) may initiate or intervene as a matter of right or
13-6 otherwise appear in any judicial proceedings involving or arising
13-7 out of any action taken by an administrative agency in a proceeding
13-8 in which the counsellor was authorized to appear, including a
13-9 proceeding involving an alternative dispute resolution procedure;
13-10 (5) may have access as any party, other than staff, to
13-11 all records gathered by the commission under the authority of
13-12 Subsection (a) of Section 1.203 of this Act;
13-13 (6) may obtain discovery of any nonprivileged matter
13-14 which is relevant to the subject matter involved in any proceeding
13-15 or petition before the commission;
13-16 (7) may represent individual residential and small
13-17 commercial consumers with respect to their disputed complaints
13-18 concerning utility services unresolved before the commission; and
13-19 (8) may recommend legislation to the legislature which
13-20 in its judgment would positively affect the interests of
13-21 residential and small commercial consumers.
13-22 SECTION 10. Subtitle D, Title I, Public Utility Regulatory
13-23 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
13-24 amended by adding Sections 1.105 through 1.109 to read as follows:
13-25 Sec. 1.105. PROPOSED ORDERS. (a) The commission by rule
14-1 shall adopt procedures by which commission staff may issue a
14-2 proposed order to resolve all or part of a contested case before a
14-3 hearing.
14-4 (b) The rules must:
14-5 (1) prescribe the types of cases for which a proposed
14-6 order may be issued;
14-7 (2) prescribe any applicable deadlines for issuing the
14-8 order;
14-9 (3) ensure that each party:
14-10 (A) retains the right to:
14-11 (i) a full hearing as provided under
14-12 Sections 1.005 and 1.101 of this Act on issues that remain in
14-13 dispute; and
14-14 (ii) judicial review of issues that remain
14-15 in dispute under Section 1.301 of this Act;
14-16 (B) receives a copy of the proposed order; and
14-17 (C) has at least 30 days after receiving the
14-18 proposed order to object to the adoption of all or part of the
14-19 order; and
14-20 (4) ensure that the commission's action in considering
14-21 the proposed order is limited to the portions of the proposed order
14-22 recommended by the parties for approval.
14-23 (c) A proposed order or a part of a proposed order to which
14-24 a party does not object becomes final with commission approval.
14-25 Sec. 1.106. STAFF REPORTS. (a) The commission by rule
15-1 shall adopt procedures by which commission staff may prepare staff
15-2 reports detailing the information and evidence the staff would have
15-3 presented in a contested case hearing to protect and represent the
15-4 public interest and to effect the objectives and purposes stated in
15-5 this Act.
15-6 (b) The rules must:
15-7 (1) prescribe the types of cases for which staff
15-8 reports may be submitted instead of staff testimony;
15-9 (2) prescribe any applicable deadlines for filing the
15-10 staff reports with the commission;
15-11 (3) ensure that each party:
15-12 (A) retains the right to:
15-13 (i) a full hearing as provided under
15-14 Sections 1.005 and 1.101 of this Act on each provision in the staff
15-15 report to which the party objects; and
15-16 (ii) judicial review of those provisions
15-17 under Section 1.301 of this Act;
15-18 (B) receives a copy of a staff report; and
15-19 (C) has at least 30 days after receiving a staff
15-20 report to respond to the report or to object to the adoption of all
15-21 or part of the report;
15-22 (4) ensure that the commission may not act on a staff
15-23 report before the 45th day after the date it is filed with the
15-24 commission;
15-25 (5) authorize the commission or an administrative law
16-1 judge to prescribe deadlines for action on a staff report in a
16-2 particular case; and
16-3 (6) ensure that the commission's action in considering
16-4 the proposed report is limited to the portions of the report
16-5 recommended by the parties for approval.
16-6 (c) Notwithstanding any other provision of this Act, the
16-7 commission staff is not required to respond to a request for
16-8 discovery or for information from a party to a contested case while
16-9 the staff is preparing a staff report relating to that case.
16-10 Sec. 1.107. ALTERNATIVE DISPUTE RESOLUTION. (a) The
16-11 commission by rule shall adopt procedures by which the commission
16-12 may use an alternative dispute resolution procedure to resolve a
16-13 pending issue or proceeding.
16-14 (b) The rules must:
16-15 (1) provide that the commission may consider using an
16-16 alternative dispute resolution procedure on its own motion or at
16-17 the request of a party or an administrative law judge;
16-18 (2) require notice to each party that the commission
16-19 is considering the use of an alternative dispute resolution
16-20 procedure;
16-21 (3) provide that a party that objects to the use of
16-22 the procedure must file a written objection with the commission not
16-23 later than the 10th day after the date the party receives notice
16-24 under Subdivision (2) of this subsection;
16-25 (4) prescribe any applicable deadlines for completion
17-1 of various alternative dispute resolution procedures, provided that
17-2 in no event may the time required to complete the entire
17-3 alternative dispute resolution process exceed 30 days;
17-4 (5) not affect the right of a utility to put into
17-5 effect a changed rate on filing with the commission a bond as
17-6 provided for in Section 2.212 of this Act; and
17-7 (6) ensure that any contested case issues not resolved
17-8 using an alternative dispute resolution procedure are resolved by
17-9 the commission in a contested case proceeding.
17-10 (c) The commission may use an alternative dispute resolution
17-11 procedure if the commission does not receive a timely objection or
17-12 if the commission determines that an objection does not have a
17-13 reasonable basis.
17-14 (d) A residential or small commercial consumer who brings a
17-15 complaint or other action before the commission in which the value
17-16 does not exceed $10,000 may choose whether to use a contested case
17-17 proceeding or an alternative dispute resolution proceeding to
17-18 resolve the complaint or action.
17-19 (e) A deadline for a commission decision prescribed by
17-20 another provision of this Act, including Sections 2.2011, 2.211,
17-21 2.212, 3.211, 3.212, 3.2135, 3.2531, and 3.2532, is suspended
17-22 during the pendency of an alternative dispute resolution procedure.
17-23 Sec. 1.108. JURISDICTION TO ESTABLISH SERVICE QUALITY AND
17-24 RELIABILITY AND CUSTOMER SERVICE AND PROTECTION. The commission
17-25 has jurisdiction over a person required to register under Title II
18-1 of this Act, except qualifying facilities, or to obtain a
18-2 certificate under Title III of this Act to the extent necessary to
18-3 establish and ensure service quality and reliability and customer
18-4 service and protection.
18-5 Sec. 1.109. CONSUMER EDUCATION. The commission may educate
18-6 and provide information to:
18-7 (1) consumers to assist them in making an informed
18-8 decision regarding electric and telecommunications services; and
18-9 (2) providers of electric and telecommunications
18-10 services relating to the providers' responsibilities under state
18-11 laws and regulations.
18-12 SECTION 11. Subsection (e), Section 1.3215, Public Utility
18-13 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
18-14 Statutes), is amended to read as follows:
18-15 (e) Within 14 days after the date the report is issued, the
18-16 executive director shall give written notice of the report to the
18-17 person. The notice may be given by certified mail. The notice
18-18 must include a brief summary of the alleged violation and a
18-19 statement of the amount of the recommended penalty and must inform
18-20 the person that the person has a right to a hearing on the
18-21 occurrence of the violation, the amount of the penalty, or both the
18-22 occurrence of the violation and the amount of the penalty. [Before
18-23 any penalty may be assessed under this section, the person against
18-24 whom the penalty may be assessed shall be given 30 days after
18-25 receiving from the executive director the notice of the report
19-1 summarizing the alleged violation pursuant to this subsection in
19-2 which to cure the violation and the person must fail to cure the
19-3 alleged violation within the 30-day period. The person against
19-4 whom the penalty may be assessed who claims to have cured the
19-5 alleged violation shall have the burden of proving to the
19-6 commission that the alleged violation was cured and was accidental
19-7 or inadvertent.]
19-8 SECTION 12. Section 1.323, Public Utility Regulatory Act of
19-9 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
19-10 to read as follows:
19-11 Sec. 1.323. PENALTY FOR VIOLATING SECTION 1.0235 OR 1.0241
19-12 [1.024] OF THIS ACT. (a) Any member of the commission or any
19-13 officer or director of a public utility or affiliated interest
19-14 shall be subject to a civil penalty of $1,000 for each and every
19-15 knowing violation of Section 1.0235 or 1.0241 [1.024] of this Act,
19-16 such penalty to be recovered in a suit filed in a court of
19-17 competent jurisdiction by the attorney general on his own
19-18 initiative or at the request of, in the name of, and on behalf of
19-19 the commission.
19-20 (b) Any person, other than an officer or director of a
19-21 public utility or affiliated interest or a member of the
19-22 commission, shall be subject to a civil penalty of $500 for each
19-23 and every knowing violation of Section 1.0235 or 1.0241 [1.024] of
19-24 this Act, such penalty to be recovered in a suit filed in a court
19-25 of competent jurisdiction by the attorney general on his own
20-1 initiative or at the request of, in the name of, and on behalf of
20-2 the commission.
20-3 (c) Any member, officer, or employee of the commission found
20-4 in any action by a preponderance of the evidence to have violated
20-5 any provision of Section 1.0235 or 1.0241 [1.024] of this Act shall
20-6 be removed from his office or employment.
20-7 SECTION 13. Section 1.401, Public Utility Regulatory Act of
20-8 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
20-9 by adding Subsection (d) to read as follows:
20-10 (d) Not later than January 15 of each odd-numbered year, the
20-11 commission shall submit to the legislature a report on complaints
20-12 received from consumers during the previous two years. The report
20-13 must include:
20-14 (1) information on the number of complaints that were
20-15 not resolved;
20-16 (2) the reasons the complaints were not resolved; and
20-17 (3) recommendations to correct consumer problems that
20-18 the commission does not have the authority to address.
20-19 SECTION 14. Section 2.003, Public Utility Regulatory Act of
20-20 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
20-21 to read as follows:
20-22 Sec. 2.003. SCOPE OF COMPETITION. Before January 15 of each
20-23 odd-numbered year, the commission shall report to the legislature
20-24 on the scope of competition in electric markets and the impact of
20-25 competition and industry restructuring on customers in both
21-1 competitive and noncompetitive markets. The report shall include:
21-2 (1) an assessment of the impact of competition on the
21-3 rates and availability of electric services for residential and
21-4 small commercial customers;
21-5 (2) [and] a summary of commission actions over the
21-6 preceding two years that reflect changes in the scope of
21-7 competition in regulated electric markets;
21-8 (3) [. The report shall also include] recommendations
21-9 to the legislature for further legislation that the commission
21-10 finds appropriate to promote the public interest in the context of
21-11 a partially competitive electric market; and
21-12 (4) a report on complaints received from consumers
21-13 relating to electric service or electric utilities during the
21-14 previous two years that includes:
21-15 (A) information on the number of complaints that
21-16 were not resolved;
21-17 (B) the reasons the complaints were not
21-18 resolved; and
21-19 (C) recommendations to correct consumer problems
21-20 that the commission does not have the authority to address.
21-21 SECTION 15. Subsection (b), Section 2.053, Public Utility
21-22 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
21-23 Statutes), is amended to read as follows:
21-24 (b) The commission has the following jurisdiction over
21-25 exempt wholesale generators and power marketers that sell electric
22-1 energy in this state:
22-2 (1) to require registration as provided by Subsection
22-3 (c) of this section as a condition of doing business in this state;
22-4 [and]
22-5 (2) to revoke a registration for repeated violations
22-6 of this Act or commission rules; and
22-7 (3) to require the filing of reports the commission
22-8 prescribes by rule.
22-9 SECTION 16. Subsection (b), Section 2.056, Public Utility
22-10 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
22-11 Statutes), is amended to read as follows:
22-12 (b) The commission, with the advice and consent of the
22-13 governor, shall appoint a five-person interstate connection
22-14 committee to investigate the most economical, reliable, and
22-15 efficient means to synchronously interconnect the alternating
22-16 current electric facilities of the electric facilities of electric
22-17 utilities within the Electric Reliability Council of Texas
22-18 reliability area to the alternating current electric facilities of
22-19 the electric facilities of electric utilities within the Southwest
22-20 Power Pool reliability area. The committee shall report an
22-21 estimate of the cost and benefit to effect the interconnection, an
22-22 estimate of the time to construct the interconnecting facilities,
22-23 and the service territory of the utilities in which those
22-24 facilities will be located. The committee shall submit its report
22-25 to the legislature by May 1, 1998 [September 1, 1997], at which
23-1 time the committee shall be dissolved.
23-2 SECTION 17. Subsection (b), Section 2.057, Public Utility
23-3 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
23-4 Statutes), is amended to read as follows:
23-5 (b) The commission shall adopt rules relating to the
23-6 registration and reporting requirements of qualifying facilities,
23-7 exempt wholesale generators, and power marketers. The rules must
23-8 require that each qualifying facility, exempt wholesale generator,
23-9 and power marketer register with the commission as a condition of
23-10 doing business in this state. The commission may revoke a
23-11 registration for repeated violations of this Act or commission
23-12 rules.
23-13 SECTION 18. Subsection (c), Section 3.051, Public Utility
23-14 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
23-15 Statutes), is amended to read as follows:
23-16 (c) Except as provided by Subsections (l), (m), and (s) of
23-17 this section and Section 3.052 of this Act, the commission shall
23-18 only have the following jurisdiction over all telecommunications
23-19 utilities who are not dominant carriers:
23-20 (1) to require registration as provided in Subsection
23-21 (d) of this section as a condition of doing business in this state;
23-22 (2) to conduct such investigations as are necessary to
23-23 determine the existence, impact, and scope of competition in the
23-24 telecommunications industry, including identifying dominant
23-25 carriers in the local telecommunications and intralata
24-1 interexchange telecommunications industry and defining the
24-2 telecommunications market or markets, and in connection therewith
24-3 may call and hold hearings, issue subpoenas to compel the
24-4 attendance of witnesses and the production of papers and documents,
24-5 and make findings of fact and decisions with respect to
24-6 administering the provisions of this Act or the rules, orders, and
24-7 other actions of the commission;
24-8 (3) to require the filing of such reports as the
24-9 commission may direct from time to time;
24-10 (4) to require the maintenance of statewide average
24-11 rates or prices of telecommunications service;
24-12 (5) to require that every local exchange area have
24-13 access to local and interexchange telecommunications service,
24-14 except that a telecommunications utility must be allowed to
24-15 discontinue service to a local exchange area if comparable service
24-16 is available in the area and the discontinuance is not contrary to
24-17 the public interest; this section does not authorize the commission
24-18 to require a telecommunications utility that has not provided
24-19 services to a local exchange area during the previous 12 months and
24-20 that has never provided services to that same local exchange area
24-21 for a cumulative period of one year at any time in the past to
24-22 initiate services to that local exchange area; [and]
24-23 (6) to require the quality of telecommunications
24-24 service provided in each exchange to be adequate to protect the
24-25 public interest and the interests of customers of that exchange if
25-1 the commission determines that service to a local exchange has
25-2 deteriorated to the point that service is not reliable; and
25-3 (7) to revoke a registration for repeated violations
25-4 of this Act or commission rules.
25-5 SECTION 19. Subdivision (1), Subsection (s), Section 3.051,
25-6 Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
25-7 Texas Civil Statutes), is amended to read as follows:
25-8 (1) Except as otherwise specifically provided by this
25-9 Act, the commission shall have only the following authority over a
25-10 holder of a certificate of operating authority or service provider
25-11 certificate of operating authority:
25-12 (A) to enforce the applicable provisions of this
25-13 Act as provided by Subtitle I, Title I, of this Act;
25-14 (B) to assert jurisdiction over a specific
25-15 service in accordance with Section 3.2572 of this Act;
25-16 (C) to require co-carriage reciprocity; [and]
25-17 (D) to regulate condemnation and building
25-18 access;
25-19 (E) to establish and ensure service quality and
25-20 reliability and customer service and protection; and
25-21 (F) to revoke a certificate under Section 3.263
25-22 of this Act.
25-23 SECTION 20. Subsection (g), Section 3.2625, Public Utility
25-24 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
25-25 Statutes), is amended to read as follows:
26-1 (g) The commission may order disconnection of service or
26-2 revocation of registration [for up to one year] for repeat
26-3 violations of this Act or commission rules.
26-4 SECTION 21. Subsection (a), Section 3.263, Public Utility
26-5 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
26-6 Statutes), is amended to read as follows:
26-7 (a) The commission at any time after notice and hearing may
26-8 revoke or amend any certificate of convenience and necessity,
26-9 certificate of operating authority, or service provider certificate
26-10 of operating authority if it finds that the certificate holder has
26-11 never provided or is no longer providing service in the area or
26-12 part of the area covered by the certificate. The commission may
26-13 also revoke a certificate of convenience and necessity,
26-14 certificate of operating authority, or service provider certificate
26-15 of operating authority for repeated violations of this Act or
26-16 commission rules.
26-17 SECTION 22. (a) The Public Utility Commission of Texas and
26-18 the comptroller of public accounts shall conduct a joint study of
26-19 the structure of the gross receipts tax imposed under Section
26-20 1.351, Public Utility Regulatory Act of 1995 (Article 1446c-0,
26-21 Vernon's Texas Civil Statutes). The study must include an
26-22 examination of the potential effect of deregulation on the revenue
26-23 generated by the tax during the next 10 years.
26-24 (b) The Public Utility Commission of Texas and the
26-25 comptroller of public accounts shall prepare a joint report
27-1 detailing their findings. The report must include recommendations
27-2 on any problems or issues the commission and the comptroller
27-3 determine should be addressed by legislation or agency action.
27-4 (c) Not later than January 15, 1999, the Public Utility
27-5 Commission of Texas and the comptroller of public accounts shall
27-6 submit the report required by Subsection (b) of this section to the
27-7 76th Legislature.
27-8 SECTION 23. Sections 1.024 and 1.025, Public Utility
27-9 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
27-10 Statutes), are repealed.
27-11 SECTION 24. This Act takes effect September 1, 1997, except
27-12 that Section 16 of this Act takes effect on the first date on which
27-13 it may take effect under Section 39, Article III, Texas
27-14 Constitution.
27-15 SECTION 25. The importance of this legislation and the
27-16 crowded condition of the calendars in both houses create an
27-17 emergency and an imperative public necessity that the
27-18 constitutional rule requiring bills to be read on three several
27-19 days in each house be suspended, and this rule is hereby suspended,
27-20 and that this Act take effect and be in force according to its
27-21 terms, and it is so enacted.