By Armbrister S.B. No. 965
Substitute the following for S.B. No. 965:
By Wolens C.S.S.B. No. 965
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of the Public Utility Commission
1-3 of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.002, Public Utility Regulatory Act of
1-6 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
1-7 to read as follows:
1-8 Sec. 1.002. LEGISLATIVE POLICY AND PURPOSE. (a) This Act
1-9 is enacted to protect the public interest inherent in the rates and
1-10 services of public utilities. The legislature finds that
1-11 traditionally public utilities are by definition monopolies in the
1-12 areas they serve; that therefore the normal forces of competition
1-13 which operate to regulate prices in a free enterprise society do
1-14 not operate; and that therefore utility rates, operations, and
1-15 services are regulated by public agencies with the objective that
1-16 this regulation shall operate as a substitute for competition. The
1-17 purpose of this Act is to establish a comprehensive regulatory
1-18 system which is adequate to the task of regulating public utilities
1-19 as defined by this Act, to assure rates, operations, and services
1-20 which are just and reasonable to the consumers and to the
1-21 utilities.
1-22 (b) The commission shall ensure adequate customer service
1-23 and protection, promote public awareness of changes in the electric
1-24 and telecommunications markets, provide customers with information
2-1 necessary to make informed choices about available options, and
2-2 ensure that customers have an adequate understanding of their
2-3 rights.
2-4 SECTION 2. Section 1.003, Public Utility Regulatory Act of
2-5 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
2-6 by amending Subdivision (14) and adding Subdivision (19) to read as
2-7 follows:
2-8 (14) "Rate" means and includes every compensation,
2-9 tariff, charge, fare, toll, rental, and classification, or any of
2-10 them demanded, observed, charged, or collected whether directly or
2-11 indirectly by any public utility for any service, product, or
2-12 commodity described in the definition of "utility" in Section
2-13 2.0011 [2.001] or 3.002 of this Act and any rules, regulations,
2-14 practices, or contracts affecting any such compensation, tariff,
2-15 charge, fare, toll, rental, or classification.
2-16 (19) "Alternative dispute resolution" includes:
2-17 (A) a procedure described by Chapter 154, Civil
2-18 Practice and Remedies Code; and
2-19 (B) a combination of the procedures described by
2-20 Chapter 154, Civil Practice and Remedies Code.
2-21 SECTION 3. Section 1.004, Public Utility Regulatory Act of
2-22 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
2-23 to read as follows:
2-24 Sec. 1.004. DEFINITIONS IN TITLE. In this title:
2-25 (1) "Affected entity" means a business entity,
2-26 including an affiliate, that furnishes goods or services to rate
2-27 regulated entities, affiliates, or direct competitors if the value
3-1 of the goods or services is equal to at least the greater of
3-2 $10,000 or 10 percent of the affiliate's or entity's business. The
3-3 term includes the affiliate's or entity's agent, representative,
3-4 attorney, employee, officer, owner, director, or partner.
3-5 (2) "Direct competitor" means an entity that provides
3-6 services that are the same as, equivalent to, or substitutable for
3-7 services provided by a rate regulated entity within a geographic
3-8 market or submarket in this state at rates, terms, and conditions
3-9 that are comparable to those offered by the rate regulated entity.
3-10 (3) "Participated" means to have taken an action as a
3-11 commission officer or employee or employee of the State Office of
3-12 Administrative Hearings by approving, disapproving, or recommending
3-13 a decision, by giving advice, or by taking similar action.
3-14 (4) "Particular matter" means a specific
3-15 investigation, application, request for a ruling or determination,
3-16 rulemaking proceeding, contract, claim, charge, accusation, arrest,
3-17 or judicial or other proceeding.
3-18 (5) "Pecuniary interest" includes income,
3-19 compensation, and payment of any kind, in addition to an ownership
3-20 interest, as an officer, director, partner, owner, employee,
3-21 attorney, consultant, or otherwise.
3-22 (6) "Public[, "public] utility" or "utility" has the
3-23 meaning assigned by Section 2.0011 [2.001] or 3.002 of this Act.
3-24 (7) "Rate regulated entity" means:
3-25 (A) a public utility as defined by Section
3-26 2.0011 of this Act; or
3-27 (B) a dominant carrier as defined by Section
4-1 3.002 of this Act.
4-2 SECTION 4. Sections 1.023(d), (e), and (f), Public Utility
4-3 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
4-4 Statutes), are amended to read as follows:
4-5 (d) A person who is required to register as a lobbyist under
4-6 Chapter 305, Government Code, because of the person's activities
4-7 for compensation on behalf of a profession related to the operation
4-8 of the commission may not serve as a member of the commission,
4-9 serve as the [or] public utility counsel, or be an employee of [act
4-10 as the general counsel to] the commission.
4-11 (e) A person is not eligible for appointment as a public
4-12 member of the commission or for employment as the [general counsel
4-13 or] executive director of the commission if:
4-14 (1) the person serves on the board of directors of a
4-15 company that supplies fuel, utility-related services, or
4-16 utility-related products to regulated or unregulated electric or
4-17 telecommunications utilities; or
4-18 (2) the person or the person's spouse:
4-19 (A) is employed by or participates in the
4-20 management of a business entity or other organization regulated by
4-21 the commission or receiving funds from the commission;
4-22 (B) owns or controls, directly or indirectly,
4-23 more than a 10 percent interest or a pecuniary interest with a
4-24 value exceeding $10,000 in:
4-25 (i) a business entity or other
4-26 organization regulated by the commission or receiving funds from
4-27 the commission; or
5-1 (ii) any utility competitor, utility
5-2 supplier, or other entity affected by a commission decision in a
5-3 manner other than by the setting of rates for that class of
5-4 customer;
5-5 (C) uses or receives a substantial amount of
5-6 tangible goods, services, or funds from the commission, other than
5-7 compensation or reimbursement authorized by law for commission
5-8 membership, attendance, or expenses; or
5-9 (D) notwithstanding Paragraph (B) of this
5-10 subdivision, has an interest in a mutual fund or retirement fund in
5-11 which more than 10 percent of the fund's holdings at the time of
5-12 appointment is in a single utility, utility competitor, or utility
5-13 supplier in this state and the person does not disclose this
5-14 information to the governor, senate, commission, or other entity,
5-15 as appropriate.
5-16 (f) Notwithstanding any other provision of this Act, a
5-17 person otherwise ineligible because of the application of
5-18 Subsection (e)(2)(B) of this section may be appointed to the
5-19 commission and serve as a commissioner or may be employed as the
5-20 [general counsel or] executive director if the person:
5-21 (1) notifies the attorney general and commission that
5-22 the person is ineligible because of the application of Subsection
5-23 (e)(2)(B) of this section; and
5-24 (2) divests the person or the person's spouse of the
5-25 ownership or control before beginning service or employment, or
5-26 within a reasonable time if the person is already serving or
5-27 employed at the time Subsection (e)(2)(B) of this section first
6-1 applies to the person.
6-2 SECTION 5. Subtitle B, Title I, Public Utility Regulatory
6-3 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
6-4 amended by adding Sections 1.0235, 1.0241, and 1.0245 to read as
6-5 follows:
6-6 Sec. 1.0235. PROHIBITION ON SEEKING ANOTHER OFFICE. A
6-7 person may not seek nomination or election to another civil office
6-8 of this state or of the United States while serving as a
6-9 commissioner. If a commissioner files for nomination or election
6-10 to another civil office of this state or of the United States, the
6-11 person's office as commissioner immediately becomes vacant, and the
6-12 governor shall appoint a successor.
6-13 Sec. 1.0241. PROHIBITED ACTIVITIES. (a) During the period
6-14 of service with the commission or the State Office of
6-15 Administrative Hearings, a commissioner, commission employee, or
6-16 employee of the State Office of Administrative Hearings involved in
6-17 hearing utility cases may not:
6-18 (1) have a pecuniary interest in a rate regulated
6-19 entity, direct competitor, or affected entity;
6-20 (2) directly or indirectly own or control securities
6-21 in a rate regulated entity, direct competitor, or affected entity;
6-22 (3) accept a gift, gratuity, or entertainment from a
6-23 rate regulated entity, direct competitor, or affected entity; or
6-24 (4) directly or indirectly solicit, request from, or
6-25 suggest or recommend to a rate regulated entity, direct competitor,
6-26 or affected entity the appointment to a position or the employment
6-27 of a person, including an appointment or employment that would
7-1 violate Chapter 572, Government Code.
7-2 (b) A rate regulated entity, direct competitor, or affected
7-3 entity may not give or offer to give a gift, gratuity, employment,
7-4 or entertainment to a commissioner or a commission employee.
7-5 (c) It is not a violation of this section if a commissioner,
7-6 commission employee, or employee of the State Office of
7-7 Administrative Hearings, on becoming the owner of stocks, bonds, or
7-8 another pecuniary interest in a rate regulated entity, direct
7-9 competitor, or affected entity otherwise than voluntarily, informs
7-10 the commission or office, as appropriate, and the attorney general
7-11 of the ownership and divests the ownership or interest within a
7-12 reasonable time.
7-13 (d) It is not a violation of this section if a pecuniary
7-14 interest is held indirectly by ownership of an interest in a
7-15 retirement system, institution, or fund that in the normal course
7-16 of business invests in diverse securities independently of the
7-17 control of the commissioner, commission employee, or employee of
7-18 the State Office of Administrative Hearings.
7-19 (e) This section does not apply to a contract for a product
7-20 or service of a rate regulated entity, direct competitor, or
7-21 affected entity, or for equipment for use of such a product or
7-22 service, when a commissioner, commission employee, or employee of
7-23 the State Office of Administrative Hearings is acting as a
7-24 consumer.
7-25 Sec. 1.0245. QUALIFICATIONS AND STANDARDS OF CONDUCT
7-26 INFORMATION. The executive director or the executive director's
7-27 designee shall provide to commissioners and commission employees as
8-1 often as necessary information regarding their:
8-2 (1) qualifications for office or employment under this
8-3 Act; and
8-4 (2) responsibilities under applicable laws relating to
8-5 standards of conduct for state officers and employees.
8-6 SECTION 6. Sections 1.025(a) and (b), Public Utility
8-7 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
8-8 Statutes), are amended to read as follows:
8-9 (a) A commissioner may not within two years, and an employee
8-10 of the commission or an employee of the State Office of
8-11 Administrative Hearings involved in hearing utility cases may not,
8-12 within one year after his employment with the commission or the
8-13 State Office of Administrative Hearings has ceased, be employed by
8-14 a rate regulated entity [public utility] which was in the scope of
8-15 the commissioner's or employee's official responsibility while the
8-16 commissioner or employee was associated with the commission or the
8-17 State Office of Administrative Hearings.
8-18 (b) During the time a commissioner or employee of the
8-19 commission or an employee of the State Office of Administrative
8-20 Hearings involved in hearing utility cases is associated with the
8-21 commission or State Office of Administrative Hearings or at any
8-22 time after, the commissioner or employee may not represent a
8-23 person, corporation, or other business entity before the commission
8-24 or State Office of Administrative Hearings or a court in a
8-25 particular matter in which the commissioner or employee
8-26 participated [was personally involved] while associated with the
8-27 commission or State Office of Administrative Hearings or a
9-1 particular matter that was within the commissioner's or employee's
9-2 official responsibility while the commissioner or employee was
9-3 associated with the commission or State Office of Administrative
9-4 Hearings.
9-5 SECTION 7. Section 1.026(a), Public Utility Regulatory Act
9-6 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
9-7 amended to read as follows:
9-8 (a) It is a ground for removal from the commission if a
9-9 member:
9-10 (1) does not have at the time of appointment the
9-11 qualifications required by Section 1.023 of this Act;
9-12 (2) does not maintain during service on the commission
9-13 the qualifications required by Section 1.023 of this Act;
9-14 (3) violates a prohibition established by Section
9-15 1.023, 1.0235, 1.0241 [1.024], or 1.025 of this Act;
9-16 (4) cannot discharge the member's duties for a
9-17 substantial part of the term for which the member is appointed
9-18 because of illness or disability; or
9-19 (5) is absent from more than half of the regularly
9-20 scheduled commission meetings that the member is eligible to attend
9-21 during a calendar year unless the absence is excused by majority
9-22 vote of the commission.
9-23 SECTION 8. Sections 1.028(a), (c), and (d), Public Utility
9-24 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
9-25 Statutes), are amended to read as follows:
9-26 (a) The commission shall employ an executive director[, a
9-27 general counsel,] and such officers and other employees as it deems
10-1 necessary to carry out the provisions of this Act. All employees
10-2 receive such compensation as is fixed by the legislature. The
10-3 commission shall develop and implement policies that clearly define
10-4 the respective responsibilities of the commission and the staff of
10-5 the commission.
10-6 (c) The commission [general counsel and his] staff is [are]
10-7 responsible for the gathering of information relating to all
10-8 matters within the authority of the commission.
10-9 (d) The duties of the commission staff [general counsel]
10-10 include:
10-11 (1) accumulation of evidence and other information
10-12 from public utilities and from the accounting and technical and
10-13 other staffs of the commission and from other sources for the
10-14 purposes specified herein;
10-15 (2) preparation and presentation of such evidence
10-16 before the commission or its appointed examiner in proceedings;
10-17 (3) conduct of investigations of public utilities
10-18 under the jurisdiction of the commission;
10-19 (4) preparation of proposed changes in the rules of
10-20 the commission;
10-21 (5) preparation of recommendations that the commission
10-22 undertake investigation of any matter within its authority;
10-23 (6) preparation of recommendations and a report of
10-24 such staff for inclusion in the annual report of the commission;
10-25 (7) protection and representation of the public
10-26 interest and coordination and direction of the preparation and
10-27 presentation of evidence from the commission staff in all cases
11-1 before the commission as necessary to effect the objectives and
11-2 purposes stated in this Act and ensure protection of the public
11-3 interest; [and]
11-4 (8) preparation of proposed orders under Section 1.105
11-5 of this Act;
11-6 (9) preparation of staff reports under Section 1.106
11-7 of this Act; and
11-8 (10) such other activities as are reasonably necessary
11-9 to enable the staff [him] to perform the staff's [his] duties.
11-10 SECTION 9. Section 1.0512, Public Utility Regulatory Act of
11-11 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
11-12 to read as follows:
11-13 Sec. 1.0512. PROHIBITION OF EMPLOYMENT OR REPRESENTATION.
11-14 (a) The counsellor or [may not within two years, and] an employee
11-15 of the office may not within one year after his employment with the
11-16 office has ceased[,] be employed by a rate regulated entity [public
11-17 utility] which was in the scope of the counsellor's or employee's
11-18 official responsibility while the counsellor or employee was
11-19 associated with the office.
11-20 (b) During the time the counsellor or an employee of the
11-21 office is associated with the office or at any time after, the
11-22 counsellor or employee may not represent a person, corporation, or
11-23 other business entity before the commission, the State Office of
11-24 Administrative Hearings, or a court in a particular matter in which
11-25 the counsellor or employee participated [was personally involved]
11-26 while associated with the office or a particular matter that was
11-27 within the counsellor's or employee's official responsibility while
12-1 the counsellor or employee was associated with the office.
12-2 SECTION 10. Section 1.054(a), Public Utility Regulatory Act
12-3 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
12-4 amended to read as follows:
12-5 (a) The Office of Public Utility Counsel:
12-6 (1) shall assess the impact of utility rate changes
12-7 and other regulatory actions on residential consumers in the State
12-8 of Texas and shall be an advocate in its own name of positions most
12-9 advantageous to a substantial number of such consumers as
12-10 determined by the counsellor;
12-11 (2) may appear or intervene as a matter of right as a
12-12 party or otherwise on behalf of residential consumers, as a class,
12-13 in all proceedings before the commission, including a proceeding
12-14 involving an alternative dispute resolution procedure;
12-15 (3) may appear or intervene as a matter of right as a
12-16 party or otherwise on behalf of small commercial consumers, as a
12-17 class, in all proceedings where it is deemed by the counsellor that
12-18 small commercial consumers are in need of representation, including
12-19 a proceeding involving an alternative dispute resolution
12-20 procedure;
12-21 (4) may initiate or intervene as a matter of right or
12-22 otherwise appear in any judicial proceedings involving or arising
12-23 out of any action taken by an administrative agency in a proceeding
12-24 in which the counsellor was authorized to appear, including a
12-25 proceeding involving an alternative dispute resolution procedure;
12-26 (5) may have access as any party, other than staff, to
12-27 all records gathered by the commission under the authority of
13-1 Subsection (a) of Section 1.203 of this Act;
13-2 (6) may obtain discovery of any nonprivileged matter
13-3 which is relevant to the subject matter involved in any proceeding
13-4 or petition before the commission;
13-5 (7) may represent individual residential and small
13-6 commercial consumers with respect to their disputed complaints
13-7 concerning utility services unresolved before the commission; and
13-8 (8) may recommend legislation to the legislature which
13-9 in its judgment would positively affect the interests of
13-10 residential and small commercial consumers.
13-11 SECTION 11. Subtitle D, Title I, Public Utility Regulatory
13-12 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
13-13 amended by adding Sections 1.105 through 1.109 to read as follows:
13-14 Sec. 1.105. PROPOSED ORDERS. (a) The commission by rule
13-15 shall adopt procedures by which commission staff may issue a
13-16 proposed order to resolve all or part of a contested case before a
13-17 hearing.
13-18 (b) The rules must:
13-19 (1) prescribe the types of cases for which a proposed
13-20 order may be issued;
13-21 (2) prescribe any applicable deadlines for issuing the
13-22 order;
13-23 (3) ensure that each party:
13-24 (A) retains the right to:
13-25 (i) a full hearing as provided under
13-26 Sections 1.005 and 1.101 of this Act on issues that remain in
13-27 dispute; and
14-1 (ii) judicial review of issues that remain
14-2 in dispute under Section 1.301 of this Act;
14-3 (B) receives a copy of the proposed order; and
14-4 (C) has at least 30 days after receiving the
14-5 proposed order to object to the adoption of all or part of the
14-6 order; and
14-7 (4) ensure that the commission's action in considering
14-8 the proposed order is limited to the portions of the proposed order
14-9 recommended by the parties for approval.
14-10 (c) A proposed order or a part of a proposed order to which
14-11 a party does not object becomes final with commission approval.
14-12 Sec. 1.106. STAFF REPORTS. (a) The commission by rule
14-13 shall adopt procedures by which commission staff may prepare staff
14-14 reports detailing the information and evidence the staff would have
14-15 presented in a contested case hearing to protect and represent the
14-16 public interest and to effect the objectives and purposes stated in
14-17 this Act.
14-18 (b) The rules must:
14-19 (1) prescribe the types of cases for which staff
14-20 reports may be submitted instead of staff testimony;
14-21 (2) prescribe any applicable deadlines for filing the
14-22 staff reports with the commission;
14-23 (3) ensure that each party:
14-24 (A) retains the right to:
14-25 (i) a full hearing as provided under
14-26 Sections 1.005 and 1.101 of this Act on each provision in the staff
14-27 report to which the party objects; and
15-1 (ii) judicial review of those provisions
15-2 under Section 1.301 of this Act;
15-3 (B) receives a copy of a staff report; and
15-4 (C) has at least 30 days after receiving a staff
15-5 report to respond to the report or to object to the adoption of all
15-6 or part of the report;
15-7 (4) ensure that the commission may not act on a staff
15-8 report before the 45th day after the date it is filed with the
15-9 commission;
15-10 (5) authorize the commission or an administrative law
15-11 judge to prescribe deadlines for action on a staff report in a
15-12 particular case; and
15-13 (6) ensure that the commission's action in considering
15-14 the proposed report is limited to the portions of the report
15-15 recommended by the parties for approval.
15-16 (c) Notwithstanding any other provision of this Act, the
15-17 commission staff is not required to respond to a request for
15-18 discovery or for information from a party to a contested case while
15-19 the staff is preparing a staff report relating to that case.
15-20 Sec. 1.107. ALTERNATIVE DISPUTE RESOLUTION. (a) The
15-21 commission by rule shall adopt procedures by which the commission
15-22 may use an alternative dispute resolution procedure to resolve a
15-23 pending issue or proceeding.
15-24 (b) The rules must:
15-25 (1) provide that the commission may consider using an
15-26 alternative dispute resolution procedure on its own motion or at
15-27 the request of a party or an administrative law judge;
16-1 (2) require notice to each party that the commission
16-2 is considering the use of an alternative dispute resolution
16-3 procedure;
16-4 (3) provide that a party that objects to the use of
16-5 the procedure must file a written objection with the commission not
16-6 later than the 10th day after the date the party receives notice
16-7 under Subdivision (2) of this subsection;
16-8 (4) prescribe any applicable deadlines for completion
16-9 of various alternative dispute resolution procedures, provided that
16-10 in no event may the time required to complete the entire
16-11 alternative dispute resolution process exceed 30 days;
16-12 (5) not affect the right of a utility to put into
16-13 effect a changed rate on filing with the commission a bond as
16-14 provided for in Section 2.212 of this Act; and
16-15 (6) ensure that any contested case issues not resolved
16-16 using an alternative dispute resolution procedure are resolved by
16-17 the commission in a contested case proceeding.
16-18 (c) The commission may use an alternative dispute resolution
16-19 procedure if the commission does not receive a timely objection or
16-20 if the commission determines that an objection does not have a
16-21 reasonable basis.
16-22 (d) A residential or small commercial consumer who brings a
16-23 complaint or other action before the commission in which the value
16-24 does not exceed $10,000 may choose whether to use a contested case
16-25 proceeding or an alternative dispute resolution proceeding to
16-26 resolve the complaint or action.
16-27 (e) A deadline for a commission decision prescribed by
17-1 another provision of this Act, including Sections 2.2011, 2.211,
17-2 2.212, 3.211, 3.212, 3.2135, 3.2531, and 3.2532, is suspended
17-3 during the pendency of an alternative dispute resolution procedure.
17-4 Sec. 1.108. JURISDICTION TO ESTABLISH SERVICE QUALITY AND
17-5 RELIABILITY AND CUSTOMER SERVICE AND PROTECTION. The commission
17-6 has jurisdiction over a person required to register under Title II
17-7 of this Act, except qualifying facilities, or to obtain a
17-8 certificate under Title III of this Act to the extent necessary to
17-9 establish and ensure service quality and reliability and customer
17-10 service and protection.
17-11 Sec. 1.109. CONSUMER EDUCATION. The commission may educate
17-12 and provide information to:
17-13 (1) consumers to assist them in making an informed
17-14 decision regarding electric and telecommunications services; and
17-15 (2) providers of electric and telecommunications
17-16 services relating to the providers' responsibilities under state
17-17 laws and regulations.
17-18 SECTION 12. Section 1.3215(e), Public Utility Regulatory Act
17-19 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
17-20 amended to read as follows:
17-21 (e) Within 14 days after the date the report is issued, the
17-22 executive director shall give written notice of the report to the
17-23 person. The notice may be given by certified mail. The notice
17-24 must include a brief summary of the alleged violation and a
17-25 statement of the amount of the recommended penalty and must inform
17-26 the person that the person has a right to a hearing on the
17-27 occurrence of the violation, the amount of the penalty, or both the
18-1 occurrence of the violation and the amount of the penalty. [Before
18-2 any penalty may be assessed under this section, the person against
18-3 whom the penalty may be assessed shall be given 30 days after
18-4 receiving from the executive director the notice of the report
18-5 summarizing the alleged violation pursuant to this subsection in
18-6 which to cure the violation and the person must fail to cure the
18-7 alleged violation within the 30-day period. The person against
18-8 whom the penalty may be assessed who claims to have cured the
18-9 alleged violation shall have the burden of proving to the
18-10 commission that the alleged violation was cured and was accidental
18-11 or inadvertent.]
18-12 SECTION 13. Section 1.323, Public Utility Regulatory Act of
18-13 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
18-14 to read as follows:
18-15 Sec. 1.323. PENALTY FOR VIOLATING SECTION 1.0235 OR 1.0241
18-16 [1.024] OF THIS ACT. (a) Any member of the commission or any
18-17 officer or director of a rate regulated entity, direct competitor,
18-18 or affected entity [public utility or affiliated interest] shall be
18-19 subject to a civil penalty of $1,000 for each and every knowing
18-20 violation of Section 1.0235 or 1.0241 [1.024] of this Act, such
18-21 penalty to be recovered in a suit filed in a court of competent
18-22 jurisdiction by the attorney general on his own initiative or at
18-23 the request of, in the name of, and on behalf of the commission.
18-24 (b) Any person, other than an officer or director of a rate
18-25 regulated entity, direct competitor, or affected entity [public
18-26 utility or affiliated interest] or a member of the commission,
18-27 shall be subject to a civil penalty of $500 for each and every
19-1 knowing violation of Section 1.0235 or 1.0241 [1.024] of this Act,
19-2 such penalty to be recovered in a suit filed in a court of
19-3 competent jurisdiction by the attorney general on his own
19-4 initiative or at the request of, in the name of, and on behalf of
19-5 the commission.
19-6 (c) Any member, officer, or employee of the commission found
19-7 in any action by a preponderance of the evidence to have violated
19-8 any provision of Section 1.0235 or 1.0241 [1.024] of this Act shall
19-9 be removed from his office or employment.
19-10 SECTION 14. Section 1.401, Public Utility Regulatory Act of
19-11 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
19-12 by adding Subsection (d) to read as follows:
19-13 (d) Not later than January 15 of each odd-numbered year, the
19-14 commission shall submit to the legislature a report on complaints
19-15 received from consumers during the previous two years. The report
19-16 must include:
19-17 (1) information on the number of complaints that were
19-18 not resolved;
19-19 (2) the reasons the complaints were not resolved; and
19-20 (3) recommendations to correct consumer problems that
19-21 the commission does not have the authority to address.
19-22 SECTION 15. Section 2.003, Public Utility Regulatory Act of
19-23 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
19-24 to read as follows:
19-25 Sec. 2.003. SCOPE OF COMPETITION. Before January 15 of each
19-26 odd-numbered year, the commission shall report to the legislature
19-27 on the scope of competition in electric markets and the impact of
20-1 competition and industry restructuring on customers in both
20-2 competitive and noncompetitive markets. The report shall include:
20-3 (1) an assessment of the impact of competition on the
20-4 rates and availability of electric services for residential and
20-5 small commercial customers;
20-6 (2) [and] a summary of commission actions over the
20-7 preceding two years that reflect changes in the scope of
20-8 competition in regulated electric markets;
20-9 (3) [. The report shall also include] recommendations
20-10 to the legislature for further legislation that the commission
20-11 finds appropriate to promote the public interest in the context of
20-12 a partially competitive electric market; and
20-13 (4) a report on complaints received from consumers
20-14 relating to electric service or electric utilities during the
20-15 previous two years that includes:
20-16 (A) information on the number of complaints that
20-17 were not resolved;
20-18 (B) the reasons the complaints were not
20-19 resolved; and
20-20 (C) recommendations to correct consumer problems
20-21 that the commission does not have the authority to address.
20-22 SECTION 16. Section 2.053(b), Public Utility Regulatory Act
20-23 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
20-24 amended to read as follows:
20-25 (b) The commission has the following jurisdiction over
20-26 exempt wholesale generators and power marketers that sell electric
20-27 energy in this state:
21-1 (1) to require registration as provided by Subsection
21-2 (c) of this section as a condition of doing business in this state;
21-3 [and]
21-4 (2) to revoke a registration for repeated violations
21-5 of this Act or commission rules; and
21-6 (3) to require the filing of reports the commission
21-7 prescribes by rule.
21-8 SECTION 17. Section 2.056(b), Public Utility Regulatory Act
21-9 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
21-10 amended to read as follows:
21-11 (b) The commission, with the advice and consent of the
21-12 governor, shall appoint a five-person interstate connection
21-13 committee to investigate the most economical, reliable, and
21-14 efficient means to synchronously interconnect the alternating
21-15 current electric facilities of the electric facilities of electric
21-16 utilities within the Electric Reliability Council of Texas
21-17 reliability area to the alternating current electric facilities of
21-18 the electric facilities of electric utilities within the Southwest
21-19 Power Pool reliability area. The committee shall report an
21-20 estimate of the cost and benefit to effect the interconnection, an
21-21 estimate of the time to construct the interconnecting facilities,
21-22 and the service territory of the utilities in which those
21-23 facilities will be located. The committee shall submit its report
21-24 to the legislature by May 1, 1998 [September 1, 1997], at which
21-25 time the committee shall be dissolved.
21-26 SECTION 18. Section 2.057(b), Public Utility Regulatory Act
21-27 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
22-1 amended to read as follows:
22-2 (b) The commission shall adopt rules relating to the
22-3 registration and reporting requirements of qualifying facilities,
22-4 exempt wholesale generators, and power marketers. The rules must
22-5 require that each qualifying facility, exempt wholesale generator,
22-6 and power marketer register with the commission as a condition of
22-7 doing business in this state. The commission may revoke a
22-8 registration for repeated violations of this Act or commission
22-9 rules.
22-10 SECTION 19. Subtitle B, Title II, Public Utility Regulatory
22-11 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
22-12 amended by adding Section 2.058 to read as follows:
22-13 Sec. 2.058. ELECTRIC SERVICE RELIABILITY MEASURES. (a) The
22-14 commission shall implement reliability standards relating to the
22-15 delivery of electricity to retail customers by electric utilities.
22-16 The commission shall develop by rule reliability standards based on
22-17 one or more of the following:
22-18 (1) system average interruption frequency index;
22-19 (2) average system availability index;
22-20 (3) achievement of annual average response time to
22-21 live answer for customer telephone calls to the utility; or
22-22 (4) other standards that the commission finds
22-23 reasonable and appropriate.
22-24 (b) The standards shall require each utility subject to this
22-25 section to maintain adequately trained and experienced personnel
22-26 throughout the utility's service area so that the utility is able
22-27 to fully and adequately comply with the appropriate service quality
23-1 and reliability standards.
23-2 (c) When an outage occurs due to the interruption of
23-3 electric service from the supplier, the utility is not required to
23-4 include that interruption in its measurement of service reliability
23-5 standards. The rules shall differentiate appropriate standards
23-6 according to average customer density per mile of distribution
23-7 line, prevailing weather conditions, tree growth rates, and other
23-8 unique circumstances that vary by geographic areas. The commission
23-9 shall also consider other factors that may affect the cost of
23-10 maintaining a given service quality standard. The standards shall
23-11 also ensure that utilities do not neglect any geographic area,
23-12 including communities of less than 1,000 persons and low-income
23-13 areas, with regard to system reliability.
23-14 (d) The commission may require each electric utility to
23-15 supply data on an annual basis to assist the commission in
23-16 developing the reliability standards.
23-17 (e) Annually, the commission shall compute for each electric
23-18 utility the score achieved with respect to each reliability
23-19 standard on a three-year, rolling average basis adjusted to remove
23-20 the effects of hurricanes, tornadoes, other natural events the
23-21 commission determines to be of similar magnitude, and reasonable
23-22 planned outages. If the commission determines that an applicable
23-23 score so computed is below the relevant standard by more than five
23-24 percent, the commission shall issue an order stating its findings.
23-25 Not later than the 90th day after the date of that order, the
23-26 utility shall file one of the following:
23-27 (1) information showing that there is no need for
24-1 corrective action;
24-2 (2) a plan to implement procedures to correct any
24-3 deficiency; or
24-4 (3) information showing that the utility has already
24-5 corrected the deficiency indicated by the score.
24-6 (f) The commission may issue an order requiring the utility
24-7 to increase its transmission or distribution expenditures by up to
24-8 five percent in the account or accounts applicable to the area of
24-9 deficiency for:
24-10 (1) failure to correct a deficiency that existed at
24-11 the time of the previous year's computation of scores; or
24-12 (2) a service interruption that affects more than
24-13 10,000 customers for a period of more than 48 hours and that is the
24-14 direct result of a failure to exercise prudent preventive
24-15 maintenance in the transmission and distribution system to provide
24-16 reliable service.
24-17 (g) The commission shall take into account the extent to
24-18 which a service interruption under Subsection (f)(2) resulted from
24-19 an act of God. Expenditures in response to a service interruption
24-20 under Subsection (f)(2) shall be spent in the relevant geographic
24-21 area and shall be dedicated to the account or accounts applicable
24-22 to that failure, including provision for sufficient personnel
24-23 available in the utility's affected functions or areas. The
24-24 commission may not otherwise assess administrative penalties under
24-25 Section 1.3215 or 1.322 of this Act unless the utility fails to
24-26 increase its expenditures within the time ordered. Any increase in
24-27 expenditures ordered under this section resulting in the facilities
25-1 performing at or above the reliability level set forth in the
25-2 standards under Subsection (a)(4) of this section and lengthening
25-3 the expected useful life of the facilities by less than one year
25-4 may not be justification for any increase in the utility's rates or
25-5 revenue requirement. However, if the utility elects to increase
25-6 the expenditures to lengthen the expected useful life of the
25-7 facilities beyond one year, the amount of expenditures necessary to
25-8 lengthen the life of the facilities beyond one year shall be
25-9 eligible for recovery.
25-10 (h) All generation providers shall be obligated to comply
25-11 with any operational criteria duly established by the independent
25-12 system operator or adopted by the commission.
25-13 SECTION 20. Section 3.051(c), Public Utility Regulatory Act
25-14 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
25-15 amended to read as follows:
25-16 (c) Except as provided by Subsections (l), (m), and (s) of
25-17 this section and Section 3.052 of this Act, the commission shall
25-18 only have the following jurisdiction over all telecommunications
25-19 utilities who are not dominant carriers:
25-20 (1) to require registration as provided in Subsection
25-21 (d) of this section as a condition of doing business in this state;
25-22 (2) to conduct such investigations as are necessary to
25-23 determine the existence, impact, and scope of competition in the
25-24 telecommunications industry, including identifying dominant
25-25 carriers in the local telecommunications and intralata
25-26 interexchange telecommunications industry and defining the
25-27 telecommunications market or markets, and in connection therewith
26-1 may call and hold hearings, issue subpoenas to compel the
26-2 attendance of witnesses and the production of papers and documents,
26-3 and make findings of fact and decisions with respect to
26-4 administering the provisions of this Act or the rules, orders, and
26-5 other actions of the commission;
26-6 (3) to require the filing of such reports as the
26-7 commission may direct from time to time;
26-8 (4) to require the maintenance of statewide average
26-9 rates or prices of telecommunications service;
26-10 (5) to require that every local exchange area have
26-11 access to local and interexchange telecommunications service,
26-12 except that a telecommunications utility must be allowed to
26-13 discontinue service to a local exchange area if comparable service
26-14 is available in the area and the discontinuance is not contrary to
26-15 the public interest; this section does not authorize the commission
26-16 to require a telecommunications utility that has not provided
26-17 services to a local exchange area during the previous 12 months and
26-18 that has never provided services to that same local exchange area
26-19 for a cumulative period of one year at any time in the past to
26-20 initiate services to that local exchange area; [and]
26-21 (6) to require the quality of telecommunications
26-22 service provided in each exchange to be adequate to protect the
26-23 public interest and the interests of customers of that exchange if
26-24 the commission determines that service to a local exchange has
26-25 deteriorated to the point that service is not reliable; and
26-26 (7) to revoke a registration for repeated violations
26-27 of this Act or commission rules.
27-1 SECTION 21. Section 3.051(s)(1), Public Utility Regulatory
27-2 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
27-3 amended to read as follows:
27-4 (1) Except as otherwise specifically provided by this
27-5 Act, the commission shall have only the following authority over a
27-6 holder of a certificate of operating authority or service provider
27-7 certificate of operating authority:
27-8 (A) to enforce the applicable provisions of this
27-9 Act as provided by Subtitle I, Title I, of this Act;
27-10 (B) to assert jurisdiction over a specific
27-11 service in accordance with Section 3.2572 of this Act;
27-12 (C) to require co-carriage reciprocity; [and]
27-13 (D) to regulate condemnation and building
27-14 access;
27-15 (E) to establish and ensure service quality and
27-16 reliability and customer service and protection; and
27-17 (F) to revoke a certificate under Section 3.263
27-18 of this Act.
27-19 SECTION 22. Section 3.2625(g), Public Utility Regulatory Act
27-20 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
27-21 amended to read as follows:
27-22 (g) The commission may order disconnection of service or
27-23 revocation of registration [for up to one year] for repeat
27-24 violations of this Act or commission rules.
27-25 SECTION 23. Section 3.263(a), Public Utility Regulatory Act
27-26 of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
27-27 amended to read as follows:
28-1 (a) The commission at any time after notice and hearing may
28-2 revoke or amend any certificate of convenience and necessity,
28-3 certificate of operating authority, or service provider certificate
28-4 of operating authority if it finds that the certificate holder has
28-5 never provided or is no longer providing service in the area or
28-6 part of the area covered by the certificate. The commission may
28-7 also revoke a certificate of convenience and necessity,
28-8 certificate of operating authority, or service provider certificate
28-9 of operating authority for repeated violations of this Act or
28-10 commission rules.
28-11 SECTION 24. (a) The Public Utility Commission of Texas and
28-12 the comptroller of public accounts shall conduct a joint study of
28-13 the structure of the gross receipts tax imposed under Section
28-14 1.351, Public Utility Regulatory Act of 1995 (Article 1446c-0,
28-15 Vernon's Texas Civil Statutes). The study must include an
28-16 examination of the potential effect of deregulation on the revenue
28-17 generated by the tax during the next 10 years.
28-18 (b) The Public Utility Commission of Texas and the
28-19 comptroller of public accounts shall prepare a joint report
28-20 detailing their findings. The report must include recommendations
28-21 on any problems or issues the commission and the comptroller
28-22 determine should be addressed by legislation or agency action.
28-23 (c) Not later than January 15, 1999, the Public Utility
28-24 Commission of Texas and the comptroller of public accounts shall
28-25 submit the report required by Subsection (b) of this section to the
28-26 76th Legislature.
28-27 SECTION 25. The following provisions of the Public Utility
29-1 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
29-2 Statutes) are repealed:
29-3 (1) Section 1.024;
29-4 (2) Section 1.025(c); and
29-5 (3) Section 1.052.
29-6 SECTION 26. This Act takes effect September 1, 1997, except
29-7 that Section 17 of this Act takes effect on the first date on which
29-8 it may take effect under Section 39, Article III, Texas
29-9 Constitution.
29-10 SECTION 27. The importance of this legislation and the
29-11 crowded condition of the calendars in both houses create an
29-12 emergency and an imperative public necessity that the
29-13 constitutional rule requiring bills to be read on three several
29-14 days in each house be suspended, and this rule is hereby suspended,
29-15 and that this Act take effect and be in force according to its
29-16 terms, and it is so enacted.