1-1 By: Armbrister S.B. No. 965
1-2 (In the Senate - Filed March 5, 1997; March 10, 1997, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 8, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; April 8, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 965 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the powers and duties of the Public Utility Commission
1-11 of Texas.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 1.002, Public Utility Regulatory Act of
1-14 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
1-15 to read as follows:
1-16 Sec. 1.002. LEGISLATIVE POLICY AND PURPOSE. (a) This Act
1-17 is enacted to protect the public interest inherent in the rates and
1-18 services of public utilities. The legislature finds that
1-19 traditionally public utilities are by definition monopolies in the
1-20 areas they serve; that therefore the normal forces of competition
1-21 which operate to regulate prices in a free enterprise society do
1-22 not operate; and that therefore utility rates, operations, and
1-23 services are regulated by public agencies with the objective that
1-24 this regulation shall operate as a substitute for competition. The
1-25 purpose of this Act is to establish a comprehensive regulatory
1-26 system which is adequate to the task of regulating public utilities
1-27 as defined by this Act, to assure rates, operations, and services
1-28 which are just and reasonable to the consumers and to the
1-29 utilities.
1-30 (b) The commission shall promote public awareness of changes
1-31 in the electric and telecommunications markets, provide customers
1-32 with information necessary to make informed choices about available
1-33 options, and ensure that customers have an adequate understanding
1-34 of their rights.
1-35 SECTION 2. Section 1.003, Public Utility Regulatory Act of
1-36 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
1-37 by amending Subdivision (14) and adding Subdivision (19) to read as
1-38 follows:
1-39 (14) "Rate" means and includes every compensation,
1-40 tariff, charge, fare, toll, rental, and classification, or any of
1-41 them demanded, observed, charged, or collected whether directly or
1-42 indirectly by any public utility for any service, product, or
1-43 commodity described in the definition of "utility" in Section
1-44 2.0011 [2.001] or 3.002 of this Act and any rules, regulations,
1-45 practices, or contracts affecting any such compensation, tariff,
1-46 charge, fare, toll, rental, or classification.
1-47 (19) "Alternative dispute resolution" includes:
1-48 (A) a procedure described by Chapter 154, Civil
1-49 Practice and Remedies Code; and
1-50 (B) a combination of the procedures described by
1-51 Chapter 154, Civil Practice and Remedies Code.
1-52 SECTION 3. Subsections (d), (e), and (f), Section 1.023,
1-53 Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
1-54 Texas Civil Statutes), are amended to read as follows:
1-55 (d) A person who is required to register as a lobbyist under
1-56 Chapter 305, Government Code, because of the person's activities
1-57 for compensation on behalf of a profession related to the operation
1-58 of the commission may not serve as a member of the commission or
1-59 serve as the public utility counsel [or act as the general counsel
1-60 to the commission].
1-61 (e) A person is not eligible for appointment as a public
1-62 member of the commission or for employment as the [general counsel
1-63 or] executive director of the commission if:
1-64 (1) the person serves on the board of directors of a
2-1 company that supplies fuel, utility-related services, or
2-2 utility-related products to regulated or unregulated electric or
2-3 telecommunications utilities; or
2-4 (2) the person or the person's spouse:
2-5 (A) is employed by or participates in the
2-6 management of a business entity or other organization regulated by
2-7 the commission or receiving funds from the commission;
2-8 (B) owns or controls, directly or indirectly,
2-9 more than a 10 percent interest or a pecuniary interest with a
2-10 value exceeding $10,000 in:
2-11 (i) a business entity or other
2-12 organization regulated by the commission or receiving funds from
2-13 the commission; or
2-14 (ii) any utility competitor, utility
2-15 supplier, or other entity affected by a commission decision in a
2-16 manner other than by the setting of rates for that class of
2-17 customer;
2-18 (C) uses or receives a substantial amount of
2-19 tangible goods, services, or funds from the commission, other than
2-20 compensation or reimbursement authorized by law for commission
2-21 membership, attendance, or expenses; or
2-22 (D) notwithstanding Paragraph (B) of this
2-23 subdivision, has an interest in a mutual fund or retirement fund in
2-24 which more than 10 percent of the fund's holdings at the time of
2-25 appointment is in a single utility, utility competitor, or utility
2-26 supplier in this state and the person does not disclose this
2-27 information to the governor, senate, commission, or other entity,
2-28 as appropriate.
2-29 (f) Notwithstanding any other provision of this Act, a
2-30 person otherwise ineligible because of the application of
2-31 Subsection (e)(2)(B) of this section may be appointed to the
2-32 commission and serve as a commissioner or may be employed as the
2-33 [general counsel or] executive director if the person:
2-34 (1) notifies the attorney general and commission that
2-35 the person is ineligible because of the application of Subsection
2-36 (e)(2)(B) of this section; and
2-37 (2) divests the person or the person's spouse of the
2-38 ownership or control before beginning service or employment, or
2-39 within a reasonable time if the person is already serving or
2-40 employed at the time Subsection (e)(2)(B) of this section first
2-41 applies to the person.
2-42 SECTION 4. Subtitle B, Title I, Public Utility Regulatory
2-43 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
2-44 amended by adding Sections 1.0235, 1.0241, and 1.0245 to read as
2-45 follows:
2-46 Sec. 1.0235. PROHIBITION ON SEEKING ANOTHER OFFICE. A
2-47 person may not seek nomination or election to another civil office
2-48 of this state or of the United States while serving as a
2-49 commissioner. If a commissioner files for nomination or election
2-50 to another civil office of this state or of the United States, the
2-51 person's office as commissioner immediately becomes vacant, and the
2-52 governor shall appoint a successor.
2-53 Sec. 1.0241. PROHIBITED ACTIVITIES. (a) During the period
2-54 of service with the commission or the State Office of
2-55 Administrative Hearings, a commissioner, commission employee, or
2-56 employee of the State Office of Administrative Hearings involved in
2-57 hearing utility cases may not:
2-58 (1) have a pecuniary interest in a rate regulated
2-59 entity, direct competitor, or affected entity;
2-60 (2) directly or indirectly own or control securities
2-61 in a rate regulated entity, direct competitor, or affected entity;
2-62 (3) accept a gift, gratuity, or entertainment from a
2-63 rate regulated entity, direct competitor, or affected entity;
2-64 (4) represent a person before the commission or State
2-65 Office of Administrative Hearings or a court in a particular matter
2-66 in which the commissioner or employee was personally involved while
2-67 associated with the commission or State Office of Administrative
2-68 Hearings; or
2-69 (5) directly or indirectly solicit, request from, or
3-1 suggest or recommend to a rate regulated entity, direct competitor,
3-2 or affected entity the appointment to a position or the employment
3-3 of a person, including an appointment or employment that would
3-4 violate Chapter 572, Government Code.
3-5 (b) A rate regulated entity, direct competitor, or affected
3-6 entity may not give or offer to give a gift, gratuity, employment,
3-7 or entertainment to a commissioner or a commission employee.
3-8 (c) It is not a violation of this section if a commissioner,
3-9 commission employee, or employee of the State Office of
3-10 Administrative Hearings, on becoming the owner of stocks, bonds, or
3-11 another pecuniary interest in a rate regulated entity, direct
3-12 competitor, or affected entity otherwise than voluntarily, informs
3-13 the commission or office, as appropriate, and the attorney general
3-14 of the ownership and divests the ownership or interest within a
3-15 reasonable time.
3-16 (d) It is not a violation of this section if a pecuniary
3-17 interest is held indirectly by ownership of an interest in a
3-18 retirement system, institution, or fund that in the normal course
3-19 of business invests in diverse securities independently of the
3-20 control of the commissioner, commission employee, or employee of
3-21 the State Office of Administrative Hearings.
3-22 (e) This section does not apply to a contract for a product
3-23 or service of a rate regulated entity, direct competitor, or
3-24 affected entity, or for equipment for use of such a product or
3-25 service, when a commissioner, commission employee, or employee of
3-26 the State Office of Administrative Hearings is acting as a
3-27 consumer.
3-28 (f) In this section:
3-29 (1) "Affected entity" means a business entity,
3-30 including an affiliate, that furnishes goods or services to rate
3-31 regulated entities, affiliates, or direct competitors if the value
3-32 of the goods or services is equal to at least the greater of
3-33 $10,000 or 10 percent of the affiliate's or entity's business. The
3-34 term includes the affiliate's or entity's agent, representative,
3-35 attorney, employee, officer, owner, director, or partner.
3-36 (2) "Direct competitor" means an entity that provides
3-37 services that are the same as, equivalent to, or substitutable for
3-38 services provided by a rate regulated entity within a geographic
3-39 market or submarket in this state at rates, terms, and conditions
3-40 that are comparable to those offered by the rate regulated entity.
3-41 (3) "Participated" means to have taken an action as a
3-42 commission officer or employee or employee of the State Office of
3-43 Administrative Hearings by approving, disapproving, or recommending
3-44 a decision, by giving advice, or by taking similar action.
3-45 (4) "Particular matter" means a specific
3-46 investigation, application, request for a ruling or determination,
3-47 rulemaking proceeding, contract, claim, charge, accusation, arrest,
3-48 or judicial or other proceeding.
3-49 (5) "Pecuniary interest" includes income,
3-50 compensation, and payment of any kind, in addition to an ownership
3-51 interest, as an officer, director, partner, owner, employee,
3-52 attorney, consultant, or otherwise.
3-53 (6) "Rate regulated entity" means:
3-54 (A) a public utility as defined by Section
3-55 2.0011 of this Act; or
3-56 (B) a dominant carrier as defined by Section
3-57 3.002 of this Act.
3-58 Sec. 1.0245. QUALIFICATIONS AND STANDARDS OF CONDUCT
3-59 INFORMATION. The executive director or the executive director's
3-60 designee shall provide to commissioners and commission employees as
3-61 often as necessary information regarding their:
3-62 (1) qualifications for office or employment under this
3-63 Act; and
3-64 (2) responsibilities under applicable laws relating to
3-65 standards of conduct for state officers and employees.
3-66 SECTION 5. Subsection (a), Section 1.026, Public Utility
3-67 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
3-68 Statutes), is amended to read as follows:
3-69 (a) It is a ground for removal from the commission if a
4-1 member:
4-2 (1) does not have at the time of appointment the
4-3 qualifications required by Section 1.023 of this Act;
4-4 (2) does not maintain during service on the commission
4-5 the qualifications required by Section 1.023 of this Act;
4-6 (3) violates a prohibition established by Section
4-7 1.023, 1.0235 [1.024], or 1.0241 [1.025] of this Act;
4-8 (4) cannot discharge the member's duties for a
4-9 substantial part of the term for which the member is appointed
4-10 because of illness or disability; or
4-11 (5) is absent from more than half of the regularly
4-12 scheduled commission meetings that the member is eligible to attend
4-13 during a calendar year unless the absence is excused by majority
4-14 vote of the commission.
4-15 SECTION 6. Subsections (a), (c), and (d), Section 1.028,
4-16 Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
4-17 Texas Civil Statutes), are amended to read as follows:
4-18 (a) The commission shall employ an executive director[, a
4-19 general counsel,] and such officers and other employees as it deems
4-20 necessary to carry out the provisions of this Act. All employees
4-21 receive such compensation as is fixed by the legislature. The
4-22 commission shall develop and implement policies that clearly define
4-23 the respective responsibilities of the commission and the staff of
4-24 the commission.
4-25 (c) The commission [general counsel and his] staff is [are]
4-26 responsible for the gathering of information relating to all
4-27 matters within the authority of the commission.
4-28 (d) The duties of the commission staff [general counsel]
4-29 include:
4-30 (1) accumulation of evidence and other information
4-31 from public utilities and from the accounting and technical and
4-32 other staffs of the commission and from other sources for the
4-33 purposes specified herein;
4-34 (2) preparation and presentation of such evidence
4-35 before the commission or its appointed examiner in proceedings;
4-36 (3) conduct of investigations of public utilities
4-37 under the jurisdiction of the commission;
4-38 (4) preparation of proposed changes in the rules of
4-39 the commission;
4-40 (5) preparation of recommendations that the commission
4-41 undertake investigation of any matter within its authority;
4-42 (6) preparation of recommendations and a report of
4-43 such staff for inclusion in the annual report of the commission;
4-44 (7) protection and representation of the public
4-45 interest and coordination and direction of the preparation and
4-46 presentation of evidence from the commission staff in all cases
4-47 before the commission as necessary to effect the objectives and
4-48 purposes stated in this Act and ensure protection of the public
4-49 interest; [and]
4-50 (8) preparation of proposed orders under Section 1.105
4-51 of this Act;
4-52 (9) preparation of staff reports under Section 1.106
4-53 of this Act; and
4-54 (10) such other activities as are reasonably necessary
4-55 to enable the staff [him] to perform the staff's [his] duties.
4-56 SECTION 7. Section 1.0512, Public Utility Regulatory Act of
4-57 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
4-58 to read as follows:
4-59 Sec. 1.0512. PROHIBITION OF [EMPLOYMENT OR] REPRESENTATION.
4-60 (a) [The counsellor may not within two years, and an employee of
4-61 the office may not within one year after his employment with the
4-62 office has ceased, be employed by a public utility which was in the
4-63 scope of the counsellor's or employee's official responsibility
4-64 while the counsellor or employee was associated with the office.]
4-65 [(b)] During the time the counsellor or an employee of the
4-66 office is associated with the office [or at any time after], the
4-67 counsellor or employee may not represent a person, corporation, or
4-68 other business entity before the commission or State Office of
4-69 Administrative Hearings or a court in a particular matter in which
5-1 the counsellor or employee was personally involved while associated
5-2 with the office [or a matter that was within the counsellor's or
5-3 employee's official responsibility while the counsellor or employee
5-4 was associated with the office].
5-5 (b) In this section, "particular matter" has the meaning
5-6 assigned by Section 1.0241 of this Act.
5-7 SECTION 8. Section 1.052, Public Utility Regulatory Act of
5-8 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
5-9 to read as follows:
5-10 Sec. 1.052. INTEREST PROHIBITED. During the period of the
5-11 counsellor's employment [and for a period of two years following
5-12 the termination of employment], it shall be unlawful for any person
5-13 employed as counsellor to have a direct or indirect interest in any
5-14 utility company regulated under this Act, to provide legal services
5-15 directly or indirectly to or be employed in any capacity by a
5-16 utility company regulated under this Act, its parent, or its
5-17 subsidiary companies, corporations, or cooperatives or a utility
5-18 competitor, utility supplier, or other entity affected in a manner
5-19 other than by the setting of rates for that class of customer[; but
5-20 such person may otherwise engage in the private practice of law
5-21 after the termination of employment as counsellor].
5-22 SECTION 9. Subsection (a), Section 1.054, Public Utility
5-23 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
5-24 Statutes), is amended to read as follows:
5-25 (a) The Office of Public Utility Counsel:
5-26 (1) shall assess the impact of utility rate changes
5-27 and other regulatory actions on residential consumers in the State
5-28 of Texas and shall be an advocate in its own name of positions most
5-29 advantageous to a substantial number of such consumers as
5-30 determined by the counsellor;
5-31 (2) may appear or intervene as a matter of right as a
5-32 party or otherwise on behalf of residential consumers, as a class,
5-33 in all proceedings before the commission, including a proceeding
5-34 involving an alternative dispute resolution procedure;
5-35 (3) may appear or intervene as a matter of right as a
5-36 party or otherwise on behalf of small commercial consumers, as a
5-37 class, in all proceedings where it is deemed by the counsellor that
5-38 small commercial consumers are in need of representation, including
5-39 a proceeding involving an alternative dispute resolution
5-40 procedure;
5-41 (4) may initiate or intervene as a matter of right or
5-42 otherwise appear in any judicial proceedings involving or arising
5-43 out of any action taken by an administrative agency in a proceeding
5-44 in which the counsellor was authorized to appear, including a
5-45 proceeding involving an alternative dispute resolution procedure;
5-46 (5) may have access as any party, other than staff, to
5-47 all records gathered by the commission under the authority of
5-48 Subsection (a) of Section 1.203 of this Act;
5-49 (6) may obtain discovery of any nonprivileged matter
5-50 which is relevant to the subject matter involved in any proceeding
5-51 or petition before the commission;
5-52 (7) may represent individual residential and small
5-53 commercial consumers with respect to their disputed complaints
5-54 concerning utility services unresolved before the commission; and
5-55 (8) may recommend legislation to the legislature which
5-56 in its judgment would positively affect the interests of
5-57 residential and small commercial consumers.
5-58 SECTION 10. Subtitle D, Title I, Public Utility Regulatory
5-59 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
5-60 amended by adding Sections 1.105 through 1.109 to read as follows:
5-61 Sec. 1.105. PROPOSED ORDERS. (a) The commission by rule
5-62 shall adopt procedures by which commission staff may issue a
5-63 proposed order to resolve all or part of a contested case before a
5-64 hearing.
5-65 (b) The rules must:
5-66 (1) prescribe the types of cases for which a proposed
5-67 order may be issued;
5-68 (2) prescribe any applicable deadlines for issuing the
5-69 order;
6-1 (3) ensure that each party:
6-2 (A) retains the right to:
6-3 (i) a full hearing as provided under
6-4 Sections 1.005 and 1.101 of this Act on issues that remain in
6-5 dispute; and
6-6 (ii) judicial review of issues that remain
6-7 in dispute under Section 1.301 of this Act;
6-8 (B) receives a copy of the proposed order; and
6-9 (C) has at least 30 days after receiving the
6-10 proposed order to object to the adoption of all or part of the
6-11 order; and
6-12 (4) ensure that the commission's action in considering
6-13 the proposed order is limited to the portions of the proposed order
6-14 recommended by the parties for approval.
6-15 (c) A proposed order or a part of a proposed order to which
6-16 a party does not object becomes final with commission approval.
6-17 Sec. 1.106. STAFF REPORTS. (a) The commission by rule
6-18 shall adopt procedures by which commission staff may prepare staff
6-19 reports detailing the information and evidence the staff would have
6-20 presented in a contested case hearing to protect and represent the
6-21 public interest and to effect the objectives and purposes stated in
6-22 this Act.
6-23 (b) The rules must:
6-24 (1) prescribe the types of cases for which staff
6-25 reports may be submitted instead of staff testimony;
6-26 (2) prescribe any applicable deadlines for filing the
6-27 staff reports with the commission;
6-28 (3) ensure that each party:
6-29 (A) retains the right to:
6-30 (i) a full hearing as provided under
6-31 Sections 1.005 and 1.101 of this Act on each provision in the staff
6-32 report to which the party objects; and
6-33 (ii) judicial review of those provisions
6-34 under Section 1.301 of this Act;
6-35 (B) receives a copy of a staff report; and
6-36 (C) has at least 30 days after receiving a staff
6-37 report to respond to the report or to object to the adoption of all
6-38 or part of the report;
6-39 (4) ensure that the commission may not act on a staff
6-40 report before the 45th day after the date it is filed with the
6-41 commission;
6-42 (5) authorize the commission or an administrative law
6-43 judge to prescribe deadlines for action on a staff report in a
6-44 particular case; and
6-45 (6) ensure that the commission's action in considering
6-46 the proposed report is limited to the portions of the report
6-47 recommended by the parties for approval.
6-48 (c) Notwithstanding any other provision of this Act, the
6-49 commission staff is not required to respond to a request for
6-50 discovery or for information from a party to a contested case while
6-51 the staff is preparing a staff report relating to that case.
6-52 Sec. 1.107. ALTERNATIVE DISPUTE RESOLUTION. (a) The
6-53 commission by rule shall adopt procedures by which the commission
6-54 may use an alternative dispute resolution procedure to resolve a
6-55 pending issue or proceeding.
6-56 (b) The rules must:
6-57 (1) provide that the commission may consider using an
6-58 alternative dispute resolution procedure on its own motion or at
6-59 the request of a party or an administrative law judge;
6-60 (2) require notice to each party that the commission
6-61 is considering the use of an alternative dispute resolution
6-62 procedure;
6-63 (3) provide that a party that objects to the use of
6-64 the procedure must file a written objection with the commission not
6-65 later than the 10th day after the date the party receives notice
6-66 under Subdivision (2) of this subsection;
6-67 (4) prescribe any applicable deadlines for completion
6-68 of various alternative dispute resolution procedures, provided that
6-69 in no event may the time required to complete the entire
7-1 alternative dispute resolution process exceed 30 days;
7-2 (5) not affect the right of a utility to put into
7-3 effect a changed rate on filing with the commission a bond as
7-4 provided for in Section 2.212 of this Act; and
7-5 (6) ensure that any contested case issues not resolved
7-6 using an alternative dispute resolution procedure are resolved by
7-7 the commission in a contested case proceeding.
7-8 (c) The commission may use an alternative dispute resolution
7-9 procedure if the commission does not receive a timely objection or
7-10 if the commission determines that an objection does not have a
7-11 reasonable basis.
7-12 (d) A residential or small commercial consumer who brings a
7-13 complaint or other action before the commission in which the value
7-14 does not exceed $10,000 may choose whether to use a contested case
7-15 proceeding or an alternative dispute resolution proceeding to
7-16 resolve the complaint or action.
7-17 (e) A deadline for a commission decision prescribed by
7-18 another provision of this Act, including Sections 2.2011, 2.211,
7-19 2.212, 3.211, 3.212, 3.2135, 3.2531, and 3.2532, is suspended
7-20 during the pendency of an alternative dispute resolution procedure.
7-21 Sec. 1.108. JURISDICTION TO ESTABLISH SERVICE QUALITY AND
7-22 RELIABILITY AND CUSTOMER SERVICE AND PROTECTION. The commission
7-23 has jurisdiction over a person required to register under Title II
7-24 of this Act, except qualifying facilities, or to obtain a
7-25 certificate under Title III of this Act to the extent necessary to
7-26 establish and ensure service quality and reliability and customer
7-27 service and protection.
7-28 Sec. 1.109. CONSUMER EDUCATION. The commission may educate
7-29 and provide information to:
7-30 (1) consumers to assist them in making an informed
7-31 decision regarding electric and telecommunications services; and
7-32 (2) providers of electric and telecommunications
7-33 services relating to the providers' responsibilities under state
7-34 laws and regulations.
7-35 SECTION 11. Subsection (e), Section 1.3215, Public Utility
7-36 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
7-37 Statutes), is amended to read as follows:
7-38 (e) Within 14 days after the date the report is issued, the
7-39 executive director shall give written notice of the report to the
7-40 person. The notice may be given by certified mail. The notice
7-41 must include a brief summary of the alleged violation and a
7-42 statement of the amount of the recommended penalty and must inform
7-43 the person that the person has a right to a hearing on the
7-44 occurrence of the violation, the amount of the penalty, or both the
7-45 occurrence of the violation and the amount of the penalty. [Before
7-46 any penalty may be assessed under this section, the person against
7-47 whom the penalty may be assessed shall be given 30 days after
7-48 receiving from the executive director the notice of the report
7-49 summarizing the alleged violation pursuant to this subsection in
7-50 which to cure the violation and the person must fail to cure the
7-51 alleged violation within the 30-day period. The person against
7-52 whom the penalty may be assessed who claims to have cured the
7-53 alleged violation shall have the burden of proving to the
7-54 commission that the alleged violation was cured and was accidental
7-55 or inadvertent.]
7-56 SECTION 12. Section 1.323, Public Utility Regulatory Act of
7-57 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
7-58 to read as follows:
7-59 Sec. 1.323. PENALTY FOR VIOLATING SECTION 1.0235 OR 1.0241
7-60 [1.024] OF THIS ACT. (a) Any member of the commission or any
7-61 officer or director of a public utility or affiliated interest
7-62 shall be subject to a civil penalty of $1,000 for each and every
7-63 knowing violation of Section 1.0235 or 1.0241 [1.024] of this Act,
7-64 such penalty to be recovered in a suit filed in a court of
7-65 competent jurisdiction by the attorney general on his own
7-66 initiative or at the request of, in the name of, and on behalf of
7-67 the commission.
7-68 (b) Any person, other than an officer or director of a
7-69 public utility or affiliated interest or a member of the
8-1 commission, shall be subject to a civil penalty of $500 for each
8-2 and every knowing violation of Section 1.0235 or 1.0241 [1.024] of
8-3 this Act, such penalty to be recovered in a suit filed in a court
8-4 of competent jurisdiction by the attorney general on his own
8-5 initiative or at the request of, in the name of, and on behalf of
8-6 the commission.
8-7 (c) Any member, officer, or employee of the commission found
8-8 in any action by a preponderance of the evidence to have violated
8-9 any provision of Section 1.0235 or 1.0241 [1.024] of this Act shall
8-10 be removed from his office or employment.
8-11 SECTION 13. Section 1.401, Public Utility Regulatory Act of
8-12 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
8-13 by adding Subsection (d) to read as follows:
8-14 (d) Not later than January 15 of each odd-numbered year, the
8-15 commission shall submit to the legislature a report on complaints
8-16 received from consumers during the previous two years. The report
8-17 must include:
8-18 (1) information on the number of complaints that were
8-19 not resolved;
8-20 (2) the reasons the complaints were not resolved; and
8-21 (3) recommendations to correct consumer problems that
8-22 the commission does not have the authority to address.
8-23 SECTION 14. Section 2.003, Public Utility Regulatory Act of
8-24 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended
8-25 to read as follows:
8-26 Sec. 2.003. SCOPE OF COMPETITION. Before January 15 of each
8-27 odd-numbered year, the commission shall report to the legislature
8-28 on the scope of competition in electric markets and the impact of
8-29 competition and industry restructuring on customers in both
8-30 competitive and noncompetitive markets. The report shall include:
8-31 (1) an assessment of the impact of competition on the
8-32 rates and availability of electric services for residential and
8-33 small commercial customers;
8-34 (2) [and] a summary of commission actions over the
8-35 preceding two years that reflect changes in the scope of
8-36 competition in regulated electric markets;
8-37 (3) [. The report shall also include] recommendations
8-38 to the legislature for further legislation that the commission
8-39 finds appropriate to promote the public interest in the context of
8-40 a partially competitive electric market; and
8-41 (4) a report on complaints received from consumers
8-42 relating to electric service or electric utilities during the
8-43 previous two years that includes:
8-44 (A) information on the number of complaints that
8-45 were not resolved;
8-46 (B) the reasons the complaints were not
8-47 resolved; and
8-48 (C) recommendations to correct consumer problems
8-49 that the commission does not have the authority to address.
8-50 SECTION 15. Subsection (b), Section 2.053, Public Utility
8-51 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
8-52 Statutes), is amended to read as follows:
8-53 (b) The commission has the following jurisdiction over
8-54 exempt wholesale generators and power marketers that sell electric
8-55 energy in this state:
8-56 (1) to require registration as provided by Subsection
8-57 (c) of this section as a condition of doing business in this state;
8-58 [and]
8-59 (2) to revoke a registration for repeated violations
8-60 of this Act or commission rules; and
8-61 (3) to require the filing of reports the commission
8-62 prescribes by rule.
8-63 SECTION 16. Subsection (b), Section 2.056, Public Utility
8-64 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
8-65 Statutes), is amended to read as follows:
8-66 (b) The commission, with the advice and consent of the
8-67 governor, shall appoint a five-person interstate connection
8-68 committee to investigate the most economical, reliable, and
8-69 efficient means to synchronously interconnect the alternating
9-1 current electric facilities of the electric facilities of electric
9-2 utilities within the Electric Reliability Council of Texas
9-3 reliability area to the alternating current electric facilities of
9-4 the electric facilities of electric utilities within the Southwest
9-5 Power Pool reliability area. The committee shall report an
9-6 estimate of the cost and benefit to effect the interconnection, an
9-7 estimate of the time to construct the interconnecting facilities,
9-8 and the service territory of the utilities in which those
9-9 facilities will be located. The committee shall submit its report
9-10 to the legislature by May 1, 1998 [September 1, 1997], at which
9-11 time the committee shall be dissolved.
9-12 SECTION 17. Subsection (b), Section 2.057, Public Utility
9-13 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
9-14 Statutes), is amended to read as follows:
9-15 (b) The commission shall adopt rules relating to the
9-16 registration and reporting requirements of qualifying facilities,
9-17 exempt wholesale generators, and power marketers. The rules must
9-18 require that each qualifying facility, exempt wholesale generator,
9-19 and power marketer register with the commission as a condition of
9-20 doing business in this state. The commission may revoke a
9-21 registration for repeated violations of this Act or commission
9-22 rules.
9-23 SECTION 18. Subsection (c), Section 3.051, Public Utility
9-24 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
9-25 Statutes), is amended to read as follows:
9-26 (c) Except as provided by Subsections (l), (m), and (s) of
9-27 this section and Section 3.052 of this Act, the commission shall
9-28 only have the following jurisdiction over all telecommunications
9-29 utilities who are not dominant carriers:
9-30 (1) to require registration as provided in Subsection
9-31 (d) of this section as a condition of doing business in this state;
9-32 (2) to conduct such investigations as are necessary to
9-33 determine the existence, impact, and scope of competition in the
9-34 telecommunications industry, including identifying dominant
9-35 carriers in the local telecommunications and intralata
9-36 interexchange telecommunications industry and defining the
9-37 telecommunications market or markets, and in connection therewith
9-38 may call and hold hearings, issue subpoenas to compel the
9-39 attendance of witnesses and the production of papers and documents,
9-40 and make findings of fact and decisions with respect to
9-41 administering the provisions of this Act or the rules, orders, and
9-42 other actions of the commission;
9-43 (3) to require the filing of such reports as the
9-44 commission may direct from time to time;
9-45 (4) to require the maintenance of statewide average
9-46 rates or prices of telecommunications service;
9-47 (5) to require that every local exchange area have
9-48 access to local and interexchange telecommunications service,
9-49 except that a telecommunications utility must be allowed to
9-50 discontinue service to a local exchange area if comparable service
9-51 is available in the area and the discontinuance is not contrary to
9-52 the public interest; this section does not authorize the commission
9-53 to require a telecommunications utility that has not provided
9-54 services to a local exchange area during the previous 12 months and
9-55 that has never provided services to that same local exchange area
9-56 for a cumulative period of one year at any time in the past to
9-57 initiate services to that local exchange area; [and]
9-58 (6) to require the quality of telecommunications
9-59 service provided in each exchange to be adequate to protect the
9-60 public interest and the interests of customers of that exchange if
9-61 the commission determines that service to a local exchange has
9-62 deteriorated to the point that service is not reliable; and
9-63 (7) to revoke a registration for repeated violations
9-64 of this Act or commission rules.
9-65 SECTION 19. Subdivision (1), Subsection (s), Section 3.051,
9-66 Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
9-67 Texas Civil Statutes), is amended to read as follows:
9-68 (1) Except as otherwise specifically provided by this
9-69 Act, the commission shall have only the following authority over a
10-1 holder of a certificate of operating authority or service provider
10-2 certificate of operating authority:
10-3 (A) to enforce the applicable provisions of this
10-4 Act as provided by Subtitle I, Title I, of this Act;
10-5 (B) to assert jurisdiction over a specific
10-6 service in accordance with Section 3.2572 of this Act;
10-7 (C) to require co-carriage reciprocity; [and]
10-8 (D) to regulate condemnation and building
10-9 access;
10-10 (E) to establish and ensure service quality and
10-11 reliability and customer service and protection; and
10-12 (F) to revoke a certificate under Section 3.263
10-13 of this Act.
10-14 SECTION 20. Subsection (g), Section 3.2625, Public Utility
10-15 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
10-16 Statutes), is amended to read as follows:
10-17 (g) The commission may order disconnection of service or
10-18 revocation of registration [for up to one year] for repeat
10-19 violations of this Act or commission rules.
10-20 SECTION 21. Subsection (a), Section 3.263, Public Utility
10-21 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
10-22 Statutes), is amended to read as follows:
10-23 (a) The commission at any time after notice and hearing may
10-24 revoke or amend any certificate of convenience and necessity,
10-25 certificate of operating authority, or service provider certificate
10-26 of operating authority if it finds that the certificate holder has
10-27 never provided or is no longer providing service in the area or
10-28 part of the area covered by the certificate. The commission may
10-29 also revoke a certificate of convenience and necessity,
10-30 certificate of operating authority, or service provider certificate
10-31 of operating authority for repeated violations of this Act or
10-32 commission rules.
10-33 SECTION 22. (a) The Public Utility Commission of Texas and
10-34 the comptroller of public accounts shall conduct a joint study of
10-35 the structure of the gross receipts tax imposed under Section
10-36 1.351, Public Utility Regulatory Act of 1995 (Article 1446c-0,
10-37 Vernon's Texas Civil Statutes). The study must include an
10-38 examination of the potential effect of deregulation on the revenue
10-39 generated by the tax during the next 10 years.
10-40 (b) The Public Utility Commission of Texas and the
10-41 comptroller of public accounts shall prepare a joint report
10-42 detailing their findings. The report must include recommendations
10-43 on any problems or issues the commission and the comptroller
10-44 determine should be addressed by legislation or agency action.
10-45 (c) Not later than January 15, 1999, the Public Utility
10-46 Commission of Texas and the comptroller of public accounts shall
10-47 submit the report required by Subsection (b) of this section to the
10-48 76th Legislature.
10-49 SECTION 23. Sections 1.024 and 1.025, Public Utility
10-50 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
10-51 Statutes), are repealed.
10-52 SECTION 24. This Act takes effect September 1, 1997, except
10-53 that Section 16 of this Act takes effect on the first date on which
10-54 it may take effect under Section 39, Article III, Texas
10-55 Constitution.
10-56 SECTION 25. The importance of this legislation and the
10-57 crowded condition of the calendars in both houses create an
10-58 emergency and an imperative public necessity that the
10-59 constitutional rule requiring bills to be read on three several
10-60 days in each house be suspended, and this rule is hereby suspended,
10-61 and that this Act take effect and be in force according to its
10-62 terms, and it is so enacted.
10-63 * * * * *