AN ACT
1-1 relating to the adoption of a nonsubstantive revision of statutes
1-2 relating to utilities, including conforming amendments, repeals,
1-3 and penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. ADOPTION OF CODE. The Utilities Code is adopted
1-6 to read as follows:
1-7 UTILITIES CODE
1-8 TITLE 1. GENERAL PROVISIONS
1-9 CHAPTER 1. GENERAL PROVISIONS
1-10 (Chapters 2-10 reserved for expansion)
1-11 TITLE 2. PUBLIC UTILITY REGULATORY ACT
1-12 SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES
1-13 CHAPTER 11. GENERAL PROVISIONS
1-14 CHAPTER 12. ORGANIZATION OF COMMISSION
1-15 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNCIL
1-16 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND
1-17 OTHER REGULATORY AUTHORITIES
1-18 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES
1-19 CHAPTER 16. COMMISSION FINANCING
1-20 (Chapters 17-30 reserved for expansion)
1-21 SUBTITLE B. ELECTRIC UTILITIES
1-22 CHAPTER 31. GENERAL PROVISIONS
2-1 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION AND
2-2 OTHER REGULATORY AUTHORITIES
2-3 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY
2-4 CHAPTER 34. ELECTRICAL PLANNING
2-5 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS
2-6 CHAPTER 36. RATES
2-7 CHAPTER 37. CERTIFICATES OF CONVENIENCE AND NECESSITY
2-8 CHAPTER 38. REGULATION OF ELECTRIC SERVICES
2-9 (Chapters 39-50 reserved for expansion)
2-10 SUBTITLE C. TELECOMMUNICATIONS UTILITIES
2-11 CHAPTER 51. GENERAL PROVISIONS
2-12 CHAPTER 52. COMMISSION JURISDICTION
2-13 CHAPTER 53. RATES
2-14 CHAPTER 54. CERTIFICATES
2-15 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES
2-16 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE AND UNIVERSAL
2-17 SERVICE FUND
2-18 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES
2-19 CHAPTER 58. INCENTIVE REGULATION
2-20 CHAPTER 59. INFRASTRUCTURE PLAN
2-21 CHAPTER 60. COMPETITIVE SAFEGUARDS
2-22 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
2-23 CHAPTER 62. BROADCASTER SAFEGUARDS
2-24 CHAPTER 63. ELECTRONIC PUBLISHING
2-25 (Chapters 64-100 reserved for expansion)
3-1 TITLE 3. GAS REGULATION
3-2 SUBTITLE A. GAS UTILITY REGULATORY ACT
3-3 CHAPTER 101. GENERAL PROVISIONS AND OFFICE OF PUBLIC
3-4 UTILITY COUNSEL
3-5 CHAPTER 102. JURISDICTION AND POWERS OF RAILROAD COMMISSION
3-6 AND OTHER REGULATORY AUTHORITIES
3-7 CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
3-8 CHAPTER 104. RATES AND SERVICES
3-9 CHAPTER 105. JUDICIAL REVIEW; ENFORCEMENT AND PENALTIES
3-10 (Chapters 106-120 reserved for expansion)
3-11 SUBTITLE B. REGULATION OF TRANSPORTATION AND USE
3-12 CHAPTER 121. GAS PIPELINES
3-13 CHAPTER 122. GAS UTILITY PIPELINE TAX
3-14 CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
3-15 CHAPTER 124. SUBMETERING TO MOBILE HOME PARKS AND
3-16 APARTMENT HOUSES
3-17 (Chapters 125-160 reserved for expansion)
3-18 TITLE 4. DELIVERY OF UTILITY SERVICES
3-19 SUBTITLE A. UTILITY CORPORATIONS AND OTHER PROVIDERS
3-20 CHAPTER 161. ELECTRIC COOPERATIVE CORPORATIONS
3-21 CHAPTER 162. TELEPHONE COOPERATIVE CORPORATIONS
3-22 CHAPTER 163. JOINT POWERS AGENCIES
3-23 CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES BY
3-24 PUBLIC ENTITIES
3-25 (Chapters 165-180 reserved for expansion)
4-1 SUBTITLE B. PROVISIONS REGULATING DELIVERY OF SERVICES
4-2 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES
4-3 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS
4-4 CHAPTER 183. UTILITY DEPOSITS
4-5 CHAPTER 184. ELECTRIC AND WATER METERING
4-6 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES
4-7 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY AND INTEGRITY
4-8 OF UTILITY SERVICE
4-9 UTILITIES CODE
4-10 TITLE 1. GENERAL PROVISIONS
4-11 CHAPTER 1. GENERAL PROVISIONS
4-12 Sec. 1.001. PURPOSE OF CODE
4-13 Sec. 1.002. CONSTRUCTION OF CODE
4-14 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE
4-15 CHAPTER 1. GENERAL PROVISIONS
4-16 Sec. 1.001. PURPOSE OF CODE. (a) This code is enacted as a
4-17 part of the state's continuing statutory revision program, begun by
4-18 the Texas Legislative Council in 1963 as directed by the
4-19 legislature in the law codified as Section 323.007, Government
4-20 Code. The program contemplates a topic-by-topic revision of the
4-21 state's general and permanent statute law without substantive
4-22 change.
4-23 (b) Consistent with the objectives of the statutory revision
4-24 program, the purpose of this code is to make the law encompassed by
4-25 this code more accessible and understandable by:
5-1 (1) rearranging the statutes into a more logical
5-2 order;
5-3 (2) employing a format and numbering system designed
5-4 to facilitate citation of the law and to accommodate future
5-5 expansion of the law;
5-6 (3) eliminating repealed, duplicative,
5-7 unconstitutional, expired, executed, and other ineffective
5-8 provisions; and
5-9 (4) restating the law in modern American English to
5-10 the greatest extent possible. (New.)
5-11 Sec. 1.002. CONSTRUCTION OF CODE. Chapter 311, Government
5-12 Code (Code Construction Act), applies to the construction of each
5-13 provision in this code except as otherwise expressly provided by
5-14 this code. (New.)
5-15 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE. A
5-16 reference in a law to a statute or a part of a statute revised by
5-17 this code is considered to be a reference to the part of this code
5-18 that revises that statute or part of that statute. (New.)
5-19 (Chapters 2-10 reserved for expansion)
5-20 TITLE 2. PUBLIC UTILITY REGULATORY ACT
5-21 SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES
5-22 CHAPTER 11. GENERAL PROVISIONS
5-23 Sec. 11.001. SHORT TITLE
5-24 Sec. 11.002. PURPOSE AND FINDINGS
5-25 Sec. 11.003. DEFINITIONS
6-1 Sec. 11.004. DEFINITION OF UTILITY
6-2 Sec. 11.005. ENTITY, COMPETITOR, OR SUPPLIER AFFECTED IN
6-3 MANNER OTHER THAN BY SETTING OF RATES
6-4 Sec. 11.006. PERSON DETERMINED TO BE AFFILIATE
6-5 Sec. 11.007. ADMINISTRATIVE PROCEDURE
6-6 Sec. 11.008. LIBERAL CONSTRUCTION
6-7 Sec. 11.009. CONSTRUCTION WITH FEDERAL AUTHORITY
6-8 CHAPTER 11. GENERAL PROVISIONS
6-9 Sec. 11.001. SHORT TITLE. This title may be cited as the
6-10 Public Utility Regulatory Act. (V.A.C.S. Art. 1446c-0, Sec.
6-11 1.001.)
6-12 Sec. 11.002. PURPOSE AND FINDINGS. (a) This title is
6-13 enacted to protect the public interest inherent in the rates and
6-14 services of public utilities. The purpose of this title is to
6-15 establish a comprehensive and adequate regulatory system for public
6-16 utilities to assure rates, operations, and services that are just
6-17 and reasonable to the consumers and to the utilities.
6-18 (b) Public utilities traditionally are by definition
6-19 monopolies in the areas they serve. As a result, the normal forces
6-20 of competition that regulate prices in a free enterprise society do
6-21 not operate. Public agencies regulate utility rates, operations,
6-22 and services as a substitute for competition. (V.A.C.S.
6-23 Art. 1446c-0, Sec. 1.002.)
6-24 Sec. 11.003. DEFINITIONS. In this title:
6-25 (1) "Affected person" means:
7-1 (A) a public utility affected by an action of a
7-2 regulatory authority;
7-3 (B) a person whose utility service or rates are
7-4 affected by a proceeding before a regulatory authority; or
7-5 (C) a person who:
7-6 (i) is a competitor of a public utility
7-7 with respect to a service performed by the utility; or
7-8 (ii) wants to enter into competition with
7-9 a public utility.
7-10 (2) "Affiliate" means:
7-11 (A) a person who directly or indirectly owns or
7-12 holds at least five percent of the voting securities of a public
7-13 utility;
7-14 (B) a person in a chain of successive ownership
7-15 of at least five percent of the voting securities of a public
7-16 utility;
7-17 (C) a corporation that has at least five percent
7-18 of its voting securities owned or controlled, directly or
7-19 indirectly, by a public utility;
7-20 (D) a corporation that has at least five percent
7-21 of its voting securities owned or controlled, directly or
7-22 indirectly, by:
7-23 (i) a person who directly or indirectly
7-24 owns or controls at least five percent of the voting securities of
7-25 a public utility; or
8-1 (ii) a person in a chain of successive
8-2 ownership of at least five percent of the voting securities of a
8-3 public utility;
8-4 (E) a person who is an officer or director of a
8-5 public utility or of a corporation in a chain of successive
8-6 ownership of at least five percent of the voting securities of a
8-7 public utility; or
8-8 (F) a person determined to be an affiliate under
8-9 Section 11.006.
8-10 (3) "Allocation" means the division among
8-11 municipalities or among municipalities and unincorporated areas of
8-12 the plant, revenues, expenses, taxes, and reserves of a utility
8-13 used to provide public utility service in a municipality or for a
8-14 municipality and unincorporated areas.
8-15 (4) "Commission" means the Public Utility Commission
8-16 of Texas.
8-17 (5) "Commissioner" means a member of the Public
8-18 Utility Commission of Texas.
8-19 (6) "Cooperative corporation" means:
8-20 (A) an electric cooperative corporation
8-21 organized under Chapter 161 or a predecessor statute to Chapter 161
8-22 and operating under that chapter; or
8-23 (B) a telephone cooperative corporation
8-24 organized under Chapter 162 or a predecessor statute to Chapter 162
8-25 and operating under that chapter.
9-1 (7) "Corporation" means a domestic or foreign
9-2 corporation, joint-stock company, or association, and each lessee,
9-3 assignee, trustee, receiver, or other successor in interest of the
9-4 corporation, company, or association, that has any of the powers or
9-5 privileges of a corporation not possessed by an individual or
9-6 partnership. The term does not include a municipal corporation,
9-7 except as expressly provided by this title.
9-8 (8) "Counsellor" means the public utility counsel.
9-9 (9) "Facilities" means all of the plant and equipment
9-10 of a public utility, and includes the tangible and intangible
9-11 property, without limitation, owned, operated, leased, licensed,
9-12 used, controlled, or supplied for, by, or in connection with the
9-13 business of the public utility.
9-14 (10) "Municipally owned utility" means a utility
9-15 owned, operated, and controlled by a municipality or by a nonprofit
9-16 corporation the directors of which are appointed by one or more
9-17 municipalities.
9-18 (11) "Office" means the Office of Public Utility
9-19 Counsel.
9-20 (12) "Order" means all or a part of a final
9-21 disposition by a regulatory authority in a matter other than
9-22 rulemaking, without regard to whether the disposition is
9-23 affirmative or negative or injunctive or declaratory. The term
9-24 includes:
9-25 (A) the issuance of a certificate of convenience
10-1 and necessity; and
10-2 (B) the setting of a rate.
10-3 (13) "Person" includes an individual, a partnership of
10-4 two or more persons having a joint or common interest, a mutual or
10-5 cooperative association, and a corporation.
10-6 (14) "Proceeding" means a hearing, investigation,
10-7 inquiry, or other procedure for finding facts or making a decision
10-8 under this title. The term includes a denial of relief or
10-9 dismissal of a complaint.
10-10 (15) "Rate" includes:
10-11 (A) any compensation, tariff, charge, fare,
10-12 toll, rental, or classification that is directly or indirectly
10-13 demanded, observed, charged, or collected by a public utility for a
10-14 service, product, or commodity described in the definition of
10-15 utility in Section 31.002 or 51.002; and
10-16 (B) a rule, practice, or contract affecting the
10-17 compensation, tariff, charge, fare, toll, rental, or
10-18 classification.
10-19 (16) "Ratemaking proceeding" means:
10-20 (A) a proceeding in which a rate is changed; and
10-21 (B) a proceeding initiated under Chapter 34.
10-22 (17) "Regulatory authority" means either the
10-23 commission or the governing body of a municipality, in accordance
10-24 with the context.
10-25 (18) "Service" has its broadest and most inclusive
11-1 meaning. The term includes any act performed, anything supplied,
11-2 and any facilities used or supplied by a public utility in the
11-3 performance of the utility's duties under this title to its
11-4 patrons, employees, other public utilities, and the public. The
11-5 term also includes the interchange of facilities between two or
11-6 more public utilities. The term does not include the printing,
11-7 distribution, or sale of advertising in a telephone directory.
11-8 (19) "Test year" means the most recent 12 months,
11-9 beginning on the first day of a calendar or fiscal year quarter,
11-10 for which operating data for a public utility are available.
11-11 (20) "Trade association" means a nonprofit,
11-12 cooperative, and voluntarily joined association of business or
11-13 professional persons who are employed by public utilities or
11-14 utility competitors to assist the public utility industry, a
11-15 utility competitor, or the industry's or competitor's employees in
11-16 dealing with mutual business or professional problems and in
11-17 promoting their common interest. (V.A.C.S. Art. 1446c-0, Secs.
11-18 1.003(1), (2) (part), (3), (4), (5), (6), (7), (8), (9), (10),
11-19 (11), (12), (13), (13A), (14), (15), (16), (17), (18); New.)
11-20 Sec. 11.004. DEFINITION OF UTILITY. In Subtitle A, "public
11-21 utility" or "utility" means:
11-22 (1) an electric utility, as that term is defined by
11-23 Section 31.002; or
11-24 (2) a public utility or utility, as those terms are
11-25 defined by Section 51.002. (V.A.C.S. Art. 1446c-0, Sec. 1.004.)
12-1 Sec. 11.005. ENTITY, COMPETITOR, OR SUPPLIER AFFECTED IN
12-2 MANNER OTHER THAN BY SETTING OF RATES. In this title, an entity,
12-3 including a utility competitor or utility supplier, is considered
12-4 to be affected in a manner other than by the setting of rates for
12-5 that class of customer if during a relevant calendar year the
12-6 entity provides fuel, utility-related goods, utility-related
12-7 products, or utility-related services to a regulated or unregulated
12-8 provider of telecommunications or electric services or to an
12-9 affiliate in an amount equal to the greater of $10,000 or 10
12-10 percent of the person's business. (V.A.C.S. Art. 1446c-0, Sec.
12-11 1.006.)
12-12 Sec. 11.006. PERSON DETERMINED TO BE AFFILIATE. (a) The
12-13 commission may determine that a person is an affiliate for purposes
12-14 of this title if the commission after notice and hearing finds that
12-15 the person:
12-16 (1) actually exercises substantial influence or
12-17 control over the policies and actions of a public utility;
12-18 (2) is a person over which a public utility exercises
12-19 the control described by Subdivision (1);
12-20 (3) is under common control with a public utility; or
12-21 (4) together with one or more persons with whom the
12-22 person is related by ownership or blood relationship, or by action
12-23 in concert, actually exercises substantial influence over the
12-24 policies and actions of a public utility even though neither person
12-25 may qualify as an affiliate individually.
13-1 (b) For purposes of Subsection (a)(3), "common control with
13-2 a public utility" means the direct or indirect possession of the
13-3 power to direct or cause the direction of the management and
13-4 policies of another, without regard to whether that power is
13-5 established through ownership or voting of securities or by any
13-6 other direct or indirect means. (V.A.C.S. Art. 1446c-0, Sec.
13-7 1.003(2) (part).)
13-8 Sec. 11.007. ADMINISTRATIVE PROCEDURE. (a) Chapter 2001,
13-9 Government Code, applies to a proceeding under this title except to
13-10 the extent inconsistent with this title.
13-11 (b) A communication of a member or employee of the
13-12 commission with any person, including a party or a party's
13-13 representative, is governed by Section 2001.061, Government Code.
13-14 (V.A.C.S. Art. 1446c-0, Sec. 1.005(a).)
13-15 Sec. 11.008. LIBERAL CONSTRUCTION. This title shall be
13-16 construed liberally to promote the effectiveness and efficiency of
13-17 regulation of public utilities to the extent that this construction
13-18 preserves the validity of this title and its provisions. (V.A.C.S.
13-19 Art. 1446c-0, Sec. 1.404 (part).)
13-20 Sec. 11.009. CONSTRUCTION WITH FEDERAL AUTHORITY. This
13-21 title shall be construed to apply so as not to conflict with any
13-22 authority of the United States. (V.A.C.S. Art. 1446c-0, Sec. 1.404
13-23 (part).)
14-1 CHAPTER 12. ORGANIZATION OF COMMISSION
14-2 SUBCHAPTER A. GENERAL PROVISIONS
14-3 Sec. 12.001. PUBLIC UTILITY COMMISSION OF TEXAS
14-4 Sec. 12.002. OFFICE
14-5 Sec. 12.003. SEAL
14-6 Sec. 12.004. REPRESENTATION BY THE ATTORNEY GENERAL
14-7 Sec. 12.005. APPLICATION OF SUNSET ACT
14-8 (Sections 12.006-12.050 reserved for expansion)
14-9 SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS
14-10 Sec. 12.051. APPOINTMENT; TERM
14-11 Sec. 12.052. PRESIDING OFFICER
14-12 Sec. 12.053. MEMBERSHIP QUALIFICATIONS
14-13 Sec. 12.054. REMOVAL OF COMMISSIONER
14-14 Sec. 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE
14-15 Sec. 12.056. EFFECT OF VACANCY
14-16 Sec. 12.057. COMPENSATION
14-17 Sec. 12.058. MEETINGS
14-18 Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS
14-19 (Sections 12.060-12.100 reserved for expansion)
14-20 SUBCHAPTER C. COMMISSION PERSONNEL
14-21 Sec. 12.101. COMMISSION EMPLOYEES
14-22 Sec. 12.102. DUTIES OF EMPLOYEES
14-23 Sec. 12.103. DUTIES OF EXECUTIVE DIRECTOR
14-24 Sec. 12.104. DUTIES OF GENERAL COUNSEL
15-1 Sec. 12.105. CAREER LADDER PROGRAM; PERFORMANCE
15-2 EVALUATIONS; MERIT PAY
15-3 Sec. 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT
15-4 (Sections 12.107-12.150 reserved for expansion)
15-5 SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES
15-6 Sec. 12.151. REGISTERED LOBBYIST
15-7 Sec. 12.152. CONFLICT OF INTEREST
15-8 Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION
15-9 Sec. 12.154. PROHIBITED ACTIVITIES
15-10 Sec. 12.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION
15-11 Sec. 12.156. QUALIFICATIONS AND STANDARDS OF
15-12 CONDUCT INFORMATION
15-13 (Sections 12.157-12.200 reserved for expansion)
15-14 SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS
15-15 Sec. 12.201. PUBLIC INTEREST INFORMATION
15-16 Sec. 12.202. PUBLIC PARTICIPATION
15-17 Sec. 12.203. ANNUAL REPORT
15-18 (Sections 12.204-12.250 reserved for expansion)
15-19 SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES
15-20 Sec. 12.251. DEFINITION
15-21 Sec. 12.252. COMMISSION AUTHORITY
15-22 Sec. 12.253. REPORT REQUIRED
15-23 Sec. 12.254. DISCRIMINATION PROHIBITED
15-24 Sec. 12.255. CAUSE OF ACTION NOT CREATED
16-1 CHAPTER 12. ORGANIZATION OF COMMISSION
16-2 SUBCHAPTER A. GENERAL PROVISIONS
16-3 Sec. 12.001. PUBLIC UTILITY COMMISSION OF TEXAS. The Public
16-4 Utility Commission of Texas exercises the jurisdiction and powers
16-5 conferred by this title. (V.A.C.S. Art. 1446c-0, Sec. 1.021(a)
16-6 (part).)
16-7 Sec. 12.002. OFFICE. (a) The principal office of the
16-8 commission is in Austin.
16-9 (b) The office shall be open daily during usual business
16-10 hours. The office is not required to be open on Saturday, Sunday,
16-11 or a legal holiday. (V.A.C.S. Art. 1446c-0, Sec. 1.031(a) (part).)
16-12 Sec. 12.003. SEAL. (a) The commission has a seal bearing
16-13 the inscription: "Public Utility Commission of Texas."
16-14 (b) The seal shall be affixed to each record and to an
16-15 authentication of a copy of a record. The commission may require
16-16 the seal to be affixed to other instruments.
16-17 (c) A court of this state shall take judicial notice of the
16-18 seal. (V.A.C.S. Art. 1446c-0, Sec. 1.032.)
16-19 Sec. 12.004. REPRESENTATION BY THE ATTORNEY GENERAL. The
16-20 attorney general shall represent the commission in a matter before
16-21 a state court, a court of the United States, or a federal public
16-22 utility regulatory commission. (V.A.C.S. Art. 1446c-0, Secs.
16-23 1.037, 1.301 (part).)
16-24 Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility
16-25 Commission of Texas is subject to Chapter 325, Government Code
17-1 (Texas Sunset Act). Unless continued in existence as provided by
17-2 that chapter, the commission is abolished and this title expires
17-3 September 1, 2001. (V.A.C.S. Art. 1446c-0, Sec. 1.022 (part).)
17-4 (Sections 12.006-12.050 reserved for expansion)
17-5 SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS
17-6 Sec. 12.051. APPOINTMENT; TERM. (a) The commission is
17-7 composed of three commissioners appointed by the governor with the
17-8 advice and consent of the senate.
17-9 (b) An appointment to the commission shall be made without
17-10 regard to the race, color, disability, sex, religion, age, or
17-11 national origin of the appointee.
17-12 (c) Commissioners serve staggered, six-year terms.
17-13 (V.A.C.S. Art. 1446c-0, Secs. 1.021(a) (part), (d).)
17-14 Sec. 12.052. PRESIDING OFFICER. (a) The governor shall
17-15 designate a commissioner as the presiding officer.
17-16 (b) The presiding officer serves in that capacity at the
17-17 pleasure of the governor. (V.A.C.S. Art. 1446c-0, Sec. 1.021(c).)
17-18 Sec. 12.053. MEMBERSHIP QUALIFICATIONS. (a) To be eligible
17-19 for appointment, a commissioner must be:
17-20 (1) a qualified voter;
17-21 (2) a citizen of the United States; and
17-22 (3) a representative of the general public.
17-23 (b) A person is not eligible for appointment as a
17-24 commissioner if the person:
17-25 (1) at any time during the two years preceding
18-1 appointment:
18-2 (A) personally served as an officer, director,
18-3 owner, employee, partner, or legal representative of a public
18-4 utility, affiliate, or direct competitor of a public utility; or
18-5 (B) owned or controlled, directly or indirectly,
18-6 stocks or bonds of any class with a value of $10,000 or more in a
18-7 public utility, affiliate, or direct competitor of a public
18-8 utility; or
18-9 (2) is not qualified to serve under Section 12.151,
18-10 12.152, or 12.153. (V.A.C.S. Art. 1446c-0, Secs. 1.023(a) (part),
18-11 (c).)
18-12 Sec. 12.054. REMOVAL OF COMMISSIONER. (a) It is a ground
18-13 for removal from the commission if a commissioner:
18-14 (1) does not have at the time of appointment or
18-15 maintain during service on the commission the qualifications
18-16 required by Section 12.053;
18-17 (2) violates a prohibition provided by Section 12.053
18-18 or by Subchapter D;
18-19 (3) cannot discharge the commissioner's duties for a
18-20 substantial part of the term for which the commissioner is
18-21 appointed because of illness or disability; or
18-22 (4) is absent from more than half of the regularly
18-23 scheduled commission meetings that the commissioner is eligible to
18-24 attend during a calendar year unless the absence is excused by
18-25 majority vote of the commission.
19-1 (b) The validity of an action of the commission is not
19-2 affected by the fact that the action is taken when a ground for
19-3 removal of a commissioner exists.
19-4 (c) If the executive director has knowledge that a potential
19-5 ground for removal exists, the executive director shall notify the
19-6 presiding officer of the commission of the potential ground. The
19-7 presiding officer shall then notify the governor and the attorney
19-8 general that a potential ground for removal exists. If the
19-9 potential ground for removal involves the presiding officer, the
19-10 executive director shall notify the next highest officer of the
19-11 commission, who shall notify the governor and the attorney general
19-12 that a potential ground for removal exists. (V.A.C.S.
19-13 Art. 1446c-0, Secs. 1.026(a), (b), (c).)
19-14 Sec. 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE. A
19-15 person may not seek nomination or election to another civil office
19-16 of this state or of the United States while serving as a
19-17 commissioner. If a commissioner files for nomination or election
19-18 to another civil office of this state or of the United States, the
19-19 person's office as commissioner immediately becomes vacant, and the
19-20 governor shall appoint a successor. (V.A.C.S. Art. 1446c-0, Sec.
19-21 1.024(f).)
19-22 Sec. 12.056. EFFECT OF VACANCY. A vacancy or
19-23 disqualification does not prevent the remaining commissioner or
19-24 commissioners from exercising the powers of the commission.
19-25 (V.A.C.S. Art. 1446c-0, Sec. 1.033 (part).)
20-1 Sec. 12.057. COMPENSATION. The annual salary of the
20-2 commissioners is determined by the legislature. (V.A.C.S.
20-3 Art. 1446c-0, Sec. 1.030.)
20-4 Sec. 12.058. MEETINGS. The commission shall hold meetings
20-5 at its office and at other convenient places in this state as
20-6 expedient and necessary for the proper performance of the
20-7 commission's duties. (V.A.C.S. Art. 1446c-0, Sec. 1.031(a)
20-8 (part).)
20-9 Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS.
20-10 (a) Before a commissioner may assume the commissioner's duties and
20-11 before the commissioner may be confirmed by the senate, the
20-12 commissioner must complete at least one course of the training
20-13 program established under this section.
20-14 (b) A training program established under this section shall
20-15 provide information to the commissioner regarding:
20-16 (1) the enabling legislation that created the
20-17 commission and its policymaking body to which the commissioner is
20-18 appointed to serve;
20-19 (2) the programs operated by the commission;
20-20 (3) the role and functions of the commission;
20-21 (4) the rules of the commission with an emphasis on
20-22 the rules that relate to disciplinary and investigatory authority;
20-23 (5) the current budget for the commission;
20-24 (6) the results of the most recent formal audit of the
20-25 commission;
21-1 (7) the requirements of Chapters 551, 552, and 2001,
21-2 Government Code;
21-3 (8) the requirements of the conflict of interest laws
21-4 and other laws relating to public officials; and
21-5 (9) any applicable ethics policies adopted by the
21-6 commission or the Texas Ethics Commission. (V.A.C.S. Art. 1446c-0,
21-7 Secs. 1.026(d), (e).)
21-8 (Sections 12.060-12.100 reserved for expansion)
21-9 SUBCHAPTER C. COMMISSION PERSONNEL
21-10 Sec. 12.101. COMMISSION EMPLOYEES. The commission shall
21-11 employ:
21-12 (1) an executive director;
21-13 (2) a general counsel; and
21-14 (3) officers and other employees the commission
21-15 considers necessary to administer this title. (V.A.C.S.
21-16 Art. 1446c-0, Sec. 1.028(a) (part).)
21-17 Sec. 12.102. DUTIES OF EMPLOYEES. The commission shall
21-18 develop and implement policies that clearly define the respective
21-19 responsibilities of the commission and commission employees.
21-20 (V.A.C.S. Art. 1446c-0, Sec. 1.028(a) (part).)
21-21 Sec. 12.103. DUTIES OF EXECUTIVE DIRECTOR. The executive
21-22 director is responsible for the daily operations of the commission
21-23 and shall coordinate the activities of commission employees.
21-24 (V.A.C.S. Art. 1446c-0, Sec. 1.028(b).)
21-25 Sec. 12.104. DUTIES OF GENERAL COUNSEL. The duties of the
22-1 general counsel include:
22-2 (1) gathering information relating to each matter
22-3 within the authority of the commission;
22-4 (2) accumulating evidence and other information for
22-5 the purposes specified by this section from:
22-6 (A) public utilities;
22-7 (B) the accounting, technical, and other
22-8 commission staff; and
22-9 (C) other sources;
22-10 (3) preparing and presenting the evidence described by
22-11 Subdivision (2) in a proceeding before the commission or the
22-12 commission's appointed examiner;
22-13 (4) conducting an investigation of a public utility
22-14 under the jurisdiction of the commission;
22-15 (5) preparing proposed changes in the rules of the
22-16 commission;
22-17 (6) preparing recommendations that the commission
22-18 investigate a matter within its authority;
22-19 (7) preparing recommendations and a report by
22-20 commission employees for inclusion in the annual report of the
22-21 commission;
22-22 (8) protecting and representing the public interest
22-23 and, as necessary to effect the objectives and purposes stated in
22-24 this title and protect the public interest, coordinating and
22-25 directing the preparation and presentation of evidence from
23-1 commission employees in each case before the commission; and
23-2 (9) performing any other activity reasonably necessary
23-3 to the general counsel's duties. (V.A.C.S. Art. 1446c-0, Secs.
23-4 1.028(c), (d).)
23-5 Sec. 12.105. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS;
23-6 MERIT PAY. (a) The executive director or the executive director's
23-7 designee shall develop an intra-agency career ladder program that
23-8 addresses opportunities for mobility and advancement for commission
23-9 employees. The program shall require intra-agency posting of each
23-10 position concurrently with any public posting.
23-11 (b) The executive director or the executive director's
23-12 designee shall develop a system of annual performance evaluations
23-13 that are based on documented employee performance. Merit pay for
23-14 commission employees must be based on the system established under
23-15 this subsection. (V.A.C.S. Art. 1446c-0, Sec. 1.029(a).)
23-16 Sec. 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
23-17 (a) The executive director or the executive director's designee
23-18 shall prepare and maintain a written policy statement to ensure
23-19 implementation of a program of equal employment opportunity under
23-20 which all personnel transactions are made without regard to race,
23-21 color, disability, sex, religion, age, or national origin.
23-22 (b) The policy statement under Subsection (a) must include:
23-23 (1) personnel policies, including policies related to
23-24 recruitment, evaluation, selection, appointment, training, and
23-25 promotion of personnel, that are in compliance with the
24-1 requirements of Chapter 21, Labor Code;
24-2 (2) a comprehensive analysis of the commission
24-3 workforce that meets federal and state guidelines;
24-4 (3) procedures by which a determination can be made
24-5 about the extent of underuse in the commission workforce of all
24-6 persons for whom federal or state guidelines encourage a more
24-7 equitable balance; and
24-8 (4) reasonable methods to appropriately address the
24-9 underuse.
24-10 (c) A policy statement prepared under Subsection (b) must:
24-11 (1) cover an annual period;
24-12 (2) be updated at least annually;
24-13 (3) be reviewed by the Commission on Human Rights for
24-14 compliance with Subsection (b)(1); and
24-15 (4) be filed with the governor's office.
24-16 (d) The governor's office shall deliver a biennial report to
24-17 the legislature based on the information received under Subsection
24-18 (c). The report may be made separately or as a part of other
24-19 biennial reports to the legislature. (V.A.C.S. Art. 1446c-0, Secs.
24-20 1.029(b), (c), (d).)
24-21 (Sections 12.107-12.150 reserved for expansion)
24-22 SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES
24-23 Sec. 12.151. REGISTERED LOBBYIST. A person required to
24-24 register as a lobbyist under Chapter 305, Government Code, because
24-25 of the person's activities for compensation on behalf of a
25-1 profession related to the operation of the commission may not serve
25-2 as a commissioner or act as general counsel to the commission.
25-3 (V.A.C.S. Art. 1446c-0, Sec. 1.023(d) (part).)
25-4 Sec. 12.152. CONFLICT OF INTEREST. (a) A person is not
25-5 eligible for appointment as a commissioner or for employment as the
25-6 general counsel or executive director of the commission if:
25-7 (1) the person serves on the board of directors of a
25-8 company that supplies fuel, utility-related services, or
25-9 utility-related products to regulated or unregulated electric or
25-10 telecommunications utilities; or
25-11 (2) the person or the person's spouse:
25-12 (A) is employed by or participates in the
25-13 management of a business entity or other organization that is
25-14 regulated by or receives funds from the commission;
25-15 (B) directly or indirectly owns or controls more
25-16 than a 10 percent interest or a pecuniary interest with a value
25-17 exceeding $10,000 in:
25-18 (i) a business entity or other
25-19 organization that is regulated by or receives funds from the
25-20 commission; or
25-21 (ii) a utility competitor, utility
25-22 supplier, or other entity affected by a commission decision in a
25-23 manner other than by the setting of rates for that class of
25-24 customer;
25-25 (C) uses or receives a substantial amount of
26-1 tangible goods, services, or funds from the commission, other than
26-2 compensation or reimbursement authorized by law for commission
26-3 membership, attendance, or expenses; or
26-4 (D) notwithstanding Paragraph (B), has an
26-5 interest in a mutual fund or retirement fund in which more than 10
26-6 percent of the fund's holdings at the time of appointment is in a
26-7 single utility, utility competitor, or utility supplier in this
26-8 state and the person does not disclose this information to the
26-9 governor, senate, commission, or other entity, as appropriate.
26-10 (b) A person otherwise ineligible because of Subsection
26-11 (a)(2)(B) may be appointed to the commission and serve as a
26-12 commissioner or may be employed as the general counsel or executive
26-13 director if the person:
26-14 (1) notifies the attorney general and commission that
26-15 the person is ineligible because of Subsection (a)(2)(B); and
26-16 (2) divests the person or the person's spouse of the
26-17 ownership or control:
26-18 (A) before beginning service or employment; or
26-19 (B) if the person is already serving or
26-20 employed, within a reasonable time. (V.A.C.S. Art. 1446c-0, Secs.
26-21 1.023(e), (f).)
26-22 Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION. A person
26-23 may not serve as a commissioner or be a commission employee who is
26-24 exempt from the state's position classification plan or is
26-25 compensated at or above the amount prescribed by the General
27-1 Appropriations Act for step 1, salary group 17, of the position
27-2 classification salary schedule if the person is:
27-3 (1) an officer, employee, or paid consultant of a
27-4 trade association; or
27-5 (2) the spouse of an officer, manager, or paid
27-6 consultant of a trade association. (V.A.C.S. Art. 1446c-0, Secs.
27-7 1.023(g), (h).)
27-8 Sec. 12.154. PROHIBITED ACTIVITIES. (a) During the period
27-9 of service with the commission, a commissioner or commission
27-10 employee may not:
27-11 (1) have a pecuniary interest, including an interest
27-12 as an officer, director, partner, owner, employee, attorney, or
27-13 consultant, in:
27-14 (A) a public utility or affiliate; or
27-15 (B) a person a significant portion of whose
27-16 business consists of furnishing goods or services to public
27-17 utilities or affiliates;
27-18 (2) directly or indirectly own or control securities
27-19 in a public utility, affiliate, or direct competitor of a public
27-20 utility; or
27-21 (3) accept a gift, gratuity, or entertainment from:
27-22 (A) a public utility, affiliate, or direct
27-23 competitor of a public utility;
27-24 (B) a person a significant portion of whose
27-25 business consists of furnishing goods or services to public
28-1 utilities, affiliates, or direct competitors of public utilities;
28-2 or
28-3 (C) an agent, representative, attorney,
28-4 employee, officer, owner, director, or partner of a person
28-5 described by Paragraph (A) or (B).
28-6 (b) A commissioner or a commission employee may not directly
28-7 or indirectly solicit, request from, or suggest or recommend to a
28-8 public utility or an agent, representative, attorney, employee,
28-9 officer, owner, director, or partner of a public utility the
28-10 appointment to a position or the employment of a person by the
28-11 public utility or affiliate.
28-12 (c) A person may not give or offer to give a gift, gratuity,
28-13 employment, or entertainment to a commissioner or commission
28-14 employee if that person is:
28-15 (1) a public utility, affiliate, or direct competitor
28-16 of a public utility;
28-17 (2) a person who furnishes goods or services to a
28-18 public utility, affiliate, or direct competitor of a public
28-19 utility; or
28-20 (3) an agent, representative, attorney, employee,
28-21 officer, owner, director, or partner of a person described by
28-22 Subdivision (1) or (2).
28-23 (d) A public utility, affiliate, or direct competitor of a
28-24 public utility or a person furnishing goods or services to a public
28-25 utility, affiliate, or direct competitor of a public utility may
29-1 not aid, abet, or participate with a commissioner, commission
29-2 employee, or former commission employee in conduct that violates
29-3 Subsection (a)(3) or (c).
29-4 (e) Subsection (a)(1) does not apply to an interest in a
29-5 nonprofit group or association, other than a trade association,
29-6 that is solely supported by gratuitous contributions of money,
29-7 property, or services.
29-8 (f) It is not a violation of this section if a commissioner
29-9 or commission employee, on becoming the owner of stocks, bonds, or
29-10 another pecuniary interest in a public utility, affiliate, or
29-11 direct competitor of a public utility otherwise than voluntarily,
29-12 informs the commission and the attorney general of the ownership
29-13 and divests the ownership or interest within a reasonable time.
29-14 (g) It is not a violation of this section if a pecuniary
29-15 interest is held indirectly by ownership of an interest in a
29-16 retirement system, institution, or fund that in the normal course
29-17 of business invests in diverse securities independently of the
29-18 control of the commissioner or commission employee.
29-19 (h) This section does not apply to a contract for a public
29-20 utility product or service or equipment for use of a public utility
29-21 product when a commissioner or commission employee is acting as a
29-22 consumer.
29-23 (i) In this section, a "pecuniary interest" includes income,
29-24 compensation, and payment of any kind, in addition to an ownership
29-25 interest. (V.A.C.S. Art. 1446c-0, Secs. 1.024(a) (part), (b), (c),
30-1 (d), (e).)
30-2 Sec. 12.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION.
30-3 (a) A commissioner, a commission employee, or an employee of the
30-4 State Office of Administrative Hearings involved in hearing utility
30-5 cases may not:
30-6 (1) be employed by a public utility that was in the
30-7 scope of the commissioner's or employee's official responsibility
30-8 while the commissioner or employee was associated with the
30-9 commission or the State Office of Administrative Hearings; or
30-10 (2) represent a person before the commission or State
30-11 Office of Administrative Hearings or a court in a matter:
30-12 (A) in which the commissioner or employee was
30-13 personally involved while associated with the commission or State
30-14 Office of Administrative Hearings; or
30-15 (B) that was within the commissioner's or
30-16 employee's official responsibility while the commissioner or
30-17 employee was associated with the commission or State Office of
30-18 Administrative Hearings.
30-19 (b) The prohibition of Subsection (a)(1) applies until the:
30-20 (1) second anniversary of the date the commissioner
30-21 ceases to serve as a commissioner; and
30-22 (2) first anniversary of the date the employee's
30-23 employment with the commission or State Office of Administrative
30-24 Hearings ceases.
30-25 (c) The prohibition of Subsection (a)(2) applies while a
31-1 commissioner, commission employee, or employee of the State Office
31-2 of Administrative Hearings involved in hearing utility cases is
31-3 associated with the commission or State Office of Administrative
31-4 Hearings and at any time after. (V.A.C.S. Art. 1446c-0, Secs.
31-5 1.025(a), (b).)
31-6 Sec. 12.156. QUALIFICATIONS AND STANDARDS OF CONDUCT
31-7 INFORMATION. The executive director or the executive director's
31-8 designee shall provide to commissioners and commission employees as
31-9 often as necessary information regarding their:
31-10 (1) qualifications for office or employment under this
31-11 title; and
31-12 (2) responsibilities under applicable laws relating to
31-13 standards of conduct for state officers and employees. (V.A.C.S.
31-14 Art. 1446c-0, Sec. 1.025(c).)
31-15 (Sections 12.157-12.200 reserved for expansion)
31-16 SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS
31-17 Sec. 12.201. PUBLIC INTEREST INFORMATION. (a) The
31-18 commission shall prepare information of public interest describing
31-19 the functions of the commission and the commission's procedures by
31-20 which a complaint is filed with and resolved by the commission.
31-21 The commission shall make the information available to the public
31-22 and appropriate state agencies.
31-23 (b) The commission by rule shall establish methods by which
31-24 consumers and service recipients are notified of the name, mailing
31-25 address, and telephone number of the commission for the purpose of
32-1 directing complaints to the commission. (V.A.C.S. Art. 1446c-0,
32-2 Secs. 1.036(a), (b).)
32-3 Sec. 12.202. PUBLIC PARTICIPATION. (a) The commission
32-4 shall develop and implement policies that provide the public with a
32-5 reasonable opportunity to appear before the commission and to speak
32-6 on any issue under the jurisdiction of the commission.
32-7 (b) The commission shall comply with federal and state laws
32-8 related to program and facility accessibility.
32-9 (c) The commission shall prepare and maintain a written plan
32-10 that describes how a person who does not speak English may be
32-11 provided reasonable access to the commission's programs and
32-12 services. (V.A.C.S. Art. 1446c-0, Secs. 1.031(b), 1.036(c).)
32-13 Sec. 12.203. ANNUAL REPORT. (a) The commission shall
32-14 prepare annually a complete and detailed written report accounting
32-15 for all funds received and disbursed by the commission during the
32-16 preceding fiscal year. The annual report must meet the reporting
32-17 requirements applicable to financial reporting in the General
32-18 Appropriations Act.
32-19 (b) In the annual report issued in the year preceding the
32-20 convening of each regular session of the legislature, the
32-21 commission shall make suggestions regarding modification and
32-22 improvement of the commission's statutory authority and for the
32-23 improvement of utility regulation in general that the commission
32-24 considers appropriate for protecting and furthering the interest of
32-25 the public. (V.A.C.S. Art. 1446c-0, Sec. 1.035.)
33-1 (Sections 12.204-12.250 reserved for expansion)
33-2 SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES
33-3 Sec. 12.251. DEFINITION. In this subchapter, "historically
33-4 underutilized business" has the meaning assigned by Section
33-5 481.101, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.407(c).)
33-6 Sec. 12.252. COMMISSION AUTHORITY. The commission, after
33-7 notice and hearing, may require each utility subject to regulation
33-8 under this title to make an effort to overcome the underuse of
33-9 historically underutilized businesses. (V.A.C.S. Art. 1446c-0,
33-10 Sec. 1.407(a).)
33-11 Sec. 12.253. REPORT REQUIRED. The commission shall require
33-12 each utility subject to regulation under this title to prepare and
33-13 submit to the commission a comprehensive annual report detailing
33-14 its use of historically underutilized businesses. (V.A.C.S.
33-15 Art. 1446c-0, Sec. 1.407(b).)
33-16 Sec. 12.254. DISCRIMINATION PROHIBITED. The rules adopted
33-17 under this subchapter may not be used to discriminate against a
33-18 citizen on the basis of sex, race, color, creed, or national
33-19 origin. (V.A.C.S. Art. 1446c-0, Sec. 1.407(d).)
33-20 Sec. 12.255. CAUSE OF ACTION NOT CREATED. This subchapter
33-21 does not create a public or private cause of action. (V.A.C.S.
33-22 Art. 1446c-0, Sec. 1.407(e).)
33-23 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNSEL
33-24 SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES
33-25 Sec. 13.001. OFFICE OF PUBLIC UTILITY COUNSEL
34-1 Sec. 13.002. APPLICATION OF SUNSET ACT
34-2 Sec. 13.003. OFFICE POWERS AND DUTIES
34-3 (Sections 13.004-13.020 reserved for expansion)
34-4 SUBCHAPTER B. PUBLIC UTILITY COUNSEL
34-5 Sec. 13.021. APPOINTMENT; TERM
34-6 Sec. 13.022. QUALIFICATIONS
34-7 Sec. 13.023. GROUNDS FOR REMOVAL
34-8 Sec. 13.024. PROHIBITED ACTS
34-9 (Sections 13.025-13.040 reserved for expansion)
34-10 SUBCHAPTER C. OFFICE PERSONNEL
34-11 Sec. 13.041. PERSONNEL
34-12 Sec. 13.042. RELATIONSHIP WITH TRADE ASSOCIATION
34-13 Sec. 13.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION
34-14 Sec. 13.044. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS;
34-15 MERIT PAY
34-16 Sec. 13.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT
34-17 Sec. 13.046. QUALIFICATIONS AND STANDARDS OF CONDUCT
34-18 INFORMATION
34-19 (Sections 13.047-13.060 reserved for expansion)
34-20 SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS
34-21 Sec. 13.061. PUBLIC INTEREST INFORMATION
34-22 Sec. 13.062. PUBLIC PARTICIPATION
34-23 Sec. 13.063. ANNUAL REPORT
35-1 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNSEL
35-2 SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES
35-3 Sec. 13.001. OFFICE OF PUBLIC UTILITY COUNSEL. The
35-4 independent office of public utility counsel represents the
35-5 interests of residential and small commercial consumers. (V.A.C.S.
35-6 Art. 1446c-0, Sec. 1.051(a).)
35-7 Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of
35-8 Public Utility Counsel is subject to Chapter 325, Government Code
35-9 (Texas Sunset Act). Unless continued in existence as provided by
35-10 that chapter, the office is abolished and this chapter expires
35-11 September 1, 2001. (V.A.C.S. Art. 1446c-0, Sec. 1.022 (part).)
35-12 Sec. 13.003. OFFICE POWERS AND DUTIES. (a) The office:
35-13 (1) shall assess the effect of utility rate changes
35-14 and other regulatory actions on residential consumers in this
35-15 state;
35-16 (2) shall advocate in the office's own name a position
35-17 determined by the counsellor to be most advantageous to a
35-18 substantial number of residential consumers;
35-19 (3) may appear or intervene, as a party or otherwise,
35-20 as a matter of right on behalf of:
35-21 (A) residential consumers, as a class, in any
35-22 proceeding before the commission; and
35-23 (B) small commercial consumers, as a class, in
35-24 any proceeding in which the counsellor determines that small
35-25 commercial consumers are in need of representation;
36-1 (4) may initiate or intervene as a matter of right or
36-2 otherwise appear in a judicial proceeding that involves an action
36-3 taken by an administrative agency in a proceeding in which the
36-4 counsellor is authorized to appear;
36-5 (5) is entitled to the same access as a party, other
36-6 than commission staff, to records gathered by the commission under
36-7 Section 14.204;
36-8 (6) is entitled to discovery of any nonprivileged
36-9 matter that is relevant to the subject matter of a proceeding or
36-10 petition before the commission;
36-11 (7) may represent an individual residential or small
36-12 commercial consumer with respect to the consumer's disputed
36-13 complaint concerning utility services that is unresolved before the
36-14 commission; and
36-15 (8) may recommend legislation to the legislature that
36-16 the office determines would positively affect the interests of
36-17 residential and small commercial consumers.
36-18 (b) This section does not limit the authority of the
36-19 commission to represent residential or small commercial consumers.
36-20 (c) The appearance of the counsellor in a proceeding does
36-21 not preclude the appearance of other parties on behalf of
36-22 residential or small commercial consumers. The counsellor may not
36-23 be grouped with any other party. (V.A.C.S. Art. 1446c-0, Sec.
36-24 1.054.)
36-25 (Sections 13.004-13.020 reserved for expansion)
37-1 SUBCHAPTER B. PUBLIC UTILITY COUNSEL
37-2 Sec. 13.021. APPOINTMENT; TERM. (a) The chief executive of
37-3 the office is the counsellor.
37-4 (b) The counsellor is appointed by the governor with the
37-5 advice and consent of the senate.
37-6 (c) The appointment of the counsellor shall be made without
37-7 regard to the race, color, disability, sex, religion, age, or
37-8 national origin of the appointee.
37-9 (d) The counsellor serves a two-year term that expires on
37-10 February 1 of the final year of the term. (V.A.C.S. Art. 1446c-0,
37-11 Sec. 1.051(b).)
37-12 Sec. 13.022. QUALIFICATIONS. (a) The counsellor must:
37-13 (1) be licensed to practice law in this state;
37-14 (2) have demonstrated a strong commitment to and
37-15 involvement in efforts to safeguard the rights of the public; and
37-16 (3) possess the knowledge and experience necessary to
37-17 practice effectively in utility proceedings.
37-18 (b) A person is not eligible for appointment as counsellor
37-19 if:
37-20 (1) the person or the person's spouse:
37-21 (A) is employed by or participates in the
37-22 management of a business entity or other organization that is
37-23 regulated by or receives funds from the commission;
37-24 (B) directly or indirectly owns or controls more
37-25 than a 10 percent interest or a pecuniary interest with a value
38-1 exceeding $10,000 in:
38-2 (i) a business entity or other
38-3 organization that is regulated by or receives funds from the
38-4 commission or the office; or
38-5 (ii) a utility competitor, utility
38-6 supplier, or other entity affected by a commission decision in a
38-7 manner other than by the setting of rates for that class of
38-8 customer;
38-9 (C) uses or receives a substantial amount of
38-10 tangible goods, services, or funds from the commission or the
38-11 office, other than compensation or reimbursement authorized by law
38-12 for service as counsellor or for commission membership, attendance,
38-13 or expenses; or
38-14 (D) notwithstanding Paragraph (B), has an
38-15 interest in a mutual fund or retirement fund in which more than 10
38-16 percent of the fund's holdings is in a single utility, utility
38-17 competitor, or utility supplier in this state and the person does
38-18 not disclose this information to the governor, senate, or other
38-19 entity, as appropriate; or
38-20 (2) the person is not qualified to serve under Section
38-21 13.042.
38-22 (c) A person required to register as a lobbyist under
38-23 Chapter 305, Government Code, because of the person's activities
38-24 for compensation on behalf of a profession related to the operation
38-25 of the commission or the office may not serve as counsellor.
39-1 (d) A person otherwise ineligible because of Subsection
39-2 (b)(1)(B) may be appointed and serve as counsellor if the person:
39-3 (1) notifies the attorney general and commission that
39-4 the person is ineligible because of Subsection (b)(1)(B); and
39-5 (2) divests the person or the person's spouse of the
39-6 ownership or control:
39-7 (A) before beginning service; or
39-8 (B) if the person is already serving, within a
39-9 reasonable time. (V.A.C.S. Art. 1446c-0, Secs. 1.023(d) (part),
39-10 1.051(c), (d), (e), (g).)
39-11 Sec. 13.023. GROUNDS FOR REMOVAL. (a) It is a ground for
39-12 removal from office if the counsellor:
39-13 (1) does not have at the time of appointment or
39-14 maintain during service as counsellor the qualifications required
39-15 by Section 13.022;
39-16 (2) violates a prohibition provided by Section 13.022,
39-17 13.042, or 13.043; or
39-18 (3) cannot discharge the counsellor's duties for a
39-19 substantial part of the term for which the counsellor is appointed
39-20 because of illness or disability.
39-21 (b) The validity of an action of the office is not affected
39-22 by the fact that the action is taken when a ground for removal of
39-23 the counsellor exists. (V.A.C.S. Art. 1446c-0, Sec. 1.0511.)
39-24 Sec. 13.024. PROHIBITED ACTS. (a) The counsellor may not:
39-25 (1) have a direct or indirect interest in a utility
40-1 company regulated under this title; or
40-2 (2) provide legal services directly or indirectly to
40-3 or be employed in any capacity by a utility company regulated under
40-4 this title, its parent, or its subsidiary companies, corporations,
40-5 or cooperatives or a utility competitor, utility supplier, or other
40-6 entity affected in a manner other than by the setting of rates for
40-7 that class of customer.
40-8 (b) The prohibition under Subsection (a) applies during the
40-9 period of the counsellor's service and until the second anniversary
40-10 of the date the counsellor ceases to serve as counsellor.
40-11 (c) This section does not prohibit a person from otherwise
40-12 engaging in the private practice of law after the person ceases to
40-13 serve as counsellor. (V.A.C.S. Art. 1446c-0, Sec. 1.052.)
40-14 (Sections 13.025-13.040 reserved for expansion)
40-15 SUBCHAPTER C. OFFICE PERSONNEL
40-16 Sec. 13.041. PERSONNEL. (a) The counsellor may employ
40-17 lawyers, economists, engineers, consultants, statisticians,
40-18 accountants, clerical staff, and other employees as the counsellor
40-19 considers necessary to carry out this chapter.
40-20 (b) An employee receives compensation as prescribed by the
40-21 legislature from the assessment imposed by Subchapter A, Chapter
40-22 16. (V.A.C.S. Art. 1446c-0, Sec. 1.053(a).)
40-23 Sec. 13.042. RELATIONSHIP WITH TRADE ASSOCIATION. A person
40-24 may not serve as counsellor or be an employee of the office who is
40-25 exempt from the state's position classification plan or is
41-1 compensated at or above the amount prescribed by the General
41-2 Appropriations Act for step 1, salary group 17, of the position
41-3 classification salary schedule if the person is:
41-4 (1) an officer, employee, or paid consultant of a
41-5 trade association; or
41-6 (2) the spouse of an officer, manager, or paid
41-7 consultant of a trade association. (V.A.C.S. Art. 1446c-0, Sec.
41-8 1.051(f).)
41-9 Sec. 13.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION.
41-10 (a) The counsellor or an employee of the office may not:
41-11 (1) be employed by a public utility that was in the
41-12 scope of the counsellor's or employee's official responsibility
41-13 while the counsellor or employee was associated with the office; or
41-14 (2) represent a person before the commission or a
41-15 court in a matter:
41-16 (A) in which the counsellor or employee was
41-17 personally involved while associated with the office; or
41-18 (B) that was within the counsellor's or
41-19 employee's official responsibility while the counsellor or employee
41-20 was associated with the office.
41-21 (b) The prohibition of Subsection (a)(1) applies until the:
41-22 (1) second anniversary of the date the counsellor
41-23 ceases to serve as a counsellor; and
41-24 (2) first anniversary of the date the employee's
41-25 employment with the office ceases.
42-1 (c) The prohibition of Subsection (a)(2) applies while a
42-2 counsellor or employee of the office is associated with the office
42-3 and at any time after. (V.A.C.S. Art. 1446c-0, Sec. 1.0512.)
42-4 Sec. 13.044. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS;
42-5 MERIT PAY. (a) The counsellor or the counsellor's designee shall
42-6 develop an intra-agency career ladder program that addresses
42-7 opportunities for mobility and advancement for office employees.
42-8 The program shall require intra-agency postings of each position
42-9 concurrently with any public posting.
42-10 (b) The counsellor or the counsellor's designee shall
42-11 develop a system of annual performance evaluations that are based
42-12 on documented employee performance. Merit pay for office employees
42-13 must be based on the system established under this subsection.
42-14 (V.A.C.S. Art. 1446c-0, Sec. 1.053(b).)
42-15 Sec. 13.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
42-16 (a) The counsellor or the counsellor's designee shall prepare and
42-17 maintain a written policy statement to ensure implementation of a
42-18 program of equal employment opportunity under which all personnel
42-19 transactions are made without regard to race, color, disability,
42-20 sex, religion, age, or national origin.
42-21 (b) The policy statement under Subsection (a) must include:
42-22 (1) personnel policies, including policies related to
42-23 recruitment, evaluation, selection, appointment, training, and
42-24 promotion of personnel, that are in compliance with the
42-25 requirements of Chapter 21, Labor Code;
43-1 (2) a comprehensive analysis of the office workforce
43-2 that meets federal and state guidelines;
43-3 (3) procedures by which a determination can be made
43-4 about the extent of underuse in the office workforce of all persons
43-5 for whom federal or state guidelines encourage a more equitable
43-6 balance; and
43-7 (4) reasonable methods to appropriately address the
43-8 underuse.
43-9 (c) A policy statement prepared under Subsection (b) must:
43-10 (1) cover an annual period;
43-11 (2) be updated at least annually;
43-12 (3) be reviewed by the Commission on Human Rights for
43-13 compliance with Subsection (b)(1); and
43-14 (4) be filed with the governor's office.
43-15 (d) The governor's office shall deliver a biennial report to
43-16 the legislature based on the information received under Subsection
43-17 (c). The report may be made separately or as a part of other
43-18 biennial reports to the legislature. (V.A.C.S. Art. 1446c-0, Secs.
43-19 1.053(c), (d).)
43-20 Sec. 13.046. QUALIFICATIONS AND STANDARDS OF CONDUCT
43-21 INFORMATION. The office shall provide to office employees as often
43-22 as necessary information regarding their:
43-23 (1) qualifications for employment under this title;
43-24 and
43-25 (2) responsibilities under applicable laws relating to
44-1 standards of conduct for employees. (V.A.C.S. Art. 1446c-0, Sec.
44-2 1.053(e).)
44-3 (Sections 13.047-13.060 reserved for expansion)
44-4 SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS
44-5 Sec. 13.061. PUBLIC INTEREST INFORMATION. The office shall
44-6 prepare information of public interest describing the functions of
44-7 the office. The office shall make the information available to the
44-8 public and appropriate state agencies. (V.A.C.S. Art. 1446c-0,
44-9 Sec. 1.0513(b).)
44-10 Sec. 13.062. PUBLIC PARTICIPATION. (a) The office shall
44-11 comply with federal and state laws related to program and facility
44-12 accessibility.
44-13 (b) The office shall prepare and maintain a written plan
44-14 that describes how a person who does not speak English may be
44-15 provided reasonable access to the office's programs and services.
44-16 (V.A.C.S. Art. 1446c-0, Sec. 1.0513(c).)
44-17 Sec. 13.063. ANNUAL REPORT. The office shall prepare
44-18 annually a complete and detailed written report accounting for all
44-19 funds received and disbursed by the office during the preceding
44-20 fiscal year. The annual report must meet the reporting
44-21 requirements applicable to financial reporting in the General
44-22 Appropriations Act. (V.A.C.S. Art. 1446c-0, Sec. 1.0513(a).)
45-1 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND
45-2 OTHER REGULATORY AUTHORITIES
45-3 SUBCHAPTER A. GENERAL POWERS OF COMMISSION
45-4 Sec. 14.001. POWER TO REGULATE AND SUPERVISE
45-5 Sec. 14.002. RULES
45-6 Sec. 14.003. COMMISSION POWERS RELATING TO REPORTS
45-7 Sec. 14.004. REPORT OF SUBSTANTIAL INTEREST
45-8 Sec. 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION
45-9 OF SERVICES TO ELDERLY AND DISABLED
45-10 Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF
45-11 EMPLOYMENT; PRESUMPTION OF REASONABLENESS
45-12 Sec. 14.007. ASSISTANCE TO MUNICIPALITY
45-13 Sec. 14.008. MUNICIPAL FRANCHISES
45-14 (Sections 14.009-14.050 reserved for expansion)
45-15 SUBCHAPTER B. PRACTICE AND PROCEDURE
45-16 Sec. 14.051. PROCEDURAL POWERS
45-17 Sec. 14.052. RULES
45-18 Sec. 14.053. POWERS AND DUTIES OF STATE OFFICE OF
45-19 ADMINISTRATIVE HEARINGS
45-20 Sec. 14.054. SETTLEMENTS
45-21 Sec. 14.055. RECORD OF PROCEEDINGS
45-22 Sec. 14.056. RIGHT TO BE HEARD
45-23 Sec. 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND EXHIBITS;
45-24 PUBLIC RECORDS
45-25 (Sections 14.058-14.100 reserved for expansion)
46-1 SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS
46-2 Sec. 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION
46-3 CONSIDERATION
46-4 Sec. 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC
46-5 UTILITY
46-6 Sec. 14.103. REPORT OF LOAN TO STOCKHOLDERS
46-7 (Sections 14.104-14.150 reserved for expansion)
46-8 SUBCHAPTER D. RECORDS
46-9 Sec. 14.151. RECORDS OF PUBLIC UTILITY
46-10 Sec. 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS STATE
46-11 Sec. 14.153. COMMUNICATIONS WITH REGULATORY AUTHORITY
46-12 Sec. 14.154. JURISDICTION OVER AFFILIATE
46-13 (Sections 14.155-14.200 reserved for expansion)
46-14 SUBCHAPTER E. AUDITS AND INSPECTIONS
46-15 Sec. 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS
46-16 Sec. 14.202. MANAGEMENT AUDITS BY COMMISSION
46-17 Sec. 14.203. AUDIT OF ACCOUNTS
46-18 Sec. 14.204. INSPECTION
46-19 Sec. 14.205. EXAMINATIONS UNDER OATH
46-20 Sec. 14.206. ENTERING PREMISES OF PUBLIC UTILITY
46-21 Sec. 14.207. PRODUCTION OF OUT-OF-STATE RECORDS
46-22 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND
46-23 OTHER REGULATORY AUTHORITIES
46-24 SUBCHAPTER A. GENERAL POWERS OF COMMISSION
46-25 Sec. 14.001. POWER TO REGULATE AND SUPERVISE. The
47-1 commission has the general power to regulate and supervise the
47-2 business of each public utility within its jurisdiction and to do
47-3 anything specifically designated or implied by this title that is
47-4 necessary and convenient to the exercise of that power and
47-5 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 1.101(a).)
47-6 Sec. 14.002. RULES. The commission shall adopt and enforce
47-7 rules reasonably required in the exercise of its powers and
47-8 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 1.101(b) (part).)
47-9 Sec. 14.003. COMMISSION POWERS RELATING TO REPORTS. The
47-10 commission may:
47-11 (1) require a public utility to report to the
47-12 commission information relating to:
47-13 (A) the utility; and
47-14 (B) a transaction between the utility and an
47-15 affiliate inside or outside this state, to the extent that the
47-16 transaction is subject to the commission's jurisdiction;
47-17 (2) establish the form for a report;
47-18 (3) determine the time for a report and the frequency
47-19 with which the report is to be made;
47-20 (4) require that a report be made under oath;
47-21 (5) require the filing with the commission of a copy
47-22 of:
47-23 (A) a contract or arrangement between a public
47-24 utility and an affiliate;
47-25 (B) a report filed with a federal agency or a
48-1 governmental agency or body of another state; and
48-2 (C) an annual report that shows each payment of
48-3 compensation, other than salary or wages subject to federal income
48-4 tax withholding:
48-5 (i) to residents of this state;
48-6 (ii) with respect to legal,
48-7 administrative, or legislative matters in this state; or
48-8 (iii) for representation before the
48-9 legislature of this state or any governmental agency or body; and
48-10 (6) require that a contract or arrangement described
48-11 by Subdivision (5)(A) that is not in writing be reduced to writing
48-12 and filed with the commission. (V.A.C.S. Art. 1446c-0, Sec.
48-13 1.202(a).)
48-14 Sec. 14.004. REPORT OF SUBSTANTIAL INTEREST. The commission
48-15 may require disclosure of the identity and respective interests of
48-16 each owner of at least one percent of the voting securities of a
48-17 public utility or its affiliate. (V.A.C.S. Art. 1446c-0, Sec.
48-18 1.272.)
48-19 Sec. 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION
48-20 OF SERVICES TO ELDERLY AND DISABLED. The commission may establish
48-21 criteria and guidelines with the utility industry relating to
48-22 industry procedures used in terminating services to the elderly and
48-23 disabled. (V.A.C.S. Art. 1446c-0, Sec. 1.405.)
48-24 Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF
48-25 EMPLOYMENT; PRESUMPTION OF REASONABLENESS. The commission may not
49-1 interfere with employee wages and benefits, working conditions, or
49-2 other terms or conditions of employment that are the product of a
49-3 collective bargaining agreement recognized under federal law. An
49-4 employee wage rate or benefit that is the product of the collective
49-5 bargaining is presumed to be reasonable. (V.A.C.S. Art. 1446c-0,
49-6 Sec. 1.206.)
49-7 Sec. 14.007. ASSISTANCE TO MUNICIPALITY. On request by the
49-8 governing body of a municipality, the commission may provide
49-9 commission employees as necessary to advise and consult with the
49-10 municipality on a pending matter. (V.A.C.S. Art. 1446c-0, Sec.
49-11 1.202(b).)
49-12 Sec. 14.008. MUNICIPAL FRANCHISES. (a) This title does not
49-13 restrict the rights and powers of a municipality to grant or refuse
49-14 a franchise to use the streets and alleys in the municipality or to
49-15 make a statutory charge for that use.
49-16 (b) A franchise agreement may not limit or interfere with a
49-17 power conferred on the commission by this title. (V.A.C.S.
49-18 Art. 1446c-0, Sec. 1.103.)
49-19 (Sections 14.009-14.050 reserved for expansion)
49-20 SUBCHAPTER B. PRACTICE AND PROCEDURE
49-21 Sec. 14.051. PROCEDURAL POWERS. The commission may:
49-22 (1) call and hold a hearing;
49-23 (2) administer an oath;
49-24 (3) receive evidence at a hearing;
49-25 (4) issue a subpoena to compel the attendance of a
50-1 witness or the production of a document; and
50-2 (5) make findings of fact and decisions to administer
50-3 this title or a rule, order, or other action of the commission.
50-4 (V.A.C.S. Art. 1446c-0, Sec. 1.101(d).)
50-5 Sec. 14.052. RULES. (a) The commission shall adopt and
50-6 enforce rules governing practice and procedure before the
50-7 commission and, as applicable, practice and procedure before the
50-8 utility division of the State Office of Administrative Hearings.
50-9 (b) The commission shall adopt rules that authorize an
50-10 administrative law judge to:
50-11 (1) limit the amount of time that a party may have to
50-12 present its case;
50-13 (2) limit the number of requests for information that
50-14 a party may make in a contested case;
50-15 (3) require a party to a contested case to identify
50-16 contested issues and facts before the hearing begins;
50-17 (4) limit cross-examination to only those issues and
50-18 facts identified before the hearing and to any new issues that may
50-19 arise as a result of the discovery process; and
50-20 (5) group parties, other than the office, that have
50-21 the same position on an issue to facilitate cross-examination on
50-22 that issue.
50-23 (c) A rule adopted under Subsection (b)(5) must permit each
50-24 party in a group to present that party's witnesses for
50-25 cross-examination during the hearing.
51-1 (d) A rule adopted under this section must ensure that each
51-2 party receives due process. (V.A.C.S. Art. 1446c-0, Secs. 1.101(b)
51-3 (part), (c).)
51-4 Sec. 14.053. POWERS AND DUTIES OF STATE OFFICE OF
51-5 ADMINISTRATIVE HEARINGS. (a) The utility division of the State
51-6 Office of Administrative Hearings shall conduct each hearing in a
51-7 contested case that is not conducted by one or more commissioners.
51-8 (b) The commission may delegate to the utility division of
51-9 the State Office of Administrative Hearings the authority to make a
51-10 final decision and to issue findings of fact, conclusions of law,
51-11 and other necessary orders in a proceeding in which there is not a
51-12 contested issue of fact or law.
51-13 (c) The commission by rule shall define the procedures by
51-14 which it delegates final decision-making authority under Subsection
51-15 (b).
51-16 (d) For review purposes an administrative law judge's final
51-17 decision under Subsection (b) has the same effect as a final
51-18 decision of the commission unless a commissioner requests formal
51-19 review of the decision. (V.A.C.S. Art. 1446c-0, Sec. 1.101(e).)
51-20 Sec. 14.054. SETTLEMENTS. (a) The commission by rule shall
51-21 adopt procedures governing the use of settlements to resolve
51-22 contested cases.
51-23 (b) Rules adopted under this section must ensure that:
51-24 (1) each party retains the right to:
51-25 (A) a full hearing before the commission on
52-1 issues that remain in dispute; and
52-2 (B) judicial review of issues that remain in
52-3 dispute;
52-4 (2) an issue of fact raised by a nonsettling party may
52-5 not be waived by a settlement or stipulation of the other parties;
52-6 and
52-7 (3) a nonsettling party may use an issue of fact
52-8 raised by that party as the basis for judicial review. (V.A.C.S.
52-9 Art. 1446c-0, Sec. 1.104.)
52-10 Sec. 14.055. RECORD OF PROCEEDINGS. The regulatory
52-11 authority shall keep a record of each proceeding before the
52-12 authority. (V.A.C.S. Art. 1446c-0, Sec. 1.402 (part).)
52-13 Sec. 14.056. RIGHT TO BE HEARD. Each party to a proceeding
52-14 before a regulatory authority is entitled to be heard by attorney
52-15 or in person. (V.A.C.S. Art. 1446c-0, Sec. 1.402 (part).)
52-16 Sec. 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND EXHIBITS;
52-17 PUBLIC RECORDS. (a) A commission order must be in writing and
52-18 contain detailed findings of the facts on which it is passed.
52-19 (b) The commission shall retain a copy of the transcript and
52-20 the exhibits in any matter in which the commission issues an order.
52-21 (c) Subject to Chapter 552, Government Code, each file
52-22 pertaining to a matter that was at any time pending before the
52-23 commission or to a record, report, or inspection required by
52-24 Section 14.003, 14.151, 14.152, 14.153, 14.201, or 14.203-14.207 or
52-25 by Subtitle B or C is public information. (V.A.C.S. Art. 1446c-0,
53-1 Sec. 1.034.)
53-2 (Sections 14.058-14.100 reserved for expansion)
53-3 SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS
53-4 Sec. 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION
53-5 CONSIDERATION. (a) Unless a public utility reports the
53-6 transaction to the commission within a reasonable time, the public
53-7 utility may not:
53-8 (1) sell, acquire, or lease a plant as an operating
53-9 unit or system in this state for a total consideration of more than
53-10 $100,000; or
53-11 (2) merge or consolidate with another public utility
53-12 operating in this state.
53-13 (b) A public utility shall report to the commission within a
53-14 reasonable time each transaction that involves the sale of at least
53-15 50 percent of the stock of the utility. On the filing of a report
53-16 with the commission, the commission shall investigate the
53-17 transaction, with or without a public hearing, to determine whether
53-18 the action is consistent with the public interest. In reaching its
53-19 determination, the commission shall consider:
53-20 (1) the reasonable value of the property, facilities,
53-21 or securities to be acquired, disposed of, merged, transferred, or
53-22 consolidated;
53-23 (2) whether the transaction will:
53-24 (A) adversely affect the health or safety of
53-25 customers or employees;
54-1 (B) result in the transfer of jobs of citizens
54-2 of this state to workers domiciled outside this state; or
54-3 (C) result in the decline of service;
54-4 (3) whether the public utility will receive
54-5 consideration equal to the reasonable value of the assets when it
54-6 sells, leases, or transfers assets; and
54-7 (4) whether the transaction is consistent with the
54-8 public interest.
54-9 (c) If the commission finds that a transaction is not in the
54-10 public interest, the commission shall take the effect of the
54-11 transaction into consideration in ratemaking proceedings and
54-12 disallow the effect of the transaction if the transaction will
54-13 unreasonably affect rates or service.
54-14 (d) This section does not apply to:
54-15 (1) the purchase of a unit of property for
54-16 replacement; or
54-17 (2) an addition to the facilities of a public utility
54-18 by construction. (V.A.C.S. Art. 1446c-0, Sec. 1.251.)
54-19 Sec. 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC
54-20 UTILITY. A public utility may not purchase voting stock in another
54-21 public utility doing business in this state unless the utility
54-22 reports the purchase to the commission. (V.A.C.S. Art. 1446c-0,
54-23 Sec. 1.252.)
54-24 Sec. 14.103. REPORT OF LOAN TO STOCKHOLDERS. A public
54-25 utility may not loan money, stocks, bonds, notes, or other evidence
55-1 of indebtedness to a person who directly or indirectly owns or
55-2 holds any stock of the public utility unless the public utility
55-3 reports the transaction to the commission within a reasonable time.
55-4 (V.A.C.S. Art. 1446c-0, Sec. 1.253.)
55-5 (Sections 14.104-14.150 reserved for expansion)
55-6 SUBCHAPTER D. RECORDS
55-7 Sec. 14.151. RECORDS OF PUBLIC UTILITY. (a) Each public
55-8 utility shall keep and provide to the regulatory authority, in the
55-9 manner and form prescribed by the commission, uniform accounts of
55-10 all business transacted by the utility.
55-11 (b) The commission may prescribe the form of books,
55-12 accounts, records, and memoranda to be kept by a public utility,
55-13 including:
55-14 (1) the books, accounts, records, and memoranda of:
55-15 (A) the provision of and capacity for service;
55-16 and
55-17 (B) the receipt and expenditure of money; and
55-18 (2) any other form, record, and memorandum that the
55-19 commission considers necessary to carry out this title.
55-20 (c) For a public utility subject to regulation by a federal
55-21 regulatory agency, compliance with the system of accounts
55-22 prescribed for the particular class of utilities by the federal
55-23 agency may be considered sufficient compliance with the system
55-24 prescribed by the commission. The commission may prescribe the
55-25 form of books, accounts, records, and memoranda covering
56-1 information in addition to that required by the federal agency.
56-2 The system of accounts and the form of books, accounts, records,
56-3 and memoranda prescribed by the commission for a public utility or
56-4 class of utilities may not be inconsistent with the systems and
56-5 forms established by a federal agency for that public utility or
56-6 class of utilities.
56-7 (d) Each public utility shall:
56-8 (1) keep and provide its books, accounts, records, and
56-9 memoranda accurately in the manner and form prescribed by the
56-10 commission; and
56-11 (2) comply with the directions of the regulatory
56-12 authority relating to the books, accounts, records, and memoranda.
56-13 (e) In this section, "public utility" includes a municipally
56-14 owned utility. (V.A.C.S. Art. 1446c-0, Secs. 1.201(a), (b), (c),
56-15 (d) (part), (e).)
56-16 Sec. 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS
56-17 STATE. (a) Each public utility shall maintain an office in this
56-18 state in a county in which some part of the utility's property is
56-19 located. The utility shall keep in this office all books,
56-20 accounts, records, and memoranda required by the commission to be
56-21 kept in this state.
56-22 (b) A book, account, record, or memorandum required by the
56-23 regulatory authority to be kept in this state may not be removed
56-24 from this state, except as:
56-25 (1) provided by Section 52.255; and
57-1 (2) prescribed by the commission. (V.A.C.S.
57-2 Art. 1446c-0, Sec. 1.204.)
57-3 Sec. 14.153. COMMUNICATIONS WITH REGULATORY AUTHORITY.
57-4 (a) The regulatory authority shall adopt rules governing
57-5 communications with the regulatory authority or a member or
57-6 employee of the regulatory authority by:
57-7 (1) a public utility;
57-8 (2) an affiliate; or
57-9 (3) a representative of a public utility or affiliate.
57-10 (b) A record of a communication must contain:
57-11 (1) the name of the person contacting the regulatory
57-12 authority or member or employee of the regulatory authority;
57-13 (2) the name of the business entity represented;
57-14 (3) a brief description of the subject matter of the
57-15 communication; and
57-16 (4) the action, if any, requested by the public
57-17 utility, affiliate, or representative.
57-18 (c) Records compiled under Subsection (b) shall be available
57-19 to the public monthly. (V.A.C.S. Art. 1446c-0, Sec. 1.205.)
57-20 Sec. 14.154. JURISDICTION OVER AFFILIATE. (a) The
57-21 commission has jurisdiction over an affiliate that has a
57-22 transaction with a public utility under the commission's
57-23 jurisdiction to the extent of access to a record of the affiliate
57-24 relating to the transaction, including a record of joint or general
57-25 expenses, any portion of which may be applicable to the
58-1 transaction.
58-2 (b) A record obtained by the commission relating to sale of
58-3 electrical energy at wholesale by an affiliate to the public
58-4 utility is confidential and is not subject to disclosure under
58-5 Chapter 552, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.271.)
58-6 (Sections 14.155-14.200 reserved for expansion)
58-7 SUBCHAPTER E. AUDITS AND INSPECTIONS
58-8 Sec. 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A
58-9 regulatory authority may inquire into the management and affairs of
58-10 each public utility and shall keep itself informed as to the manner
58-11 and method in which each public utility is managed and its affairs
58-12 are conducted. (V.A.C.S. Art. 1446c-0, Sec. 1.203(c).)
58-13 Sec. 14.202. MANAGEMENT AUDITS BY COMMISSION. (a) The
58-14 commission shall:
58-15 (1) inquire into the management of the business of
58-16 each public utility under its jurisdiction;
58-17 (2) keep itself informed as to the manner and method
58-18 in which the utility's business is managed; and
58-19 (3) obtain from the public utility any information
58-20 necessary to enable the commission to perform a management audit.
58-21 (b) The commission may audit a utility under its
58-22 jurisdiction as frequently as needed. Six months after an audit,
58-23 the utility shall report to the commission on the status of the
58-24 implementation of the recommendations of the audit and shall file
58-25 subsequent reports at times the commission considers appropriate.
59-1 (V.A.C.S. Art. 1446c-0, Sec. 1.102.)
59-2 Sec. 14.203. AUDIT OF ACCOUNTS. A regulatory authority may
59-3 require the examination and audit of the accounts of a public or
59-4 municipally owned utility. (V.A.C.S. Art. 1446c-0, Secs. 1.201(d)
59-5 (part), (e).)
59-6 Sec. 14.204. INSPECTION. (a) A regulatory authority and,
59-7 to the extent authorized by the regulatory authority, its counsel,
59-8 agent, or employee, may:
59-9 (1) inspect and obtain copies of the papers, books,
59-10 accounts, documents, and other business records of a public utility
59-11 within its jurisdiction; and
59-12 (2) inspect the plant, equipment, and other property
59-13 of a public utility within its jurisdiction.
59-14 (b) An action under this section must be conducted at a
59-15 reasonable time for a reasonable purpose. (V.A.C.S. Art. 1446c-0,
59-16 Sec. 1.203(a) (part).)
59-17 Sec. 14.205. EXAMINATIONS UNDER OATH. In connection with an
59-18 action taken under Section 14.204, the regulatory authority may:
59-19 (1) examine under oath an officer, agent, or employee
59-20 of a public utility; or
59-21 (2) authorize the person conducting the action to make
59-22 the examination under oath. (V.A.C.S. Art. 1446c-0, Sec. 1.203(a)
59-23 (part).)
59-24 Sec. 14.206. ENTERING PREMISES OF PUBLIC UTILITY. (a) A
59-25 member, agent, or employee of a regulatory authority may enter the
60-1 premises occupied by a public utility to conduct an inspection,
60-2 examination, or test or to exercise any other authority provided by
60-3 this title.
60-4 (b) A member, agent, or employee of the regulatory authority
60-5 may act under this section only during reasonable hours and after
60-6 reasonable notice to the public utility.
60-7 (c) A public utility is entitled to be represented when an
60-8 inspection, examination, or test is conducted on its premises. The
60-9 utility is entitled to a reasonable time to secure a representative
60-10 before the inspection, examination, or test begins. (V.A.C.S.
60-11 Art. 1446c-0, Secs. 1.203(b), 2.156(a) (part).)
60-12 Sec. 14.207. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A
60-13 regulatory authority may require, by order or subpoena served on a
60-14 public utility, the production, at the time and place in this state
60-15 that the regulatory authority designates, of any books, accounts,
60-16 papers, or records kept by that public utility outside this state
60-17 or, if ordered by the commission, verified copies of the books,
60-18 accounts, papers, or records.
60-19 (b) A public utility that fails or refuses to comply with an
60-20 order or subpoena under this section violates this title.
60-21 (V.A.C.S. Art. 1446c-0, Sec. 1.203(a) (part).)
60-22 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES
60-23 SUBCHAPTER A. JUDICIAL REVIEW
60-24 Sec. 15.001. RIGHT TO JUDICIAL REVIEW
60-25 Sec. 15.002. COMMISSION AS DEFENDANT
61-1 Sec. 15.003. COSTS AND ATTORNEY'S FEES
61-2 Sec. 15.004. JUDICIAL STAY OR SUSPENSION
61-3 (Sections 15.005-15.020 reserved for expansion)
61-4 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
61-5 Sec. 15.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE
61-6 Sec. 15.022. CONTEMPT
61-7 Sec. 15.023. ADMINISTRATIVE PENALTY
61-8 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE
61-9 Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY
61-10 Sec. 15.026. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY
61-11 Sec. 15.027. ADMINISTRATIVE PENALTY COLLECTION; GENERAL
61-12 PROVISIONS
61-13 Sec. 15.028. CIVIL PENALTY AGAINST PUBLIC UTILITY, PAY
61-14 TELEPHONE SERVICE PROVIDER, OR AFFILIATE
61-15 Sec. 15.029. CIVIL PENALTY FOR VIOLATING SECTION 12.055
61-16 OR 12.154
61-17 Sec. 15.030. OFFENSE
61-18 Sec. 15.031. PLACE FOR SUIT
61-19 Sec. 15.032. PENALTIES CUMULATIVE
61-20 Sec. 15.033. DISPOSITION OF FINES AND PENALTIES
61-21 (Sections 15.034-15.050 reserved for expansion)
61-22 SUBCHAPTER C. COMPLAINTS
61-23 Sec. 15.051. COMPLAINT BY AFFECTED PERSON
61-24 Sec. 15.052. COMPLAINT REGARDING RECREATIONAL VEHICLE
61-25 PARK OWNER
62-1 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES
62-2 SUBCHAPTER A. JUDICIAL REVIEW
62-3 Sec. 15.001. RIGHT TO JUDICIAL REVIEW. Any party to a
62-4 proceeding before the commission is entitled to judicial review
62-5 under the substantial evidence rule. (V.A.C.S. Art. 1446c-0, Sec.
62-6 1.301 (part).)
62-7 Sec. 15.002. COMMISSION AS DEFENDANT. The commission must
62-8 be a defendant in a proceeding for judicial review. (V.A.C.S.
62-9 Art. 1446c-0, Sec. 1.301 (part).)
62-10 Sec. 15.003. COSTS AND ATTORNEY'S FEES. (a) A party
62-11 represented by counsel who alleges that existing rates are
62-12 excessive or that rates prescribed by the commission are excessive
62-13 and who prevails in a proceeding for review of a commission order
62-14 or decision is entitled in the same action to recover against the
62-15 regulation fund reasonable fees for attorneys and expert witnesses
62-16 and other costs for the party's efforts before the commission and
62-17 the court.
62-18 (b) The court shall set the amount of attorney's fees
62-19 awarded under Subsection (a).
62-20 (c) If a court finds that an action under Section 15.001 or
62-21 this section was groundless and brought in bad faith and for the
62-22 purpose of harassment, the court may award reasonable attorney's
62-23 fees to the defendant public utility. (V.A.C.S. Art. 1446c-0, Sec.
62-24 1.302.)
62-25 Sec. 15.004. JUDICIAL STAY OR SUSPENSION. While an appeal
63-1 of an order, ruling, or decision of a regulatory authority is
63-2 pending, the district court, court of appeals, or supreme court, as
63-3 appropriate, may stay or suspend all or part of the operation of
63-4 the order, ruling, or decision. In granting or refusing a stay or
63-5 suspension, the court shall act in accordance with the practice of
63-6 a court exercising equity jurisdiction. (V.A.C.S. Art. 1446c-0,
63-7 Sec. 1.403.)
63-8 (Sections 15.005-15.020 reserved for expansion)
63-9 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
63-10 Sec. 15.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE.
63-11 (a) The attorney general, on the request of the commission, shall
63-12 apply in the name of the commission for a court order under
63-13 Subsection (b) if the commission determines that a public utility
63-14 or other person is:
63-15 (1) engaging in or about to engage in an act that
63-16 violates this title or an order or rule of the commission entered
63-17 or adopted under this title; or
63-18 (2) failing to comply with the requirements of this
63-19 title or a rule or order of the commission.
63-20 (b) A court, in an action under this section, may:
63-21 (1) prohibit the commencement or continuation of an
63-22 act that violates this title or an order or rule of the commission
63-23 entered or adopted under this title; or
63-24 (2) require compliance with a provision of this title
63-25 or an order or rule of the commission.
64-1 (c) The remedy under this section is in addition to any
64-2 other remedy provided under this title. (V.A.C.S. Art. 1446c-0,
64-3 Sec. 1.321.)
64-4 Sec. 15.022. CONTEMPT. The commission may file a court
64-5 action for contempt against a person who:
64-6 (1) fails to comply with a lawful order of the
64-7 commission;
64-8 (2) fails to comply with a subpoena or subpoena duces
64-9 tecum; or
64-10 (3) refuses to testify about a matter on which the
64-11 person may be lawfully interrogated. (V.A.C.S. Art. 1446c-0, Sec.
64-12 1.326.)
64-13 Sec. 15.023. ADMINISTRATIVE PENALTY. (a) The commission
64-14 may impose an administrative penalty against a person regulated
64-15 under this title who violates this title or a rule or order adopted
64-16 under this title.
64-17 (b) The penalty for a violation may be in an amount not to
64-18 exceed $5,000. Each day a violation continues or occurs is a
64-19 separate violation for purposes of imposing a penalty.
64-20 (c) The amount of an administrative penalty shall be based
64-21 on:
64-22 (1) the seriousness of the violation, including:
64-23 (A) the nature, circumstances, extent, and
64-24 gravity of a prohibited act; and
64-25 (B) the hazard or potential hazard created to
65-1 the health, safety, or economic welfare of the public;
65-2 (2) the economic harm to property or the environment
65-3 caused by the violation;
65-4 (3) the history of previous violations;
65-5 (4) the amount necessary to deter future violations;
65-6 (5) efforts to correct the violation; and
65-7 (6) any other matter that justice may require.
65-8 (V.A.C.S. Art. 1446c-0, Secs. 1.3215(a), (b), (c).)
65-9 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
65-10 (a) If the executive director determines that a violation has
65-11 occurred, the executive director may issue to the commission a
65-12 report that states the facts on which the determination is based
65-13 and the executive director's recommendation on the imposition of an
65-14 administrative penalty, including a recommendation on the amount of
65-15 the penalty.
65-16 (b) Not later than the 14th day after the date the report is
65-17 issued, the executive director shall give written notice of the
65-18 report to the person against whom the penalty may be assessed. The
65-19 notice may be given by certified mail. The notice must:
65-20 (1) include a brief summary of the alleged violation;
65-21 (2) state the amount of the recommended penalty; and
65-22 (3) inform the person that the person has a right to a
65-23 hearing on the occurrence of the violation, the amount of the
65-24 penalty, or both the occurrence of the violation and the amount of
65-25 the penalty.
66-1 (c) A penalty may not be assessed under this section if the
66-2 person against whom the penalty may be assessed remedies the
66-3 violation before the 31st day after the date the person receives
66-4 the notice under Subsection (b). A person who claims to have
66-5 remedied an alleged violation has the burden of proving to the
66-6 commission that the alleged violation was remedied and was
66-7 accidental or inadvertent.
66-8 (d) Not later than the 20th day after the date the person
66-9 receives the notice, the person may accept the determination and
66-10 recommended penalty of the executive director in writing or may
66-11 make a written request for a hearing on the occurrence of the
66-12 violation, the amount of the penalty, or both the occurrence of the
66-13 violation and the amount of the penalty.
66-14 (e) If the person accepts the executive director's
66-15 determination and recommended penalty, the commission by order
66-16 shall approve the determination and impose the recommended penalty.
66-17 (f) If the person requests a hearing or fails to timely
66-18 respond to the notice, the executive director shall set a hearing
66-19 and give notice of the hearing to the person. The hearing shall be
66-20 held by an administrative law judge of the State Office of
66-21 Administrative Hearings. The administrative law judge shall make
66-22 findings of fact and conclusions of law and promptly issue to the
66-23 commission a proposal for a decision about the occurrence of the
66-24 violation and the amount of a proposed penalty. Based on the
66-25 findings of fact, conclusions of law, and proposal for a decision,
67-1 the commission by order may find that a violation has occurred and
67-2 impose a penalty or may find that no violation occurred.
67-3 (g) The notice of the commission's order shall be given to
67-4 the person as provided by Chapter 2001, Government Code, and must
67-5 include a statement of the right of the person to judicial review
67-6 of the order. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(d), (e), (f),
67-7 (g), (h), (i).)
67-8 Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY. (a) Not
67-9 later than the 30th day after the date the commission's order
67-10 imposing an administrative penalty is final as provided by Section
67-11 2001.144, Government Code, the person shall:
67-12 (1) pay the amount of the penalty;
67-13 (2) pay the amount of the penalty and file a petition
67-14 for judicial review contesting:
67-15 (A) the occurrence of the violation;
67-16 (B) the amount of the penalty; or
67-17 (C) both the occurrence of the violation and the
67-18 amount of the penalty; or
67-19 (3) without paying the amount of the penalty, file a
67-20 petition for judicial review contesting:
67-21 (A) the occurrence of the violation;
67-22 (B) the amount of the penalty; or
67-23 (C) both the occurrence of the violation and the
67-24 amount of the penalty.
67-25 (b) Not later than the 30th day after the date the
68-1 commission's order is final as provided by Section 2001.144,
68-2 Government Code, a person who acts under Subsection (a)(3) may:
68-3 (1) stay enforcement of the penalty by:
68-4 (A) paying the amount of the penalty to the
68-5 court for placement in an escrow account; or
68-6 (B) giving to the court a supersedeas bond that
68-7 is approved by the court for the amount of the penalty and that is
68-8 effective until all judicial review of the commission's order is
68-9 final; or
68-10 (2) request the court to stay enforcement of the
68-11 penalty by:
68-12 (A) filing with the court a sworn affidavit of
68-13 the person stating that the person is financially unable to pay the
68-14 amount of the penalty and is financially unable to give the
68-15 supersedeas bond; and
68-16 (B) giving a copy of the affidavit to the
68-17 executive director by certified mail.
68-18 (c) The executive director, on receipt of a copy of an
68-19 affidavit under Subsection (b)(2), may file with the court, not
68-20 later than the fifth day after the date the copy is received, a
68-21 contest to the affidavit. The court shall hold a hearing on the
68-22 facts alleged in the affidavit as soon as practicable and shall
68-23 stay the enforcement of the penalty on finding that the alleged
68-24 facts are true. The person who files an affidavit has the burden
68-25 of proving that the person is financially unable to pay the amount
69-1 of the penalty and to give a supersedeas bond.
69-2 (d) If the person does not pay the amount of the penalty and
69-3 the enforcement of the penalty is not stayed, the executive
69-4 director may refer the matter to the attorney general for
69-5 collection of the amount of the penalty. (V.A.C.S. Art. 1446c-0,
69-6 Secs. 1.3215(j), (k), (l), (m).)
69-7 Sec. 15.026. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY.
69-8 (a) Judicial review of a commission order imposing an
69-9 administrative penalty is:
69-10 (1) instituted by filing a petition as provided by
69-11 Subchapter G, Chapter 2001, Government Code; and
69-12 (2) under the substantial evidence rule.
69-13 (b) If the court sustains the occurrence of the violation,
69-14 the court may uphold or reduce the amount of the penalty and order
69-15 the person to pay the full or reduced amount of the penalty. If
69-16 the court does not sustain the occurrence of the violation, the
69-17 court shall order that no penalty is owed.
69-18 (c) When the judgment of the court becomes final, the court
69-19 shall proceed under this subsection. If the person paid the amount
69-20 of the penalty and that amount is reduced or is not upheld by the
69-21 court, the court shall order that the appropriate amount plus
69-22 accrued interest be remitted to the person. The rate of the
69-23 interest is the rate charged on loans to depository institutions by
69-24 the New York Federal Reserve Bank, and the interest shall be paid
69-25 for the period beginning on the date the penalty was paid and
70-1 ending on the date the penalty is remitted. If the person gave a
70-2 supersedeas bond and the amount of the penalty is not upheld by the
70-3 court, the court shall order the release of the bond. If the
70-4 person gave a supersedeas bond and the amount of the penalty is
70-5 reduced, the court shall order the release of the bond after the
70-6 person pays the amount. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(n),
70-7 (o), (p).)
70-8 Sec. 15.027. ADMINISTRATIVE PENALTY COLLECTION; GENERAL
70-9 PROVISIONS. (a) An administrative penalty collected under this
70-10 subchapter shall be sent to the comptroller.
70-11 (b) A proceeding relating to an administrative penalty under
70-12 this subchapter is subject to Chapter 2001, Government Code.
70-13 (c) The executive director may delegate any power or duty
70-14 relating to an administrative penalty given the executive director
70-15 by this subchapter to a person designated by the executive
70-16 director. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(q), (r), (s).)
70-17 Sec. 15.028. CIVIL PENALTY AGAINST PUBLIC UTILITY, PAY
70-18 TELEPHONE SERVICE PROVIDER, OR AFFILIATE. (a) A public utility,
70-19 customer-owned pay telephone service provider under Section 55.178,
70-20 or affiliate is subject to a civil penalty if the utility,
70-21 provider, or affiliate knowingly violates this title, fails to
70-22 perform a duty imposed on it, or fails or refuses to obey an order,
70-23 rule, direction, or requirement of the commission or a decree or
70-24 judgment of a court.
70-25 (b) A civil penalty under this section shall be in an amount
71-1 of not less than $1,000 and not more than $5,000 for each
71-2 violation.
71-3 (c) A public utility or affiliate commits a separate
71-4 violation each day it continues to violate Subsection (a).
71-5 (d) The attorney general shall file in the name of the
71-6 commission a suit on the attorney general's own initiative or at
71-7 the request of the commission to recover the civil penalty under
71-8 this section. (V.A.C.S. Art. 1446c-0, Sec. 1.322.)
71-9 Sec. 15.029. CIVIL PENALTY FOR VIOLATING SECTION 12.055 OR
71-10 12.154. (a) A member of the commission or an officer or director
71-11 of a public utility or affiliate who knowingly violates Section
71-12 12.055 or 12.154 is subject to a civil penalty of $1,000 for each
71-13 violation.
71-14 (b) A person other than a person subject to Subsection (a)
71-15 who knowingly violates Section 12.154 is subject to a civil penalty
71-16 of $500 for each violation.
71-17 (c) A member, officer, or employee of the commission who in
71-18 any action is found by a preponderance of the evidence to have
71-19 violated a provision of Section 12.055 or 12.154 shall be removed
71-20 from the person's office or employment.
71-21 (d) A civil penalty under this section is recoverable in a
71-22 suit filed in the name of the commission by the attorney general on
71-23 the attorney general's own initiative or at the request of the
71-24 commission. (V.A.C.S. Art. 1446c-0, Sec. 1.323.)
71-25 Sec. 15.030. OFFENSE. (a) A person commits an offense if
72-1 the person wilfully and knowingly violates this title.
72-2 (b) This section does not apply to an offense described by
72-3 Section 55.138.
72-4 (c) An offense under this section is a felony of the third
72-5 degree. (V.A.C.S. Art. 1446c-0, Sec. 1.325(a).)
72-6 Sec. 15.031. PLACE FOR SUIT. A suit for an injunction or a
72-7 penalty under this title may be brought in:
72-8 (1) Travis County;
72-9 (2) a county in which the violation is alleged to have
72-10 occurred; or
72-11 (3) a county in which a defendant resides. (V.A.C.S.
72-12 Art. 1446c-0, Sec. 1.328.)
72-13 Sec. 15.032. PENALTIES CUMULATIVE. (a) A penalty that
72-14 accrues under this title is cumulative of any other penalty.
72-15 (b) A suit for the recovery of a penalty does not bar or
72-16 affect the recovery of any other penalty or bar a criminal
72-17 prosecution against any person. (V.A.C.S. Art. 1446c-0, Sec.
72-18 1.325(b).)
72-19 Sec. 15.033. DISPOSITION OF FINES AND PENALTIES. A fine or
72-20 penalty collected under this title, other than a fine or penalty
72-21 collected in a criminal proceeding or a penalty collected under
72-22 Section 15.027(a), shall be paid to the commission. (V.A.C.S.
72-23 Art. 1446c-0, Sec. 1.327.)
72-24 (Sections 15.034-15.050 reserved for expansion)
73-1 SUBCHAPTER C. COMPLAINTS
73-2 Sec. 15.051. COMPLAINT BY AFFECTED PERSON. (a) An affected
73-3 person may complain to the regulatory authority in writing setting
73-4 forth an act or omission by a public utility in violation or
73-5 claimed violation of a law that the regulatory authority has
73-6 jurisdiction to administer or of an order, ordinance, or rule of
73-7 the regulatory authority.
73-8 (b) The commission shall keep for a reasonable period
73-9 information about each complaint filed with the commission. The
73-10 information shall include:
73-11 (1) the date the complaint is received;
73-12 (2) the name of the complainant;
73-13 (3) the subject matter of the complaint;
73-14 (4) a record of each person contacted in relation to
73-15 the complaint;
73-16 (5) a summary of the results of the review or
73-17 investigation of the complaint; and
73-18 (6) if the commission took no action on the complaint,
73-19 an explanation of the reason the complaint was closed without
73-20 action.
73-21 (c) The commission shall keep a file about each written
73-22 complaint filed with the commission that the commission has
73-23 authority to resolve. The commission shall provide to the person
73-24 filing the complaint and to each person or entity complained about
73-25 information concerning the commission's policies and procedures on
74-1 complaint investigation and resolution. The commission, at least
74-2 quarterly and until final disposition of the complaint, shall
74-3 notify the person filing the complaint and each person or entity
74-4 complained about of the status of the complaint unless the notice
74-5 would jeopardize an undercover investigation. (V.A.C.S.
74-6 Art. 1446c-0, Secs. 1.401(a), (b).)
74-7 Sec. 15.052. COMPLAINT REGARDING RECREATIONAL VEHICLE PARK
74-8 OWNER. (a) An affected person may complain to the regulatory
74-9 authority in writing setting forth an act or omission by a
74-10 recreational vehicle park owner who provides metered electric
74-11 service under Subchapter C, Chapter 184, in violation or claimed
74-12 violation of a law that the regulatory authority has jurisdiction
74-13 to administer or of an order, ordinance, or rule of the regulatory
74-14 authority.
74-15 (b) The commission shall keep for a reasonable period an
74-16 information file about each complaint filed with the commission
74-17 relating to a recreational vehicle park owner.
74-18 (c) The commission, at least quarterly and until final
74-19 disposition of the written complaint, shall notify the parties to
74-20 the complaint of the status of the complaint unless the notice
74-21 would jeopardize an undercover investigation. (V.A.C.S.
74-22 Art. 1446c-0, Sec. 1.401(c).)
74-23 CHAPTER 16. COMMISSION FINANCING
74-24 SUBCHAPTER A. ASSESSMENT ON PUBLIC UTILITIES
74-25 Sec. 16.001. ASSESSMENT ON PUBLIC UTILITIES
75-1 Sec. 16.002. PAYMENT DATES
75-2 Sec. 16.003. LATE PAYMENT PENALTY
75-3 Sec. 16.0031. CERTAIN PAYMENTS BASED ON ESTIMATED GROSS
75-4 RECEIPTS
75-5 Sec. 16.004. COLLECTION BY COMPTROLLER
75-6 (Sections 16.005-16.020 reserved for expansion)
75-7 SUBCHAPTER B. GRANTS AND OTHER FINANCIAL ASSISTANCE
75-8 Sec. 16.021. GRANTS OF FEDERAL FUNDS
75-9 (Sections 16.022-16.040 reserved for expansion)
75-10 SUBCHAPTER C. MONEY DISPOSITION, ACCOUNTING, AND BUDGET
75-11 Sec. 16.041. APPLICATION OF STATE FUNDS REFORM ACT
75-12 Sec. 16.042. ACCOUNTING RECORDS
75-13 Sec. 16.043. AUDIT
75-14 Sec. 16.044. APPROVAL OF BUDGET
75-15 CHAPTER 16. COMMISSION FINANCING
75-16 SUBCHAPTER A. ASSESSMENT ON PUBLIC UTILITIES
75-17 Sec. 16.001. ASSESSMENT ON PUBLIC UTILITIES. (a) To defray
75-18 the expenses incurred in the administration of this title, an
75-19 assessment is imposed on each public utility within the
75-20 jurisdiction of the commission that serves the ultimate consumer,
75-21 including each interexchange telecommunications carrier.
75-22 (b) An assessment under this section is equal to one-sixth
75-23 of one percent of the public utility's gross receipts from rates
75-24 charged to the ultimate consumer in this state.
75-25 (c) An interexchange telecommunications carrier that does
76-1 not provide local exchange telephone service may collect the fee
76-2 imposed under this section as an additional item separately stated
76-3 on the customer bill as "utility gross receipts assessment."
76-4 (V.A.C.S. Art. 1446c-0, Secs. 1.351(a), (c).)
76-5 Sec. 16.002. PAYMENT DATES. (a) The assessment is due
76-6 August 15.
76-7 (b) A public utility may instead make quarterly payments due
76-8 August 15, November 15, February 15, and May 15. (V.A.C.S.
76-9 Art. 1446c-0, Sec. 1.352(a).)
76-10 Sec. 16.003. LATE PAYMENT PENALTY. (a) An additional fee
76-11 equal to 10 percent of the amount due shall be assessed for any
76-12 late payment of an assessment required under this subchapter.
76-13 (b) An assessment delinquent for more than 30 days accrues
76-14 interest at an annual rate of 12 percent on the amount of the
76-15 assessment and penalty due. (V.A.C.S. Art. 1446c-0, Sec.
76-16 1.352(b).)
76-17 Sec. 16.0031. CERTAIN PAYMENTS BASED ON ESTIMATED GROSS
76-18 RECEIPTS. (a) Notwithstanding Section 16.002, the assessments are
76-19 due as provided by this section and are computed on a public
76-20 utility's estimate of its gross receipts.
76-21 (b) For the assessment otherwise due August 15, 1995, 50
76-22 percent of the assessment shall be paid by August 15, 1994, and 50
76-23 percent shall be paid by February 15, 1995.
76-24 (c) For the assessment otherwise due August 15, 1996, 50
76-25 percent of the assessment shall be paid by August 15, 1995, and 50
77-1 percent shall be paid by February 15, 1996.
77-2 (d) For the assessment otherwise due August 15, 1997, 50
77-3 percent of the assessment shall be paid by August 15, 1996, and 50
77-4 percent shall be paid by February 15, 1997.
77-5 (e) For the assessment otherwise due August 15, 1998, 50
77-6 percent of the assessment shall be paid by August 15, 1997, and 50
77-7 percent shall be paid by August 15, 1998.
77-8 (f) An amount that is underpaid for an assessment due August
77-9 15, 1995, August 15, 1996, or August 15, 1997, shall be paid by
77-10 those respective dates. An assessment amount that is overpaid
77-11 shall be credited against a subsequent assessment.
77-12 (g) This section expires September 1, 1998. (V.A.C.S.
77-13 Art. 1446c-0, Sec. 1.353.)
77-14 Sec. 16.004. COLLECTION BY COMPTROLLER. The comptroller
77-15 shall collect the assessment and any penalty or interest due under
77-16 this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 1.354(a).)
77-17 (Sections 16.005-16.020 reserved for expansion)
77-18 SUBCHAPTER B. GRANTS AND OTHER FINANCIAL ASSISTANCE
77-19 Sec. 16.021. GRANTS OF FEDERAL FUNDS. (a) The commission
77-20 may apply to an appropriate agency or officer of the United States
77-21 to receive and spend federal funds available by grant or other
77-22 similar form of financial assistance.
77-23 (b) This section does not impair the ability of the
77-24 commission to contract with or receive assistance from a state,
77-25 local, or other authorized source of funds. (V.A.C.S.
78-1 Art. 1446c-0, Sec. 1.355(a).)
78-2 (Sections 16.022-16.040 reserved for expansion)
78-3 SUBCHAPTER C. MONEY DISPOSITION, ACCOUNTING, AND BUDGET
78-4 Sec. 16.041. APPLICATION OF STATE FUNDS REFORM ACT. Money
78-5 paid to the commission or to the office under this title is subject
78-6 to Subchapter F, Chapter 404, Government Code. (V.A.C.S.
78-7 Art. 1446c-0, Sec. 1.354(b).)
78-8 Sec. 16.042. ACCOUNTING RECORDS. The commission shall keep
78-9 the accounting records required by the comptroller. (V.A.C.S.
78-10 Art. 1446c-0, Sec. 1.356 (part).)
78-11 Sec. 16.043. AUDIT. The financial transactions of the
78-12 commission are subject to audit by the state auditor under Chapter
78-13 321, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.356 (part).)
78-14 Sec. 16.044. APPROVAL OF BUDGET. The commission budget is
78-15 subject to legislative approval as part of the General
78-16 Appropriations Act. (V.A.C.S. Art. 1446c-0, Sec. 1.357.)
78-17 (Chapters 17-30 reserved for expansion)
78-18 SUBTITLE B. ELECTRIC UTILITIES
78-19 CHAPTER 31. GENERAL PROVISIONS
78-20 Sec. 31.001. LEGISLATIVE FINDINGS; PURPOSE OF
78-21 SUBTITLE
78-22 Sec. 31.002. DEFINITIONS
78-23 Sec. 31.003. REPORT ON SCOPE OF COMPETITION
78-24 Sec. 31.004. ENERGY-EFFICIENT SCHOOL FACILITIES
79-1 SUBTITLE B. ELECTRIC UTILITIES
79-2 CHAPTER 31. GENERAL PROVISIONS
79-3 Sec. 31.001. LEGISLATIVE FINDINGS; PURPOSE OF SUBTITLE.
79-4 (a) This subtitle is enacted to protect the public interest
79-5 inherent in the rates and services of electric utilities. The
79-6 purpose of this subtitle is to establish a comprehensive and
79-7 adequate regulatory system for electric utilities to assure rates,
79-8 operations, and services that are just and reasonable to the
79-9 consumers and to the electric utilities.
79-10 (b) Electric utilities are by definition monopolies in many
79-11 of the services provided and areas they serve. As a result, the
79-12 normal forces of competition that regulate prices in a free
79-13 enterprise society do not always operate. Public agencies regulate
79-14 electric utility rates, operations, and services, except as
79-15 otherwise provided by this subtitle.
79-16 (c) The wholesale electric industry, through federal
79-17 legislative, judicial, and administrative actions, is becoming a
79-18 more competitive industry that does not lend itself to traditional
79-19 electric utility regulatory rules, policies, and principles. As a
79-20 result, the public interest requires that rules, policies, and
79-21 principles be formulated and applied to protect the public interest
79-22 in a more competitive marketplace. The development of a
79-23 competitive wholesale electric market that allows for increased
79-24 participation by electric utilities and certain nonutilities is in
79-25 the public interest. (V.A.C.S. Art. 1446c-0, Sec. 2.001(a).)
80-1 Sec. 31.002. DEFINITIONS. In this subtitle:
80-2 (1) "Electric utility" means a person or river
80-3 authority that owns or operates for compensation in this state
80-4 equipment or facilities to produce, generate, transmit, distribute,
80-5 sell, or furnish electricity in this state. The term includes a
80-6 lessee, trustee, or receiver of an electric utility and a
80-7 recreational vehicle park owner who does not comply with Subchapter
80-8 C, Chapter 184, with regard to the metered sale of electricity at
80-9 the recreational vehicle park. The term does not include:
80-10 (A) a municipal corporation;
80-11 (B) a qualifying facility;
80-12 (C) an exempt wholesale generator;
80-13 (D) a power marketer;
80-14 (E) a corporation described by Section 32.053 to
80-15 the extent the corporation sells electricity exclusively at
80-16 wholesale and not to the ultimate consumer; or
80-17 (F) a person not otherwise an electric utility
80-18 who:
80-19 (i) furnishes an electric service or
80-20 commodity only to itself, its employees, or its tenants as an
80-21 incident of employment or tenancy, if that service or commodity is
80-22 not resold to or used by others;
80-23 (ii) owns or operates in this state
80-24 equipment or facilities to produce, generate, transmit, distribute,
80-25 sell, or furnish electric energy to an electric utility, if the
81-1 equipment or facilities are used primarily to produce and generate
81-2 electric energy for consumption by that person; or
81-3 (iii) owns or operates in this state a
81-4 recreational vehicle park that provides metered electric service in
81-5 accordance with Subchapter C, Chapter 184.
81-6 (2) "Exempt wholesale generator" means a person who is
81-7 engaged directly or indirectly through one or more affiliates
81-8 exclusively in the business of owning or operating all or part of a
81-9 facility for generating electric energy and selling electric energy
81-10 at wholesale and who:
81-11 (A) does not own a facility for the transmission
81-12 of electricity, other than an essential interconnecting
81-13 transmission facility necessary to effect a sale of electric energy
81-14 at wholesale; and
81-15 (B) has:
81-16 (i) applied to the Federal Energy
81-17 Regulatory Commission for a determination under 15 U.S.C. Section
81-18 79z-5a; or
81-19 (ii) registered as an exempt wholesale
81-20 generator as required by Section 35.032.
81-21 (3) "Power marketer" means a person who:
81-22 (A) becomes an owner of electric energy in this
81-23 state for the purpose of selling the electric energy at wholesale;
81-24 (B) does not own generation, transmission, or
81-25 distribution facilities in this state;
82-1 (C) does not have a certificated service area;
82-2 and
82-3 (D) has:
82-4 (i) been granted authority by the Federal
82-5 Energy Regulatory Commission to sell electric energy at
82-6 market-based rates; or
82-7 (ii) registered as a power marketer under
82-8 Section 35.032.
82-9 (4) "Qualifying cogenerator" and "qualifying small
82-10 power producer" have the meanings assigned those terms by 16 U.S.C.
82-11 Sections 796(18)(C) and 796(17)(D).
82-12 (5) "Qualifying facility" means a qualifying
82-13 cogenerator or qualifying small power producer.
82-14 (6) "Rate" includes a compensation, tariff, charge,
82-15 fare, toll, rental, or classification that is directly or
82-16 indirectly demanded, observed, charged, or collected by an electric
82-17 utility for a service, product, or commodity described in the
82-18 definition of electric utility in this section and a rule,
82-19 practice, or contract affecting the compensation, tariff, charge,
82-20 fare, toll, rental, or classification that must be approved by a
82-21 regulatory authority.
82-22 (7) "Transmission service" includes construction or
82-23 enlargement of facilities, transmission over distribution
82-24 facilities, control area services, scheduling resources, regulation
82-25 services, reactive power support, voltage control, provision of
83-1 operating reserves, and any other associated electrical service the
83-2 commission determines appropriate. (V.A.C.S. Art. 1446c-0, Secs.
83-3 2.0011, 2.0012(a) (part).)
83-4 Sec. 31.003. REPORT ON SCOPE OF COMPETITION. (a) Before
83-5 January 15 of each odd-numbered year, the commission shall report
83-6 to the legislature on the scope of competition in electric markets
83-7 and the effect of competition and industry restructuring on
83-8 customers in both competitive and noncompetitive markets.
83-9 (b) The report under this section must include:
83-10 (1) an assessment of the effect of competition on the
83-11 rates and availability of electric services for residential and
83-12 small commercial customers;
83-13 (2) a summary of commission action over the preceding
83-14 two years that reflects changes in the scope of competition in
83-15 regulated electric markets; and
83-16 (3) recommendations to the legislature for legislation
83-17 that the commission finds appropriate to promote the public
83-18 interest in the context of a partially competitive electric market.
83-19 (V.A.C.S. Art. 1446c-0, Sec. 2.003.)
83-20 Sec. 31.004. ENERGY-EFFICIENT SCHOOL FACILITIES. (a) The
83-21 commission may serve as a resource center to assist school
83-22 districts in developing energy-efficient facilities.
83-23 (b) As a resource center under this section, the commission
83-24 may:
83-25 (1) present programs to school districts relating to
84-1 managing energy, training school-plant operators, and designing
84-2 energy-efficient buildings;
84-3 (2) provide school districts with technical assistance
84-4 in managing energy;
84-5 (3) collect and distribute information relating to
84-6 energy management in school facilities; and
84-7 (4) offer energy resource workshops to educators and
84-8 make available to educators a film library on energy-related
84-9 matters and energy education lesson packages. (V.A.C.S.
84-10 Art. 1446c-0, Sec. 2.002.)
84-11 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION
84-12 AND OTHER REGULATORY AUTHORITIES
84-13 SUBCHAPTER A. COMMISSION JURISDICTION
84-14 Sec. 32.001. COMMISSION JURISDICTION
84-15 Sec. 32.002. LIMITATION ON COMMISSION JURISDICTION
84-16 Sec. 32.003. EXEMPT AREA JURISDICTION
84-17 Sec. 32.004. ASSISTANCE TO MUNICIPALITY
84-18 (Sections 32.005-32.050 reserved for expansion)
84-19 SUBCHAPTER B. EXEMPTIONS FROM COMMISSION JURISDICTION
84-20 Sec. 32.051. EXEMPTION OF RIVER AUTHORITY FROM WHOLESALE
84-21 RATE REGULATION
84-22 Sec. 32.052. ABILITY OF CERTAIN RIVER AUTHORITIES TO
84-23 CONSTRUCT IMPROVEMENTS
84-24 Sec. 32.053. ABILITY OF CERTAIN RIVER AUTHORITY
84-25 AFFILIATES TO CONSTRUCT IMPROVEMENTS
85-1 Sec. 32.054. RESTRICTIONS ON AUTHORITY OF CORPORATIONS
85-2 OR RIVER AUTHORITY
85-3 (Sections 32.055-32.100 reserved for expansion)
85-4 SUBCHAPTER C. REQUIRED REPORTS AND FILINGS
85-5 Sec. 32.101. TARIFF FILINGS
85-6 Sec. 32.102. DEPRECIATION ACCOUNT
85-7 Sec. 32.103. ACCOUNTS OF PROFITS AND LOSSES
85-8 Sec. 32.104. REPORT OF CERTAIN EXPENSES
85-9 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION
85-10 AND OTHER REGULATORY AUTHORITIES
85-11 SUBCHAPTER A. COMMISSION JURISDICTION
85-12 Sec. 32.001. COMMISSION JURISDICTION. (a) Except as
85-13 provided by Section 32.002, the commission has exclusive original
85-14 jurisdiction over the rates, operations, and services of an
85-15 electric utility in:
85-16 (1) areas outside a municipality; and
85-17 (2) areas inside a municipality that surrenders its
85-18 jurisdiction to the commission under Section 33.002.
85-19 (b) The commission has exclusive appellate jurisdiction to
85-20 review an order or ordinance of a municipality exercising exclusive
85-21 original jurisdiction under this subtitle. (V.A.C.S. Art. 1446c-0,
85-22 Secs. 2.101(d), (e).)
85-23 Sec. 32.002. LIMITATION ON COMMISSION JURISDICTION. Except
85-24 as otherwise provided by this title, this subtitle does not
85-25 authorize the commission to:
86-1 (1) regulate or supervise a rate or service of a
86-2 municipally owned utility; or
86-3 (2) affect the jurisdiction, power, or duty of a
86-4 municipality exercising exclusive original jurisdiction in that
86-5 municipality's regulation and supervision of an electric utility in
86-6 the municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.102.)
86-7 Sec. 32.003. EXEMPT AREA JURISDICTION. Notwithstanding an
86-8 election under Subchapter A, Chapter 33, by a municipality on the
86-9 issue of surrendering its jurisdiction, the commission may:
86-10 (1) consider an electric utility's revenues and return
86-11 on investment in an area exempt from commission regulation in
86-12 establishing rates and charges in an area that is not exempt from
86-13 commission regulation; and
86-14 (2) exercise necessary powers to give effect to an
86-15 order under this title for the benefit of an area that is not
86-16 exempt from commission regulation. (V.A.C.S. Art. 1446c-0, Sec.
86-17 2.104(c) (part).)
86-18 Sec. 32.004. ASSISTANCE TO MUNICIPALITY. On request of a
86-19 municipality, the commission may advise and assist the municipality
86-20 with respect to a question or proceeding arising under this title.
86-21 Assistance provided by the commission may include aid to a
86-22 municipality on a matter pending before the commission, a court, or
86-23 the municipality's governing body, such as making a staff member
86-24 available as a witness or otherwise providing evidence to the
86-25 municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.107.)
87-1 (Sections 32.005-32.050 reserved for expansion)
87-2 SUBCHAPTER B. EXEMPTIONS FROM COMMISSION JURISDICTION
87-3 Sec. 32.051. EXEMPTION OF RIVER AUTHORITY FROM WHOLESALE
87-4 RATE REGULATION. Notwithstanding any other provision of this
87-5 title, the commission may not directly or indirectly regulate
87-6 revenue requirements, rates, fuel costs, fuel charges, or fuel
87-7 acquisitions that are related to the generation and sale of
87-8 electricity at wholesale, and not to ultimate consumers, by a river
87-9 authority operating a steam generating plant. (V.A.C.S.
87-10 Art. 1446c-0, Sec. 2.0012(a) (part).)
87-11 Sec. 32.052. ABILITY OF CERTAIN RIVER AUTHORITIES TO
87-12 CONSTRUCT IMPROVEMENTS. A river authority operating a steam
87-13 generating plant may acquire, finance, construct, rebuild, repower,
87-14 and use new or existing power plants, equipment, transmission
87-15 lines, or other assets to sell electricity exclusively at wholesale
87-16 to:
87-17 (1) a purchaser in San Saba, Llano, Burnet, Travis,
87-18 Bastrop, Blanco, Colorado, or Fayette County; or
87-19 (2) a purchaser in an area served by the river
87-20 authority on January 1, 1975. (V.A.C.S. Art. 1446c-0, Sec.
87-21 2.0012(b).)
87-22 Sec. 32.053. ABILITY OF CERTAIN RIVER AUTHORITY AFFILIATES
87-23 TO CONSTRUCT IMPROVEMENTS. (a) This section applies only to a
87-24 corporation that:
87-25 (1) sells electricity exclusively at wholesale, and
88-1 not to ultimate consumers;
88-2 (2) is authorized by Chapter 245, Acts of the 67th
88-3 Legislature, Regular Session, 1981 (Article 717p, Vernon's Texas
88-4 Civil Statutes); and
88-5 (3) acts on behalf of a river authority.
88-6 (b) Notwithstanding a river authority's enabling legislation
88-7 or Chapter 245, Acts of the 67th Legislature, Regular Session, 1981
88-8 (Article 717p, Vernon's Texas Civil Statutes), a corporation may:
88-9 (1) acquire, finance, construct, rebuild, repower,
88-10 operate, or sell a facility directly related to the generation of
88-11 electricity; and
88-12 (2) sell, at wholesale only, the output of the
88-13 facility to a purchaser, other than an ultimate consumer, at any
88-14 location in this state.
88-15 (c) This subchapter does not prevent a corporation from
88-16 purchasing transmission and related services from a river
88-17 authority.
88-18 (d) Except as provided by this section, the development,
88-19 financing, ownership, and operation of a facility by a corporation
88-20 is subject to all other applicable laws.
88-21 (e) The property, gross receipts, and income of a
88-22 corporation acting on behalf of a river authority under this
88-23 section are subject to, and the corporation shall pay, taxes and
88-24 assessments of the federal government, this state, a political
88-25 subdivision of this state, or a taxing district of this state on
89-1 the same basis as an exempt wholesale generator.
89-2 (f) The proceeds from the sale of bonds or other obligations
89-3 the interest on which is exempt from taxation and that are issued
89-4 by a corporation or river authority subject to this section, other
89-5 than a bond or obligation available to an investor-owned utility or
89-6 exempt wholesale generator, may not be used, and may not have been
89-7 used, to finance the construction or acquisition of or the
89-8 rebuilding or repowering of a facility for the generation of
89-9 electricity by the corporation. (V.A.C.S. Art. 1446c-0, Secs.
89-10 2.0012(a) (part), (c).)
89-11 Sec. 32.054. RESTRICTIONS ON AUTHORITY OF CORPORATIONS OR
89-12 RIVER AUTHORITY. (a) This subchapter does not authorize a river
89-13 authority to acquire, install, construct, make additions to, or
89-14 operate steam generating plants having an aggregate capacity
89-15 greater than 5,000 megawatts to serve a purchaser in the area
89-16 served by the river authority on January 1, 1975.
89-17 (b) A river authority or a corporation acting on behalf of a
89-18 river authority under this subchapter may provide retail service
89-19 only to a retail customer served by the river authority or
89-20 corporation on September 1, 1995.
89-21 (c) Except as provided by this subchapter, this subchapter
89-22 does not limit a power granted a river authority in its enabling
89-23 legislation or other applicable law. (V.A.C.S. Art. 1446c-0, Secs.
89-24 2.0012(d), (e).)
89-25 (Sections 32.055-32.100 reserved for expansion)
90-1 SUBCHAPTER C. REQUIRED REPORTS AND FILINGS
90-2 Sec. 32.101. TARIFF FILINGS. (a) An electric utility shall
90-3 file with each regulatory authority a tariff showing each rate that
90-4 is:
90-5 (1) subject to the regulatory authority's original or
90-6 appellate jurisdiction; and
90-7 (2) in effect for a utility service, product, or
90-8 commodity offered by the utility.
90-9 (b) The electric utility shall file as a part of the tariff
90-10 required under Subsection (a) each rule that relates to or affects:
90-11 (1) a rate of the utility; or
90-12 (2) a utility service, product, or commodity furnished
90-13 by the electric utility.
90-14 (c) The commission shall consider customer names and
90-15 addresses, prices, individual customer contracts, and expected load
90-16 and usage data as highly sensitive trade secrets. That information
90-17 is not subject to disclosure under Chapter 552, Government Code.
90-18 (V.A.C.S. Art. 1446c-0, Sec. 2.154.)
90-19 Sec. 32.102. DEPRECIATION ACCOUNT. The commission shall
90-20 require each electric or municipally owned utility to carry a
90-21 proper and adequate depreciation account in accordance with:
90-22 (1) the rates and methods prescribed by the commission
90-23 under Section 36.056; and
90-24 (2) any other rule the commission adopts. (V.A.C.S.
90-25 Art. 1446c-0, Secs. 2.151(a) (part), (d).)
91-1 Sec. 32.103. ACCOUNTS OF PROFITS AND LOSSES. An electric or
91-2 municipally owned utility shall keep separate accounts showing
91-3 profits or losses from the sale or lease of merchandise, including
91-4 an appliance, a fixture, or equipment. (V.A.C.S. Art. 1446c-0,
91-5 Secs. 2.151(b) (part), (d).)
91-6 Sec. 32.104. REPORT OF CERTAIN EXPENSES. A regulatory
91-7 authority may require an electric utility to annually report the
91-8 utility's expenditures for:
91-9 (1) business gifts and entertainment; and
91-10 (2) advertising or public relations, including
91-11 expenditures for institutional and consumption-inducing purposes.
91-12 (V.A.C.S. Art. 1446c-0, Sec. 2.152(a).)
91-13 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY
91-14 SUBCHAPTER A. GENERAL PROVISIONS
91-15 Sec. 33.001. MUNICIPAL JURISDICTION
91-16 Sec. 33.002. SURRENDER OF MUNICIPAL JURISDICTION TO
91-17 COMMISSION
91-18 Sec. 33.003. REINSTATEMENT OF MUNICIPAL JURISDICTION
91-19 Sec. 33.004. AREA EXEMPT FROM COMMISSION REGULATION
91-20 Sec. 33.005. EXEMPT AREA REPORTING
91-21 Sec. 33.006. COMMISSION POWERS IN NONEXEMPT AREAS
91-22 Sec. 33.007. ALLOWABLE CHARGES
91-23 (Sections 33.008-33.020 reserved for expansion)
91-24 SUBCHAPTER B. RATE DETERMINATION
91-25 Sec. 33.021. RATE DETERMINATION
92-1 Sec. 33.022. CONSIDERATION OF REVENUES AND RETURN
92-2 FROM NONEXEMPT AREA
92-3 Sec. 33.023. RATEMAKING PROCEEDINGS
92-4 Sec. 33.024. STATEMENT OF INTENT
92-5 Sec. 33.025. MUNICIPAL STANDING
92-6 Sec. 33.026. JUDICIAL REVIEW
92-7 (Sections 33.027-33.050 reserved for expansion)
92-8 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
92-9 Sec. 33.051. APPEAL BY PARTY
92-10 Sec. 33.052. APPEAL BY RESIDENTS
92-11 Sec. 33.053. FILING OF APPEAL
92-12 Sec. 33.054. HEARING AND ORDER
92-13 Sec. 33.055. APPLICABILITY OF RATES
92-14 (Sections 33.056-33.100 reserved for expansion)
92-15 SUBCHAPTER D. PROVISIONS APPLICABLE TO APPEAL
92-16 BY RATEPAYERS OUTSIDE MUNICIPALITY
92-17 Sec. 33.101. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY
92-18 Sec. 33.102. IDENTIFICATION OF RATEPAYERS OUTSIDE
92-19 MUNICIPALITY
92-20 Sec. 33.103. FILING OF APPEAL
92-21 Sec. 33.104. RATE APPLICATION
92-22 (Sections 33.105-33.120 reserved for expansion)
92-23 SUBCHAPTER E. RATE DETERMINATION AND APPEAL OF ORDERS
92-24 OF CERTAIN MUNICIPAL UTILITIES
92-25 Sec. 33.121. APPLICATION OF COMMISSION REVIEW
93-1 Sec. 33.122. REVIEW OF CERTAIN RATE DECISIONS
93-2 Sec. 33.123. REVIEW OF CERTAIN DECISIONS FOR RATES
93-3 CHARGED OUTSIDE MUNICIPALITY
93-4 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY
93-5 SUBCHAPTER A. GENERAL PROVISIONS
93-6 Sec. 33.001. MUNICIPAL JURISDICTION. To provide fair, just,
93-7 and reasonable rates and adequate and efficient services, the
93-8 governing body of a municipality has exclusive original
93-9 jurisdiction over the rates, operations, and services of an
93-10 electric utility in areas in the municipality, subject to the
93-11 limitations imposed by this title. (V.A.C.S. Art. 1446c-0, Sec.
93-12 2.101(a).)
93-13 Sec. 33.002. SURRENDER OF MUNICIPAL JURISDICTION TO
93-14 COMMISSION. (a) A municipality shall regulate all local utility
93-15 service in the municipality until the commission assumes
93-16 jurisdiction over a local utility under this subtitle.
93-17 (b) A municipality may elect to have the commission exercise
93-18 exclusive original jurisdiction over electric utility rates,
93-19 operations, and services in the municipality by ordinance or by
93-20 submitting the question of the surrender of its jurisdiction to the
93-21 voters at a municipal election.
93-22 (c) The governing body of a municipality shall submit at a
93-23 municipal election the question of surrendering its jurisdiction to
93-24 the commission if the governing body receives a petition signed by
93-25 a number of qualified voters of the municipality equal to at least
94-1 the lesser of 20,000 or 10 percent of the number of voters voting
94-2 in the last preceding general election in the municipality.
94-3 (V.A.C.S. Art. 1446c-0, Secs. 2.101(b), 2.104(a).)
94-4 Sec. 33.003. REINSTATEMENT OF MUNICIPAL JURISDICTION.
94-5 (a) A municipality that surrenders its jurisdiction to the
94-6 commission may at any time reinstate its jurisdiction by a vote of
94-7 the electorate.
94-8 (b) A municipality that reinstates its jurisdiction under
94-9 Subsection (a) may not surrender that jurisdiction before the fifth
94-10 anniversary of the date of the election in which the municipality
94-11 elected to reinstate its jurisdiction.
94-12 (c) A municipality may not, by a vote of the electorate,
94-13 reinstate the jurisdiction of the governing body during the time a
94-14 case involving the municipality is pending before the commission.
94-15 (V.A.C.S. Art. 1446c-0, Sec. 2.101(c).)
94-16 Sec. 33.004. AREA EXEMPT FROM COMMISSION REGULATION.
94-17 (a) If a municipality does not surrender its jurisdiction, local
94-18 utility service in the municipality is exempt from regulation by
94-19 the commission under this subtitle to the extent that this subtitle
94-20 applies to local service.
94-21 (b) The municipality may exercise in the exempt area the
94-22 same regulatory powers under the same standards and rules as the
94-23 commission or under other consistent standards and rules.
94-24 (V.A.C.S. Art. 1446c-0, Sec. 2.104(b).)
94-25 Sec. 33.005. EXEMPT AREA REPORTING. (a) An electric
95-1 utility serving an area exempt from commission regulation is
95-2 subject to the reporting requirements of this title.
95-3 (b) A report must be filed with:
95-4 (1) the governing body of the municipality; and
95-5 (2) the commission. (V.A.C.S. Art. 1446c-0, Sec.
95-6 2.104(d).)
95-7 Sec. 33.006. COMMISSION POWERS IN NONEXEMPT AREAS. This
95-8 subchapter does not limit the duty and power of the commission to
95-9 regulate the service and rates of a municipally regulated electric
95-10 utility for service provided to another area in this state.
95-11 (V.A.C.S. Art. 1446c-0, Sec. 2.104(e).)
95-12 Sec. 33.007. ALLOWABLE CHARGES. A municipality that
95-13 performs a regulatory function under this title may make each
95-14 charge that is authorized by:
95-15 (1) this title; or
95-16 (2) the applicable franchise agreement. (V.A.C.S.
95-17 Art. 1446c-0, Sec. 2.103.)
95-18 (Sections 33.008-33.020 reserved for expansion)
95-19 SUBCHAPTER B. RATE DETERMINATION
95-20 Sec. 33.021. RATE DETERMINATION. (a) A municipality
95-21 regulating an electric utility under this subtitle shall require
95-22 the utility to submit information as necessary to make a reasonable
95-23 determination of rate base, expenses, investment, and rate of
95-24 return in the municipality.
95-25 (b) A municipality shall make a determination under
96-1 Subsection (a) using the procedures and requirements prescribed by
96-2 this title.
96-3 (c) A municipality shall retain personnel necessary to make
96-4 the determination of reasonable rates. (V.A.C.S. Art. 1446c-0,
96-5 Secs. 2.105(a), (b).)
96-6 Sec. 33.022. CONSIDERATION OF REVENUES AND RETURN FROM
96-7 NONEXEMPT AREA. In establishing rates and charges in an area
96-8 exempt from commission regulation, the governing body may consider
96-9 an electric utility's revenues and return on investment in an area
96-10 that is not exempt from commission regulation. (V.A.C.S.
96-11 Art. 1446c-0, Sec. 2.104(c) (part).)
96-12 Sec. 33.023. RATEMAKING PROCEEDINGS. (a) The governing
96-13 body of a municipality participating in or conducting a ratemaking
96-14 proceeding may engage rate consultants, accountants, auditors,
96-15 attorneys, and engineers to:
96-16 (1) conduct investigations, present evidence, and
96-17 advise and represent the governing body; and
96-18 (2) assist the governing body with litigation in an
96-19 electric utility ratemaking proceeding before the governing body, a
96-20 regulatory authority, or a court.
96-21 (b) The electric utility in the ratemaking proceeding shall
96-22 reimburse the governing body of the municipality for the reasonable
96-23 cost of the services of a person engaged under Subsection (a) to
96-24 the extent the applicable regulatory authority determines is
96-25 reasonable. (V.A.C.S. Art. 1446c-0, Sec. 2.106(a).)
97-1 Sec. 33.024. STATEMENT OF INTENT. (a) Not later than the
97-2 31st day before the date an electric utility files a statement of
97-3 intent under Section 36.102, the electric utility shall provide
97-4 notice of intent to file the statement to each municipality having
97-5 original jurisdiction.
97-6 (b) Not later than the 30th day after the date a
97-7 municipality receives notice under Subsection (a), the municipality
97-8 may request that the electric utility file with the municipality a
97-9 statement of intent in accordance with Section 36.102.
97-10 (c) If requested by a municipality under Subsection (b), the
97-11 electric utility shall file the statement of intent with the
97-12 municipality at the same time the statement is filed with the
97-13 commission. (V.A.C.S. Art. 1446c-0, Sec. 2.105(c).)
97-14 Sec. 33.025. MUNICIPAL STANDING. (a) A municipality has
97-15 standing in each case before the commission that relates to an
97-16 electric utility providing service in the municipality.
97-17 (b) A municipality's standing is subject to the right of the
97-18 commission to:
97-19 (1) determine standing in a case involving a retail
97-20 service area dispute that involves two or more electric utilities;
97-21 and
97-22 (2) consolidate municipalities on an issue of common
97-23 interest. (V.A.C.S. Art. 1446c-0, Sec. 2.106(b) (part).)
97-24 Sec. 33.026. JUDICIAL REVIEW. A municipality is entitled to
97-25 judicial review of a commission order relating to an electric
98-1 utility providing services in the municipality as provided by
98-2 Section 15.001. (V.A.C.S. Art. 1446c-0, Sec. 2.106(b) (part).)
98-3 (Sections 33.027-33.050 reserved for expansion)
98-4 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
98-5 Sec. 33.051. APPEAL BY PARTY. A party to a rate proceeding
98-6 before a municipality's governing body may appeal the governing
98-7 body's decision to the commission. (V.A.C.S. Art. 1446c-0, Sec.
98-8 2.108(a).)
98-9 Sec. 33.052. APPEAL BY RESIDENTS. The residents of a
98-10 municipality may appeal to the commission the decision of the
98-11 municipality's governing body in a rate proceeding by filing with
98-12 the commission a petition for review signed by a number of
98-13 qualified voters of the municipality equal to at least the lesser
98-14 of 20,000 or 10 percent of the qualified voters of the
98-15 municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.108(b).)
98-16 Sec. 33.053. FILING OF APPEAL. (a) An appeal under this
98-17 subchapter is initiated by filing a petition for review with the
98-18 commission and serving a copy of the petition on each party to the
98-19 original rate proceeding.
98-20 (b) The appeal must be initiated not later than the 30th day
98-21 after the date of the final decision by the governing body of the
98-22 municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.108(f).)
98-23 Sec. 33.054. HEARING AND ORDER. (a) An appeal under this
98-24 subchapter, Subchapter D, or Subchapter E is de novo and based on
98-25 the test year presented to the municipality.
99-1 (b) The commission shall enter a final order establishing
99-2 the rates the commission determines the municipality should have
99-3 set in the ordinance to which the appeal applies.
99-4 (c) In a proceeding involving the rates of a municipally
99-5 owned utility, the commission must enter a final order on or before
99-6 the 185th day after the date the appeal is perfected or the utility
99-7 files a rate application as prescribed by Section 33.104.
99-8 (d) In a proceeding in which a rate change is concurrently
99-9 sought from the commission under the commission's original
99-10 jurisdiction, the commission must enter a final order on or before
99-11 the later of the 120th day after the date the appeal is perfected
99-12 or the date final action must be taken in the proceeding filed with
99-13 the commission.
99-14 (e) In a proceeding not governed by Subsection (c) or (d),
99-15 the commission must enter a final order on or before the 185th day
99-16 after the date the appeal is perfected.
99-17 (f) If the commission fails to enter a final order before
99-18 the expiration of the applicable period prescribed by Subsections
99-19 (c)-(e), the rates proposed by the utility are considered to be
99-20 approved by the commission and take effect on the expiration of
99-21 that period. (V.A.C.S. Art. 1446c-0, Sec. 2.108(g) (part).)
99-22 Sec. 33.055. APPLICABILITY OF RATES. (a) Temporary or
99-23 permanent rates set by the commission are prospective and observed
99-24 from the date of the applicable commission order, except an interim
99-25 rate order necessary to effect uniform system-wide rates or to
100-1 provide an electric utility the opportunity to avoid confiscation
100-2 during the period beginning on the date a petition for review is
100-3 filed with the commission and ending on the date of a final order
100-4 establishing rates.
100-5 (b) The commission shall order interim rates on a prima
100-6 facie showing by the electric utility that it has experienced
100-7 confiscation during that period. The electric utility shall refund
100-8 or credit against future bills:
100-9 (1) money collected under the interim rates in excess
100-10 of the rate finally ordered; and
100-11 (2) interest on that money, at the current rate as
100-12 determined by the commission.
100-13 (c) In this section, "confiscation" includes negative cash
100-14 flow experienced by an electric utility at any time a rate case
100-15 proceeding is pending. (V.A.C.S. Art. 1446c-0, Sec. 2.108(g)
100-16 (part).)
100-17 (Sections 33.056-33.100 reserved for expansion)
100-18 SUBCHAPTER D. PROVISIONS APPLICABLE TO APPEAL
100-19 BY RATEPAYERS OUTSIDE MUNICIPALITY
100-20 Sec. 33.101. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY.
100-21 (a) The ratepayers of a municipally owned utility who are outside
100-22 the municipality may appeal to the commission an action of the
100-23 governing body of the municipality affecting the municipally owned
100-24 utility's rates by filing with the commission a petition for review
100-25 signed by a number of ratepayers served by the utility outside the
101-1 municipality equal to at least the lesser of 10,000 or five percent
101-2 of those ratepayers.
101-3 (b) A petition for review is properly signed if signed by a
101-4 person or the spouse of a person in whose name residential utility
101-5 service is carried.
101-6 (c) For purposes of this section, each person who receives a
101-7 separate bill is a ratepayer. A person who receives more than one
101-8 bill may not be counted as more than one ratepayer. (V.A.C.S.
101-9 Art. 1446c-0, Sec. 2.108(c)(1).)
101-10 Sec. 33.102. IDENTIFICATION OF RATEPAYERS OUTSIDE
101-11 MUNICIPALITY. (a) A municipality that owns a utility shall:
101-12 (1) disclose to any person, on request, the number of
101-13 ratepayers who reside outside the municipality; and
101-14 (2) provide to any person, on request, a list of the
101-15 names and addresses of the ratepayers who reside outside the
101-16 municipality.
101-17 (b) The municipality may not charge a fee for disclosing the
101-18 information under Subsection (a)(1). The municipality may charge a
101-19 reasonable fee for providing information under Subsection (a)(2).
101-20 (c) The municipality shall provide information requested
101-21 under Subsection (a)(1) by telephone or in writing, as preferred by
101-22 the person making the request. (V.A.C.S. Art. 1446c-0, Sec.
101-23 2.108(c)(2).)
101-24 Sec. 33.103. FILING OF APPEAL. (a) Not later than the 14th
101-25 day after the date a governing body of a municipality makes a final
102-1 decision, the municipality shall issue a written report stating the
102-2 effect of the decision on each class of ratepayer.
102-3 (b) An appeal under this subchapter is initiated by filing a
102-4 petition for review with the commission and serving a copy of the
102-5 petition on each party to the original rate proceeding.
102-6 (c) The appeal must be initiated not later than the 45th day
102-7 after the date the municipality issues the written report required
102-8 by Subsection (a). (V.A.C.S. Art. 1446c-0, Sec. 2.108(c)(3).)
102-9 Sec. 33.104. RATE APPLICATION. Not later than the 90th day
102-10 after the date a petition for review is filed that complies with
102-11 Section 33.103, the municipality shall file with the commission a
102-12 rate application that complies in all material respects with the
102-13 rules and forms prescribed by the commission. The commission may,
102-14 for good cause shown, extend the period for filing a rate
102-15 application. (V.A.C.S. Art. 1446c-0, Sec. 2.108(c)(4).)
102-16 (Sections 33.105-33.120 reserved for expansion)
102-17 SUBCHAPTER E. RATE DETERMINATION AND APPEAL OF ORDERS
102-18 OF CERTAIN MUNICIPAL UTILITIES
102-19 Sec. 33.121. APPLICATION OF COMMISSION REVIEW. A
102-20 municipally owned utility is subject to this subchapter if the
102-21 utility is a utility:
102-22 (1) whose rates are appealed under Subchapter D;
102-23 (2) for which the commission orders a decrease in
102-24 annual nonfuel base revenues that exceeds the greater of
102-25 $25,000,000 or 10 percent of the utility's nonfuel base revenues,
103-1 as computed on a total system basis without regard to the utility's
103-2 municipal boundaries and established in the appealed rate
103-3 ordinance; and
103-4 (3) for which the commission finds that the rates paid
103-5 by the combined residential or other major customer class, other
103-6 than a class in which the municipality is the customer of the
103-7 municipally owned utility, are removed from cost-of-service levels
103-8 to the extent that, under the nonfuel base revenue requirement
103-9 adopted by the commission as computed on a total system basis
103-10 without regard to the municipality's boundaries, a change in
103-11 nonfuel base rate revenues in excess of 50 percent from adjusted
103-12 test year levels would be required to move that class to a relative
103-13 rate of return of unity (1.00 or 100 percent) under the
103-14 cost-of-service methodology adopted by the commission in an appeal
103-15 under Subchapter D. (V.A.C.S. Art. 1446c-0, Secs. 2.108(d) (part),
103-16 (e) (part).)
103-17 Sec. 33.122. REVIEW OF CERTAIN RATE DECISIONS. (a) Except
103-18 as provided by Subsections (b)-(f), for a period of 10 years
103-19 beginning on the later of August 28, 1989, or the effective date of
103-20 the rate ordinance that is the subject of the commission's final
103-21 order invoking the application of this section, the commission has
103-22 appellate jurisdiction over the rates charged by the municipally
103-23 owned utility, both inside and outside the municipality, in the
103-24 same manner and subject to the same commission powers and authority
103-25 provided by this subtitle for an electric utility.
104-1 (b) The commission has jurisdiction to review the cost
104-2 allocation and rate design methodologies adopted by the governing
104-3 body of a municipally owned utility subject to this section. If
104-4 the commission finds that the cost-of-service methodologies result
104-5 in rates that are unjust, unreasonable, or unreasonably
104-6 discriminatory, or unduly preferential to a customer class, the
104-7 commission may order the implementation of ratesetting
104-8 methodologies the commission finds reasonable.
104-9 (c) The commission shall ensure that a customer class, other
104-10 than a class in which the municipality is the customer of the
104-11 municipally owned utility, does not pay rates that result in a
104-12 relative rate of return of more than 115 percent under the
104-13 cost-of-service methodology found reasonable by the commission. A
104-14 customer class may not experience a percentage base rate increase
104-15 that is greater than 1-1/2 times the system average base increase.
104-16 In moving an above-cost class toward cost-of-service levels, each
104-17 class farthest above cost shall be moved sequentially toward cost
104-18 so that no above-cost class moves toward cost until no other class
104-19 is further removed from cost.
104-20 (d) A municipality subject to this section may design
104-21 residential rates, as a matter of intra-class rate design, to
104-22 accomplish reasonable energy conservation goals, notwithstanding
104-23 any other provision of this title.
104-24 (e) The commission's jurisdiction under this section may be
104-25 invoked by any party to a local rate proceeding required by this
105-1 section in the same manner as an appeal of the rates of an electric
105-2 utility under Section 33.051.
105-3 (f) The commission's jurisdiction under this section does
105-4 not extend to a municipally owned utility's:
105-5 (1) revenue requirements, whether base rate or fuel
105-6 revenues;
105-7 (2) invested capital;
105-8 (3) return on invested capital;
105-9 (4) debt service coverage ratio; or
105-10 (5) level of transfer of revenues from the utility to
105-11 the municipality's general fund.
105-12 (g) The governing body of a municipally owned utility
105-13 subject to this section shall establish procedures similar to the
105-14 procedures of a municipality that retains original jurisdiction
105-15 under Section 33.001 to regulate an electric utility operating in
105-16 the municipality. The procedures must include a public hearing
105-17 process in which an affected ratepayer is granted party status on
105-18 request and is grouped for purposes of participation in accordance
105-19 with common or divergent interests, including the particular
105-20 interests of all-electric residential ratepayers and residential
105-21 ratepayers outside the municipality.
105-22 (h) This section does not require the governing body of a
105-23 municipality or the governing board of a municipally owned utility
105-24 subject to this section to adopt procedures that require the use of
105-25 the Texas Rules of Evidence, the Texas Rules of Civil Procedure, or
106-1 the presentation of sworn testimony or any other form of sworn
106-2 evidence.
106-3 (i) The governing body of a municipally owned utility
106-4 subject to this section shall appoint a consumer advocate to
106-5 represent the interests of residential and small commercial
106-6 ratepayers in the municipality's local rate proceedings. The
106-7 consumer advocate's reasonable costs of participating in a
106-8 proceeding, including the reasonable costs of ratemaking
106-9 consultants and expert witnesses, shall be funded by and recovered
106-10 from residential and small commercial ratepayers.
106-11 (j) The commission shall adopt rules applicable to a party
106-12 to an appeal under Subchapter D that provide for the public
106-13 disclosure of financial and in-kind contributions and expenditures
106-14 related to preparing and filing an appeal petition and preparing
106-15 expert testimony or legal representation for an appeal. A party or
106-16 customer who is a member of a party who makes a financial
106-17 contribution or in-kind contribution to assist in an appeal by
106-18 another party or customer class under Subchapter D shall be
106-19 required, on a finding of the commission to that effect, to pay the
106-20 municipally owned utility a penalty equivalent in amount to two
106-21 times the amount of the contribution.
106-22 (k) This section does not limit the right of a party or
106-23 customer to spend money to represent its own interests following
106-24 the filing of a petition with the commission under Subchapter D.
106-25 (V.A.C.S. Art. 1446c-0, Sec. 2.108(d) (part).)
107-1 Sec. 33.123. REVIEW OF CERTAIN DECISIONS FOR RATES CHARGED
107-2 OUTSIDE MUNICIPALITY. (a) For a period of 10 years beginning on
107-3 the later of August 28, 1989, or the effective date of the rate
107-4 ordinance that is the subject of the commission's final order
107-5 invoking the application of this section, the commission has
107-6 appellate jurisdiction over the rates charged by the municipally
107-7 owned utility, outside the municipality, as provided by this
107-8 section.
107-9 (b) Except as otherwise provided by this section, a
107-10 ratepayer of a municipally owned utility subject to this section
107-11 who resides outside the municipality may appeal any action of the
107-12 governing body of a municipality affecting the rates charged by the
107-13 municipally owned utility outside the municipality by filing a
107-14 petition for review with the commission in the manner provided for
107-15 an appeal under Subchapter D. The petition must plainly disclose
107-16 that the cost of the appeal will be funded by a surcharge on the
107-17 monthly electric bills of ratepayers outside the municipality as
107-18 prescribed by the commission.
107-19 (c) After the commission approves the sufficiency of a
107-20 petition, the appellants shall submit to the office for approval a
107-21 budget itemizing the scope and expected cost of consultant services
107-22 to be purchased by the appellants in the appeal.
107-23 (d) Not later than the 120th day after the date the
107-24 commission enters its final order, the municipality shall assess a
107-25 onetime surcharge on a per capita basis among residential
108-1 ratepayers who reside outside the municipality to pay the
108-2 reasonable consultant and legal costs approved by the counsellor.
108-3 The municipality shall reimburse the appellants for incurred costs
108-4 not later than the 90th day after the date the commission enters
108-5 its final order.
108-6 (e) A municipality may not:
108-7 (1) include the costs associated with its defense of
108-8 an appeal under this section in the rates charged a ratepayer
108-9 outside the municipality; or
108-10 (2) if the municipality appeals an order entered by
108-11 the commission under this section, include the costs associated
108-12 with its appeal in the rates charged a ratepayer outside the
108-13 municipality.
108-14 (f) A ratepayer who brings an appeal under this section may
108-15 not receive funding for rate case expenses except from a
108-16 residential ratepayer who resides outside the municipality or from
108-17 another municipality inside whose boundaries the municipally owned
108-18 utility provides service. The commission shall adopt rules for
108-19 reporting financial and in-kind contributions in support of an
108-20 appeal under this section. If the commission finds that an
108-21 appellant has received contributions from a source other than from
108-22 a ratepayer who resides outside the municipality or from another
108-23 municipality, the appeal and each commission order entered in the
108-24 appeal are void.
108-25 (g) The commission has jurisdiction in an appeal under this
109-1 section to review and ensure that the revenue requirements of a
109-2 municipally owned utility subject to this section are reasonable.
109-3 The jurisdiction under this subsection does not extend to
109-4 regulating the use and level of a transfer of the utility's
109-5 revenues to the municipality's general fund.
109-6 (h) The commission has jurisdiction to review the cost
109-7 allocation and rate design methodologies adopted by the governing
109-8 body of a municipally owned utility subject to this section. If
109-9 the commission finds that the cost-of-service methodologies result
109-10 in rates that are unjust, unreasonable, or unreasonably
109-11 discriminatory or unduly preferential to a customer class, the
109-12 commission may order the implementation of ratesetting
109-13 methodologies the commission finds reasonable. The commission's
109-14 jurisdiction under this subsection does not include intra-class
109-15 residential rate design.
109-16 (i) An intervenor in an appeal under this section is limited
109-17 to presenting evidence on cost allocation and rate design
109-18 methodologies, except that an intervenor may present evidence in
109-19 support of the municipality on an issue related to utility
109-20 revenues.
109-21 (j) A ratepayer of a municipally owned utility subject to
109-22 this section who resides outside the municipality may elect to
109-23 petition for review under either this section or Subchapter D when
109-24 appealing a rate ordinance or other ratesetting action of the
109-25 governing body of a municipality. (V.A.C.S. Art. 1446c-0, Sec.
110-1 2.108(e) (part).)
110-2 CHAPTER 34. ELECTRICAL PLANNING
110-3 SUBCHAPTER A. GENERAL PROVISIONS
110-4 Sec. 34.001. DEFINITION
110-5 Sec. 34.002. APPLICABILITY TO MUNICIPALLY OWNED UTILITY
110-6 Sec. 34.003. ADOPTION OF INTEGRATED RESOURCE PLANNING
110-7 PROCESS
110-8 Sec. 34.004. STATEWIDE INTEGRATED RESOURCE PLAN
110-9 Sec. 34.005. PROMOTION OF RENEWABLE ENERGY TECHNOLOGIES
110-10 Sec. 34.006. REVIEW OF STATE TRANSMISSION SYSTEM
110-11 (Sections 34.007-34.020 reserved for expansion)
110-12 SUBCHAPTER B. PRELIMINARY INTEGRATED RESOURCE PLAN
110-13 Sec. 34.021. PRELIMINARY INTEGRATED RESOURCE PLAN REQUIRED
110-14 Sec. 34.022. CONTENTS OF PRELIMINARY INTEGRATED RESOURCE
110-15 PLAN
110-16 Sec. 34.023. PUBLIC HEARING ON PRELIMINARY INTEGRATED
110-17 RESOURCE PLAN
110-18 Sec. 34.024. INTERIM ORDER ON PRELIMINARY INTEGRATED
110-19 RESOURCE PLAN; DEADLINE
110-20 (Sections 34.025-34.050 reserved for expansion)
110-21 SUBCHAPTER C. RESOURCE SOLICITATION
110-22 Sec. 34.051. COMMENCEMENT OF SOLICITATION
110-23 Sec. 34.052. SUBMISSION OF BIDS; CONFIDENTIALITY
110-24 Sec. 34.053. ELECTRIC UTILITY DEMAND-SIDE MANAGEMENT
110-25 PROGRAMS
111-1 Sec. 34.054. QUALIFYING FACILITY BIDS; AVOIDED COSTS
111-2 Sec. 34.055. EVALUATION OF BIDS; NEGOTIATION OF CONTRACTS
111-3 Sec. 34.056. APPLICATION FOR CERTIFICATE OF CONVENIENCE
111-4 AND NECESSITY FOR RESOURCE NOT INCLUDED IN
111-5 PRELIMINARY PLAN
111-6 (Sections 34.057-34.100 reserved for expansion)
111-7 SUBCHAPTER D. FINAL INTEGRATED RESOURCE PLAN
111-8 Sec. 34.101. SUBMISSION OF FINAL INTEGRATED RESOURCE PLAN
111-9 Sec. 34.102. PUBLIC HEARING ON FINAL INTEGRATED RESOURCE
111-10 PLAN
111-11 Sec. 34.103. RULING ON FINAL INTEGRATED RESOURCE PLAN;
111-12 DEADLINE
111-13 Sec. 34.104. CERTIFICATION OF CONTRACTS
111-14 Sec. 34.105. CERTIFICATE OF CONVENIENCE AND NECESSITY
111-15 (Sections 34.106-34.150 reserved for expansion)
111-16 SUBCHAPTER E. ACQUISITION OF RESOURCES OUTSIDE THE
111-17 INTEGRATED RESOURCE PLANNING PROCESS
111-18 Sec. 34.151. EXEMPTIONS FROM SOLICITATION PROCESS
111-19 Sec. 34.152. NONGENERATING ELECTRIC UTILITY SOLICITATIONS
111-20 Sec. 34.153. EXEMPTION FOR CERTAIN FACILITIES
111-21 (Sections 34.154-34.170 reserved for expansion)
111-22 SUBCHAPTER F. MISCELLANEOUS PROVISIONS
111-23 Sec. 34.171. COST RECOVERY AND INCENTIVES
111-24 Sec. 34.172. RECONCILIATION OF RECOVERED COSTS
111-25 Sec. 34.173. RESOURCE PLANNING EXPENSES
112-1 CHAPTER 34. ELECTRICAL PLANNING
112-2 SUBCHAPTER A. GENERAL PROVISIONS
112-3 Sec. 34.001. DEFINITION. In this chapter, "electric
112-4 utility" includes a river authority subject to Subchapter B,
112-5 Chapter 32, with respect to the area served by the river authority
112-6 on January 1, 1975. (V.A.C.S. Art. 1446c-0, Sec. 2.051(aa).)
112-7 Sec. 34.002. APPLICABILITY TO MUNICIPALLY OWNED UTILITY. A
112-8 municipally owned utility is not subject to the requirements of
112-9 this chapter, except that every three years each municipally owned
112-10 utility shall submit to the commission a report containing the
112-11 information prescribed by Section 34.022. (V.A.C.S. Art. 1446c-0,
112-12 Sec. 2.051(g).)
112-13 Sec. 34.003. ADOPTION OF INTEGRATED RESOURCE PLANNING
112-14 PROCESS. (a) The commission by rule shall develop an integrated
112-15 resource planning process to provide reliable energy service at the
112-16 lowest reasonable system cost.
112-17 (b) In determining the lowest reasonable system cost of an
112-18 electric utility's integrated resource plan, the commission shall
112-19 consider:
112-20 (1) direct costs;
112-21 (2) the effect on the rates and bills of various types
112-22 of customers;
112-23 (3) minimization of the risks of future fuel costs and
112-24 regulations;
112-25 (4) the appropriateness and reliability of the mix of
113-1 resources; and
113-2 (5) the cost of compliance with environmental
113-3 protection requirements of all applicable state and federal laws,
113-4 rules, and orders.
113-5 (c) An appropriate and reliable mix under Subsection (b)(4)
113-6 may include a portfolio of cost-effective sources of power,
113-7 including fueled and nonfueled resources, such as renewable
113-8 resources and conservation measures, and a mixture of long-term and
113-9 short-term contracts.
113-10 (d) In establishing a requirement under this chapter,
113-11 including a reporting requirement, the commission shall consider
113-12 and recognize the different capabilities of small and large
113-13 electric utilities. (V.A.C.S. Art. 1446c-0, Secs. 2.051(a), (d).)
113-14 Sec. 34.004. STATEWIDE INTEGRATED RESOURCE PLAN. (a) The
113-15 commission by rule shall adopt and periodically update a statewide
113-16 integrated resource plan that includes the commission's long-term
113-17 resource planning goals. The commission shall notify each electric
113-18 utility of the approval of the plan.
113-19 (b) The commission shall send a report on the statewide
113-20 integrated resource plan to the governor when it adopts or revises
113-21 the plan and make the report available to the public.
113-22 (c) The report on the statewide integrated resource plan
113-23 must include:
113-24 (1) historical data for electric consumption statewide
113-25 and by each electric utility;
114-1 (2) historical data for electric generation by each
114-2 electric utility and by type of capacity, including alternative
114-3 energy sources;
114-4 (3) an inventory of generation capacity statewide and
114-5 by each electric utility;
114-6 (4) quantitative data on demand-side management
114-7 programs to the extent the commission determines necessary;
114-8 (5) each generating electric utility's forecast
114-9 without adjustment;
114-10 (6) the commission's long-term resource planning goals
114-11 included in the plan;
114-12 (7) a projection of the need for electric services;
114-13 (8) a description of the approved individual
114-14 integrated resource plan of each electric utility; and
114-15 (9) an assessment of transmission planning being
114-16 conducted by electric utilities in this state. (V.A.C.S.
114-17 Art. 1446c-0, Secs. 2.051(b), (c).)
114-18 Sec. 34.005. PROMOTION OF RENEWABLE ENERGY TECHNOLOGIES.
114-19 The commission shall adopt rules consistent with the integrated
114-20 resource planning process to promote the development of renewable
114-21 energy technologies. (V.A.C.S. Art. 1446c-0, Sec. 2.051(v).)
114-22 Sec. 34.006. REVIEW OF STATE TRANSMISSION SYSTEM. In
114-23 carrying out its duties related to the integrated resource planning
114-24 process, the commission may review this state's transmission system
114-25 and make recommendations to electric utilities on the need to build
115-1 new power lines, upgrade power lines, and make other necessary
115-2 improvements and additions. (V.A.C.S. Art. 1446c-0, Sec. 2.051(w)
115-3 (part).)
115-4 (Sections 34.007-34.020 reserved for expansion)
115-5 SUBCHAPTER B. PRELIMINARY INTEGRATED RESOURCE PLAN
115-6 Sec. 34.021. PRELIMINARY INTEGRATED RESOURCE PLAN REQUIRED.
115-7 (a) Every three years each nongenerating electric utility planning
115-8 to construct generating resources and each generating electric
115-9 utility shall submit to the commission a preliminary integrated
115-10 resource plan covering a 10-year period.
115-11 (b) The commission by rule shall:
115-12 (1) establish a staggered schedule for the submission
115-13 of integrated resource plans by electric utilities;
115-14 (2) prescribe the form and manner in which a plan must
115-15 be submitted;
115-16 (3) adopt filing requirements and schedules; and
115-17 (4) prescribe the methods by which an electric utility
115-18 may recover supply-side and demand-side costs.
115-19 (c) The commission by rule may:
115-20 (1) define the scope and nature of public
115-21 participation in the development of the integrated resource plan;
115-22 and
115-23 (2) establish the general guidelines an electric
115-24 utility shall use to evaluate and to select or reject a resource,
115-25 including procedures governing the solicitation process. (V.A.C.S.
116-1 Art. 1446c-0, Sec. 2.051(e).)
116-2 Sec. 34.022. CONTENTS OF PRELIMINARY INTEGRATED RESOURCE
116-3 PLAN. (a) A preliminary integrated resource plan must include:
116-4 (1) the electric utility's forecast of future demands;
116-5 (2) an estimate of the energy savings and demand
116-6 reduction the electric utility can achieve during the time covered
116-7 by the plan by use of demand-side management resources and the
116-8 range of possible costs for those resources;
116-9 (3) if additional supply-side resources are needed to
116-10 meet future demand, an estimate of:
116-11 (A) the amount and operational characteristics
116-12 of the additional capacity needed;
116-13 (B) the types of viable supply-side resources
116-14 for meeting that need; and
116-15 (C) the range of probable costs of those
116-16 resources;
116-17 (4) if necessary, proposed requests for proposals to
116-18 be used in a solicitation of demand-side or supply-side resources,
116-19 or both;
116-20 (5) the specific criteria the electric utility will
116-21 use to evaluate and to select or reject demand-side or supply-side
116-22 resources;
116-23 (6) the methods by which the electric utility intends
116-24 to monitor demand-side or supply-side resources, or both as
116-25 appropriate, after selection;
117-1 (7) the method by which the electric utility intends
117-2 to allocate costs;
117-3 (8) a description of how the electric utility will
117-4 achieve equity among customer classes and provide demand-side
117-5 programs to each customer class, including tenants and low-income
117-6 ratepayers;
117-7 (9) any proposed incentive factors; and
117-8 (10) any other information the commission requires.
117-9 (b) If the commission adopts under Section 34.021(c) the
117-10 general guidelines an electric utility shall use to evaluate and to
117-11 select or reject a resource, the specific criteria proposed by the
117-12 electric utility under Subsection (a)(5) may deviate from those
117-13 guidelines only on a showing of good cause. (V.A.C.S.
117-14 Art. 1446c-0, Sec. 2.051(f).)
117-15 Sec. 34.023. PUBLIC HEARING ON PRELIMINARY INTEGRATED
117-16 RESOURCE PLAN. (a) If a preliminary integrated resource plan
117-17 includes a proposed solicitation of demand-side or supply-side
117-18 resources, the commission, on its own motion or on the motion of
117-19 the electric utility or an affected person, may convene a public
117-20 hearing on the adequacy and merits of the plan.
117-21 (b) Any interested person may intervene in the hearing and,
117-22 at the hearing, may present evidence and cross-examine witnesses
117-23 regarding the contents and adequacy of the preliminary integrated
117-24 resource plan.
117-25 (c) Discovery by a participant in the hearing is limited to:
118-1 (1) an issue relating to the development of the
118-2 preliminary integrated resource plan;
118-3 (2) a fact issue included in the plan; and
118-4 (3) other issues the commission is required to decide
118-5 relating to the plan.
118-6 (d) A hearing before the commission is not required for a
118-7 preliminary integrated resource plan filed by a river authority or
118-8 generating electric cooperative that does not intend to build a new
118-9 generating plant. (V.A.C.S. Art. 1446c-0, Sec. 2.051(h) (part).)
118-10 Sec. 34.024. INTERIM ORDER ON PRELIMINARY INTEGRATED
118-11 RESOURCE PLAN; DEADLINE. (a) After conducting a hearing on a
118-12 preliminary integrated resource plan under Section 34.023, the
118-13 commission shall determine:
118-14 (1) whether the plan is based on substantially
118-15 accurate data and an adequate method of forecasting;
118-16 (2) whether the plan identifies and takes into account
118-17 any present and projected reduction in the demand for energy that
118-18 may result from cost-effective measures to improve conservation and
118-19 energy efficiency in various customer classes of the area being
118-20 served;
118-21 (3) if additional supply-side resources are needed to
118-22 meet future demand, whether the plan adequately demonstrates:
118-23 (A) the amount and operational characteristics
118-24 of the additional capacity needed;
118-25 (B) the types of viable supply-side resources
119-1 for meeting that need; and
119-2 (C) the range of probable costs of those
119-3 resources;
119-4 (4) whether the plan describes opportunities for
119-5 appropriate persons to participate in developing the plan;
119-6 (5) whether the specific criteria the electric utility
119-7 will use to evaluate and to select or reject resources are
119-8 reasonable and consistent with the guidelines of the integrated
119-9 resource planning process;
119-10 (6) whether the cost allocation method proposed by the
119-11 electric utility is reasonable;
119-12 (7) how the electric utility will achieve equity among
119-13 customer classes and provide demand-side programs to each customer
119-14 class, including tenants and low-income ratepayers; and
119-15 (8) whether any incentive factors are appropriate and,
119-16 if so, the levels of the factors.
119-17 (b) Not later than the 180th day after the date an electric
119-18 utility submits a preliminary integrated resource plan, the
119-19 commission shall issue an interim order approving the plan,
119-20 approving the plan as modified by the commission, or remanding the
119-21 plan for additional proceedings. The commission may extend the
119-22 deadline for not more than 30 days for extenuating circumstances
119-23 encountered in the development and processing of the plan if the
119-24 circumstances are fully explained and agreed on by the
119-25 commissioners. (V.A.C.S. Art. 1446c-0, Secs. 2.051(i), (j).)
120-1 (Sections 34.025-34.050 reserved for expansion)
120-2 SUBCHAPTER C. RESOURCE SOLICITATION
120-3 Sec. 34.051. COMMENCEMENT OF SOLICITATION. (a) After the
120-4 commission approves an electric utility's preliminary integrated
120-5 resource plan, the utility shall conduct solicitations of
120-6 demand-side and supply-side resources as prescribed by the plan.
120-7 (b) In addition to soliciting resources from a nonaffiliated
120-8 third party, an electric utility may:
120-9 (1) prepare and submit a bid of a new utility
120-10 demand-side management program as prescribed by Section 34.053;
120-11 (2) receive bids from one or more affiliates; and
120-12 (3) request a certificate of convenience and necessity
120-13 for a new rate-based generating plant. (V.A.C.S. Art. 1446c-0,
120-14 Sec. 2.051(k).)
120-15 Sec. 34.052. SUBMISSION OF BIDS; CONFIDENTIALITY. (a) Each
120-16 bidder under Section 34.051, including the electric utility
120-17 conducting the solicitation and each bidding affiliate, shall
120-18 submit two copies of its bid to the commission. The commission
120-19 shall ensure that the electric utility has access to all bids at
120-20 the same time.
120-21 (b) The commission shall keep a copy of each bid submitted
120-22 by the electric utility conducting the solicitation or a bidding
120-23 affiliate to determine whether the utility complied with the
120-24 criteria established for conducting the solicitation.
120-25 (c) A bid submitted or retained under this section is
121-1 confidential and is not subject to disclosure under Chapter 552,
121-2 Government Code. (V.A.C.S. Art. 1446c-0, Sec. 2.051(l).)
121-3 Sec. 34.053. ELECTRIC UTILITY DEMAND-SIDE MANAGEMENT
121-4 PROGRAMS. (a) An electric utility that intends to use a proposed
121-5 demand-side management program to meet a need identified by the
121-6 utility's preliminary integrated resource plan must prepare a bid
121-7 reflecting that resource.
121-8 (b) A bid prepared by an electric utility under this section
121-9 must comply with the solicitation, evaluation, selection, and
121-10 rejection criteria specified by the utility's preliminary
121-11 integrated resource plan. The electric utility may not give
121-12 preferential treatment or consideration to the bid. (V.A.C.S.
121-13 Art. 1446c-0, Sec. 2.051(m).)
121-14 Sec. 34.054. QUALIFYING FACILITY BIDS; AVOIDED COSTS.
121-15 (a) The submission of a bid under this chapter by a qualifying
121-16 facility, regardless of whether the bid is accepted or rejected,
121-17 with respect to the capacity need for which the bid is submitted:
121-18 (1) is a waiver by the qualifying facility of any
121-19 right it may otherwise have under law to sell capacity to the
121-20 electric utility;
121-21 (2) represents the qualifying facility's agreement to
121-22 negotiate a rate for the purchase of capacity and terms relating to
121-23 the purchase that differ from the rate or terms that would
121-24 otherwise be required by 18 CFR Chapter I, Subchapter K, Part 292,
121-25 Subpart C; and
122-1 (3) is a waiver by the qualifying facility of its
122-2 right to the rate or terms for a purchase of capacity by the
122-3 electric utility that might otherwise be required by 18 CFR Chapter
122-4 I, Subchapter K, Part 292, Subpart C.
122-5 (b) The avoided capacity costs under 18 CFR Chapter I,
122-6 Subchapter K, Part 292, Subpart C, of an electric utility that has
122-7 submitted a preliminary integrated resource plan to the commission
122-8 under this chapter is $0 and remains $0, with respect to any
122-9 capacity needs shown in the preliminary plan or final plan that are
122-10 to be satisfied by resources approved in the utility's final plan.
122-11 (c) This section does not affect the validity of a contract
122-12 entered into between an electric utility and a qualifying facility
122-13 for any purchase. (V.A.C.S. Art. 1446c-0, Sec. 2.051(z).)
122-14 Sec. 34.055. EVALUATION OF BIDS; NEGOTIATION OF CONTRACTS.
122-15 (a) An electric utility shall evaluate each bid submitted,
122-16 including an affiliate bid, in accordance with the criteria
122-17 specified by the utility's preliminary integrated resource plan and
122-18 shall negotiate each necessary contract.
122-19 (b) An electric utility is not required to accept a bid and
122-20 may reject any or all bids in accordance with the selection and
122-21 rejection criteria specified by the utility's preliminary
122-22 integrated resource plan. (V.A.C.S. Art. 1446c-0, Sec. 2.051(n)
122-23 (part).)
122-24 Sec. 34.056. APPLICATION FOR CERTIFICATE OF CONVENIENCE AND
122-25 NECESSITY FOR RESOURCE NOT INCLUDED IN PRELIMINARY PLAN. If the
123-1 results of the solicitation and contract negotiations do not meet
123-2 the supply-side needs identified by the electric utility's
123-3 preliminary integrated resource plan, the utility may apply for a
123-4 certificate of convenience and necessity for a utility-owned
123-5 resource addition, notwithstanding that a solicitation was
123-6 conducted and the resource addition was not included in the
123-7 approved plan. (V.A.C.S. Art. 1446c-0, Sec. 2.051(n) (part).)
123-8 (Sections 34.057-34.100 reserved for expansion)
123-9 SUBCHAPTER D. FINAL INTEGRATED RESOURCE PLAN
123-10 Sec. 34.101. SUBMISSION OF FINAL INTEGRATED RESOURCE PLAN.
123-11 After conducting each solicitation and negotiating each contract,
123-12 an electric utility shall submit a proposed final integrated
123-13 resource plan to the commission. The proposed plan must include:
123-14 (1) the results of each solicitation;
123-15 (2) any contracts for resources;
123-16 (3) the terms under which the electric utility will
123-17 provide resources to meet a need identified by the preliminary
123-18 integrated resource plan, if the electric utility accepts a bid
123-19 submitted under Section 34.053; and
123-20 (4) an application for a certificate of convenience
123-21 and necessity, if necessary. (V.A.C.S. Art. 1446c-0, Sec.
123-22 2.051(o).)
123-23 Sec. 34.102. PUBLIC HEARING ON FINAL INTEGRATED RESOURCE
123-24 PLAN. (a) The commission, on request by an affected person, shall
123-25 convene a public hearing on the reasonableness and
124-1 cost-effectiveness of a proposed final integrated resource plan.
124-2 The commission shall convene the hearing, if requested, not later
124-3 than the 90th day after the date the electric utility files its
124-4 proposed plan.
124-5 (b) Any interested person may intervene in the hearing and,
124-6 at the hearing, may present evidence and cross-examine witnesses
124-7 regarding the reasonableness and cost-effectiveness of the proposed
124-8 final integrated resource plan.
124-9 (c) A party to the hearing may not litigate or conduct
124-10 discovery on an issue that was or could have been litigated in
124-11 connection with the filing of the electric utility's preliminary
124-12 integrated resource plan.
124-13 (d) To the extent permitted by federal law, the commission
124-14 may issue a written order for access to the books, accounts,
124-15 memoranda, contracts, or other records of an exempt wholesale
124-16 generator or power marketer selling energy at wholesale to an
124-17 electric utility, if access is required for the effective discharge
124-18 of the commission's regulatory responsibilities under this
124-19 subtitle. The materials obtained by the commission under this
124-20 subsection are confidential and are not subject to disclosure under
124-21 Chapter 552, Government Code. (V.A.C.S. Art. 1446c-0, Sec.
124-22 2.051(p).)
124-23 Sec. 34.103. RULING ON FINAL INTEGRATED RESOURCE PLAN;
124-24 DEADLINE. (a) After conducting a hearing on a proposed final
124-25 integrated resource plan under Section 34.102, the commission shall
125-1 determine whether:
125-2 (1) the final plan was developed in accordance with
125-3 the electric utility's preliminary integrated resource plan and
125-4 commission rules;
125-5 (2) the resource solicitations, evaluations,
125-6 selections, and rejections were conducted in accordance with the
125-7 criteria included in the utility's preliminary plan;
125-8 (3) the final plan is cost-effective;
125-9 (4) the final plan is equitable among customer classes
125-10 and provides demand-side programs to each customer class, including
125-11 tenants and low-income ratepayers;
125-12 (5) the commission should certify each contract and
125-13 electric utility bid submitted under Section 34.053 that resulted
125-14 from the solicitations; and
125-15 (6) the commission should grant a requested
125-16 certificate of convenience and necessity for an electric
125-17 utility-owned resource addition.
125-18 (b) Not later than the 180th day after the date an electric
125-19 utility submits a proposed final integrated resource plan, the
125-20 commission shall issue a final order approving the plan, approving
125-21 the plan as modified by the commission, or remanding the plan for
125-22 additional proceedings. (V.A.C.S. Art. 1446c-0, Secs. 2.051(q),
125-23 (t).)
125-24 Sec. 34.104. CERTIFICATION OF CONTRACTS. (a) In
125-25 determining whether to certify a supply-side or demand-side
126-1 contract that results from a solicitation, the commission shall
126-2 consider:
126-3 (1) the reliability, financial condition, and safety
126-4 of the resource contract; and
126-5 (2) whether the solicitation, evaluation, and
126-6 selection of the resource contract was conducted in accordance with
126-7 the criteria included in the electric utility's preliminary
126-8 integrated resource plan.
126-9 (b) In addition to the considerations in Subsection (a), if
126-10 a contract proposed for certification is between an electric
126-11 utility and its affiliate, the commission shall determine whether:
126-12 (1) the utility treated and considered the affiliate's
126-13 bid in the same manner it treated and considered each other bid
126-14 intended to meet the same resource needs;
126-15 (2) the transaction will benefit consumers;
126-16 (3) the transaction violates any state law, including
126-17 least-cost planning;
126-18 (4) the transaction provides the affiliate with an
126-19 unfair competitive advantage by virtue of its affiliation or
126-20 association with the utility;
126-21 (5) the transaction is in the public interest; and
126-22 (6) the commission has sufficient regulatory
126-23 authority, resources, and access to the books and records of the
126-24 utility and its affiliate to make the determination required by
126-25 this subsection.
127-1 (c) The commission may not certify a contract for a new
127-2 purchase of power by an electric utility unless the utility has
127-3 determined, after giving consideration to consistently applied
127-4 regional or national reliability standards, guidelines, or
127-5 criteria, that:
127-6 (1) the contract would not unreasonably impair the
127-7 continued reliability of electric systems affected by the purchase;
127-8 and
127-9 (2) the purchase can reasonably be expected to produce
127-10 benefits to customers of the purchasing utility.
127-11 (d) Commission certification of a resource contract under
127-12 this section does not negate the necessity of the resource to
127-13 comply with all applicable environmental and siting regulations.
127-14 (e) In establishing an electric utility's rates, a
127-15 regulatory authority shall consider a payment made under a
127-16 certified contract to be a reasonable and necessary operating
127-17 expense of the utility during the period for which the certified
127-18 contract is effective. A regulatory authority may provide for
127-19 monthly recovery of approved costs of the contract as those costs
127-20 are incurred, including any markup allowed by the commission.
127-21 (V.A.C.S. Art. 1446c-0, Sec. 2.051(r).)
127-22 Sec. 34.105. CERTIFICATE OF CONVENIENCE AND NECESSITY.
127-23 (a) In determining whether to grant a certificate of convenience
127-24 and necessity requested by an electric utility in the utility's
127-25 proposed final integrated resource plan, the commission shall
128-1 consider:
128-2 (1) the effect of granting the certificate on the
128-3 recipient of the certificate and on any electric utility serving
128-4 the proximate area; and
128-5 (2) other factors, such as:
128-6 (A) community values;
128-7 (B) recreational and park areas;
128-8 (C) historical and aesthetic values;
128-9 (D) environmental integrity; and
128-10 (E) the probable improvement of service or
128-11 lowering of cost to consumers in the area if the certificate is
128-12 granted.
128-13 (b) The commission shall grant a requested certificate of
128-14 convenience and necessity as part of the commission's approval of a
128-15 final integrated resource plan if the commission finds that:
128-16 (1) the proposed resource addition is necessary under
128-17 the plan;
128-18 (2) the proposed resource addition is the best and
128-19 most economical choice of technology for the service area; and
128-20 (3) cost-effective conservation and other
128-21 cost-effective alternative energy sources cannot reasonably meet
128-22 the need. (V.A.C.S. Art. 1446c-0, Sec. 2.051(s).)
128-23 (Sections 34.106-34.150 reserved for expansion)
129-1 SUBCHAPTER E. ACQUISITION OF RESOURCES OUTSIDE THE
129-2 INTEGRATED RESOURCE PLANNING PROCESS
129-3 Sec. 34.151. EXEMPTIONS FROM SOLICITATION PROCESS. (a) The
129-4 commission shall adopt rules allowing an electric utility to add
129-5 new or incremental resources outside the solicitation process,
129-6 consistent with the utility's last approved integrated resource
129-7 planning goals, including resources listed in Subsection (b).
129-8 (b) Consistent with an electric utility's last approved
129-9 integrated resource planning goals, if any, an electric utility,
129-10 including a nongenerating electric utility, may add new or
129-11 incremental resources outside the solicitation process, including:
129-12 (1) contract renegotiation for existing capacity from
129-13 an electric cooperative or nonaffiliated power generating facility;
129-14 (2) electric cooperative or nonaffiliated demand-side
129-15 management programs or renewable resources;
129-16 (3) capacity purchases with two-year or shorter terms
129-17 from an electric cooperative or nonaffiliated power supplier;
129-18 (4) capacity purchases necessary to satisfy
129-19 unanticipated emergency conditions;
129-20 (5) the exercise of an option in a purchased power
129-21 contract with an electric cooperative or nonaffiliated supplier;
129-22 and
129-23 (6) renewable distributed resources, located at or
129-24 near the point of consumption, if the resources are less costly
129-25 than transmission extensions or upgrades.
130-1 (c) The addition of new or incremental resources by an
130-2 electric utility under Subsection (b) does not require an amendment
130-3 to the utility's integrated resource plan. (V.A.C.S. Art. 1446c-0,
130-4 Secs. 2.051(u), (x), (y).)
130-5 Sec. 34.152. NONGENERATING ELECTRIC UTILITY SOLICITATIONS.
130-6 (a) A nongenerating electric utility not planning to construct
130-7 generating facilities shall conduct a solicitation of resources if
130-8 the utility seeks to purchase from a wholesale power supplier other
130-9 than the utility's existing power supplier more than 25 percent of
130-10 the utility's peak demand or more than 70 megawatts. A
130-11 nongenerating electric utility is not required to conduct a
130-12 solicitation for a purchase from an existing power supplier and the
130-13 utility may add new or incremental resources outside the
130-14 solicitation process as provided by Section 34.151.
130-15 (b) The commission, on request by the nongenerating electric
130-16 utility, may review a proposed contract for resources resulting
130-17 from a solicitation to determine the contract's reasonableness.
130-18 The commission shall certify the proposed contract if the
130-19 commission finds that the contract is reasonable. The commission
130-20 shall make its determination not later than the 90th day after the
130-21 date the proposed contract is submitted.
130-22 (c) This section does not alter or amend a wholesale power
130-23 supply contract executed before September 1, 1995. (V.A.C.S.
130-24 Art. 1446c-0, Sec. 2.051(bb) (part).)
130-25 Sec. 34.153. EXEMPTION FOR CERTAIN FACILITIES. (a) To
131-1 provide for the orderly transition to an integrated resource
131-2 planning process and to avoid delays in the construction of
131-3 resources necessary to provide electric service, an integrated
131-4 resource plan is not required for issuance of a certificate of
131-5 convenience and necessity for the construction of a generating
131-6 facility if:
131-7 (1) the commission approved the electric utility's
131-8 notice of intent relating to the facility before September 1, 1995;
131-9 (2) the electric utility has conducted a solicitation
131-10 for resources to meet the need identified by the utility's notice
131-11 of intent in accordance with commission rules in effect at the time
131-12 of the solicitation; and
131-13 (3) the electric utility has submitted to the
131-14 commission the results of the solicitation and an application for
131-15 certification of the facility to meet the need identified by the
131-16 utility's notice of intent.
131-17 (b) The commission shall grant a certificate of convenience
131-18 and necessity for a generating facility to which this section
131-19 applies if:
131-20 (1) the facility is needed to meet future demand;
131-21 (2) the facility is the best and most economical
131-22 choice of technology for the service area; and
131-23 (3) cost-effective conservation and cost-effective
131-24 alternative energy sources cannot reasonably meet the need.
131-25 (V.A.C.S. Art. 1446c-0, Sec. 2.051(dd).)
132-1 (Sections 34.154-34.170 reserved for expansion)
132-2 SUBCHAPTER F. MISCELLANEOUS PROVISIONS
132-3 Sec. 34.171. COST RECOVERY AND INCENTIVES. In carrying out
132-4 its duties related to the integrated resource planning process, the
132-5 commission may:
132-6 (1) allow timely recovery of the reasonable costs of
132-7 conservation, load management, and purchased power, notwithstanding
132-8 Section 36.201; and
132-9 (2) authorize additional incentives for conservation,
132-10 load management, purchased power, and renewable resources.
132-11 (V.A.C.S. Art. 1446c-0, Sec. 2.051(w) (part).)
132-12 Sec. 34.172. RECONCILIATION OF RECOVERED COSTS. (a) To the
132-13 extent that the commission authorizes an electric utility to
132-14 recover the costs of demand-side management programs, conservation,
132-15 load management, or purchased power through cost recovery factors,
132-16 the commission shall make a final reconciliation of the costs
132-17 recovered through the cost recovery factors.
132-18 (b) The commission shall adopt rules regarding:
132-19 (1) the timing of reconciliations for each cost
132-20 recovery factor;
132-21 (2) the information an electric utility must file in
132-22 support of each reconciliation; and
132-23 (3) other matters necessary to accomplish the
132-24 reconciliation.
132-25 (c) Each reconciliation must:
133-1 (1) review the reasonableness of the electric
133-2 utility's administration of the contracts and programs the costs of
133-3 which are being reconciled; and
133-4 (2) reconcile the revenue collected under each cost
133-5 recovery factor and the costs that the utility incurred on
133-6 purchased power, demand-side management, conservation, or load
133-7 management, as applicable, during the reconciliation period.
133-8 (V.A.C.S. Art. 1446c-0, Sec. 2.051(cc).)
133-9 Sec. 34.173. RESOURCE PLANNING EXPENSES. (a) To the extent
133-10 that an electric utility is required by the commission to reimburse
133-11 a municipality for expenses incurred while participating in a
133-12 proceeding under this chapter, the commission shall, as part of the
133-13 commission's approval of the utility's integrated resource plan,
133-14 authorize a surcharge to be included in the utility's rates to
133-15 allow the utility to recover the amount paid to the municipality
133-16 before the utility's next preliminary integrated resource plan is
133-17 filed.
133-18 (b) An electric utility may recover its reasonable expenses
133-19 arising from planning, preparing, and participating in a proceeding
133-20 under this chapter only after commission review is conducted in
133-21 accordance with Subchapter C or D, Chapter 36. (V.A.C.S.
133-22 Art. 1446c-0, Sec. 2.051(ee).)
134-1 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS
134-2 SUBCHAPTER A. COMPETITION AND TRANSMISSION ACCESS
134-3 IN THE WHOLESALE MARKET
134-4 Sec. 35.001. DEFINITION
134-5 Sec. 35.002. RIGHT TO COMPETE AT WHOLESALE
134-6 Sec. 35.003. PURCHASE FROM AFFILIATE; UNDUE PREFERENCE
134-7 PROHIBITED
134-8 Sec. 35.004. PROVISION OF TRANSMISSION SERVICE
134-9 Sec. 35.005. AUTHORITY TO ORDER TRANSMISSION SERVICE
134-10 Sec. 35.006. RULES RELATED TO WHOLESALE TRANSMISSION SERVICE,
134-11 RATES, AND ACCESS
134-12 Sec. 35.007. TARIFFS REQUIRED
134-13 Sec. 35.008. ALTERNATIVE DISPUTE RESOLUTION
134-14 Sec. 35.0081. REPORT TO LEGISLATURE CONCERNING STRANDED
134-15 COST
134-16 (Sections 35.009-35.030 reserved for expansion)
134-17 SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS AND POWER MARKETERS
134-18 Sec. 35.031. AUTHORITY TO OPERATE
134-19 Sec. 35.032. COMMISSION REGISTRATION AND REQUIRED REPORTS
134-20 Sec. 35.033. AFFILIATE WHOLESALE PROVIDER
134-21 Sec. 35.034. TRANSFER OF ASSETS
134-22 Sec. 35.035. VALUATION AND ACCOUNTING OF TRANSFERRED ASSETS
134-23 (Sections 35.036-35.060 reserved for expansion)
134-24 SUBCHAPTER C. QUALIFYING FACILITIES
134-25 Sec. 35.061. ENCOURAGEMENT OF ECONOMICAL PRODUCTION
135-1 Sec. 35.062. APPLICATION FOR CERTIFICATION
135-2 Sec. 35.063. HEARING
135-3 Sec. 35.064. CERTIFICATION STANDARDS
135-4 Sec. 35.065. DEADLINES FOR COMMISSION ACTION
135-5 Sec. 35.066. TERM OF CERTIFICATION
135-6 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS
135-7 SUBCHAPTER A. COMPETITION AND TRANSMISSION ACCESS
135-8 IN THE WHOLESALE MARKET
135-9 Sec. 35.001. DEFINITION. In this subchapter, "electric
135-10 utility" includes a municipally owned utility. (V.A.C.S.
135-11 Art. 1446c-0, Sec. 2.057(g).)
135-12 Sec. 35.002. RIGHT TO COMPETE AT WHOLESALE. A provider of
135-13 generation, including an electric utility affiliate, exempt
135-14 wholesale generator, and qualifying facility, may compete for the
135-15 business of selling power. (V.A.C.S. Art. 1446c-0, Sec. 2.057(f)
135-16 (part).)
135-17 Sec. 35.003. PURCHASE FROM AFFILIATE; UNDUE PREFERENCE
135-18 PROHIBITED. (a) An electric utility may purchase power from an
135-19 affiliate in accordance with this title.
135-20 (b) An electric utility may not grant an undue preference to
135-21 a person in connection with the utility's purchase or sale of
135-22 electric energy at wholesale or other utility service. (V.A.C.S.
135-23 Art. 1446c-0, Sec. 2.057(f) (part).)
135-24 Sec. 35.004. PROVISION OF TRANSMISSION SERVICE. (a) An
135-25 electric utility that owns or operates transmission facilities
136-1 shall provide wholesale transmission service at rates and terms,
136-2 including terms of access, that are comparable to the rates and
136-3 terms of the utility's use of its system.
136-4 (b) The commission shall ensure that an electric utility
136-5 provides nondiscriminatory access to transmission service for
136-6 qualifying facilities, exempt wholesale generators, power
136-7 marketers, and other electric utilities.
136-8 (c) When an electric utility provides transmission service
136-9 at the request of a third party, the commission shall ensure that
136-10 the utility recovers the utility's reasonable costs in providing
136-11 transmission services necessary for the transaction from the entity
136-12 for which the transmission is provided so that the utility's other
136-13 customers do not bear the costs of the service. (V.A.C.S.
136-14 Art. 1446c-0, Secs. 2.057(a) (part), (c).)
136-15 Sec. 35.005. AUTHORITY TO ORDER TRANSMISSION SERVICE.
136-16 (a) The commission may require an electric utility to provide
136-17 transmission service at wholesale to another electric utility, a
136-18 qualifying facility, an exempt wholesale generator, or a power
136-19 marketer and may determine whether terms for the transmission
136-20 service are reasonable.
136-21 (b) The commission may require transmission service at
136-22 wholesale, including the construction or enlargement of a facility,
136-23 in a proceeding not related to approval of an integrated resource
136-24 plan.
136-25 (c) The commission may not issue a decision or rule relating
137-1 to transmission service that is contrary to an applicable decision,
137-2 rule, or policy statement of a federal regulatory agency having
137-3 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 2.056(a).)
137-4 Sec. 35.006. RULES RELATED TO WHOLESALE TRANSMISSION
137-5 SERVICE, RATES, AND ACCESS. (a) The commission shall adopt rules
137-6 relating to wholesale transmission service, rates, and access. The
137-7 rules:
137-8 (1) must be consistent with the standards in this
137-9 subchapter;
137-10 (2) may not be contrary to federal law, including any
137-11 applicable decision, rule, or policy statement of a federal
137-12 regulatory agency having jurisdiction;
137-13 (3) must require transmission services that are not
137-14 less than the transmission services the Federal Energy Regulatory
137-15 Commission may require in similar circumstances;
137-16 (4) must require that an electric utility provide all
137-17 ancillary services associated with the utility's discounted
137-18 wholesale sales at the same prices and under the same terms as the
137-19 services are provided to a third person; and
137-20 (5) must require that an electric utility provide all
137-21 ancillary services associated with the utility's discounted
137-22 wholesale sales to a third person on request.
137-23 (b) The commission shall adopt rules relating to the
137-24 registration and reporting requirements of a qualifying facility,
137-25 exempt wholesale generator, and power marketer. (V.A.C.S.
138-1 Art. 1446c-0, Secs. 2.057(a) (part), (b).)
138-2 Sec. 35.007. TARIFFS REQUIRED. (a) Except as provided by
138-3 Subsection (b), an electric utility that owns or operates a
138-4 transmission facility shall file a tariff in compliance with
138-5 commission rules adopted under Section 35.006.
138-6 (b) An electric utility is not required to file a tariff
138-7 under this section if the utility's terms for access and pricing
138-8 for wholesale transmission service are included in another electric
138-9 utility's tariff.
138-10 (c) An electric utility shall file a tariff required by this
138-11 section with the appropriate state or federal regulatory agency
138-12 having jurisdiction over the utility's transmission service.
138-13 (V.A.C.S. Art. 1446c-0, Sec. 2.057(a) (part).)
138-14 Sec. 35.008. ALTERNATIVE DISPUTE RESOLUTION. The commission
138-15 may require that each party to a dispute concerning prices or terms
138-16 of wholesale transmission service engage in a nonbinding
138-17 alternative dispute resolution process before seeking resolution of
138-18 the dispute by the commission. (V.A.C.S. Art. 1446c-0, Sec.
138-19 2.057(d).)
138-20 Sec. 35.0081. REPORT TO LEGISLATURE CONCERNING STRANDED
138-21 COST. (a) The commission shall report to the 75th Legislature on
138-22 methods or procedures to quantify the magnitude of stranded
138-23 investment, procedures for allocating costs, and acceptable methods
138-24 of recovering stranded costs.
138-25 (b) This section expires January 12, 1999. (V.A.C.S.
139-1 Art. 1446c-0, Sec. 2.057(e).)
139-2 (Sections 35.009-35.030 reserved for expansion)
139-3 SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS AND POWER MARKETERS
139-4 Sec. 35.031. AUTHORITY TO OPERATE. An exempt wholesale
139-5 generator or power marketer may sell electric energy only at
139-6 wholesale. (V.A.C.S. Art. 1446c-0, Sec. 2.053(a).)
139-7 Sec. 35.032. COMMISSION REGISTRATION AND REQUIRED REPORTS.
139-8 (a) An exempt wholesale generator or power marketer that sells
139-9 electric energy in this state shall, not later than the 30th day
139-10 after the date it becomes subject to this section:
139-11 (1) register with the commission; or
139-12 (2) provide to the commission proof that it has
139-13 registered with the Federal Energy Regulatory Commission or has
139-14 been authorized by the Federal Energy Regulatory Commission to sell
139-15 electric energy at market-based rates.
139-16 (b) The exempt wholesale generator or power marketer may
139-17 register by filing with the commission:
139-18 (1) a description of the location of any facility used
139-19 to provide service;
139-20 (2) a description of the type of service provided;
139-21 (3) a copy of any information filed with the Federal
139-22 Energy Regulatory Commission in connection with registration with
139-23 that commission; and
139-24 (4) other information required by commission rule.
139-25 (c) An exempt wholesale generator or power marketer required
140-1 to register under Subsection (a) shall file any report required by
140-2 commission rule. (V.A.C.S. Art. 1446c-0, Secs. 2.053(b), (c).)
140-3 Sec. 35.033. AFFILIATE WHOLESALE PROVIDER. An affiliate of
140-4 an electric utility may be an exempt wholesale generator or power
140-5 marketer and may sell electric energy to its affiliated electric
140-6 utility in accordance with Chapter 34 and other laws governing
140-7 wholesale sales of electric energy. (V.A.C.S. Art. 1446c-0, Sec.
140-8 2.054(a).)
140-9 Sec. 35.034. TRANSFER OF ASSETS. (a) Unless an electric
140-10 utility receives commission approval under Subsection (b), the
140-11 utility may not sell or transfer a facility to an affiliate or
140-12 otherwise consider the facility to be an eligible facility as
140-13 defined by federal law if on May 27, 1995, the utility had a rate
140-14 or charge in effect:
140-15 (1) for or in connection with the construction of the
140-16 facility;
140-17 (2) for electric energy produced by the construction
140-18 of the facility; or
140-19 (3) for electric energy produced by the facility other
140-20 than a portion of a rate or charge that represents recovery of the
140-21 cost of a wholesale rate or charge.
140-22 (b) The commission, after notice and hearing, may allow an
140-23 electric utility to sell or transfer a facility governed by
140-24 Subsection (a) to an affiliate or otherwise allow the facility to
140-25 become an eligible facility only if the transaction:
141-1 (1) will benefit ratepayers of the utility making the
141-2 sale or transfer;
141-3 (2) is in the public interest; and
141-4 (3) otherwise complies with state law. (V.A.C.S.
141-5 Art. 1446c-0, Sec. 2.054(b).)
141-6 Sec. 35.035. VALUATION AND ACCOUNTING OF TRANSFERRED ASSETS.
141-7 (a) A transfer of assets from an electric utility to an affiliated
141-8 exempt wholesale generator or power marketer shall be valued at the
141-9 greater of net book cost or fair market value.
141-10 (b) A transfer of assets from an exempt wholesale generator
141-11 or power marketer to an affiliated electric utility shall be valued
141-12 at the lesser of net book cost or fair market value.
141-13 (c) At the time that a transfer of assets between an
141-14 electric utility and an affiliated exempt wholesale generator or
141-15 power marketer is approved, the commission shall order the utility
141-16 to adjust its rates so that the utility's tariffs reflect benefits
141-17 from the proceeds of the sale and exclude any costs associated with
141-18 the transferred facility. (V.A.C.S. Art. 1446c-0, Sec. 2.054(c).)
141-19 (Sections 35.036-35.060 reserved for expansion)
141-20 SUBCHAPTER C. QUALIFYING FACILITIES
141-21 Sec. 35.061. ENCOURAGEMENT OF ECONOMICAL PRODUCTION. The
141-22 commission shall adopt and enforce rules to encourage the
141-23 economical production of electric energy by qualifying facilities.
141-24 (V.A.C.S. Art. 1446c-0, Sec. 2.052(a).)
141-25 Sec. 35.062. APPLICATION FOR CERTIFICATION. (a) An
142-1 electric utility or a qualifying facility may submit to the
142-2 commission for certification a copy of an agreement between the
142-3 utility and facility for the purchase of capacity.
142-4 (b) An agreement submitted for certification under this
142-5 section may provide that the agreement is contingent on
142-6 certification by the commission. (V.A.C.S. Art. 1446c-0, Sec.
142-7 2.209(b) (part).)
142-8 Sec. 35.063. HEARING. (a) The commission, on its own
142-9 motion or on the request of a party to the agreement or another
142-10 affected person, may conduct a hearing on an agreement for which
142-11 certification is sought under Section 35.062.
142-12 (b) A request for a hearing or a commission decision to hold
142-13 a hearing must be made not later than the 90th day after the date
142-14 the agreement is submitted to the commission. (V.A.C.S.
142-15 Art. 1446c-0, Sec. 2.209(d) (part).)
142-16 Sec. 35.064. CERTIFICATION STANDARDS. The commission shall
142-17 certify an agreement submitted under Section 35.062 if the
142-18 agreement:
142-19 (1) provides for payments over the contract term that
142-20 are equal to or less than the electric utility's avoided costs, as
142-21 established by the commission and in effect at the time the
142-22 agreement was signed; and
142-23 (2) provides the electric utility the opportunity to
142-24 acquire the cogeneration or small-power production installation
142-25 before the installation is offered to another purchaser or provides
143-1 other sufficient assurance that the electric utility will be
143-2 provided with a comparable supply of electricity, if the qualifying
143-3 facility ceases to operate the installation. (V.A.C.S.
143-4 Art. 1446c-0, Secs. 2.209(b) (part), (c) (part).)
143-5 Sec. 35.065. DEADLINES FOR COMMISSION ACTION. (a) Except
143-6 as provided by Subsection (b), the commission shall make its
143-7 determination regarding whether a certification should be granted
143-8 under Section 35.064 not later than the 90th day after the date the
143-9 agreement is submitted.
143-10 (b) If a hearing is held under Section 35.063, the
143-11 commission shall make its determination regarding whether a
143-12 certification should be granted not later than the 120th day after
143-13 the date the agreement is submitted, except that this deadline is
143-14 extended by two days for each day in excess of five days on which
143-15 the commission conducts a hearing on the merits of the
143-16 certification.
143-17 (c) If the commission does not make a determination by the
143-18 date provided by Subsection (a) or (b), as applicable, the
143-19 agreement is considered to meet the requirements of Section 35.064
143-20 and the certification is considered granted. (V.A.C.S.
143-21 Art. 1446c-0, Secs. 2.209(c) (part), (d) (part).)
143-22 Sec. 35.066. TERM OF CERTIFICATION. A certification of an
143-23 agreement granted under this subchapter is effective until the
143-24 earlier of:
143-25 (1) the expiration date of the agreement; or
144-1 (2) the 15th anniversary of the date of the
144-2 certification. (V.A.C.S. Art. 1446c-0, Sec. 2.209(c) (part).)
144-3 CHAPTER 36. RATES
144-4 SUBCHAPTER A. GENERAL PROVISIONS
144-5 Sec. 36.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES
144-6 Sec. 36.002. COMPLIANCE WITH TITLE
144-7 Sec. 36.003. JUST AND REASONABLE RATES
144-8 Sec. 36.004. EQUALITY OF RATES AND SERVICES
144-9 Sec. 36.005. RATES FOR AREA NOT IN MUNICIPALITY
144-10 Sec. 36.006. BURDEN OF PROOF
144-11 Sec. 36.007. DISCOUNTED WHOLESALE OR RETAIL RATES
144-12 Sec. 36.008. STATE TRANSMISSION SYSTEM
144-13 (Sections 36.009-36.050 reserved for expansion)
144-14 SUBCHAPTER B. COMPUTATION OF RATES
144-15 Sec. 36.051. ESTABLISHING OVERALL REVENUES
144-16 Sec. 36.052. ESTABLISHING REASONABLE RETURN
144-17 Sec. 36.053. COMPONENTS OF INVESTED CAPITAL
144-18 Sec. 36.054. CONSTRUCTION WORK IN PROGRESS
144-19 Sec. 36.055. SEPARATIONS AND ALLOCATIONS
144-20 Sec. 36.056. DEPRECIATION, AMORTIZATION, AND DEPLETION
144-21 Sec. 36.057. NET INCOME; DETERMINATION OF REVENUES
144-22 AND EXPENSES
144-23 Sec. 36.058. CONSIDERATION OF PAYMENT TO AFFILIATE
144-24 Sec. 36.059. TREATMENT OF CERTAIN TAX BENEFITS
144-25 Sec. 36.060. CONSOLIDATED INCOME TAX RETURNS
145-1 Sec. 36.061. ALLOWANCE OF CERTAIN EXPENSES
145-2 Sec. 36.062. CONSIDERATION OF CERTAIN EXPENSES
145-3 Sec. 36.063. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
145-4 LEASE OF MERCHANDISE
145-5 Sec. 36.064. SELF-INSURANCE
145-6 (Sections 36.065-36.100 reserved for expansion)
145-7 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE CHANGES
145-8 PROPOSED BY UTILITY
145-9 Sec. 36.101. DEFINITION
145-10 Sec. 36.102. STATEMENT OF INTENT TO CHANGE RATES
145-11 Sec. 36.103. NOTICE OF INTENT TO CHANGE RATES
145-12 Sec. 36.104. EARLY EFFECTIVE DATE OF RATE CHANGE
145-13 Sec. 36.105. DETERMINATION OF PROPRIETY OF RATE
145-14 CHANGE; HEARING
145-15 Sec. 36.106. REGIONAL HEARING
145-16 Sec. 36.107. PREFERENCE TO HEARING
145-17 Sec. 36.108. RATE SUSPENSION; DEADLINE
145-18 Sec. 36.109. TEMPORARY RATES
145-19 Sec. 36.110. BONDED RATES
145-20 Sec. 36.111. ESTABLISHMENT OF FINAL RATES
145-21 (Sections 36.112-36.150 reserved for expansion)
145-22 SUBCHAPTER D. RATE CHANGES PROPOSED BY REGULATORY AUTHORITY
145-23 Sec. 36.151. UNREASONABLE OR VIOLATIVE EXISTING RATES
145-24 Sec. 36.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
145-25 ANOTHER SOURCE
146-1 Sec. 36.153. RATE-FILING PACKAGE
146-2 Sec. 36.154. DEADLINE
146-3 Sec. 36.155. INTERIM ORDER ESTABLISHING TEMPORARY RATES
146-4 Sec. 36.156. AUTOMATIC TEMPORARY RATES
146-5 (Sections 36.157-36.200 reserved for expansion)
146-6 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENT
146-7 Sec. 36.201. AUTOMATIC ADJUSTMENT FOR CHANGES IN COSTS
146-8 Sec. 36.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY
146-9 Sec. 36.203. FUEL COST RECOVERY; ADJUSTMENT OF FUEL
146-10 FACTOR
146-11 Sec. 36.204. COST RECOVERY AND INCENTIVES
146-12 Sec. 36.205. PURCHASED POWER COST RECOVERY
146-13 Sec. 36.206. MARK-UPS
146-14 Sec. 36.207. USE OF MARK-UPS
146-15 Sec. 36.208. PAYMENT TO QUALIFYING FACILITY
146-16 (Sections 36.209-36.250 reserved for expansion)
146-17 SUBCHAPTER F. PARTIAL RATE DEREGULATION AVAILABLE
146-18 TO CERTAIN COOPERATIVES
146-19 Sec. 36.251. ELECTRIC COOPERATIVE EXEMPTION
146-20 Sec. 36.252. ELECTION ON EXEMPTION
146-21 Sec. 36.253. EFFECT OF ELECTION
146-22 Sec. 36.254. APPLICATION OF OTHER PROVISIONS
146-23 Sec. 36.255. SUBSEQUENT ELECTION; REVOCATION
146-24 (Sections 36.256-36.300 reserved for expansion)
147-1 SUBCHAPTER G. RATE CHANGES BY CERTAIN
147-2 ELECTRIC COOPERATIVES
147-3 Sec. 36.301. APPLICATION OF SUBCHAPTER
147-4 Sec. 36.302. METHODS OF CHANGING RATES
147-5 Sec. 36.303. CONTENTS OF NOTICE
147-6 Sec. 36.304. ACCESS TO WRITTEN OPPOSITION
147-7 Sec. 36.305. TARIFFS; EFFECTIVE DATE OF RATE CHANGES
147-8 Sec. 36.306. DISCOUNTED RATES
147-9 Sec. 36.307. COMMISSION REVIEW
147-10 Sec. 36.308. REVIEW REQUESTED BY COOPERATIVE MEMBER OR
147-11 COMMISSION
147-12 Sec. 36.309. REVIEW REQUESTED BY AFFECTED ELECTRIC UTILITY
147-13 (Sections 36.310-36.350 reserved for expansion)
147-14 SUBCHAPTER H. RATES FOR GOVERNMENTAL ENTITIES
147-15 Sec. 36.351. DISCOUNTED RATES FOR CERTAIN INSTITUTIONS OF
147-16 HIGHER EDUCATION
147-17 Sec. 36.352. SPECIAL RATE CLASS
147-18 Sec. 36.353. PAYMENT IN LIEU OF TAX
147-19 CHAPTER 36. RATES
147-20 SUBCHAPTER A. GENERAL PROVISIONS
147-21 Sec. 36.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES.
147-22 (a) The regulatory authority may establish and regulate rates of
147-23 an electric utility and may adopt rules for determining:
147-24 (1) the classification of customers and services; and
147-25 (2) the applicability of rates.
148-1 (b) A rule or order of the regulatory authority may not
148-2 conflict with a ruling of a federal regulatory body. (V.A.C.S.
148-3 Art. 1446c-0, Sec. 2.201.)
148-4 Sec. 36.002. COMPLIANCE WITH TITLE. An electric utility may
148-5 not charge or receive a rate for utility service except as provided
148-6 by this title. (V.A.C.S. Art. 1446c-0, Sec. 2.153 (part).)
148-7 Sec. 36.003. JUST AND REASONABLE RATES. (a) The regulatory
148-8 authority shall ensure that each rate an electric utility or two or
148-9 more electric utilities jointly make, demand, or receive is just
148-10 and reasonable.
148-11 (b) A rate may not be unreasonably preferential,
148-12 prejudicial, or discriminatory but must be sufficient, equitable,
148-13 and consistent in application to each class of consumer.
148-14 (c) An electric utility may not:
148-15 (1) grant an unreasonable preference or advantage
148-16 concerning rates to a person in a classification;
148-17 (2) subject a person in a classification to an
148-18 unreasonable prejudice or disadvantage concerning rates; or
148-19 (3) establish or maintain an unreasonable difference
148-20 concerning rates between localities or between classes of service.
148-21 (d) In establishing an electric utility's rates, the
148-22 commission may treat as a single class two or more municipalities
148-23 that an electric utility serves if the commission considers that
148-24 treatment to be appropriate.
148-25 (e) A charge to an individual customer for retail or
149-1 wholesale electric service that is less than the rate approved by
149-2 the regulatory authority does not constitute an impermissible
149-3 difference, preference, or advantage. (V.A.C.S. Art. 1446c-0,
149-4 Secs. 2.202, 2.214 (part).)
149-5 Sec. 36.004. EQUALITY OF RATES AND SERVICES. (a) An
149-6 electric utility may not directly or indirectly charge, demand, or
149-7 receive from a person a greater or lesser compensation for a
149-8 service provided or to be provided by the utility than the
149-9 compensation prescribed by the applicable tariff filed under
149-10 Section 32.101.
149-11 (b) A person may not knowingly receive or accept a service
149-12 from an electric utility for a compensation greater or less than
149-13 the compensation prescribed by the tariff.
149-14 (c) Notwithstanding Subsections (a) and (b), an electric
149-15 utility may charge an individual customer for wholesale or retail
149-16 electric service in accordance with Section 36.007.
149-17 (d) This title does not prevent a cooperative corporation
149-18 from returning to its members net earnings resulting from its
149-19 operations in proportion to the members' purchases from or through
149-20 the corporation. (V.A.C.S. Art. 1446c-0, Secs. 2.215(a), (b).)
149-21 Sec. 36.005. RATES FOR AREA NOT IN MUNICIPALITY. Without
149-22 the approval of the commission, an electric utility's rates for an
149-23 area not in a municipality may not exceed 115 percent of the
149-24 average of all rates for similar services for all municipalities
149-25 served by the same utility in the same county as that area.
150-1 (V.A.C.S. Art. 1446c-0, Sec. 2.213.)
150-2 Sec. 36.006. BURDEN OF PROOF. In a proceeding involving a
150-3 proposed rate change, the electric utility has the burden of
150-4 proving that:
150-5 (1) the rate change is just and reasonable, if the
150-6 utility proposes the change; or
150-7 (2) an existing rate is just and reasonable, if the
150-8 proposal is to reduce the rate. (V.A.C.S. Art. 1446c-0, Sec.
150-9 2.204.)
150-10 Sec. 36.007. DISCOUNTED WHOLESALE OR RETAIL RATES. (a) On
150-11 application by an electric utility, a regulatory authority may
150-12 approve wholesale or retail tariffs or contracts containing charges
150-13 that are less than rates approved by the regulatory authority but
150-14 not less than the utility's marginal cost. The charges must be in
150-15 accordance with the principles of this title and may not be
150-16 unreasonably preferential, prejudicial, discriminatory, predatory,
150-17 or anticompetitive.
150-18 (b) The method for computing the marginal cost of the
150-19 electric utility consists of energy and capacity components. The
150-20 energy component includes variable operation and maintenance
150-21 expense and marginal fuel or the energy component of purchased
150-22 power. The capacity component is based on the annual economic
150-23 value of deferring, accelerating, or avoiding the next increment of
150-24 needed capacity, without regard to whether the capacity is
150-25 purchased or built.
151-1 (c) The commission shall ensure that the method for
151-2 determining marginal cost is consistently applied among utilities
151-3 but may recognize the individual load and resource requirements of
151-4 the electric utility.
151-5 (d) Notwithstanding any other provision of this title, the
151-6 commission shall ensure that the electric utility's allocable costs
151-7 of serving customers paying discounted rates under this section are
151-8 not borne by the utility's other customers. (V.A.C.S.
151-9 Art. 1446c-0, Secs. 2.001(b), (c), (d) (part), 2.052(b), (c).)
151-10 Sec. 36.008. STATE TRANSMISSION SYSTEM. In establishing
151-11 rates for an electric utility not required to file an integrated
151-12 resource plan, the commission may review the state's transmission
151-13 system and make recommendations to the utility on the need to build
151-14 new power lines, upgrade power lines, and make other necessary
151-15 improvements and additions. (V.A.C.S. Art. 1446c-0, Sec. 2.051(w)
151-16 (part).)
151-17 (Sections 36.009-36.050 reserved for expansion)
151-18 SUBCHAPTER B. COMPUTATION OF RATES
151-19 Sec. 36.051. ESTABLISHING OVERALL REVENUES. In establishing
151-20 an electric utility's rates, the regulatory authority shall
151-21 establish the utility's overall revenues at an amount that will
151-22 permit the utility a reasonable opportunity to earn a reasonable
151-23 return on the utility's invested capital used and useful in
151-24 providing service to the public in excess of the utility's
151-25 reasonable and necessary operating expenses. (V.A.C.S.
152-1 Art. 1446c-0, Sec. 2.203(a).)
152-2 Sec. 36.052. ESTABLISHING REASONABLE RETURN. In
152-3 establishing a reasonable return on invested capital, the
152-4 regulatory authority shall consider applicable factors, including:
152-5 (1) the efforts of the electric utility to comply with
152-6 its most recently approved integrated resource plan;
152-7 (2) the efforts and achievements of the utility in
152-8 conserving resources;
152-9 (3) the quality of the utility's services;
152-10 (4) the efficiency of the utility's operations; and
152-11 (5) the quality of the utility's management.
152-12 (V.A.C.S. Art. 1446c-0, Sec. 2.203(b).)
152-13 Sec. 36.053. COMPONENTS OF INVESTED CAPITAL. (a) Electric
152-14 utility rates shall be based on the original cost, less
152-15 depreciation, of property used by and useful to the utility in
152-16 providing service.
152-17 (b) The original cost of property shall be determined at the
152-18 time the property is dedicated to public use, whether by the
152-19 utility that is the present owner or by a predecessor.
152-20 (c) In this section, the term "original cost" means the
152-21 actual money cost or the actual money value of consideration paid
152-22 other than money. (V.A.C.S. Art. 1446c-0, Secs. 2.206(a) (part),
152-23 (c).)
152-24 Sec. 36.054. CONSTRUCTION WORK IN PROGRESS.
152-25 (a) Construction work in progress, at cost as recorded on the
153-1 electric utility's books, may be included in the utility's rate
153-2 base. The inclusion of construction work in progress is an
153-3 exceptional form of rate relief that the regulatory authority may
153-4 grant only if the utility demonstrates that inclusion is necessary
153-5 to the utility's financial integrity.
153-6 (b) Construction work in progress may not be included in the
153-7 rate base for a major project under construction to the extent that
153-8 the project has been inefficiently or imprudently planned or
153-9 managed. (V.A.C.S. Art. 1446c-0, Secs. 2.206(a) (part), (b).)
153-10 Sec. 36.055. SEPARATIONS AND ALLOCATIONS. Costs of
153-11 facilities, revenues, expenses, taxes, and reserves shall be
153-12 separated or allocated as prescribed by the regulatory authority.
153-13 (V.A.C.S. Art. 1446c-0, Sec. 2.207.)
153-14 Sec. 36.056. DEPRECIATION, AMORTIZATION, AND DEPLETION.
153-15 (a) The commission shall establish proper and adequate rates and
153-16 methods of depreciation, amortization, or depletion for each class
153-17 of property of an electric or municipally owned utility.
153-18 (b) The rates and methods established under this section and
153-19 the depreciation account required by Section 32.102 shall be used
153-20 uniformly and consistently throughout rate-setting and appeal
153-21 proceedings. (V.A.C.S. Art. 1446c-0, Secs. 2.151(a) (part), (d).)
153-22 Sec. 36.057. NET INCOME; DETERMINATION OF REVENUES AND
153-23 EXPENSES. (a) An electric utility's net income is the total
153-24 revenues of the utility less all reasonable and necessary expenses
153-25 as determined by the regulatory authority.
154-1 (b) The regulatory authority shall determine revenues and
154-2 expenses in a manner consistent with this subchapter.
154-3 (c) The regulatory authority may adopt reasonable rules with
154-4 respect to whether an expense is allowed for ratemaking purposes.
154-5 (V.A.C.S. Art. 1446c-0, Secs. 2.208(a), (e).)
154-6 Sec. 36.058. CONSIDERATION OF PAYMENT TO AFFILIATE.
154-7 (a) Except as provided by Subsection (b), the regulatory authority
154-8 may not allow as capital cost or as expense a payment to an
154-9 affiliate for:
154-10 (1) the cost of a service, property, right, or other
154-11 item; or
154-12 (2) interest expense.
154-13 (b) The regulatory authority may allow a payment described
154-14 by Subsection (a) only to the extent that the regulatory authority
154-15 finds the payment is reasonable and necessary for each item or
154-16 class of items as determined by the commission.
154-17 (c) A finding under Subsection (b) must include:
154-18 (1) a specific finding of the reasonableness and
154-19 necessity of each item or class of items allowed; and
154-20 (2) a finding that the price to the electric utility
154-21 is not higher than the prices charged by the supplying affiliate to
154-22 its other affiliates or divisions or to a nonaffiliated person for
154-23 the same item or class of items.
154-24 (d) In making a finding regarding an affiliate transaction,
154-25 including an affiliate transaction subject to Chapter 34, the
155-1 regulatory authority shall:
155-2 (1) determine the extent to which the conditions and
155-3 circumstances of that transaction are reasonably comparable
155-4 relative to quantity, terms, date of contract, and place of
155-5 delivery; and
155-6 (2) allow for appropriate differences based on that
155-7 determination.
155-8 (e) This section does not require a finding to be made
155-9 before payments made by an electric utility to an affiliate are
155-10 included in the utility's charges to consumers if there is a
155-11 mechanism for making the charges subject to refund pending the
155-12 making of the finding. (V.A.C.S. Art. 1446c-0, Sec. 2.208(b).)
155-13 Sec. 36.059. TREATMENT OF CERTAIN TAX BENEFITS. (a) In
155-14 determining the allocation of tax savings derived from liberalized
155-15 depreciation and amortization, the investment tax credit, and the
155-16 application of similar methods, the regulatory authority shall:
155-17 (1) balance equitably the interests of present and
155-18 future customers; and
155-19 (2) apportion accordingly the benefits between
155-20 consumers and the electric or municipally owned utility.
155-21 (b) If an electric utility or a municipally owned utility
155-22 retains a portion of the investment tax credit, that portion shall
155-23 be deducted from the original cost of the facilities or other
155-24 addition to the rate base to which the credit applied to the extent
155-25 allowed by the Internal Revenue Code. (V.A.C.S. Art. 1446c-0,
156-1 Secs. 2.151(c), (d).)
156-2 Sec. 36.060. CONSOLIDATED INCOME TAX RETURNS. (a) Unless
156-3 it is shown to the satisfaction of the regulatory authority that it
156-4 was reasonable to choose not to consolidate returns, an electric
156-5 utility's income taxes shall be computed as though a consolidated
156-6 return had been filed and the utility had realized its fair share
156-7 of the savings resulting from that return, if:
156-8 (1) the utility is a member of an affiliated group
156-9 eligible to file a consolidated income tax return; and
156-10 (2) it is advantageous to the utility to do so.
156-11 (b) The amount of income tax that a consolidated group of
156-12 which an electric utility is a member saves, because the
156-13 consolidated return eliminates the intercompany profit on purchases
156-14 by the utility from an affiliate, shall be applied to reduce the
156-15 cost of the property or service purchased from the affiliate.
156-16 (c) The investment tax credit allowed against federal income
156-17 taxes, to the extent retained by the electric utility, shall be
156-18 applied as a reduction in the rate-based contribution of the assets
156-19 to which the credit applies, to the extent and at the rate allowed
156-20 by the Internal Revenue Code. (V.A.C.S. Art. 1446c-0, Sec.
156-21 2.208(c).)
156-22 Sec. 36.061. ALLOWANCE OF CERTAIN EXPENSES. (a) The
156-23 regulatory authority may not allow as a cost or expense for
156-24 ratemaking purposes:
156-25 (1) an expenditure for legislative advocacy; or
157-1 (2) an expenditure described by Section 32.104 that
157-2 the regulatory authority determines to be not in the public
157-3 interest.
157-4 (b) The regulatory authority may allow as a cost or expense:
157-5 (1) reasonable charitable or civic contributions not
157-6 to exceed the amount approved by the regulatory authority; and
157-7 (2) reasonable costs of participating in a proceeding
157-8 under this title not to exceed the amount approved by the
157-9 regulatory authority. (V.A.C.S. Art. 1446c-0, Secs. 2.152(b), (c),
157-10 (d), (e).)
157-11 Sec. 36.062. CONSIDERATION OF CERTAIN EXPENSES. The
157-12 regulatory authority may not consider for ratemaking purposes:
157-13 (1) an expenditure for legislative advocacy, made
157-14 directly or indirectly, including legislative advocacy expenses
157-15 included in trade association dues;
157-16 (2) a payment made to cover costs of an accident,
157-17 equipment failure, or negligence at a utility facility owned by a
157-18 person or governmental entity not selling power in this state,
157-19 other than a payment made under an insurance or risk-sharing
157-20 arrangement executed before the date of loss;
157-21 (3) an expenditure for costs of processing a refund or
157-22 credit under Section 36.110; or
157-23 (4) any other expenditure, including an executive
157-24 salary, advertising expense, legal expense, or civil penalty or
157-25 fine, the regulatory authority finds to be unreasonable,
158-1 unnecessary, or not in the public interest. (V.A.C.S.
158-2 Art. 1446c-0, Sec. 2.208(d).)
158-3 Sec. 36.063. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
158-4 LEASE OF MERCHANDISE. In establishing an electric or municipally
158-5 owned utility's rates, the regulatory authority may not consider
158-6 any profit or loss that results from the sale or lease of
158-7 merchandise, including appliances, fixtures, or equipment, to the
158-8 extent that merchandise is not integral to providing utility
158-9 service. (V.A.C.S. Art. 1446c-0, Secs. 2.151(b) (part), (d).)
158-10 Sec. 36.064. SELF-INSURANCE. (a) An electric utility may
158-11 self-insure all or part of the utility's potential liability or
158-12 catastrophic property loss, including windstorm, fire, and
158-13 explosion losses, that could not have been reasonably anticipated
158-14 and included under operating and maintenance expenses.
158-15 (b) The commission shall approve a self-insurance plan under
158-16 this section if the commission finds that:
158-17 (1) the coverage is in the public interest;
158-18 (2) the plan, considering all costs, is a lower cost
158-19 alternative to purchasing commercial insurance; and
158-20 (3) ratepayers will receive the benefits of the
158-21 savings.
158-22 (c) In computing an electric utility's reasonable and
158-23 necessary expenses under this subchapter, the regulatory authority,
158-24 to the extent the regulatory authority finds is in the public
158-25 interest, shall allow as a necessary expense the money credited to
159-1 a reserve account for self-insurance. The regulatory authority
159-2 shall determine reasonableness under this subsection:
159-3 (1) from information provided at the time the
159-4 self-insurance plan and reserve account are established; and
159-5 (2) on the filing of a rate case by an electric
159-6 utility that has a reserve account.
159-7 (d) After a reserve account for self-insurance is
159-8 established, the regulatory authority shall:
159-9 (1) determine whether the reserve account has a
159-10 surplus or shortage under Subsection (e); and
159-11 (2) subtract any surplus from or add any shortage to
159-12 the utility's rate base.
159-13 (e) A surplus in the reserve account exists if the charges
159-14 against the account are less than the money credited to the
159-15 account. A shortage in the reserve account exists if the charges
159-16 against the account are greater than the money credited to the
159-17 account.
159-18 (f) The allowance for self-insurance under this title for
159-19 ratemaking purposes is not applicable to nuclear plant investment.
159-20 (g) The commission shall adopt rules governing
159-21 self-insurance under this section. (V.A.C.S. Art. 1446c-0, Sec.
159-22 2.210.)
159-23 (Sections 36.065-36.100 reserved for expansion)
160-1 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE CHANGES
160-2 PROPOSED BY UTILITY
160-3 Sec. 36.101. DEFINITION. In this subchapter, "major change"
160-4 means an increase in rates that would increase the aggregate
160-5 revenues of the applicant more than the greater of $100,000 or
160-6 2-1/2 percent. The term does not include an increase in rates that
160-7 the regulatory authority allows to go into effect or the electric
160-8 utility makes under an order of the regulatory authority after
160-9 hearings held with public notice. (V.A.C.S. Art. 1446c-0, Sec.
160-10 2.212(b) (part).)
160-11 Sec. 36.102. STATEMENT OF INTENT TO CHANGE RATES.
160-12 (a) Except as provided by Section 33.024, an electric utility may
160-13 not change its rates unless the utility files a statement of its
160-14 intent with the regulatory authority that has original jurisdiction
160-15 over those rates at least 35 days before the effective date of the
160-16 proposed change.
160-17 (b) The electric utility shall also mail or deliver a copy
160-18 of the statement of intent to the appropriate officer of each
160-19 affected municipality.
160-20 (c) The statement of intent must include:
160-21 (1) proposed revisions of tariffs; and
160-22 (2) a detailed statement of:
160-23 (A) each proposed change;
160-24 (B) the effect the proposed change is expected
160-25 to have on the revenues of the utility;
161-1 (C) each class and number of utility consumers
161-2 affected; and
161-3 (D) any other information required by the
161-4 regulatory authority's rules. (V.A.C.S. Art. 1446c-0, Sec.
161-5 2.212(a) (part).)
161-6 Sec. 36.103. NOTICE OF INTENT TO CHANGE RATES. (a) The
161-7 electric utility shall:
161-8 (1) publish, in conspicuous form and place, notice to
161-9 the public of the proposed change once each week for four
161-10 successive weeks before the effective date of the proposed change
161-11 in a newspaper having general circulation in each county containing
161-12 territory affected by the proposed change; and
161-13 (2) mail notice of the proposed change to any other
161-14 affected person as required by the regulatory authority's rules.
161-15 (b) The regulatory authority may waive the publication of
161-16 notice requirement prescribed by Subsection (a) in a proceeding
161-17 that involves only a rate reduction for each affected ratepayer.
161-18 The applicant shall give notice of the proposed rate change by mail
161-19 to each affected utility customer.
161-20 (c) The regulatory authority by rule shall define other
161-21 proceedings for which the publication of notice requirement
161-22 prescribed by Subsection (a) may be waived on a showing of good
161-23 cause. A waiver may not be granted in a proceeding involving a
161-24 rate increase to any class or category of ratepayer. (V.A.C.S.
161-25 Art. 1446c-0, Sec. 2.212(a) (part).)
162-1 Sec. 36.104. EARLY EFFECTIVE DATE OF RATE CHANGE. (a) For
162-2 good cause shown, the regulatory authority may allow a rate change,
162-3 other than a major change, to take effect:
162-4 (1) before the end of the 35-day period prescribed by
162-5 Section 36.102; and
162-6 (2) under conditions the regulatory authority
162-7 prescribes, subject to suspension as provided by this subchapter.
162-8 (b) The electric utility shall immediately revise its
162-9 tariffs to include the change. (V.A.C.S. Art. 1446c-0, Sec.
162-10 2.212(b) (part).)
162-11 Sec. 36.105. DETERMINATION OF PROPRIETY OF RATE CHANGE;
162-12 HEARING. (a) If a tariff changing rates is filed with a
162-13 regulatory authority, the regulatory authority shall, on complaint
162-14 by an affected person, or may, on its own motion, not later than
162-15 the 30th day after the effective date of the change, enter on a
162-16 hearing to determine the propriety of the change.
162-17 (b) The regulatory authority shall hold a hearing in every
162-18 case in which the change constitutes a major change. The
162-19 regulatory authority may, however, use an informal proceeding if
162-20 the regulatory authority does not receive a complaint before the
162-21 46th day after the date notice of the change is filed.
162-22 (c) The regulatory authority shall give reasonable notice of
162-23 the hearing, including notice to the governing body of each
162-24 affected municipality and county. The electric utility is not
162-25 required to provide a formal answer or file any other formal
163-1 pleading in response to the notice, and the absence of an answer
163-2 does not affect an order for a hearing. (V.A.C.S. Art. 1446c-0,
163-3 Sec. 2.212(c) (part).)
163-4 Sec. 36.106. REGIONAL HEARING. The commission shall hold a
163-5 regional hearing at an appropriate location in a case in which the
163-6 commission determines it is in the public interest to hear
163-7 testimony at a regional hearing for inclusion in the record.
163-8 (V.A.C.S. Art. 1446c-0, Sec. 2.212(c) (part).)
163-9 Sec. 36.107. PREFERENCE TO HEARING. The regulatory
163-10 authority shall:
163-11 (1) give preference to a hearing under this subchapter
163-12 and to deciding questions arising under this subchapter and
163-13 Subchapter E over any other question pending before it; and
163-14 (2) decide the questions as quickly as possible.
163-15 (V.A.C.S. Art. 1446c-0, Sec. 2.212(d) (part).)
163-16 Sec. 36.108. RATE SUSPENSION; DEADLINE. (a) Pending the
163-17 hearing and a decision:
163-18 (1) the local regulatory authority, after delivering
163-19 to the electric utility a written statement of the regulatory
163-20 authority's reasons, may suspend the rate change for not longer
163-21 than 90 days after the date the rate change would otherwise be
163-22 effective; and
163-23 (2) the commission may suspend the rate change for not
163-24 longer than 150 days after the date the rate change would otherwise
163-25 be effective.
164-1 (b) The 150-day period prescribed by Subsection (a)(2) shall
164-2 be extended two days for each day the actual hearing on the merits
164-3 of the case exceeds 15 days.
164-4 (c) If the regulatory authority does not make a final
164-5 determination concerning a rate change before expiration of the
164-6 applicable suspension period, the regulatory authority is
164-7 considered to have approved the change. This approval is subject
164-8 to the authority of the regulatory authority thereafter to continue
164-9 a hearing in progress. (V.A.C.S. Art. 1446c-0, Sec. 2.212(d)
164-10 (part).)
164-11 Sec. 36.109. TEMPORARY RATES. (a) The regulatory authority
164-12 may establish temporary rates to be in effect during the applicable
164-13 suspension period under Section 36.108.
164-14 (b) If the regulatory authority does not establish temporary
164-15 rates, the rates in effect when the suspended tariff was filed
164-16 continue in effect during the suspension period. (V.A.C.S.
164-17 Art. 1446c-0, Sec. 2.212(d) (part).)
164-18 Sec. 36.110. BONDED RATES. (a) An electric utility may put
164-19 a changed rate into effect throughout the area in which the utility
164-20 sought to change its rates, including an area over which the
164-21 commission is exercising appellate or original jurisdiction, by
164-22 filing a bond with the commission if:
164-23 (1) the 150-day suspension period has been extended
164-24 under Section 36.108(b); and
164-25 (2) the commission fails to make a final determination
165-1 before the 151st day after the date the rate change would otherwise
165-2 be effective.
165-3 (b) The bonded rate may not exceed the proposed rate.
165-4 (c) The bond must be:
165-5 (1) payable to the commission in an amount, in a form,
165-6 and with a surety approved by the commission; and
165-7 (2) conditioned on refund.
165-8 (d) The electric utility shall refund or credit against
165-9 future bills:
165-10 (1) money collected under the bonded rates in excess
165-11 of the rate finally ordered; and
165-12 (2) interest on that money, at the current interest
165-13 rate as determined by the commission. (V.A.C.S. Art. 1446c-0, Sec.
165-14 2.212(e).)
165-15 Sec. 36.111. ESTABLISHMENT OF FINAL RATES. (a) If, after
165-16 hearing, the regulatory authority finds the rates are unreasonable
165-17 or in violation of law, the regulatory authority shall:
165-18 (1) enter an order establishing the rates the electric
165-19 utility shall charge or apply for the service in question; and
165-20 (2) serve a copy of the order on the electric utility.
165-21 (b) The rates established in the order shall be observed
165-22 thereafter until changed as provided by this title. (V.A.C.S.
165-23 Art. 1446c-0, Sec. 2.212(f).)
165-24 (Sections 36.112-36.150 reserved for expansion)
166-1 SUBCHAPTER D. RATE CHANGES PROPOSED BY REGULATORY AUTHORITY
166-2 Sec. 36.151. UNREASONABLE OR VIOLATIVE EXISTING RATES.
166-3 (a) If the regulatory authority, on its own motion or on complaint
166-4 by an affected person, after reasonable notice and hearing, finds
166-5 that the existing rates of an electric utility for a service are
166-6 unreasonable or in violation of law, the regulatory authority
166-7 shall:
166-8 (1) enter an order establishing the just and
166-9 reasonable rates to be observed thereafter, including maximum or
166-10 minimum rates; and
166-11 (2) serve a copy of the order on the electric utility.
166-12 (b) The rates established under Subsection (a) constitute
166-13 the legal rates of the electric utility until changed as provided
166-14 by this title. (V.A.C.S. Art. 1446c-0, Sec. 2.211(a).)
166-15 Sec. 36.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
166-16 ANOTHER SOURCE. If an electric utility does not produce or
166-17 generate the service that it distributes, transmits, or furnishes
166-18 to the public for compensation but obtains the service from another
166-19 source, the regulatory authority may investigate the cost of that
166-20 production or generation in an investigation of the reasonableness
166-21 of the electric utility's rates. (V.A.C.S. Art. 1446c-0, Sec.
166-22 2.211(b).)
166-23 Sec. 36.153. RATE-FILING PACKAGE. (a) An electric utility
166-24 shall file a rate-filing package with the regulatory authority not
166-25 later than the 120th day after the date the authority notifies the
167-1 utility that the authority will proceed with an inquiry under
167-2 Section 36.151.
167-3 (b) The regulatory authority may grant an extension of the
167-4 120-day period prescribed by Subsection (a) or waive the
167-5 rate-filing package requirement on agreement of the parties.
167-6 (V.A.C.S. Art. 1446c-0, Sec. 2.211(c) (part).)
167-7 Sec. 36.154. DEADLINE. (a) The regulatory authority shall
167-8 make a final determination not later than the 185th day after the
167-9 date the electric utility files the rate-filing package required by
167-10 Section 36.153.
167-11 (b) The deadline prescribed by Subsection (a) is extended
167-12 two days for each day the actual hearing on the merits of the case
167-13 exceeds 15 days. (V.A.C.S. Art. 1446c-0, Sec. 2.211(c) (part).)
167-14 Sec. 36.155. INTERIM ORDER ESTABLISHING TEMPORARY RATES.
167-15 (a) At any time after an initial complaint is filed under Section
167-16 36.151, the regulatory authority may issue an interim order
167-17 establishing temporary rates for the electric utility to be in
167-18 effect until a final determination is made.
167-19 (b) On issuance of a final order, the regulatory authority:
167-20 (1) may require the electric utility to refund to
167-21 customers or to credit against future bills:
167-22 (A) money collected under the temporary rates in
167-23 excess of the rate finally ordered; and
167-24 (B) interest on that money, at the current
167-25 interest rate as determined by the commission; or
168-1 (2) shall authorize the electric utility to surcharge
168-2 bills to recover:
168-3 (A) the amount by which the money collected
168-4 under the temporary rates is less than the money that would have
168-5 been collected under the rate finally ordered; and
168-6 (B) interest on that amount, at the current
168-7 interest rate as determined by the commission. (V.A.C.S.
168-8 Art. 1446c-0, Sec. 2.211(d).)
168-9 Sec. 36.156. AUTOMATIC TEMPORARY RATES. (a) The rates
168-10 charged by the electric utility on the 185th day after the date the
168-11 utility files the rate-filing package required by Section 36.153
168-12 automatically become temporary rates if:
168-13 (1) the 185-day period has been extended under Section
168-14 36.154(b); and
168-15 (2) the regulatory authority has not issued a final
168-16 order or established temporary rates for the electric utility on or
168-17 before the 185th day.
168-18 (b) On issuance of a final order, the regulatory authority:
168-19 (1) shall require the electric utility to refund to
168-20 customers or to credit against future bills:
168-21 (A) money collected under the temporary rates in
168-22 excess of the rate finally ordered; and
168-23 (B) interest on that money, at the current
168-24 interest rate as determined by the commission; or
168-25 (2) shall authorize the electric utility to surcharge
169-1 bills to recover:
169-2 (A) the amount by which the money collected
169-3 under the temporary rates is less than the money that would have
169-4 been collected under the rate finally ordered; and
169-5 (B) interest on that amount, at the current
169-6 interest rate as determined by the commission. (V.A.C.S.
169-7 Art. 1446c-0, Sec. 2.211(e).)
169-8 (Sections 36.157-36.200 reserved for expansion)
169-9 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENT
169-10 Sec. 36.201. AUTOMATIC ADJUSTMENT FOR CHANGES IN COSTS.
169-11 Except as permitted by Chapter 34 or Section 36.204, the commission
169-12 may not establish a rate or tariff that authorizes an electric
169-13 utility to automatically adjust and pass through to the utility's
169-14 customers a change in the utility's fuel or other costs. (V.A.C.S.
169-15 Art. 1446c-0, Sec. 2.212(g)(1).)
169-16 Sec. 36.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY.
169-17 (a) The commission, on its own motion or on the petition of an
169-18 electric utility, shall provide for the adjustment of the utility's
169-19 billing to reflect an increase or decrease in the utility's tax
169-20 liability to this state if the increase or decrease:
169-21 (1) results from Chapter 5, Acts of the 72nd
169-22 Legislature, 1st Called Session, 1991; and
169-23 (2) is attributable to an activity subject to the
169-24 commission's jurisdiction.
169-25 (b) The commission shall apportion pro rata to each type and
170-1 class of service provided by the utility any billing adjustment
170-2 under this section. The adjustment:
170-3 (1) shall be made effective at the same time as the
170-4 increase or decrease of tax liability described by Subsection
170-5 (a)(1) or as soon after that increase or decrease as is reasonably
170-6 practical; and
170-7 (2) remains effective only until the commission alters
170-8 the adjustment as provided by this section or enters an order for
170-9 the utility under Subchapter C or D.
170-10 (c) Each year after an original adjustment, the commission
170-11 shall:
170-12 (1) review the utility's increase or decrease of tax
170-13 liability described by Subsection (a)(1); and
170-14 (2) alter the adjustment as necessary to reflect the
170-15 increase or decrease.
170-16 (d) A proceeding under this section is not a rate case under
170-17 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 2.212(h).)
170-18 Sec. 36.203. FUEL COST RECOVERY; ADJUSTMENT OF FUEL FACTOR.
170-19 (a) Section 36.201 does not prohibit the commission from reviewing
170-20 and providing for adjustments of a utility's fuel factor.
170-21 (b) The commission by rule shall implement procedures that
170-22 provide for the timely adjustment of a utility's fuel factor, with
170-23 or without a hearing. The procedures must require that:
170-24 (1) the findings required by Section 36.058 regarding
170-25 fuel transactions with affiliated interests are made in a fuel
171-1 reconciliation proceeding or in a rate case filed under Subchapter
171-2 C or D; and
171-3 (2) an affected party receive notice and have the
171-4 opportunity to request a hearing before the commission.
171-5 (c) The commission may adjust a utility's fuel factor
171-6 without a hearing if the commission determines that a hearing is
171-7 not necessary. If the commission holds a hearing, the commission
171-8 may consider at the hearing any evidence that is appropriate and in
171-9 the public interest.
171-10 (d) The commission shall render a timely decision approving,
171-11 disapproving, or modifying the adjustment to the utility's fuel
171-12 factor.
171-13 (e) The commission by rule shall provide for the
171-14 reconciliation of a utility's fuel costs on a timely basis.
171-15 (f) A proceeding under this section is not a rate case under
171-16 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 2.212(g)(2).)
171-17 Sec. 36.204. COST RECOVERY AND INCENTIVES. In establishing
171-18 rates for an electric utility not required to file an integrated
171-19 resource plan, the commission may:
171-20 (1) allow timely recovery of the reasonable costs of
171-21 conservation, load management, and purchased power, notwithstanding
171-22 Section 36.201; and
171-23 (2) authorize additional incentives for conservation,
171-24 load management, purchased power, and renewable resources.
171-25 (V.A.C.S. Art. 1446c-0, Sec. 2.051(w) (part).)
172-1 Sec. 36.205. PURCHASED POWER COST RECOVERY. (a) This
172-2 section applies only to an increase or decrease in the cost of
172-3 purchased electricity that has been:
172-4 (1) accepted by a federal regulatory authority; or
172-5 (2) approved after a hearing by the commission.
172-6 (b) The commission may use any appropriate method to provide
172-7 for the adjustment of the cost of purchased electricity on terms
172-8 determined by the commission.
172-9 (c) Purchased electricity costs may be recovered:
172-10 (1) concurrently with the effective date of the
172-11 changed costs to the purchasing electric utility; or
172-12 (2) as soon after the effective date as reasonably
172-13 practical.
172-14 (d) The commission may provide a mechanism to allow an
172-15 electric utility that has a noncontiguous geographical service area
172-16 and that purchases power for resale for that noncontiguous service
172-17 area from electric utilities that are not members of the Electric
172-18 Reliability Council of Texas to recover purchased power costs for
172-19 the area in a manner that reflects the purchased power cost for
172-20 that specific geographical noncontiguous area. The commission may
172-21 not require an electric cooperative corporation to use the
172-22 mechanism provided under this section unless the electric
172-23 cooperative corporation requests its use. (V.A.C.S. Art. 1446c-0,
172-24 Sec. 2.212(g)(3).)
172-25 Sec. 36.206. MARK-UPS. (a) A cost recovery factor
173-1 established for the recovery of purchased power costs may include:
173-2 (1) the cost the electric utility incurs in purchasing
173-3 capacity and energy;
173-4 (2) a mark-up added to the cost or another mechanism
173-5 the commission determines will reasonably compensate the utility
173-6 for any financial risk associated with purchased power obligations;
173-7 and
173-8 (3) the value added by the utility in making the
173-9 purchased power available to customers.
173-10 (b) The mark-ups and cost recovery factors, if allowed, may
173-11 be those necessary to encourage the electric utility to include
173-12 economical purchased power as part of the utility's energy and
173-13 capacity resource supply plan. (V.A.C.S. Art. 1446c-0, Sec.
173-14 2.1511.)
173-15 Sec. 36.207. USE OF MARK-UPS. Any mark-ups approved under
173-16 Chapter 34 or Section 36.206 are an exceptional form of rate relief
173-17 that the electric utility may recover from ratepayers only on a
173-18 finding by the commission that the relief is necessary to maintain
173-19 the utility's financial integrity. (V.A.C.S. Art. 1446c-0, Sec.
173-20 2.001(d) (part).)
173-21 Sec. 36.208. PAYMENT TO QUALIFYING FACILITY. In
173-22 establishing an electric utility's rates, the regulatory authority
173-23 shall:
173-24 (1) consider a payment made to a qualifying facility
173-25 under an agreement certified under Subchapter C, Chapter 35, to be
174-1 a reasonable and necessary operating expense of the electric
174-2 utility during the period for which the certification is effective;
174-3 and
174-4 (2) allow full, concurrent, and monthly recovery of
174-5 the amount of the payment. (V.A.C.S. Art. 1446c-0, Sec. 2.209(e).)
174-6 (Sections 36.209-36.250 reserved for expansion)
174-7 SUBCHAPTER F. PARTIAL RATE DEREGULATION AVAILABLE
174-8 TO CERTAIN COOPERATIVES
174-9 Sec. 36.251. ELECTRIC COOPERATIVE EXEMPTION. An electric
174-10 cooperative corporation providing retail electric utility service
174-11 at distribution voltage is exempt from rate regulation if:
174-12 (1) a majority of the members voting in an election on
174-13 the deregulation of the electric cooperative approve the exemption;
174-14 and
174-15 (2) the electric cooperative sends notice of the
174-16 action to each applicable regulatory authority. (V.A.C.S.
174-17 Art. 1446c-0, Sec. 2.2011(a) (part).)
174-18 Sec. 36.252. ELECTION ON EXEMPTION. (a) An electric
174-19 cooperative holding an election under Section 36.251 shall mail a
174-20 ballot to each electric cooperative member. The cooperative may
174-21 include the ballot in a monthly billing.
174-22 (b) The ballot shall be printed to permit voting for or
174-23 against rate deregulation of the electric cooperative.
174-24 (c) If the proposition is approved, the electric cooperative
174-25 shall send the ballots to the commission not later than the 10th
175-1 day after the date the electric cooperative counts the ballots.
175-2 (d) The commission shall administratively certify whether
175-3 the electric cooperative is deregulated for ratemaking purposes
175-4 based on the ballots received under Subsection (c). (V.A.C.S.
175-5 Art. 1446c-0, Sec. 2.2011(a) (part).)
175-6 Sec. 36.253. EFFECT OF ELECTION. (a) Except as provided by
175-7 Section 36.307, a regulatory authority may not establish or
175-8 regulate an electric cooperative's rates if the cooperative elects
175-9 under Section 36.252 to be exempt from rate regulation.
175-10 (b) Notwithstanding Section 33.001, the commission has
175-11 exclusive original jurisdiction in the electric cooperative's
175-12 service area in a proceeding initiated under Section 36.307.
175-13 (V.A.C.S. Art. 1446c-0, Sec. 2.2011(b).)
175-14 Sec. 36.254. APPLICATION OF OTHER PROVISIONS. (a) This
175-15 subchapter does not affect the application of a provision of this
175-16 title not directly related to:
175-17 (1) rates; or
175-18 (2) the authority of the commission to require an
175-19 electric cooperative to file a report required under this title or
175-20 under the commission's rules.
175-21 (b) A service fee or a service rule set by an electric
175-22 cooperative under this subchapter must comply with commission rules
175-23 that apply to all electric utilities.
175-24 (c) The commission may determine if an electric cooperative
175-25 has unlawfully charged or received a rate for electric utility
176-1 service. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(n).)
176-2 Sec. 36.255. SUBSEQUENT ELECTION; REVOCATION. (a) An
176-3 electric cooperative may not hold an election on the issue of its
176-4 exemption from rate regulation before the first anniversary of the
176-5 most recent election on the issue.
176-6 (b) Except as provided by Subsection (a), the members of an
176-7 electric cooperative may, by a majority vote of the members voting,
176-8 at any time:
176-9 (1) revoke the electric cooperative's election to be
176-10 exempt from rate regulation; or
176-11 (2) elect to be exempt from rate regulation.
176-12 (V.A.C.S. Art. 1446c-0, Secs. 2.2011(a) (part), (m).)
176-13 (Sections 36.256-36.300 reserved for expansion)
176-14 SUBCHAPTER G. RATE CHANGES BY CERTAIN
176-15 ELECTRIC COOPERATIVES
176-16 Sec. 36.301. APPLICATION OF SUBCHAPTER. This subchapter
176-17 applies to an electric cooperative that has elected to be exempt
176-18 from rate regulation under Subchapter F. (V.A.C.S. Art. 1446c-0,
176-19 Secs. 2.2011(a) (part), (p) (part).)
176-20 Sec. 36.302. METHODS OF CHANGING RATES. (a) An electric
176-21 cooperative may change its rates by:
176-22 (1) adopting a resolution approving the proposed
176-23 change;
176-24 (2) mailing notice of the proposed change to:
176-25 (A) the commission;
177-1 (B) each affected municipality and customer; and
177-2 (C) each electric utility providing retail
177-3 service in the electric cooperative's service area or in an
177-4 adjoining service area; and
177-5 (3) making available for review by any person at each
177-6 of the electric cooperative's business offices, a cost-of-service
177-7 study that:
177-8 (A) was prepared not earlier than the fifth
177-9 anniversary before the date the electric cooperative adopts rates
177-10 under this subchapter; and
177-11 (B) is certified by a professional engineer or
177-12 certified public accountant.
177-13 (b) The electric cooperative may satisfy the customer
177-14 notification requirement by including the notice in a monthly
177-15 billing. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(c).)
177-16 Sec. 36.303. CONTENTS OF NOTICE. (a) The notice required
177-17 by Section 36.302 must include:
177-18 (1) information concerning the increase or decrease in
177-19 total operating revenues over actual test year revenues or over
177-20 test year revenues adjusted to annualize the recovery of changes in
177-21 the cost of purchased electricity, stated as a dollar amount and as
177-22 a percentage;
177-23 (2) information concerning the classes of utility
177-24 customers affected;
177-25 (3) information concerning the creation and
178-1 application of any new rate classes;
178-2 (4) information concerning the increase or decrease
178-3 for each class stated as a percentage of actual test year revenues
178-4 for the class or of test year revenues for the class adjusted to
178-5 annualize the recovery of changes in the cost of purchased
178-6 electricity;
178-7 (5) a statement that the commission may review the
178-8 rate change if the commission receives, not later than the 60th day
178-9 after the date the notice is received, a petition that complies
178-10 with Section 36.307;
178-11 (6) the address and telephone number of the
178-12 commission;
178-13 (7) a statement that a customer opposed to the rate
178-14 change should notify the electric cooperative in writing of the
178-15 person's opposition and provide a return address; and
178-16 (8) a statement that a member may review a copy of any
178-17 written opposition the electric cooperative receives.
178-18 (b) The electric cooperative may not be required to provide
178-19 additional information in the notice. (V.A.C.S. Art. 1446c-0, Sec.
178-20 2.2011(d).)
178-21 Sec. 36.304. ACCESS TO WRITTEN OPPOSITION. An electric
178-22 cooperative shall make available for review by a member of the
178-23 cooperative at each of the electric cooperative's business offices
178-24 a copy of written opposition to a rate change received by the
178-25 cooperative. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(e).)
179-1 Sec. 36.305. TARIFFS; EFFECTIVE DATE OF RATE CHANGES.
179-2 (a) An electric cooperative shall file tariffs with the
179-3 commission.
179-4 (b) If the electric cooperative complies with Section
179-5 36.302, the commission shall approve the tariffs not later than the
179-6 10th day after the 60-day period prescribed by Section 36.307(a)
179-7 unless a review is required under that section.
179-8 (c) If the tariffs are approved or if a review is not
179-9 required and the commission fails to act on or before the deadline
179-10 prescribed by Subsection (b), the change in rates is effective on:
179-11 (1) the 70th day after the date the electric
179-12 cooperative first complies with each requirement prescribed by
179-13 Section 36.302; or
179-14 (2) a later date determined by the electric
179-15 cooperative.
179-16 (d) Except as provided by Section 36.307, the rates of the
179-17 electric cooperative are not subject to review. (V.A.C.S.
179-18 Art. 1446c-0, Sec. 2.2011(f).)
179-19 Sec. 36.306. DISCOUNTED RATES. (a) An electric cooperative
179-20 may, by resolution, adopt retail tariffs or contracts containing
179-21 charges that are less than the average embedded cost retail rates
179-22 but that are not less than the electric cooperative's marginal
179-23 cost.
179-24 (b) The standards described in Section 36.007 apply to the
179-25 review of rates adopted under Subsection (a). In a review of the
180-1 rates, the electric cooperative's marginal cost shall be the lowest
180-2 marginal cost of any of the cooperative's wholesale power
180-3 suppliers. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(p) (part).)
180-4 Sec. 36.307. COMMISSION REVIEW. (a) The commission shall
180-5 review a change in rates under this subchapter if, not later than
180-6 the 60th day after the date the electric cooperative first complies
180-7 with each requirement prescribed by Section 36.302, the commission
180-8 receives a petition requesting review signed by:
180-9 (1) at least 10 percent of the members of the electric
180-10 cooperative;
180-11 (2) members of the electric cooperative who purchased
180-12 more than 50 percent of the electric cooperative's annual energy
180-13 sales to a customer class in the test year, if the petition
180-14 contains a certification of the purchases; or
180-15 (3) an executive officer of an affected electric
180-16 utility, if the petition describes each particular class for which
180-17 a review is requested.
180-18 (b) A person who files a petition under Subsection (a) shall
180-19 notify the electric cooperative in writing of the action.
180-20 (c) The commission, on its own motion, may review the rates
180-21 of an electric cooperative if the commission finds that there is
180-22 good cause to believe that the electric cooperative is earning more
180-23 than a reasonable return on overall system revenues or on revenue
180-24 from a rate class.
180-25 (d) A single customer may seek a review of the rates of an
181-1 electric cooperative under Subchapter D if, in any period of 12
181-2 consecutive months during the 36 months preceding the date the
181-3 customer initiates a proceeding under Subchapter D, the customer:
181-4 (1) consumes more than 250,000,000 kwh; and
181-5 (2) purchases from the cooperative electric energy
181-6 equal to more than:
181-7 (A) 10 percent of the total energy sales of the
181-8 electric cooperative; or
181-9 (B) 7-1/2 percent of the total revenues of the
181-10 electric cooperative.
181-11 (e) A right conferred by Subsection (d) is in addition to
181-12 the rights of a customer under Subsection (a). (V.A.C.S.
181-13 Art. 1446c-0, Secs. 2.2011(g), (h), (i), (o), as added Acts 74th
181-14 Leg., R.S., Chs. 765 and 1013.)
181-15 Sec. 36.308. REVIEW REQUESTED BY COOPERATIVE MEMBER OR
181-16 COMMISSION. (a) The commission shall conduct a review under
181-17 Section 36.307(a)(1) or (2) or Section 36.307(c) in accordance with
181-18 Subchapter C and other applicable rate-setting principles of this
181-19 title, except that:
181-20 (1) the period for review does not begin until the
181-21 electric cooperative files the rate-filing package as required by
181-22 commission rules;
181-23 (2) a proposed change may not be suspended during the
181-24 pendency of the review; and
181-25 (3) the electric cooperative shall observe the rates
182-1 established by the commission until the rates are changed as
182-2 provided by this subchapter or another section of this title.
182-3 (b) Notwithstanding Subsection (a)(2), if ordered by the
182-4 commission, the electric cooperative shall refund or credit against
182-5 future bills money collected in excess of the rate finally
182-6 established by the commission. (V.A.C.S. Art. 1446c-0, Sec.
182-7 2.2011(j).)
182-8 Sec. 36.309. REVIEW REQUESTED BY AFFECTED ELECTRIC UTILITY.
182-9 (a) In a review conducted under Section 36.307(a)(3), an electric
182-10 cooperative shall file with the commission a copy of the
182-11 cost-of-service study required under Section 36.302 not later than
182-12 the 10th day after the date the electric cooperative receives
182-13 notice from an affected electric utility that a petition has been
182-14 filed.
182-15 (b) The commission shall determine for each class for which
182-16 review has been requested:
182-17 (1) the annual cost of providing service to the class,
182-18 as stated in the electric cooperative's cost-of-service study; and
182-19 (2) the revenues for the class that would be produced
182-20 by multiplying the rate established by the electric cooperative by
182-21 the annual billing units for the class, as stated in the
182-22 cost-of-service study.
182-23 (c) If the electric cooperative proposes a rate class solely
182-24 for a new customer, the electric cooperative shall:
182-25 (1) estimate the reasonable annual cost of providing
183-1 service to the class; and
183-2 (2) base class revenues on a reasonable estimate of
183-3 billing units.
183-4 (d) The rate for a class for which a review is requested
183-5 under Section 36.307(a)(3) is suspended during the pendency of the
183-6 review.
183-7 (e) The commission shall dismiss a petition for review and
183-8 approve the rates if the revenues for the class are not less than
183-9 the cost of providing service to the class.
183-10 (f) The commission shall disapprove a rate under review if
183-11 the revenues for the class are less than the cost of providing
183-12 service to the class. This action does not affect reconsideration
183-13 of the rate as a part of any subsequent ratemaking proceeding.
183-14 (g) A rate adopted by an electric cooperative is approved
183-15 and may be placed into effect if the commission fails to make its
183-16 final determination administratively not later than the 45th day
183-17 after the date the electric cooperative files its cost-of-service
183-18 study. (V.A.C.S. Art. 1446c-0, Secs. 2.2011(k), (l).)
183-19 (Sections 36.310-36.350 reserved for expansion)
183-20 SUBCHAPTER H. RATES FOR GOVERNMENTAL ENTITIES
183-21 Sec. 36.351. DISCOUNTED RATES FOR CERTAIN INSTITUTIONS OF
183-22 HIGHER EDUCATION. (a) Notwithstanding any other provision of this
183-23 title, each electric utility and municipally owned utility shall
183-24 discount charges for electric service provided to a facility of a
183-25 four-year state university, upper-level institution, Texas State
184-1 Technical College, or college.
184-2 (b) The discount is a 20-percent reduction of the utility's
184-3 base rates that would otherwise be paid under the applicable
184-4 tariffed rate.
184-5 (c) An electric or municipally owned utility is exempt from
184-6 this section if the 20-percent discount results in a reduction
184-7 equal to more than one percent of the utility's total annual
184-8 revenues.
184-9 (d) A municipally owned utility is exempt from this section
184-10 if the municipally owned utility, on September 1, 1995, discounted
184-11 base commercial rates for electric service provided to all
184-12 four-year state universities or colleges in its service area by 20
184-13 percent or more.
184-14 (e) This section does not apply to a rate charged to an
184-15 institution of higher education by a municipally owned utility that
184-16 provides a discounted rate to the state for electric services below
184-17 rates in effect on January 1, 1995, if the discounted rate provides
184-18 a greater financial discount to the state than is provided to the
184-19 institution of higher education through the discount provided by
184-20 this section.
184-21 (f) An investor-owned electric utility may not recover from
184-22 residential customers or any other customer class the assigned and
184-23 allocated costs of serving a state university or college that
184-24 receives a discount under this section.
184-25 (g) Each electric utility shall file tariffs with the
185-1 commission reflecting the discount required under this section.
185-2 The initial tariff filing is not a rate change for purposes of
185-3 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 2.2141.)
185-4 Sec. 36.352. SPECIAL RATE CLASS. Notwithstanding any other
185-5 provision of this title, if the commission, on or before September
185-6 1, 1995, approved the establishment of a separate rate class for
185-7 electric service for a university and grouped public schools in a
185-8 separate rate class, the commission shall include community
185-9 colleges in the rate class with public school customers. (V.A.C.S.
185-10 Art. 1446c-0, Sec. 2.215(c).)
185-11 Sec. 36.353. PAYMENT IN LIEU OF TAX. (a) A payment made in
185-12 lieu of a tax by a municipally owned utility to the municipality by
185-13 which the utility is owned may not be considered an expense of
185-14 operation in establishing the utility's rate for providing utility
185-15 service to a school district or hospital district.
185-16 (b) A rate a municipally owned utility receives from a
185-17 school district or hospital district may not be used to make or to
185-18 cover the cost of making payments in lieu of taxes to the
185-19 municipality that owns the utility. (V.A.C.S. Art. 1446c-0, Sec.
185-20 2.217.)
185-21 CHAPTER 37. CERTIFICATES OF CONVENIENCE
185-22 AND NECESSITY
185-23 SUBCHAPTER A. DEFINITIONS
185-24 Sec. 37.001. DEFINITIONS
185-25 (Sections 37.002-37.050 reserved for expansion)
186-1 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
186-2 Sec. 37.051. CERTIFICATE REQUIRED
186-3 Sec. 37.052. EXCEPTIONS TO CERTIFICATE REQUIREMENT
186-4 FOR SERVICE EXTENSION
186-5 Sec. 37.053. APPLICATION FOR CERTIFICATE
186-6 Sec. 37.054. NOTICE AND HEARING ON APPLICATION
186-7 Sec. 37.055. REQUEST FOR PRELIMINARY ORDER
186-8 Sec. 37.056. GRANT OR DENIAL OF CERTIFICATE
186-9 Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
186-10 FACILITY
186-11 Sec. 37.058. CERTIFICATE FOR ELECTRIC GENERATING PLANT
186-12 Sec. 37.059. REVOCATION OR AMENDMENT OF CERTIFICATE
186-13 (Sections 37.060-37.100 reserved for expansion)
186-14 SUBCHAPTER C. MUNICIPALITIES
186-15 Sec. 37.101. SERVICE IN ANNEXED OR INCORPORATED AREA
186-16 Sec. 37.102. GRANT OF CERTIFICATE FOR CERTAIN
186-17 MUNICIPALITIES
186-18 (Sections 37.103-37.150 reserved for expansion)
186-19 SUBCHAPTER D. REGULATION OF SERVICES, AREAS, AND FACILITIES
186-20 Sec. 37.151. PROVISION OF SERVICE
186-21 Sec. 37.152. GROUNDS FOR REDUCTION OF SERVICE
186-22 Sec. 37.153. REQUIRED REFUSAL OF SERVICE
186-23 Sec. 37.154. TRANSFER OF CERTIFICATE
186-24 Sec. 37.155. APPLICATION OF CONTRACTS
186-25 Sec. 37.156. INTERFERENCE WITH ANOTHER UTILITY
187-1 Sec. 37.157. MAPS
187-2 CHAPTER 37. CERTIFICATES OF CONVENIENCE
187-3 AND NECESSITY
187-4 SUBCHAPTER A. DEFINITIONS
187-5 Sec. 37.001. DEFINITIONS. In this chapter:
187-6 (1) "Certificate" means a certificate of convenience
187-7 and necessity.
187-8 (2) "Retail electric utility" means a person,
187-9 political subdivision, or agency that operates, maintains, or
187-10 controls in this state a facility to provide retail electric
187-11 utility service. The term does not include a corporation described
187-12 by Section 32.053 to the extent that the corporation sells
187-13 electricity exclusively at wholesale and not to the ultimate
187-14 consumer. A qualifying cogenerator that sells electric energy at
187-15 retail to the sole purchaser of the cogenerator's thermal output
187-16 under Sections 35.061 and 36.007 is not for that reason considered
187-17 to be a retail electric utility. (V.A.C.S. Art. 1446c-0, Secs.
187-18 2.0012(a) (part), 2.251; New.)
187-19 (Sections 37.002-37.050 reserved for expansion)
187-20 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
187-21 Sec. 37.051. CERTIFICATE REQUIRED. (a) An electric utility
187-22 may not directly or indirectly provide service to the public under
187-23 a franchise or permit unless the utility first obtains from the
187-24 commission a certificate that states that the public convenience
187-25 and necessity requires or will require the installation, operation,
188-1 or extension of the service.
188-2 (b) Except as otherwise provided by this chapter, a retail
188-3 electric utility may not furnish or make available retail electric
188-4 utility service to an area in which retail electric utility service
188-5 is being lawfully furnished by another retail electric utility
188-6 unless the utility first obtains a certificate that includes the
188-7 area in which the consuming facility is located. (V.A.C.S.
188-8 Art. 1446c-0, Sec. 2.252.)
188-9 Sec. 37.052. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
188-10 SERVICE EXTENSION. (a) An electric utility is not required to
188-11 obtain a certificate for an:
188-12 (1) extension into territory that is:
188-13 (A) contiguous to the territory the electric
188-14 utility serves;
188-15 (B) not receiving similar service from another
188-16 electric utility; and
188-17 (C) not in another electric utility's
188-18 certificated area;
188-19 (2) extension in or to territory the utility serves or
188-20 is authorized to serve under a certificate; or
188-21 (3) operation, extension, or service in progress on
188-22 September 1, 1975.
188-23 (b) An extension allowed under Subsection (a) is limited to
188-24 a device used:
188-25 (1) to interconnect existing facilities; or
189-1 (2) solely to transmit electric utility services from
189-2 an existing facility to a customer of retail electric utility
189-3 service. (V.A.C.S. Art. 1446c-0, Sec. 2.253.)
189-4 Sec. 37.053. APPLICATION FOR CERTIFICATE. (a) An electric
189-5 utility that wants to obtain or amend a certificate must submit an
189-6 application to the commission.
189-7 (b) The applicant shall file with the commission evidence
189-8 the commission requires to show the applicant has received the
189-9 consent, franchise, or permit required by the proper municipal or
189-10 other public authority. (V.A.C.S. Art. 1446c-0, Secs. 2.254(a),
189-11 (c).)
189-12 Sec. 37.054. NOTICE AND HEARING ON APPLICATION. (a) When
189-13 an application for a certificate is filed, the commission shall:
189-14 (1) give notice of the application to interested
189-15 parties; and
189-16 (2) if requested:
189-17 (A) set a time and place for a hearing; and
189-18 (B) give notice of the hearing.
189-19 (b) A person interested in the application may intervene at
189-20 the hearing. (V.A.C.S. Art. 1446c-0, Sec. 2.255(a).)
189-21 Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
189-22 electric utility that wants to exercise a right or privilege under
189-23 a franchise or permit that the utility anticipates obtaining but
189-24 has not been granted may apply to the commission for a preliminary
189-25 order under this section.
190-1 (b) The commission may issue a preliminary order declaring
190-2 that the commission, on application and under commission rules,
190-3 will grant the requested certificate on terms the commission
190-4 designates, after the electric utility obtains the franchise or
190-5 permit.
190-6 (c) The commission shall grant the certificate on
190-7 presentation of evidence satisfactory to the commission that the
190-8 electric utility has obtained the franchise or permit. (V.A.C.S.
190-9 Art. 1446c-0, Sec. 2.258.)
190-10 Sec. 37.056. GRANT OR DENIAL OF CERTIFICATE. (a) The
190-11 commission may approve an application and grant a certificate only
190-12 if the commission finds that the certificate is necessary for the
190-13 service, accommodation, convenience, or safety of the public.
190-14 (b) The commission may:
190-15 (1) grant the certificate as requested;
190-16 (2) grant the certificate for the construction of a
190-17 portion of the requested system, facility, or extension or the
190-18 partial exercise of the requested right or privilege; or
190-19 (3) refuse to grant the certificate.
190-20 (c) The commission shall grant each certificate on a
190-21 nondiscriminatory basis after considering:
190-22 (1) the adequacy of existing service;
190-23 (2) the need for additional service;
190-24 (3) the effect of granting the certificate on the
190-25 recipient of the certificate and any electric utility serving the
191-1 proximate area; and
191-2 (4) other factors, such as:
191-3 (A) community values;
191-4 (B) recreational and park areas;
191-5 (C) historical and aesthetic values;
191-6 (D) environmental integrity; and
191-7 (E) the probable improvement of service or
191-8 lowering of cost to consumers in the area if the certificate is
191-9 granted. (V.A.C.S. Art. 1446c-0, Secs. 2.255(b), (c).)
191-10 Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
191-11 FACILITY. The commission must approve or deny an application for a
191-12 certificate for a new transmission facility not later than the
191-13 first anniversary of the date the application is filed. If the
191-14 commission does not approve or deny the application on or before
191-15 that date, a party may seek a writ of mandamus in a district court
191-16 of Travis County to compel the commission to decide on the
191-17 application. (V.A.C.S. Art. 1446c-0, Sec. 2.255(e).)
191-18 Sec. 37.058. CERTIFICATE FOR ELECTRIC GENERATING PLANT.
191-19 (a) Sections 37.054, 37.056, and 37.057 do not apply to a
191-20 certificate for an electric generating plant that is requested
191-21 under Chapter 34.
191-22 (b) The commission may grant a certificate for an electric
191-23 generating plant only in accordance with Chapter 34. (V.A.C.S.
191-24 Art. 1446c-0, Sec. 2.255(d).)
191-25 Sec. 37.059. REVOCATION OR AMENDMENT OF CERTIFICATE.
192-1 (a) The commission may revoke or amend a certificate after notice
192-2 and hearing if the commission finds that the certificate holder has
192-3 never provided or is no longer providing service in all or any part
192-4 of the certificated area.
192-5 (b) The commission may require one or more electric
192-6 utilities to provide service in an area affected by the revocation
192-7 or amendment of a certificate. (V.A.C.S. Art. 1446c-0, Sec.
192-8 2.264.)
192-9 (Sections 37.060-37.100 reserved for expansion)
192-10 SUBCHAPTER C. MUNICIPALITIES
192-11 Sec. 37.101. SERVICE IN ANNEXED OR INCORPORATED AREA.
192-12 (a) If an area is or will be included within a municipality as the
192-13 result of annexation, incorporation, or another reason, each
192-14 electric utility that holds or is entitled to hold a certificate
192-15 under this title to provide service or operate a facility in the
192-16 area before the inclusion has the right to continue to provide the
192-17 service or operate the facility and extend service within the
192-18 utility's certificated area in the annexed or incorporated area
192-19 under the rights granted by the certificate and this title.
192-20 (b) Notwithstanding any other law, an electric utility has
192-21 the right to:
192-22 (1) continue and extend service within the utility's
192-23 certificated area; and
192-24 (2) use roads, streets, highways, alleys, and public
192-25 property to furnish retail electric utility service.
193-1 (c) The governing body of a municipality may require an
193-2 electric utility to relocate the utility's facility at the
193-3 utility's expense to permit the widening or straightening of a
193-4 street by:
193-5 (1) giving the electric utility 30 days' notice; and
193-6 (2) specifying the new location for the facility along
193-7 the right-of-way of the street.
193-8 (d) This section does not:
193-9 (1) limit the power of a city, town, or village to
193-10 incorporate or of a municipality to extend its boundaries by
193-11 annexation; or
193-12 (2) prohibit a municipality from levying a tax or
193-13 other special charge for the use of the streets as authorized by
193-14 Section 182.025, Tax Code. (V.A.C.S. Art. 1446c-0, Secs. 2.256(a),
193-15 (b), (c).)
193-16 Sec. 37.102. GRANT OF CERTIFICATE FOR CERTAIN
193-17 MUNICIPALITIES. (a) If a municipal corporation offers retail
193-18 electric utility service in a municipality having a population of
193-19 more than 135,000 that is located in a county having a population
193-20 of more than 1,500,000, the commission shall singly certificate
193-21 areas in the municipality's boundaries in which more than one
193-22 electric utility provides electric utility service.
193-23 (b) In singly certificating an area under Subsection (a),
193-24 the commission shall preserve the right of an electric utility to
193-25 serve the customers the electric utility was serving on June 17,
194-1 1983. This subsection does not apply to a customer at least
194-2 partially served by a nominal 69,000 volts system who gave notice
194-3 of termination to the utility servicing that customer before June
194-4 17, 1983. (V.A.C.S. Art. 1446c-0, Sec. 2.256(d).)
194-5 (Sections 37.103-37.150 reserved for expansion)
194-6 SUBCHAPTER D. REGULATION OF SERVICES, AREAS, AND FACILITIES
194-7 Sec. 37.151. PROVISION OF SERVICE. Except as provided by
194-8 this section, Section 37.152, and Section 37.153, a certificate
194-9 holder shall:
194-10 (1) serve every consumer in the utility's certificated
194-11 area; and
194-12 (2) provide continuous and adequate service in that
194-13 area. (V.A.C.S. Art. 1446c-0, Sec. 2.259(a).)
194-14 Sec. 37.152. GROUNDS FOR REDUCTION OF SERVICE. (a) Unless
194-15 the commission issues a certificate that the present and future
194-16 convenience and necessity will not be adversely affected, a
194-17 certificate holder may not discontinue, reduce, or impair service
194-18 to any part of the holder's certificated service area except for:
194-19 (1) nonpayment of charges;
194-20 (2) nonuse; or
194-21 (3) another similar reason that occurs in the usual
194-22 course of business.
194-23 (b) A discontinuance, reduction, or impairment of service
194-24 must be in compliance with and subject to any condition or
194-25 restriction the commission prescribes. (V.A.C.S. Art. 1446c-0,
195-1 Secs. 2.259(b), (c).)
195-2 Sec. 37.153. REQUIRED REFUSAL OF SERVICE. A certificate
195-3 holder shall refuse to serve a customer in the holder's
195-4 certificated area if the holder is prohibited from providing the
195-5 service under Section 212.012 or 232.029, Local Government Code.
195-6 (V.A.C.S. Art. 1446c-0, Sec. 2.260.)
195-7 Sec. 37.154. TRANSFER OF CERTIFICATE. (a) An electric
195-8 utility may sell, assign, or lease a certificate or a right
195-9 obtained under a certificate if the commission determines that the
195-10 purchaser, assignee, or lessee can provide adequate service.
195-11 (b) A sale, assignment, or lease of a certificate or a right
195-12 is subject to conditions the commission prescribes. (V.A.C.S.
195-13 Art. 1446c-0, Sec. 2.261.)
195-14 Sec. 37.155. APPLICATION OF CONTRACTS. A contract approved
195-15 by the commission between retail electric utilities that designates
195-16 areas and customers to be served by the utilities:
195-17 (1) is valid and enforceable; and
195-18 (2) shall be incorporated into the appropriate areas
195-19 of certification. (V.A.C.S. Art. 1446c-0, Sec. 2.257.)
195-20 Sec. 37.156. INTERFERENCE WITH ANOTHER UTILITY. If an
195-21 electric utility constructing or extending the utility's lines,
195-22 plant, or system interferes or attempts to interfere with the
195-23 operation of a line, plant, or system of another utility, the
195-24 commission by order may:
195-25 (1) prohibit the construction or extension; or
196-1 (2) prescribe terms for locating the affected lines,
196-2 plants, or systems. (V.A.C.S. Art. 1446c-0, Sec. 2.262.)
196-3 Sec. 37.157. MAPS. An electric utility shall file with the
196-4 commission one or more maps that show each utility facility and
196-5 that separately illustrate each utility facility for the
196-6 generation, transmission, or distribution of the utility's services
196-7 on a date the commission orders. (V.A.C.S. Art. 1446c-0, Sec.
196-8 2.254(b).)
196-9 CHAPTER 38. REGULATION OF ELECTRIC SERVICES
196-10 SUBCHAPTER A. STANDARDS
196-11 Sec. 38.001. GENERAL STANDARD
196-12 Sec. 38.002. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
196-13 STANDARDS
196-14 Sec. 38.003. RULE OR STANDARD
196-15 Sec. 38.004. MINIMUM CLEARANCE STANDARD
196-16 (Sections 38.005-38.020 reserved for expansion)
196-17 SUBCHAPTER B. PROHIBITIONS ON
196-18 PREFERENCES AND DISCRIMINATION
196-19 Sec. 38.021. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
196-20 SERVICE PROHIBITED
196-21 Sec. 38.022. DISCRIMINATION AND RESTRICTION ON COMPETITION
196-22 (Sections 38.023-38.050 reserved for expansion)
196-23 SUBCHAPTER C. EXAMINATIONS, TESTS, AND INSPECTIONS
196-24 Sec. 38.051. EXAMINATION AND TEST OF INSTRUMENT OR EQUIPMENT;
196-25 INSPECTION
197-1 Sec. 38.052. INSPECTION FOR CONSUMER
197-2 (Sections 38.053-38.070 reserved for expansion)
197-3 SUBCHAPTER D. IMPROVEMENTS IN SERVICE
197-4 Sec. 38.071. IMPROVEMENTS IN SERVICE; INTERCONNECTING SERVICE
197-5 CHAPTER 38. REGULATION OF ELECTRIC SERVICES
197-6 SUBCHAPTER A. STANDARDS
197-7 Sec. 38.001. GENERAL STANDARD. An electric utility shall
197-8 furnish service, instrumentalities, and facilities that are safe,
197-9 adequate, efficient, and reasonable. (V.A.C.S. Art. 1446c-0, Sec.
197-10 2.155(a).)
197-11 Sec. 38.002. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
197-12 STANDARDS. A regulatory authority, on its own motion or on
197-13 complaint and after reasonable notice and hearing, may:
197-14 (1) adopt just and reasonable standards,
197-15 classifications, rules, or practices an electric utility must
197-16 follow in furnishing a service;
197-17 (2) adopt adequate and reasonable standards for
197-18 measuring a condition, including quantity, quality, pressure, and
197-19 initial voltage, relating to the furnishing of a service;
197-20 (3) adopt reasonable rules for examining, testing, and
197-21 measuring a service; and
197-22 (4) adopt or approve reasonable rules, specifications,
197-23 and standards to ensure the accuracy of equipment, including meters
197-24 and instruments, used to measure a service. (V.A.C.S.
197-25 Art. 1446c-0, Sec. 2.155(b).)
198-1 Sec. 38.003. RULE OR STANDARD. (a) An electric utility may
198-2 not impose a rule except as provided by this title.
198-3 (b) An electric utility may file with the regulatory
198-4 authority a standard, classification, rule, or practice the utility
198-5 follows.
198-6 (c) The standard, classification, rule, or practice
198-7 continues in force until:
198-8 (1) amended by the utility; or
198-9 (2) changed by the regulatory authority as provided by
198-10 this title. (V.A.C.S. Art. 1446c-0, Secs. 2.153 (part), 2.155(c).)
198-11 Sec. 38.004. MINIMUM CLEARANCE STANDARD. Notwithstanding
198-12 any other law, a transmission or distribution line owned by an
198-13 electric utility must be constructed, operated, and maintained, as
198-14 to clearances, in the manner described by the National Electrical
198-15 Safety Code Standard ANSI (c)(2), as adopted by the American
198-16 National Safety Institute and in effect at the time of
198-17 construction. (V.A.C.S. Art. 1446c-0, Sec. 2.155(d).)
198-18 (Sections 38.005-38.020 reserved for expansion)
198-19 SUBCHAPTER B. PROHIBITIONS ON
198-20 PREFERENCES AND DISCRIMINATION
198-21 Sec. 38.021. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
198-22 SERVICE PROHIBITED. In providing a service to persons in a
198-23 classification, an electric utility may not:
198-24 (1) grant an unreasonable preference or advantage to a
198-25 person in the classification; or
199-1 (2) subject a person in the classification to an
199-2 unreasonable prejudice or disadvantage. (V.A.C.S. Art. 1446c-0,
199-3 Sec. 2.214 (part).)
199-4 Sec. 38.022. DISCRIMINATION AND RESTRICTION ON COMPETITION.
199-5 An electric utility may not:
199-6 (1) discriminate against a person who sells or leases
199-7 equipment or performs services in competition with the electric
199-8 utility; or
199-9 (2) engage in a practice that tends to restrict or
199-10 impair that competition. (V.A.C.S. Art. 1446c-0, Sec. 2.216.)
199-11 (Sections 38.023-38.050 reserved for expansion)
199-12 SUBCHAPTER C. EXAMINATIONS, TESTS, AND INSPECTIONS
199-13 Sec. 38.051. EXAMINATION AND TEST OF INSTRUMENT OR
199-14 EQUIPMENT; INSPECTION. (a) A regulatory authority may:
199-15 (1) examine and test equipment, including meters and
199-16 instruments, used to measure service of an electric utility; and
199-17 (2) set up and use on the premises occupied by an
199-18 electric utility an apparatus or appliance necessary for the
199-19 examination or test.
199-20 (b) The electric utility is entitled to be represented at an
199-21 examination, test, or inspection made under this section.
199-22 (c) The electric utility and its officers and employees
199-23 shall facilitate the examination, test, or inspection by giving
199-24 reasonable aid to the regulatory authority and to any person
199-25 designated by the regulatory authority for the performance of those
200-1 duties. (V.A.C.S. Art. 1446c-0, Sec. 2.156(a) (part).)
200-2 Sec. 38.052. INSPECTION FOR CONSUMER. (a) A consumer may
200-3 have a meter or other measuring device tested by an electric
200-4 utility:
200-5 (1) once without charge, after a reasonable period of
200-6 presumed accuracy the regulatory authority establishes by rule; and
200-7 (2) at a shorter interval on payment of a reasonable
200-8 fee established by the regulatory authority.
200-9 (b) The regulatory authority shall establish reasonable fees
200-10 to be paid for other examining or testing of a measuring device on
200-11 the request of a consumer.
200-12 (c) If the consumer requests the test under Subsection
200-13 (a)(2) and the measuring device is found unreasonably defective or
200-14 incorrect to the substantial disadvantage of the consumer, the fee
200-15 the consumer paid at the time of the request shall be refunded.
200-16 (V.A.C.S. Art. 1446c-0, Sec. 2.156(b).)
200-17 (Sections 38.053-38.070 reserved for expansion)
200-18 SUBCHAPTER D. IMPROVEMENTS IN SERVICE
200-19 Sec. 38.071. IMPROVEMENTS IN SERVICE; INTERCONNECTING
200-20 SERVICE. The commission, after notice and hearing, may:
200-21 (1) order an electric utility to provide specified
200-22 improvements in its service in a specified area if:
200-23 (A) service in the area is inadequate or
200-24 substantially inferior to service in a comparable area; and
200-25 (B) requiring the company to provide the
201-1 improved service is reasonable; or
201-2 (2) order two or more electric utilities to establish
201-3 specified facilities for interconnecting service. (V.A.C.S.
201-4 Art. 1446c-0, Sec. 2.263.)
201-5 (Chapters 39-50 reserved for expansion)
201-6 SUBTITLE C. TELECOMMUNICATIONS UTILITIES
201-7 CHAPTER 51. GENERAL PROVISIONS
201-8 Sec. 51.001. POLICY
201-9 Sec. 51.002. DEFINITIONS
201-10 Sec. 51.003. APPLICABILITY
201-11 Sec. 51.004. PRICING FLEXIBILITY
201-12 Sec. 51.005. ASSISTANCE TO MUNICIPALITY
201-13 Sec. 51.006. MUNICIPAL PARTICIPATION IN RATEMAKING
201-14 PROCEEDINGS
201-15 Sec. 51.007. MUNICIPAL STANDING IN CERTAIN CASES
201-16 Sec. 51.008. JUDICIAL REVIEW
201-17 Sec. 51.009. MUNICIPAL FEES
201-18 Sec. 51.010. COMMISSION INVESTIGATION OF SALE, MERGER, OR
201-19 CERTAIN OTHER ACTIONS
201-20 CHAPTER 51. GENERAL PROVISIONS
201-21 Sec. 51.001. POLICY. (a) Significant changes have occurred
201-22 in telecommunications since the law from which this title is
201-23 derived was originally adopted. To encourage and accelerate the
201-24 development of a competitive and advanced telecommunications
201-25 environment and infrastructure, new rules, policies, and principles
202-1 must be formulated and applied to protect the public interest.
202-2 (b) It is the policy of this state to:
202-3 (1) promote diversity of telecommunications providers
202-4 and interconnectivity;
202-5 (2) encourage a fully competitive telecommunications
202-6 marketplace; and
202-7 (3) maintain a wide availability of high quality,
202-8 interoperable, standards-based telecommunications services at
202-9 affordable rates.
202-10 (c) The policy goals described by Subsection (b) are best
202-11 achieved by legislation that modernizes telecommunications
202-12 regulation by:
202-13 (1) guaranteeing the affordability of basic telephone
202-14 service in a competitively neutral manner; and
202-15 (2) fostering free market competition in the
202-16 telecommunications industry.
202-17 (d) The technological advancements, advanced
202-18 telecommunications infrastructure, and increased customer choices
202-19 for telecommunications services generated by a truly competitive
202-20 market play a critical role in Texas' economic future by raising
202-21 living standards for Texans through:
202-22 (1) enhanced economic development; and
202-23 (2) improved delivery of education, health, and other
202-24 public and private services.
202-25 (e) The strength of competitive forces varies widely between
203-1 markets, products, and services. It is the policy of this state to
203-2 require the commission to take action necessary to enhance
203-3 competition by adjusting regulation to match the degree of
203-4 competition in the marketplace to:
203-5 (1) reduce the cost and burden of regulation; and
203-6 (2) protect markets that are not competitive.
203-7 (f) It is the policy of this state to ensure that high
203-8 quality telecommunications services are available, accessible, and
203-9 usable by an individual with a disability, unless making the
203-10 services available, accessible, or usable would:
203-11 (1) result in an undue burden, including unreasonable
203-12 cost or technical infeasibility; or
203-13 (2) have an adverse competitive effect. (V.A.C.S.
203-14 Art. 1446c-0, Sec. 3.001.)
203-15 Sec. 51.002. DEFINITIONS. In this subtitle:
203-16 (1) "Basic local telecommunications service" means:
203-17 (A) flat rate residential and business local
203-18 exchange telephone service, including primary directory listings;
203-19 (B) tone dialing service;
203-20 (C) access to operator services;
203-21 (D) access to directory assistance services;
203-22 (E) access to 911 service provided by a local
203-23 authority or dual party relay service;
203-24 (F) the ability to report service problems seven
203-25 days a week;
204-1 (G) lifeline and tel-assistance services; and
204-2 (H) any other service the commission determines
204-3 after a hearing is a basic local telecommunications service.
204-4 (2) "Dominant carrier" means a provider of a
204-5 communication service provided wholly or partly over a telephone
204-6 system who the commission determines has sufficient market power in
204-7 a telecommunications market to control prices for that service in
204-8 that market in a manner adverse to the public interest. The term
204-9 includes a provider who provided local exchange telephone service
204-10 within a certificated exchange area on September 1, 1995, as to
204-11 that service and as to any other service for which a competitive
204-12 alternative is not available in a particular geographic market. In
204-13 addition, with respect to:
204-14 (A) intraLATA long distance message
204-15 telecommunications service originated by dialing the access code
204-16 "1-plus," the term includes a provider of local exchange telephone
204-17 service in a certificated exchange area for whom the use of that
204-18 access code for the origination of "1-plus" intraLATA calls in the
204-19 exchange area is exclusive; and
204-20 (B) interexchange services, the term does not
204-21 include an interexchange carrier that is not a certificated local
204-22 exchange company.
204-23 (3) "Incumbent local exchange company" means a local
204-24 exchange company that has a certificate of convenience and
204-25 necessity on September 1, 1995.
205-1 (4) "Local exchange company" means a
205-2 telecommunications utility that has a certificate of convenience
205-3 and necessity or a certificate of operating authority to provide in
205-4 this state:
205-5 (A) local exchange telephone service;
205-6 (B) basic local telecommunications service; or
205-7 (C) switched access service.
205-8 (5) "Local exchange telephone service" means
205-9 telecommunications service provided within an exchange to establish
205-10 connections between customer premises within the exchange,
205-11 including connections between a customer premises and a long
205-12 distance provider serving the exchange. The term includes tone
205-13 dialing service, service connection charges, and directory
205-14 assistance services offered in connection with basic local
205-15 telecommunications service and interconnection with other service
205-16 providers. The term does not include the following services,
205-17 whether offered on an intraexchange or interexchange basis:
205-18 (A) central office based PBX-type services for
205-19 systems of 75 stations or more;
205-20 (B) billing and collection services;
205-21 (C) high-speed private line services of 1.544
205-22 megabits or greater;
205-23 (D) customized services;
205-24 (E) private line or virtual private line
205-25 services;
206-1 (F) resold or shared local exchange telephone
206-2 services if permitted by tariff;
206-3 (G) dark fiber services;
206-4 (H) non-voice data transmission service offered
206-5 as a separate service and not as a component of basic local
206-6 telecommunications service;
206-7 (I) dedicated or virtually dedicated access
206-8 services; or
206-9 (J) any other service the commission determines
206-10 is not a "local exchange telephone service."
206-11 (6) "Long run incremental cost" has the meaning
206-12 assigned by 16 T.A.C. Section 23.91.
206-13 (7) "Pricing flexibility" includes:
206-14 (A) customer specific contracts;
206-15 (B) packaging of services;
206-16 (C) volume, term, and discount pricing;
206-17 (D) zone density pricing; and
206-18 (E) other promotional pricing.
206-19 (8) "Public utility" or "utility" means a person or
206-20 river authority that owns or operates for compensation in this
206-21 state equipment or facilities to convey, transmit, or receive
206-22 communications over a telephone system as a dominant carrier. The
206-23 term includes a lessee, trustee, or receiver of any of those
206-24 entities, or a combination of those entities. The term does not
206-25 include a municipal corporation. A person is not a public utility
207-1 solely because the person:
207-2 (A) furnishes or furnishes and maintains a
207-3 private system;
207-4 (B) manufactures, distributes, installs, or
207-5 maintains customer premise communications equipment and
207-6 accessories; or
207-7 (C) furnishes a telecommunications service or
207-8 commodity only to itself, its employees, or its tenants as an
207-9 incident of employment or tenancy, if that service or commodity is
207-10 not resold to or used by others.
207-11 (9) "Separation" means the division of plant,
207-12 revenues, expenses, taxes, and reserves applicable to exchange or
207-13 local service if these items are used in common to provide public
207-14 utility service to both local exchange telephone service and other
207-15 service, such as interstate or intrastate toll service.
207-16 (10) "Telecommunications provider":
207-17 (A) means:
207-18 (i) a certificated telecommunications
207-19 utility;
207-20 (ii) a shared tenant service provider;
207-21 (iii) a nondominant carrier of
207-22 telecommunications services;
207-23 (iv) a provider of commercial mobile
207-24 service as defined by Section 332(d), Communications Act of 1934
207-25 (47 U.S.C. Section 151 et seq.), Federal Communications Commission
208-1 rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
208-2 Law 103-66);
208-3 (v) a telecommunications entity that
208-4 provides central office based PBX-type sharing or resale
208-5 arrangements;
208-6 (vi) an interexchange telecommunications
208-7 carrier;
208-8 (vii) a specialized common carrier;
208-9 (viii) a reseller of communications;
208-10 (ix) a provider of operator services;
208-11 (x) a provider of customer-owned pay
208-12 telephone service; or
208-13 (xi) another person or entity determined
208-14 by the commission to provide telecommunications services to
208-15 customers in this state; and
208-16 (B) does not mean:
208-17 (i) a provider of enhanced or information
208-18 services, or another user of telecommunications services, who does
208-19 not also provide telecommunications services; or
208-20 (ii) a state agency or state institution
208-21 of higher education, or a service provided by a state agency or
208-22 state institution of higher education.
208-23 (11) "Telecommunications utility" means:
208-24 (A) a public utility;
208-25 (B) an interexchange telecommunications carrier,
209-1 including a reseller of interexchange telecommunications services;
209-2 (C) a specialized communications common carrier;
209-3 (D) a reseller of communications;
209-4 (E) a communications carrier who conveys,
209-5 transmits, or receives communications wholly or partly over a
209-6 telephone system;
209-7 (F) a provider of operator services as defined
209-8 by Section 55.081, unless the provider is a subscriber to
209-9 customer-owned pay telephone service; and
209-10 (G) a separated affiliate or an electronic
209-11 publishing joint venture as defined in Chapter 63.
209-12 (12) "Tier 1 local exchange company" has the meaning
209-13 assigned by the Federal Communications Commission. (V.A.C.S.
209-14 Art. 1446c-0, Secs. 3.002(1), (2) (part), (3), (5), (6), (7), (8)
209-15 (part), (9) (part), (10), (11), (12); New.)
209-16 Sec. 51.003. APPLICABILITY. Except as otherwise expressly
209-17 provided by this title, this title does not apply to:
209-18 (1) a company that as its only form of business:
209-19 (A) is a telecommunications manager; or
209-20 (B) administers central office based or customer
209-21 based PBX-type sharing/resale arrangements;
209-22 (2) telegraph services;
209-23 (3) television or radio stations;
209-24 (4) community antenna television services; or
209-25 (5) a provider of commercial mobile service as defined
210-1 by Section 332(d), Communications Act of 1934 (47 U.S.C. Section
210-2 151 et seq.), Federal Communications Commission rules, and the
210-3 Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66),
210-4 other than conventional rural radio-telephone services provided by
210-5 a wire-line telephone company under the Public Mobile Service rules
210-6 of the Federal Communications Commission (47 C.F.R. Part 22).
210-7 (V.A.C.S. Art. 1446c-0, Sec. 3.002(9) (part).)
210-8 Sec. 51.004. PRICING FLEXIBILITY. (a) A discount or other
210-9 form of pricing flexibility may not be preferential, prejudicial,
210-10 or discriminatory.
210-11 (b) This title does not prohibit a volume discount or other
210-12 discount based on a reasonable business purpose. (V.A.C.S.
210-13 Art. 1446c-0, Secs. 3.002(8) (part), 3.051(m) (part).)
210-14 Sec. 51.005. ASSISTANCE TO MUNICIPALITY. On request of a
210-15 municipality, the commission may advise and assist the municipality
210-16 with respect to a question or proceeding arising under this title.
210-17 Assistance provided by the commission may include aid to a
210-18 municipality on a matter pending before the commission or a court,
210-19 such as making a staff member available as a witness or otherwise
210-20 providing evidence to the municipality. (V.A.C.S. Art. 1446c-0,
210-21 Sec. 3.102.)
210-22 Sec. 51.006. MUNICIPAL PARTICIPATION IN RATEMAKING
210-23 PROCEEDINGS. (a) The governing body of a municipality
210-24 participating in a ratemaking proceeding may engage rate
210-25 consultants, accountants, auditors, attorneys, and engineers to:
211-1 (1) conduct investigations, present evidence, and
211-2 advise and represent the governing body; and
211-3 (2) assist the governing body with litigation before
211-4 the commission or a court.
211-5 (b) The public utility in the ratemaking proceeding shall
211-6 reimburse the governing body of the municipality for the reasonable
211-7 cost of the services of a person engaged under Subsection (a) to
211-8 the extent the commission determines is reasonable. (V.A.C.S.
211-9 Art. 1446c-0, Sec. 3.101(a).)
211-10 Sec. 51.007. MUNICIPAL STANDING IN CERTAIN CASES. (a) A
211-11 municipality has standing in each case before the commission that
211-12 relates to a utility providing service in the municipality.
211-13 (b) A municipality's standing is subject to the right of the
211-14 commission to:
211-15 (1) determine standing in a case involving a retail
211-16 service area dispute that involves two or more utilities; and
211-17 (2) consolidate municipalities on an issue of common
211-18 interest. (V.A.C.S. Art. 1446c-0, Sec. 3.101(b) (part).)
211-19 Sec. 51.008. JUDICIAL REVIEW. A municipality is entitled to
211-20 judicial review of a commission order relating to a utility
211-21 providing services in the municipality as provided by Section
211-22 15.001. (V.A.C.S. Art. 1446c-0, Sec. 3.101(b) (part).)
211-23 Sec. 51.009. MUNICIPAL FEES. (a) Nothing in this title,
211-24 including Section 53.201, may be construed as in any way limiting
211-25 the right of a public utility to pass through a municipal fee,
212-1 including an increase in a municipal fee.
212-2 (b) A public utility that traditionally passes through
212-3 municipal fees shall promptly pass through any municipal fee
212-4 reduction. (V.A.C.S. Art. 1446c-0, Secs. 3.1015, 3.211(g) (part).)
212-5 Sec. 51.010. COMMISSION INVESTIGATION OF SALE, MERGER, OR
212-6 CERTAIN OTHER ACTIONS. (a) The commission, not later than the
212-7 180th day after the date a public utility reports to the commission
212-8 under Section 14.101, shall complete an investigation under that
212-9 section and enter a final order.
212-10 (b) If a final order is not entered as required by
212-11 Subsection (a), the commission is considered to have determined
212-12 that the action taken by the public utility is consistent with the
212-13 public interest.
212-14 (c) Section 14.101 does not apply to:
212-15 (1) a company that receives a certificate of operating
212-16 authority or a service provider certificate of operating authority
212-17 under Chapter 54; or
212-18 (2) a company electing under Chapter 58. (V.A.C.S.
212-19 Art. 1446c-0, Sec. 3.053.)
212-20 CHAPTER 52. COMMISSION JURISDICTION
212-21 SUBCHAPTER A. GENERAL POWERS AND DUTIES OF COMMISSION
212-22 Sec. 52.001. POLICY
212-23 Sec. 52.002. AUTHORITY TO REGULATE
212-24 Sec. 52.003. COOPERATION WITH OTHER REGULATORY
212-25 AUTHORITIES
213-1 Sec. 52.004. COMMISSION MAY ESTABLISH SEPARATE MARKETS
213-2 Sec. 52.005. MINIMUM REQUIREMENTS FOR DOMINANT CARRIERS
213-3 Sec. 52.006. COMMISSION TO REPORT TO LEGISLATURE
213-4 (Sections 52.007-52.050 reserved for expansion)
213-5 SUBCHAPTER B. INCUMBENT LOCAL EXCHANGE COMPANIES
213-6 Sec. 52.051. POLICY
213-7 Sec. 52.052. APPLICABILITY
213-8 Sec. 52.053. CERTAIN RATES PROHIBITED
213-9 Sec. 52.054. RULES AND PROCEDURES FOR INCUMBENT LOCAL
213-10 EXCHANGE COMPANIES
213-11 Sec. 52.055. HEARING TO DETERMINE LEVEL OF COMPETITION
213-12 Sec. 52.056. SPECIFICALLY AUTHORIZED REGULATORY
213-13 TREATMENTS
213-14 Sec. 52.057. CUSTOMER-SPECIFIC CONTRACTS
213-15 Sec. 52.058. NEW OR EXPERIMENTAL SERVICES OR PROMOTIONAL
213-16 RATES
213-17 Sec. 52.059. RATES TO COVER APPROPRIATE COSTS
213-18 Sec. 52.060. ADMINISTRATIVE FEE OR ASSESSMENT
213-19 (Sections 52.061-52.100 reserved for expansion)
213-20 SUBCHAPTER C. TELECOMMUNICATIONS UTILITIES
213-21 THAT ARE NOT DOMINANT CARRIERS
213-22 Sec. 52.101. APPLICABILITY
213-23 Sec. 52.102. LIMITED REGULATORY AUTHORITY
213-24 Sec. 52.103. REGISTRATION REQUIRED
213-25 Sec. 52.104. COMMISSION MAY INVESTIGATE
214-1 Sec. 52.105. ACCESS TO CERTAIN SERVICES REQUIRED
214-2 Sec. 52.106. QUALITY OF SERVICE REQUIRED
214-3 Sec. 52.107. PREDATORY PRICING
214-4 Sec. 52.108. OTHER PROHIBITED PRACTICES
214-5 Sec. 52.109. AVAILABILITY OF SERVICE
214-6 Sec. 52.110. BURDEN OF PROOF
214-7 Sec. 52.111. COMMISSION MAY EXEMPT
214-8 (Sections 52.112-52.150 reserved for expansion)
214-9 SUBCHAPTER D. CERTIFICATE HOLDERS
214-10 Sec. 52.151. APPLICABILITY
214-11 Sec. 52.152. LIMITED REGULATORY AUTHORITY
214-12 Sec. 52.153. BOOKS AND RECORDS
214-13 Sec. 52.154. COMMISSION MAY NOT OVERBURDEN
214-14 (Sections 52.155-52.200 reserved for expansion)
214-15 SUBCHAPTER E. DEREGULATION OF SERVICE
214-16 Sec. 52.201. DEREGULATION OF SERVICE
214-17 Sec. 52.202. DETERMINATION OF GEOGRAPHIC MARKET
214-18 Sec. 52.203. MARKET POWER TEST
214-19 Sec. 52.204. RATE FOR DEREGULATED SERVICE
214-20 Sec. 52.205. INVESTIGATION OF COMPETITION
214-21 Sec. 52.206. REREGULATION OF MARKET
214-22 Sec. 52.207. REPORTS; CONFIDENTIAL INFORMATION
214-23 (Sections 52.208-52.250 reserved for expansion)
214-24 SUBCHAPTER F. REQUIRED REPORTS AND FILINGS; RECORDS
214-25 Sec. 52.251. TARIFF FILINGS
215-1 Sec. 52.252. DEPRECIATION ACCOUNT
215-2 Sec. 52.253. ACCOUNTS OF PROFITS AND LOSSES
215-3 Sec. 52.254. REPORT OF CERTAIN EXPENSES
215-4 Sec. 52.255. AVAILABILITY OF RECORDS
215-5 CHAPTER 52. COMMISSION JURISDICTION
215-6 SUBCHAPTER A. GENERAL POWERS AND DUTIES OF COMMISSION
215-7 Sec. 52.001. POLICY. (a) It is the policy of this state to
215-8 protect the public interest in having adequate and efficient
215-9 telecommunications service available to each resident of this state
215-10 at just, fair, and reasonable rates.
215-11 (b) The telecommunications industry, through technical
215-12 advancements, federal legislative, judicial, and administrative
215-13 actions, and the formulation of new telecommunications enterprises,
215-14 has become and will continue to be in many and growing areas a
215-15 competitive industry that does not lend itself to traditional
215-16 public utility regulatory rules, policies, and principles. As a
215-17 result, the public interest requires that rules, policies, and
215-18 principles be formulated and applied to:
215-19 (1) protect the public interest; and
215-20 (2) provide equal opportunity to each
215-21 telecommunications utility in a competitive marketplace. (V.A.C.S.
215-22 Art. 1446c-0, Sec. 3.051(a).)
215-23 Sec. 52.002. AUTHORITY TO REGULATE. (a) To carry out the
215-24 public policy stated by Section 52.001 and to regulate rates,
215-25 operations, and services so that the rates are just, fair, and
216-1 reasonable and the services are adequate and efficient, the
216-2 commission has exclusive original jurisdiction over the business
216-3 and property of a telecommunications utility in this state subject
216-4 to the limitations imposed by this title.
216-5 (b) The commission's regulatory authority as to a
216-6 telecommunications utility other than a public utility is only as
216-7 prescribed by this title. (V.A.C.S. Art. 1446c-0, Secs. 3.002(9)
216-8 (part), 3.051(b) (part).)
216-9 Sec. 52.003. COOPERATION WITH OTHER REGULATORY AUTHORITIES.
216-10 In regulating the rates, operations, and services of a
216-11 telecommunications utility providing service in a municipality
216-12 located on the state line adjacent to a municipality in an
216-13 adjoining state, the commission may cooperate with the utility
216-14 regulatory commission of the adjoining state or of the federal
216-15 government and may hold a joint hearing or make a joint
216-16 investigation with that commission. (V.A.C.S. Art. 1446c-0, Sec.
216-17 3.051(b) (part).)
216-18 Sec. 52.004. COMMISSION MAY ESTABLISH SEPARATE MARKETS.
216-19 (a) The commission may establish separate telecommunications
216-20 markets in this state if the commission determines that the public
216-21 interest will be served. The commission shall hold hearings and
216-22 require evidence as necessary to:
216-23 (1) carry out the public purpose of this chapter; and
216-24 (2) determine the need and effect of establishing
216-25 separate markets.
217-1 (b) A provider determined to be a dominant carrier as to a
217-2 particular telecommunications service in a market may not be
217-3 presumed to be a dominant carrier of a different telecommunications
217-4 service in that market. (V.A.C.S. Art. 1446c-0, Sec. 3.002(2)
217-5 (part).)
217-6 Sec. 52.005. MINIMUM REQUIREMENTS FOR DOMINANT CARRIERS.
217-7 The commission shall impose as minimum requirements for a dominant
217-8 carrier the same requirements imposed by Subchapter C, except
217-9 Section 52.107. (V.A.C.S. Art. 1446c-0, Sec. 3.051(q) (part).)
217-10 Sec. 52.006. COMMISSION TO REPORT TO LEGISLATURE.
217-11 (a) Before January 15 of each odd-numbered year, the commission
217-12 shall report to the legislature on:
217-13 (1) the scope of competition in regulated
217-14 telecommunications markets; and
217-15 (2) the effect of competition on customers in both
217-16 competitive and noncompetitive markets, with a specific focus on
217-17 rural markets.
217-18 (b) The report shall include:
217-19 (1) an assessment of the effect of competition on the
217-20 rates and availability of telecommunications services for
217-21 residential and business customers;
217-22 (2) a summary of commission action over the preceding
217-23 two years that reflects changes in the scope of competition in
217-24 regulated telecommunications markets; and
217-25 (3) recommendations for legislation the commission
218-1 determines is appropriate to promote the public interest in the
218-2 context of a partially competitive telecommunications market.
218-3 (c) The commission, in its assessment under Subsection
218-4 (b)(1), shall specifically address any effects on universal
218-5 service.
218-6 (d) A telecommunications utility shall cooperate with the
218-7 commission as necessary for the commission to satisfy the
218-8 requirements of this section. (V.A.C.S. Art. 1446c-0, Secs.
218-9 3.051(k), (q) (part).)
218-10 (Sections 52.007-52.050 reserved for expansion)
218-11 SUBCHAPTER B. INCUMBENT LOCAL EXCHANGE COMPANIES
218-12 Sec. 52.051. POLICY. In adopting rules and establishing
218-13 procedures under this subchapter, the commission shall:
218-14 (1) attempt to balance the public interest in a
218-15 technologically advanced telecommunications system providing a wide
218-16 range of new and innovative services with traditional regulatory
218-17 concerns for:
218-18 (A) preserving universal service;
218-19 (B) prohibiting anticompetitive practices; and
218-20 (C) preventing the subsidization of competitive
218-21 services with revenues from regulated monopoly services; and
218-22 (2) incorporate an appropriate mix of regulatory and
218-23 market mechanisms reflecting the level and nature of competition in
218-24 the marketplace. (V.A.C.S. Art. 1446c-0, Sec. 3.051(g) (part).)
218-25 Sec. 52.052. APPLICABILITY. This subchapter does not apply
219-1 to basic local telecommunications service, including local measured
219-2 service. (V.A.C.S. Art. 1446c-0, Sec. 3.051(j) (part).)
219-3 Sec. 52.053. CERTAIN RATES PROHIBITED. A rate established
219-4 under this subchapter may not be:
219-5 (1) unreasonably preferential, prejudicial, or
219-6 discriminatory;
219-7 (2) subsidized either directly or indirectly by a
219-8 regulated monopoly service; or
219-9 (3) predatory or anticompetitive. (V.A.C.S.
219-10 Art. 1446c-0, Sec. 3.051(g) (part).)
219-11 Sec. 52.054. RULES AND PROCEDURES FOR INCUMBENT LOCAL
219-12 EXCHANGE COMPANIES. (a) To carry out the public policy stated in
219-13 Section 52.001, notwithstanding any other provision of this title,
219-14 the commission may adopt rules and establish procedures applicable
219-15 to incumbent local exchange companies to:
219-16 (1) determine the level of competition in a specific
219-17 telecommunications market or submarket; and
219-18 (2) provide appropriate regulatory treatment to allow
219-19 an incumbent local exchange company to respond to significant
219-20 competitive challenges.
219-21 (b) This section does not change the burden of proof on an
219-22 incumbent local exchange company under Sections 53.003, 53.006,
219-23 53.051, 53.052, 53.053, 53.054, 53.055, 53.057, 53.058, 53.060, and
219-24 53.062. (V.A.C.S. Art. 1446c-0, Sec. 3.051(e)(1).)
219-25 Sec. 52.055. HEARING TO DETERMINE LEVEL OF COMPETITION. In
220-1 determining the level of competition in a specific market or
220-2 submarket, the commission shall hold an evidentiary hearing to
220-3 consider:
220-4 (1) the number and size of telecommunications
220-5 utilities or other persons providing the same, equivalent, or
220-6 substitutable service;
220-7 (2) the extent to which the same, equivalent, or
220-8 substitutable service is available;
220-9 (3) the ability of a customer to obtain the same,
220-10 equivalent, or substitutable service at comparable rates and terms;
220-11 (4) the ability of a telecommunications utility or
220-12 other person to make the same, equivalent, or substitutable service
220-13 readily available at comparable rates and terms;
220-14 (5) the existence of a significant barrier to the
220-15 entry or exit of a provider of the service; and
220-16 (6) other relevant information the commission
220-17 determines is appropriate. (V.A.C.S. Art. 1446c-0, Sec.
220-18 3.051(e)(2).)
220-19 Sec. 52.056. SPECIFICALLY AUTHORIZED REGULATORY TREATMENTS.
220-20 The regulatory treatments the commission may implement under
220-21 Section 52.054 include:
220-22 (1) approval of a range of rates for a specific
220-23 service;
220-24 (2) approval of a customer-specific contract for a
220-25 specific service; and
221-1 (3) the detariffing of rates. (V.A.C.S. Art. 1446c-0,
221-2 Sec. 3.051(e)(3) (part).)
221-3 Sec. 52.057. CUSTOMER-SPECIFIC CONTRACTS. (a) The
221-4 commission shall approve a customer-specific contract that meets
221-5 the requirements of Subsection (b) to provide:
221-6 (1) central office based PBX-type services for a
221-7 system of 200 stations or more;
221-8 (2) billing and collection services;
221-9 (3) high-speed private line services of 1.544 megabits
221-10 or greater; or
221-11 (4) customized services.
221-12 (b) The commission shall approve a contract for a service
221-13 described by Subsection (a) if:
221-14 (1) the contract is filed before the 30th day before
221-15 the date the service contracted for is initiated;
221-16 (2) the contract is accompanied by an affidavit from
221-17 the person or entity contracting for the service stating that the
221-18 person or entity considered acquiring the same, equivalent, or
221-19 substitutable service by bid or quotation from a source other than
221-20 the incumbent local exchange company;
221-21 (3) the incumbent local exchange company recovers the
221-22 appropriate costs of providing the service; and
221-23 (4) approval of the contract is in the public
221-24 interest.
221-25 (c) The commission shall approve or deny a contract under
222-1 this section not later than the 30th day after the date the
222-2 contract is filed, unless the commission for good cause extends the
222-3 effective date for an additional 35 days.
222-4 (d) An incumbent local exchange company may not price
222-5 similar services provided under contracts governed by this section
222-6 in an unreasonably discriminatory manner.
222-7 (e) This section and Section 52.056(2) do not apply to:
222-8 (1) message telecommunications service;
222-9 (2) switched access service for an interexchange
222-10 carrier; or
222-11 (3) wide area telecommunications service.
222-12 (f) In this section, "similar services" means services that:
222-13 (1) are provided at or near the same point in time;
222-14 (2) have the same characteristics; and
222-15 (3) are provided under the same or similar
222-16 circumstances. (V.A.C.S. Art. 1446c-0, Secs. 3.051(e)(3) (part),
222-17 (j) (part).)
222-18 Sec. 52.058. NEW OR EXPERIMENTAL SERVICES OR PROMOTIONAL
222-19 RATES. (a) To encourage the rapid introduction of new or
222-20 experimental services or promotional rates, the commission shall
222-21 adopt rules and establish procedures that allow:
222-22 (1) the expedited introduction of new or experimental
222-23 services or promotional rates;
222-24 (2) the establishment and adjustment of rates; and
222-25 (3) the withdrawal of those services or promotional
223-1 rates.
223-2 (b) The rules and procedures described by Subsection (a)
223-3 must include rules and procedures to allow the governing body of a
223-4 municipality served by an incumbent local exchange company having
223-5 more than 500,000 access lines in this state to make requests to
223-6 the commission for new or experimental services or promotional
223-7 rates.
223-8 (c) A rate established or adjusted at the request of a
223-9 municipality may not:
223-10 (1) result in higher rates for ratepayers outside the
223-11 municipal boundaries; or
223-12 (2) include a rate for incumbent local exchange
223-13 company interexchange service or interexchange carrier access
223-14 service. (V.A.C.S. Art. 1446c-0, Sec. 3.051(f).)
223-15 Sec. 52.059. RATES TO COVER APPROPRIATE COSTS. (a) The
223-16 commission by rule shall adopt standards necessary to ensure that a
223-17 rate established under this subchapter covers appropriate costs as
223-18 determined by the commission.
223-19 (b) Until standards are set under Subsection (a), the
223-20 commission shall use a costing methodology that is in the public
223-21 interest to determine whether a rate established under this
223-22 subchapter covers appropriate costs. (V.A.C.S. Art. 1446c-0, Sec.
223-23 3.051(h).)
223-24 Sec. 52.060. ADMINISTRATIVE FEE OR ASSESSMENT. The
223-25 commission may prescribe and collect a fee or assessment from local
224-1 exchange companies necessary to recover the cost to the commission
224-2 and to the office of activities carried out and services provided
224-3 under this subchapter and Section 52.006. (V.A.C.S. Art. 1446c-0,
224-4 Sec. 3.051(i).)
224-5 (Sections 52.061-52.100 reserved for expansion)
224-6 SUBCHAPTER C. TELECOMMUNICATIONS UTILITIES
224-7 THAT ARE NOT DOMINANT CARRIERS
224-8 Sec. 52.101. APPLICABILITY. This subchapter applies only to
224-9 a telecommunications utility that is not:
224-10 (1) a dominant carrier; or
224-11 (2) the holder of a certificate of operating authority
224-12 or a service provider certificate of operating authority.
224-13 (V.A.C.S. Art. 1446c-0, Sec. 3.051(c) (part).)
224-14 Sec. 52.102. LIMITED REGULATORY AUTHORITY. Except as
224-15 otherwise provided by this subchapter and Subchapter D, Chapter 55,
224-16 the commission has only the following jurisdiction over a
224-17 telecommunications utility subject to this subchapter:
224-18 (1) to require registration under Section 52.103;
224-19 (2) to conduct an investigation under Section 52.104;
224-20 (3) to require the filing of reports as the commission
224-21 periodically directs;
224-22 (4) to require the maintenance of statewide average
224-23 rates or prices of telecommunications service;
224-24 (5) to require access to telecommunications service
224-25 under Section 52.105; and
225-1 (6) to require the quality of telecommunications
225-2 service provided to be adequate under Section 52.106. (V.A.C.S.
225-3 Art. 1446c-0, Sec. 3.051(c) (part).)
225-4 Sec. 52.103. REGISTRATION REQUIRED. (a) A
225-5 telecommunications utility shall register with the commission not
225-6 later than the 30th day after the date the utility commences
225-7 service to the public.
225-8 (b) A telecommunications utility that registers under
225-9 Subsection (a) shall file with the commission a description of:
225-10 (1) the location and type of service provided;
225-11 (2) the price to the public of that service; and
225-12 (3) other registration information the commission
225-13 directs.
225-14 (c) An interexchange telecommunications utility doing
225-15 business in this state shall maintain on file with the commission
225-16 tariffs or lists governing the terms of providing its services.
225-17 (V.A.C.S. Art. 1446c-0, Sec. 3.051(d).)
225-18 Sec. 52.104. COMMISSION MAY INVESTIGATE. (a) The
225-19 commission may investigate as necessary to determine the effect and
225-20 scope of competition in the telecommunications industry. The
225-21 investigation may include:
225-22 (1) identifying dominant carriers in the local
225-23 telecommunications and intraLATA interexchange telecommunications
225-24 industry; and
225-25 (2) defining the telecommunications market or markets.
226-1 (b) In conducting an investigation under this section, the
226-2 commission may:
226-3 (1) hold a hearing;
226-4 (2) issue a subpoena to compel the attendance of a
226-5 witness or the production of a document; and
226-6 (3) make findings of fact and decisions to administer
226-7 this title or a rule, order, or other action of the commission.
226-8 (V.A.C.S. Art. 1446c-0, Sec. 3.051(c) (part).)
226-9 Sec. 52.105. ACCESS TO CERTAIN SERVICES REQUIRED. (a) The
226-10 commission may require that each local exchange area have access to
226-11 local and interexchange telecommunications service, except as
226-12 otherwise provided by this section.
226-13 (b) The commission shall allow a telecommunications utility
226-14 to discontinue service to a local exchange area if:
226-15 (1) comparable service is available in the area; and
226-16 (2) discontinuing the service is not contrary to the
226-17 public interest.
226-18 (c) This section does not authorize the commission to
226-19 require a telecommunications utility to initiate service to a local
226-20 exchange area to which the telecommunications utility:
226-21 (1) did not provide service during the preceding
226-22 12-month period; and
226-23 (2) has not provided service previously for a
226-24 cumulative period of at least one year. (V.A.C.S. Art. 1446c-0,
226-25 Sec. 3.051(c) (part).)
227-1 Sec. 52.106. QUALITY OF SERVICE REQUIRED. The commission
227-2 may require the quality of telecommunications service provided in a
227-3 local exchange in which the commission determines that service has
227-4 deteriorated and become unreliable to be adequate to protect the
227-5 public interest and the interests of customers of that exchange.
227-6 (V.A.C.S. Art. 1446c-0, Sec. 3.051(c) (part).)
227-7 Sec. 52.107. PREDATORY PRICING. (a) The commission may
227-8 enter an order necessary to protect the public interest if the
227-9 commission finds by a preponderance of the evidence after notice
227-10 and hearing that an interexchange telecommunications utility has:
227-11 (1) engaged in predatory pricing; or
227-12 (2) attempted to engage in predatory pricing.
227-13 (b) A hearing held by the commission under Subsection (a)
227-14 must be based on a complaint from another interexchange
227-15 telecommunications utility.
227-16 (c) An order entered under Subsection (a) may include the
227-17 imposition on a specific service of the commission's full
227-18 regulatory authority under:
227-19 (1) this chapter;
227-20 (2) Chapters 14, 15, 51, 53, and 54; and
227-21 (3) Subchapters A, D, and H, Chapter 55.
227-22 (d) This section applies only to an interexchange
227-23 telecommunications utility. (V.A.C.S. Art. 1446c-0, Sec.
227-24 3.051(l).)
227-25 Sec. 52.108. OTHER PROHIBITED PRACTICES. The commission may
228-1 enter any order necessary to protect the public interest if the
228-2 commission finds after notice and hearing that a telecommunications
228-3 utility has:
228-4 (1) failed to maintain statewide average rates;
228-5 (2) abandoned interexchange message telecommunications
228-6 service to a local exchange area in a manner contrary to the public
228-7 interest; or
228-8 (3) engaged in a pattern of preferential or
228-9 discriminatory activities prohibited by Section 53.003, 55.005, or
228-10 55.006. (V.A.C.S. Art. 1446c-0, Secs. 3.051(m) (part), (q)
228-11 (part).)
228-12 Sec. 52.109. AVAILABILITY OF SERVICE. (a) The commission
228-13 may require a telecommunications utility that provides a service to
228-14 make that service available in an exchange served by the
228-15 telecommunications utility within a reasonable time after receipt
228-16 of a bona fide request for the service in that exchange.
228-17 (b) A telecommunications utility may not be required to
228-18 extend a service to an area if:
228-19 (1) the local exchange company is unable to provide
228-20 the required access or other service; or
228-21 (2) extending the service would, after consideration
228-22 of the public interest to be served, impose unreasonable costs on
228-23 or require unreasonable investments by the telecommunications
228-24 utility.
228-25 (c) The commission may require from a telecommunications
229-1 utility or a local exchange company information necessary to
229-2 enforce this section. (V.A.C.S. Art. 1446c-0, Secs. 3.051(o), (q)
229-3 (part).)
229-4 Sec. 52.110. BURDEN OF PROOF. (a) In a proceeding before
229-5 the commission in which it is alleged that a telecommunications
229-6 utility engaged in conduct in violation of Section 52.107, 52.108,
229-7 or 52.109, the burden of proof is on:
229-8 (1) a telecommunications utility complaining of
229-9 conduct committed against it in violation of this subchapter; or
229-10 (2) except as provided by Subsection (b), the
229-11 responding telecommunications utility if the proceedings are:
229-12 (A) brought by a customer or customer
229-13 representative who is not a telecommunications utility; or
229-14 (B) initiated by the commission.
229-15 (b) The commission may impose the burden of proof on the
229-16 complaining party in a proceeding described by Subsection (a)(2) if
229-17 the commission determines that placing the burden of proof on the
229-18 complaining party is in the public interest. (V.A.C.S.
229-19 Art. 1446c-0, Secs. 3.051(n), (q) (part).)
229-20 Sec. 52.111. COMMISSION MAY EXEMPT. The commission may
229-21 exempt from a requirement of this subchapter a telecommunications
229-22 utility that:
229-23 (1) does not have a significant effect on the public
229-24 interest, as determined by the commission; or
229-25 (2) relies solely on the facilities of others to
230-1 complete long distance calls, if the commission determines that the
230-2 exemption is in the public interest. (V.A.C.S. Art. 1446c-0, Secs.
230-3 3.051(p), (q) (part).)
230-4 (Sections 52.112-52.150 reserved for expansion)
230-5 SUBCHAPTER D. CERTIFICATE HOLDERS
230-6 Sec. 52.151. APPLICABILITY. This subchapter applies only to
230-7 a telecommunications utility that holds a certificate of operating
230-8 authority or a service provider certificate of operating authority.
230-9 (V.A.C.S. Art. 1446c-0, Secs. 3.051(r) (part), (s)(1) (part),
230-10 (s)(2) (part).)
230-11 Sec. 52.152. LIMITED REGULATORY AUTHORITY. Except as
230-12 otherwise specifically provided by this title, the commission has
230-13 only the following authority over a telecommunications utility
230-14 subject to this subchapter:
230-15 (1) to enforce this title under Subchapter B, Chapter
230-16 15;
230-17 (2) to assert jurisdiction over a specific service
230-18 under Subchapter E;
230-19 (3) to require co-carriage reciprocity; and
230-20 (4) to regulate condemnation and building access.
230-21 (V.A.C.S. Art. 1446c-0, Sec. 3.051(s)(1).)
230-22 Sec. 52.153. BOOKS AND RECORDS. The commission may
230-23 prescribe forms of books, accounts, records, and memoranda to be
230-24 kept by a telecommunications utility, but only as necessary to
230-25 enforce the limited jurisdiction over those companies that this
231-1 title provides to the commission. (V.A.C.S. Art. 1446c-0, Sec.
231-2 3.051(r).)
231-3 Sec. 52.154. COMMISSION MAY NOT OVERBURDEN. The commission
231-4 may not, by a rule or regulatory practice adopted under this
231-5 chapter, impose on a telecommunications utility a greater
231-6 regulatory burden than is imposed on a holder of a certificate of
231-7 convenience and necessity serving the same area. (V.A.C.S.
231-8 Art. 1446c-0, Sec. 3.051(s)(2).)
231-9 (Sections 52.155-52.200 reserved for expansion)
231-10 SUBCHAPTER E. DEREGULATION OF SERVICE
231-11 Sec. 52.201. DEREGULATION OF SERVICE. Notwithstanding any
231-12 other provision of this title, the commission may deregulate the
231-13 price of a service in a geographic market if, after notice and
231-14 hearing, the commission determines that:
231-15 (1) the incumbent local exchange company is not
231-16 dominant for the service in that geographic market; or
231-17 (2) the holder of a certificate of operating authority
231-18 who is a dominant carrier is no longer dominant for the service in
231-19 that geographic market. (V.A.C.S. Art. 1446c-0, Sec. 3.2572(a)
231-20 (part).)
231-21 Sec. 52.202. DETERMINATION OF GEOGRAPHIC MARKET. In
231-22 determining the geographic market under Section 52.201, the
231-23 commission shall consider the economic and technical conditions of
231-24 the market. (V.A.C.S. Art. 1446c-0, Sec. 3.2572(a) (part).)
231-25 Sec. 52.203. MARKET POWER TEST. (a) To determine whether
232-1 an incumbent local exchange company or holder of a certificate of
232-2 operating authority who is a dominant carrier is no longer dominant
232-3 for a service in a geographic market, the commission must find
232-4 that:
232-5 (1) there is an effective competitive alternative; and
232-6 (2) the incumbent local exchange company or
232-7 certificate holder does not have market power sufficient to
232-8 control, in a manner that is adverse to the public interest, the
232-9 price of the service in the geographic area.
232-10 (b) To determine whether the incumbent local exchange
232-11 company or certificate holder is dominant for a service in the
232-12 geographic area, the commission shall consider:
232-13 (1) the number and size of telecommunications
232-14 utilities or other persons who provide the same, equivalent, or
232-15 substitutable service in the relevant market;
232-16 (2) the extent to which the service is available in
232-17 the relevant market;
232-18 (3) the ability of customers in the relevant market to
232-19 obtain the same, equivalent, or substitutable service at comparable
232-20 rates and on comparable terms;
232-21 (4) the ability of a telecommunications utility or
232-22 other person to make the same, equivalent, or substitutable service
232-23 readily available in the relevant market at comparable rates and on
232-24 comparable terms;
232-25 (5) the proportion of the relevant market that is
233-1 being provided the service by a telecommunications utility other
233-2 than the incumbent local exchange company or holder of a
233-3 certificate of operating authority who is a dominant carrier; and
233-4 (6) other relevant information the commission
233-5 considers necessary. (V.A.C.S. Art. 1446c-0, Secs. 3.2572(b),
233-6 (c).)
233-7 Sec. 52.204. RATE FOR DEREGULATED SERVICE. If the price of
233-8 a service in a geographic market is deregulated under this
233-9 subchapter, the incumbent local exchange company or holder of a
233-10 certificate of operating authority may set the rate for the service
233-11 at any level higher than the service's long run incremental cost.
233-12 (V.A.C.S. Art. 1446c-0, Sec. 3.2572(a) (part).)
233-13 Sec. 52.205. INVESTIGATION OF COMPETITION. (a) On request
233-14 of an incumbent local exchange company or holder of a certificate
233-15 of operating authority who is a dominant carrier made in
233-16 conjunction with an application under this subchapter, the
233-17 commission shall investigate to determine the effect and scope of
233-18 competition in the geographic and service markets at issue.
233-19 (b) The commission has the power necessary and convenient to
233-20 conduct the investigation. In conducting an investigation, the
233-21 commission may:
233-22 (1) hold a hearing;
233-23 (2) issue a subpoena to compel the attendance of a
233-24 witness and the production of a document; and
233-25 (3) make findings of fact and decisions with respect
234-1 to the markets.
234-2 (c) A party to a proceeding may use, in an application for
234-3 pricing flexibility, the results of an investigation conducted
234-4 under this section. (V.A.C.S. Art. 1446c-0, Secs. 3.2572(e), (f).)
234-5 Sec. 52.206. REREGULATION OF MARKET. The commission, on its
234-6 own motion or on a complaint that the commission considers to have
234-7 merit, may assert regulation over a service in a geographic market
234-8 if:
234-9 (1) the incumbent local exchange company or holder of
234-10 a certificate of operating authority who was previously a dominant
234-11 carrier is found to again be dominant for the service in that
234-12 geographic market; or
234-13 (2) the provider of services under a certificate of
234-14 operating authority or service provider certificate of operating
234-15 authority is found to be dominant for the service in that
234-16 geographic market. (V.A.C.S. Art. 1446c-0, Sec. 3.2572(d).)
234-17 Sec. 52.207. REPORTS; CONFIDENTIAL INFORMATION. (a) In
234-18 conjunction with the commission's authority to collect and compile
234-19 information, the commission may collect a report from a holder of
234-20 a:
234-21 (1) certificate of operating authority; or
234-22 (2) service provider certificate of operating
234-23 authority.
234-24 (b) The commission shall maintain the confidentiality of
234-25 information contained in a report collected under this section that
235-1 is claimed to be confidential for competitive purposes. The
235-2 confidential information is exempt from disclosure under Chapter
235-3 552, Government Code.
235-4 (c) To protect the confidential information, the commission
235-5 shall aggregate the information to the maximum extent possible
235-6 considering the purpose of the proceeding. (V.A.C.S. Art. 1446c-0,
235-7 Sec. 3.2572(g).)
235-8 (Sections 52.208-52.250 reserved for expansion)
235-9 SUBCHAPTER F. REQUIRED REPORTS AND FILINGS; RECORDS
235-10 Sec. 52.251. TARIFF FILINGS. (a) A public utility shall
235-11 file with the commission a tariff showing each rate that is:
235-12 (1) subject to the commission's jurisdiction; and
235-13 (2) in effect for a utility service, product, or
235-14 commodity offered by the utility.
235-15 (b) The public utility shall file as a part of the tariff
235-16 required under Subsection (a) each rule that relates to or affects:
235-17 (1) a rate of the utility; or
235-18 (2) a utility service, product, or commodity furnished
235-19 by the utility. (V.A.C.S. Art. 1446c-0, Sec. 3.154.)
235-20 Sec. 52.252. DEPRECIATION ACCOUNT. The commission shall
235-21 require each public utility to carry a proper and adequate
235-22 depreciation account in accordance with:
235-23 (1) the rates and methods prescribed by the commission
235-24 under Section 53.056; and
235-25 (2) any other rule the commission adopts. (V.A.C.S.
236-1 Art. 1446c-0, Sec. 3.151(a) (part).)
236-2 Sec. 52.253. ACCOUNTS OF PROFITS AND LOSSES. A public
236-3 utility shall keep separate accounts showing profits or losses from
236-4 the sale or lease of merchandise, including an appliance, a
236-5 fixture, or equipment. (V.A.C.S. Art. 1446c-0, Sec. 3.151(b)
236-6 (part).)
236-7 Sec. 52.254. REPORT OF CERTAIN EXPENSES. The commission may
236-8 require a public utility to annually report the utility's
236-9 expenditures for:
236-10 (1) business gifts and entertainment; and
236-11 (2) advertising or public relations, including
236-12 expenditures for institutional and consumption-inducing purposes.
236-13 (V.A.C.S. Art. 1446c-0, Sec. 3.152(a).)
236-14 Sec. 52.255. AVAILABILITY OF RECORDS. Notwithstanding
236-15 Section 14.152, a book, account, record, or memorandum of a public
236-16 utility may be removed from this state if the book, account,
236-17 record, or memorandum is returned to this state for any commission
236-18 inspection authorized by this title. (V.A.C.S. Art. 1446c-0, Sec.
236-19 3.1545.)
236-20 CHAPTER 53. RATES
236-21 SUBCHAPTER A. GENERAL PROVISIONS
236-22 Sec. 53.001. AUTHORIZATION TO ESTABLISH AND REGULATE
236-23 RATES
236-24 Sec. 53.002. COMPLIANCE WITH TITLE
236-25 Sec. 53.003. JUST AND REASONABLE RATES
237-1 Sec. 53.004. EQUALITY OF RATES AND SERVICES
237-2 Sec. 53.005. RATES FOR AREA NOT IN MUNICIPALITY
237-3 Sec. 53.006. BURDEN OF PROOF
237-4 Sec. 53.007. LIMIT ON RECONNECTION FEE
237-5 (Sections 53.008-53.050 reserved for expansion)
237-6 SUBCHAPTER B. COMPUTATION OF RATES
237-7 Sec. 53.051. ESTABLISHING OVERALL REVENUES
237-8 Sec. 53.052. ESTABLISHING REASONABLE RETURN
237-9 Sec. 53.053. COMPONENTS OF INVESTED CAPITAL
237-10 Sec. 53.054. CONSTRUCTION WORK IN PROGRESS
237-11 Sec. 53.055. SEPARATIONS AND ALLOCATIONS
237-12 Sec. 53.056. DEPRECIATION, AMORTIZATION, AND DEPLETION
237-13 Sec. 53.057. NET INCOME; DETERMINATION OF REVENUES AND
237-14 EXPENSES
237-15 Sec. 53.058. CONSIDERATION OF PAYMENT TO AFFILIATE
237-16 Sec. 53.059. TREATMENT OF CERTAIN TAX BENEFITS
237-17 Sec. 53.060. COMPUTATION OF INCOME TAX; CONSOLIDATED RETURN
237-18 Sec. 53.061. ALLOWANCE OF CERTAIN
237-19 EXPENSES
237-20 Sec. 53.062. CONSIDERATION OF CERTAIN EXPENSES
237-21 Sec. 53.063. CONSIDERATION OF PROFIT OR LOSS FROM
237-22 SALE OR LEASE OF MERCHANDISE
237-23 Sec. 53.064. SELF-INSURANCE
237-24 Sec. 53.065. INTEREXCHANGE SERVICES; RATES OF
237-25 INCUMBENT LOCAL EXCHANGE COMPANY
238-1 (Sections 53.066-53.100 reserved for expansion)
238-2 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE
238-3 CHANGE PROPOSED BY UTILITY
238-4 Sec. 53.101. DEFINITION
238-5 Sec. 53.102. STATEMENT OF INTENT TO CHANGE RATES
238-6 Sec. 53.103. NOTICE OF INTENT TO CHANGE RATES
238-7 Sec. 53.104. EARLY EFFECTIVE DATE OF RATE CHANGE
238-8 Sec. 53.105. DETERMINATION OF PROPRIETY OF CHANGE; HEARING
238-9 Sec. 53.106. REGIONAL HEARING
238-10 Sec. 53.107. PREFERENCE TO HEARING
238-11 Sec. 53.108. RATE SUSPENSION; DEADLINE
238-12 Sec. 53.109. TEMPORARY RATES
238-13 Sec. 53.110. BONDED RATES
238-14 Sec. 53.111. ESTABLISHMENT OF FINAL RATES
238-15 Sec. 53.112. EXPIRATION OF SUSPENSION; EFFECT ON CERTAIN
238-16 RATES
238-17 Sec. 53.113. FCC-APPROVED TARIFFS FOR SWITCHED-ACCESS
238-18 SERVICE
238-19 (Sections 53.114-53.150 reserved for expansion)
238-20 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
238-21 Sec. 53.151. UNREASONABLE OR VIOLATIVE EXISTING RATES
238-22 Sec. 53.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
238-23 ANOTHER SOURCE
238-24 (Sections 53.153-53.200 reserved for expansion)
239-1 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENTS
239-2 Sec. 53.201. AUTOMATIC ADJUSTMENT FOR CHANGE IN COSTS
239-3 PROHIBITED
239-4 Sec. 53.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY
239-5 (Sections 53.203-53.250 reserved for expansion)
239-6 SUBCHAPTER F. REGULATORY POLICY FOR SMALL INCUMBENT LOCAL
239-7 EXCHANGE COMPANIES AND COOPERATIVES
239-8 Sec. 53.251. GENERAL POLICY
239-9 Sec. 53.252. ADOPTION OF CERTAIN POLICIES
239-10 (Sections 53.253-53.300 reserved for expansion)
239-11 SUBCHAPTER G. SPECIAL PROCEDURES FOR SMALL
239-12 LOCAL EXCHANGE COMPANIES AND COOPERATIVES
239-13 Sec. 53.301. DEFINITION
239-14 Sec. 53.302. APPLICABILITY
239-15 Sec. 53.303. PROVISIONS NOT EXCLUSIVE
239-16 Sec. 53.304. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE MINOR
239-17 CHANGES
239-18 Sec. 53.305. NOTICE TO AFFECTED CUSTOMERS
239-19 Sec. 53.306. COMMISSION REVIEW OF PROPOSED CHANGE
239-20 Sec. 53.307. COMPLIANCE WITH PRINCIPLES; REDUCED RATES
239-21 Sec. 53.308. FEES AND ASSESSMENTS
239-22 (Sections 53.309-53.350 reserved for expansion)
239-23 SUBCHAPTER H. PARTIAL DEREGULATION AVAILABLE TO
239-24 CERTAIN COOPERATIVE CORPORATIONS
239-25 Sec. 53.351. PROVISIONS NOT EXCLUSIVE
240-1 Sec. 53.352. PARTIAL DEREGULATION BY BALLOT
240-2 Sec. 53.353. VOTING PROCEDURES
240-3 Sec. 53.354. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE CERTAIN
240-4 CHANGES
240-5 Sec. 53.355. STATEMENT OF INTENT
240-6 Sec. 53.356. NOTICE TO AFFECTED PERSONS
240-7 Sec. 53.357. FILING OF AFFIDAVITS VERIFYING NOTICE
240-8 Sec. 53.358. COMMISSION REVIEW OF PROPOSED ACTION
240-9 Sec. 53.359. REVERSAL OF DEREGULATION BY BALLOT
240-10 CHAPTER 53. RATES
240-11 SUBCHAPTER A. GENERAL PROVISIONS
240-12 Sec. 53.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES.
240-13 (a) Except as otherwise provided by this title, the commission may
240-14 establish and regulate rates of a public utility and may adopt
240-15 rules for determining:
240-16 (1) the classification of customers and services; and
240-17 (2) the applicability of rates.
240-18 (b) A rule or order of the commission may not conflict with
240-19 a ruling of a federal regulatory body. (V.A.C.S. Art. 1446c-0,
240-20 Sec. 3.201.)
240-21 Sec. 53.002. COMPLIANCE WITH TITLE. A utility may not
240-22 charge or receive a rate for utility service except as provided by
240-23 this title. (V.A.C.S. Art. 1446c-0, Sec. 3.153 (part).)
240-24 Sec. 53.003. JUST AND REASONABLE RATES. (a) The commission
240-25 shall ensure that each rate a public utility or two or more public
241-1 utilities jointly make, demand, or receive is just and reasonable.
241-2 (b) A rate may not be unreasonably preferential,
241-3 prejudicial, or discriminatory but must be sufficient, equitable,
241-4 and consistent in application to each class of consumer.
241-5 (c) A public utility may not:
241-6 (1) grant an unreasonable preference or advantage
241-7 concerning rates to a person in a classification;
241-8 (2) subject a person in a classification to an
241-9 unreasonable prejudice or disadvantage concerning rates; or
241-10 (3) establish or maintain an unreasonable difference
241-11 concerning rates between localities or between classes of service.
241-12 (d) In establishing a public utility's rates, the commission
241-13 may treat as a single class two or more municipalities that a
241-14 public utility serves if the commission considers that treatment to
241-15 be appropriate. (V.A.C.S. Art. 1446c-0, Secs. 3.202 (part), 3.215
241-16 (part).)
241-17 Sec. 53.004. EQUALITY OF RATES AND SERVICES. (a) A public
241-18 utility may not directly or indirectly charge, demand, or receive
241-19 from a person a greater or lesser compensation for a service
241-20 provided or to be provided by the utility than the compensation
241-21 prescribed by the applicable tariff filed under Section 52.251.
241-22 (b) A person may not knowingly receive or accept a service
241-23 from a public utility for a compensation greater or less than the
241-24 compensation prescribed by the tariff.
241-25 (c) This title does not prevent a cooperative corporation
242-1 from returning to its members net earnings resulting from its
242-2 operations in proportion to the members' purchases from or through
242-3 the corporation. (V.A.C.S. Art. 1446c-0, Sec. 3.216.)
242-4 Sec. 53.005. RATES FOR AREA NOT IN MUNICIPALITY. Without
242-5 the approval of the commission, a public utility's rates for an
242-6 area not in a municipality may not exceed 115 percent of the
242-7 average of all rates for similar services for all municipalities
242-8 served by the same utility in the same county as that area.
242-9 (V.A.C.S. Art. 1446c-0, Sec. 3.214.)
242-10 Sec. 53.006. BURDEN OF PROOF. (a) In a proceeding
242-11 involving a proposed rate change, the public utility has the burden
242-12 of proving that:
242-13 (1) the rate change is just and reasonable, if the
242-14 utility proposes the change; or
242-15 (2) an existing rate is just and reasonable, if the
242-16 proposal is to reduce the rate.
242-17 (b) In a proceeding in which the rate of an incumbent local
242-18 exchange company is in issue, the incumbent local exchange company
242-19 has the burden of proving that the rate is just and reasonable.
242-20 (V.A.C.S. Art. 1446c-0, Sec. 3.204.)
242-21 Sec. 53.007. LIMIT ON RECONNECTION FEE. The commission
242-22 shall establish a reasonable limit on the amount that a local
242-23 exchange company may charge a customer for changing the location at
242-24 which the customer receives service. (V.A.C.S. Art. 1446c-0, Sec.
242-25 3.1556.)
243-1 (Sections 53.008-53.050 reserved for expansion)
243-2 SUBCHAPTER B. COMPUTATION OF RATES
243-3 Sec. 53.051. ESTABLISHING OVERALL REVENUES. In establishing
243-4 a public utility's rates, the commission shall establish the
243-5 utility's overall revenues at an amount that will permit the
243-6 utility a reasonable opportunity to earn a reasonable return on the
243-7 utility's invested capital used and useful in providing service to
243-8 the public in excess of the utility's reasonable and necessary
243-9 operating expenses. (V.A.C.S. Art. 1446c-0, Sec. 3.203(a).)
243-10 Sec. 53.052. ESTABLISHING REASONABLE RETURN. In
243-11 establishing a reasonable return on invested capital, the
243-12 commission shall consider applicable factors, including:
243-13 (1) the quality of the utility's services;
243-14 (2) the efficiency of the utility's operations; and
243-15 (3) the quality of the utility's management.
243-16 (V.A.C.S. Art. 1446c-0, Sec. 3.203(b).)
243-17 Sec. 53.053. COMPONENTS OF INVESTED CAPITAL. (a) Public
243-18 utility rates shall be based on the original cost, less
243-19 depreciation, of property used by and useful to the utility in
243-20 providing service.
243-21 (b) The original cost of property shall be determined at the
243-22 time the property is dedicated to public use, whether by the
243-23 utility that is the present owner or by a predecessor.
243-24 (c) In this section, "original cost" means the actual money
243-25 cost or the actual money value of consideration paid other than
244-1 money. (V.A.C.S. Art. 1446c-0, Secs. 3.206(a) (part), (c).)
244-2 Sec. 53.054. CONSTRUCTION WORK IN PROGRESS.
244-3 (a) Construction work in progress, at cost as recorded on the
244-4 public utility's books, may be included in the utility's rate base.
244-5 The inclusion of construction work in progress is an exceptional
244-6 form of rate relief that the commission may grant only if the
244-7 utility demonstrates that inclusion is necessary to the utility's
244-8 financial integrity.
244-9 (b) Construction work in progress may not be included in the
244-10 rate base for a major project under construction to the extent that
244-11 the project has been inefficiently or imprudently planned or
244-12 managed. (V.A.C.S. Art. 1446c-0, Secs. 3.206(a) (part), (b).)
244-13 Sec. 53.055. SEPARATIONS AND ALLOCATIONS. Costs of
244-14 facilities, revenues, expenses, taxes, and reserves shall be
244-15 separated or allocated as prescribed by the commission. (V.A.C.S.
244-16 Art. 1446c-0, Sec. 3.207.)
244-17 Sec. 53.056. DEPRECIATION, AMORTIZATION, AND DEPLETION.
244-18 (a) The commission shall establish proper and adequate rates and
244-19 methods of depreciation, amortization, or depletion for each class
244-20 of property of a public utility.
244-21 (b) On application of a utility, the commission shall
244-22 establish depreciation rates that promote the use of new technology
244-23 and infrastructure. In establishing rates under this subsection,
244-24 the commission shall consider depreciation practices of
244-25 nonregulated telecommunications providers.
245-1 (c) The rates and methods established under this section and
245-2 the depreciation account required by Section 52.252 shall be used
245-3 uniformly and consistently throughout rate-setting and appeal
245-4 proceedings.
245-5 (d) Notwithstanding this section, a company electing under
245-6 Chapter 58 may determine its own depreciation rates and
245-7 amortizations. The company shall notify the commission of any
245-8 change in those rates or amortizations. (V.A.C.S. Art. 1446c-0,
245-9 Sec. 3.151(a) (part).)
245-10 Sec. 53.057. NET INCOME; DETERMINATION OF REVENUES AND
245-11 EXPENSES. (a) A public utility's net income is the total revenues
245-12 of the utility less all reasonable and necessary expenses as
245-13 determined by the commission.
245-14 (b) The commission shall determine revenues and expenses in
245-15 a manner consistent with this subchapter.
245-16 (c) The commission may adopt reasonable rules with respect
245-17 to whether an expense is allowed for ratemaking purposes.
245-18 (V.A.C.S. Art. 1446c-0, Secs. 3.208(a), (e).)
245-19 Sec. 53.058. CONSIDERATION OF PAYMENT TO AFFILIATE.
245-20 (a) Except as provided by Subsection (b), the commission may not
245-21 allow as capital cost or as expense a payment to an affiliate for:
245-22 (1) cost of a service, property, right, or other item;
245-23 or
245-24 (2) interest expense.
245-25 (b) The commission may allow a payment described by
246-1 Subsection (a) only to the extent that the commission finds the
246-2 payment is reasonable and necessary for each item or class of items
246-3 as determined by the commission.
246-4 (c) A finding under Subsection (b) must include:
246-5 (1) a specific finding of the reasonableness and
246-6 necessity of each item or class of items allowed; and
246-7 (2) except as provided by Subsection (d), a finding
246-8 that the price to the utility is not higher than the prices charged
246-9 by the supplying affiliate to:
246-10 (A) its other affiliates or divisions for the
246-11 same item or class of items; or
246-12 (B) a nonaffiliated person within the same
246-13 market area or having the same market conditions.
246-14 (d) A finding under this section is not required as to the
246-15 prices charged by the supplying affiliate to its other affiliates
246-16 or divisions if the supplying affiliate computed its charges to the
246-17 utility in a manner consistent with Federal Communications
246-18 Commission rules.
246-19 (e) If the commission finds that the affiliate expense for
246-20 the test period is unreasonable, the commission shall:
246-21 (1) determine the reasonable level of the expense; and
246-22 (2) include that expense in determining the utility's
246-23 cost of service. (V.A.C.S. Art. 1446c-0, Sec. 3.208(b).)
246-24 Sec. 53.059. TREATMENT OF CERTAIN TAX BENEFITS. (a) In
246-25 determining the allocation of tax savings derived from liberalized
247-1 depreciation and amortization, the investment tax credit, and the
247-2 application of similar methods, the commission shall:
247-3 (1) balance equitably the interests of present and
247-4 future customers; and
247-5 (2) apportion accordingly the benefits between
247-6 consumers and the public utility.
247-7 (b) If a public utility retains a portion of the investment
247-8 tax credit, that portion shall be deducted from the original cost
247-9 of the facilities or other addition to the rate base to which the
247-10 credit applied to the extent allowed by the Internal Revenue Code.
247-11 (V.A.C.S. Art. 1446c-0, Sec. 3.151(c).)
247-12 Sec. 53.060. COMPUTATION OF INCOME TAX; CONSOLIDATED RETURN.
247-13 (a) Unless it is shown to the satisfaction of the commission that
247-14 it was reasonable to choose not to consolidate returns, a public
247-15 utility's income taxes shall be computed as though a consolidated
247-16 return had been filed and the utility had realized its fair share
247-17 of the savings resulting from that return, if:
247-18 (1) the utility is a member of an affiliated group
247-19 eligible to file a consolidated income tax return; and
247-20 (2) it is advantageous to the utility to do so.
247-21 (b) The amount of income tax that a consolidated group of
247-22 which a public utility is a member saves, because the consolidated
247-23 return eliminates the intercompany profit on purchases by the
247-24 utility from an affiliate, shall be applied to reduce the cost of
247-25 the property or service purchased from the affiliate.
248-1 (c) The investment tax credit allowed against federal income
248-2 taxes, to the extent retained by the utility, shall be applied as a
248-3 reduction in the rate-based contribution of the assets to which the
248-4 credit applies, to the extent and at the rate allowed by the
248-5 Internal Revenue Code. (V.A.C.S. Art. 1446c-0, Sec. 3.208(c).)
248-6 Sec. 53.061. ALLOWANCE OF CERTAIN EXPENSES. (a) The
248-7 commission may not allow as a cost or expense for ratemaking
248-8 purposes:
248-9 (1) an expenditure for legislative advocacy; or
248-10 (2) an expenditure described by Section 52.254 that
248-11 the commission determines to be not in the public interest.
248-12 (b) The commission may allow as a cost or expense reasonable
248-13 charitable or civic contributions not to exceed the amount approved
248-14 by the commission. (V.A.C.S. Art. 1446c-0, Secs. 3.152(b), (c),
248-15 (d).)
248-16 Sec. 53.062. CONSIDERATION OF CERTAIN EXPENSES. The
248-17 commission may not consider for ratemaking purposes:
248-18 (1) an expenditure for legislative advocacy, made
248-19 directly or indirectly, including legislative advocacy expenses
248-20 included in trade association dues;
248-21 (2) an expenditure for costs of processing a refund or
248-22 credit under Section 53.110; or
248-23 (3) any other expenditure, including an executive
248-24 salary, advertising expense, legal expense, or civil penalty or
248-25 fine the commission finds to be unreasonable, unnecessary, or not
249-1 in the public interest. (V.A.C.S. Art. 1446c-0, Sec. 3.208(d).)
249-2 Sec. 53.063. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
249-3 LEASE OF MERCHANDISE. In establishing a public utility's rates,
249-4 the commission may not consider a profit or loss that results from
249-5 the sale or lease of merchandise, including appliances, fixtures,
249-6 or equipment, to the extent that merchandise is not integral to
249-7 providing utility service. (V.A.C.S. Art. 1446c-0, Sec. 3.151(b)
249-8 (part).)
249-9 Sec. 53.064. SELF-INSURANCE. (a) A public utility may
249-10 self-insure all or part of the utility's potential liability or
249-11 catastrophic property loss, including windstorm, fire, and
249-12 explosion losses, that could not have been reasonably anticipated
249-13 and included under operating and maintenance expenses.
249-14 (b) The commission shall approve a self-insurance plan under
249-15 this section if the commission finds that:
249-16 (1) the coverage is in the public interest;
249-17 (2) the plan, considering all costs, is a lower cost
249-18 alternative to purchasing commercial insurance; and
249-19 (3) ratepayers will receive the benefits of the
249-20 savings.
249-21 (c) In computing a utility's reasonable and necessary
249-22 expenses under this subchapter, the commission, to the extent the
249-23 commission finds is in the public interest, shall allow as a
249-24 necessary expense money credited to a reserve account for
249-25 self-insurance. The commission shall determine reasonableness
250-1 under this subsection:
250-2 (1) from information provided at the time the
250-3 self-insurance plan and reserve account are established; and
250-4 (2) on the filing of a rate case by a utility that has
250-5 a reserve account.
250-6 (d) After a reserve account for self-insurance is
250-7 established, the commission shall:
250-8 (1) determine whether the account has a surplus or
250-9 shortage under Subsection (e); and
250-10 (2) subtract any surplus from or add any shortage to
250-11 the utility's rate base.
250-12 (e) A surplus in the reserve account exists if the charges
250-13 against the account are less than the money credited to the
250-14 account. A shortage in the reserve account exists if the charges
250-15 against the account are greater than the money credited to the
250-16 account.
250-17 (f) The commission shall adopt rules governing
250-18 self-insurance under this section. (V.A.C.S. Art. 1446c-0, Sec.
250-19 3.209.)
250-20 Sec. 53.065. INTEREXCHANGE SERVICES; RATES OF INCUMBENT
250-21 LOCAL EXCHANGE COMPANY. (a) An incumbent local exchange company's
250-22 rates for interexchange telecommunications services must be
250-23 statewide average rates except as ordered by the commission after
250-24 application and hearing.
250-25 (b) This section does not limit the ability of an incumbent
251-1 local exchange company to contract for high-speed private line
251-2 services of 1.544 megabits or greater under Section 52.057.
251-3 (V.A.C.S. Art. 1446c-0, Sec. 3.303.)
251-4 (Sections 53.066-53.100 reserved for expansion)
251-5 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE
251-6 CHANGE PROPOSED BY UTILITY
251-7 Sec. 53.101. DEFINITION. In this subchapter, "major change"
251-8 means an increase in rates that would increase the aggregate
251-9 revenues of the applicant more than the greater of $100,000 or
251-10 2-1/2 percent. The term does not include an increase in rates that
251-11 the commission allows to go into effect or the utility makes under
251-12 an order of the commission after hearings held with public notice.
251-13 (V.A.C.S. Art. 1446c-0, Sec. 3.211(b) (part).)
251-14 Sec. 53.102. STATEMENT OF INTENT TO CHANGE RATES. (a) A
251-15 utility may not change its rates unless the utility files a
251-16 statement of its intent with the commission at least 35 days before
251-17 the effective date of the proposed change.
251-18 (b) The utility shall also mail or deliver a copy of the
251-19 statement of intent to the appropriate officer of each affected
251-20 municipality.
251-21 (c) The statement of intent must include:
251-22 (1) proposed revisions of tariffs; and
251-23 (2) a detailed statement of:
251-24 (A) each proposed change;
251-25 (B) the effect the proposed change is expected
252-1 to have on the revenues of the utility;
252-2 (C) each class and number of utility consumers
252-3 affected; and
252-4 (D) any other information required by the
252-5 commission's rules. (V.A.C.S. Art. 1446c-0, Sec. 3.211(a) (part).)
252-6 Sec. 53.103. NOTICE OF INTENT TO CHANGE RATES. (a) The
252-7 utility shall:
252-8 (1) publish, in conspicuous form and place, notice to
252-9 the public of the proposed change once each week for four
252-10 successive weeks before the effective date of the proposed change
252-11 in a newspaper having general circulation in each county containing
252-12 territory affected by the proposed change; and
252-13 (2) mail notice of the proposed change to any other
252-14 affected person as required by the commission's rules.
252-15 (b) The commission may waive the publication of notice
252-16 requirement prescribed by Subsection (a) in a proceeding that
252-17 involves only a rate reduction for each affected ratepayer. The
252-18 applicant shall give notice of the proposed rate change by mail to
252-19 each affected utility customer.
252-20 (c) The commission by rule shall define other proceedings
252-21 for which the publication of notice requirement prescribed by
252-22 Subsection (a) may be waived on a showing of good cause. A waiver
252-23 may not be granted in a proceeding involving a rate increase to any
252-24 class or category of ratepayer. (V.A.C.S. Art. 1446c-0, Sec.
252-25 3.211(a) (part).)
253-1 Sec. 53.104. EARLY EFFECTIVE DATE OF RATE CHANGE. (a) For
253-2 good cause shown, the commission may allow a rate change, other
253-3 than a major change, to take effect:
253-4 (1) before the end of the 35-day period prescribed by
253-5 Section 53.102; and
253-6 (2) under conditions the commission prescribes,
253-7 subject to suspension as provided by this subchapter.
253-8 (b) The utility shall immediately revise its tariffs to
253-9 include the change. (V.A.C.S. Art. 1446c-0, Sec. 3.211(b) (part).)
253-10 Sec. 53.105. DETERMINATION OF PROPRIETY OF CHANGE; HEARING.
253-11 (a) If a tariff changing rates is filed with the commission, the
253-12 commission shall, on complaint by an affected person, or may, on
253-13 its own motion, not later than the 30th day after the effective
253-14 date of the change, enter on a hearing to determine the propriety
253-15 of the change.
253-16 (b) The commission shall hold a hearing in every case in
253-17 which the change constitutes a major change. The commission may,
253-18 however, use an informal proceeding if the commission does not
253-19 receive a complaint before the 46th day after the date notice of
253-20 the change is filed.
253-21 (c) The commission shall give reasonable notice of the
253-22 hearing, including notice to the governing body of each affected
253-23 municipality and county. The utility is not required to provide a
253-24 formal answer or file any other formal pleading in response to the
253-25 notice, and the absence of an answer does not affect an order for a
254-1 hearing. (V.A.C.S. Art. 1446c-0, Sec. 3.211(c) (part).)
254-2 Sec. 53.106. REGIONAL HEARING. The commission shall hold a
254-3 regional hearing at an appropriate location in a case in which the
254-4 commission determines it is in the public interest to hear
254-5 testimony at a regional hearing for inclusion in the record.
254-6 (V.A.C.S. Art. 1446c-0, Sec. 3.211(c) (part).)
254-7 Sec. 53.107. PREFERENCE TO HEARING. The commission shall:
254-8 (1) give preference to a hearing under this subchapter
254-9 and to deciding questions arising under this subchapter and
254-10 Subchapter E over any other question pending before it; and
254-11 (2) decide the questions as quickly as possible.
254-12 (V.A.C.S. Art. 1446c-0, Sec. 3.211(d) (part).)
254-13 Sec. 53.108. RATE SUSPENSION; DEADLINE. (a) Pending the
254-14 hearing and a decision, the commission, after delivering to the
254-15 utility a written statement of the commission's reasons, may
254-16 suspend the rate change for not longer than 150 days after the date
254-17 the rate change would otherwise be effective.
254-18 (b) The 150-day period prescribed by Subsection (a) shall be
254-19 extended two days for each day the actual hearing on the merits of
254-20 the case exceeds 15 days.
254-21 (c) If the commission does not make a final determination
254-22 concerning a rate change before expiration of the suspension
254-23 period, the commission is considered to have approved the change.
254-24 This approval is subject to the authority of the commission
254-25 thereafter to continue a hearing in progress. (V.A.C.S.
255-1 Art. 1446c-0, Sec. 3.211(d) (part).)
255-2 Sec. 53.109. TEMPORARY RATES. (a) The commission may
255-3 establish temporary rates to be in effect during the suspension
255-4 period under Section 53.108.
255-5 (b) If the commission does not establish temporary rates,
255-6 the rates in effect when the suspended tariff was filed continue in
255-7 effect during the suspension period. (V.A.C.S. Art. 1446c-0, Sec.
255-8 3.211(d) (part).)
255-9 Sec. 53.110. BONDED RATES. (a) A utility may put a changed
255-10 rate into effect by filing a bond with the commission if:
255-11 (1) the 150-day suspension period has been extended
255-12 under Section 53.108(b); and
255-13 (2) the commission fails to make a final determination
255-14 before the 151st day after the date the rate change would otherwise
255-15 be effective.
255-16 (b) The bonded rate may not exceed the proposed rate.
255-17 (c) The bond must be:
255-18 (1) payable to the commission in an amount, in a form,
255-19 and with a surety approved by the commission; and
255-20 (2) conditioned on refund.
255-21 (d) The utility shall refund or credit against future bills:
255-22 (1) money collected under the bonded rates in excess
255-23 of the rate finally ordered; and
255-24 (2) interest on that money, at the current interest
255-25 rate as determined by the commission. (V.A.C.S. Art. 1446c-0, Sec.
256-1 3.211(e).)
256-2 Sec. 53.111. ESTABLISHMENT OF FINAL RATES. (a) If, after
256-3 hearing, the commission finds the rates are unreasonable or in
256-4 violation of law, the commission shall:
256-5 (1) enter an order establishing the rates the utility
256-6 shall charge or apply for the service in question; and
256-7 (2) serve a copy of the order on the utility.
256-8 (b) The rates established in the order shall be observed
256-9 thereafter until changed as provided by this title.
256-10 (c) This section does not apply to a company electing under
256-11 Chapter 58 or 59 except as otherwise provided by those chapters or
256-12 by Chapter 60. (V.A.C.S. Art. 1446c-0, Sec. 3.211(f).)
256-13 Sec. 53.112. EXPIRATION OF SUSPENSION; EFFECT ON CERTAIN
256-14 RATES. (a) Notwithstanding Section 53.111(a), if the commission
256-15 does not make a final determination concerning an incumbent local
256-16 exchange company's rate change before expiration of the 150-day
256-17 suspension period, the rates finally approved by the commission
256-18 take effect on and the incumbent local exchange company is entitled
256-19 to collect those rates from the date the 150-day suspension period
256-20 expired.
256-21 (b) A surcharge or other charge necessary to effectuate this
256-22 section may not be recovered over a period of less than 90 days
256-23 from the date of the commission's final order. (V.A.C.S.
256-24 Art. 1446c-0, Sec. 3.211(h).)
256-25 Sec. 53.113. FCC-APPROVED TARIFFS FOR SWITCHED-ACCESS
257-1 SERVICE. (a) An incumbent local exchange company may file with
257-2 the commission tariffs for switched-access service that have been
257-3 approved by the Federal Communications Commission. The tariffs
257-4 must include all rate elements in the company's interstate access
257-5 tariff other than end-user charges.
257-6 (b) Not later than the 60th day after the date a company
257-7 files tariffs under Subsection (a), the commission shall order the
257-8 rates and terms to be the incumbent local exchange company's
257-9 intrastate switched-access rates and terms if, on review, the
257-10 tariffs contain the same rates and terms, excluding end-user
257-11 charges, as approved by the Federal Communications Commission.
257-12 (V.A.C.S. Art. 1446c-0, Sec. 3.211(j).)
257-13 (Sections 53.114-53.150 reserved for expansion)
257-14 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
257-15 Sec. 53.151. UNREASONABLE OR VIOLATIVE EXISTING RATES.
257-16 (a) If the commission, on its own motion or on complaint by an
257-17 affected person, after reasonable notice and hearing, finds that
257-18 the existing rates of a public utility for a service are
257-19 unreasonable or in violation of law, the commission shall:
257-20 (1) enter an order establishing the just and
257-21 reasonable rates to be observed thereafter, including maximum or
257-22 minimum rates; and
257-23 (2) serve a copy of the order on the utility.
257-24 (b) The rates established under Subsection (a) constitute
257-25 the legal rates of the public utility until changed as provided by
258-1 this title.
258-2 (c) This section does not apply to a company electing under
258-3 Chapter 58 or Chapter 59 except as otherwise provided by those
258-4 chapters. (V.A.C.S. Art. 1446c-0, Secs. 3.210(a), (c) (part).)
258-5 Sec. 53.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
258-6 ANOTHER SOURCE. If a public utility does not produce or generate
258-7 the service that it distributes, transmits, or furnishes to the
258-8 public for compensation but obtains the service from another
258-9 source, the commission may investigate the cost of that production
258-10 or generation in an investigation of the reasonableness of the
258-11 utility's rates. (V.A.C.S. Art. 1446c-0, Sec. 3.210(b).)
258-12 (Sections 53.153-53.200 reserved for expansion)
258-13 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENTS
258-14 Sec. 53.201. AUTOMATIC ADJUSTMENT FOR CHANGE IN COSTS
258-15 PROHIBITED. The commission may not establish a rate or tariff that
258-16 authorizes a utility to automatically adjust and pass through to
258-17 the utility's customers a change in the utility's costs. (V.A.C.S.
258-18 Art. 1446c-0, Sec 3.211(g) (part).)
258-19 Sec. 53.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY.
258-20 (a) The commission, on its own motion or on the petition of a
258-21 utility, shall provide for the adjustment of the utility's billing
258-22 to reflect an increase or decrease in the utility's tax liability
258-23 to this state if the increase or decrease:
258-24 (1) results from Chapter 5, Acts of the 72nd
258-25 Legislature, 1st Called Session, 1991; and
259-1 (2) is attributable to an activity subject to the
259-2 commission's jurisdiction.
259-3 (b) The commission shall apportion pro rata to each type and
259-4 class of service provided by the utility any billing adjustment
259-5 under this section. The adjustment:
259-6 (1) shall be made effective at the same time as the
259-7 increase or decrease of tax liability described by Subsection
259-8 (a)(1), or as soon after that increase or decrease as is reasonably
259-9 practical; and
259-10 (2) remains effective only until the commission alters
259-11 the adjustment as provided by this section or enters an order for
259-12 the utility under Subchapter C or Subchapter D.
259-13 (c) Each year after an original adjustment, the commission
259-14 shall:
259-15 (1) review the utility's increase or decrease of tax
259-16 liability described by Subsection (a)(1); and
259-17 (2) alter the adjustment as necessary to reflect the
259-18 increase or decrease.
259-19 (d) A proceeding under this section is not a rate case under
259-20 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 3.211(i).)
259-21 (Sections 53.203-53.250 reserved for expansion)
259-22 SUBCHAPTER F. REGULATORY POLICY FOR SMALL INCUMBENT LOCAL
259-23 EXCHANGE COMPANIES AND COOPERATIVES
259-24 Sec. 53.251. GENERAL POLICY. Regulatory policy should
259-25 recognize that:
260-1 (1) there are differences between small and large
260-2 incumbent local exchange companies;
260-3 (2) there are a large number of customer-owned
260-4 telephone cooperatives and small, locally owned investor companies;
260-5 and
260-6 (3) it is appropriate to provide incentives and
260-7 flexibility to allow an incumbent local exchange company that
260-8 serves a rural area to:
260-9 (A) provide existing services; and
260-10 (B) introduce new technology and new services in
260-11 a prompt, efficient, and economical manner. (V.A.C.S.
260-12 Art. 1446c-0, Sec. 3.213(a).)
260-13 Sec. 53.252. ADOPTION OF CERTAIN POLICIES. Notwithstanding
260-14 any other provision of this title, the commission shall consider
260-15 and may adopt policies to:
260-16 (1) provide for evaluation of the overall
260-17 reasonableness of the rates of a rural or small incumbent local
260-18 exchange company or cooperative not more frequently than once every
260-19 three years;
260-20 (2) permit consideration of future construction plans
260-21 and operational changes in evaluating the reasonableness of the
260-22 rates of a rural or small incumbent local exchange company or
260-23 cooperative; or
260-24 (3) allow a rural or small incumbent local exchange
260-25 company or cooperative to:
261-1 (A) provide required information by report or by
261-2 other means, as necessary, including a required rate filing
261-3 package, in substantially less burdensome and complex form than is
261-4 required of a larger incumbent local exchange company;
261-5 (B) change depreciation and amortization rates,
261-6 if customer rates are not affected, after notice to the commission,
261-7 subject to commission review in a proceeding under Subchapter C or
261-8 Subchapter D;
261-9 (C) adopt for a new service the rates for the
261-10 same or a substantially similar service offered by a larger
261-11 incumbent local exchange company, without additional cost
261-12 justification; and
261-13 (D) submit to the commission, instead of a
261-14 management audit otherwise required by law, policy, or rule,
261-15 financial audits regularly performed by an independent auditor or
261-16 required and performed as a result of the company's or
261-17 cooperative's participation in a federal or state financing or
261-18 revenue-sharing program. (V.A.C.S. Art. 1446c-0, Sec. 3.213(j)
261-19 (part).)
261-20 (Sections 53.253-53.300 reserved for expansion)
261-21 SUBCHAPTER G. SPECIAL PROCEDURES FOR SMALL
261-22 LOCAL EXCHANGE COMPANIES AND COOPERATIVES
261-23 Sec. 53.301. DEFINITION. (a) In this subchapter, "minor
261-24 change" means a change, including the restructuring of rates of
261-25 existing services, that:
262-1 (1) decreases the rates or revenues of an incumbent
262-2 local exchange company; or
262-3 (2) together with any other rate or proposed or
262-4 approved tariff changes in the 12 months preceding the effective
262-5 date of the proposed change, increases the company's total
262-6 regulated intrastate gross annual revenues by not more than five
262-7 percent.
262-8 (b) With regard to a change to a basic local access line
262-9 rate, a "minor change" does not include a change that, together
262-10 with any other change to the basic local access line rate that took
262-11 effect during the 12 months preceding the effective date of the
262-12 proposed change, results in an increase of more than 10 percent.
262-13 (V.A.C.S. Art. 1446c-0, Sec. 3.213(h).)
262-14 Sec. 53.302. APPLICABILITY. This subchapter does not apply
262-15 to an incumbent local exchange company that is a cooperative
262-16 corporation partially deregulated under Subchapter H. (V.A.C.S.
262-17 Art. 1446c-0, Sec. 3.213(l).)
262-18 Sec. 53.303. PROVISIONS NOT EXCLUSIVE. This subchapter does
262-19 not prohibit:
262-20 (1) an incumbent local exchange company from filing
262-21 for a new service or rate change under another section of this
262-22 title; or
262-23 (2) the commission from conducting a review under
262-24 Subchapter D. (V.A.C.S. Art. 1446c-0, Sec. 3.213(g).)
262-25 Sec. 53.304. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE
263-1 MINOR CHANGES. (a) An incumbent local exchange company may offer
263-2 an extended local calling service or a new service on an optional
263-3 basis or make a minor change in its rates or tariffs if the
263-4 company:
263-5 (1) is a cooperative corporation or has, together with
263-6 all affiliated incumbent local exchange companies, fewer than
263-7 31,000 access lines in service in this state;
263-8 (2) files with the commission and the office a
263-9 statement of intent, as prescribed by Subsection (b), not later
263-10 than the 91st day before the effective date of the proposed change;
263-11 (3) provides notice as prescribed by Section 53.305;
263-12 and
263-13 (4) files with the commission affidavits verifying
263-14 that notice as prescribed by Section 53.305 was provided.
263-15 (b) The statement of intent must include:
263-16 (1) a copy of a resolution adopted by the incumbent
263-17 local exchange company's board of directors approving the proposed
263-18 change;
263-19 (2) a description of the services affected by the
263-20 proposed change;
263-21 (3) a copy of the proposed tariff for the affected
263-22 service;
263-23 (4) a copy of the customer notice required by
263-24 Subsection (a)(3);
263-25 (5) the number of access lines the company and each
264-1 affiliate have in service in this state; and
264-2 (6) the amount by which the company's total regulated
264-3 intrastate gross annual revenues will increase or decrease as a
264-4 result of the proposed change. (V.A.C.S. Art. 1446c-0, Secs.
264-5 3.213(b), (c).)
264-6 Sec. 53.305. NOTICE TO AFFECTED CUSTOMERS. (a) A company
264-7 shall provide notice of a proposed change to affected customers in
264-8 the manner prescribed by the commission.
264-9 (b) Notice must:
264-10 (1) be provided not later than the 61st day before the
264-11 effective date of the proposed change; and
264-12 (2) include:
264-13 (A) a description of the services affected by
264-14 the proposed change;
264-15 (B) the effective date of the proposed change;
264-16 (C) an explanation of the customer's right to
264-17 petition the commission for a review under Section 53.306,
264-18 including the number of persons required to petition before a
264-19 commission review will occur;
264-20 (D) an explanation of the customer's right to
264-21 information concerning how to obtain a copy of the proposed tariff
264-22 from the company;
264-23 (E) the amount by which the company's total
264-24 regulated intrastate gross annual revenues will increase or
264-25 decrease as a result of the proposed change; and
265-1 (F) a list of rates that are affected by the
265-2 proposed rate change. (V.A.C.S. Art. 1446c-0, Sec. 3.213(d).)
265-3 Sec. 53.306. COMMISSION REVIEW OF PROPOSED CHANGE. (a) The
265-4 commission shall review a proposed change filed under this
265-5 subchapter if:
265-6 (1) the commission receives complaints relating to the
265-7 proposed change signed by a number of affected local service
265-8 customers equal at least to the lesser of 1,500 or five percent of
265-9 those customers;
265-10 (2) the commission receives a complaint relating to
265-11 the proposed change from an affected intrastate access customer, or
265-12 a group of affected intrastate access customers, that in the
265-13 preceding 12 months accounted for more than 10 percent of the
265-14 company's total intrastate gross access revenues;
265-15 (3) the proposed change is not a minor change;
265-16 (4) the company does not comply with the procedural
265-17 requirements of this subchapter; or
265-18 (5) the proposed change is inconsistent with the
265-19 commission's substantive policies as expressed in its rules.
265-20 (b) The commission may suspend a tariff proposed under this
265-21 subchapter during the review. (V.A.C.S. Art. 1446c-0, Secs.
265-22 3.213(e), (f).)
265-23 Sec. 53.307. COMPLIANCE WITH PRINCIPLES; REDUCED RATES. A
265-24 rate established under this subchapter must be in accordance with
265-25 the rate-setting principles of this chapter, except that a company
266-1 may provide to its board members, officers, employees, or agents
266-2 free or reduced rates for services. (V.A.C.S. Art. 1446c-0, Sec.
266-3 3.213(i).)
266-4 Sec. 53.308. FEES AND ASSESSMENTS. The commission may
266-5 prescribe and collect a fee or assessment from incumbent local
266-6 exchange companies necessary to recover the cost to the commission
266-7 and to the office of activities carried out and services provided
266-8 under:
266-9 (1) this subchapter;
266-10 (2) Section 53.112;
266-11 (3) Subchapter H; and
266-12 (4) Section 55.004. (V.A.C.S. Art. 1446c-0, Sec.
266-13 3.213(k).)
266-14 (Sections 53.309-53.350 reserved for expansion)
266-15 SUBCHAPTER H. PARTIAL DEREGULATION AVAILABLE TO
266-16 CERTAIN COOPERATIVE CORPORATIONS
266-17 Sec. 53.351. PROVISIONS NOT EXCLUSIVE. (a) This subchapter
266-18 does not:
266-19 (1) prohibit a cooperative from filing for a new
266-20 service or a rate change under another applicable provision of this
266-21 title; or
266-22 (2) affect the application of a provision of this
266-23 title not directly related to:
266-24 (A) establishing rates; or
266-25 (B) the authority of the commission to require a
267-1 cooperative to file a report required under this title or the
267-2 commission's rules.
267-3 (b) Notwithstanding any other provision of this subchapter,
267-4 the commission may conduct a review under Subchapter D. (V.A.C.S.
267-5 Art. 1446c-0, Secs. 3.2135(j), (k).)
267-6 Sec. 53.352. PARTIAL DEREGULATION BY BALLOT. (a) An
267-7 incumbent local exchange company that is a cooperative corporation
267-8 may vote to partially deregulate the cooperative by sending a
267-9 ballot to each cooperative member. The incumbent local exchange
267-10 company may include the ballot in a bill or send the ballot
267-11 separately. The ballot shall be printed to permit voting for or
267-12 against the proposition: "Authorizing the partial deregulation of
267-13 the (name of the cooperative)."
267-14 (b) The cooperative is partially deregulated if a majority
267-15 of the ballots returned to the cooperative not later than the 45th
267-16 day after the date the ballots are mailed favor deregulation.
267-17 (V.A.C.S. Art. 1446c-0, Secs. 3.2135(a), (b).)
267-18 Sec. 53.353. VOTING PROCEDURES. The commission by rule
267-19 shall prescribe the voting procedures a cooperative must use under
267-20 this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(i).)
267-21 Sec. 53.354. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE
267-22 CERTAIN CHANGES. After the initial balloting, a cooperative may
267-23 offer extended local calling services, offer new services on an
267-24 optional basis, or make changes in its rates or tariffs if the
267-25 cooperative:
268-1 (1) files a statement of intent under Section 53.355;
268-2 (2) provides notice of the proposed action to each
268-3 customer and municipality as prescribed by Section 53.356; and
268-4 (3) files with the commission affidavits verifying
268-5 that notice was provided as prescribed by Section 53.357.
268-6 (V.A.C.S. Art. 1446c-0, Sec. 3.2135(c).)
268-7 Sec. 53.355. STATEMENT OF INTENT. (a) A cooperative must
268-8 file a statement of intent to use this subchapter with the
268-9 commission and the office not later than the 61st day before the
268-10 effective date of the proposed change.
268-11 (b) The statement must include:
268-12 (1) a copy of a resolution, signed by a majority of
268-13 the members of the cooperative's board of directors, approving the
268-14 proposed action and authorizing the filing of the statement of
268-15 intent;
268-16 (2) a description of the services affected by the
268-17 proposed action;
268-18 (3) a copy of the proposed tariff for the affected
268-19 service; and
268-20 (4) a copy of the customer notice required by Section
268-21 53.356. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(d).)
268-22 Sec. 53.356. NOTICE TO AFFECTED PERSONS. (a) The
268-23 cooperative shall provide to each affected customer or party,
268-24 including a municipality, at least two notices of the proposed
268-25 action by bill insert or by individual notice.
269-1 (b) The cooperative shall provide:
269-2 (1) the first notice not later than the 61st day
269-3 before the effective date of the proposed action; and
269-4 (2) the last notice not later than the 31st day before
269-5 the effective date of the proposed action.
269-6 (c) A notice prescribed by this section must include:
269-7 (1) a description of the services affected by the
269-8 proposed action;
269-9 (2) the effective date of the proposed action;
269-10 (3) an explanation of the customer's right to:
269-11 (A) obtain a copy of the proposed tariff from
269-12 the cooperative; and
269-13 (B) petition the commission for a review under
269-14 Section 53.358;
269-15 (4) a statement of the amount by which the
269-16 cooperative's total gross annual revenues will increase or decrease
269-17 and a statement explaining the effect on the cooperative revenues
269-18 as a result of the proposed action; and
269-19 (5) a list of rates that are affected by the proposed
269-20 rate action, showing the effect of the proposed action on each of
269-21 those rates. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(e).)
269-22 Sec. 53.357. FILING OF AFFIDAVITS VERIFYING NOTICE. Not
269-23 later than the 15th day before the effective date of a proposed
269-24 action, the cooperative shall file with the commission affidavits
269-25 that verify that the cooperative provided each notice required by
270-1 Section 53.356. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(f).)
270-2 Sec. 53.358. COMMISSION REVIEW OF PROPOSED ACTION. (a) The
270-3 commission shall review a proposed action filed under this
270-4 subchapter if:
270-5 (1) the commission receives, not later than the 45th
270-6 day after the date the first notice is provided under Section
270-7 53.356, complaints relating to the proposed action:
270-8 (A) signed by at least five percent of the
270-9 affected local service customers; or
270-10 (B) from an affected intrastate access customer,
270-11 or group of affected intrastate access customers, that in the
270-12 preceding 12 months accounted for more than 10 percent of the
270-13 cooperative's total intrastate access revenues;
270-14 (2) the cooperative does not comply with the
270-15 procedural requirements of this subchapter; or
270-16 (3) the proposed action is inconsistent with the
270-17 commission's substantive policies as expressed in its rules.
270-18 (b) If the commission conducts a review of the proposed
270-19 action under this section before the action's effective date, the
270-20 commission may suspend the proposed action during the review.
270-21 (V.A.C.S. Art. 1446c-0, Sec. 3.2135(g).)
270-22 Sec. 53.359. REVERSAL OF DEREGULATION BY BALLOT. (a) A
270-23 cooperative that is partially deregulated under this subchapter may
270-24 vote to reverse the deregulation by sending a ballot to each
270-25 cooperative member.
271-1 (b) The cooperative's board of directors may order
271-2 reballoting on its own motion. If the board receives a written
271-3 request for that action from at least 10 percent of its members,
271-4 the board shall reballot not later than the 60th day after the date
271-5 the board receives that request.
271-6 (c) The cooperative may include the ballot in a bill or send
271-7 the ballot separately. The ballot shall be printed to permit
271-8 voting for or against the proposition: "Reversing the partial
271-9 deregulation of the (name of the cooperative)."
271-10 (d) The partial deregulation is reversed if a majority of
271-11 the ballots returned to the cooperative not later than the 45th day
271-12 after the date the ballots are mailed favor reversal. (V.A.C.S.
271-13 Art. 1446c-0, Sec. 3.2135(h).)
271-14 CHAPTER 54. CERTIFICATES
271-15 SUBCHAPTER A. GENERAL PROVISIONS
271-16 Sec. 54.001. CERTIFICATE REQUIRED
271-17 Sec. 54.002. EXCEPTIONS TO CERTIFICATE REQUIREMENT
271-18 FOR SERVICE EXTENSION
271-19 Sec. 54.003. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
271-20 CERTAIN SERVICES
271-21 Sec. 54.004. RELINQUISHMENT PLAN
271-22 Sec. 54.005. NOTICE OF AND HEARING ON APPLICATION
271-23 Sec. 54.006. REQUEST FOR PRELIMINARY ORDER
271-24 Sec. 54.007. FLEXIBILITY PLAN
271-25 Sec. 54.008. REVOCATION OR AMENDMENT OF CERTIFICATE
272-1 (Sections 54.009-54.050 reserved for expansion)
272-2 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
272-3 Sec. 54.051. DEFINITION
272-4 Sec. 54.052. CERTIFICATE REQUIRED FOR PUBLIC UTILITY
272-5 Sec. 54.053. APPLICATION FOR CERTIFICATE
272-6 Sec. 54.054. GRANT OR DENIAL OF CERTIFICATE
272-7 (Sections 54.055-54.100 reserved for expansion)
272-8 SUBCHAPTER C. CERTIFICATE OF OPERATING AUTHORITY
272-9 Sec. 54.101. DEFINITION
272-10 Sec. 54.102. APPLICATION FOR CERTIFICATE
272-11 Sec. 54.103. GRANT OR DENIAL OF CERTIFICATE
272-12 Sec. 54.104. BUILD-OUT PLAN REQUIREMENTS
272-13 Sec. 54.105. SIX-YEAR LIMITATION ON RESALE OF SERVICES
272-14 Sec. 54.106. TIME OF SERVICE REQUIREMENTS
272-15 Sec. 54.107. REQUIREMENTS RELATING TO CERTAIN FACILITIES
272-16 Sec. 54.108. BUILD-OUT PLAN COMPLIANCE
272-17 Sec. 54.109. ELIMINATION OF BUILD-OUT REQUIREMENTS FOR
272-18 CERTAIN PROVIDERS
272-19 Sec. 54.110. HEARING ON BUILD-OUT AND RESALE REQUIREMENTS
272-20 Sec. 54.111. PENALTY FOR VIOLATION OF TITLE
272-21 (Sections 54.112-54.150 reserved for expansion)
272-22 SUBCHAPTER D. SERVICE PROVIDER CERTIFICATE
272-23 OF OPERATING AUTHORITY
272-24 Sec. 54.151. DEFINITION
272-25 Sec. 54.152. LIMITATION ON GRANT OF CERTIFICATE
273-1 Sec. 54.153. ELIGIBILITY FOR CERTIFICATE
273-2 Sec. 54.154. APPLICATION FOR CERTIFICATE
273-3 Sec. 54.155. GRANT OR DENIAL OF CERTIFICATE
273-4 Sec. 54.156. RESALE OF SERVICES
273-5 Sec. 54.157. OPTIONAL EXTENDED AREA SERVICE OR EXPANDED
273-6 LOCAL CALLING SERVICE
273-7 Sec. 54.158. INTERFERENCE WITH RESOLD SERVICES PROHIBITED
273-8 Sec. 54.159. RETENTION OF ACCESS SERVICE AND INTRALATA
273-9 TOLL SERVICE
273-10 (Sections 54.160-54.200 reserved for expansion)
273-11 SUBCHAPTER E. MUNICIPALITIES
273-12 Sec. 54.201. CERTIFICATION PROHIBITED
273-13 Sec. 54.202. PROHIBITED MUNICIPAL SERVICES
273-14 Sec. 54.203. SERVICE IN ANNEXED OR INCORPORATED AREA
273-15 Sec. 54.204. DISCRIMINATION BY MUNICIPALITY PROHIBITED
273-16 Sec. 54.205. MUNICIPALITY'S RIGHT TO CONTROL ACCESS
273-17 Sec. 54.206. RECOVERY OF MUNICIPAL FEE
273-18 (Sections 54.207-54.250 reserved for expansion)
273-19 SUBCHAPTER F. REGULATION OF SERVICES, AREAS, AND FACILITIES
273-20 Sec. 54.251. PROVISION OF SERVICE
273-21 Sec. 54.252. GROUNDS FOR REDUCTION OF SERVICE BY HOLDER
273-22 OF CERTIFICATE OF CONVENIENCE
273-23 AND NECESSITY
273-24 Sec. 54.253. DISCONTINUATION OF SERVICE BY CERTAIN
273-25 CERTIFICATE HOLDERS
274-1 Sec. 54.254. REQUIRED REFUSAL OF SERVICE
274-2 Sec. 54.255. TRANSFER OF CERTAIN CERTIFICATES
274-3 Sec. 54.256. APPLICATION OF CONTRACTS
274-4 Sec. 54.257. INTERFERENCE WITH ANOTHER TELECOMMUNICATIONS
274-5 UTILITY
274-6 Sec. 54.258. MAPS
274-7 Sec. 54.259. DISCRIMINATION BY PROPERTY OWNER
274-8 PROHIBITED
274-9 Sec. 54.260. PROPERTY OWNER'S CONDITIONS
274-10 Sec. 54.261. SHARED TENANT SERVICES CONTRACT
274-11 CHAPTER 54. CERTIFICATES
274-12 SUBCHAPTER A. GENERAL PROVISIONS
274-13 Sec. 54.001. CERTIFICATE REQUIRED. A person may not provide
274-14 local exchange telephone service, basic local telecommunications
274-15 service, or switched access service unless the person obtains a:
274-16 (1) certificate of convenience and necessity;
274-17 (2) certificate of operating authority; or
274-18 (3) service provider certificate of operating
274-19 authority. (V.A.C.S. Art. 1446c-0, Sec. 3.251(c).)
274-20 Sec. 54.002. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
274-21 SERVICE EXTENSION. (a) A telecommunications utility is not
274-22 required to obtain a certificate of convenience and necessity, a
274-23 certificate of operating authority, or a service provider
274-24 certificate of operating authority for an:
274-25 (1) extension into territory that is:
275-1 (A) contiguous to the territory the
275-2 telecommunications utility serves;
275-3 (B) not receiving similar service from another
275-4 telecommunications utility; and
275-5 (C) not in another telecommunications utility's
275-6 certificated area;
275-7 (2) extension in or to territory the
275-8 telecommunications utility serves or is authorized to serve under a
275-9 certificate of public convenience and necessity, a certificate of
275-10 operating authority, or a service provider certificate of operating
275-11 authority; or
275-12 (3) operation, extension, or service in progress on
275-13 September 1, 1975.
275-14 (b) An extension allowed by Subsection (a) is limited to a
275-15 device used:
275-16 (1) to interconnect existing facilities; or
275-17 (2) solely to transmit telecommunications utility
275-18 services from an existing facility to a customer of retail utility
275-19 service. (V.A.C.S. Art. 1446c-0, Secs. 3.252(a) (part), (b).)
275-20 Sec. 54.003. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
275-21 CERTAIN SERVICES. A telecommunications utility is not required to
275-22 obtain a certificate of convenience and necessity, a certificate of
275-23 operating authority, or a service provider certificate of operating
275-24 authority for:
275-25 (1) an interexchange telecommunications service;
276-1 (2) a nonswitched private line service;
276-2 (3) a shared tenant service;
276-3 (4) a specialized communications common carrier
276-4 service;
276-5 (5) a commercial mobile service; or
276-6 (6) an operator service as defined by Section 55.081.
276-7 (V.A.C.S. Art. 1446c-0, Sec. 3.252(a) (part).)
276-8 Sec. 54.004. RELINQUISHMENT PLAN. A holder of a service
276-9 provider certificate of operating authority who applies for a
276-10 certificate of operating authority or a certificate of convenience
276-11 and necessity for the same territory must include with the
276-12 application a plan to relinquish the service provider certificate
276-13 of operating authority. (V.A.C.S. Art. 1446c-0, Sec. 3.2532(e)
276-14 (part).)
276-15 Sec. 54.005. NOTICE OF AND HEARING ON APPLICATION.
276-16 (a) When an application for a certificate of convenience and
276-17 necessity, a certificate of operating authority, or a service
276-18 provider certificate of operating authority is filed, the
276-19 commission shall:
276-20 (1) give notice of the application to interested
276-21 parties; and
276-22 (2) if requested:
276-23 (A) set a time and place for a hearing; and
276-24 (B) give notice of the hearing.
276-25 (b) A person interested in the application may intervene at
277-1 the hearing. (V.A.C.S. Art. 1446c-0, Secs. 3.2531(b) (part),
277-2 3.254(a).)
277-3 Sec. 54.006. REQUEST FOR PRELIMINARY ORDER. (a) A
277-4 telecommunications utility that wants to exercise a right or
277-5 privilege under a franchise or permit that the utility anticipates
277-6 obtaining but has not been granted may apply to the commission for
277-7 a preliminary order under this section.
277-8 (b) The commission may issue a preliminary order declaring
277-9 that the commission, on application and under commission rules,
277-10 will grant the requested certificate of convenience and necessity,
277-11 certificate of operating authority, or service provider certificate
277-12 of operating authority, on terms the commission designates, after
277-13 the telecommunications utility obtains the franchise or permit.
277-14 (c) The commission shall grant the certificate on
277-15 presentation of evidence satisfactory to the commission that the
277-16 telecommunications utility has obtained the franchise or permit.
277-17 (V.A.C.S. Art. 1446c-0, Sec. 3.257.)
277-18 Sec. 54.007. FLEXIBILITY PLAN. (a) After the commission
277-19 grants an application for a certificate of convenience and
277-20 necessity, a certificate of operating authority, or a service
277-21 provider certificate of operating authority or determines that a
277-22 certificate is not needed for the applicant to provide the relevant
277-23 services, the commission shall conduct appropriate proceedings to
277-24 establish a transitional flexibility plan for the incumbent local
277-25 exchange company in the same area or areas as the new certificate
278-1 holder.
278-2 (b) A basic local telecommunications service price of the
278-3 incumbent local exchange company may not be increased before the
278-4 fourth anniversary of the date the certificate is granted to the
278-5 applicant except that the price may be increased:
278-6 (1) as provided by this title;
278-7 (2) when the new certificate holder has completed the
278-8 build-out plan required by Subchapter C, if applicable; or
278-9 (3) when a competitor for basic local
278-10 telecommunications service provides the service in an area in which
278-11 the build-out requirements have been eliminated. (V.A.C.S.
278-12 Art. 1446c-0, Sec. 3.2571.)
278-13 Sec. 54.008. REVOCATION OR AMENDMENT OF CERTIFICATE.
278-14 (a) The commission may revoke or amend a certificate of
278-15 convenience and necessity, a certificate of operating authority or
278-16 a service provider certificate of operating authority after notice
278-17 and hearing if the commission finds that the certificate holder has
278-18 never provided or is no longer providing service in all or any part
278-19 of the certificated area.
278-20 (b) The commission may require one or more public utilities
278-21 to provide service in an area affected by the revocation or
278-22 amendment of a certificate held by a public utility. (V.A.C.S.
278-23 Art. 1446c-0, Sec. 3.263.)
278-24 (Sections 54.009-54.050 reserved for expansion)
279-1 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
279-2 Sec. 54.051. DEFINITION. In this subchapter, "certificate"
279-3 means a certificate of convenience and necessity. (New.)
279-4 Sec. 54.052. CERTIFICATE REQUIRED FOR PUBLIC UTILITY.
279-5 (a) A public utility may not directly or indirectly provide
279-6 service to the public under a franchise or permit unless the
279-7 utility first obtains from the commission a certificate that states
279-8 that the public convenience and necessity requires or will require
279-9 the installation, operation, or extension of the service.
279-10 (b) Except as otherwise provided by this chapter, a public
279-11 utility may not furnish or make available retail public utility
279-12 service to an area in which retail utility service is being
279-13 lawfully furnished by another public utility unless the utility
279-14 first obtains a certificate that includes the area in which the
279-15 consuming facility is located. (V.A.C.S. Art. 1446c-0, Secs.
279-16 3.251(a), (b).)
279-17 Sec. 54.053. APPLICATION FOR CERTIFICATE. (a) A public
279-18 utility that wants to obtain or amend a certificate must submit an
279-19 application to the commission.
279-20 (b) The applicant shall file with the commission evidence
279-21 the commission requires to show the applicant has received the
279-22 consent, franchise, or permit required by the proper municipal or
279-23 other public authority. (V.A.C.S. Art. 1446c-0, Secs. 3.253(a),
279-24 (c).)
279-25 Sec. 54.054. GRANT OR DENIAL OF CERTIFICATE. (a) The
280-1 commission may approve an application and grant a certificate only
280-2 if the commission finds that the certificate is necessary for the
280-3 service, accommodation, convenience, or safety of the public.
280-4 (b) The commission may:
280-5 (1) grant the certificate as requested;
280-6 (2) grant the certificate for the construction of a
280-7 portion of the requested system, facility, or extension or the
280-8 partial exercise of the requested right or privilege; or
280-9 (3) refuse to grant the certificate.
280-10 (c) The commission shall grant each certificate on a
280-11 nondiscriminatory basis after considering:
280-12 (1) the adequacy of existing service;
280-13 (2) the need for additional service;
280-14 (3) the effect of granting the certificate on the
280-15 recipient of the certificate and any public utility of the same
280-16 kind serving the proximate area; and
280-17 (4) other factors, such as:
280-18 (A) community values;
280-19 (B) recreational and park areas;
280-20 (C) historical and aesthetic values;
280-21 (D) environmental integrity; and
280-22 (E) the probable improvement of service or
280-23 lowering of cost to consumers in the area if the certificate is
280-24 granted. (V.A.C.S. Art. 1446c-0, Secs. 3.254(b), (c).)
280-25 (Sections 54.055-54.100 reserved for expansion)
281-1 SUBCHAPTER C. CERTIFICATE OF OPERATING AUTHORITY
281-2 Sec. 54.101. DEFINITION. In this subchapter, "certificate"
281-3 means a certificate of operating authority. (New.)
281-4 Sec. 54.102. APPLICATION FOR CERTIFICATE. (a) In lieu of
281-5 applying for a certificate of convenience and necessity, a person
281-6 may apply for a certificate of operating authority.
281-7 (b) An applicant for a facilities-based certificate of
281-8 operating authority must include with the application a proposed
281-9 build-out plan in compliance with this subchapter that demonstrates
281-10 how the applicant will, over a six-year period, deploy facilities
281-11 throughout the geographic area of the certificated service area.
281-12 (c) The applicant must file with the application a sworn
281-13 statement that the applicant has applied for each municipal
281-14 consent, franchise, or permit required for the type of services and
281-15 facilities for which the applicant has applied. (V.A.C.S.
281-16 Art. 1446c-0, Secs. 3.2531(a), (c) (part), 3.2555(a) (part).)
281-17 Sec. 54.103. GRANT OR DENIAL OF CERTIFICATE. (a) The
281-18 commission must grant or deny a certificate not later than the 60th
281-19 day after the date the application for the certificate is filed.
281-20 The commission may extend the deadline on good cause shown.
281-21 (b) The commission shall grant each certificate on a
281-22 nondiscriminatory basis after considering factors such as:
281-23 (1) the adequacy of the applicant's build-out plan;
281-24 (2) the technical and financial qualifications of the
281-25 applicant; and
282-1 (3) the applicant's ability to meet the commission's
282-2 quality of service requirements.
282-3 (c) In an exchange of an incumbent local exchange company
282-4 that serves fewer than 31,000 access lines, in addition to the
282-5 factors described by Subsection (b), the commission shall consider:
282-6 (1) the effect of granting the certificate on a public
282-7 utility serving the area and on that utility's customers;
282-8 (2) the ability of that public utility to provide
282-9 adequate service at reasonable rates;
282-10 (3) the effect of granting the certificate on the
282-11 ability of that public utility to act as the provider of last
282-12 resort; and
282-13 (4) the ability of the exchange, not the company, to
282-14 support more than one provider of service.
282-15 (d) Except as provided by Subsections (e) and (f), the
282-16 commission may grant an application for a certificate only for an
282-17 area or areas that are contiguous and reasonably compact and cover
282-18 an area of at least 27 square miles.
282-19 (e) In an exchange in a county that has a population of less
282-20 than 500,000 and that is served by an incumbent local exchange
282-21 company that has more than 31,000 access lines, an area covering
282-22 less than 27 square miles may be approved if the area is contiguous
282-23 and reasonably compact and has at least 20,000 access lines.
282-24 (f) In an exchange of a company that serves fewer than
282-25 31,000 access lines in this state, the commission may grant an
283-1 application only for an area that has boundaries similar to the
283-2 boundaries of the serving central office that is served by the
283-3 incumbent local exchange company that holds the certificate of
283-4 convenience and necessity for the area.
283-5 (g) The commission may not grant a certificate in an
283-6 exchange of an incumbent local exchange company that serves fewer
283-7 than 31,000 access lines. The commission shall require an
283-8 applicant to meet the other appropriate certification provisions of
283-9 this chapter. This subsection expires September 1, 1998.
283-10 (V.A.C.S. Art. 1446c-0, Secs. 3.2531(e), (f) (part), (g), (h).)
283-11 Sec. 54.104. BUILD-OUT PLAN REQUIREMENTS. (a) The
283-12 build-out plan required by Section 54.102 must provide that, by the
283-13 end of the:
283-14 (1) first year, 10 percent of the area to be served
283-15 must be served with facilities that are not facilities of the
283-16 incumbent local exchange company;
283-17 (2) third year, 50 percent of the area to be served
283-18 must be served with facilities that are not facilities of the
283-19 incumbent local exchange company; and
283-20 (3) sixth year, 100 percent of the area to be served
283-21 must be served with facilities that are not facilities of the
283-22 incumbent local exchange company.
283-23 (b) The build-out plan may permit the certificate holder to
283-24 serve not more than 40 percent of the certificate holder's service
283-25 area by reselling the incumbent local exchange company's
284-1 facilities. The resale must be in accordance with:
284-2 (1) Section 54.105; and
284-3 (2) the resale tariff approved by the commission under
284-4 Subchapter C, Chapter 60.
284-5 (c) The resale limitation applies to an incumbent local
284-6 exchange facility that a certificate holder resells in providing
284-7 local exchange telephone service, regardless of whether:
284-8 (1) the certificate holder purchases the facility
284-9 directly from the incumbent local exchange company; or
284-10 (2) an intermediary carrier purchases the facility
284-11 from the incumbent local exchange company and then provides the
284-12 facility to the certificate holder for resale.
284-13 (d) To meet the build-out requirement prescribed by this
284-14 subchapter, a certificate holder:
284-15 (1) may not use commercial mobile service; and
284-16 (2) may use personal communication services (PCS) or
284-17 other wireless technology licensed or allocated by the Federal
284-18 Communications Commission after January 1, 1995. (V.A.C.S.
284-19 Art. 1446c-0, Secs. 3.2531(c) (part), (d) (part).)
284-20 Sec. 54.105. SIX-YEAR LIMITATION ON RESALE OF SERVICES.
284-21 Before the sixth anniversary of the date a certificate is granted,
284-22 the certificate holder may extend service by resale only:
284-23 (1) in the area it is obligated to serve under the
284-24 approved build-out plan; and
284-25 (2) to the distant premises of one of its
285-1 multi-premises customers beyond the approved build-out area but in
285-2 its certificated service area. (V.A.C.S. Art. 1446c-0, Sec.
285-3 3.2531(d) (part).)
285-4 Sec. 54.106. TIME OF SERVICE REQUIREMENTS. (a) The
285-5 commission by rule may prescribe the period within which a
285-6 certificate holder must be able to serve customers.
285-7 (b) Notwithstanding Subsection (a), a certificate holder
285-8 must serve a customer in the build-out area not later than the 30th
285-9 day after the date the customer requests service. (V.A.C.S.
285-10 Art. 1446c-0, Sec. 3.2531(c) (part).)
285-11 Sec. 54.107. REQUIREMENTS RELATING TO CERTAIN FACILITIES.
285-12 As part of the build-out requirements, the commission may not
285-13 require a certificate holder to:
285-14 (1) place a drop facility on each customer's premises;
285-15 or
285-16 (2) activate a fiber optic facility in advance of a
285-17 customer request. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(c) (part).)
285-18 Sec. 54.108. BUILD-OUT PLAN COMPLIANCE. (a) A certificate
285-19 holder shall file periodic reports with the commission
285-20 demonstrating compliance with:
285-21 (1) the plan approved by the commission; and
285-22 (2) the resale limitation prescribed by Section
285-23 54.104(b).
285-24 (b) The commission may administratively and temporarily
285-25 waive compliance with the six-year build-out plan on a showing of
286-1 good cause. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(f) (part).)
286-2 Sec. 54.109. ELIMINATION OF BUILD-OUT REQUIREMENTS FOR
286-3 CERTAIN PROVIDERS. (a) The commission may waive the build-out
286-4 requirements of this subchapter for an additional applicant in a
286-5 particular area:
286-6 (1) on or after the sixth anniversary of the date a
286-7 certificate is granted for that area; or
286-8 (2) on or after the date a certificate holder
286-9 completes the holder's build-out plan in that area.
286-10 (b) The build-out requirements of this subchapter do not
286-11 apply to a service area:
286-12 (1) that is served by an incumbent local exchange
286-13 company that:
286-14 (A) has more than one million access lines; and
286-15 (B) on September 1, 1995, was subject to a
286-16 prohibition under federal law on the provision of interLATA
286-17 service; and
286-18 (2) for which all prohibitions on the incumbent local
286-19 exchange company's provision of interLATA services are removed so
286-20 the company can offer interLATA service together with local and
286-21 intraLATA toll service. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(i).)
286-22 Sec. 54.110. HEARING ON BUILD-OUT AND RESALE REQUIREMENTS.
286-23 (a) The commission on application may conduct a hearing to
286-24 determine:
286-25 (1) whether the build-out requirements of Sections
287-1 54.102(b), 54.103(e) and (f), 54.104, 54.105, 54.106, and 54.107
287-2 have created a barrier to the entry of facilities-based local
287-3 exchange telephone service competition in an exchange in a county
287-4 that has a population of more than 500,000 and that is served by a
287-5 company that has more than 31,000 access lines; and
287-6 (2) the effect of the resale provisions on the
287-7 development of competition, other than the development of
287-8 competition in the certificated areas of companies that serve fewer
287-9 than 31,000 access lines as provided by Section 54.156(a).
287-10 (b) In making a determination under Subsection (a), the
287-11 commission shall consider:
287-12 (1) this title's policy to encourage construction of
287-13 local exchange networks;
287-14 (2) the number and type of competitors that have
287-15 sought to provide local exchange competition under the existing
287-16 rules prescribed by this title; and
287-17 (3) whether adopting new build-out and resale rules
287-18 would make innovative and competitive local exchange telephone
287-19 services more likely to be provided.
287-20 (c) The commission may change a requirement described by
287-21 Subsection (a)(1) or prescribed by Subchapter D if:
287-22 (1) the commission determines that the build-out
287-23 requirements have created a barrier to facilities-based local
287-24 exchange competition in an exchange described by Subsection (a)(1);
287-25 and
288-1 (2) the changes will encourage additional
288-2 facilities-based competition.
288-3 (d) Notwithstanding Subsection (c), the commission may not
288-4 reduce an exchange size to below 12 square miles or increase the
288-5 resale percentage prescribed by Section 54.104(b) to more than 50
288-6 percent.
288-7 (e) A rule adopted under Subsection (c) may apply only to a
288-8 person who files an application for a certificate after the date
288-9 the rule is adopted. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(j).)
288-10 Sec. 54.111. PENALTY FOR VIOLATION OF TITLE. If a
288-11 certificate holder fails to comply with a requirement of this
288-12 title, the commission may:
288-13 (1) revoke the holder's certificate;
288-14 (2) impose against the holder administrative penalties
288-15 under Subchapter B, Chapter 15; or
288-16 (3) take another action under Subchapter B, Chapter
288-17 15. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(k).)
288-18 (Sections 54.112-54.150 reserved for expansion)
288-19 SUBCHAPTER D. SERVICE PROVIDER CERTIFICATE
288-20 OF OPERATING AUTHORITY
288-21 Sec. 54.151. DEFINITION. In this subchapter, "certificate"
288-22 means a service provider certificate of operating authority.
288-23 (New.)
288-24 Sec. 54.152. LIMITATION ON GRANT OF CERTIFICATE. The
288-25 commission may not grant a certificate to a holder of a:
289-1 (1) certificate of convenience and necessity for the
289-2 same territory; or
289-3 (2) certificate of operating authority for the same
289-4 territory. (V.A.C.S. Art. 1446c-0, Sec. 3.2532(e) (part).)
289-5 Sec. 54.153. ELIGIBILITY FOR CERTIFICATE. (a) A company is
289-6 not eligible to obtain a certificate under this subchapter if the
289-7 company, together with affiliates, had more than six percent of the
289-8 total intrastate switched access minutes of use as measured for the
289-9 most recent 12-month period:
289-10 (1) that precedes the date the application is filed;
289-11 and
289-12 (2) for which the access information is available.
289-13 (b) The commission shall obtain information necessary to
289-14 determine eligibility from the incumbent local exchange telephone
289-15 companies and the applicant.
289-16 (c) The commission shall certify eligibility not later than
289-17 the 10th day after the date the application is filed.
289-18 (d) In this section:
289-19 (1) "Affiliate" means an entity that, directly or
289-20 indirectly, owns or controls, is owned or controlled by, or is
289-21 under common ownership or control with a company that applies for a
289-22 certificate under this subchapter.
289-23 (2) "Control" means to exercise substantial influence
289-24 over the policies and actions of another. (V.A.C.S. Art. 1446c-0,
289-25 Secs. 3.2532(b) (part), (h).)
290-1 Sec. 54.154. APPLICATION FOR CERTIFICATE. (a) The
290-2 commission may grant a certificate to encourage an innovative,
290-3 competitive, and entrepreneurial business to provide
290-4 telecommunications services.
290-5 (b) An applicant for a certificate must:
290-6 (1) file with the application:
290-7 (A) a sworn statement that the applicant has
290-8 applied for each municipal consent, franchise, or permit required
290-9 for the type of services and facilities for which the applicant has
290-10 applied; and
290-11 (B) a description of the services the applicant
290-12 will provide;
290-13 (2) show the areas in which the applicant will provide
290-14 the services;
290-15 (3) demonstrate that the applicant has the financial
290-16 and technical ability to provide services; and
290-17 (4) demonstrate that the services will meet the
290-18 requirements of this subchapter. (V.A.C.S. Art. 1446c-0, Secs.
290-19 3.2532(a), (c); 3.2555(a) (part).)
290-20 Sec. 54.155. GRANT OR DENIAL OF CERTIFICATE. (a) The
290-21 commission must grant or deny a certificate not later than the 60th
290-22 day after the date the application for the certificate is filed.
290-23 The commission may extend the deadline on good cause shown.
290-24 (b) The commission shall grant each certificate on a
290-25 nondiscriminatory basis after considering factors such as:
291-1 (1) the technical and financial qualifications of the
291-2 applicant; and
291-3 (2) the applicant's ability to meet the commission's
291-4 quality of service requirements. (V.A.C.S. Art. 1446c-0, Sec.
291-5 3.2532(b) (part).)
291-6 Sec. 54.156. RESALE OF SERVICES. (a) A certificate holder
291-7 may obtain services under the resale tariffs approved by the
291-8 commission under Subchapter C, Chapter 60, except in a certificated
291-9 area of a company that serves fewer than 31,000 access lines.
291-10 (b) A certificate holder may obtain for resale the monthly
291-11 recurring flat rate local exchange telephone service and associated
291-12 nonrecurring charges, including any mandatory extended area
291-13 service, of an incumbent local exchange company at a five percent
291-14 discount to the tariffed rate.
291-15 (c) The incumbent local exchange company shall sell a
291-16 feature service that may be provided to a customer in conjunction
291-17 with local exchange service at a five percent discount to the
291-18 tariffed rate, including any associated nonrecurring charge for
291-19 those services, provided that the incumbent local exchange company
291-20 shall make available to a certificate holder, at an additional five
291-21 percent discount, any discounts made available to customers of the
291-22 incumbent local exchange company who are similarly situated to the
291-23 customers of the certificate holder. In this subsection "feature
291-24 service" includes:
291-25 (1) toll restriction;
292-1 (2) call control options;
292-2 (3) tone dialing;
292-3 (4) custom calling; and
292-4 (5) caller identification.
292-5 (d) A certificate holder and an incumbent local exchange
292-6 company may agree to a rate lower than the tariffed rate or
292-7 discounted rate.
292-8 (e) The five percent discounts provided by this section do
292-9 not apply in an exchange of a company that has fewer than 31,000
292-10 access lines in this state.
292-11 (f) If the tariffed rate for a resold service changes, the
292-12 five percent discount prescribed by this section applies to the
292-13 changed rate. The commission may not, for certificate holders,
292-14 create a special class for purposes of resold services.
292-15 (g) A certificate holder:
292-16 (1) may not use a resold flat rate local exchange
292-17 telephone service to avoid the rates and terms of an incumbent
292-18 local exchange company's tariffs;
292-19 (2) may not terminate both flat rate local exchange
292-20 telephone service and services obtained under the resale tariff
292-21 approved under Section 60.041 on the same end user customer's
292-22 premises;
292-23 (3) may not use resold flat rate local exchange
292-24 telephone services to provide access services to another
292-25 interexchange carrier, cellular carrier, competitive access
293-1 provider, or retail telecommunications provider, but may permit
293-2 customers to use resold local exchange telephone services to access
293-3 such a carrier or provider;
293-4 (4) may sell the flat rate local exchange telephone
293-5 service only to the same class of customers to which the incumbent
293-6 local exchange company sells that service;
293-7 (5) may obtain services offered by or negotiated with
293-8 a holder of a certificate of convenience and necessity or a
293-9 certificate of operating authority; and
293-10 (6) may obtain for resale single or multiple line flat
293-11 rate intraLATA calling service when provided by the local exchange
293-12 company at the tariffed rate for online digital communications.
293-13 (V.A.C.S. Art. 1446c-0, Sec. 3.2532(d) (part).)
293-14 Sec. 54.157. OPTIONAL EXTENDED AREA SERVICE OR EXPANDED
293-15 LOCAL CALLING SERVICE. (a) A certificate holder may purchase for
293-16 resale:
293-17 (1) optional extended area service; and
293-18 (2) expanded local calling service.
293-19 (b) The purchase of optional extended area service and
293-20 expanded local calling service may not be discounted. (V.A.C.S.
293-21 Art. 1446c-0, Sec. 3.2532(d) (part).)
293-22 Sec. 54.158. INTERFERENCE WITH RESOLD SERVICES PROHIBITED.
293-23 An incumbent local exchange company may not:
293-24 (1) delay providing or maintaining a service provided
293-25 under this subchapter;
294-1 (2) degrade the quality of access the company provides
294-2 to another provider;
294-3 (3) impair the speed, quality, or efficiency of a line
294-4 used by another provider;
294-5 (4) fail to fully disclose in a timely manner after a
294-6 request all available information necessary for a certificate
294-7 holder to provide resale services; or
294-8 (5) refuse to take a reasonable action to allow a
294-9 certificate holder efficient access to the company's ordering,
294-10 billing, or repair management system. (V.A.C.S. Art. 1446c-0, Sec.
294-11 3.2532(g).)
294-12 Sec. 54.159. RETENTION OF ACCESS SERVICE AND INTRALATA TOLL
294-13 SERVICE. An incumbent local exchange company that sells flat rate
294-14 local exchange telephone service to a certificate holder may retain
294-15 all access service and "1-plus" intraLATA toll service that
294-16 originates over the resold flat rate local exchange telephone
294-17 service. (V.A.C.S. Art. 1446c-0, Sec. 3.2532(f).)
294-18 (Sections 54.160-54.200 reserved for expansion)
294-19 SUBCHAPTER E. MUNICIPALITIES
294-20 Sec. 54.201. CERTIFICATION PROHIBITED. The commission may
294-21 not grant to a municipality a:
294-22 (1) certificate of convenience and necessity;
294-23 (2) certificate of operating authority; or
294-24 (3) service provider certificate of operating
294-25 authority. (V.A.C.S. Art. 1446c-0, Sec. 3.251(d) (part).)
295-1 Sec. 54.202. PROHIBITED MUNICIPAL SERVICES. (a) A
295-2 municipality or municipal electric system may not offer for sale to
295-3 the public:
295-4 (1) a service for which a certificate of convenience
295-5 and necessity, a certificate of operating authority, or a service
295-6 provider certificate of operating authority is required; or
295-7 (2) a nonswitched telecommunications service used to
295-8 connect a customer's premises with:
295-9 (A) another customer's premises within the
295-10 exchange; or
295-11 (B) a long distance provider that serves the
295-12 exchange.
295-13 (b) Subsection (a) applies to a service offered either
295-14 directly or indirectly through a telecommunications provider.
295-15 (V.A.C.S. Art. 1446c-0, Sec. 3.251(d) (part).)
295-16 Sec. 54.203. SERVICE IN ANNEXED OR INCORPORATED AREA.
295-17 (a) If an area is or will be included within a municipality as the
295-18 result of annexation, incorporation, or another reason, each
295-19 telecommunications utility that holds or is entitled to hold a
295-20 certificate under this title to provide service or operate a
295-21 facility in the area before the inclusion has the right to continue
295-22 to provide the service or operate the facility and extend service
295-23 in the utility's certificated area within the annexed or
295-24 incorporated area under the rights granted by the certificate and
295-25 this title.
296-1 (b) Notwithstanding any other law, a certificated
296-2 telecommunications utility has the right to:
296-3 (1) continue and extend service within the utility's
296-4 certificated area; and
296-5 (2) use roads, streets, highways, alleys, and public
296-6 property to furnish retail utility service.
296-7 (c) The governing body of a municipality may require a
296-8 certificated telecommunications utility to relocate the utility's
296-9 facility at the utility's expense to permit the widening or
296-10 straightening of a street by:
296-11 (1) giving the utility 30 days' notice; and
296-12 (2) specifying the new location for the facility along
296-13 the right-of-way of the street.
296-14 (d) This section does not limit the power of a city, town,
296-15 or village to incorporate or of a municipality to extend its
296-16 boundaries by annexation. (V.A.C.S. Art. 1446c-0, Sec. 3.255.)
296-17 Sec. 54.204. DISCRIMINATION BY MUNICIPALITY PROHIBITED.
296-18 (a) Notwithstanding Section 14.008, a municipality may not
296-19 discriminate against a telecommunications utility regarding:
296-20 (1) the authorization or placement of a
296-21 telecommunications facility in a public right-of-way;
296-22 (2) access to a building; or
296-23 (3) a municipal utility pole attachment rate or term,
296-24 to the extent not addressed by federal law.
296-25 (b) In granting consent, a franchise, or a permit for the
297-1 use of a public street, alley, or right-of-way within its municipal
297-2 boundaries, a municipality may not discriminate in favor of or
297-3 against a telecommunications utility that holds or has applied for
297-4 a certificate of convenience and necessity, a certificate of
297-5 operating authority, or a service provider certificate of operating
297-6 authority regarding:
297-7 (1) municipal utility pole attachment or underground
297-8 conduit rates or terms, to the extent not addressed by federal law;
297-9 or
297-10 (2) the authorization, placement, replacement, or
297-11 removal of a telecommunications facility in a public right-of-way
297-12 and the reasonable compensation for the authorization, placement,
297-13 replacement, or removal regardless of whether the compensation is
297-14 in the form of:
297-15 (A) money;
297-16 (B) services;
297-17 (C) use of facilities; or
297-18 (D) another kind of consideration.
297-19 (c) Notwithstanding Subsection (b)(1), a municipal utility
297-20 may not charge a pole attachment rate or underground conduit rate
297-21 that exceeds the fee the utility would be permitted to charge if
297-22 the utility's rates were regulated under federal law and the rules
297-23 of the Federal Communications Commission.
297-24 (d) Notwithstanding any other law, the commission has the
297-25 jurisdiction necessary to enforce this section. (V.A.C.S.
298-1 Art. 1446c-0, Secs. 3.2555(a) (part), (b), (e).)
298-2 Sec. 54.205. MUNICIPALITY'S RIGHT TO CONTROL ACCESS. This
298-3 title does not restrict a municipality's historical right to
298-4 control and receive reasonable compensation for access to the
298-5 municipality's public streets, alleys, or rights-of-way or to other
298-6 public property. (V.A.C.S. Art. 1446c-0, Sec. 3.2555(f).)
298-7 Sec. 54.206. RECOVERY OF MUNICIPAL FEE. (a) A holder of a
298-8 certificate of convenience and necessity, a certificate of
298-9 operating authority, or a service provider certificate of operating
298-10 authority has the right to collect a fee that a municipality
298-11 imposes under Section 54.204 or 54.205 through a pro rata charge to
298-12 the customers in the boundaries of the municipality.
298-13 (b) The charge may be shown on the customer's bill as a
298-14 separate line item. (V.A.C.S. Art. 1446c-0, Sec. 3.2555(h).)
298-15 (Sections 54.207-54.250 reserved for expansion)
298-16 SUBCHAPTER F. REGULATION OF SERVICES, AREAS, AND FACILITIES
298-17 Sec. 54.251. PROVISION OF SERVICE. (a) Except as provided
298-18 by this section, Section 54.252, Section 54.253, and Section
298-19 54.254, a telecommunications utility that holds a certificate of
298-20 convenience and necessity or a certificate of operating authority
298-21 shall:
298-22 (1) offer all basic local telecommunications services
298-23 to each customer in the utility's certificated area; and
298-24 (2) provide continuous and adequate service in that
298-25 area.
299-1 (b) The holder of a certificate of convenience and necessity
299-2 for an area has the obligations of a provider of last resort
299-3 regardless of whether another provider has a certificate of
299-4 operating authority for that area. (V.A.C.S. Art. 1446c-0, Sec.
299-5 3.258(a).)
299-6 Sec. 54.252. GROUNDS FOR REDUCTION OF SERVICE BY HOLDER OF
299-7 CERTIFICATE OF CONVENIENCE AND NECESSITY. (a) Unless the
299-8 commission issues a certificate that the present and future
299-9 convenience and necessity will not be adversely affected, the
299-10 holder of a certificate of convenience and necessity may not
299-11 discontinue, reduce, or impair service to any part of the holder's
299-12 certificated service area except for:
299-13 (1) nonpayment of charges;
299-14 (2) nonuse; or
299-15 (3) another similar reason that occurs in the usual
299-16 course of business.
299-17 (b) A discontinuance, reduction, or impairment of service
299-18 must be in compliance with and is subject to any condition or
299-19 restriction the commission prescribes. (V.A.C.S. Art. 1446c-0,
299-20 Secs. 3.258(b), (c).)
299-21 Sec. 54.253. DISCONTINUATION OF SERVICE BY CERTAIN
299-22 CERTIFICATE HOLDERS. (a) A telecommunications utility that holds
299-23 a certificate of operating authority or a service provider
299-24 certificate of operating authority may:
299-25 (1) cease operations in the utility's certificated
300-1 area; or
300-2 (2) discontinue an optional service that is not
300-3 essential to providing basic local telecommunications service.
300-4 (b) Before the telecommunications utility ceases operations
300-5 or discontinues an optional service, the utility, in the manner
300-6 required by the commission, must give notice of the intended action
300-7 to:
300-8 (1) the commission; and
300-9 (2) each affected customer.
300-10 (c) The telecommunications utility is entitled to
300-11 discontinue an optional service on or after the 61st day after the
300-12 date the utility gives the notice.
300-13 (d) The telecommunications utility may not cease operations
300-14 in its certificated area unless:
300-15 (1) another provider of basic local telecommunications
300-16 services has adequate facilities and capacity to serve the
300-17 customers in the certificated area; and
300-18 (2) the commission authorizes the utility to cease
300-19 operations.
300-20 (e) The commission may not authorize the telecommunications
300-21 utility to cease operations under Subsection (d) before the 61st
300-22 day after the date the utility gives the notice required by
300-23 Subsection (b). Unless the commission receives a complaint from an
300-24 affected person, the commission may enter an order under this
300-25 subsection administratively. (V.A.C.S. Art. 1446c-0, Sec. 3.2595.)
301-1 Sec. 54.254. REQUIRED REFUSAL OF SERVICE. A holder of a
301-2 certificate of convenience and necessity, a certificate of
301-3 operating authority, or a service provider certificate of operating
301-4 authority shall refuse to serve a customer in the holder's
301-5 certificated area if the holder is prohibited from providing the
301-6 service under Section 212.012 or 232.029, Local Government Code.
301-7 (V.A.C.S. Art. 1446c-0, Sec. 3.259.)
301-8 Sec. 54.255. TRANSFER OF CERTAIN CERTIFICATES. (a) A
301-9 telecommunications utility may sell, assign, or lease a certificate
301-10 of convenience and necessity or a certificate of operating
301-11 authority or a right obtained under such a certificate if the
301-12 commission determines that the purchaser, assignee, or lessee can
301-13 provide adequate service.
301-14 (b) The sale, assignment, or lease of a certificate or a
301-15 right is subject to conditions the commission prescribes.
301-16 (V.A.C.S. Art. 1446c-0, Sec. 3.260.)
301-17 Sec. 54.256. APPLICATION OF CONTRACTS. A contract approved
301-18 by the commission between telecommunications utilities that
301-19 designates areas and customers to be served by the utilities:
301-20 (1) is valid and enforceable; and
301-21 (2) shall be incorporated into the appropriate areas
301-22 of certification. (V.A.C.S. Art. 1446c-0, Sec. 3.256.)
301-23 Sec. 54.257. INTERFERENCE WITH ANOTHER TELECOMMUNICATIONS
301-24 UTILITY. If a telecommunications utility constructing or extending
301-25 the utility's lines, plant, or system interferes or attempts to
302-1 interfere with the operation of a line, plant, or system of another
302-2 utility, the commission by order may:
302-3 (1) prohibit the construction or extension; or
302-4 (2) prescribe terms for locating the affected lines,
302-5 plants, or systems. (V.A.C.S. Art. 1446c-0, Sec. 3.261.)
302-6 Sec. 54.258. MAPS. A public utility shall file with the
302-7 commission one or more maps that show each utility facility and
302-8 that separately illustrate each utility facility for transmission
302-9 or distribution of the utility's services on a date the commission
302-10 orders. (V.A.C.S. Art. 1446c-0, Sec. 3.253(b).)
302-11 Sec. 54.259. DISCRIMINATION BY PROPERTY OWNER PROHIBITED.
302-12 (a) If a telecommunications utility holds a consent, franchise, or
302-13 permit as determined to be the appropriate grants of authority by
302-14 the municipality and holds a certificate if required by this title,
302-15 a public or private property owner may not:
302-16 (1) prevent the utility from installing on the owner's
302-17 property a telecommunications service facility a tenant requests;
302-18 (2) interfere with the utility's installation on the
302-19 owner's property of a telecommunications service facility a tenant
302-20 requests;
302-21 (3) discriminate against such a utility regarding
302-22 installation, terms, or compensation of a telecommunications
302-23 service facility to a tenant on the owner's property;
302-24 (4) demand or accept an unreasonable payment of any
302-25 kind from a tenant or the utility for allowing the utility on or in
303-1 the owner's property; or
303-2 (5) discriminate in favor of or against a tenant in
303-3 any manner, including rental charge discrimination, because of the
303-4 utility from which the tenant receives a telecommunications
303-5 service.
303-6 (b) Subsection (a) does not apply to an institution of
303-7 higher education. In this subsection, "institution of higher
303-8 education" means:
303-9 (1) an institution of higher education as defined by
303-10 Section 61.003, Education Code; or
303-11 (2) a private or independent institution of higher
303-12 education as defined by Section 61.003, Education Code.
303-13 (c) Notwithstanding any other law, the commission has the
303-14 jurisdiction to enforce this section. (V.A.C.S. Art. 1446c-0,
303-15 Secs. 3.2555(c), (e), (g).)
303-16 Sec. 54.260. PROPERTY OWNER'S CONDITIONS.
303-17 (a) Notwithstanding Section 54.259, if a telecommunications
303-18 utility holds a municipal consent, franchise, or permit as
303-19 determined to be the appropriate grant of authority by the
303-20 municipality and holds a certificate if required by this title, a
303-21 public or private property owner may:
303-22 (1) impose a condition on the utility that is
303-23 reasonably necessary to protect:
303-24 (A) the safety, security, appearance, and
303-25 condition of the property; and
304-1 (B) the safety and convenience of other persons;
304-2 (2) impose a reasonable limitation on the time at
304-3 which the utility may have access to the property to install a
304-4 telecommunications service facility;
304-5 (3) impose a reasonable limitation on the number of
304-6 such utilities that have access to the owner's property, if the
304-7 owner can demonstrate a space constraint that requires the
304-8 limitation;
304-9 (4) require the utility to agree to indemnify the
304-10 owner for damage caused installing, operating, or removing a
304-11 facility;
304-12 (5) require the tenant or the utility to bear the
304-13 entire cost of installing, operating, or removing a facility; and
304-14 (6) require the utility to pay compensation that is
304-15 reasonable and nondiscriminatory among such telecommunications
304-16 utilities.
304-17 (b) Notwithstanding any other law, the commission has the
304-18 jurisdiction to enforce this section. (V.A.C.S. Art. 1446c-0,
304-19 Secs. 3.2555(d), (e).)
304-20 Sec. 54.261. SHARED TENANT SERVICES CONTRACT. Sections
304-21 54.259 and 54.260 do not require a public or private property owner
304-22 to enter into a contract with a telecommunications utility to
304-23 provide shared tenant services on a property. (V.A.C.S.
304-24 Art. 1446c-0, Sec. 3.2555(i).)
305-1 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES
305-2 SUBCHAPTER A. GENERAL PROVISIONS
305-3 Sec. 55.001. GENERAL STANDARD
305-4 Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS
305-5 Sec. 55.003. RULE OR STANDARD
305-6 Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE
305-7 CHANGE
305-8 Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
305-9 SERVICE PROHIBITED
305-10 Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION
305-11 Sec. 55.007. MINIMUM SERVICES
305-12 Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING
305-13 SERVICE
305-14 Sec. 55.009. INTRALATA CALLS
305-15 Sec. 55.010. BILLING FOR SERVICE TO THE STATE
305-16 (Sections 55.011-55.020 reserved for expansion)
305-17 SUBCHAPTER B. EXTENDED AREA SERVICE
305-18 Sec. 55.021. EXTENDED AREA SERVICE
305-19 Sec. 55.022. MANDATORY SERVICE
305-20 Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE
305-21 Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE
305-22 Sec. 55.025. HUNTING SERVICE
305-23 (Sections 55.026-55.040 reserved for expansion)
305-24 SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS
305-25 Sec. 55.041. DEFINITIONS
306-1 Sec. 55.042. CONTIGUOUS EXCHANGE
306-2 Sec. 55.043. SPLITTING EXCHANGES PROHIBITED
306-3 Sec. 55.044. EXEMPTION
306-4 Sec. 55.045. ELIGIBILITY TO PETITION
306-5 Sec. 55.046. PETITION REQUIREMENTS
306-6 Sec. 55.047. BALLOTING AND CONSIDERATION
306-7 Sec. 55.048. CHARGES
306-8 (Sections 55.049-55.080 reserved for expansion)
306-9 SUBCHAPTER D. OPERATOR SERVICE PROVIDERS
306-10 Sec. 55.081. DEFINITION
306-11 Sec. 55.082. APPLICABILITY
306-12 Sec. 55.083. RULES AND PROCEDURES
306-13 Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE
306-14 Sec. 55.085. CONNECTION ANNOUNCEMENT
306-15 Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL
306-16 EXCHANGE COMPANY OPERATOR
306-17 Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER
306-18 UTILITIES REQUIRED
306-19 Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED
306-20 Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON VIOLATION
306-21 (Sections 55.090-55.100 reserved for expansion)
306-22 SUBCHAPTER E. CALLER IDENTIFICATION SERVICE
306-23 Sec. 55.101. DEFINITIONS
306-24 Sec. 55.102. APPLICABILITY
306-25 Sec. 55.103. PROVISION OF SERVICE
307-1 Sec. 55.104. USE OF INFORMATION
307-2 Sec. 55.105. PER-CALL BLOCKING
307-3 Sec. 55.106. PER-LINE BLOCKING
307-4 Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY
307-5 Sec. 55.108. CALLER ID CONSUMER EDUCATION PANEL
307-6 Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS
307-7 Sec. 55.110. REPORT OF BLOCKING FAILURE
307-8 (Sections 55.111-55.120 reserved for expansion)
307-9 SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES
307-10 Sec. 55.121. DEFINITION
307-11 Sec. 55.122. EXEMPTIONS
307-12 Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS
307-13 UTILITY
307-14 Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING
307-15 Sec. 55.125. HOURS WHEN USE PROHIBITED
307-16 Sec. 55.126. DEVICE DISCONNECTION
307-17 Sec. 55.127. CONTENTS OF RECORDED MESSAGE
307-18 Sec. 55.128. DURATION OF RECORDED MESSAGE
307-19 Sec. 55.129. PERMIT REQUIRED
307-20 Sec. 55.130. PERMIT
307-21 Sec. 55.131. PERMIT FEE
307-22 Sec. 55.132. NOTIFICATION OF CHANGE
307-23 Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY
307-24 Sec. 55.134. COMPLAINTS AND ENFORCEMENT
307-25 Sec. 55.135. REVOCATION OF PERMIT
308-1 Sec. 55.136. DISCONNECTION OF SERVICE
308-2 Sec. 55.137. ADMINISTRATIVE PENALTY
308-3 Sec. 55.138. CRIMINAL PENALTY
308-4 (Sections 55.139-55.150 reserved for expansion)
308-5 SUBCHAPTER G. TELEPHONE SOLICITATION
308-6 Sec. 55.151. COMPLIANCE WITH REQUEST NOT TO BE CALLED
308-7 Sec. 55.152. NOTICE TO CONSUMERS
308-8 (Sections 55.153-55.170 reserved for expansion)
308-9 SUBCHAPTER H. PAY TELEPHONES
308-10 Sec. 55.171. DEFINITION
308-11 Sec. 55.172. LIMITATION
308-12 Sec. 55.173. REGISTRATION
308-13 Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS
308-14 Sec. 55.175. CHARGE FOR LOCAL CALLS
308-15 Sec. 55.176. CHARGE FOR 800-TYPE CALLS
308-16 Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR
308-17 OPERATOR-ASSISTED CALLS
308-18 Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS
308-19 Sec. 55.179. INFORMATION REQUIREMENTS
308-20 Sec. 55.180. VIOLATIONS
308-21 (Sections 55.181-55.200 reserved for expansion)
308-22 SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE
308-23 Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE
308-24 Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS
308-25 UTILITY
309-1 Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER
309-2 (Sections 55.204-55.250 reserved for expansion)
309-3 SUBCHAPTER J. TELECOMMUNICATIONS SERVICE BY CERTAIN PROVIDERS
309-4 Sec. 55.251. CHARGE FOR HOTEL OR MOTEL CALL
309-5 Sec. 55.252. 900 SERVICE USED BY PROBATIONERS OR PAROLEES
309-6 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES
309-7 SUBCHAPTER A. GENERAL PROVISIONS
309-8 Sec. 55.001. GENERAL STANDARD. A public utility shall
309-9 furnish service, instrumentalities, and facilities that are safe,
309-10 adequate, efficient, and reasonable. (V.A.C.S. Art. 1446c-0, Sec.
309-11 3.155(a).)
309-12 Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS. The
309-13 commission, on its own motion or on complaint and after reasonable
309-14 notice and hearing, may:
309-15 (1) adopt just and reasonable standards,
309-16 classifications, rules, or practices a public utility must follow
309-17 in furnishing a service;
309-18 (2) adopt adequate and reasonable standards for
309-19 measuring a condition, including quantity and quality, relating to
309-20 the furnishing of a service;
309-21 (3) adopt reasonable rules for examining, testing, and
309-22 measuring a service; and
309-23 (4) adopt or approve reasonable rules, specifications,
309-24 and standards to ensure the accuracy of equipment, including meters
309-25 and instruments, used to measure a service. (V.A.C.S.
310-1 Art. 1446c-0, Sec. 3.155(b).)
310-2 Sec. 55.003. RULE OR STANDARD. (a) A public utility may
310-3 not impose a rule except as provided by this title.
310-4 (b) A public utility may file with the commission a
310-5 standard, classification, rule, or practice the utility follows.
310-6 (c) The standard, classification, rule, or practice
310-7 continues in force until:
310-8 (1) amended by the utility; or
310-9 (2) changed by the commission as provided by this
310-10 subtitle. (V.A.C.S. Art. 1446c-0, Secs. 3.153 (part), 3.155(c).)
310-11 Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE CHANGE.
310-12 (a) To make a change in an incumbent local exchange company's
310-13 tariffed rules or practices that does not affect the company's
310-14 charges or rates, the company must file the proposed change with
310-15 the commission at least 35 days before the effective date of the
310-16 change. The commission may require the incumbent local exchange
310-17 company to provide to ratepayers appropriate notice as determined
310-18 by the commission.
310-19 (b) The commission, on complaint by an affected person or on
310-20 its own motion and after reasonable notice, may hold a hearing to
310-21 determine the propriety of a change proposed under this section.
310-22 Pending the hearing and decision, the commission may suspend the
310-23 change for not longer than 120 days after the date the change would
310-24 otherwise be effective. The commission shall approve, deny, or
310-25 modify the change before the period of suspension expires.
311-1 (c) In a proceeding under this section, the incumbent local
311-2 exchange company has the burden of proving the proposed change:
311-3 (1) is in the public interest; and
311-4 (2) complies with this title. (V.A.C.S. Art. 1446c-0,
311-5 Sec. 3.212.)
311-6 Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
311-7 SERVICE PROHIBITED. In providing a service to persons in a
311-8 classification, a public utility may not:
311-9 (1) grant an unreasonable preference or advantage to a
311-10 person in the classification; or
311-11 (2) subject a person in the classification to an
311-12 unreasonable prejudice or disadvantage. (V.A.C.S. Art. 1446c-0,
311-13 Sec. 3.215 (part).)
311-14 Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION.
311-15 A public utility may not:
311-16 (1) discriminate against a person who sells or leases
311-17 equipment or performs services in competition with the public
311-18 utility; or
311-19 (2) engage in a practice that tends to restrict or
311-20 impair that competition. (V.A.C.S. Art. 1446c-0, Sec. 3.217.)
311-21 Sec. 55.007. MINIMUM SERVICES. (a) The commission shall
311-22 require a holder of a certificate of convenience and necessity or a
311-23 certificate of operating authority to provide at the applicable
311-24 tariff rate, if any, to each customer, regardless of race, national
311-25 origin, income, or residence in an urban or rural area:
312-1 (1) single-party service;
312-2 (2) tone-dialing service;
312-3 (3) basic custom calling features;
312-4 (4) equal access for an interLATA interexchange
312-5 carrier on a bona fide request; and
312-6 (5) digital switching capability in an exchange on
312-7 customer request, provided by a digital switch in the exchange or
312-8 by connection to a digital switch in another exchange.
312-9 (b) Notwithstanding Subsection (a), an electing incumbent
312-10 local exchange company serving more than 175,000 but fewer than
312-11 1,500,000 access lines on January 1, 1995, shall install a digital
312-12 switch in each central office that serves an exchange of fewer than
312-13 20,000 access lines.
312-14 (c) The commission may temporarily waive a requirement
312-15 imposed by Subsection (a) or (b) on a showing of good cause.
312-16 (d) The commission may not consider the cost of implementing
312-17 this section in determining whether an electing company is entitled
312-18 to:
312-19 (1) a rate increase under Chapter 58 or 59; or
312-20 (2) increased universal service funds under Subchapter
312-21 B, Chapter 56.
312-22 (e) A holder of a certificate of convenience and necessity
312-23 or a certificate of operating authority shall comply with
312-24 Subsection (a) not later than December 31, 2000. This subsection
312-25 expires September 1, 2003.
313-1 (f) An electing incumbent local exchange company subject to
313-2 Subsection (b) shall comply with that subsection not later than
313-3 December 31, 1998. This subsection expires September 1, 2001.
313-4 (V.A.C.S. Art. 1446c-0, Secs. 3.1555(a), (b), (c).)
313-5 Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING
313-6 SERVICE. The commission, after notice and hearing, may:
313-7 (1) order a public utility to provide specified
313-8 improvements in its service in a specified area if:
313-9 (A) service in the area is inadequate or
313-10 substantially inferior to service in a comparable area; and
313-11 (B) requiring the company to provide the
313-12 improved service is reasonable; or
313-13 (2) order two or more utilities to establish specified
313-14 facilities for interconnecting service. (V.A.C.S. Art. 1446c-0,
313-15 Sec. 3.262(a) (part).)
313-16 Sec. 55.009. INTRALATA CALLS. (a) If federal law prohibits
313-17 a local exchange company in this state from providing interLATA
313-18 telecommunications services, the local exchange companies in this
313-19 state designated or de facto authorized to receive a "0-plus" or
313-20 "1-plus" dialed intraLATA call are exclusively designated or
313-21 authorized to receive such a call.
313-22 (b) A telecommunications utility operating under a
313-23 certificate of operating authority or a service provider
313-24 certificate of operating authority is de facto authorized to
313-25 receive a "0-plus" or "1-plus" dialed intraLATA call on the date
314-1 the utility receives its certificate, to the extent the utility is
314-2 not restricted by Section 54.159.
314-3 (c) If federal law allows all local exchange companies to
314-4 provide interLATA telecommunications services, the commission shall
314-5 ensure that:
314-6 (1) a customer may designate a provider of the
314-7 customer's choice to carry the customer's "0-plus" and "1-plus"
314-8 dialed intraLATA calls; and
314-9 (2) equal access in the public network is implemented
314-10 to allow the provider to carry those calls. (V.A.C.S.
314-11 Art. 1446c-0, Sec. 3.219.)
314-12 Sec. 55.010. BILLING FOR SERVICE TO THE STATE. A
314-13 telecommunications utility providing service to the state,
314-14 including service to an agency in any branch of state government,
314-15 may not impose a fee, a penalty, interest, or any other charge for
314-16 delinquent payment of a bill for that service. (V.A.C.S.
314-17 Art. 1446c-0, Sec. 3.218.)
314-18 (Sections 55.011-55.020 reserved for expansion)
314-19 SUBCHAPTER B. EXTENDED AREA SERVICE
314-20 Sec. 55.021. EXTENDED AREA SERVICE. After notice and a
314-21 hearing, the commission may order one or more local exchange
314-22 companies that are dominant carriers to provide:
314-23 (1) mandatory extended area service in accordance with
314-24 Section 55.022; or
314-25 (2) optional extended area service in accordance with
315-1 Section 55.023. (V.A.C.S. Art. 1446c-0, Sec. 3.262(a) (part).)
315-2 Sec. 55.022. MANDATORY SERVICE. The commission may order
315-3 mandatory extended area service in a specified metropolitan area
315-4 if:
315-5 (1) there is a sufficient community of interest in the
315-6 area; and
315-7 (2) the company can reasonably provide the service.
315-8 (V.A.C.S. Art. 1446c-0, Sec. 3.262(a) (part).)
315-9 Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE. (a) The
315-10 commission may order optional extended area service in a specified
315-11 calling area if:
315-12 (1) each affected company and the representatives of
315-13 at least one political subdivision in the proposed calling area
315-14 agree to the service; and
315-15 (2) the proposed common calling area has a single,
315-16 continuous boundary.
315-17 (b) The commission may not adopt rules that diminish in any
315-18 manner the ability of an affected company or a political
315-19 subdivision to enter into joint agreements for optional extended
315-20 area service under this section.
315-21 (c) In this section, "political subdivision" means:
315-22 (1) a county;
315-23 (2) a municipality; or
315-24 (3) an unincorporated town or village that has 275 or
315-25 more access lines. (V.A.C.S. Art. 1446c-0, Secs. 3.262(a) (part),
316-1 (b).)
316-2 Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE. (a) An
316-3 incumbent local exchange company that provides mandatory two-way
316-4 extended area service to customers shall impose for that service a
316-5 separately stated monthly charge of $3.50 a line for a residential
316-6 customer and $7 a line for a business customer if, on September 1,
316-7 1995, the company:
316-8 (1) served more than 1,000,000 access lines in this
316-9 state; and
316-10 (2) imposed a separately stated monthly charge for
316-11 mandatory two-way extended area service of more than $3.50 a line
316-12 for a residential customer and more than $7 a line for a business
316-13 customer.
316-14 (b) The company shall recover all costs incurred and all
316-15 loss of revenue that results from imposition of the rates
316-16 prescribed by Subsection (a) in the manner prescribed by Section
316-17 55.048(c).
316-18 (c) The rate limitation prescribed by Subsection (a) does
316-19 not apply to a separately stated monthly charge for:
316-20 (1) extended area service in or into a metropolitan
316-21 exchange; or
316-22 (2) extended metropolitan service. (V.A.C.S.
316-23 Art. 1446c-0, Sec. 3.308.)
316-24 Sec. 55.025. HUNTING SERVICE. (a) A local exchange company
316-25 shall make available, at a reasonable tariffed rate, hunting
317-1 service from local exchange lines to extended metropolitan service
317-2 lines.
317-3 (b) The company may not require a customer to purchase
317-4 additional extended metropolitan service to obtain the hunting
317-5 service. (V.A.C.S. Art. 1446c-0, Sec. 3.311.)
317-6 (Sections 55.026-55.040 reserved for expansion)
317-7 SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS
317-8 Sec. 55.041. DEFINITIONS. In this subchapter, "metropolitan
317-9 exchange," "local calling area of a metropolitan exchange," and
317-10 "exchange" have the meanings and boundaries assigned by the
317-11 commission on September 1, 1993. (V.A.C.S. Art. 1446c-0, Sec.
317-12 3.304(b)(2) (part).)
317-13 Sec. 55.042. CONTIGUOUS EXCHANGE. The commission may expand
317-14 a toll-free local calling area into an exchange that is not in a
317-15 metropolitan exchange but is in a local calling area that is
317-16 contiguous to a metropolitan exchange that the commission
317-17 determines has a community of interest with the exchange for which
317-18 a petition is filed under this subchapter. (V.A.C.S. Art. 1446c-0,
317-19 Sec. 3.304(b)(2) (part).)
317-20 Sec. 55.043. SPLITTING EXCHANGES PROHIBITED.
317-21 Notwithstanding any other provision of this subchapter, the
317-22 commission may not split a petitioning or requested exchange in
317-23 establishing a toll-free local calling area. (V.A.C.S.
317-24 Art. 1446c-0, Sec. 3.304(b)(2) (part).)
317-25 Sec. 55.044. EXEMPTION. (a) The commission may not require
318-1 an incumbent local exchange company serving the petitioning or
318-2 requested exchange to expand the company's toll-free local calling
318-3 area under this subchapter if:
318-4 (1) the incumbent local exchange company has fewer
318-5 than 10,000 access lines;
318-6 (2) the petitioning or requested exchange is served by
318-7 a telephone cooperative corporation;
318-8 (3) extended area service or extended metropolitan
318-9 service is available between the exchanges;
318-10 (4) the petitioning or requested exchange is a
318-11 metropolitan exchange; or
318-12 (5) the commission determines that the company has
318-13 shown that to serve the area is not geographically or
318-14 technologically feasible.
318-15 (b) To promote the wide dispersion of pay telephones, the
318-16 commission may:
318-17 (1) exempt pay telephones from this subchapter; or
318-18 (2) change the rates charged for calls from pay
318-19 telephones. (V.A.C.S. Art. 1446c-0, Secs. 3.304(b)(1), (c).)
318-20 Sec. 55.045. ELIGIBILITY TO PETITION. The telephone
318-21 subscribers of an incumbent local exchange company exchange that
318-22 serves not more than 10,000 access lines may petition the
318-23 commission for expansion of the company's toll-free local calling
318-24 area if:
318-25 (1) the petitioning exchange's central switching
319-1 office is located within 22 miles, using vertical and horizontal
319-2 geographic coordinates, of the central switching office of the
319-3 exchange requested for expanded local calling service; or
319-4 (2) the petitioning exchange's central office is not
319-5 more than 50 miles from the central office of the exchange
319-6 requested for expanded local calling service and the exchanges
319-7 share a community of interest. (V.A.C.S. Art. 1446c-0, Sec.
319-8 3.304(a) (part).)
319-9 Sec. 55.046. PETITION REQUIREMENTS. (a) A petition under
319-10 this subchapter must be signed by a number of the exchange's
319-11 subscribers equal at least to the lesser of 100 of the exchange's
319-12 subscribers or five percent of the exchange's subscribers.
319-13 (b) An exchange that petitions under Section 55.045(2) must
319-14 demonstrate in the petition that the exchange shares a community of
319-15 interest with the requested exchange.
319-16 (c) For purposes of this section, the relationships between
319-17 exchanges that create a community of interest include:
319-18 (1) a relationship because of schools, hospitals,
319-19 local governments, or business centers; or
319-20 (2) other relationships that would make the
319-21 unavailability of expanded local calling service a hardship for the
319-22 residents of the area. (V.A.C.S. Art. 1446c-0, Sec. 3.304(a)
319-23 (part).)
319-24 Sec. 55.047. BALLOTING AND CONSIDERATION. (a) If the
319-25 commission receives a petition that complies with this subchapter,
320-1 the commission shall order the incumbent local exchange company to
320-2 provide ballots to the subscribers in the petitioning exchange.
320-3 (b) The commission shall consider the request for expansion
320-4 of the toll-free local calling area if at least 70 percent of the
320-5 subscribers who vote do so in favor of the expansion.
320-6 (c) The commission by rule shall provide for an expedited
320-7 hearing on the issue of expansion. (V.A.C.S. Art. 1446c-0, Sec.
320-8 3.304(a) (part).)
320-9 Sec. 55.048. CHARGES. (a) The incumbent local exchange
320-10 company shall recover all costs incurred and all loss of revenue
320-11 from an expansion of a toll-free local calling area under this
320-12 subchapter through a request other than a revenue requirement
320-13 showing by imposing a monthly fee under Subsection (b) or (c), or
320-14 both.
320-15 (b) The company may impose a monthly fee against each
320-16 residential and business customer in the petitioning exchange. The
320-17 fee may not exceed $3.50 a line for a residential customer and $7 a
320-18 line for a business customer unless the customer's toll-free local
320-19 calling area includes more than five exchanges. The company may
320-20 impose an additional monthly fee of $1.50 for each exchange in
320-21 excess of five. This subsection applies regardless of the number
320-22 of petitions required to obtain access to the exchanges. A company
320-23 may impose a fee under this subsection only until the company's
320-24 next general rate case.
320-25 (c) The company may impose a monthly fee against each of the
321-1 company's local exchange service customers in this state. This fee
321-2 is in addition to the company's local exchange rates.
321-3 (d) The company may not recover regulatory case expenses
321-4 under this subchapter by imposing a surcharge on the subscribers of
321-5 the petitioning exchange. (V.A.C.S. Art. 1446c-0, Sec. 3.304(a)
321-6 (part).)
321-7 (Sections 55.049-55.080 reserved for expansion)
321-8 SUBCHAPTER D. OPERATOR SERVICE PROVIDERS
321-9 Sec. 55.081. DEFINITION. In this subchapter, "operator
321-10 service" means a service using live operator or automated operator
321-11 functions to handle telephone service such as toll calling using
321-12 collect, third-number billing, and calling card services. The term
321-13 does not include a call for which the called party has arranged to
321-14 be billed (800 service). (V.A.C.S. Art. 1446c-0, Sec. 3.052(a).)
321-15 Sec. 55.082. APPLICABILITY. Except as provided by Section
321-16 55.088, this subchapter applies only to a telecommunications
321-17 utility that is not a dominant carrier. (V.A.C.S. Art. 1446c-0,
321-18 Sec. 3.052(h) (part).)
321-19 Sec. 55.083. RULES AND PROCEDURES. (a) The commission may
321-20 adopt rules and establish procedures to enforce and implement this
321-21 subchapter.
321-22 (b) A rule adopted under this subchapter must be
321-23 nondiscriminatory and designed to promote competition that
321-24 facilitates consumer choice. (V.A.C.S. Art. 1446c-0, Secs.
321-25 3.052(f) (part), (h) (part).)
322-1 Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE.
322-2 (a) An operator service provider shall furnish each entity with
322-3 which it contracts to provide operator service a sticker, card, or
322-4 other form of information approved by the commission for each
322-5 telephone that:
322-6 (1) has access to the service; and
322-7 (2) is intended for use by the public.
322-8 (b) The commission may grant the owner of a telephone
322-9 approval for an alternative form of information.
322-10 (c) The information must state:
322-11 (1) the provider's name;
322-12 (2) that the operator service provider will provide
322-13 rate information on a caller's request;
322-14 (3) that a caller, on the caller's request, will be
322-15 informed of the method of access to the local exchange carrier
322-16 operator; and
322-17 (4) that a complaint about the service may be made to
322-18 the provider or to the commission at the designated telephone
322-19 number.
322-20 (d) The operator service provider shall by contract require
322-21 an entity receiving information to display the information on or
322-22 near each telephone for which the operator service provider is
322-23 required to furnish the information. (V.A.C.S. Art. 1446c-0, Sec.
322-24 3.052(c).)
322-25 Sec. 55.085. CONNECTION ANNOUNCEMENT. Before connecting a
323-1 call, the operator service provider shall:
323-2 (1) announce the provider's name; and
323-3 (2) at the caller's request, quote the rate and any
323-4 other fee or surcharge that applies to the call and is charged by
323-5 the provider. (V.A.C.S. Art. 1446c-0, Sec. 3.052(b).)
323-6 Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL
323-7 EXCHANGE COMPANY OPERATOR. (a) An operator service provider, on a
323-8 caller's request, shall inform the caller of the method of access
323-9 to the local exchange carrier operator serving the exchange from
323-10 which the call is made.
323-11 (b) A charge may not be made for information provided under
323-12 this section. (V.A.C.S. Art. 1446c-0, Sec. 3.052(d).)
323-13 Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER
323-14 UTILITIES REQUIRED. (a) The commission by rule shall require an
323-15 operator service provider to include in its contract with each
323-16 entity through which it provides operator service a provision that
323-17 requires each telephone subscribed to its service to allow access
323-18 to:
323-19 (1) the local exchange carrier operator serving the
323-20 exchange from which the call is made; and
323-21 (2) other telecommunications utilities.
323-22 (b) To prevent fraudulent use of its service, an operator
323-23 service provider or an entity through which it provides operator
323-24 service may block the access described by Subsection (a) by
323-25 obtaining a waiver for this purpose from the commission or the
324-1 Federal Communications Commission. The commission by rule shall
324-2 establish the procedure and criteria for obtaining a waiver from
324-3 the commission. (V.A.C.S. Art. 1446c-0, Sec. 3.052(e).)
324-4 Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED. (a) A
324-5 dominant or nondominant telecommunications utility that provides
324-6 operator service shall ensure that a caller has access to a live
324-7 operator at the beginning of a live or mechanized operator-assisted
324-8 call through a method designed to be easily and clearly
324-9 understandable and accessible to the caller.
324-10 (b) A telecommunications utility described by Subsection (a)
324-11 shall submit to the commission for review the method by which the
324-12 utility will provide access to a live operator.
324-13 (c) This section applies regardless of the method by which
324-14 the telecommunications utility provides operator service.
324-15 (d) This section does not apply to a telephone located in a
324-16 prison or jail facility. (V.A.C.S. Art. 1446c-0, Sec. 3.052(i).)
324-17 Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON
324-18 VIOLATION. (a) If the commission determines that an operator
324-19 service provider has violated or is about to violate this
324-20 subchapter, the commission, after notice and evidentiary hearing,
324-21 may take action to stop, correct, or prevent the violation.
324-22 (b) The commission may investigate a complaint that it
324-23 receives concerning an operator service. (V.A.C.S. Art. 1446c-0,
324-24 Sec. 3.052(g).)
324-25 (Sections 55.090-55.100 reserved for expansion)
325-1 SUBCHAPTER E. CALLER IDENTIFICATION SERVICE
325-2 Sec. 55.101. DEFINITIONS. In this subchapter:
325-3 (1) "Caller identification information" means any
325-4 information that may be used to identify the specific originating
325-5 number or originating location of a wire or electronic
325-6 communication transmitted by a telephone, including the telephone
325-7 listing number or the name of the customer from whose telephone a
325-8 telephone number is dialed.
325-9 (2) "Caller identification service" means a service
325-10 that provides caller identification information to a device that
325-11 can display the information.
325-12 (3) "Per-call blocking" means a telecommunications
325-13 service that prevents caller identification information from being
325-14 transmitted to a called party on an individual call when the
325-15 calling party affirmatively acts to prevent the transmission.
325-16 (4) "Per-line blocking" means a telecommunications
325-17 service that prevents caller identification information from being
325-18 transmitted to a called party on each call unless the calling party
325-19 affirmatively acts to permit the transmission. (V.A.C.S.
325-20 Art. 1446c-0, Secs. 3.302(h)(1), (2) (part), (3), (4).)
325-21 Sec. 55.102. APPLICABILITY. (a) This subchapter applies
325-22 only to the provision of caller identification service.
325-23 (b) This subchapter does not apply to:
325-24 (1) an identification service that is used in a
325-25 limited system, including a central office based PBX-type system;
326-1 (2) information that is used on a public agency's
326-2 emergency telephone line or on a line that receives the primary
326-3 emergency telephone number (911);
326-4 (3) information exchanged between telecommunications
326-5 utilities, enhanced service providers, or other entities that is
326-6 necessary for the setting up, processing, transmission, or billing
326-7 of telecommunications or related services;
326-8 (4) information provided in compliance with applicable
326-9 law or legal process; or
326-10 (5) an identification service provided in connection
326-11 with a 700, 800, or 900 access code telecommunications service.
326-12 (V.A.C.S. Art. 1446c-0, Secs. 3.302(a), (g).)
326-13 Sec. 55.103. PROVISION OF SERVICE. A telecommunications
326-14 utility or commercial mobile service provider may offer caller
326-15 identification services under this subchapter only if the utility
326-16 or provider obtains written authorization from the commission.
326-17 (V.A.C.S. Art. 1446c-0, Sec. 3.302(b), (h)(2) (part), (i).)
326-18 Sec. 55.104. USE OF INFORMATION. (a) A person may not use
326-19 a caller identification service to compile and sell specific local
326-20 call information without the affirmative approval of the
326-21 originating telephone customer.
326-22 (b) This section does not prohibit a provider of caller
326-23 identification service from:
326-24 (1) verifying network performance or testing the
326-25 caller identification service;
327-1 (2) compiling, using, and disclosing aggregate caller
327-2 identification information; or
327-3 (3) complying with applicable law or legal process.
327-4 (V.A.C.S. Art. 1446c-0, Sec. 3.302(f).)
327-5 Sec. 55.105. PER-CALL BLOCKING. The commission shall
327-6 require that a provider of caller identification service offer free
327-7 per-call blocking to each telephone subscriber in the specific area
327-8 in which the service is offered. (V.A.C.S. Art. 1446c-0, Sec.
327-9 3.302(c).)
327-10 Sec. 55.106. PER-LINE BLOCKING. (a) The commission shall
327-11 require that a provider of caller identification service offer free
327-12 per-line blocking to a particular customer if the commission
327-13 receives from the customer written certification that the customer
327-14 has a compelling need for per-line blocking.
327-15 (b) A provider who is ordered to offer per-line blocking
327-16 under this section shall notify the customer by mail of the date
327-17 the blocking will begin.
327-18 (c) If a customer removes and later reinstates the per-line
327-19 block, the provider may assess a service order charge in an amount
327-20 approved by the commission for the provider's administrative
327-21 expenses relating to the reinstatement.
327-22 (d) The commission may impose a fee or assessment on a
327-23 provider in an amount sufficient to cover the additional expenses
327-24 the commission incurs in implementing the customer certification
327-25 provisions of this section.
328-1 (e) Information received under this section by the
328-2 commission or by a provider is confidential and may be used only to
328-3 administer this section. (V.A.C.S. Art. 1446c-0, Secs. 3.302(d),
328-4 3.3025(a) (part).)
328-5 Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY. The
328-6 commission may prescribe in relation to blocking only a requirement
328-7 authorized by Sections 55.105 and 55.106. (V.A.C.S. Art. 1446c-0,
328-8 Sec. 3.302(e).)
328-9 Sec. 55.108. CALLER ID CONSUMER EDUCATION PANEL. (a) The
328-10 Caller ID Consumer Education Panel is composed of:
328-11 (1) one person appointed by the governor;
328-12 (2) one person appointed by the presiding officer of
328-13 the commission after the presiding officer consults with the Texas
328-14 Council on Family Violence; and
328-15 (3) one person appointed by the counsellor.
328-16 (b) The panel shall:
328-17 (1) meet at least quarterly;
328-18 (2) file an annual report with the commission
328-19 regarding:
328-20 (A) the level of effort and effectiveness of
328-21 consumer education materials; and
328-22 (B) the panel's recommendations for:
328-23 (i) increasing the safe use of caller ID
328-24 services and the privacy of the calling customer; and
328-25 (ii) decreasing the likelihood of harm
329-1 resulting from the use of caller ID services; and
329-2 (3) investigate whether educational caller ID
329-3 materials are distributed in as effective a manner as marketing
329-4 caller ID materials.
329-5 (c) A provider of caller ID services shall file with the
329-6 panel all caller ID materials as the materials become available.
329-7 (d) The panel is abolished and this section expires
329-8 September 1, 1999.
329-9 (e) In this section:
329-10 (1) "Caller ID service" has the meaning assigned by
329-11 Section 55.110.
329-12 (2) "Caller ID materials" means any disseminated
329-13 information relating to caller ID services, including
329-14 advertisements, educational material, training material, and audio
329-15 and video marketing devices. (V.A.C.S. Art. 1446c-0, Secs.
329-16 3.3025(b) (part), (c), (d), (e).)
329-17 Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS. The
329-18 commission may implement the recommendations of the Caller ID
329-19 Consumer Education Panel and interested parties to the extent
329-20 consistent with the public interest. (V.A.C.S. Art. 1446c-0, Sec.
329-21 3.3025(b) (part).)
329-22 Sec. 55.110. REPORT OF BLOCKING FAILURE. (a) A provider of
329-23 caller ID services who becomes aware of the failure of per-call or
329-24 per-line blocking to block identification of a customer shall
329-25 report that failure to the commission, the Caller ID Consumer
330-1 Education Panel, and the customer whose identification was not
330-2 blocked.
330-3 (b) The provider shall make a reasonable effort to notify
330-4 the customer within 24 hours after the provider becomes aware of
330-5 the failure. The provider is not required to notify the customer
330-6 if the customer reported the failure.
330-7 (c) In this section, "caller ID service" means a service
330-8 that permits the called party to determine the identity, telephone
330-9 number, or address of the calling party. The term does not include
330-10 911 services. (V.A.C.S. Art. 1446c-0, Secs. 3.3025(a) (part),
330-11 (d).)
330-12 (Sections 55.111-55.120 reserved for expansion)
330-13 SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES
330-14 Sec. 55.121. DEFINITION. In this subchapter, "automated
330-15 dial announcing device" means automated equipment used for
330-16 telephone solicitation or collection that can:
330-17 (1) store telephone numbers to be called or produce
330-18 numbers to be called through use of a random or sequential number
330-19 generator; and
330-20 (2) convey, alone or in conjunction with other
330-21 equipment, a prerecorded or synthesized voice message to the number
330-22 called without the use of a live operator. (V.A.C.S. Art. 1446c-0,
330-23 Sec. 3.651(1).)
330-24 Sec. 55.122. EXEMPTIONS. This subchapter does not apply to
330-25 the use of an automated dial announcing device:
331-1 (1) to make a call relating to an emergency or a
331-2 public service under a program developed or approved by the
331-3 emergency management coordinator of the county in which the call is
331-4 received; or
331-5 (2) by a public or private primary or secondary school
331-6 system to locate or account for a truant student. (V.A.C.S.
331-7 Art. 1446c-0, Sec. 3.652.)
331-8 Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS
331-9 UTILITY. A person may not use an automated dial announcing device
331-10 to make a telephone call in which the device plays a recorded
331-11 message when the connection is completed unless the person gives to
331-12 each telecommunications utility over whose system the device is to
331-13 be used written notice specifying the type of device to be used.
331-14 (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
331-15 Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING. A person
331-16 may not use an automated dial announcing device for random number
331-17 dialing or to dial numbers determined by successively increasing or
331-18 decreasing integers if the person uses the device to make a
331-19 telephone call in which the device plays a recorded message when
331-20 the connection is completed. (V.A.C.S. Art. 1446c-0, Sec. 3.653(a)
331-21 (part).)
331-22 Sec. 55.125. HOURS WHEN USE PROHIBITED. (a) A person may
331-23 not use an automated dial announcing device to make a telephone
331-24 solicitation call terminating in this state in which the device
331-25 plays a recorded message when the connection is completed if the
332-1 call is made:
332-2 (1) before noon or after 9 p.m. on a Sunday; or
332-3 (2) before 9 a.m. or after 9 p.m. on a weekday or a
332-4 Saturday.
332-5 (b) A person may not use an automated dial announcing device
332-6 to make a telephone collection call terminating in this state in
332-7 which the device plays a recorded message when the connection is
332-8 completed if the call is made at an hour at which collection calls
332-9 are prohibited under the federal Fair Debt Collection Practices Act
332-10 (15 U.S.C. Section 1692 et seq.). (V.A.C.S. Art. 1446c-0, Sec.
332-11 3.653(a) (part).)
332-12 Sec. 55.126. DEVICE DISCONNECTION. A person may not use an
332-13 automated dial announcing device to make a telephone call in which
332-14 the device plays a recorded message when the connection is
332-15 completed unless the device disconnects from the called person's
332-16 line not later than 30 seconds after the call is terminated by
332-17 either party. If the device cannot disconnect during that period,
332-18 a live operator must introduce the call and receive the called
332-19 person's oral consent before beginning a prerecorded or synthesized
332-20 voice message. (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
332-21 Sec. 55.127. CONTENTS OF RECORDED MESSAGE. (a) A person
332-22 may not use an automated dial announcing device to make a telephone
332-23 call in which the device plays a recorded message when the
332-24 connection is completed unless the recorded message states during
332-25 the first 30 seconds of the call:
333-1 (1) the nature of the call;
333-2 (2) the identity of the person, company, or
333-3 organization making the call; and
333-4 (3) the telephone number from which the call is made.
333-5 (b) In addition to the requirements prescribed by Subsection
333-6 (a), a call during which a cross-promotion or reference to a
333-7 pay-per-call information service is made must include a statement
333-8 of:
333-9 (1) the fact that a caller who makes a call to a
333-10 pay-per-call information service's telephone number will be charged
333-11 for that call;
333-12 (2) the amount of the flat-rate or cost-per-minute
333-13 charge the caller will incur or the amount of both if both charges
333-14 will be incurred; and
333-15 (3) the estimated amount of time required to receive
333-16 all the information offered by the service during a call.
333-17 (c) Subsection (a) does not apply to the use of a device if
333-18 the device is used:
333-19 (1) for debt collection purposes in compliance with
333-20 applicable federal law and regulations; and
333-21 (2) by a live operator for automated dialing or hold
333-22 announcement purposes.
333-23 (d) In this section, "pay-per-call information service"
333-24 means a service that routinely delivers, for a predetermined and
333-25 sometimes time-sensitive fee, a prerecorded or live message or
334-1 interactive program after the caller dials a specified 900 or 976
334-2 number. (V.A.C.S. Art. 1446c-0, Secs. 3.653(a) (part), (b), (c).)
334-3 Sec. 55.128. DURATION OF RECORDED MESSAGE. A person may not
334-4 use an automated dial announcing device to make for solicitation
334-5 purposes a telephone call in which the device plays a recorded
334-6 message when the connection is completed unless:
334-7 (1) the recorded message is shorter than one minute;
334-8 or
334-9 (2) the device has the technical capacity to:
334-10 (A) recognize a telephone answering device on
334-11 the called person's line; and
334-12 (B) terminate the call within one minute.
334-13 (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
334-14 Sec. 55.129. PERMIT REQUIRED. A person may not use an
334-15 automated dial announcing device to make a telephone call in which
334-16 the device plays a recorded message when the connection is
334-17 completed unless the person has a permit under Section 55.130.
334-18 (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
334-19 Sec. 55.130. PERMIT. (a) A person may not use an automated
334-20 dial announcing device without a permit issued by the commission.
334-21 (b) An applicant for an original permit must submit to the
334-22 commission an application on a form that:
334-23 (1) is prescribed by the commission; and
334-24 (2) contains:
334-25 (A) the telephone number of each automated dial
335-1 announcing device that the person will use; and
335-2 (B) the physical address from which each
335-3 automated dial announcing device will operate.
335-4 (c) An original permit is valid for one year and may be
335-5 renewed annually by filing with the commission the information
335-6 required by Subsection (b)(2).
335-7 (d) An application for an original permit or a filing
335-8 required for the renewal of the permit must be accompanied by the
335-9 appropriate fee prescribed by Section 55.131.
335-10 (e) In determining whether to deny an application for an
335-11 original permit or renewal of the permit, the commission shall
335-12 consider the compliance record of the owner or operator of the
335-13 automated dial announcing device and may deny the application based
335-14 on that record. (V.A.C.S. Art. 1446c-0, Secs. 3.655(a) (part), (b)
335-15 (part), (c).)
335-16 Sec. 55.131. PERMIT FEE. (a) The commission shall
335-17 prescribe a fee for an original permit or renewal of a permit.
335-18 (b) The amount of the original permit fee must be reasonable
335-19 and cover the enforcement cost to the commission but may not exceed
335-20 $500.
335-21 (c) The fee for renewal of a permit may not exceed $100.
335-22 (V.A.C.S. Art. 1446c-0, Sec. 3.655(a) (part).)
335-23 Sec. 55.132. NOTIFICATION OF CHANGE. (a) The owner or
335-24 operator of an automated dial announcing device shall notify the
335-25 commission if the telephone number of the device or the physical
336-1 address from which the device operates changes.
336-2 (b) The owner or operator shall give the notice by certified
336-3 mail not later than the 48th hour before the hour the device begins
336-4 operating with the new telephone number or at the new address.
336-5 (c) If the owner or operator of a device fails to give
336-6 notice as required by Subsection (b), the person's permit is
336-7 invalid. (V.A.C.S. Art. 1446c-0, Sec. 3.655(b) (part).)
336-8 Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY. The
336-9 commission shall provide to a local exchange company on request a
336-10 copy of a permit issued under this subchapter and of any change
336-11 relating to the permit. (V.A.C.S. Art. 1446c-0, Sec. 3.655(d).)
336-12 Sec. 55.134. COMPLAINTS AND ENFORCEMENT. (a) The
336-13 commission shall:
336-14 (1) investigate complaints relating to the use of an
336-15 automated dial announcing device; and
336-16 (2) enforce this subchapter.
336-17 (b) A local exchange company that receives a complaint
336-18 relating to the use of an automated dial announcing device shall
336-19 send the complaint to the commission. The commission by rule shall
336-20 prescribe the procedures and requirements for sending a complaint
336-21 to the commission. (V.A.C.S. Art. 1446c-0, Secs. 3.654(a),
336-22 3.655(e).)
336-23 Sec. 55.135. REVOCATION OF PERMIT. The commission may
336-24 revoke a person's permit if the person fails to comply with this
336-25 subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.657(a).)
337-1 Sec. 55.136. DISCONNECTION OF SERVICE. (a) If the
337-2 commission or a court determines that a person has violated this
337-3 subchapter, the commission or court shall require a
337-4 telecommunications utility to disconnect service to the person.
337-5 (b) The telecommunications utility may reconnect service to
337-6 the person only on a determination by the commission that the
337-7 person will comply with this subchapter.
337-8 (c) Not later than the third day before the date of the
337-9 disconnection, the telecommunications utility shall give notice to
337-10 the person using the device of its intent to disconnect service.
337-11 However, if the device is causing network congestion or blockage,
337-12 the notice may be given on the day before the date of
337-13 disconnection.
337-14 (d) A telecommunications utility, without an order by the
337-15 commission or a court, may disconnect or refuse to connect service
337-16 to a person using or intending to use an automated dial announcing
337-17 device if the utility determines that the device would cause or is
337-18 causing network harm. (V.A.C.S. Art. 1446c-0, Secs. 3.654(b),
337-19 (c).)
337-20 Sec. 55.137. ADMINISTRATIVE PENALTY. (a) The commission
337-21 may impose an administrative penalty against a person who owns or
337-22 operates an automated dial announcing device in violation of this
337-23 subchapter or a commission rule or order.
337-24 (b) The penalty for a violation may be in an amount not to
337-25 exceed $1,000 for each day or portion of a day during which the
338-1 device operates in violation of this subchapter or a commission
338-2 rule or order.
338-3 (c) The administrative penalty is civil in nature and is in
338-4 addition to any other penalty provided by law.
338-5 (d) The commission by rule shall prescribe the procedures
338-6 for assessing an administrative penalty under this section. The
338-7 procedures must require proper notice and hearing in accordance
338-8 with Chapter 2001, Government Code.
338-9 (e) A person may appeal the final order of the commission
338-10 under Chapter 2001, Government Code. The substantial evidence rule
338-11 applies on appeal. (V.A.C.S. Art. 1446c-0, Secs. 3.656(a), (b),
338-12 (c), (d).)
338-13 Sec. 55.138. CRIMINAL PENALTY. (a) A person commits an
338-14 offense if the person owns or operates an automated dial announcing
338-15 device that the person knows is operating in violation of this
338-16 subchapter.
338-17 (b) An offense under this section is a Class A misdemeanor.
338-18 (V.A.C.S. Art. 1446c-0, Sec. 3.657(b).)
338-19 (Sections 55.139-55.150 reserved for expansion)
338-20 SUBCHAPTER G. TELEPHONE SOLICITATION
338-21 Sec. 55.151. COMPLIANCE WITH REQUEST NOT TO BE CALLED.
338-22 (a) A telephone solicitor operating in this state who makes a
338-23 consumer telephone call subject to Section 37.02, Business &
338-24 Commerce Code, shall implement in-house systems and procedures so
338-25 that every effort is made by the solicitor not to call consumers
339-1 who ask not to be called again by the solicitor.
339-2 (b) The commission may enforce this section. (V.A.C.S.
339-3 Art. 1446c-0, Sec. 3.659.)
339-4 Sec. 55.152. NOTICE TO CONSUMERS. The commission by rule
339-5 shall require a local exchange company or telephone cooperative to:
339-6 (1) notify its customers of the provisions of:
339-7 (A) Chapter 37, Business & Commerce Code; and
339-8 (B) Section 55.151; and
339-9 (2) provide the notice by:
339-10 (A) inserting the notice annually in the billing
339-11 statement mailed to a customer; or
339-12 (B) publishing the notice in the consumer
339-13 information pages of its local telephone directory. (V.A.C.S.
339-14 Art. 1446c-0, Sec. 3.660.)
339-15 (Sections 55.153-55.170 reserved for expansion)
339-16 SUBCHAPTER H. PAY TELEPHONES
339-17 Sec. 55.171. DEFINITION. In this subchapter, "provider"
339-18 means an entity that provides pay telephone service, including:
339-19 (1) an incumbent local exchange company; and
339-20 (2) a subscriber to a customer-owned pay telephone
339-21 service. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(i).)
339-22 Sec. 55.172. LIMITATION. This subchapter prescribes the
339-23 limits of:
339-24 (1) the right of a provider to set the provider's
339-25 rates and charges for pay telephone services; and
340-1 (2) the commission's authority over the pay telephone
340-2 service rates of an incumbent local exchange company. (V.A.C.S.
340-3 Art. 1446c-0, Sec. 3.2625(a).)
340-4 Sec. 55.173. REGISTRATION. (a) A person may not provide
340-5 pay telephone service in this state unless the person is registered
340-6 with the commission.
340-7 (b) This section does not apply to a provider who holds a
340-8 certificate of convenience and necessity. (V.A.C.S. Art. 1446c-0,
340-9 Sec. 3.2625(f).)
340-10 Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS. A
340-11 provider may not charge a person making a call on a pay telephone
340-12 for:
340-13 (1) local directory assistance; or
340-14 (2) a call made under Chapter 771 or 772, Health and
340-15 Safety Code. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(b).)
340-16 Sec. 55.175. CHARGE FOR LOCAL CALLS. (a) The commission
340-17 shall establish the limit on the amount a provider may charge for a
340-18 pay telephone coin sent-paid call in the local exchange company's
340-19 toll-free calling area.
340-20 (b) The commission may establish a statewide ceiling on the
340-21 amount a provider may charge for a local pay telephone call that
340-22 is:
340-23 (1) collect;
340-24 (2) operator assisted; or
340-25 (3) paid by credit card or calling card.
341-1 (c) The commission may not establish the ceiling under
341-2 Subsection (b) at an amount that is less than the applicable local
341-3 rates for such a call imposed by any of the four largest
341-4 interexchange telecommunications carriers operating in this state.
341-5 (V.A.C.S. Art. 1446c-0, Sec. 3.2625(c).)
341-6 Sec. 55.176. CHARGE FOR 800-TYPE CALLS. (a) A provider may
341-7 charge at a pay telephone a fee of not more than 25 cents for
341-8 initiating an 800-type call.
341-9 (b) A provider may impose the fee only if:
341-10 (1) the pay telephone is registered with the
341-11 commission; and
341-12 (2) the provider certifies that the pay telephone
341-13 complies with commission rules regarding the provision of pay
341-14 telephone service.
341-15 (c) Subsection (b) does not apply to a local exchange
341-16 company pay telephone.
341-17 (d) A provider may not impose the fee if imposition is
341-18 inconsistent with federal law.
341-19 (e) A provider may not impose the fee for a:
341-20 (1) local call;
341-21 (2) 911 call;
341-22 (3) local directory assistance call; or
341-23 (4) call that is covered by the Telephone Operator
341-24 Consumer Services Improvement Act of 1990 (47 U.S.C. Section 226).
341-25 (f) A provider who imposes the fee must post on each pay
342-1 telephone notice that the fee will be charged. The provider must
342-2 post the notice:
342-3 (1) in plain sight of the user; and
342-4 (2) in a manner consistent with existing commission
342-5 requirements for posting information.
342-6 (g) The commission may not impose on a local exchange
342-7 company the duty or obligation to:
342-8 (1) record the use of pay telephone service;
342-9 (2) bill or collect for the use of the pay telephone;
342-10 or
342-11 (3) remit to the provider the fee authorized by this
342-12 section. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(d).)
342-13 Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR
342-14 OPERATOR-ASSISTED CALLS. (a) A provider may not impose for a
342-15 credit card, calling card, or live or automated operator-assisted
342-16 call a rate or charge that is greater than the authorized rates and
342-17 charges published on March 18, 1995, in the eight newspapers having
342-18 the largest circulation in this state.
342-19 (b) The published rates may not be changed.
342-20 (c) This section does not apply to a local exchange company.
342-21 Chapter 58 governs the pay telephone rates of an incumbent local
342-22 exchange company that elects incentive regulation under that
342-23 chapter. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(e).)
342-24 Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS. (a) A
342-25 provider may not display the telephone number of a pay telephone
343-1 that cannot receive telephone calls.
343-2 (b) A provider shall place in a conspicuous location on each
343-3 pay telephone that cannot receive telephone calls a notice stating
343-4 in letters one-fourth inch high: "THIS TELEPHONE CANNOT RECEIVE
343-5 TELEPHONE CALLS."
343-6 (c) A provider that violates this section or a rule or order
343-7 adopted by the commission under this section is subject to a civil
343-8 penalty as provided by Section 15.028 unless the provider takes
343-9 corrective action to comply with this section or the rule or order
343-10 not later than the 14th day after the date the provider receives
343-11 written notice of the violation.
343-12 (d) The commission has jurisdiction over a provider to the
343-13 extent necessary to enforce this section regardless of whether a
343-14 provider is a telecommunications utility regulated under this
343-15 title.
343-16 (e) The commission may establish procedures to enforce this
343-17 section. (V.A.C.S. Art. 1446c-0, Sec. 3.305.)
343-18 Sec. 55.179. INFORMATION REQUIREMENTS. (a) The commission
343-19 by rule may prescribe the information that must be posted on a pay
343-20 telephone.
343-21 (b) A commission rule may not require a provider or an
343-22 affiliate of a provider to police compliance by another provider
343-23 with the commission's rules. (V.A.C.S. Art. 1446c-0, Sec.
343-24 3.2625(h).)
343-25 Sec. 55.180. VIOLATIONS. The commission may order the
344-1 disconnection of pay telephone service for not more than one year
344-2 for repeat violations of commission rules. (V.A.C.S. Art. 1446c-0,
344-3 Sec. 3.2625(g).)
344-4 (Sections 55.181-55.200 reserved for expansion)
344-5 SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE
344-6 Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE.
344-7 (a) Each company that provides local exchange telephone service in
344-8 overlapping certificated areas shall negotiate the terms of printed
344-9 directory listings and directory assistance in those areas.
344-10 (b) On complaint by the incumbent local exchange company or
344-11 the holder of a certificate of convenience and necessity, a
344-12 certificate of operating authority, or a service provider
344-13 certificate of operating authority, the commission may:
344-14 (1) resolve a dispute between the parties; and
344-15 (2) issue an order setting the terms of the directory
344-16 listings or directory assistance, if necessary.
344-17 (c) This section does not affect the authority of an
344-18 incumbent local exchange company to voluntarily conduct
344-19 negotiations with an applicant for a certificate of convenience and
344-20 necessity, a certificate of operating authority, or a service
344-21 provider certificate of operating authority. (V.A.C.S.
344-22 Art. 1446c-0, Sec. 3.2615.)
344-23 Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS
344-24 UTILITY. A telecommunications utility or an affiliate of that
344-25 utility that publishes a residential or business telephone
345-1 directory that is distributed to the public shall publish in the
345-2 directory the name of each state senator or representative who
345-3 represents all or part of the geographical area for which the
345-4 directory contains listings. (V.A.C.S. Art. 1446c-0, Sec. 3.310.)
345-5 Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER.
345-6 (a) A private for-profit publisher of a residential telephone
345-7 directory that is distributed to the public at minimal or no cost
345-8 shall include in the directory a listing of any toll-free and local
345-9 telephone numbers of:
345-10 (1) state agencies;
345-11 (2) state public services; and
345-12 (3) each state elected official who represents all or
345-13 part of the geographical area for which the directory contains
345-14 listings.
345-15 (b) The listing required by this section:
345-16 (1) must be:
345-17 (A) clearly identified; and
345-18 (B) located or clearly referenced at the front
345-19 of the directory before the main listing of residential and
345-20 business telephone numbers; and
345-21 (2) is not required to exceed a length equivalent to
345-22 two 8-1/2-inch by 11-inch pages, single-spaced in eight-point type.
345-23 (c) The commission by rule may specify:
345-24 (1) the format of the listing; and
345-25 (2) criteria for inclusion of agencies, services, and
346-1 officials.
346-2 (d) The commission, with the cooperation of other state
346-3 agencies, shall:
346-4 (1) compile relevant information to ensure accuracy of
346-5 information in the listing; and
346-6 (2) provide the information to a telecommunications
346-7 utility or telephone directory publisher within a reasonable time
346-8 after a request by the utility or publisher. (V.A.C.S.
346-9 Art. 1446c-0, Sec. 3.309.)
346-10 (Sections 55.204-55.250 reserved for expansion)
346-11 SUBCHAPTER J. TELECOMMUNICATIONS SERVICE BY CERTAIN PROVIDERS
346-12 Sec. 55.251. CHARGE FOR HOTEL OR MOTEL CALL. A hotel or
346-13 motel may not charge more than 50 cents for:
346-14 (1) a local telephone call;
346-15 (2) a credit card telephone call;
346-16 (3) a collect telephone call; or
346-17 (4) any other local telephone call for which
346-18 assistance from the hotel or motel operator is not required.
346-19 (V.A.C.S. Art. 1446c-0, Sec. 3.306.)
346-20 Sec. 55.252. 900 SERVICE USED BY PROBATIONERS OR PAROLEES.
346-21 (a) This section applies only to a telecommunications utility that
346-22 transports or provides an intrastate 900 service that is:
346-23 (1) covered by a contract authorized by Chapter 76,
346-24 Government Code, or Section 28, Article 42.18, Code of Criminal
346-25 Procedure; and
347-1 (2) used by a defendant under the supervision of a
347-2 community supervision and corrections department or the pardons and
347-3 paroles division of the Texas Department of Criminal Justice to:
347-4 (A) pay a fee or cost; or
347-5 (B) comply with telephone reporting
347-6 requirements.
347-7 (b) A telecommunications utility may adjust or authorize the
347-8 adjustment of an end-user's bill for 900 service described by
347-9 Subsection (a) only with the consent of the contracting community
347-10 supervision and corrections department or the contracting pardons
347-11 and paroles division of the Texas Department of Criminal Justice.
347-12 (V.A.C.S. Art. 1446c-0, Sec. 3.307.)
347-13 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE
347-14 AND UNIVERSAL SERVICE FUND
347-15 SUBCHAPTER A. GENERAL PROVISIONS
347-16 Sec. 56.001. DEFINITION
347-17 Sec. 56.002. CONFLICT OF PROVISIONS
347-18 (Sections 56.003-56.020 reserved for expansion)
347-19 SUBCHAPTER B. UNIVERSAL SERVICE FUND
347-20 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED
347-21 Sec. 56.022. UNIFORM CHARGE
347-22 Sec. 56.023. COMMISSION POWERS AND DUTIES
347-23 Sec. 56.024. REPORTS; CONFIDENTIALITY
347-24 Sec. 56.025. MAINTENANCE OF RATES AND EXPANSION OF FUND
347-25 FOR CERTAIN COMPANIES
348-1 Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS
348-2 (Sections 56.027-56.070 reserved for expansion)
348-3 SUBCHAPTER C. TEL-ASSISTANCE SERVICE PROGRAM
348-4 Sec. 56.071. TEL-ASSISTANCE SERVICE REQUIREMENTS
348-5 Sec. 56.072. CONSUMER ELIGIBILITY AND APPLICATION
348-6 Sec. 56.073. ELIGIBLE CONSUMERS
348-7 Sec. 56.074. PROGRAM BILLING
348-8 Sec. 56.075. SERVICES ELIGIBLE; LIMIT
348-9 Sec. 56.076. SERVICES PROHIBITED
348-10 Sec. 56.077. ADAPTIVE EQUIPMENT
348-11 Sec. 56.078. RECOVERY OF LOST REVENUE
348-12 (Sections 56.079-56.100 reserved for expansion)
348-13 SUBCHAPTER D. STATEWIDE TELECOMMUNICATIONS RELAY
348-14 ACCESS SERVICE
348-15 Sec. 56.101. PURPOSE
348-16 Sec. 56.102. TELECOMMUNICATIONS RELAY ACCESS SERVICE
348-17 Sec. 56.103. TELECOMMUNICATIONS RELAY ACCESS SERVICE
348-18 REQUIREMENTS
348-19 Sec. 56.104. TELECOMMUNICATIONS RELAY ACCESS SERVICE
348-20 CHARGES
348-21 Sec. 56.105. TRIAL SERVICE COSTS AND DESIGN INFORMATION
348-22 Sec. 56.106. TELECOMMUNICATIONS RELAY ACCESS SERVICE
348-23 ASSESSMENTS
348-24 Sec. 56.107. UNIVERSAL SERVICE FUND SURCHARGE
349-1 Sec. 56.108. SELECTION OF TELECOMMUNICATIONS RELAY ACCESS
349-2 SERVICE CARRIER
349-3 Sec. 56.109. COMPENSATION OF CARRIER
349-4 Sec. 56.110. ADVISORY COMMITTEE
349-5 Sec. 56.111. ADVISORY COMMITTEE DUTIES
349-6 Sec. 56.112. ADVISORY COMMITTEE SUPPORT AND COSTS
349-7 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE
349-8 AND UNIVERSAL SERVICE FUND
349-9 SUBCHAPTER A. GENERAL PROVISIONS
349-10 Sec. 56.001. DEFINITION. In this chapter, "department"
349-11 means the Texas Department of Human Services. (New.)
349-12 Sec. 56.002. CONFLICT OF PROVISIONS. If this chapter
349-13 conflicts with another provision of this title, this chapter
349-14 prevails. (V.A.C.S. Art. 1446c-0, Sec. 3.610.)
349-15 (Sections 56.003-56.020 reserved for expansion)
349-16 SUBCHAPTER B. UNIVERSAL SERVICE FUND
349-17 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
349-18 commission shall adopt and enforce rules requiring local exchange
349-19 companies to establish a universal service fund to:
349-20 (1) assist local exchange companies in providing basic
349-21 local telecommunications service at reasonable rates in high cost
349-22 rural areas;
349-23 (2) reimburse local exchange companies for revenue
349-24 lost by providing tel-assistance service under Subchapter C;
349-25 (3) reimburse the telecommunications carrier that
350-1 provides the statewide telecommunications relay access service
350-2 under Subchapter D; and
350-3 (4) reimburse the department and the commission for
350-4 costs incurred in implementing this chapter and Chapter 57.
350-5 (V.A.C.S. Art. 1446c-0, Sec. 3.608(a).)
350-6 Sec. 56.022. UNIFORM CHARGE. (a) The universal service
350-7 fund is funded by a statewide uniform charge payable by each
350-8 telecommunications provider that has access to the customer base.
350-9 (b) A telecommunications provider shall pay the charge in
350-10 accordance with procedures approved by the commission.
350-11 (c) The uniform charge is on services and at rates the
350-12 commission determines. In establishing the charge and the services
350-13 to which the charge will apply, the commission may not:
350-14 (1) grant an unreasonable preference or advantage to a
350-15 telecommunications provider; or
350-16 (2) subject a telecommunications provider to
350-17 unreasonable prejudice or disadvantage. (V.A.C.S. Art. 1446c-0,
350-18 Sec. 3.608(c).)
350-19 Sec. 56.023. COMMISSION POWERS AND DUTIES. (a) The
350-20 commission shall:
350-21 (1) in a manner that assures reasonable rates for
350-22 basic local telecommunications service, adopt eligibility criteria
350-23 and review procedures, including a method for administrative
350-24 review, the commission finds necessary to fund the universal
350-25 service fund and make distributions from that fund;
351-1 (2) determine which local exchange companies meet the
351-2 eligibility criteria;
351-3 (3) determine the amount of and approve a procedure
351-4 for reimbursement to local exchange companies of revenue lost in
351-5 providing tel-assistance service under Subchapter C;
351-6 (4) establish and collect fees from the universal
351-7 service fund necessary to recover the costs the department and the
351-8 commission incur in administering this chapter and Chapter 57; and
351-9 (5) approve procedures for the collection and
351-10 disbursal of the revenue of the universal service fund.
351-11 (b) The eligibility criteria must require that a local
351-12 exchange company, in compliance with the commission's quality of
351-13 service requirements:
351-14 (1) offer service to each consumer within the
351-15 company's certificated area; and
351-16 (2) render continuous and adequate service within the
351-17 company's certificated area.
351-18 (c) The commission shall adopt rules for the administration
351-19 of the universal service fund and may act as necessary and
351-20 convenient to administer the fund. (V.A.C.S. Art. 1446c-0, Secs.
351-21 3.608(d), (e), (f) (part).)
351-22 Sec. 56.024. REPORTS; CONFIDENTIALITY. (a) The commission
351-23 may require a local exchange company or another telecommunications
351-24 provider to provide a report or information necessary to assess
351-25 contributions to the universal service fund.
352-1 (b) A report or information is confidential and not subject
352-2 to disclosure under Chapter 552, Government Code. (V.A.C.S.
352-3 Art. 1446c-0, Sec. 3.608(f) (part).)
352-4 Sec. 56.025. MAINTENANCE OF RATES AND EXPANSION OF FUND FOR
352-5 CERTAIN COMPANIES. (a) In addition to the authority provided by
352-6 Section 56.021, for each local exchange company that serves fewer
352-7 than five million access lines, the commission:
352-8 (1) may adopt a mechanism necessary to maintain
352-9 reasonable rates for local exchange telephone service; and
352-10 (2) shall adopt rules to expand the universal service
352-11 fund in the circumstances prescribed by this section.
352-12 (b) The commission shall implement a mechanism through the
352-13 universal service fund to replace the reasonably projected
352-14 reduction in high cost assistance revenue caused by a commission
352-15 order, rule, or policy. This subsection does not apply to an order
352-16 entered in a proceeding related to an individual company's revenue
352-17 requirements.
352-18 (c) The commission shall implement a mechanism to replace
352-19 the reasonably projected change in revenue caused by a Federal
352-20 Communications Commission order, rule, or policy that changes:
352-21 (1) the federal universal service fund revenue of a
352-22 local exchange company; or
352-23 (2) costs or revenue assigned to the intrastate
352-24 jurisdiction.
352-25 (d) The commission shall implement a mechanism to replace
353-1 the reasonably projected reduction in contribution caused by a
353-2 change of commission policy regarding intraLATA "1-plus" dialing
353-3 access. In this subsection, "contribution" means the average
353-4 intraLATA long distance message telecommunications service revenue
353-5 per minute, including intraLATA toll pooling and associated
353-6 impacts, less the average message telecommunications service cost
353-7 per minute less the average contribution from switched access
353-8 multiplied by the projected change in intraLATA "1-plus" minutes of
353-9 use.
353-10 (e) The commission shall implement a mechanism to replace
353-11 the reasonably projected increase in costs or decrease in revenue
353-12 of the intrastate jurisdiction caused by another governmental
353-13 agency's order, rule, or policy.
353-14 (f) A mechanism implemented under Subsection (c), (d), or
353-15 (e) must be through:
353-16 (1) an increase in rates, if the increase would not
353-17 adversely affect universal service; or
353-18 (2) the universal service fund. (V.A.C.S.
353-19 Art. 1446c-0, Secs. 3.608(b)(1), (2), (3), (4), (5).)
353-20 Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS. (a) A
353-21 revenue requirement showing is not required for a disbursement from
353-22 the universal service fund under this subchapter.
353-23 (b) The commission shall make each disbursement from the
353-24 universal service fund promptly and efficiently so that a
353-25 telecommunications provider or local exchange company does not
354-1 experience an unnecessary cash-flow change as a result of a change
354-2 in governmental policy. (V.A.C.S. Art. 1446c-0, Sec. 3.608(b)(6).)
354-3 (Sections 56.027-56.070 reserved for expansion)
354-4 SUBCHAPTER C. TEL-ASSISTANCE SERVICE PROGRAM
354-5 Sec. 56.071. TEL-ASSISTANCE SERVICE REQUIREMENTS. (a) The
354-6 commission shall adopt and enforce rules requiring a local exchange
354-7 company to establish a telecommunications service assistance
354-8 program to provide a reduction in the cost of telecommunications
354-9 service to each eligible consumer in the company's certificated
354-10 area. The reduction must be a reduction on the consumer's
354-11 telephone bill.
354-12 (b) Except as provided by Section 56.075(b), the reduction
354-13 allowed by the program is 65 percent of the applicable tariff rate
354-14 for the service provided.
354-15 (c) The program is named "tel-assistance service." (V.A.C.S.
354-16 Art. 1446c-0, Secs. 3.601, 3.603(a) (part), (c).)
354-17 Sec. 56.072. CONSUMER ELIGIBILITY AND APPLICATION. (a) The
354-18 department shall develop procedures for taking an application for
354-19 certification of eligibility for the tel-assistance service program
354-20 and for determining eligibility for that program.
354-21 (b) To be eligible for the tel-assistance service program,
354-22 an applicant must:
354-23 (1) be a head of household and disabled, as determined
354-24 by the department; and
354-25 (2) have a household income at or below the poverty
355-1 level, as determined by the United States Office of Management and
355-2 Budget and reported annually in the Federal Register.
355-3 (c) The burden of proving eligibility for the tel-assistance
355-4 service program is on the consumer applying for the program.
355-5 (V.A.C.S. Art. 1446c-0, Sec. 3.602(a).)
355-6 Sec. 56.073. ELIGIBLE CONSUMERS. (a) Each six months, the
355-7 department shall provide to each local exchange company a list of
355-8 all persons eligible for the tel-assistance service program that
355-9 includes each person's:
355-10 (1) name;
355-11 (2) address; and
355-12 (3) if applicable, telephone number.
355-13 (b) From the list of eligible persons, a local exchange
355-14 company shall identify the consumers to whom the company provides
355-15 service who are eligible for the program. (V.A.C.S. Art. 1446c-0,
355-16 Sec. 3.602(b) (part).)
355-17 Sec. 56.074. PROGRAM BILLING. (a) A local exchange company
355-18 shall begin tel-assistance service program billing for an eligible
355-19 consumer not later than the 60th day after the date the company
355-20 receives the list the department provides under Section 56.073(a).
355-21 (b) The local exchange company shall continue tel-assistance
355-22 service program billing for a consumer until the department
355-23 notifies the company that the consumer is not eligible for the
355-24 program. (V.A.C.S. Art. 1446c-0, Sec. 3.602(b) (part).)
355-25 Sec. 56.075. SERVICES ELIGIBLE; LIMIT. (a) The reduction
356-1 provided under the tel-assistance service program applies only to:
356-2 (1) residential flat rate basic local exchange
356-3 service;
356-4 (2) residential local exchange access service; and
356-5 (3) residential local area calling.
356-6 (b) The reduction for local area calling is limited to an
356-7 amount such that together with the reduction for local exchange
356-8 access service the rate does not exceed the comparable reduced flat
356-9 rate for the service. (V.A.C.S. Art. 1446c-0, Sec. 3.603(a)
356-10 (part).)
356-11 Sec. 56.076. SERVICES PROHIBITED. (a) A local exchange
356-12 company may not provide to the dwelling of a consumer participating
356-13 in the tel-assistance service program a local voice service other
356-14 than a service described by Section 56.075.
356-15 (b) A local exchange company may not provide a consumer
356-16 participating in the tel-assistance service program with:
356-17 (1) single or party line optional extended area
356-18 service;
356-19 (2) optional extended area calling service;
356-20 (3) foreign zone service; or
356-21 (4) foreign exchange service. (V.A.C.S. Art. 1446c-0,
356-22 Sec. 3.603(b) (part).)
356-23 Sec. 56.077. ADAPTIVE EQUIPMENT. This subchapter does not
356-24 prohibit a person who is eligible for the tel-assistance service
356-25 program from obtaining or using telecommunications equipment
357-1 designed to help a person use a telecommunications service.
357-2 (V.A.C.S. Art. 1446c-0, Sec. 3.603(b) (part).)
357-3 Sec. 56.078. RECOVERY OF LOST REVENUE. A local exchange
357-4 company is entitled to recover from the universal service fund any
357-5 loss of revenue that results solely from the provision of
357-6 tel-assistance service. (V.A.C.S. Art. 1446c-0, Sec. 3.607.)
357-7 (Sections 56.079-56.100 reserved for expansion)
357-8 SUBCHAPTER D. STATEWIDE TELECOMMUNICATIONS RELAY
357-9 ACCESS SERVICE
357-10 Sec. 56.101. PURPOSE. The purpose of this subchapter is to
357-11 provide for the uniform and coordinated provision by one
357-12 telecommunications carrier of a statewide telecommunications relay
357-13 access service for persons with an impairment of hearing or speech.
357-14 (V.A.C.S. Art. 1446c-0, Sec. 3.604(a) (part).)
357-15 Sec. 56.102. TELECOMMUNICATIONS RELAY ACCESS SERVICE.
357-16 (a) The commission shall adopt and enforce rules establishing a
357-17 statewide telecommunications relay access service for the use of a
357-18 person with an impairment of hearing or speech.
357-19 (b) The commission rules shall provide that the service
357-20 must:
357-21 (1) use specialized communications equipment, such as
357-22 a telecommunications device for the deaf, and operator
357-23 translations; and
357-24 (2) meet the criteria provided by Sections 56.103,
357-25 56.104, and 56.105. (V.A.C.S. Art. 1446c-0, Secs. 3.604(a) (part),
358-1 (b) (part).)
358-2 Sec. 56.103. TELECOMMUNICATIONS RELAY ACCESS SERVICE
358-3 REQUIREMENTS. (a) The telecommunications relay access service
358-4 shall provide a person with an impairment of hearing or speech with
358-5 access to the telecommunications network in this state equivalent
358-6 to the access provided other customers.
358-7 (b) The service consists of:
358-8 (1) switching and transmission of the call;
358-9 (2) live or automated verbal and print translations of
358-10 communications between a person with an impairment of hearing or
358-11 speech who uses a telecommunications device for the deaf or a
358-12 similar automated device and a person who does not have such
358-13 equipment; and
358-14 (3) other service enhancements proposed by the carrier
358-15 and approved by the commission. (V.A.C.S. Art. 1446c-0, Sec.
358-16 3.604(b) (part).)
358-17 Sec. 56.104. TELECOMMUNICATIONS RELAY ACCESS SERVICE
358-18 CHARGES. (a) For a call made using the telecommunications relay
358-19 access service, the person calling or called:
358-20 (1) may not be charged for a call that originates and
358-21 terminates in the same local calling area; and
358-22 (2) shall pay one-half of the total charges
358-23 established by contract with the commission for intrastate
358-24 interexchange calls.
358-25 (b) Charges related to providing the service that, under
359-1 Subsection (a), are not charged to a person calling or called shall
359-2 be funded from the universal service fund, as specified by the
359-3 service provider's contract with the commission.
359-4 (c) A local exchange company may not impose an interexchange
359-5 carrier access charge on a call using the service that originates
359-6 and terminates in the same local calling area.
359-7 (d) A local exchange company shall provide billing and
359-8 collection services for the service at just and reasonable rates.
359-9 (V.A.C.S. Art. 1446c-0, Sec. 3.604(b) (part).)
359-10 Sec. 56.105. TRIAL SERVICE COSTS AND DESIGN INFORMATION. If
359-11 the commission orders a local exchange company to provide for a
359-12 trial telecommunications relay access service for persons with an
359-13 impairment of hearing or speech, all pertinent costs and design
359-14 information from the trial must be made available to the public.
359-15 (V.A.C.S. Art. 1446c-0, Sec. 3.604(b) (part).)
359-16 Sec. 56.106. TELECOMMUNICATIONS RELAY ACCESS SERVICE
359-17 ASSESSMENTS. (a) The commission shall set appropriate assessments
359-18 for all telecommunications utilities to fund the telecommunications
359-19 relay access service.
359-20 (b) In setting an assessment, the commission shall consider:
359-21 (1) the aggregate calling pattern of service users;
359-22 and
359-23 (2) any other factor the commission finds appropriate
359-24 and in the public interest.
359-25 (c) The commission shall:
360-1 (1) review the assessments annually; and
360-2 (2) adjust the assessments as appropriate. (V.A.C.S.
360-3 Art. 1446c-0, Sec. 3.604(d).)
360-4 Sec. 56.107. UNIVERSAL SERVICE FUND SURCHARGE. (a) A
360-5 telecommunications utility may recover the utility's universal
360-6 service fund assessment for the telecommunications relay access
360-7 service through a surcharge added to the utility customers' bills.
360-8 (b) The commission shall specify how each telecommunications
360-9 utility is to determine the amount of the surcharge.
360-10 (c) If a telecommunications utility imposes the surcharge,
360-11 the bill shall list the surcharge as the "universal service fund
360-12 surcharge." (V.A.C.S. Art. 1446c-0, Sec. 3.604(c).)
360-13 Sec. 56.108. SELECTION OF TELECOMMUNICATIONS RELAY ACCESS
360-14 SERVICE CARRIER. (a) The commission shall select one
360-15 telecommunications carrier to provide the statewide
360-16 telecommunications relay access service.
360-17 (b) The commission shall make a written award of the
360-18 contract to the telecommunications carrier whose proposal is the
360-19 most advantageous to this state, considering:
360-20 (1) price;
360-21 (2) the interests of the community of persons with an
360-22 impairment of hearing or speech in having access to a high quality
360-23 and technologically advanced telecommunications system; and
360-24 (3) any other factor listed in the commission's
360-25 request for proposals.
361-1 (c) The commission shall consider each proposal in a manner
361-2 that does not disclose the contents of the proposal to a
361-3 telecommunications carrier making a competing proposal.
361-4 (d) The commission's evaluation of a telecommunications
361-5 carrier's proposal shall include the:
361-6 (1) charges for the service;
361-7 (2) service enhancements proposed by the carrier;
361-8 (3) technological sophistication of the network
361-9 proposed by the carrier; and
361-10 (4) date proposed for beginning the service.
361-11 (V.A.C.S. Art. 1446c-0, Sec. 3.604(e).)
361-12 Sec. 56.109. COMPENSATION OF CARRIER. (a) The
361-13 telecommunications carrier that provides the telecommunications
361-14 relay access service shall be compensated at rates and on terms
361-15 provided by the carrier's contract with the commission.
361-16 (b) The compensation may include:
361-17 (1) a return on the investment required to provide the
361-18 service; and
361-19 (2) compensation for unbillable or uncollectible calls
361-20 placed through the service.
361-21 (c) Compensation for unbillable or uncollectible calls is
361-22 subject to a reasonable limitation determined by the commission.
361-23 (V.A.C.S. Art. 1446c-0, Sec. 3.604(f).)
361-24 Sec. 56.110. ADVISORY COMMITTEE. (a) An advisory committee
361-25 to assist the commission in administering this subchapter is
362-1 composed of the following persons appointed by the commission:
362-2 (1) two deaf persons recommended by the Texas
362-3 Association of the Deaf;
362-4 (2) one person with a hearing impairment recommended
362-5 by Self-Help for the Hard of Hearing;
362-6 (3) one person with a hearing impairment recommended
362-7 by the American Association of Retired Persons;
362-8 (4) one deaf and blind person recommended by the Texas
362-9 Deaf/Blind Association;
362-10 (5) one person with a speech impairment and one person
362-11 with a speech and hearing impairment recommended by the Coalition
362-12 of Texans with Disabilities;
362-13 (6) two representatives of telecommunications
362-14 utilities, one representing a nonlocal exchange utility and one
362-15 representing a local exchange company, chosen from a list of
362-16 candidates provided by the Texas Telephone Association;
362-17 (7) two persons, at least one of whom is deaf, with
362-18 experience in providing relay services recommended by the Texas
362-19 Commission for the Deaf and Hard of Hearing; and
362-20 (8) two public members recommended by organizations
362-21 representing consumers of telecommunications services.
362-22 (b) Members of the advisory committee serve two-year terms.
362-23 A member whose term has expired shall continue to serve until a
362-24 qualified replacement is appointed. (V.A.C.S. Art. 1446c-0, Secs.
362-25 3.604(g), (h) (part).)
363-1 Sec. 56.111. ADVISORY COMMITTEE DUTIES. The advisory
363-2 committee shall:
363-3 (1) monitor the establishment, administration, and
363-4 promotion of the statewide telecommunications relay access service;
363-5 and
363-6 (2) advise the commission in pursuing a service that
363-7 meets the needs of persons with an impairment of hearing or speech
363-8 in communicating with other telecommunications services users.
363-9 (V.A.C.S. Art. 1446c-0, Sec. 3.604(h) (part).)
363-10 Sec. 56.112. ADVISORY COMMITTEE SUPPORT AND COSTS. (a) The
363-11 commission shall provide to the advisory committee:
363-12 (1) clerical and staff support; and
363-13 (2) a secretary to record committee meetings.
363-14 (b) The commission's costs associated with the advisory
363-15 committee shall be reimbursed from the universal service fund.
363-16 (V.A.C.S. Art. 1446c-0, Sec. 3.604(h) (part).)
363-17 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES
363-18 SUBCHAPTER A. GENERAL PROVISIONS
363-19 Sec. 57.001. CONFLICT OF PROVISIONS
363-20 (Sections 57.002-57.020 reserved for expansion)
363-21 SUBCHAPTER B. DISTANCE LEARNING AND INFORMATION SHARING
363-22 Sec. 57.021. DEFINITIONS
363-23 Sec. 57.022. REDUCED RATES FOR DISTANCE LEARNING OR
363-24 INFORMATION SHARING SERVICES
363-25 Sec. 57.023. SERVICE AND RATE REQUIREMENTS
364-1 Sec. 57.024. TARIFF FILINGS
364-2 Sec. 57.025. CHANGES IN RATE PROGRAM
364-3 (Sections 57.026-57.040 reserved for expansion)
364-4 SUBCHAPTER C. TELECOMMUNICATIONS INFRASTRUCTURE FUND
364-5 Sec. 57.041. FINDINGS AND POLICY
364-6 Sec. 57.042. DEFINITIONS
364-7 Sec. 57.043. TELECOMMUNICATIONS INFRASTRUCTURE FUND AND
364-8 ACCOUNTS
364-9 Sec. 57.044. TELECOMMUNICATIONS INFRASTRUCTURE FUND BOARD
364-10 Sec. 57.045. POWERS AND DUTIES OF BOARD
364-11 Sec. 57.046. USE OF ACCOUNTS
364-12 Sec. 57.047. GRANT AND LOAN PROGRAM
364-13 Sec. 57.048. ASSESSMENTS AND COLLECTIONS
364-14 Sec. 57.049. ISSUANCE OF WARRANTS
364-15 Sec. 57.050. ASSISTANCE OF OTHER AGENCIES
364-16 Sec. 57.051. SUNSET PROVISION
364-17 (Sections 57.052-57.070 reserved for expansion)
364-18 SUBCHAPTER D. INTERACTIVE MULTIMEDIA COMMUNICATIONS
364-19 Sec. 57.071. DEFINITION
364-20 Sec. 57.072. RATES FOR INTERACTIVE MULTIMEDIA
364-21 COMMUNICATIONS
364-22 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES
364-23 SUBCHAPTER A. GENERAL PROVISIONS
364-24 Sec. 57.001. CONFLICT OF PROVISIONS. If this chapter
364-25 conflicts with another provision of this title, this chapter
365-1 prevails. (V.A.C.S. Art. 1446c-0, Sec. 3.610.)
365-2 (Sections 57.002-57.020 reserved for expansion)
365-3 SUBCHAPTER B. DISTANCE LEARNING AND INFORMATION SHARING
365-4 Sec. 57.021. DEFINITIONS. In this subchapter:
365-5 (1) "Distance learning" means an instruction,
365-6 learning, or training resource, including video, data, voice, or
365-7 electronic information, that is:
365-8 (A) used by an educational institution
365-9 predominantly for instruction, learning, or training; and
365-10 (B) transmitted from a site to one or more other
365-11 sites by a telecommunications service.
365-12 (2) "Educational institution" includes:
365-13 (A) an accredited primary or secondary school;
365-14 (B) an institution of higher education as
365-15 defined by Section 61.003, Education Code;
365-16 (C) a private institution of higher education
365-17 accredited by a recognized accrediting agency as defined by Section
365-18 61.003, Education Code;
365-19 (D) the Texas Education Agency and its
365-20 successors and assigns;
365-21 (E) a regional education service center
365-22 established and operated in accordance with Chapter 8, Education
365-23 Code; or
365-24 (F) the Texas Higher Education Coordinating
365-25 Board and its successors and assigns.
366-1 (3) "Library" means:
366-2 (A) a public library or regional library system
366-3 as defined by Section 441.122, Government Code; or
366-4 (B) a library operated by an institution of
366-5 higher education or a school district. (V.A.C.S. Art. 1446c-0,
366-6 Sec. 3.605(h).)
366-7 Sec. 57.022. REDUCED RATES FOR DISTANCE LEARNING OR
366-8 INFORMATION SHARING SERVICES. (a) The commission by rule shall
366-9 require a dominant carrier to file a tariff that includes a reduced
366-10 rate for a telecommunications service the commission finds is
366-11 directly related to:
366-12 (1) a distance learning activity that is or could be
366-13 conducted by an educational institution in this state; or
366-14 (2) an information sharing program that is or could be
366-15 conducted by a library in this state.
366-16 (b) The commission rules shall specify:
366-17 (1) each telecommunications service to which
366-18 Subsection (a) applies;
366-19 (2) the process for an educational institution or
366-20 library to qualify for a reduced rate;
366-21 (3) the date by which a dominant carrier is required
366-22 to file a tariff;
366-23 (4) guidelines and criteria that require the services
366-24 and reduced rates to further the goals prescribed by Section
366-25 57.023; and
367-1 (5) any other requirement or term that the commission
367-2 determines to be in the public interest.
367-3 (c) The commission is not required to determine the long run
367-4 incremental cost of providing a service before approving a reduced
367-5 rate for the service.
367-6 (d) Until cost determination rules are developed and the
367-7 rates established under this section are changed as necessary to
367-8 ensure proper cost recovery, the reduced rates established by the
367-9 commission shall be equal to 75 percent of the otherwise applicable
367-10 rate.
367-11 (e) After the commission develops cost determination rules
367-12 for telecommunications services generally, the commission shall
367-13 ensure that a reduced rate approved under this section:
367-14 (1) recovers service-specific long run incremental
367-15 costs; and
367-16 (2) avoids subsidizing an educational institution or a
367-17 library. (V.A.C.S. Art. 1446c-0, Secs. 3.605(a), (b), (e).)
367-18 Sec. 57.023. SERVICE AND RATE REQUIREMENTS. The services
367-19 and reduced rates must be designed to:
367-20 (1) encourage the development and offering of:
367-21 (A) distance learning activities by educational
367-22 institutions; and
367-23 (B) information sharing programs of libraries;
367-24 (2) meet the:
367-25 (A) distance learning needs identified by the
368-1 educational community; and
368-2 (B) information sharing needs identified by
368-3 libraries; and
368-4 (3) recover the long run incremental costs of
368-5 providing the services, to the extent those costs can be
368-6 identified, to avoid subsidizing an educational institution or a
368-7 library. (V.A.C.S. Art. 1446c-0, Sec. 3.605(d).)
368-8 Sec. 57.024. TARIFF FILINGS. A tariff filed by a dominant
368-9 carrier under Section 57.022:
368-10 (1) may concern the implementation of this subchapter
368-11 only;
368-12 (2) is not a rate change under Subchapter C, Chapter
368-13 53; and
368-14 (3) does not affect the carrier's other rates or
368-15 services. (V.A.C.S. Art. 1446c-0, Sec. 3.605(c).)
368-16 Sec. 57.025. CHANGES IN RATE PROGRAM. (a) An educational
368-17 institution, library, or dominant carrier may request the
368-18 commission to:
368-19 (1) provide for a reduced rate for a service that:
368-20 (A) is directly related to a distance learning
368-21 activity or an information sharing program; and
368-22 (B) is not covered by commission rules;
368-23 (2) change a rate;
368-24 (3) amend a tariff; or
368-25 (4) amend a commission rule.
369-1 (b) The commission shall take the action requested under
369-2 Subsection (a) if the commission determines the action is
369-3 appropriate. (V.A.C.S. Art. 1446c-0, Secs. 3.605(f), (g).)
369-4 (Sections 57.026-57.040 reserved for expansion)
369-5 SUBCHAPTER C. TELECOMMUNICATIONS INFRASTRUCTURE FUND
369-6 Sec. 57.041. FINDINGS AND POLICY. (a) The legislature
369-7 finds that commercial mobile service providers:
369-8 (1) benefit from the public telecommunications network
369-9 by the ability to originate and terminate calls that traverse the
369-10 mobile and cellular network; and
369-11 (2) will benefit by the advancement of the public
369-12 telecommunications network through projects funded under this
369-13 subchapter.
369-14 (b) It is the policy of this state that commercial mobile
369-15 service providers contribute an appropriate amount to the
369-16 telecommunications infrastructure fund. (V.A.C.S. Art. 1446c-0,
369-17 Sec. 3.606(b).)
369-18 Sec. 57.042. DEFINITIONS. In this subchapter:
369-19 (1) "Board" means the telecommunications
369-20 infrastructure fund board.
369-21 (2) "Commercial mobile service provider" means a
369-22 provider of commercial mobile service as defined by Section 332(d),
369-23 Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
369-24 Communications Commission rules, and the Omnibus Budget
369-25 Reconciliation Act of 1993 (Pub. L. No. 103-66).
370-1 (3) "Fund" means the telecommunications infrastructure
370-2 fund.
370-3 (4) "Institution of higher education" means:
370-4 (A) an institution of higher education as
370-5 defined by Section 61.003, Education Code; or
370-6 (B) a private or independent institution of
370-7 higher education as defined by Section 61.003, Education Code.
370-8 (5) "Library" means:
370-9 (A) a public library or regional library system
370-10 as those terms are defined by Section 441.122, Government Code; or
370-11 (B) a library operated by an institution of
370-12 higher education or a school district.
370-13 (6) "Public not-for-profit health care facility" means
370-14 a rural or regional hospital or other entity such as a rural health
370-15 clinic that:
370-16 (A) is supported by local or regional tax
370-17 revenue; or
370-18 (B) is a certified not-for-profit health
370-19 corporation, under federal law.
370-20 (7) "School district" includes an independent school
370-21 district, a common school district, and a rural high school
370-22 district.
370-23 (8) "Telemedicine":
370-24 (A) means medical services delivered by
370-25 telecommunications technologies to rural or underserved public
371-1 not-for-profit health care facilities or primary health care
371-2 facilities in collaboration with an academic health center and an
371-3 associated teaching hospital or tertiary center; and
371-4 (B) includes consultive services, diagnostic
371-5 services, interactive video consultation, teleradiology,
371-6 telepathology, and distance education for working health care
371-7 professionals. (V.A.C.S. Art. 1446c-0, Secs. 3.606(a)(1), (2),
371-8 (3), (4), (5), (7), (8), (9).)
371-9 Sec. 57.043. TELECOMMUNICATIONS INFRASTRUCTURE FUND AND
371-10 ACCOUNTS. (a) The telecommunications infrastructure fund is
371-11 composed of the telecommunications utilities account and the
371-12 commercial mobile service providers account.
371-13 (b) The telecommunications utilities account is financed by
371-14 an annual assessment on each telecommunications utility doing
371-15 business in this state. A telecommunications utility shall pay the
371-16 annual assessment according to the ratio that the annual taxable
371-17 telecommunications receipts reported by that telecommunications
371-18 utility under Chapter 151, Tax Code, bears to the total annual
371-19 taxable telecommunications receipts reported by all
371-20 telecommunications utilities under that chapter.
371-21 (c) The commercial mobile service providers account is
371-22 financed by an annual assessment on each commercial mobile service
371-23 provider doing business in this state. Each commercial mobile
371-24 service provider shall pay the annual assessment according to the
371-25 ratio that the annual taxable telecommunications receipts reported
372-1 by that provider under Chapter 151, Tax Code, bears to the total
372-2 annual taxable telecommunications receipts reported by all
372-3 commercial mobile service providers under that chapter.
372-4 (d) Money in the fund may be appropriated only for a use
372-5 consistent with the purposes of this subchapter. (V.A.C.S.
372-6 Art. 1446c-0, Secs. 3.606(j), (k), (n) (part).)
372-7 Sec. 57.044. TELECOMMUNICATIONS INFRASTRUCTURE FUND BOARD.
372-8 (a) The telecommunications infrastructure fund board consists of:
372-9 (1) three members appointed by the governor;
372-10 (2) three members appointed by the governor from a
372-11 list of individuals provided by the speaker of the house of
372-12 representatives; and
372-13 (3) three members appointed by the lieutenant
372-14 governor.
372-15 (b) The governor shall designate the presiding officer of
372-16 the board.
372-17 (c) The governor and the lieutenant governor, in making
372-18 appointments to the board, and the speaker of the house of
372-19 representatives, in compiling a list of recommended persons, shall
372-20 attempt to select members who are representative of, but not
372-21 limited to:
372-22 (1) urban and rural school districts;
372-23 (2) institutions of higher education;
372-24 (3) libraries; and
372-25 (4) the public.
373-1 (d) A person may not serve on the board if the person is
373-2 required to register as a lobbyist under Chapter 305, Government
373-3 Code, because of the person's activities for compensation on behalf
373-4 of a profession related to the operation of the board.
373-5 (e) Members of the board:
373-6 (1) serve without pay; and
373-7 (2) are entitled to reimbursement for their actual
373-8 expenses incurred in attending meetings of the board or attending
373-9 to other work of the board if approved by the presiding officer.
373-10 (f) Members of the board serve for staggered, six-year
373-11 terms, with three members' terms expiring on August 31 of each
373-12 odd-numbered year. (V.A.C.S. Art. 1446c-0, Secs. 3.606(c) (part),
373-13 (d), (e).)
373-14 Sec. 57.045. POWERS AND DUTIES OF BOARD. (a) The board
373-15 shall administer the fund and the two accounts in the fund.
373-16 (b) The board shall prepare an annual report that:
373-17 (1) details the revenues deposited to the credit of
373-18 the fund, including each account; and
373-19 (2) summarizes the grants and loans made from each
373-20 account.
373-21 (c) Not later than January 15 of each year, the board shall
373-22 submit the report for the preceding year to the governor and to
373-23 each standing committee in the senate and house of representatives
373-24 that has jurisdiction over public or higher education.
373-25 (d) The board may:
374-1 (1) enter into contracts with state agencies or
374-2 private entities necessary to perform the board's duties;
374-3 (2) employ personnel reasonably necessary to perform
374-4 duties delegated by the board;
374-5 (3) appoint one or more committees to assist the board
374-6 in performing the board's duties; and
374-7 (4) accept a gift or grant and use it for the purposes
374-8 of this subchapter. (V.A.C.S. Art. 1446c-0, Secs. 3.606(c) (part),
374-9 (g), (h), (i), (p).)
374-10 Sec. 57.046. USE OF ACCOUNTS. (a) The board shall use
374-11 money in the telecommunications utilities account to award grants
374-12 and loans in accordance with this subchapter to fund:
374-13 (1) purchases of equipment for public schools,
374-14 including computers, printers, computer labs, and video equipment;
374-15 and
374-16 (2) intracampus and intercampus wiring to enable those
374-17 public schools to use the equipment.
374-18 (b) The board shall use money in the commercial mobile
374-19 service providers account for any purpose authorized by this
374-20 subchapter, including:
374-21 (1) equipment purchases;
374-22 (2) wiring;
374-23 (3) material;
374-24 (4) program development;
374-25 (5) training;
375-1 (6) installation costs; and
375-2 (7) a statewide telecommunications network. (V.A.C.S.
375-3 Art. 1446c-0, Sec. 3.606(q).)
375-4 Sec. 57.047. GRANT AND LOAN PROGRAM. (a) The board may
375-5 award a grant to a project or proposal that:
375-6 (1) provides equipment and infrastructure necessary
375-7 for:
375-8 (A) distance learning;
375-9 (B) an information sharing program of a library;
375-10 or
375-11 (C) telemedicine services;
375-12 (2) develops and implements the initial or
375-13 prototypical delivery of a course or other distance learning
375-14 material;
375-15 (3) trains teachers, faculty, librarians, or
375-16 technicians in the use of distance learning or information sharing
375-17 materials and equipment;
375-18 (4) develops a curriculum or instructional material
375-19 specially suited for telecommunications delivery;
375-20 (5) provides electronic information; or
375-21 (6) establishes or carries out an information sharing
375-22 program.
375-23 (b) The board may award a loan to a project or proposal to
375-24 acquire equipment needed for distance learning and telemedicine
375-25 projects.
376-1 (c) In awarding a grant or loan under this subchapter, the
376-2 board shall give priority to a project or proposal that:
376-3 (1) represents collaborative efforts involving more
376-4 than one school, university, or library;
376-5 (2) contributes matching funds from another source;
376-6 (3) shows promise of becoming self-sustaining;
376-7 (4) helps users of information learn new ways to
376-8 acquire and use information through telecommunications;
376-9 (5) extends specific educational information and
376-10 knowledge services to a group not previously served, especially a
376-11 group in a rural or remote area;
376-12 (6) results in more efficient or effective learning
376-13 than through conventional teaching;
376-14 (7) improves the effectiveness and efficiency of
376-15 health care delivery; or
376-16 (8) takes advantage of distance learning opportunities
376-17 in a rural or urban school district with a:
376-18 (A) disproportionate number of at-risk youths;
376-19 or
376-20 (B) high dropout rate.
376-21 (d) In distributing money to public schools, the board
376-22 shall:
376-23 (1) consider the relative property wealth per student
376-24 of the school districts that receive the money; and
376-25 (2) recognize the unique needs of rural communities.
377-1 (e) A grant or loan awarded under this section is subject to
377-2 the limitations prescribed by Section 57.046. (V.A.C.S.
377-3 Art. 1446c-0, Secs. 3.606(r), (s), (t), (v).)
377-4 Sec. 57.048. ASSESSMENTS AND COLLECTIONS. (a) For each
377-5 fiscal year beginning before September 1, 2005, the comptroller
377-6 shall assess and collect an annual total of $75 million from
377-7 telecommunications utilities and an annual total of $75 million
377-8 from commercial mobile service providers.
377-9 (b) The comptroller shall assess and collect the money each
377-10 year without respect to whether the money previously collected and
377-11 deposited in either account has been disbursed or spent.
377-12 (c) The comptroller may require a telecommunications utility
377-13 or commercial mobile service provider to provide any report or
377-14 information necessary to fulfill the comptroller's duties under
377-15 this section. Information provided to the comptroller under this
377-16 section is confidential and exempt from disclosure under Chapter
377-17 552, Government Code.
377-18 (d) Money collected by the comptroller from a
377-19 telecommunications utility under this section shall be deposited to
377-20 the credit of the telecommunications utilities account in the fund.
377-21 (e) Money collected by the comptroller from a commercial
377-22 mobile service provider under this section shall be deposited to
377-23 the credit of the commercial mobile service providers account in
377-24 the fund. (V.A.C.S. Art. 1446c-0, Secs. 3.606(l), (m), (n)
377-25 (part).)
378-1 Sec. 57.049. ISSUANCE OF WARRANTS. From money appropriated
378-2 to the board, the comptroller shall issue warrants the board
378-3 requests in accordance with the purposes of this subchapter,
378-4 including warrants to grantees of the board in amounts the board
378-5 certifies to the comptroller. (V.A.C.S. Art. 1446c-0, Sec.
378-6 3.606(o).)
378-7 Sec. 57.050. ASSISTANCE OF OTHER AGENCIES. The following
378-8 agencies, in consultation with the board, shall adopt policies and
378-9 procedures that are designed to aid the board in achieving the
378-10 purposes of this subchapter:
378-11 (1) the Texas Higher Education Coordinating Board;
378-12 (2) the Texas Education Agency; and
378-13 (3) the Texas State Library and Archives Commission.
378-14 (V.A.C.S. Art. 1446c-0, Sec. 3.606(u).)
378-15 Sec. 57.051. SUNSET PROVISION. The board is subject to
378-16 Chapter 325, Government Code (Texas Sunset Act). Unless continued
378-17 in existence as provided by that chapter, the board is abolished
378-18 and this subchapter expires September 1, 2006. (V.A.C.S.
378-19 Art. 1446c-0, Sec. 3.606(f) (part).)
378-20 (Sections 57.052-57.070 reserved for expansion)
378-21 SUBCHAPTER D. INTERACTIVE MULTIMEDIA COMMUNICATIONS
378-22 Sec. 57.071. DEFINITION. In this subchapter, "interactive
378-23 multimedia communications" means real-time, two-way, interactive
378-24 voice, video, and data communications conducted over networks that
378-25 link geographically dispersed locations. (V.A.C.S. Art. 1446c-0,
379-1 Sec. 3.609(b).)
379-2 Sec. 57.072. RATES FOR INTERACTIVE MULTIMEDIA
379-3 COMMUNICATIONS. (a) The commission shall permit a local exchange
379-4 company that provides an interactive multimedia communications
379-5 service to establish, using sound ratemaking principles, rates
379-6 necessary to recover costs associated with providing the service.
379-7 (b) A local exchange company may not establish a rate under
379-8 Subsection (a) that is less than the local exchange company's long
379-9 run incremental costs of providing the interactive multimedia
379-10 communications service, unless the commission determines it to be
379-11 in the public interest to do so. (V.A.C.S. Art. 1446c-0, Sec.
379-12 3.609(a).)
379-13 CHAPTER 58. INCENTIVE REGULATION
379-14 SUBCHAPTER A. GENERAL PROVISIONS
379-15 Sec. 58.001. POLICY
379-16 Sec. 58.002. DEFINITION
379-17 (Sections 58.003-58.020 reserved for expansion)
379-18 SUBCHAPTER B. ELECTION OF INCENTIVE REGULATION
379-19 Sec. 58.021. ELECTION
379-20 Sec. 58.022. CHAPTER CONTROLS
379-21 Sec. 58.023. SERVICE CLASSIFICATION
379-22 Sec. 58.024. SERVICE RECLASSIFICATION
379-23 Sec. 58.025. COMPLAINT OR HEARING
379-24 Sec. 58.026. CONSUMER COMPLAINTS REGARDING TARIFFS
380-1 Sec. 58.027. CONSUMER COMPLAINTS REGARDING SERVICES;
380-2 ENFORCEMENT OF STANDARDS
380-3 Sec. 58.028. REVIEW AND REPORT OF EFFECTS OF ELECTION
380-4 (Sections 58.029-58.050 reserved for expansion)
380-5 SUBCHAPTER C. BASIC NETWORK SERVICES
380-6 Sec. 58.051. SERVICES INCLUDED
380-7 Sec. 58.052. REGULATION OF SERVICES
380-8 Sec. 58.053. INVESTMENT LIMITATION ON SERVICE STANDARDS
380-9 Sec. 58.054. RATES CAPPED
380-10 Sec. 58.055. RATE ADJUSTMENT BY COMPANY
380-11 Sec. 58.056. RATE ADJUSTMENT FOR CHANGES IN FCC SEPARATIONS
380-12 Sec. 58.057. RATE ADJUSTMENT FOR CERTAIN COMPANIES
380-13 Sec. 58.058. RATE GROUP RECLASSIFICATION
380-14 Sec. 58.059. COMMISSION RATE ADJUSTMENT PROCEDURE
380-15 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION
380-16 Sec. 58.061. EFFECT ON CERTAIN CHARGES
380-17 Sec. 58.062. SWITCHED ACCESS RATES
380-18 (Sections 58.063-58.100 reserved for expansion)
380-19 SUBCHAPTER D. DISCRETIONARY SERVICES
380-20 Sec. 58.101. SERVICE INCLUDED
380-21 Sec. 58.102. MAXIMUM PRICE
380-22 Sec. 58.103. PRICE FOR SERVICE
380-23 Sec. 58.104. USE OF CERTAIN REGULATORY TREATMENT
380-24 (Sections 58.105-58.150 reserved for expansion)
381-1 SUBCHAPTER E. COMPETITIVE SERVICES
381-2 Sec. 58.151. SERVICES INCLUDED
381-3 Sec. 58.152. PRICES
381-4 (Sections 58.153-58.200 reserved for expansion)
381-5 SUBCHAPTER F. GENERAL INFRASTRUCTURE COMMITMENT
381-6 Sec. 58.201. STATEMENT OF STATE GOAL
381-7 Sec. 58.202. POLICY GOALS FOR IMPLEMENTATION
381-8 Sec. 58.203. INFRASTRUCTURE GOALS OF ALL ELECTING COMPANIES
381-9 Sec. 58.204. ADDITIONAL INFRASTRUCTURE COMMITMENT OF CERTAIN
381-10 COMPANIES
381-11 Sec. 58.205. EXTENSION OR WAIVER OF INFRASTRUCTURE
381-12 REQUIREMENTS
381-13 Sec. 58.206. IMPLEMENTATION COSTS; INCREASE IN RATES AND
381-14 UNIVERSAL SERVICE FUNDS
381-15 (Sections 58.207-58.250 reserved for expansion)
381-16 SUBCHAPTER G. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
381-17 Sec. 58.251. INTENT AND GOAL OF SUBCHAPTER
381-18 Sec. 58.252. DEFINITIONS
381-19 Sec. 58.253. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES
381-20 Sec. 58.254. PRIORITIES
381-21 Sec. 58.255. CONTRACTS FOR PRIVATE NETWORK SERVICES
381-22 Sec. 58.256. PREFERRED RATE TREATMENT WARRANTED
381-23 Sec. 58.257. ELECTION OF RATE TREATMENT
381-24 Sec. 58.258. PRIVATE NETWORK SERVICES RATES AND TARIFFS
381-25 Sec. 58.259. TARIFF RATE FOR CERTAIN INTRALATA SERVICE
382-1 Sec. 58.260. POINT-TO-POINT 45 MEGABITS A SECOND INTRALATA
382-2 SERVICE
382-3 Sec. 58.261. BROADBAND DIGITAL SPECIAL ACCESS SERVICE
382-4 Sec. 58.262. EXPANDED INTERCONNECTION
382-5 Sec. 58.263. INTERNET ACCESS
382-6 Sec. 58.264. COMPLAINTS LIMITED
382-7 Sec. 58.265. INTERCONNECTION OF NETWORK SERVICES
382-8 Sec. 58.266. SHARING OR RESALE OF NETWORK SERVICES
382-9 Sec. 58.267. IMPLEMENTATION COSTS; INCREASE IN RATES AND
382-10 UNIVERSAL SERVICE FUNDS
382-11 CHAPTER 58. INCENTIVE REGULATION
382-12 SUBCHAPTER A. GENERAL PROVISIONS
382-13 Sec. 58.001. POLICY. Considering the status of competition
382-14 in the telecommunications industry, it is the policy of this state
382-15 to:
382-16 (1) provide a framework for an orderly transition from
382-17 the traditional regulation of return on invested capital to a fully
382-18 competitive telecommunications marketplace in which all
382-19 telecommunications providers compete on fair terms;
382-20 (2) preserve and enhance universal telecommunications
382-21 service at affordable rates;
382-22 (3) upgrade the telecommunications infrastructure of
382-23 this state;
382-24 (4) promote network interconnectivity; and
382-25 (5) promote diversity in the supply of
383-1 telecommunications services and innovative products and services
383-2 throughout the entire state, including urban and rural areas.
383-3 (V.A.C.S. Art. 1446c-0, Sec. 3.351.)
383-4 Sec. 58.002. DEFINITION. In this chapter, "electing
383-5 company" means an incumbent local exchange company that elects to
383-6 be subject to incentive regulation and to make the corresponding
383-7 infrastructure commitment under this chapter. (V.A.C.S.
383-8 Art. 1446c-0, Sec. 3.352(b)(1) (part).)
383-9 (Sections 58.003-58.020 reserved for expansion)
383-10 SUBCHAPTER B. ELECTION OF INCENTIVE REGULATION
383-11 Sec. 58.021. ELECTION. (a) An incumbent local exchange
383-12 company may elect to be subject to incentive regulation and to make
383-13 the corresponding infrastructure commitment under this chapter by
383-14 notifying the commission in writing of its election.
383-15 (b) The notice must include a statement that the company
383-16 agrees to:
383-17 (1) limit for four years any increase in a rate the
383-18 company charges for basic network services as prescribed by
383-19 Subchapter C; and
383-20 (2) fulfill the infrastructure commitment prescribed
383-21 by Subchapters F and G. (V.A.C.S. Art. 1446c-0, Sec. 3.352(a).)
383-22 Sec. 58.022. CHAPTER CONTROLS. This chapter governs the
383-23 regulation of an electing company's telecommunications services
383-24 regardless of whether the company is a dominant carrier. (V.A.C.S.
383-25 Art. 1446c-0, Sec. 3.352(c).)
384-1 Sec. 58.023. SERVICE CLASSIFICATION. On election, the
384-2 services provided by an electing company are classified into three
384-3 categories:
384-4 (1) basic network services governed by Subchapter C;
384-5 (2) discretionary services governed by Subchapter D;
384-6 and
384-7 (3) competitive services governed by Subchapter E.
384-8 (V.A.C.S. Art. 1446c-0, Sec. 3.352(b)(1).)
384-9 Sec. 58.024. SERVICE RECLASSIFICATION. (a) The commission
384-10 may reclassify a:
384-11 (1) basic network service as a discretionary or
384-12 competitive service; or
384-13 (2) discretionary service as a competitive service.
384-14 (b) The commission shall establish criteria for determining
384-15 whether a service should be reclassified. The criteria must
384-16 include consideration of the:
384-17 (1) availability of the service from other providers;
384-18 (2) proportion of the market that receives the
384-19 service;
384-20 (3) effect of the reclassification on service
384-21 subscribers; and
384-22 (4) nature of the service.
384-23 (c) The commission may not reclassify a service until each
384-24 competitive safeguard prescribed by Subchapters B-G, Chapter 60, is
384-25 fully implemented. (V.A.C.S. Art. 1446c-0, Secs. 3.352(b)(2),
385-1 3.355(c), 3.356(b), 3.357.)
385-2 Sec. 58.025. COMPLAINT OR HEARING. (a) An electing company
385-3 is not, under any circumstances, subject to a complaint, hearing,
385-4 or determination regarding the reasonableness of the company's:
385-5 (1) rates;
385-6 (2) overall revenues;
385-7 (3) return on invested capital; or
385-8 (4) net income.
385-9 (b) This section does not prohibit a complaint, hearing, or
385-10 determination on an electing company's implementation and
385-11 enforcement of a competitive safeguard required by Chapter 60.
385-12 (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
385-13 Sec. 58.026. CONSUMER COMPLAINTS REGARDING TARIFFS.
385-14 (a) This chapter does not restrict:
385-15 (1) a consumer's right to complain to the commission
385-16 about the application of an ambiguous tariff; or
385-17 (2) the commission's right to determine:
385-18 (A) the proper application of that tariff; or
385-19 (B) the proper rate if that tariff does not
385-20 apply.
385-21 (b) This section does not permit the commission to:
385-22 (1) lower a tariff rate except as specifically
385-23 provided by this title;
385-24 (2) change the commission's interpretation of a
385-25 tariff; or
386-1 (3) extend the application of a tariff to a new class
386-2 of customers. (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
386-3 Sec. 58.027. CONSUMER COMPLAINTS REGARDING SERVICES;
386-4 ENFORCEMENT OF STANDARDS. This chapter does not restrict:
386-5 (1) a consumer's right to complain to the commission
386-6 about quality of service; or
386-7 (2) the commission's right to enforce a quality of
386-8 service standard. (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
386-9 Sec. 58.028. REVIEW AND REPORT OF EFFECTS OF ELECTION.
386-10 (a) Not later than January 1, 2000, the commission shall begin a
386-11 review and evaluation of each company that elects under this
386-12 chapter or Chapter 59.
386-13 (b) The review must include an evaluation of the effects of
386-14 the election, including:
386-15 (1) consumer benefits;
386-16 (2) impact of competition;
386-17 (3) infrastructure investments; and
386-18 (4) quality of service.
386-19 (c) The commission shall file a report with the legislature
386-20 not later than January 1, 2001. The report must include the
386-21 commission's recommendations as to whether the incentive regulation
386-22 provided by this chapter and Chapter 59 should be extended,
386-23 modified, eliminated, or replaced with another form of regulation.
386-24 (d) This section expires September 1, 2001. (V.A.C.S.
386-25 Art. 1446c-0, Sec. 3.356(d) (part).)
387-1 (Sections 58.029-58.050 reserved for expansion)
387-2 SUBCHAPTER C. BASIC NETWORK SERVICES
387-3 Sec. 58.051. SERVICES INCLUDED. Unless reclassified under
387-4 Section 58.024, the following services are basic network services:
387-5 (1) flat rate residential and business local exchange
387-6 telephone service, including primary directory listings and the
387-7 receipt of a directory and any applicable mileage or zone charges;
387-8 (2) tone dialing service;
387-9 (3) lifeline and tel-assistance service;
387-10 (4) service connection for basic services;
387-11 (5) direct inward dialing service for basic services;
387-12 (6) private pay telephone access service;
387-13 (7) call trap and trace service;
387-14 (8) access to 911 service provided by a local
387-15 authority and access to dual party relay service;
387-16 (9) switched access service;
387-17 (10) interconnection to competitive providers;
387-18 (11) mandatory extended area service arrangements;
387-19 (12) mandatory extended metropolitan service or other
387-20 mandatory toll-free calling arrangements;
387-21 (13) interconnection for commercial mobile service
387-22 providers;
387-23 (14) directory assistance; and
387-24 (15) "1-plus" intraLATA message toll service.
387-25 (V.A.C.S. Art. 1446c-0, Sec. 3.353(a).)
388-1 Sec. 58.052. REGULATION OF SERVICES. (a) Except as
388-2 provided by Subchapter E, Chapter 52, basic network services of an
388-3 electing company are regulated:
388-4 (1) in accordance with this chapter; and
388-5 (2) to the extent not inconsistent with this chapter,
388-6 in accordance with:
388-7 (A) Subtitle A;
388-8 (B) Chapters 51, 54, 60, 62, and 63;
388-9 (C) Chapter 52, except for Subchapter F;
388-10 (D) Subchapters C, D, and E, Chapter 53;
388-11 (E) Chapter 55, except for:
388-12 (i) Subchapters F and G; and
388-13 (ii) Sections 55.001, 55.002, 55.003, and
388-14 55.004;
388-15 (F) Sections 53.001, 53.003, 53.004, 53.006,
388-16 53.065, 55.005, 55.006, 55.009, and 55.010; and
388-17 (G) commission rules and procedures.
388-18 (b) The commission must approve a change in the terms of the
388-19 tariff offering of a basic network service. (V.A.C.S.
388-20 Art. 1446c-0, Sec. 3.353(d).)
388-21 Sec. 58.053. INVESTMENT LIMITATION ON SERVICE STANDARDS.
388-22 (a) The commission may not raise a service standard applicable to
388-23 the provision of local exchange telephone service by an electing
388-24 company if the increased investment required to comply with the
388-25 raised standard in any year exceeds 10 percent of the company's
389-1 average annual intrastate additions in capital investment for the
389-2 most recent five-year period.
389-3 (b) In computing the average under Subsection (a), the
389-4 company shall exclude:
389-5 (1) extraordinary investments made during the
389-6 five-year period; and
389-7 (2) investments required by Section 58.203. (V.A.C.S.
389-8 Art. 1446c-0, Secs. 3.353(b) (part), 3.358(b) (part).)
389-9 Sec. 58.054. RATES CAPPED. (a) As a condition of election
389-10 under this chapter, an electing company shall commit to not
389-11 increasing a rate for a basic network service on or before the
389-12 fourth anniversary of its election date.
389-13 (b) The rates an electing company may charge on or before
389-14 that fourth anniversary are the rates charged by the company on
389-15 June 1, 1995, without regard to a proceeding pending under:
389-16 (1) Section 15.001;
389-17 (2) Subchapter D, Chapter 53; or
389-18 (3) Subchapter G, Chapter 2001, Government Code.
389-19 (V.A.C.S. Art. 1446c-0, Secs. 3.352(a) (part), 3.353(e) (part).)
389-20 Sec. 58.055. RATE ADJUSTMENT BY COMPANY. (a) An electing
389-21 company may increase a rate for a basic network service during the
389-22 four-year period prescribed by Section 58.054 only:
389-23 (1) with commission approval that the proposed change
389-24 is included in Section 58.056, 58.057, or 58.058; and
389-25 (2) as provided by Sections 58.056, 58.057, 58.058,
390-1 and 58.059.
390-2 (b) Notwithstanding Subchapter F, Chapter 60, an electing
390-3 company may, on its own initiative, decrease a rate for a basic
390-4 network service during the four-year period.
390-5 (c) The company may decrease the rate for switched access
390-6 service to an amount above the service's long run incremental cost.
390-7 (d) The company may decrease the rate for a basic local
390-8 telecommunications service other than switched access to an amount
390-9 above the service's appropriate cost. If the company has been
390-10 required to perform or has elected to perform a long run
390-11 incremental cost study, the appropriate cost for the service is the
390-12 service's long run incremental cost. (V.A.C.S. Art. 1446c-0, Secs.
390-13 3.353(b) (part), (c)(1).)
390-14 Sec. 58.056. RATE ADJUSTMENT FOR CHANGES IN FCC SEPARATIONS.
390-15 The commission, on motion of the electing company or on its own
390-16 motion, shall proportionally adjust rates for services to reflect
390-17 changes in Federal Communications Commission separations that
390-18 affect intrastate net income by at least 10 percent. (V.A.C.S.
390-19 Art. 1446c-0, Sec. 3.353(c)(2).)
390-20 Sec. 58.057. RATE ADJUSTMENT FOR CERTAIN COMPANIES. (a) An
390-21 electing company, after the 42nd month after the date the company
390-22 elects incentive regulation under this chapter, may file an
390-23 application for a commission review of the company's need for
390-24 changes in the rates of its services if the company:
390-25 (1) has fewer than five million access lines in this
391-1 state; and
391-2 (2) is complying with:
391-3 (A) the company's infrastructure commitment;
391-4 (B) each requirement relating to quality of
391-5 service; and
391-6 (C) each commission rule adopted under Chapter
391-7 60.
391-8 (b) The company's application may request that the
391-9 commission adjust rates, implement new pricing plans, restructure
391-10 rates, or rebalance revenues between services to recognize changed
391-11 market conditions and the effects of competitive entry.
391-12 (c) The commission may use an index and a productivity
391-13 offset in determining the requested changes.
391-14 (d) The commission may not:
391-15 (1) order an increase in the rate for residential
391-16 local exchange telephone service that would cause the rate to
391-17 increase by more than the United States Consumer Price Index in any
391-18 12-month period; or
391-19 (2) set the monthly rate for residential local
391-20 exchange telephone service in an amount that exceeds the nationwide
391-21 average rates for similar local exchange telephone services.
391-22 (V.A.C.S. Art. 1446c-0, Sec. 3.353(c)(3).)
391-23 Sec. 58.058. RATE GROUP RECLASSIFICATION. Notwithstanding
391-24 Subchapter B, the commission, on request of the electing company,
391-25 shall allow a rate group reclassification that results from access
392-1 line growth. (V.A.C.S. Art. 1446c-0, Sec. 3.353(c)(4).)
392-2 Sec. 58.059. COMMISSION RATE ADJUSTMENT PROCEDURE. (a) In
392-3 accordance with this section, an electing company may request and
392-4 the commission may authorize a rate adjustment under Section
392-5 58.056, 58.057, or 58.058.
392-6 (b) The electing company must provide to the commission
392-7 notice of its intent to adjust rates. The notice must be
392-8 accompanied by sufficient documentary evidence to demonstrate that
392-9 the rate adjustment is authorized under Section 58.056, 58.057, or
392-10 58.058. The commission by rule or order shall prescribe the
392-11 documentation required under this subsection.
392-12 (c) The electing company must also provide notice to its
392-13 customers after providing notice to the commission. The notice to
392-14 the customers must:
392-15 (1) within a reasonable period after notice to the
392-16 commission, be published once in a newspaper of general circulation
392-17 in the affected service area;
392-18 (2) be included in or printed on each affected
392-19 consumer's bill in the first billing that occurs after notice is
392-20 filed with the commission;
392-21 (3) have a title that includes the name of the company
392-22 and the words "NOTICE OF POSSIBLE RATE CHANGE"; and
392-23 (4) include:
392-24 (A) a statement that the consumer's rate may
392-25 change;
393-1 (B) an estimate of the amount of the annual
393-2 change for the typical residential, business, or access consumer if
393-3 the commission approves the rate change;
393-4 (C) a statement that a consumer who wants to
393-5 comment on the rate change or who wants additional information
393-6 regarding the rate change may call or write the commission and that
393-7 the information will be provided without cost to the consumer and
393-8 at the expense of the electing company; and
393-9 (D) the commission's telephone number and
393-10 address.
393-11 (d) The estimate of the amount of the annual change required
393-12 by Subsection (c)(4)(B) must be printed in a type style and size
393-13 that is distinct from and larger than the type style and size of
393-14 the body of the notice.
393-15 (e) The commission shall review the proposed rates to
393-16 determine if the rate adjustment is authorized under Section
393-17 58.056, 58.057, or 58.058.
393-18 (f) The rate adjustment takes effect on the 90th day after
393-19 the date the electing company completes the notice required by this
393-20 section unless the commission suspends the effective date under
393-21 Subsection (g).
393-22 (g) At any time before a rate adjustment is scheduled to
393-23 take effect, the commission, on its own motion or on complaint by
393-24 an affected party, may suspend the effective date of the rate
393-25 adjustment and conduct a hearing to review the proposed adjustment.
394-1 After the hearing, the commission may issue an order approving the
394-2 adjustment, or if it finds that the adjustment is not authorized
394-3 under Section 58.056, 58.057, or 58.058, issue an order modifying
394-4 or rejecting the adjustment. An order modifying or rejecting a
394-5 rate adjustment must specify:
394-6 (1) each reason why the proposed adjustment was not
394-7 authorized by Section 58.056, 58.057, or 58.058; and
394-8 (2) how the proposed adjustment may be changed so that
394-9 it is authorized.
394-10 (h) Except as provided by this section, a request for a
394-11 rate restructure must comply with the notice and hearing
394-12 requirements prescribed by Sections 53.101-53.106.
394-13 (i) An electing company that has not more than five percent
394-14 of the total access lines in this state may adopt as the cost for
394-15 a service the cost for the same or substantially similar service
394-16 offered by a larger incumbent local exchange company. The electing
394-17 company may adopt the larger company's cost only if the cost was
394-18 determined based on a long run incremental cost study. An electing
394-19 company that adopts a cost under this subsection is not required to
394-20 present its own long run incremental cost study to support the
394-21 adopted cost. (V.A.C.S. Art. 1446c-0, Sec. 3.354.)
394-22 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION. After
394-23 the four-year period prescribed by Section 58.054 expires, an
394-24 electing company may increase a rate for a basic network service
394-25 only:
395-1 (1) with commission approval subject to this title;
395-2 and
395-3 (2) to the extent consistent with achieving universal
395-4 affordable service. (V.A.C.S. Art. 1446c-0, Sec. 3.353(e) (part).)
395-5 Sec. 58.061. EFFECT ON CERTAIN CHARGES. This subchapter
395-6 does not affect a charge permitted under:
395-7 (1) Section 55.024;
395-8 (2) Subchapter C, Chapter 55; or
395-9 (3) Subchapter B, Chapter 56. (V.A.C.S. Art. 1446c-0,
395-10 Sec. 3.353(b) (part).)
395-11 Sec. 58.062. SWITCHED ACCESS RATES. Notwithstanding any
395-12 other provision of this title, the commission may not reduce an
395-13 electing company's rates for switched access services before the
395-14 expiration of the cap on basic network services. (V.A.C.S.
395-15 Art. 1446c-0, Sec. 3.352(d) (part).)
395-16 (Sections 58.063-58.100 reserved for expansion)
395-17 SUBCHAPTER D. DISCRETIONARY SERVICES
395-18 Sec. 58.101. SERVICE INCLUDED. Unless reclassified under
395-19 Section 58.024, the following services are discretionary services:
395-20 (1) "1-plus" intraLATA message toll services, if
395-21 intraLATA equal access is available;
395-22 (2) 0+ and 0- operator services;
395-23 (3) call waiting, call forwarding, and custom calling
395-24 features that are not classified as a competitive service under
395-25 Section 58.151;
396-1 (4) call return, caller identification, and call
396-2 control options that are not classified as a competitive service
396-3 under Section 58.151;
396-4 (5) central office based PBX-type services;
396-5 (6) billing and collection services;
396-6 (7) integrated services digital network (ISDN)
396-7 services;
396-8 (8) new services; and
396-9 (9) each service or function:
396-10 (A) for which pricing flexibility has not been
396-11 granted in a particular geographic market; and
396-12 (B) that is not classified as a basic network
396-13 service under Section 58.051 or a competitive service under Section
396-14 58.151. (V.A.C.S. Art. 1446c-0, Secs. 3.355(a), (b).)
396-15 Sec. 58.102. MAXIMUM PRICE. (a) The commission shall set
396-16 the maximum price an electing company may charge for a
396-17 discretionary service.
396-18 (b) The initial maximum price for a service is the price in
396-19 effect on September 1, 1995, without regard to a proceeding pending
396-20 under:
396-21 (1) Section 15.001;
396-22 (2) Subchapter D, Chapter 53; or
396-23 (3) Subchapter G, Chapter 2001, Government Code.
396-24 (c) The commission may not increase the initial maximum
396-25 price until after the proceedings required by Chapter 60.
397-1 (d) After the proceedings required by Chapter 60, the
397-2 commission, on its own motion or on application by the electing
397-3 company, may change the initial maximum price. However, the
397-4 commission may not increase the price more than 10 percent
397-5 annually. (V.A.C.S. Art. 1446c-0, Sec. 3.355(d) (part).)
397-6 Sec. 58.103. PRICE FOR SERVICE. (a) An electing company
397-7 may set the price for a discretionary service at any price that is:
397-8 (1) above the service's long run incremental cost; and
397-9 (2) at or below the service's maximum price set under
397-10 Section 58.102.
397-11 (b) The electing company may change the price within the
397-12 limits prescribed by Subsection (a). A price change may include
397-13 the use of pricing flexibility.
397-14 (c) The electing company shall notify the commission of each
397-15 change. (V.A.C.S. Art. 1446c-0, Sec. 3.355(d) (part).)
397-16 Sec. 58.104. USE OF CERTAIN REGULATORY TREATMENT. The
397-17 classification of a service as a discretionary service does not
397-18 preclude an electing company from using a regulatory treatment
397-19 authorized by or under Subchapters A-D, Chapter 52. (V.A.C.S.
397-20 Art. 1446c-0, Sec. 3.355(d) (part).)
397-21 (Sections 58.105-58.150 reserved for expansion)
397-22 SUBCHAPTER E. COMPETITIVE SERVICES
397-23 Sec. 58.151. SERVICES INCLUDED. The following services are
397-24 classified as competitive services:
397-25 (1) services described in the WATS tariff as the
398-1 tariff existed on January 1, 1995;
398-2 (2) 800 and foreign exchange services;
398-3 (3) private line service;
398-4 (4) special access service;
398-5 (5) services from public pay telephones;
398-6 (6) paging services and mobile services (IMTS);
398-7 (7) 911 premises equipment;
398-8 (8) speed dialing; and
398-9 (9) three-way calling. (V.A.C.S. Art. 1446c-0, Sec.
398-10 3.356(a) (part).)
398-11 Sec. 58.152. PRICES. (a) An electing company may set the
398-12 price for a competitive service at any level above the service's
398-13 long run incremental cost in accordance with the imputation rules
398-14 prescribed by or under Subchapter D, Chapter 60.
398-15 (b) Subject to the requirements of Sections 60.001 and
398-16 60.002, the company may use pricing flexibility for a competitive
398-17 service.
398-18 (c) Notwithstanding Subsection (a) or (b), the company may
398-19 not increase the price of a competitive service in a geographic
398-20 area in which that service or a functionally equivalent service is
398-21 not readily available from another provider. (V.A.C.S.
398-22 Art. 1446c-0, Secs. 3.356(a) (part), (c) (part).)
398-23 (Sections 58.153-58.200 reserved for expansion)
398-24 SUBCHAPTER F. GENERAL INFRASTRUCTURE COMMITMENT
398-25 Sec. 58.201. STATEMENT OF STATE GOAL. (a) It is the goal
399-1 of this state to facilitate and promote the deployment of an
399-2 advanced telecommunications infrastructure to spur economic
399-3 development throughout this state. This state should be among the
399-4 leaders in achieving this objective.
399-5 (b) The primary means of achieving this goal is through
399-6 encouraging private investment in this state's telecommunications
399-7 infrastructure by creating incentives for that investment and
399-8 promoting the development of competition.
399-9 (c) The best way to bring the benefits of an advanced
399-10 telecommunications network infrastructure to communities in this
399-11 state is through innovation and competition among all the state's
399-12 communications providers. Competition will provide residents of
399-13 this state with a choice of telecommunications providers and will
399-14 drive technology deployment, innovation, service quality, and
399-15 cost-based prices as competing firms try to satisfy customer needs.
399-16 (V.A.C.S. Art. 1446c-0, Sec. 3.358(a).)
399-17 Sec. 58.202. POLICY GOALS FOR IMPLEMENTATION. In
399-18 implementing this subchapter, the commission shall consider this
399-19 state's policy goals to:
399-20 (1) ensure the availability of the widest possible
399-21 range of competitive choices in the provision of telecommunications
399-22 services and facilities;
399-23 (2) foster competition and rely on market forces where
399-24 competition exists to determine the price, terms, and availability
399-25 of service;
400-1 (3) ensure the universal availability of basic local
400-2 telecommunications services at reasonable rates;
400-3 (4) encourage the continued development and deployment
400-4 of advanced and reliable capabilities and services in
400-5 telecommunications networks;
400-6 (5) ensure interconnection and interoperability, based
400-7 on uniform technical standards, among telecommunications carriers;
400-8 (6) eliminate unnecessary administrative procedures
400-9 that impose regulatory barriers to competition and ensure that
400-10 competitive entry is fostered on an economically rational basis;
400-11 (7) ensure consumer protection and protection against
400-12 anticompetitive conduct;
400-13 (8) regulate a provider of services only to the extent
400-14 the provider has market power to control the price of services to
400-15 customers;
400-16 (9) encourage cost-based pricing of telecommunications
400-17 services so that consumers pay a fair price for services they use;
400-18 and
400-19 (10) subject to Subchapter C, develop appropriate
400-20 quality of service standards for local exchange companies so as to
400-21 place this state among the leaders in deployment of an advanced
400-22 telecommunications infrastructure. (V.A.C.S. Art. 1446c-0,
400-23 Sec. 3.358(b) (part).)
400-24 Sec. 58.203. INFRASTRUCTURE GOALS OF ALL ELECTING COMPANIES.
400-25 (a) Recognizing that it will take time for competition to develop
401-1 in the local exchange market, the commission shall, in the absence
401-2 of competition, ensure that each electing company achieves the
401-3 infrastructure goals described by this section.
401-4 (b) Not later than December 31, 1996, an electing company
401-5 shall make available to each customer in the company's territory
401-6 access to end-to-end digital connectivity.
401-7 (c) Each new central office switch installed for an electing
401-8 company after September 1, 1995, must be digital or technically
401-9 equal to or superior to digital. In addition, a switch installed
401-10 after September 1, 1997, must, at a minimum, be capable of
401-11 providing integrated services digital network (ISDN) services in a
401-12 manner consistent with generally accepted national standards.
401-13 (d) Not later than January 1, 2000, 50 percent of the local
401-14 exchange access lines in each electing company's territory must be
401-15 served by a digital central office switch.
401-16 (e) Not later than January 1, 2000, an electing company's
401-17 public switched network backbone interoffice facilities must employ
401-18 broadband facilities capable of 45 or more megabits a second. The
401-19 company may employ facilities at a lower bandwidth if technology
401-20 permits the delivery of video signal at the lower bandwidth at a
401-21 quality level comparable to a television broadcast signal. The
401-22 requirements of this subsection do not apply to local loop
401-23 facilities. (V.A.C.S. Art. 1446c-0, Sec. 3.358(c).)
401-24 Sec. 58.204. ADDITIONAL INFRASTRUCTURE COMMITMENT OF CERTAIN
401-25 COMPANIES. (a) Not later than December 31, 1998, an electing
402-1 company serving more than one million but fewer than five million
402-2 access lines shall provide digital switching central offices in all
402-3 exchanges.
402-4 (b) Not later than January 1, 2000, an electing company
402-5 serving more than five million access lines shall:
402-6 (1) install Common Channel Signaling 7 capability in
402-7 each central office; and
402-8 (2) connect all of the company's serving central
402-9 offices to their respective LATA tandem central offices with
402-10 optical fiber or equivalent facilities. (V.A.C.S. Art. 1446c-0,
402-11 Sec. 3.358(d).)
402-12 Sec. 58.205. EXTENSION OR WAIVER OF INFRASTRUCTURE
402-13 REQUIREMENTS. (a) For an electing company that serves more than
402-14 one million but fewer than two million access lines, the commission
402-15 may temporarily extend a deadline prescribed by Section 58.203 if
402-16 the company demonstrates that the extension is in the public
402-17 interest.
402-18 (b) For an electing company that serves fewer than one
402-19 million access lines, the commission may waive a requirement
402-20 prescribed by Section 58.203 if the company demonstrates that the
402-21 investment is not viable economically.
402-22 (c) Before granting a waiver under Subsection (b), the
402-23 commission must consider the public benefits that would result from
402-24 compliance with the requirement. (V.A.C.S. Art. 1446c-0, Sec.
402-25 3.358(e).)
403-1 Sec. 58.206. IMPLEMENTATION COSTS; INCREASE IN RATES AND
403-2 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
403-3 of implementing Section 58.203 or 58.204 in determining whether an
403-4 electing company is entitled to:
403-5 (1) a rate increase under this chapter; or
403-6 (2) increased universal service funds under Subchapter
403-7 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.358(f).)
403-8 (Sections 58.207-58.250 reserved for expansion)
403-9 SUBCHAPTER G. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
403-10 Sec. 58.251. INTENT AND GOAL OF SUBCHAPTER. (a) It is the
403-11 intent of this subchapter to establish a telecommunications
403-12 infrastructure that interconnects the public entities described in
403-13 this subchapter. The interconnection of these entities requires
403-14 ubiquitous, broadband, digital services for voice, video, and data
403-15 in the local serving area. The ubiquitous nature of these
403-16 connections must allow individual networks of these entities to
403-17 interconnect and interoperate across the broadband digital service
403-18 infrastructure. The delivery of these advanced telecommunications
403-19 services requires collaborations and partnerships of public,
403-20 private, and commercial telecommunications service network
403-21 providers.
403-22 (b) The goal of this subchapter is to interconnect and
403-23 aggregate the connections to every entity described in this
403-24 subchapter, in the local serving area. It is further intended that
403-25 the infrastructure implemented under this subchapter connect each
404-1 entity that requests a service offered under this subchapter.
404-2 (V.A.C.S. Art. 1446c-0, Sec. 3.359(a).)
404-3 Sec. 58.252. DEFINITIONS. In this subchapter:
404-4 (1) "Educational institution" has the meaning assigned
404-5 by Section 57.021.
404-6 (2) "Library" has the meaning assigned by Section
404-7 57.042.
404-8 (3) "Private network services" means:
404-9 (A) broadband digital service that is capable of
404-10 providing transmission speeds of 45 megabits a second or greater
404-11 for customer applications; and
404-12 (B) other customized or packaged network
404-13 services.
404-14 (4) "Telemedicine center" means a facility that is
404-15 equipped to transmit, by video, data, or voice service, medical
404-16 information for the diagnosis or treatment of illness or disease
404-17 and that is:
404-18 (A) owned or operated by a public or
404-19 not-for-profit hospital, including an academic health center; or
404-20 (B) owned by one or more state-licensed health
404-21 care practitioners and operated on a nonprofit basis. (V.A.C.S.
404-22 Art. 1446c-0, Secs. 3.359(b)(1)(A) (part), (e).)
404-23 Sec. 58.253. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES.
404-24 (a) On customer request, an electing company shall provide private
404-25 network services to:
405-1 (1) an educational institution;
405-2 (2) a library;
405-3 (3) a nonprofit telemedicine center;
405-4 (4) a public or not-for-profit hospital;
405-5 (5) a project funded by the telecommunications
405-6 infrastructure fund under Subchapter C, Chapter 57; or
405-7 (6) a legally constituted consortium or group of
405-8 entities listed in this subsection.
405-9 (b) Except as provided by Section 58.266, the electing
405-10 company shall provide the private network services for the private
405-11 and sole use of the receiving entity. (V.A.C.S. Art. 1446c-0, Sec.
405-12 3.359(b)(1)(A) (part).)
405-13 Sec. 58.254. PRIORITIES. An electing company shall give
405-14 priority to serving:
405-15 (1) rural areas;
405-16 (2) areas designated as critically underserved either
405-17 medically or educationally; and
405-18 (3) educational institutions with high percentages of
405-19 economically disadvantaged students. (V.A.C.S. Art. 1446c-0, Sec.
405-20 3.359(b)(6).)
405-21 Sec. 58.255. CONTRACTS FOR PRIVATE NETWORK SERVICES.
405-22 (a) An electing company shall provide a private network service
405-23 under a customer specific contract.
405-24 (b) An electing company shall offer private network service
405-25 contracts under this subchapter at 105 percent of the long run
406-1 incremental cost of providing the private network service,
406-2 including installation.
406-3 (c) Each contract shall be filed with the commission.
406-4 Commission approval of a contract is not required.
406-5 (d) Subtitle D, Title 10, Government Code, does not apply to
406-6 a contract entered into under this subchapter. (V.A.C.S.
406-7 Art. 1446c-0, Secs. 3.359(b)(1)(B), (b)(1)(C), (f).)
406-8 Sec. 58.256. PREFERRED RATE TREATMENT WARRANTED. An entity
406-9 described by Section 58.253(a) warrants preferred rate treatment.
406-10 However, a rate charged for a service must cover the service's long
406-11 run incremental cost. (V.A.C.S. Art. 1446c-0, Sec.
406-12 3.359(b)(1)(H).)
406-13 Sec. 58.257. ELECTION OF RATE TREATMENT. An educational
406-14 institution or a library may elect the rate treatment provided by
406-15 this subchapter or the discount provided by Subchapter B, Chapter
406-16 57. (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(3).)
406-17 Sec. 58.258. PRIVATE NETWORK SERVICES RATES AND TARIFFS.
406-18 (a) Notwithstanding the pricing flexibility authorized by this
406-19 subtitle, an electing company's rates for private network services
406-20 may not be increased on or before the sixth anniversary of the
406-21 company's date of election. However, an electing company may
406-22 increase a rate in accordance with the provisions of a customer
406-23 specific contract.
406-24 (b) An electing company may not charge an entity described
406-25 by Section 58.253(a) a special construction or installation charge.
407-1 (V.A.C.S. Art. 1446c-0, Secs. 3.359(b)(2), (4).)
407-2 Sec. 58.259. TARIFF RATE FOR CERTAIN INTRALATA SERVICE.
407-3 (a) An electing company shall file a flat monthly tariff rate for
407-4 point-to-point intraLATA 1.544 megabits a second service for the
407-5 entities described by Section 58.253(a).
407-6 (b) The tariff rate may not be:
407-7 (1) distance sensitive; or
407-8 (2) higher than 105 percent of the service's statewide
407-9 average long run incremental cost, including installation.
407-10 (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(1)(D).)
407-11 Sec. 58.260. POINT-TO-POINT 45 MEGABITS A SECOND INTRALATA
407-12 SERVICE. (a) On request of an entity described by Section
407-13 58.253(a), an electing company shall provide to the entity
407-14 point-to-point 45 megabits a second intraLATA services.
407-15 (b) The service must be provided under a customer specific
407-16 contract except that any interoffice portion of the service must be
407-17 recovered on a statewide average basis that is not distance
407-18 sensitive.
407-19 (c) The rate for the service may not be higher than 105
407-20 percent of the service's long run incremental cost, including
407-21 installation. (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(1)(E).)
407-22 Sec. 58.261. BROADBAND DIGITAL SPECIAL ACCESS SERVICE.
407-23 (a) An electing company shall provide to an entity described by
407-24 Section 58.253(a) broadband digital special access service to
407-25 interexchange carriers.
408-1 (b) The rate for the service may not be higher than 105
408-2 percent of the service's long run incremental cost, including
408-3 installation. (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(1)(F).)
408-4 Sec. 58.262. EXPANDED INTERCONNECTION. (a) On request of
408-5 an entity described by Section 58.253(a), an electing company shall
408-6 provide to the entity expanded interconnection (virtual
408-7 colocation).
408-8 (b) The company shall provide expanded interconnection:
408-9 (1) in accordance with commission rules adopted under
408-10 Subchapter H, Chapter 60; and
408-11 (2) at 105 percent of long run incremental cost,
408-12 including installation.
408-13 (c) An entity described by Section 58.253(a) is not required
408-14 to qualify for expanded interconnection if expanded interconnection
408-15 is ordered by the commission. (V.A.C.S. Art. 1446c-0,
408-16 Sec. 3.359(b)(1)(G).)
408-17 Sec. 58.263. INTERNET ACCESS. (a) This section applies
408-18 only to an educational institution or library in an exchange of an
408-19 electing company serving more than five million access lines in
408-20 which toll-free access to the Internet is not available.
408-21 (b) On request of the educational institution or library,
408-22 the electing company shall make available a toll-free connection or
408-23 toll-free dialing arrangement that the institution or library may
408-24 use to obtain access to the Internet in an exchange in which
408-25 toll-free access to the Internet is available.
409-1 (c) The electing company shall provide the connection or
409-2 dialing arrangement at no charge to the educational institution or
409-3 library until Internet access becomes available in the exchange of
409-4 the requesting educational institution or library.
409-5 (d) The electing company is not required to arrange for
409-6 Internet access or to pay Internet charges for the requesting
409-7 educational institution or library. (V.A.C.S. Art. 1446c-0, Sec.
409-8 3.359(b)(5).)
409-9 Sec. 58.264. COMPLAINTS LIMITED. (a) Notwithstanding any
409-10 other provision of this title, an electing company is subject to a
409-11 complaint under this subchapter only by an entity described by
409-12 Section 58.253(a).
409-13 (b) An entity may only complain that the company provided a
409-14 private network service under this subchapter preferentially to a
409-15 similarly situated customer. (V.A.C.S. Art. 1446c-0, Sec.
409-16 3.359(b)(1)(I).)
409-17 Sec. 58.265. INTERCONNECTION OF NETWORK SERVICES. The
409-18 private network services provided under this subchapter may be
409-19 interconnected with other similar networks for distance learning,
409-20 telemedicine, and information-sharing purposes. (V.A.C.S.
409-21 Art. 1446c-0, Sec. 3.359(c).)
409-22 Sec. 58.266. SHARING OR RESALE OF NETWORK SERVICES. (a) A
409-23 private network service may be used by and shared among the
409-24 entities described by Section 58.253(a) but may not be otherwise
409-25 shared or resold to other customers.
410-1 (b) A service provided under this subchapter may not be
410-2 required to be resold to another customer at a rate provided by
410-3 this subchapter.
410-4 (c) This section does not prohibit an otherwise permitted
410-5 resale of another service that an electing company may offer
410-6 through the use of the same facilities used to provide a private
410-7 network service offered under this subchapter. (V.A.C.S.
410-8 Art. 1446c-0, Sec. 3.359(d).)
410-9 Sec. 58.267. IMPLEMENTATION COSTS; INCREASE IN RATES AND
410-10 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
410-11 of implementing this subchapter in determining whether an electing
410-12 company is entitled to:
410-13 (1) a rate increase under this chapter; or
410-14 (2) increased universal service funds under Subchapter
410-15 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.359(g).)
410-16 CHAPTER 59. INFRASTRUCTURE PLAN
410-17 SUBCHAPTER A. GENERAL PROVISIONS
410-18 Sec. 59.001. POLICY
410-19 Sec. 59.002. DEFINITIONS
410-20 (Sections 59.003-59.020 reserved for expansion)
410-21 SUBCHAPTER B. INFRASTRUCTURE INCENTIVES
410-22 Sec. 59.021. ELECTION
410-23 Sec. 59.022. WITHDRAWAL OF ELECTION
410-24 Sec. 59.023. ELECTION UNDER CHAPTER 58
410-25 Sec. 59.024. RATE CHANGES
411-1 Sec. 59.025. SWITCHED ACCESS RATES
411-2 Sec. 59.026. COMPLAINT OR HEARING
411-3 Sec. 59.027. CONSUMER COMPLAINTS REGARDING TARIFFS
411-4 Sec. 59.028. CONSUMER COMPLAINTS REGARDING SERVICES; ENFORCEMENT
411-5 OF STANDARDS
411-6 Sec. 59.029. INVESTMENT LIMITATION ON SERVICE STANDARDS
411-7 (Sections 59.030-59.050 reserved for expansion)
411-8 SUBCHAPTER C. INFRASTRUCTURE COMMITMENT AND GOALS
411-9 Sec. 59.051. INFRASTRUCTURE COMMITMENT
411-10 Sec. 59.052. INFRASTRUCTURE GOALS
411-11 Sec. 59.053. WAIVER OF INFRASTRUCTURE REQUIREMENTS
411-12 Sec. 59.054. PROGRESS REPORT
411-13 Sec. 59.055. IMPLEMENTATION COSTS; INCREASE IN RATES AND
411-14 UNIVERSAL SERVICE FUNDS
411-15 (Sections 59.056-59.070 reserved for expansion)
411-16 SUBCHAPTER D. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
411-17 Sec. 59.071. DEFINITIONS
411-18 Sec. 59.072. PRIVATE NETWORK SERVICES FOR CERTAIN
411-19 ENTITIES
411-20 Sec. 59.073. INVESTMENT PRIORITIES
411-21 Sec. 59.074. CONTRACTS FOR PRIVATE NETWORK SERVICES
411-22 Sec. 59.075. PREFERRED RATE TREATMENT WARRANTED
411-23 Sec. 59.076. ELECTION OF RATE TREATMENT
411-24 Sec. 59.077. PRIVATE NETWORK SERVICES RATES AND TARIFFS
411-25 Sec. 59.078. PRIVATE LINE OR SPECIAL ACCESS RATES
412-1 Sec. 59.079. COMPLAINTS LIMITED
412-2 Sec. 59.080. INTERCONNECTION OF NETWORK SERVICES
412-3 Sec. 59.081. SHARING OR RESALE OF NETWORK SERVICES
412-4 Sec. 59.082. IMPLEMENTATION COSTS; INCREASE IN RATES AND
412-5 UNIVERSAL SERVICE FUNDS
412-6 CHAPTER 59. INFRASTRUCTURE PLAN
412-7 SUBCHAPTER A. GENERAL PROVISIONS
412-8 Sec. 59.001. POLICY. It is the policy of this state that an
412-9 incumbent local exchange company that does not elect to be
412-10 regulated under Chapter 58 should have incentives to deploy
412-11 infrastructure that will benefit the residents of this state while
412-12 maintaining reasonable local rates and universal service.
412-13 (V.A.C.S. Art. 1446c-0, Sec. 3.401.)
412-14 Sec. 59.002. DEFINITIONS. In this chapter:
412-15 (1) "Electing company" means an incumbent local
412-16 exchange company that elects for an infrastructure commitment and
412-17 corresponding regulation under this chapter.
412-18 (2) "Election date" means the date on which the
412-19 commission receives notice of election under Subchapter B.
412-20 (V.A.C.S. Art. 1446c-0, Sec. 3.402(h); New.)
412-21 (Sections 59.003-59.020 reserved for expansion)
412-22 SUBCHAPTER B. INFRASTRUCTURE INCENTIVES
412-23 Sec. 59.021. ELECTION. (a) An incumbent local exchange
412-24 company may elect to make an infrastructure commitment and to be
412-25 subject to corresponding regulation under this chapter if the
413-1 company:
413-2 (1) serves less than five percent of the access lines
413-3 in this state; and
413-4 (2) has not elected incentive regulation under Chapter
413-5 58.
413-6 (b) A company makes the election by notifying the commission
413-7 in writing of the company's election. (V.A.C.S. Art. 1446c-0, Sec.
413-8 3.402(a).)
413-9 Sec. 59.022. WITHDRAWAL OF ELECTION. (a) The commission
413-10 may allow an electing company to withdraw the company's election
413-11 under this chapter:
413-12 (1) on application by the company; and
413-13 (2) only for good cause.
413-14 (b) In this section, "good cause" includes only matters
413-15 beyond the control of the company. (V.A.C.S. Art. 1446c-0, Sec.
413-16 3.402(e).)
413-17 Sec. 59.023. ELECTION UNDER CHAPTER 58. (a) This chapter
413-18 does not prohibit a company electing under this chapter from
413-19 electing incentive regulation under Chapter 58.
413-20 (b) If a company makes an election under Chapter 58, the
413-21 infrastructure commitment made under this chapter offsets the
413-22 infrastructure commitment required in connection with the Chapter
413-23 58 election. (V.A.C.S. Art. 1446c-0, Sec. 3.402(f).)
413-24 Sec. 59.024. RATE CHANGES. (a) Except for the charges
413-25 permitted under Subchapter C, Chapter 55, Subchapter B, Chapter 56,
414-1 and Section 55.024, an electing company may not, on or before the
414-2 sixth anniversary of its election date, increase a rate previously
414-3 established for that company under this title unless the commission
414-4 approves the proposed change as authorized under Subsection (c) or
414-5 (d).
414-6 (b) For purposes of Subsection (a), the company's previously
414-7 established rates are the rates charged by the company on its
414-8 election date without regard to a proceeding pending under:
414-9 (1) Section 15.001;
414-10 (2) Subchapter D, Chapter 53; or
414-11 (3) Subchapter G, Chapter 2001, Government Code.
414-12 (c) The commission, on motion of the electing company or on
414-13 its own motion, shall adjust prices for services to reflect changes
414-14 in Federal Communications Commission separations that affect
414-15 intrastate net income by at least 10 percent.
414-16 (d) The commission, on request of the electing company,
414-17 shall allow a rate group reclassification that results from access
414-18 line growth.
414-19 (e) Section 58.059 applies to a rate change under this
414-20 section. (V.A.C.S. Art. 1446c-0, Secs. 3.402(b), (c), (g) (part).)
414-21 Sec. 59.025. SWITCHED ACCESS RATES. Notwithstanding any
414-22 other provision of this title, the commission may not reduce an
414-23 electing company's rates for switched access services before the
414-24 expiration of the six-year period prescribed by Section 59.024.
414-25 (V.A.C.S. Art. 1446c-0, Sec. 3.402(g) (part).)
415-1 Sec. 59.026. COMPLAINT OR HEARING. (a) On or before the
415-2 sixth anniversary of the company's election date, an electing
415-3 company is not, under any circumstances, subject to:
415-4 (1) a complaint or hearing regarding the
415-5 reasonableness of the company's:
415-6 (A) rates;
415-7 (B) overall revenues;
415-8 (C) return on invested capital; or
415-9 (D) net income; or
415-10 (2) a complaint that a rate is excessive.
415-11 (b) Subsection (a) applies only to a company that is in
415-12 compliance with the company's infrastructure commitment under this
415-13 chapter.
415-14 (c) This section does not prohibit a complaint, hearing, or
415-15 determination on an electing company's implementation of a
415-16 competitive safeguard required by Chapter 60. (V.A.C.S.
415-17 Art. 1446c-0, Sec. 3.402(d) (part).)
415-18 Sec. 59.027. CONSUMER COMPLAINTS REGARDING TARIFFS.
415-19 (a) This chapter does not restrict:
415-20 (1) a consumer's right to complain to the commission
415-21 about the application of an ambiguous tariff; or
415-22 (2) the commission's right to determine:
415-23 (A) the proper application of that tariff; or
415-24 (B) the proper tariff rate if that tariff does
415-25 not apply.
416-1 (b) This section does not permit the commission to:
416-2 (1) lower a tariff rate except as specifically
416-3 provided by this title;
416-4 (2) change the commission's interpretation of a
416-5 tariff; or
416-6 (3) extend the application of a tariff to a new class
416-7 of customers. (V.A.C.S. Art. 1446c-0, Sec. 3.402(d) (part).)
416-8 Sec. 59.028. CONSUMER COMPLAINTS REGARDING SERVICES;
416-9 ENFORCEMENT OF STANDARDS. This chapter does not restrict:
416-10 (1) a consumer's right to complain to the commission
416-11 about quality of service; or
416-12 (2) the commission's right to enforce a quality of
416-13 service standard. (V.A.C.S. Art. 1446c-0, Sec. 3.402(d) (part).)
416-14 Sec. 59.029. INVESTMENT LIMITATION ON SERVICE STANDARDS.
416-15 (a) The commission may not raise a service standard applicable to
416-16 the provision of local exchange telephone service by an electing
416-17 company if the increased investment required to comply with the
416-18 raised standard in any year exceeds 10 percent of the company's
416-19 average annual intrastate additions in capital investment for the
416-20 most recent five-year period.
416-21 (b) In computing the average under Subsection (a), the
416-22 electing company shall exclude:
416-23 (1) extraordinary investments made during the
416-24 five-year period; and
416-25 (2) investments required by Section 59.052. (V.A.C.S.
417-1 Art. 1446c-0, Secs. 3.402(d) (part), 3.403(b)(6).)
417-2 (Sections 59.030-59.050 reserved for expansion)
417-3 SUBCHAPTER C. INFRASTRUCTURE COMMITMENT AND GOALS
417-4 Sec. 59.051. INFRASTRUCTURE COMMITMENT. (a) An electing
417-5 company shall commit to make in this state, during the six years
417-6 after the election date, the telecommunications infrastructure
417-7 investment prescribed by this chapter.
417-8 (b) The company shall make the commitment to the governor
417-9 and the commission in writing. (V.A.C.S. Art. 1446c-0, Sec.
417-10 3.403(a).)
417-11 Sec. 59.052. INFRASTRUCTURE GOALS. (a) The commission
417-12 shall ensure that each electing company achieves the infrastructure
417-13 goals described by this section.
417-14 (b) Each new central office switch installed for an electing
417-15 company in this state after September 1, 1995, must be digital.
417-16 (c) An electing company shall make available to each
417-17 customer in the company's territory access to end-to-end digital
417-18 connectivity. In this subsection, "make available" has the meaning
417-19 assigned by 16 T.A.C. Section 23.69.
417-20 (d) In each electing company's territory, 50 percent of the
417-21 local exchange access lines must be served by a digital central
417-22 office switch.
417-23 (e) An electing company's public switched network backbone
417-24 interoffice facilities must employ broadband facilities that serve
417-25 at least 50 percent of the local exchange access lines and are
418-1 capable of 45 or more megabits a second. The company may employ
418-2 facilities at a lower bandwidth if technology permits the delivery
418-3 of video signal at the lower bandwidth at a quality level
418-4 comparable to a television broadcast signal. The requirements of
418-5 this subsection do not apply to local loop facilities.
418-6 (f) An electing company shall install Common Channel
418-7 Signaling 7 capability in each access tandem office.
418-8 (g) The infrastructure goals specified by Subsections
418-9 (c)-(f) must be achieved not later than January 1, 2000. (V.A.C.S.
418-10 Art. 1446c-0, Secs. 3.403(b)(1), (2), (3), (4), (5).)
418-11 Sec. 59.053. WAIVER OF INFRASTRUCTURE REQUIREMENTS.
418-12 (a) For an electing company that serves fewer than one million
418-13 lines, the commission may waive a requirement prescribed by Section
418-14 59.052 if the company demonstrates that the investment is not
418-15 viable economically.
418-16 (b) Before granting a waiver under Subsection (a), the
418-17 commission must consider the public benefits that would result from
418-18 compliance with the requirement. (V.A.C.S. Art. 1446c-0, Sec.
418-19 3.403(d).)
418-20 Sec. 59.054. PROGRESS REPORT. (a) On each anniversary of
418-21 the company's election date, an electing company shall file with
418-22 the commission a report on the company's progress on its
418-23 infrastructure commitment.
418-24 (b) The report must include a statement of:
418-25 (1) the institutions requesting service under
419-1 Subchapter D;
419-2 (2) the institutions served under Subchapter D;
419-3 (3) the investments and expenses for the previous
419-4 period and the total investments and expenses for all periods; and
419-5 (4) other information the commission considers
419-6 necessary. (V.A.C.S. Art. 1446c-0, Sec. 3.403(g).)
419-7 Sec. 59.055. IMPLEMENTATION COSTS; INCREASE IN RATES AND
419-8 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
419-9 of implementing Section 59.052 in determining whether an electing
419-10 company is entitled to:
419-11 (1) a rate increase under this chapter; or
419-12 (2) increased universal service funds under Subchapter
419-13 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.403(e) (part).)
419-14 (Sections 59.056-59.070 reserved for expansion)
419-15 SUBCHAPTER D. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
419-16 Sec. 59.071. DEFINITIONS. In this subchapter:
419-17 (1) "Educational institution" has the meaning assigned
419-18 by Section 57.021.
419-19 (2) "Library" has the meaning assigned by Section
419-20 57.042.
419-21 (3) "Private network services" means
419-22 telecommunications services provided to an entity described by
419-23 Section 59.072(a), including broadband services, customized
419-24 services, and packaged network services.
419-25 (4) "Telemedicine center" means a facility that is
420-1 equipped to transmit, by video or data service, medical information
420-2 for the diagnosis or treatment of illness or disease and that is:
420-3 (A) owned or operated by a public or
420-4 not-for-profit hospital; or
420-5 (B) owned by a state-licensed health care
420-6 practitioner and operated on a nonprofit basis. (V.A.C.S.
420-7 Art. 1446c-0, Secs. 3.403(f)(1) (part), (2); New.)
420-8 Sec. 59.072. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES.
420-9 (a) On customer request, an electing company shall provide private
420-10 network services to:
420-11 (1) an educational institution;
420-12 (2) a library;
420-13 (3) a telemedicine center; or
420-14 (4) a legally constituted consortium or group of
420-15 entities listed in this subsection.
420-16 (b) Except as provided by Section 59.081, the electing
420-17 company shall provide the private network services for the private
420-18 and sole use of the receiving entity. However, the company may
420-19 provide the services with a facility that is used to provide
420-20 another service to another customer.
420-21 (c) The customers listed in Subsection (a) are a special
420-22 class of customers for purposes of the private network for distance
420-23 learning, telemedicine, and information-sharing purposes.
420-24 (V.A.C.S. Art. 1446c-0, Secs. 3.403(c)(1), (12), (f)(1) (part).)
420-25 Sec. 59.073. INVESTMENT PRIORITIES. An electing company
421-1 shall give investment priority to serving:
421-2 (1) rural areas;
421-3 (2) areas designated as critically underserved
421-4 medically or educationally; and
421-5 (3) educational institutions with high percentages of
421-6 economically disadvantaged students. (V.A.C.S. Art. 1446c-0, Sec.
421-7 3.403(c)(2).)
421-8 Sec. 59.074. CONTRACTS FOR PRIVATE NETWORK SERVICES.
421-9 (a) An electing company shall provide a private network service
421-10 under a customer-specific contract.
421-11 (b) An electing company shall offer private network service
421-12 contracts under this subchapter at 110 percent of the long run
421-13 incremental cost of providing the private network service,
421-14 including installation costs.
421-15 (c) Each contract shall be filed with the commission.
421-16 Commission approval of a contract is not required. (V.A.C.S.
421-17 Art. 1446c-0, Secs. 3.403(c)(3), (4), (5).)
421-18 Sec. 59.075. PREFERRED RATE TREATMENT WARRANTED. The
421-19 classes of customers described by Section 59.072(a) warrant
421-20 preferred rate treatment. However, a rate charged for a service
421-21 must cover the service's long run incremental cost. (V.A.C.S.
421-22 Art. 1446c-0, Sec. 3.403(c)(6).)
421-23 Sec. 59.076. ELECTION OF RATE TREATMENT. An educational
421-24 institution or a library may elect the rate treatment provided by
421-25 this subchapter or the discount provided by Subchapter B, Chapter
422-1 57. (V.A.C.S. Art. 1446c-0, Sec. 3.403(c)(9).)
422-2 Sec. 59.077. PRIVATE NETWORK SERVICES RATES AND TARIFFS.
422-3 (a) Notwithstanding the pricing flexibility authorized by this
422-4 subtitle, an electing company's rates for private network services
422-5 may not be increased on or before the sixth anniversary of the
422-6 company's election date.
422-7 (b) An electing company may not assess an entity described
422-8 by Section 59.072(a) a tariffed special construction or
422-9 installation charge unless the company and the entity agree on the
422-10 assessment. (V.A.C.S. Art. 1446c-0, Secs. 3.403(c)(8), (10).)
422-11 Sec. 59.078. PRIVATE LINE OR SPECIAL ACCESS RATES. (a) On
422-12 request by an educational institution or a library, an electing
422-13 company shall provide 1.544 megabits a second private line or
422-14 special access service at 110 percent of the service's long run
422-15 incremental cost, including installation costs.
422-16 (b) The rate provided by Subsection (a) is in lieu of the
422-17 discount provided by Subchapter B, Chapter 57. (V.A.C.S.
422-18 Art. 1446c-0, Sec. 3.403(c)(11).)
422-19 Sec. 59.079. COMPLAINTS LIMITED. Notwithstanding any other
422-20 provision of this title, an electing company is subject to a
422-21 complaint under Subchapter C or this subchapter only by an entity
422-22 described by Section 59.072(a). (V.A.C.S. Art. 1446c-0, Sec.
422-23 3.403(c)(7).)
422-24 Sec. 59.080. INTERCONNECTION OF NETWORK SERVICES. The
422-25 private network services provided under this subchapter may be
423-1 interconnected with other similar networks for distance learning,
423-2 telemedicine, and information-sharing purposes. (V.A.C.S.
423-3 Art. 1446c-0, Sec. 3.403(c)(13).)
423-4 Sec. 59.081. SHARING OR RESALE OF NETWORK SERVICES. (a) A
423-5 private network service may be used and shared among the entities
423-6 described by Section 59.072(a) but may not be otherwise shared or
423-7 resold to other customers.
423-8 (b) A service provided under this subchapter may not be
423-9 required to be resold to other customers at a rate provided by this
423-10 subchapter.
423-11 (c) This section does not prohibit an otherwise permitted
423-12 resale of another service that an electing company may offer
423-13 through the use of the same facilities used to provide a private
423-14 network service offered under this subchapter. (V.A.C.S.
423-15 Art. 1446c-0, Sec. 3.403(c)(14).)
423-16 Sec. 59.082. IMPLEMENTATION COSTS; INCREASE IN RATES AND
423-17 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
423-18 of implementing this subchapter in determining whether an electing
423-19 company is entitled to:
423-20 (1) a rate increase under this chapter; or
423-21 (2) increased universal service funds under Subchapter
423-22 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.403(e) (part).)
423-23 CHAPTER 60. COMPETITIVE SAFEGUARDS
423-24 SUBCHAPTER A. GENERAL PROVISIONS
423-25 Sec. 60.001. FAIR COMPETITION
424-1 Sec. 60.002. EXCLUSIVE JURISDICTION; ENFORCEMENT
424-2 Sec. 60.003. COMMISSION AUTHORITY
424-3 Sec. 60.004. APPLICABILITY TO CERTAIN SMALLER INCUMBENT LOCAL
424-4 EXCHANGE COMPANIES; RULES
424-5 Sec. 60.0041. APPLICABILITY TO CERTAIN SMALLER INCUMBENT LOCAL
424-6 EXCHANGE COMPANIES
424-7 Sec. 60.005. APPLICABILITY TO CERTAIN LARGER INCUMBENT LOCAL
424-8 EXCHANGE COMPANIES; RULES
424-9 Sec. 60.006. BULLETIN BOARD SYSTEMS UNAFFECTED
424-10 (Sections 60.007-60.020 reserved for expansion)
424-11 SUBCHAPTER B. UNBUNDLING
424-12 Sec. 60.021. MINIMUM UNBUNDLING REQUIREMENT
424-13 Sec. 60.022. COMMISSION UNBUNDLING ORDERS
424-14 Sec. 60.023. ASSIGNMENT OF UNBUNDLED COMPONENT TO CATEGORY
424-15 OF SERVICE
424-16 (Sections 60.024-60.040 reserved for expansion)
424-17 SUBCHAPTER C. RESALE
424-18 Sec. 60.041. LOOP RESALE TARIFF
424-19 Sec. 60.042. PROHIBITED RESALE OR SHARING
424-20 Sec. 60.043. RESALE OBLIGATION
424-21 Sec. 60.044. ELIMINATION OF RESALE PROHIBITIONS
424-22 Sec. 60.045. RESALE OR SHARING ARRANGEMENTS UNAFFECTED
424-23 (Sections 60.046-60.060 reserved for expansion)
424-24 SUBCHAPTER D. IMPUTATION
424-25 Sec. 60.061. RULES
425-1 Sec. 60.062. EXCEPTION FOR CAPPED PRICE
425-2 Sec. 60.063. IMPUTATION FOR SWITCHED ACCESS
425-3 Sec. 60.064. RECOVERY OF COST OF PROVIDING SERVICE
425-4 Sec. 60.065. WAIVERS
425-5 (Sections 60.066-60.080 reserved for expansion)
425-6 SUBCHAPTER E. TELECOMMUNICATIONS NUMBER PORTABILITY
425-7 Sec. 60.081. DEFINITION
425-8 Sec. 60.082. PORTABILITY GUIDELINES
425-9 Sec. 60.083. INTERIM RETENTION OF CONSUMER NUMBERS
425-10 Sec. 60.084. RATES FOR INTERIM PORTABILITY MEASURES
425-11 (Sections 60.085-60.100 reserved for expansion)
425-12 SUBCHAPTER F. PRICING
425-13 Sec. 60.101. PRICING RULE
425-14 Sec. 60.102. ADOPTION OF COST STUDIES BY CERTAIN COMPANIES
425-15 (Sections 60.103-60.120 reserved for expansion)
425-16 SUBCHAPTER G. INTERCONNECTION
425-17 Sec. 60.121. DEFINITION
425-18 Sec. 60.122. EXCLUSIVE JURISDICTION
425-19 Sec. 60.123. INAPPLICABILITY OF SUBCHAPTER
425-20 Sec. 60.124. INTEROPERABLE NETWORKS REQUIRED
425-21 Sec. 60.125. DETERMINATION OF INTERCONNECTION RATES
425-22 Sec. 60.126. INTERCONNECTIVITY NEGOTIATIONS; DISPUTE
425-23 RESOLUTION
425-24 Sec. 60.127. ADOPTION OF APPROVED INTERCONNECTION RATES
425-25 Sec. 60.128. USE OF RATES RESTRICTED
426-1 (Sections 60.129-60.140 reserved for expansion)
426-2 SUBCHAPTER H. EXPANDED INTERCONNECTION
426-3 Sec. 60.141. EXPANDED INTERCONNECTION RULES
426-4 (Sections 60.142-60.160 reserved for expansion)
426-5 SUBCHAPTER I. LOCAL EXCHANGE COMPANY REQUIREMENTS
426-6 Sec. 60.161. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS
426-7 Sec. 60.162. EXPANDED INTERCONNECTION
426-8 Sec. 60.163. INFRASTRUCTURE SHARING
426-9 CHAPTER 60. COMPETITIVE SAFEGUARDS
426-10 SUBCHAPTER A. GENERAL PROVISIONS
426-11 Sec. 60.001. FAIR COMPETITION. To the extent necessary to
426-12 ensure that competition in telecommunications is fair to each
426-13 participant and to accelerate the improvement of telecommunications
426-14 in this state, the commission shall ensure that the rates and rules
426-15 of an incumbent local exchange company:
426-16 (1) are not unreasonably preferential, prejudicial, or
426-17 discriminatory; and
426-18 (2) are applied equitably and consistently. (V.A.C.S.
426-19 Art. 1446c-0, Sec. 3.451(a).)
426-20 Sec. 60.002. EXCLUSIVE JURISDICTION; ENFORCEMENT. (a) The
426-21 commission has exclusive jurisdiction to implement competitive
426-22 safeguards.
426-23 (b) Section 58.025 does not prevent the commission from
426-24 enforcing this chapter. (V.A.C.S. Art. 1446c-0, Secs. 3.451(b),
426-25 (c).)
427-1 Sec. 60.003. COMMISSION AUTHORITY. (a) The commission may:
427-2 (1) establish procedures with respect to a policy
427-3 stated in this subchapter or Subchapters B-H; and
427-4 (2) resolve a dispute that arises under a policy
427-5 described by Subdivision (1).
427-6 (b) The commission shall adopt procedures for a proceeding
427-7 under Subchapters B and C. A procedure may:
427-8 (1) limit discovery; and
427-9 (2) for purposes of cross-examination align any party,
427-10 other than the office, with another party that has a similar
427-11 position.
427-12 (c) In adopting a procedure under this section and in
427-13 resolving a dispute, the commission shall consider the action's
427-14 effect on:
427-15 (1) consumers;
427-16 (2) competitors; and
427-17 (3) the incumbent local exchange company.
427-18 (d) The commission, by order or rule, may not implement a
427-19 requirement that is contrary to a federal law or rule. (V.A.C.S.
427-20 Art. 1446c-0, Sec. 3.460.)
427-21 Sec. 60.004. APPLICABILITY TO CERTAIN SMALLER INCUMBENT
427-22 LOCAL EXCHANGE COMPANIES; RULES. (a) Subchapters B, C, and H may
427-23 be applied to an incumbent local exchange company that serves fewer
427-24 than 31,000 access lines only on a bona fide request from a
427-25 certificated telecommunications utility.
428-1 (b) In applying the rules adopted under Subchapters B, C,
428-2 and H to a company described by Subsection (a), the commission may
428-3 modify the rules in the public interest.
428-4 (c) This section takes effect September 1, 1998. (V.A.C.S.
428-5 Art. 1446c-0, Sec. 3.461 (part).)
428-6 Sec. 60.0041. APPLICABILITY TO CERTAIN SMALLER INCUMBENT
428-7 LOCAL EXCHANGE COMPANIES. (a) Subchapters B, C, E, G, and H do
428-8 not apply to an incumbent local exchange company that serves fewer
428-9 than 31,000 access lines.
428-10 (b) This section expires September 1, 1998. (V.A.C.S.
428-11 Art. 1446c-0, Sec. 3.461 (part).)
428-12 Sec. 60.005. APPLICABILITY TO CERTAIN LARGER INCUMBENT LOCAL
428-13 EXCHANGE COMPANIES; RULES. (a) Subchapters B, D, and F may be
428-14 applied to an incumbent local exchange company that, as of
428-15 September 1, 1995, has 31,000 or more access lines in this state
428-16 but fewer than one million access lines in this state only on a
428-17 bona fide request from a holder of a certificate of operating
428-18 authority or a service provider certificate of operating authority.
428-19 (b) In applying the rules adopted under Subchapters B, D,
428-20 and F to a company described by Subsection (a), the commission may
428-21 modify the rules in the public interest. (V.A.C.S. Art. 1446c-0,
428-22 Sec. 3.462.)
428-23 Sec. 60.006. BULLETIN BOARD SYSTEMS UNAFFECTED. This
428-24 subtitle does not:
428-25 (1) require the commission to change the rate
429-1 treatment established by the commission in Docket No. 8387 for a
429-2 bulletin board system in a residence;
429-3 (2) regulate or tax a bulletin board system or
429-4 Internet service provider that provides only enhanced or
429-5 information services and that does not provide a telecommunications
429-6 service; or
429-7 (3) require a change in a rate charged to an entity
429-8 described by Subdivision (2) under a tariff in effect on September
429-9 1, 1995. (V.A.C.S. Art. 1446c-0, Sec. 3.459(c).)
429-10 (Sections 60.007-60.020 reserved for expansion)
429-11 SUBCHAPTER B. UNBUNDLING
429-12 Sec. 60.021. MINIMUM UNBUNDLING REQUIREMENT. At a minimum,
429-13 an incumbent local exchange company shall unbundle its network to
429-14 the extent the Federal Communications Commission orders. (V.A.C.S.
429-15 Art. 1446c-0, Sec. 3.452(a).)
429-16 Sec. 60.022. COMMISSION UNBUNDLING ORDERS. (a) The
429-17 commission may adopt an order relating to the issue of unbundling
429-18 of local exchange company services in addition to the unbundling
429-19 required by Section 60.021.
429-20 (b) Before ordering further unbundling, the commission must
429-21 consider the public interest and competitive merits of further
429-22 unbundling.
429-23 (c) On the request of a party, the commission shall proceed
429-24 by evidentiary hearing. If a request for a hearing is not made,
429-25 the commission may proceed by rulemaking. (V.A.C.S. Art. 1446c-0,
430-1 Secs. 3.452(b), (c).)
430-2 Sec. 60.023. ASSIGNMENT OF UNBUNDLED COMPONENT TO CATEGORY
430-3 OF SERVICE. The commission may assign an unbundled component to
430-4 the appropriate category of services under Chapter 58 according to
430-5 the purposes and intents of the categories. (V.A.C.S.
430-6 Art. 1446c-0, Sec. 3.452(d).)
430-7 (Sections 60.024-60.040 reserved for expansion)
430-8 SUBCHAPTER C. RESALE
430-9 Sec. 60.041. LOOP RESALE TARIFF. (a) An incumbent local
430-10 exchange company that on September 1, 1995, serves one million or
430-11 more access lines or that on or before September 1, 1995, elects
430-12 regulation under Chapter 58 shall file a usage sensitive loop
430-13 resale tariff.
430-14 (b) An incumbent local exchange company shall file a usage
430-15 sensitive loop resale tariff not later than the 60th day after the
430-16 date a certificate of operating authority or a service provider
430-17 certificate of operating authority is granted under Chapter 54 if
430-18 the company:
430-19 (1) serves fewer than one million access lines; and
430-20 (2) is not an electing company under Chapter 58.
430-21 (c) The commission shall conduct an appropriate proceeding
430-22 to determine the rates and terms of the resale tariff not later
430-23 than the 180th day after the date the tariff is filed.
430-24 (d) The commission may not approve a usage sensitive rate
430-25 unless the rate recovers:
431-1 (1) the total long run incremental cost of the loop on
431-2 an unseparated basis; and
431-3 (2) an appropriate contribution to joint and common
431-4 costs.
431-5 (e) Except as provided by Section 60.044, a person may not
431-6 purchase from the resale tariff unless the person is the holder of:
431-7 (1) a certificate of convenience and necessity;
431-8 (2) a certificate of operating authority; or
431-9 (3) a service provider certificate of operating
431-10 authority.
431-11 (f) In this section, "loop resale" means the purchase of the
431-12 local distribution channel or loop facility from the incumbent
431-13 local exchange company to resell to end user customers. (V.A.C.S.
431-14 Art. 1446c-0, Secs. 3.453(a), (b), (c).)
431-15 Sec. 60.042. PROHIBITED RESALE OR SHARING. A provider of
431-16 telecommunications service may not impose a restriction on the
431-17 resale or sharing of a service:
431-18 (1) for which the provider is not a dominant provider;
431-19 or
431-20 (2) entitled to regulatory treatment as a competitive
431-21 service under Subchapter E, Chapter 58, if the provider is a
431-22 company electing regulation under Chapter 58. (V.A.C.S.
431-23 Art. 1446c-0, Sec. 3.453(d).)
431-24 Sec. 60.043. RESALE OBLIGATION. A holder of a certificate
431-25 of operating authority or a service provider certificate of
432-1 operating authority shall permit a local exchange company to resell
432-2 the holder's loop facilities at the holder's regularly published
432-3 rates if the local exchange company:
432-4 (1) does not have loop facilities; and
432-5 (2) has a request for service. (V.A.C.S.
432-6 Art. 1446c-0, Sec. 3.453(e).)
432-7 Sec. 60.044. ELIMINATION OF RESALE PROHIBITIONS.
432-8 (a) Except as provided by Subsections (c) and (d), the commission
432-9 shall eliminate all resale prohibitions in the tariffs of an
432-10 electing company on the:
432-11 (1) completion of the commission's costing and pricing
432-12 rulemaking;
432-13 (2) completion of rate rebalancing of the incumbent
432-14 local exchange company rates under Subchapter F; and
432-15 (3) removal of all prohibitions on an incumbent local
432-16 exchange company's provision of interLATA services.
432-17 (b) Except as provided by Subsections (c) and (d), the
432-18 commission shall eliminate all resale prohibitions in the tariffs
432-19 of an electing company that has one million access lines or more on
432-20 removal of all prohibitions on the company's provision of interLATA
432-21 service.
432-22 (c) After the resale prohibitions are eliminated under this
432-23 section:
432-24 (1) the commission shall continue to prohibit the
432-25 resale of local exchange or directory assistance flat rate services
433-1 as a substitute for usage sensitive services; and
433-2 (2) residence service may not be resold to a business
433-3 customer.
433-4 (d) A service or function may be offered for resale only to
433-5 the same class of customer to which the incumbent local exchange
433-6 company sells the service if the commission finds that:
433-7 (1) as a result of the costing and pricing proceeding
433-8 the rate for the service or function will be less than the cost of
433-9 providing the service or function; and
433-10 (2) the difference in rate and cost will not be
433-11 recovered from the universal service fund. (V.A.C.S. Art. 1446c-0,
433-12 Sec. 3.453(f).)
433-13 Sec. 60.045. RESALE OR SHARING ARRANGEMENTS UNAFFECTED.
433-14 This subchapter does not change a resale or sharing arrangement
433-15 permitted in an incumbent local exchange company tariff that:
433-16 (1) existed on September 1, 1995; or
433-17 (2) was filed on or before May 1, 1995, by an
433-18 incumbent local exchange company that serves more than five million
433-19 access lines in this state. (V.A.C.S. Art. 1446c-0, Sec.
433-20 3.453(g).)
433-21 (Sections 60.046-60.060 reserved for expansion)
433-22 SUBCHAPTER D. IMPUTATION
433-23 Sec. 60.061. RULES. (a) The commission shall adopt rules
433-24 governing imputation of the price of a service.
433-25 (b) Imputation is a regulatory policy the commission shall
434-1 apply to prevent an incumbent local exchange company from selling a
434-2 service or function to another telecommunications utility at a
434-3 price that is higher than the rate the incumbent local exchange
434-4 company implicitly includes in services it provides to the
434-5 company's retail customers.
434-6 (c) The commission may require imputation only of the price
434-7 of a service that is:
434-8 (1) not generally available from a source other than
434-9 the incumbent local exchange company; and
434-10 (2) necessary for the competitor to provide a
434-11 competing service.
434-12 (d) The commission may require imputation only on a
434-13 service-by-service basis and may not require imputation on a
434-14 rate-element-by-element basis.
434-15 (e) For a service for which the commission may require
434-16 imputation under Subsection (c) and that is provided under a
434-17 customer specific contract, the commission:
434-18 (1) may require imputation only on a
434-19 service-by-service basis within the contract; and
434-20 (2) may not require imputation on a
434-21 rate-element-by-element basis. (V.A.C.S. Art. 1446c-0, Secs.
434-22 3.454(a), (b), (c), (f), (g).)
434-23 Sec. 60.062. EXCEPTION FOR CAPPED PRICE. The commission may
434-24 not require imputation of the price to a local exchange telephone
434-25 service while the price is capped under Chapter 58 or 59.
435-1 (V.A.C.S. Art. 1446c-0, Sec. 3.454(d).)
435-2 Sec. 60.063. IMPUTATION FOR SWITCHED ACCESS. The commission
435-3 shall impute the price of switched access service to the price of
435-4 each service for which switched access service is a component until
435-5 switched access service is competitively available. (V.A.C.S.
435-6 Art. 1446c-0, Sec. 3.454(e).)
435-7 Sec. 60.064. RECOVERY OF COST OF PROVIDING SERVICE. (a) An
435-8 incumbent local exchange company shall demonstrate that the price
435-9 it charges for retail service recovers the cost of providing the
435-10 service.
435-11 (b) For purposes of this section, the cost of providing the
435-12 service is the sum of:
435-13 (1) each specifically tariffed premium rate for each
435-14 noncompetitive service or service function, or each element of a
435-15 noncompetitive service or service function, or the functional
435-16 equivalent, that is used to provide the service;
435-17 (2) the total service long run incremental cost of the
435-18 competitive services or service functions that are used;
435-19 (3) each cost, not reflected in Subdivision (1) or
435-20 (2), that is specifically associated with providing the service or
435-21 group of services; and
435-22 (4) each cost or surcharge associated with an explicit
435-23 subsidy applied to all providers of the service to promote
435-24 universal service. (V.A.C.S. Art. 1446c-0, Sec. 3.454(h).)
435-25 Sec. 60.065. WAIVERS. If the commission determines that a
436-1 waiver is in the public interest, the commission may waive an
436-2 imputation requirement for a public interest service such as:
436-3 (1) 9-1-1 service; or
436-4 (2) dual party relay service. (V.A.C.S. Art. 1446c-0,
436-5 Sec. 3.454(i).)
436-6 (Sections 60.066-60.080 reserved for expansion)
436-7 SUBCHAPTER E. TELECOMMUNICATIONS NUMBER PORTABILITY
436-8 Sec. 60.081. DEFINITION. In this subchapter,
436-9 "telecommunications number portability" means the ability of a
436-10 telecommunications services user who is changing from one
436-11 telecommunications service provider to another provider to retain a
436-12 telephone number, to the extent technically feasible, without
436-13 impairing the quality, reliability, or convenience of service.
436-14 (V.A.C.S. Art. 1446c-0, Sec. 3.455(b).)
436-15 Sec. 60.082. PORTABILITY GUIDELINES. (a) Because a uniform
436-16 national number plan is valuable and necessary to this state, the
436-17 commission by rule shall adopt guidelines governing
436-18 telecommunications number portability and the assignment of
436-19 telephone numbers in a competitively neutral manner.
436-20 (b) The rules may not be inconsistent with the rules and
436-21 regulations of the Federal Communications Commission regarding
436-22 telecommunications number portability. (V.A.C.S. Art. 1446c-0,
436-23 Sec. 3.455(a).)
436-24 Sec. 60.083. INTERIM RETENTION OF CONSUMER NUMBERS. As an
436-25 interim measure, the commission shall adopt reasonable mechanisms,
437-1 including, at minimum, the use of call forwarding and direct inward
437-2 dialing, to allow consumers to retain their telephone numbers.
437-3 (V.A.C.S. Art. 1446c-0, Sec. 3.455(c) (part).)
437-4 Sec. 60.084. RATES FOR INTERIM PORTABILITY MEASURES.
437-5 (a) An incumbent local exchange company with one million or more
437-6 access lines shall file tariffs, and the commission shall determine
437-7 reasonable rates to be charged by the company for:
437-8 (1) call forwarding;
437-9 (2) direct inward dialing; and
437-10 (3) any other mechanism the commission determines
437-11 should be used as an interim telecommunications number portability
437-12 measure by a new entrant.
437-13 (b) An incumbent local exchange company with fewer than one
437-14 million access lines that serves an area in which a certificate of
437-15 operating authority or a service provider certificate of operating
437-16 authority has been granted shall, not later than the 60th day after
437-17 the date of a bona fide request, file tariffs in accordance with
437-18 Subsection (a).
437-19 (c) Not later than the 60th day after the date a company
437-20 files tariffs under Subsection (b), the commission shall determine
437-21 reasonable rates in accordance with Subsection (a). (V.A.C.S.
437-22 Art. 1446c-0, Sec. 3.455(c) (part).)
437-23 (Sections 60.085-60.100 reserved for expansion)
437-24 SUBCHAPTER F. PRICING
437-25 Sec. 60.101. PRICING RULE. (a) The commission shall adopt
438-1 a pricing rule.
438-2 (b) In adopting the pricing rule, the commission shall:
438-3 (1) ensure that each price for a monopoly service
438-4 remains affordable;
438-5 (2) ensure that each price for competitive service is
438-6 not:
438-7 (A) unreasonably preferential, prejudicial, or
438-8 discriminatory;
438-9 (B) directly or indirectly subsidized by a
438-10 noncompetitive service; or
438-11 (C) predatory or anticompetitive; and
438-12 (3) require that each service recover the appropriate
438-13 costs, including joint and common costs, of each facility and
438-14 function used to provide the service. (V.A.C.S. Art. 1446c-0,
438-15 Secs. 3.457(a)(1) (part), (b).)
438-16 Sec. 60.102. ADOPTION OF COST STUDIES BY CERTAIN COMPANIES.
438-17 The commission shall allow an incumbent local exchange company that
438-18 is not a Tier 1 local exchange company on September 1, 1995, to
438-19 adopt, at that company's option, the cost studies approved by the
438-20 commission for a Tier 1 local exchange company. (V.A.C.S.
438-21 Art. 1446c-0, Sec. 3.457(c).)
438-22 (Sections 60.103-60.120 reserved for expansion)
438-23 SUBCHAPTER G. INTERCONNECTION
438-24 Sec. 60.121. DEFINITION. In this subchapter,
438-25 "interconnection" means, for calls that originate and terminate in
439-1 this state, the termination of local intraexchange traffic of
439-2 another local exchange company or holder of a service provider
439-3 certificate of operating authority within the local calling area of
439-4 the terminating local exchange company or certificate holder.
439-5 (V.A.C.S. Art. 1446c-0, Sec. 3.458(a) (part).)
439-6 Sec. 60.122. EXCLUSIVE JURISDICTION. The commission has
439-7 exclusive jurisdiction to determine rates and terms for
439-8 interconnection for a holder of a certificate of convenience and
439-9 necessity, a certificate of operating authority, or a service
439-10 provider certificate of operating authority. (V.A.C.S.
439-11 Art. 1446c-0, Sec. 3.458(h).)
439-12 Sec. 60.123. INAPPLICABILITY OF SUBCHAPTER. This subchapter
439-13 does not apply to a rate for the existing termination of cellular
439-14 or interexchange traffic. (V.A.C.S. Art. 1446c-0, Sec. 3.458(a)
439-15 (part).)
439-16 Sec. 60.124. INTEROPERABLE NETWORKS REQUIRED. (a) The
439-17 commission shall require each telecommunications provider to
439-18 maintain interoperable networks.
439-19 (b) The commission may:
439-20 (1) adopt rules, including generic rules that are
439-21 responsive to changes in federal law or a development in the local
439-22 exchange market; and
439-23 (2) set policies governing interconnection
439-24 arrangements. (V.A.C.S. Art. 1446c-0, Secs. 3.458(b) (part), (f).)
439-25 Sec. 60.125. DETERMINATION OF INTERCONNECTION RATES.
440-1 (a) Telecommunications providers shall negotiate network
440-2 interconnectivity, charges, and terms.
440-3 (b) If interconnectivity, charges, and terms are
440-4 successfully negotiated, the commission shall approve the
440-5 interconnection rates.
440-6 (c) If telecommunications providers do not enter into a
440-7 mutually agreed compensation rate under this section, each provider
440-8 shall reciprocally terminate the other provider's traffic at no
440-9 charge for the first nine months after the date the first call is
440-10 terminated between the providers.
440-11 (d) During the nine-month period prescribed by Subsection
440-12 (c), the commission shall complete a proceeding to establish
440-13 reciprocal interconnection rates and terms. The commission shall
440-14 establish reciprocal interconnection rates and terms based solely
440-15 on the commission proceeding.
440-16 (e) In establishing the initial interconnection rate, the
440-17 commission may not require cost studies from the new entrant.
440-18 (f) On or after the third anniversary of the date the first
440-19 call is terminated between the providers, the commission, on
440-20 receipt of a complaint, may require cost studies by a new entrant
440-21 to establish interconnection rates. (V.A.C.S. Art. 1446c-0, Secs.
440-22 3.458(b) (part), (c), (d).)
440-23 Sec. 60.126. INTERCONNECTIVITY NEGOTIATIONS; DISPUTE
440-24 RESOLUTION. The commission may resolve a dispute filed by a party
440-25 to a negotiation under Section 60.125(a). (V.A.C.S. Art. 1446c-0,
441-1 Sec. 3.458(b) (part).)
441-2 Sec. 60.127. ADOPTION OF APPROVED INTERCONNECTION RATES.
441-3 (a) An incumbent local exchange company may adopt the
441-4 interconnection rates the commission approves for a larger
441-5 incumbent local exchange company without additional cost
441-6 justification.
441-7 (b) If an incumbent local exchange company does not adopt
441-8 the interconnection rates of a larger company or negotiates under
441-9 Section 60.125(a), the company is governed by Sections
441-10 60.125(c)-(f).
441-11 (c) If the incumbent local exchange company adopts the
441-12 interconnection rates of another incumbent local exchange company,
441-13 the new entrant may adopt those rates as the new entrant's
441-14 interconnection rates.
441-15 (d) If the incumbent local exchange company elects to file
441-16 its own tariff, the new entrant must also file its own
441-17 interconnection tariff. (V.A.C.S. Art. 1446c-0, Sec. 3.458(e).)
441-18 Sec. 60.128. USE OF RATES RESTRICTED. The commission may
441-19 not use interconnection rates under this subchapter as a basis to
441-20 alter interconnection rates for other services. (V.A.C.S.
441-21 Art. 1446c-0, Sec. 3.458(g).)
441-22 (Sections 60.129-60.140 reserved for expansion)
441-23 SUBCHAPTER H. EXPANDED INTERCONNECTION
441-24 Sec. 60.141. EXPANDED INTERCONNECTION RULES. The commission
441-25 shall adopt rules for expanded interconnection that:
442-1 (1) are consistent with the rules and regulations of
442-2 the Federal Communications Commission relating to expanded
442-3 interconnection;
442-4 (2) treat intrastate private line services as special
442-5 access service; and
442-6 (3) provide that if an incumbent local exchange
442-7 company is required to provide expanded interconnection to another
442-8 local exchange company, the second local exchange company shall in
442-9 a similar manner provide expanded interconnection to the first
442-10 company. (V.A.C.S. Art. 1446c-0, Sec. 3.456(a).)
442-11 (Sections 60.142-60.160 reserved for expansion)
442-12 SUBCHAPTER I. LOCAL EXCHANGE COMPANY REQUIREMENTS
442-13 Sec. 60.161. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS.
442-14 An incumbent local exchange company may not unreasonably:
442-15 (1) discriminate against another provider by refusing
442-16 access to the local exchange;
442-17 (2) refuse or delay an interconnection to another
442-18 provider;
442-19 (3) degrade the quality of access the company provides
442-20 to another provider;
442-21 (4) impair the speed, quality, or efficiency of a line
442-22 used by another provider;
442-23 (5) fail to fully disclose in a timely manner on
442-24 request all available information necessary to design equipment
442-25 that will meet the specifications of the local exchange network; or
443-1 (6) refuse or delay access by a person to another
443-2 provider. (V.A.C.S. Art. 1446c-0, Sec. 3.459(a).)
443-3 Sec. 60.162. EXPANDED INTERCONNECTION. This subchapter does
443-4 not require an incumbent local exchange company to provide expanded
443-5 interconnection as that term is defined by the Federal
443-6 Communications Commission. (V.A.C.S. Art. 1446c-0, Sec. 3.459(b).)
443-7 Sec. 60.163. INFRASTRUCTURE SHARING. (a) The commission
443-8 shall adopt rules that require a local exchange company to share
443-9 public switched network infrastructure and technology with a
443-10 requesting local exchange company that lacks economies of scale or
443-11 scope, to enable the requesting company to provide
443-12 telecommunications services in each geographic area for which the
443-13 requesting company is designated as the sole carrier of last
443-14 resort.
443-15 (b) The rules governing the sharing:
443-16 (1) may not require a local exchange company to make a
443-17 decision that is uneconomic or adverse to the public;
443-18 (2) shall permit, but may not require, joint ownership
443-19 and operation of public switched network infrastructure and
443-20 services by or among the local exchange companies that share
443-21 infrastructure; and
443-22 (3) shall establish conditions that promote
443-23 cooperation between local exchange companies. (V.A.C.S.
443-24 Art. 1446c-0, Sec. 3.463.)
444-1 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
444-2 SUBCHAPTER A. GENERAL PROVISIONS
444-3 Sec. 61.001. DEFINITIONS
444-4 (Sections 61.002-61.020 reserved for expansion)
444-5 SUBCHAPTER B. PROVISION OF INFORMATION TECHNOLOGY SERVICES
444-6 Sec. 61.021. PROVISION OF CERTAIN SERVICES OR PRODUCTS
444-7 PROHIBITED
444-8 Sec. 61.022. PERMISSIBLE SERVICES AND PRODUCTS
444-9 Sec. 61.023. SEPARATE AFFILIATE REQUIREMENTS
444-10 Sec. 61.024. ARM'S-LENGTH TRANSACTIONS
444-11 Sec. 61.025. CONTRACTS AND RECORDS
444-12 Sec. 61.026. JOINT OWNERSHIP OR USE PROHIBITED
444-13 (Sections 61.027-61.040 reserved for expansion)
444-14 SUBCHAPTER C. ADDITIONAL COMPETITIVE SAFEGUARDS
444-15 Sec. 61.041. PROHIBITED DISCRIMINATION
444-16 Sec. 61.042. SUBSIDIZATION OF SERVICES PROHIBITED
444-17 Sec. 61.043. PERMISSIBLE INVESTMENT
444-18 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
444-19 SUBCHAPTER A. GENERAL PROVISIONS
444-20 Sec. 61.001. DEFINITIONS. In this chapter:
444-21 (1) "Management consulting" means the development,
444-22 refinement, and coordination of a strategy to support a client's
444-23 business direction, positively affect business performance, and
444-24 improve an operating result, in a field such as business planning,
444-25 operations, information technology, marketing, finance, and human
445-1 resources.
445-2 (2) "Process management" means the ongoing
445-3 responsibility for direction and operation of a business process in
445-4 an enterprise in a field such as administration, finance, human
445-5 resources, operations, sales, or marketing.
445-6 (3) "Systems development" means the creation,
445-7 migration, or improvement of a computer system, including hardware
445-8 and software, to:
445-9 (A) meet a specific business need; or
445-10 (B) take advantage of a change in information
445-11 technology.
445-12 (4) "Systems integration" means the acquisition,
445-13 installation, and integration of hardware, software,
445-14 communications, and related support components or services.
445-15 (5) "Systems management" means the ongoing management
445-16 and operation of information technology components, ranging from
445-17 specialized system applications to an enterprise's entire
445-18 information technology function, including related facilities and
445-19 personnel. (V.A.C.S. Art. 1446c-0, Sec. 3.581.)
445-20 (Sections 61.002-61.020 reserved for expansion)
445-21 SUBCHAPTER B. PROVISION OF INFORMATION
445-22 TECHNOLOGY SERVICES
445-23 Sec. 61.021. PROVISION OF CERTAIN SERVICES OR PRODUCTS
445-24 PROHIBITED. (a) A local exchange company that serves more than
445-25 five million access lines in this state may not provide the
446-1 following customized business services or products to a customer
446-2 who has 50 or more access lines in this state:
446-3 (1) management consulting, except for consulting
446-4 related exclusively to telecommunications;
446-5 (2) information technology process or systems
446-6 development;
446-7 (3) information technology process or systems
446-8 integration; or
446-9 (4) information technology process or systems
446-10 management.
446-11 (b) This section does not apply to a service or product
446-12 provided on September 1, 1995. (V.A.C.S. Art. 1446c-0, Sec.
446-13 3.582(a).)
446-14 Sec. 61.022. PERMISSIBLE SERVICES AND PRODUCTS. Section
446-15 61.021 does not prohibit:
446-16 (1) an affiliate of the local exchange company from
446-17 providing a service or product described by that section in
446-18 accordance with this subchapter and Subchapter C; or
446-19 (2) a local exchange company from:
446-20 (A) providing a service or product described by
446-21 Section 61.021 to an affiliate if:
446-22 (i) the company is not providing a service
446-23 or product described by that section to a nonaffiliated third
446-24 party; and
446-25 (ii) there is not an affiliate of the
447-1 company engaged in providing a service or product described by that
447-2 section to a nonaffiliated third party;
447-3 (B) providing mass market and consumer market
447-4 products and services directly to a customer that:
447-5 (i) has fewer than 50 access lines in this
447-6 state; and
447-7 (ii) uses or relies on the use of
447-8 information services, information systems, or information
447-9 technology or processes;
447-10 (C) selling or leasing billing and collection
447-11 services, local area networks, wide area networks, or other
447-12 telecommunications services; or
447-13 (D) providing to itself a service or product
447-14 described by Section 61.021. (V.A.C.S. Art. 1446c-0, Secs.
447-15 3.582(b), (c) (part).)
447-16 Sec. 61.023. SEPARATE AFFILIATE REQUIREMENTS. (a) A local
447-17 exchange company's affiliate that provides a service or product
447-18 described by Section 61.021:
447-19 (1) shall:
447-20 (A) operate independently from the local
447-21 exchange company in providing the service or product; and
447-22 (B) maintain the affiliate's own books of
447-23 accounts; and
447-24 (2) may not have an officer, director, or employee in
447-25 common with the local exchange company.
448-1 (b) Notwithstanding Subsection (a)(2), an officer of a
448-2 corporate parent or holding company may serve as a director of the
448-3 local exchange company and as a director of another subsidiary of
448-4 the parent if the subsidiary existed on September 1, 1995.
448-5 (V.A.C.S. Art. 1446c-0, Sec. 3.583(a) (part).)
448-6 Sec. 61.024. ARM'S-LENGTH TRANSACTIONS. A local exchange
448-7 company and an affiliate shall conduct at arm's length each
448-8 transaction regarding the acquisition from the affiliate of a
448-9 service or product described by Section 61.021. (V.A.C.S.
448-10 Art. 1446c-0, Sec. 3.583(b).)
448-11 Sec. 61.025. CONTRACTS AND RECORDS. (a) A local exchange
448-12 company shall maintain and keep available for inspection by the
448-13 commission copies of each contract or arrangement between the
448-14 company and an affiliate that relates to the company's acquisition
448-15 from the affiliate of a service or product described by Section
448-16 61.021.
448-17 (b) The local exchange company's records must show each cash
448-18 or noncash transaction with the affiliate for the service or
448-19 product, including each payment for a good, service, or property
448-20 right. (V.A.C.S. Art. 1446c-0, Sec. 3.583(c).)
448-21 Sec. 61.026. JOINT OWNERSHIP OR USE PROHIBITED. A local
448-22 exchange company and an affiliate engaged in providing a service or
448-23 product described by Section 61.021 may not:
448-24 (1) own property jointly; or
448-25 (2) share in the use of property. (V.A.C.S.
449-1 Art. 1446c-0, Sec. 3.583(d).)
449-2 (Sections 61.027-61.040 reserved for expansion)
449-3 SUBCHAPTER C. ADDITIONAL COMPETITIVE SAFEGUARDS
449-4 Sec. 61.041. PROHIBITED DISCRIMINATION. A local exchange
449-5 company may not discriminate between an affiliate that provides a
449-6 service or product described by Section 61.021 and another person
449-7 in:
449-8 (1) providing or procuring a good, a service, a
449-9 facility, or information; or
449-10 (2) establishing a standard. (V.A.C.S. Art. 1446c-0,
449-11 Sec. 3.584(a).)
449-12 Sec. 61.042. SUBSIDIZATION OF SERVICES PROHIBITED. A local
449-13 exchange company or the company's affiliate may not subsidize the
449-14 provision of a service or product described by Section 61.021 with
449-15 revenue from:
449-16 (1) a local exchange telephone service; or
449-17 (2) an access service provided by the local exchange
449-18 company. (V.A.C.S. Art. 1446c-0, Sec. 3.584(b).)
449-19 Sec. 61.043. PERMISSIBLE INVESTMENT. This subchapter does
449-20 not prohibit a local exchange company's affiliate from investing a
449-21 dividend or profit derived from a local exchange company or
449-22 developing a service or product described by Section 61.021 for the
449-23 local exchange company if the investment or development complies
449-24 with Subchapter B. (V.A.C.S. Art. 1446c-0, Sec. 3.584(c).)
450-1 CHAPTER 62. BROADCASTER SAFEGUARDS
450-2 SUBCHAPTER A. GENERAL PROVISIONS
450-3 Sec. 62.001. APPLICABILITY OF CHAPTER
450-4 Sec. 62.002. DEFINITIONS
450-5 (Sections 62.003-62.020 reserved for expansion)
450-6 SUBCHAPTER B. CUSTOMER PROPRIETARY NETWORK INFORMATION
450-7 Sec. 62.021. DEFINITIONS
450-8 Sec. 62.022. USE OF SPECIFIC CUSTOMER PROPRIETARY NETWORK
450-9 INFORMATION
450-10 Sec. 62.023. RULES
450-11 (Sections 62.024-62.040 reserved for expansion)
450-12 SUBCHAPTER C. ADVERTISING
450-13 Sec. 62.041. DEFINITION
450-14 Sec. 62.042. APPLICABILITY OF SUBCHAPTER
450-15 Sec. 62.043. ADVERTISING AGENCY SERVICES PROHIBITED
450-16 Sec. 62.044. ADVERTISING ACTIVITIES OF AFFILIATE
450-17 Sec. 62.045. JOINT MARKETING PROHIBITED
450-18 Sec. 62.046. CHARITABLE TELEPHONE SOLICITATION
450-19 Sec. 62.047. WAIVER
450-20 (Sections 62.048-62.070 reserved for expansion)
450-21 SUBCHAPTER D. AUDIO AND VIDEO PROGRAMMING
450-22 Sec. 62.071. APPLICABILITY OF SUBCHAPTER
450-23 Sec. 62.072. AUDIO OR VIDEO PROGRAMMING PROHIBITED
451-1 Sec. 62.073. RELATIONSHIP BETWEEN EXCHANGE COMPANY AND
451-2 AFFILIATE THAT PROVIDES AUDIO OR VIDEO
451-3 PROGRAMMING
451-4 Sec. 62.074. REGULATION OF EXCHANGE COMPANY DEALINGS WITH
451-5 SEPARATE AFFILIATE
451-6 Sec. 62.075. BILLING OR COLLECTION SERVICES FOR NONAFFILIATED
451-7 PROGRAMMER
451-8 Sec. 62.076. COMPLIANCE AUDIT
451-9 Sec. 62.077. WAIVER
451-10 Sec. 62.078. LIMITATION OF JURISDICTION
451-11 (Sections 62.079-62.100 reserved for expansion)
451-12 SUBCHAPTER E. VIDEO CARRIAGE
451-13 Sec. 62.101. APPLICABILITY OF SUBCHAPTER
451-14 Sec. 62.102. RATE FOR BROADCAST STATION ACCESS TO
451-15 TELECOMMUNICATIONS SERVICES
451-16 Sec. 62.103. DUTIES OF LOCAL EXCHANGE COMPANY
451-17 Sec. 62.104. BROADCAST STATION ACCESS THROUGH
451-18 TELECOMMUNICATIONS SERVICES
451-19 Sec. 62.105. RETRANSMISSION CONSENT
451-20 Sec. 62.106. WAIVER
451-21 Sec. 62.107. LIMITATION OF JURISDICTION
451-22 Sec. 62.108. EXPIRATION
451-23 (Sections 62.109-62.130 reserved for expansion)
451-24 SUBCHAPTER F. AUDIO CARRIAGE
451-25 Sec. 62.131. APPLICABILITY OF SUBCHAPTER
452-1 Sec. 62.132. BROADCAST STATION ACCESS THROUGH
452-2 TELECOMMUNICATIONS SERVICES
452-3 Sec. 62.133. RETRANSMISSION CONSENT
452-4 Sec. 62.134. WAIVER
452-5 Sec. 62.135. LIMITATION OF JURISDICTION
452-6 Sec. 62.136. EXPIRATION
452-7 CHAPTER 62. BROADCASTER SAFEGUARDS
452-8 SUBCHAPTER A. GENERAL PROVISIONS
452-9 Sec. 62.001. APPLICABILITY OF CHAPTER. This chapter does
452-10 not apply to a cable company. (V.A.C.S. Art. 1446c-0, Sec. 3.506.)
452-11 Sec. 62.002. DEFINITIONS. In this chapter:
452-12 (1) "Audio programming":
452-13 (A) means programming:
452-14 (i) provided by an amplitude modulation or
452-15 frequency modulation broadcast radio station; or
452-16 (ii) generally considered comparable to
452-17 programming described by Subparagraph (i); and
452-18 (B) does not include an audio-related service
452-19 offered by an incumbent local exchange company on September 1,
452-20 1995.
452-21 (2) "Video programming" means programming provided by
452-22 or generally considered comparable to programming provided by a
452-23 television broadcast station as defined by Section 602,
452-24 Communications Act of 1934 (47 U.S.C. Section 522). (V.A.C.S.
452-25 Art. 1446c-0, Sec. 3.502(a).)
453-1 (Sections 62.003-62.020 reserved for expansion)
453-2 SUBCHAPTER B. CUSTOMER PROPRIETARY NETWORK INFORMATION
453-3 Sec. 62.021. DEFINITIONS. In this subchapter:
453-4 (1) "Specific customer proprietary network
453-5 information" means information, other than subscriber list
453-6 information:
453-7 (A) that concerns the customer and is available
453-8 to the telecommunications utility because of the customer's use of
453-9 the telecommunications utility service;
453-10 (B) that is contained in the bills relating to
453-11 telecommunications services received by a customer of a
453-12 telecommunications utility; or
453-13 (C) that:
453-14 (i) is made available to a
453-15 telecommunications utility by a customer of the utility, other than
453-16 a wireless telecommunications provider, solely because of the
453-17 utility-customer relationship; and
453-18 (ii) relates to the quantity, technical
453-19 configuration, type, destination, or amount of use of voice or data
453-20 telecommunications services to which the customer subscribes.
453-21 (2) "Subscriber list information" means information:
453-22 (A) that identifies the listed name of a
453-23 telecommunications utility subscriber or the subscriber's telephone
453-24 number, address, or primary advertising classification; and
453-25 (B) that the telecommunications utility or an
454-1 affiliate has published or accepted for publication. (V.A.C.S.
454-2 Art. 1446c-0, Sec. 3.501(a).)
454-3 Sec. 62.022. USE OF SPECIFIC CUSTOMER PROPRIETARY NETWORK
454-4 INFORMATION. (a) A telecommunications utility may not use
454-5 specific customer proprietary network information for a commercial
454-6 purpose other than the sale or provision of, or billing or
454-7 collection for, telecommunications or enhanced services.
454-8 (b) This section does not prohibit:
454-9 (1) the use of specific customer proprietary network
454-10 information with the customer's consent; or
454-11 (2) the provision of specific customer proprietary
454-12 network information to an affiliate telecommunications provider.
454-13 (c) Subsection (a) has no effect to the extent it is
454-14 preempted by an action of the Federal Communications Commission.
454-15 (V.A.C.S. Art. 1446c-0, Sec. 3.501(b).)
454-16 Sec. 62.023. RULES. (a) The commission shall adopt rules
454-17 that are consistent with rules on the use of specific customer
454-18 proprietary network information adopted by the Federal
454-19 Communications Commission.
454-20 (b) Rules adopted under Subsection (a) shall:
454-21 (1) require each telecommunications utility annually
454-22 to notify, by means approved by the commission, each subscriber of
454-23 the subscriber's right to reject the utility's use of specific
454-24 customer proprietary network information for marketing other
454-25 services; and
455-1 (2) require a telecommunications utility that makes
455-2 nonproprietary aggregate customer proprietary network information
455-3 available to its affiliates to make the information available to
455-4 nonaffiliated entities on the same terms.
455-5 (c) If the Federal Communications Commission adopts rules
455-6 regarding customer proprietary network information that no longer
455-7 preempt this state's authority to adopt inconsistent rules, the
455-8 commission shall conduct a proceeding to determine the appropriate
455-9 use of customer proprietary network information by a
455-10 telecommunications utility. A rule, policy, or order adopted by
455-11 the commission on customer proprietary network information may not
455-12 be discriminatory in its application to telecommunications
455-13 utilities.
455-14 (d) A commission rule governing customer proprietary network
455-15 information may not apply to an incumbent local exchange company
455-16 that has 100,000 or fewer access lines in service in this state if
455-17 the rule is more burdensome to the company than the customer
455-18 proprietary network information rules of the Federal Communications
455-19 Commission. This prohibition does not apply to a rule regarding a
455-20 use of customer proprietary network information that is not related
455-21 to a telecommunications service or product. (V.A.C.S.
455-22 Art. 1446c-0, Secs. 3.501(c), (d).)
455-23 (Sections 62.024-62.040 reserved for expansion)
455-24 SUBCHAPTER C. ADVERTISING
455-25 Sec. 62.041. DEFINITION. In this subchapter, "advertising
456-1 agency services" includes:
456-2 (1) advertising development;
456-3 (2) advertising purchase;
456-4 (3) advertising consultation;
456-5 (4) advertising copy writing;
456-6 (5) advertising research; and
456-7 (6) other functions generally performed by a general
456-8 advertising agency. (V.A.C.S. Art. 1446c-0, Sec. 3.503(a).)
456-9 Sec. 62.042. APPLICABILITY OF SUBCHAPTER. This subchapter
456-10 does not apply to an incumbent local exchange company that has
456-11 100,000 or fewer access lines in service in this state. (V.A.C.S.
456-12 Art. 1446c-0, Sec. 3.503(f).)
456-13 Sec. 62.043. ADVERTISING AGENCY SERVICES PROHIBITED.
456-14 (a) An incumbent local exchange company may not sell an
456-15 advertising agency service to a nonaffiliate in this state.
456-16 (b) Subsection (a) does not prohibit a local exchange
456-17 company from:
456-18 (1) promoting or selling a telecommunications service
456-19 or telecommunications equipment, including:
456-20 (A) voice service or equipment;
456-21 (B) data service or equipment;
456-22 (C) video dial tone service or equipment;
456-23 (D) video or audio programming service or
456-24 equipment;
456-25 (E) cellular service or equipment;
457-1 (F) interactive media service or equipment;
457-2 (G) software service or equipment; or
457-3 (H) another related service or piece of
457-4 equipment; or
457-5 (2) enhancing or promoting the use of the
457-6 telecommunications network. (V.A.C.S. Art. 1446c-0, Sec.
457-7 3.503(b).)
457-8 Sec. 62.044. ADVERTISING ACTIVITIES OF AFFILIATE. (a) A
457-9 separate corporate affiliate of an incumbent local exchange company
457-10 may engage in advertising agency activities. In conducting an
457-11 advertising agency activity, the affiliate shall comply with this
457-12 section.
457-13 (b) The affiliate shall prepare financial statements that
457-14 are not consolidated with the financial statements of the incumbent
457-15 local exchange company. Financial statements and consolidated tax
457-16 returns that consolidate the operation of the separate corporate
457-17 affiliate with a parent company and the parent company's other
457-18 subsidiaries may be prepared.
457-19 (c) The affiliate shall:
457-20 (1) maintain, in accordance with generally accepted
457-21 accounting principles, books, records, and accounts that are
457-22 separate from the books, records, and accounts of the incumbent
457-23 local exchange company; and
457-24 (2) maintain a corporate identity separate from the
457-25 incumbent local exchange company.
458-1 (d) The affiliate may not:
458-2 (1) incur debt in a manner that, on the affiliate's
458-3 default, would permit a creditor to have recourse against an asset
458-4 of the incumbent local exchange company;
458-5 (2) use a name, trademark, or service mark of the
458-6 incumbent local exchange company, unless the name, trademark, or
458-7 service mark is used in common with the parent, affiliate, or owner
458-8 of the incumbent local exchange company; or
458-9 (3) have a director, officer, or employee in common
458-10 with the incumbent local exchange company. (V.A.C.S. Art. 1446c-0,
458-11 Sec. 3.503(c).)
458-12 Sec. 62.045. JOINT MARKETING PROHIBITED. (a) Except as
458-13 permitted by Section 62.043, an incumbent local exchange company
458-14 that has an affiliate that provides advertising agency services on
458-15 behalf of a nonaffiliate in this state may not jointly market the
458-16 affiliate's advertising agency services in connection with a
458-17 telecommunications service or telecommunications equipment the
458-18 incumbent local exchange company provides.
458-19 (b) This section does not apply to advertising in a
458-20 telephone directory disseminated in any form. (V.A.C.S.
458-21 Art. 1446c-0, Sec. 3.503(d).)
458-22 Sec. 62.046. CHARITABLE TELEPHONE SOLICITATION. This
458-23 subchapter does not prohibit an incumbent local exchange company
458-24 from providing a telephone solicitation service for a charitable
458-25 organization. (V.A.C.S. Art. 1446c-0, Sec. 3.503(e).)
459-1 Sec. 62.047. WAIVER. (a) A company may petition the
459-2 commission for a waiver from a requirement this subchapter imposes
459-3 on the company.
459-4 (b) The commission shall grant the waiver if the waiver is
459-5 in the public interest, after considering whether there is a need
459-6 for the requirement in the affected market.
459-7 (c) The commission may revoke a waiver granted under this
459-8 section if:
459-9 (1) conditions under which the waiver was granted have
459-10 materially changed; and
459-11 (2) the revocation is in the public interest.
459-12 (V.A.C.S. Art. 1446c-0, Sec. 3.503(g).)
459-13 (Sections 62.048-62.070 reserved for expansion)
459-14 SUBCHAPTER D. AUDIO AND VIDEO PROGRAMMING
459-15 Sec. 62.071. APPLICABILITY OF SUBCHAPTER. This subchapter
459-16 does not apply to an incumbent local exchange company that has
459-17 100,000 or fewer access lines in service in this state. (V.A.C.S.
459-18 Art. 1446c-0, Sec. 3.502(h).)
459-19 Sec. 62.072. AUDIO OR VIDEO PROGRAMMING PROHIBITED. (a) An
459-20 incumbent local exchange company may not provide audio or video
459-21 programming in this state.
459-22 (b) This section does not prohibit a separate corporate
459-23 affiliate of an incumbent local exchange company from providing
459-24 audio or video programming. (V.A.C.S. Art. 1446c-0, Sec.
459-25 3.502(b).)
460-1 Sec. 62.073. RELATIONSHIP BETWEEN EXCHANGE COMPANY AND
460-2 AFFILIATE THAT PROVIDES AUDIO OR VIDEO PROGRAMMING. (a) This
460-3 section applies only to an incumbent local exchange company's
460-4 separate corporate affiliate that provides audio or video
460-5 programming.
460-6 (b) For a telecommunications service the affiliate obtains
460-7 from the incumbent local exchange company, the affiliate shall pay:
460-8 (1) a tariffed rate;
460-9 (2) the fair market value of the service, if the
460-10 service is not provided under a tariff; or
460-11 (3) the service's long run incremental cost, if:
460-12 (A) the service is not provided under a tariff;
460-13 and
460-14 (B) the service:
460-15 (i) does not have a fair market value; or
460-16 (ii) has a fair market value that is less
460-17 than the service's long run incremental cost.
460-18 (c) In making a transaction with the incumbent local
460-19 exchange company to purchase, use, rent, or access information,
460-20 services, space, or devices that are not telecommunications
460-21 services, the affiliate shall act in a manner consistent with the
460-22 affiliate transaction rules of the Federal Communications
460-23 Commission. The subject of a transaction described by this
460-24 subsection may not be valued at less than the greater of the
460-25 subject's net book value or fair market value, whichever is
461-1 applicable.
461-2 (d) The affiliate shall prepare financial statements that
461-3 are not consolidated with those of the incumbent local exchange
461-4 company. Financial statements and consolidated tax returns that
461-5 consolidate the operation of the separate corporate affiliate with
461-6 a parent company and the parent company's other subsidiaries may be
461-7 prepared.
461-8 (e) The affiliate shall:
461-9 (1) maintain, in accordance with generally accepted
461-10 accounting principles, books, records, and accounts that are
461-11 separate from the books, records, and accounts of the incumbent
461-12 local exchange company;
461-13 (2) perform its marketing and sales functions and
461-14 operation in compliance with open network architecture and the
461-15 affiliate transaction rules of the Federal Communications
461-16 Commission; and
461-17 (3) maintain a corporate identity separate from the
461-18 incumbent local exchange company.
461-19 (f) The affiliate may not:
461-20 (1) incur debt in a manner that, on the affiliate's
461-21 default, would permit a creditor to have recourse against an asset
461-22 of the incumbent local exchange company;
461-23 (2) use a name, trademark, or service mark of the
461-24 incumbent local exchange company, unless the name, trademark, or
461-25 service mark is used in common with the parent, affiliate, or owner
462-1 of the incumbent local exchange company; or
462-2 (3) have a director, officer, or employee in common
462-3 with the incumbent local exchange company. (V.A.C.S. Art. 1446c-0,
462-4 Sec. 3.502(c).)
462-5 Sec. 62.074. REGULATION OF EXCHANGE COMPANY DEALINGS WITH
462-6 SEPARATE AFFILIATE. (a) This section applies only to an incumbent
462-7 local exchange company's separate corporate affiliate that provides
462-8 audio or video programming.
462-9 (b) An incumbent local exchange company may not:
462-10 (1) develop a rate for a telecommunications service or
462-11 provide a telecommunications service to benefit primarily the
462-12 company's separate affiliate for the affiliate's video or audio
462-13 programming unless the rate or service is available to any
462-14 purchaser without discrimination;
462-15 (2) provide a telecommunications service for the
462-16 separate affiliate's audio or video programming in an unreasonably
462-17 preferential manner;
462-18 (3) transfer an asset to the separate affiliate for
462-19 less than the amount for which the asset is available to a third
462-20 party in an arm's-length transaction;
462-21 (4) have a director, officer, or employee in common
462-22 with the separate affiliate;
462-23 (5) own property in common with the separate
462-24 affiliate; or
462-25 (6) enter into a customer-specific contract with the
463-1 separate affiliate to provide tariffed telecommunications services
463-2 unless substantially the same contract terms are generally
463-3 available to nonaffiliated interests.
463-4 (c) An incumbent local exchange company shall:
463-5 (1) maintain and file with the commission copies of
463-6 each contract or arrangement between the company and the separate
463-7 affiliate and report the contract amount for each cash or noncash
463-8 transaction with the separate affiliate, including payments for:
463-9 (A) the cost of a good, service, property right,
463-10 or other item; or
463-11 (B) interest expense;
463-12 (2) value an asset the company transfers to the
463-13 separate affiliate at the greater of the asset's net book value or
463-14 fair market value;
463-15 (3) value an asset the separate affiliate transfers to
463-16 the company at the lesser of the asset's net book value or fair
463-17 market value except in an instance in which Federal Communications
463-18 Commission regulations or commission rules permit:
463-19 (A) in-arrears payment for a tariffed
463-20 telecommunications service; or
463-21 (B) an affiliate to invest a dividend or profit
463-22 derived from an incumbent local exchange company;
463-23 (4) comply with applicable Federal Communications
463-24 Commission cost and other accounting rules; and
463-25 (5) if the company offers telecommunications equipment
464-1 or services to an audio or video programmer, provide the equipment
464-2 or services:
464-3 (A) at just and reasonable rates that, if
464-4 commission rules require the provision to be under a tariff, are
464-5 tariffed on nondiscriminatory terms; and
464-6 (B) on similar terms to all video or audio
464-7 programmers, if the equipment or services are not subject to
464-8 regulation. (V.A.C.S. Art. 1446c-0, Sec. 3.502(d).)
464-9 Sec. 62.075. BILLING OR COLLECTION SERVICES FOR
464-10 NONAFFILIATED PROGRAMMER. (a) An incumbent local exchange company
464-11 that offers billing or collection service to a nonaffiliated audio
464-12 or video programmer shall provide the service on nondiscriminatory
464-13 terms.
464-14 (b) This section does not require an incumbent local
464-15 exchange company to offer billing or collection service to a
464-16 nonaffiliated programmer.
464-17 (c) An incumbent local exchange company may exclude a class
464-18 of programmers from the company's billing or collection service.
464-19 (V.A.C.S. Art. 1446c-0, Sec. 3.502(e).)
464-20 Sec. 62.076. COMPLIANCE AUDIT. (a) An incumbent local
464-21 exchange company shall have a compliance audit performed every
464-22 three years to determine whether the incumbent local exchange
464-23 company, during the preceding three years, complied with the
464-24 requirements this subchapter imposes on the company.
464-25 (b) An independent accounting firm:
465-1 (1) must conduct the audit; and
465-2 (2) shall file the audit report with the commission.
465-3 (c) If the audit report concludes that the incumbent local
465-4 exchange company is not in compliance with this subchapter, the
465-5 commission shall take appropriate action against the company.
465-6 (d) The audit report is confidential commercial or financial
465-7 information for the purposes of Chapter 552, Government Code.
465-8 (V.A.C.S. Art. 1446c-0, Sec. 3.502(f).)
465-9 Sec. 62.077. WAIVER. (a) A company may petition the
465-10 commission for a waiver from a requirement this subchapter imposes
465-11 on the company.
465-12 (b) The commission shall grant the waiver if the waiver is
465-13 in the public interest, after considering whether there is a need
465-14 for the requirement in the affected market.
465-15 (c) The commission may revoke a waiver granted under this
465-16 section if:
465-17 (1) conditions under which the waiver was granted have
465-18 materially changed; and
465-19 (2) the revocation is in the public interest.
465-20 (V.A.C.S. Art. 1446c-0, Sec. 3.502(i).)
465-21 Sec. 62.078. LIMITATION OF JURISDICTION. Except as
465-22 otherwise specifically provided by this title, the commission's
465-23 jurisdiction over an incumbent local exchange company's affiliate
465-24 that is an audio or video programmer is limited to the specific
465-25 requirements of this subchapter. (V.A.C.S. Art. 1446c-0, Sec.
466-1 3.502(g).)
466-2 (Sections 62.079-62.100 reserved for expansion)
466-3 SUBCHAPTER E. VIDEO CARRIAGE
466-4 Sec. 62.101. APPLICABILITY OF SUBCHAPTER. This subchapter
466-5 does not apply to:
466-6 (1) an incumbent local exchange company that has
466-7 100,000 or fewer access lines in service in this state; or
466-8 (2) a programmer on the video dial tone platform of an
466-9 incumbent local exchange company described by Subdivision (1).
466-10 (V.A.C.S. Art. 1446c-0, Sec. 3.504(e).)
466-11 Sec. 62.102. RATE FOR BROADCAST STATION ACCESS TO
466-12 TELECOMMUNICATIONS SERVICES. Unless the company is a programmer
466-13 subject to Section 62.104, an incumbent local exchange company that
466-14 provides a telecommunications service used to transmit video
466-15 programming directly to a subscriber or used to enable a customer
466-16 to access video programming shall give a local full-power broadcast
466-17 station licensed by the Federal Communications Commission access to
466-18 the telecommunications service at a tariffed rate, to the extent
466-19 capacity permits. If the service is not provided under a tariff,
466-20 the company shall provide the service on terms similar to those on
466-21 which the service is provided to other video programmers that
466-22 provide similar programming. (V.A.C.S. Art. 1446c-0, Sec. 3.504(a)
466-23 (part).)
466-24 Sec. 62.103. DUTIES OF LOCAL EXCHANGE COMPANY. (a) An
466-25 incumbent local exchange company shall transmit without material
467-1 degradation the signals a local broadcast station delivers. The
467-2 transmission quality offered the station may not be less than the
467-3 quality made available to another video programmer.
467-4 (b) An incumbent local exchange company that provides a
467-5 telecommunications service used to transmit video programming
467-6 directly to a subscriber or used to enable a customer to access
467-7 video programming may not:
467-8 (1) discriminate unreasonably among programming
467-9 providers regarding transmission of their signals; or
467-10 (2) delete, change, or alter a copyright
467-11 identification transmitted as part of the programming signal.
467-12 (c) An incumbent local exchange company described by
467-13 Subsection (b) that provides a video dial tone service with a level
467-14 one gateway, as that term is defined by the Federal Communications
467-15 Commission, shall make available to programmers a menu or
467-16 programming guide on which a programmer may display a listing of
467-17 the stations the programmer is required to carry under Section
467-18 62.104. (V.A.C.S. Art. 1446c-0, Secs. 3.504(a) (part), (b).)
467-19 Sec. 62.104. BROADCAST STATION ACCESS THROUGH
467-20 TELECOMMUNICATIONS SERVICES. (a) As permitted by federal law and
467-21 Federal Communications Commission rules and orders, a programmer
467-22 shall make available to subscribers local full-power television
467-23 stations licensed by the Federal Communications Commission if:
467-24 (1) the programmer is operating as a common channel
467-25 manager;
468-1 (2) for a commercial purpose, the programmer purchases
468-2 50 or more analog channels on a local exchange video dial tone
468-3 level one platform over which video programming is made available
468-4 to subscribers; and
468-5 (3) the television stations grant retransmission
468-6 consent.
468-7 (b) The programmer shall make available up to six television
468-8 stations under this section. If the programmer is in a market that
468-9 contains a county with a population of more than one million, the
468-10 programmer shall make available up to nine television stations
468-11 under this section.
468-12 (c) The programmer shall select the television stations the
468-13 programmer makes available to subscribers under this section.
468-14 (d) This title does not require a programmer or incumbent
468-15 local exchange company to provide valuable consideration in
468-16 exchange for carriage under this section. (V.A.C.S. Art. 1446c-0,
468-17 Secs. 3.504(c), (d) (part).)
468-18 Sec. 62.105. RETRANSMISSION CONSENT. A television station
468-19 licensed by the Federal Communications Commission that seeks
468-20 carriage under Section 62.104 shall grant consent for programming
468-21 retransmission to the programmer and the incumbent local exchange
468-22 company. (V.A.C.S. Art. 1446c-0, Sec. 3.504(d) (part).)
468-23 Sec. 62.106. WAIVER. (a) A company may petition the
468-24 commission for a waiver from a requirement this subchapter imposes
468-25 on the company.
469-1 (b) The commission shall grant the waiver if the waiver is
469-2 in the public interest, after considering whether there is a need
469-3 for the requirement in the affected market.
469-4 (c) The commission may revoke a waiver granted under this
469-5 section if:
469-6 (1) conditions under which the waiver was granted have
469-7 materially changed; and
469-8 (2) the revocation is in the public interest.
469-9 (V.A.C.S. Art. 1446c-0, Sec. 3.504(f).)
469-10 Sec. 62.107. LIMITATION OF JURISDICTION. Except as
469-11 otherwise specifically provided by this title, the commission's
469-12 jurisdiction over an incumbent local exchange company's affiliate
469-13 that is a video programmer is limited to the specific requirements
469-14 of this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.504(g).)
469-15 Sec. 62.108. EXPIRATION. This subchapter expires August 31,
469-16 1999. (V.A.C.S. Art. 1446c-0, Sec. 3.504(h).)
469-17 (Sections 62.109-62.130 reserved for expansion)
469-18 SUBCHAPTER F. AUDIO CARRIAGE
469-19 Sec. 62.131. APPLICABILITY OF SUBCHAPTER. This subchapter
469-20 does not apply to:
469-21 (1) an incumbent local exchange company that has
469-22 100,000 or fewer access lines in service in this state; or
469-23 (2) a programmer on the video dial tone platform of an
469-24 incumbent local exchange company described by Subdivision (1).
469-25 (V.A.C.S. Art. 1446c-0, Sec. 3.505(c).)
470-1 Sec. 62.132. BROADCAST STATION ACCESS THROUGH
470-2 TELECOMMUNICATIONS SERVICES. (a) As permitted by federal law and
470-3 Federal Communications Commission rules and orders, and as
470-4 consistent with technical specifications, a programmer shall make
470-5 available to subscribers local radio stations licensed by the
470-6 Federal Communications Commission if:
470-7 (1) the programmer is operating as a common channel
470-8 manager;
470-9 (2) for a commercial purpose, the programmer makes 12
470-10 or more channels of audio programming available to subscribers on
470-11 an incumbent local exchange company's level one video dial tone
470-12 platform;
470-13 (3) the available audio programming is similar to a
470-14 broadcast of a radio station licensed by the Federal Communications
470-15 Commission; and
470-16 (4) the radio stations grant retransmission consent.
470-17 (b) The programmer is not required to make available more
470-18 than one-third of the programmer's analog audio channels to radio
470-19 stations.
470-20 (c) The programmer shall select the radio stations the
470-21 programmer makes available to subscribers under this section.
470-22 (d) This title does not require a programmer or incumbent
470-23 local exchange company to provide valuable consideration in
470-24 exchange for carriage under this section. (V.A.C.S. Art. 1446c-0,
470-25 Secs. 3.505(a), (b) (part).)
471-1 Sec. 62.133. RETRANSMISSION CONSENT. A local radio station
471-2 licensed by the Federal Communications Commission that seeks
471-3 carriage under Section 62.132 shall grant consent for programming
471-4 retransmission to the programmer and the incumbent local exchange
471-5 company. (V.A.C.S. Art. 1446c-0, Sec. 3.505(b) (part).)
471-6 Sec. 62.134. WAIVER. (a) A company may petition the
471-7 commission for a waiver from a requirement this subchapter imposes
471-8 on the company.
471-9 (b) The commission shall grant the waiver if the waiver is
471-10 in the public interest, after considering whether there is a need
471-11 for the requirement in the affected market.
471-12 (c) The commission may revoke a waiver granted under this
471-13 section if:
471-14 (1) conditions under which the waiver was granted have
471-15 materially changed; and
471-16 (2) the revocation is in the public interest.
471-17 (V.A.C.S. Art. 1446c-0, Sec. 3.505(d).)
471-18 Sec. 62.135. LIMITATION OF JURISDICTION. Except as
471-19 otherwise specifically provided by this title, the commission's
471-20 jurisdiction over an incumbent local exchange company's affiliate
471-21 that is an audio programmer is limited to the specific requirements
471-22 of this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.505(e).)
471-23 Sec. 62.136. EXPIRATION. This subchapter expires August 31,
471-24 1999. (V.A.C.S. Art. 1446c-0, Sec. 3.505(f).)
472-1 CHAPTER 63. ELECTRONIC PUBLISHING
472-2 SUBCHAPTER A. GENERAL PROVISIONS
472-3 Sec. 63.001. GENERAL DEFINITIONS
472-4 Sec. 63.002. ELECTRONIC PUBLISHING DEFINED
472-5 Sec. 63.003. INCUMBENT LOCAL EXCHANGE COMPANY DEFINED
472-6 Sec. 63.004. CERTAIN SERVICES NOT PROHIBITED
472-7 Sec. 63.005. INVESTMENT OF DIVIDENDS
472-8 Sec. 63.006. JOINT VIOLATIONS
472-9 Sec. 63.007. PRIVATE COMPLAINT; APPLICATION FOR ORDER
472-10 Sec. 63.008. PRIVATE SUIT FOR INJUNCTION
472-11 Sec. 63.009. PRIVATE SUIT FOR DAMAGES
472-12 Sec. 63.010. APPLICABILITY OF ANTITRUST LAWS
472-13 Sec. 63.011. APPLICABILITY OF CHAPTER
472-14 (Sections 63.012-63.030 reserved for expansion)
472-15 SUBCHAPTER B. ELECTRONIC PUBLISHING SAFEGUARDS
472-16 Sec. 63.031. PUBLICATION BY BASIC TELEPHONE SERVICE
472-17 PROHIBITED
472-18 Sec. 63.032. SEPARATED AFFILIATE OR JOINT VENTURE
472-19 REQUIREMENTS
472-20 Sec. 63.033. INCUMBENT LOCAL EXCHANGE COMPANY
472-21 REQUIREMENTS
472-22 Sec. 63.034. COMPLIANCE REVIEW AND REPORT
472-23 Sec. 63.035. SERVICES TO ELECTRONIC PUBLISHER
472-24 Sec. 63.036. INFORMATION PROVIDED
472-25 Sec. 63.037. CUSTOMER PROPRIETARY NETWORK INFORMATION
473-1 Sec. 63.038. PROHIBITED JOINT ACTIVITIES
473-2 Sec. 63.039. PERMITTED JOINT MARKETING OR REFERRAL
473-3 ACTIVITIES
473-4 Sec. 63.040. ELECTRONIC PUBLISHING TEAMING OR BUSINESS
473-5 ARRANGEMENTS
473-6 Sec. 63.041. JOINT VENTURE PARTICIPATION
473-7 Sec. 63.042. OTHER ELECTRONIC PUBLISHERS
473-8 (Sections 63.043-63.060 reserved for expansion)
473-9 SUBCHAPTER C. ELECTRONIC PUBLISHING TRANSACTIONS
473-10 Sec. 63.061. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN INCUMBENT
473-11 LOCAL EXCHANGE COMPANY AND AFFILIATE
473-12 GENERALLY
473-13 Sec. 63.062. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN INCUMBENT
473-14 LOCAL EXCHANGE COMPANY AND SEPARATED
473-15 AFFILIATE
473-16 Sec. 63.063. EXCEPTION
473-17 CHAPTER 63. ELECTRONIC PUBLISHING
473-18 SUBCHAPTER A. GENERAL PROVISIONS
473-19 Sec. 63.001. GENERAL DEFINITIONS. In this chapter:
473-20 (1) "Affiliate" means an entity, other than a
473-21 separated affiliate, that, directly or indirectly, is:
473-22 (A) under common ownership or control with an
473-23 incumbent local exchange company;
473-24 (B) owned or controlled by an incumbent local
473-25 exchange company; or
474-1 (C) the owner or in control of an incumbent
474-2 local exchange company.
474-3 (2) "Basic telephone service" means a wireline
474-4 telephone exchange facility or service provided by an incumbent
474-5 local exchange company in a telephone exchange area, other than a:
474-6 (A) competitive wireline telephone exchange
474-7 service provided in a telephone exchange area in which another
474-8 entity provides a wireline telephone exchange service that was
474-9 provided on January 1, 1984; or
474-10 (B) commercial mobile service provided by an
474-11 affiliate that the Federal Communications Commission requires to be
474-12 a corporate entity separate from the local exchange company.
474-13 (3) "Basic telephone service information" means:
474-14 (A) an incumbent local exchange company's
474-15 network or customer information; and
474-16 (B) information acquired by an incumbent local
474-17 exchange company as a result of its provision of basic telephone
474-18 service.
474-19 (4) "Control" has the meaning assigned by:
474-20 (A) 17 C.F.R. Section 240.12b--2 as adopted by
474-21 the Securities and Exchange Commission under the Securities
474-22 Exchange Act of 1934 (15 U.S.C. Section 78a et seq.); or
474-23 (B) a successor to that section.
474-24 (5) "Electronic publishing joint venture" means a
474-25 joint venture owned by an incumbent local exchange company or
475-1 affiliate that provides electronic publishing disseminated by the
475-2 basic telephone service of:
475-3 (A) the incumbent local exchange company; or
475-4 (B) an affiliate of the incumbent local exchange
475-5 company.
475-6 (6) "Entity" means an organization and includes a
475-7 corporation, partnership, sole proprietorship, association, or
475-8 joint venture.
475-9 (7) "Inbound telemarketing" means marketing property,
475-10 goods, or services by telephone to a customer or potential customer
475-11 who initiates the call.
475-12 (8) "Modification of final judgment" means the order
475-13 entered August 24, 1982, in the antitrust action styled United
475-14 States v. Western Electric, Civil Action No. 82-0192, in the United
475-15 States District Court for the District of Columbia, and includes
475-16 any judgment or order with respect to that action issued on or
475-17 after August 24, 1982.
475-18 (9) "Own" means to have the:
475-19 (A) equivalent of a direct or indirect equity
475-20 interest of more than 10 percent of an entity; or
475-21 (B) right to more than 10 percent of the gross
475-22 revenues of an entity under a revenue sharing or royalty agreement.
475-23 (10) "Separated affiliate" means a corporation that:
475-24 (A) does not own or control an incumbent local
475-25 exchange company;
476-1 (B) is not owned or controlled by an incumbent
476-2 local exchange company; and
476-3 (C) is under common ownership or control with an
476-4 incumbent local exchange company and provides electronic publishing
476-5 that is disseminated by the basic telephone service of:
476-6 (i) the incumbent local exchange company;
476-7 or
476-8 (ii) an affiliate of the incumbent local
476-9 exchange company. (V.A.C.S. Art. 1446c-0, Secs. 3.551(1), (2),
476-10 (3), (4), (6), (7), (8), (9), (10); New.)
476-11 Sec. 63.002. ELECTRONIC PUBLISHING DEFINED. (a) In this
476-12 chapter, "electronic publishing" means the use of an incumbent
476-13 local exchange company's basic telephone service to disseminate,
476-14 provide, publish, or sell to a nonaffiliated entity or person:
476-15 (1) news;
476-16 (2) entertainment other than an interactive game;
476-17 (3) business, financial, legal, consumer, or credit
476-18 material;
476-19 (4) an editorial;
476-20 (5) a column;
476-21 (6) sports reporting;
476-22 (7) a feature;
476-23 (8) advertising;
476-24 (9) a photograph or image;
476-25 (10) archival or research material;
477-1 (11) a legal notice or public record;
477-2 (12) scientific, educational, instructional,
477-3 technical, professional, trade, or other literary material; or
477-4 (13) other similar information.
477-5 (b) In this chapter, "electronic publishing" does not
477-6 include providing the following network services:
477-7 (1) information access, as that term is defined by the
477-8 modification of final judgment;
477-9 (2) transmission of information as a common carrier;
477-10 (3) transmission of information as part of a gateway
477-11 to an information service that does not involve the generation or
477-12 alteration of the content of information, including data
477-13 transmission, address translation, protocol conversion, billing
477-14 management, introductory information content, or navigational
477-15 systems that enable users to access electronic publishing services
477-16 and that do not affect the presentation of those electronic
477-17 publishing services to users;
477-18 (4) a voice storage and retrieval service, including
477-19 voice messaging and electronic mail service;
477-20 (5) level two gateway services as those services are
477-21 defined by the Federal Communications Commission's Second Report
477-22 and Order, Recommendation to Congress and Second Further Notice of
477-23 Proposed Rulemaking in CC Docket No. 87-266 dated August 14, 1992
477-24 (7 FCC Record 5781 (1992));
477-25 (6) a data processing service that does not involve
478-1 the generation or alteration of the content of information;
478-2 (7) a transaction processing system that does not
478-3 involve the generation or alteration of the content of information;
478-4 (8) electronic billing or advertising of a regulated
478-5 telecommunications service of an incumbent local exchange company;
478-6 (9) language translation;
478-7 (10) conversion of information from one format to
478-8 another;
478-9 (11) information necessary for the management,
478-10 control, or operation of a telephone company telecommunications
478-11 system;
478-12 (12) directory assistance that:
478-13 (A) provides names, addresses, and telephone
478-14 numbers; and
478-15 (B) does not include advertising;
478-16 (13) a caller identification service;
478-17 (14) repairing and provisioning a database for a
478-18 telephone company operation;
478-19 (15) credit card and billing validation for a
478-20 telephone company operation;
478-21 (16) a 911-E or another emergency assistance database;
478-22 (17) another network service of a type that:
478-23 (A) is similar to the network services listed in
478-24 this subsection; and
478-25 (B) does not involve the generation or
479-1 alteration of the content of information;
479-2 (18) an upgrade to a network service listed in this
479-3 subsection that does not involve the generation or alteration of
479-4 the content of information;
479-5 (19) full motion video entertainment on demand; or
479-6 (20) video programming, as defined by Section 602,
479-7 Communications Act of 1934 (47 U.S.C. Section 522). (V.A.C.S.
479-8 Art. 1446c-0, Sec. 3.551(5).)
479-9 Sec. 63.003. INCUMBENT LOCAL EXCHANGE COMPANY DEFINED.
479-10 (a) Except as provided by Subsection (b), in this chapter,
479-11 "incumbent local exchange company" means:
479-12 (1) a corporation that:
479-13 (A) serves more than five million access lines
479-14 in this state; and
479-15 (B) is subject to the modification of final
479-16 judgment;
479-17 (2) an entity owned or controlled by a corporation
479-18 described by Subdivision (1); or
479-19 (3) a successor or assign of a corporation described
479-20 by Subdivision (1).
479-21 (b) In this chapter "incumbent local exchange company" does
479-22 not include an electronic publishing joint venture that is:
479-23 (1) owned by a corporation or entity described by
479-24 Subsection (a); and
479-25 (2) permitted by Section 63.039, 63.040, or 63.041.
480-1 (V.A.C.S. Art. 1446c-0, Sec. 3.551(11).)
480-2 Sec. 63.004. CERTAIN SERVICES NOT PROHIBITED. This chapter
480-3 does not prohibit:
480-4 (1) a separated affiliate or electronic publishing
480-5 joint venture from providing in any area electronic publishing or
480-6 another service; or
480-7 (2) an incumbent local exchange company or affiliate
480-8 from providing:
480-9 (A) a service other than electronic publishing
480-10 in any area; or
480-11 (B) electronic publishing that is not
480-12 disseminated by the basic telephone service of:
480-13 (i) the company; or
480-14 (ii) an affiliate of the company.
480-15 (V.A.C.S. Art. 1446c-0, Secs. 3.552(b), (c).)
480-16 Sec. 63.005. INVESTMENT OF DIVIDENDS. This chapter does not
480-17 prohibit an affiliate from investing a dividend derived from an
480-18 incumbent local exchange company in its separated affiliate.
480-19 (V.A.C.S. Art. 1446c-0, Sec. 3.557 (part).)
480-20 Sec. 63.006. JOINT VIOLATIONS. An incumbent local exchange
480-21 company, an affiliate, or a separated affiliate may not act jointly
480-22 with another entity to knowingly and wilfully violate or evade a
480-23 requirement of this chapter. (V.A.C.S. Art. 1446c-0, Sec. 3.556.)
480-24 Sec. 63.007. PRIVATE COMPLAINT; APPLICATION FOR ORDER.
480-25 (a) A person may file with the commission a complaint that an act
481-1 or practice of an incumbent local exchange company, affiliate, or
481-2 separated affiliate violates this chapter.
481-3 (b) A person may apply to the commission for the commission
481-4 to order an incumbent local exchange company, affiliate, or
481-5 separated affiliate to cease and desist from an act or practice
481-6 that violates this chapter. (V.A.C.S. Art. 1446c-0, Secs. 3.563(a)
481-7 (part), (b) (part).)
481-8 Sec. 63.008. PRIVATE SUIT FOR INJUNCTION. A person may
481-9 bring suit in district court for an injunction to compel an
481-10 incumbent local exchange company, affiliate, or separated affiliate
481-11 to discontinue a violation of this chapter or to comply with a
481-12 requirement of this chapter. (V.A.C.S. Art. 1446c-0, Sec. 3.563(b)
481-13 (part).)
481-14 Sec. 63.009. PRIVATE SUIT FOR DAMAGES. (a) A person may
481-15 bring suit to recover damages that result from a violation of this
481-16 chapter.
481-17 (b) An incumbent local exchange company, affiliate, or
481-18 separated affiliate is liable for damages if the incumbent local
481-19 exchange company violates this chapter or causes a violation of
481-20 this chapter.
481-21 (c) The incumbent local exchange company is liable to a
481-22 person injured by a violation of this chapter caused by the company
481-23 for:
481-24 (1) the amount of the damages that result from the
481-25 violation; and
482-1 (2) reasonable attorney's fees.
482-2 (d) The court shall determine and award attorney's fees in
482-3 each case in which damages are awarded. The attorney's fees shall
482-4 be taxed and collected as part of the costs of the suit.
482-5 (e) The court may not award damages for a violation:
482-6 (1) discovered by a compliance review under Section
482-7 63.034; and
482-8 (2) corrected before the 91st day after the date of
482-9 its discovery. (V.A.C.S. Art. 1446c-0, Sec. 3.563(a) (part).)
482-10 Sec. 63.010. APPLICABILITY OF ANTITRUST LAWS. This chapter
482-11 does not modify, impair, or supersede the applicability of
482-12 antitrust laws. (V.A.C.S. Art. 1446c-0, Sec. 3.564.)
482-13 Sec. 63.011. APPLICABILITY OF CHAPTER. This chapter does
482-14 not apply to conduct that occurs after June 30, 2001. (V.A.C.S.
482-15 Art. 1446c-0, Sec. 3.566.)
482-16 (Sections 63.012-63.030 reserved for expansion)
482-17 SUBCHAPTER B. ELECTRONIC PUBLISHING SAFEGUARDS
482-18 Sec. 63.031. PUBLICATION BY BASIC TELEPHONE SERVICE
482-19 PROHIBITED. An incumbent local exchange company or affiliate may
482-20 not provide electronic publishing disseminated by the basic
482-21 telephone service of:
482-22 (1) the incumbent local exchange company; or
482-23 (2) an affiliate of the incumbent local exchange
482-24 company. (V.A.C.S. Art. 1446c-0, Sec. 3.552(a).)
482-25 Sec. 63.032. SEPARATED AFFILIATE OR JOINT VENTURE
483-1 REQUIREMENTS. (a) A separated affiliate or electronic publishing
483-2 joint venture shall maintain books, records, and accounts that:
483-3 (1) are separate from the books, records, and accounts
483-4 of the incumbent local exchange company and any affiliate; and
483-5 (2) record, in accordance with generally accepted
483-6 accounting principles, all direct and indirect transactions with
483-7 the incumbent local exchange company.
483-8 (b) A separated affiliate or electronic publishing joint
483-9 venture shall prepare financial statements that are not
483-10 consolidated with the financial statements of the incumbent local
483-11 exchange company or an affiliate. Additional consolidated
483-12 statements may be prepared.
483-13 (c) A separated affiliate or electronic publishing joint
483-14 venture shall file annual reports with the commission. The reports
483-15 must be in a form substantially equivalent to the Form 10-K
483-16 required by federal Securities and Exchange Commission regulations.
483-17 (d) A separated affiliate or electronic publishing joint
483-18 venture may not hire:
483-19 (1) as a corporate officer, a sales or marketing
483-20 manager whose responsibilities at the separated affiliate or
483-21 electronic publishing joint venture include a geographic area in
483-22 which the incumbent local exchange company provides basic telephone
483-23 service;
483-24 (2) network operations personnel whose
483-25 responsibilities at the separated affiliate or electronic
484-1 publishing joint venture require dealing directly with the
484-2 incumbent local exchange company; or
484-3 (3) a person who was employed by the incumbent local
484-4 exchange company during the year preceding the date of hire.
484-5 (e) Subsection (d)(3) does not apply to a person who is
484-6 subject to a collective bargaining agreement under which the person
484-7 has a right to be employed by a separated affiliate or electronic
484-8 publishing joint venture of the local exchange company.
484-9 (f) A separated affiliate or electronic publishing joint
484-10 venture may not:
484-11 (1) incur debt in a manner that, on default, would
484-12 permit a creditor to have recourse against an asset of the
484-13 incumbent local exchange company;
484-14 (2) provide a wireline telephone exchange service in a
484-15 telephone exchange area in which an incumbent local exchange
484-16 company with which it is under common ownership or control provides
484-17 basic telephone exchange service, unless the service is provided by
484-18 resale; or
484-19 (3) use a name, trademark, or service mark of an
484-20 incumbent local exchange company unless the name, trademark, or
484-21 service mark is used in common with the entity that owns or
484-22 controls the incumbent local exchange company. (V.A.C.S.
484-23 Art. 1446c-0, Sec. 3.553 (part).)
484-24 Sec. 63.033. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS.
484-25 (a) This section applies only to an incumbent local exchange
485-1 company that is under common ownership or control with a separated
485-2 affiliate or electronic publishing joint venture.
485-3 (b) An incumbent local exchange company shall:
485-4 (1) carry out each transaction with a separated
485-5 affiliate in a manner:
485-6 (A) equivalent to the manner that unrelated
485-7 parties would carry out an independent transaction; and
485-8 (B) able to be audited in accordance with
485-9 generally accepted auditing standards;
485-10 (2) carry out a transaction with a separated affiliate
485-11 that involves the transfer of personnel, assets, or anything of
485-12 value, in accordance with a written contract or tariff that is
485-13 filed with the commission and made available to the public;
485-14 (3) value an asset the company transfers to a
485-15 separated affiliate at the greater of the asset's net book cost or
485-16 fair market value;
485-17 (4) value an asset the company's separated affiliate
485-18 transfers to the company at the lesser of the asset's net book cost
485-19 or fair market value; and
485-20 (5) comply fully with applicable accounting rules of
485-21 the Federal Communications Commission and the commission, including
485-22 rules on cost allocation.
485-23 (c) An incumbent local exchange company may not directly or
485-24 indirectly provide anything of monetary value to a separated
485-25 affiliate unless the item is provided in exchange for consideration
486-1 valued in an amount at least equal to the greater of the item's net
486-2 book cost or fair market value. This subsection does not apply to
486-3 an affiliate's investment of a dividend or profit derived from an
486-4 incumbent local exchange company.
486-5 (d) An incumbent local exchange company may not:
486-6 (1) provide a separated affiliate a facility, a
486-7 service, or basic telephone service information unless the company
486-8 makes the facility, service, or information available to
486-9 nonaffiliated entities on request and on the same terms;
486-10 (2) provide debt or equity financing directly or
486-11 indirectly to a separated affiliate, except in an instance in which
486-12 Federal Communications Commission regulations or commission rules
486-13 permit:
486-14 (A) in-arrears payment for a tariffed
486-15 telecommunications service; or
486-16 (B) an affiliate to invest a dividend or profit
486-17 derived from an incumbent local exchange company;
486-18 (3) discriminate in the presentation or provision of a
486-19 gateway for electronic publishing services or an electronic
486-20 directory of information services that is provided over the
486-21 company's basic telephone service;
486-22 (4) have a director, officer, or employee in common
486-23 with a separated affiliate;
486-24 (5) own property in common with a separated affiliate;
486-25 (6) hire or train personnel for a separated affiliate;
487-1 (7) purchase, install, or maintain equipment for a
487-2 separated affiliate, except for telephone service that the company
487-3 provides under tariff or contract subject to this chapter; or
487-4 (8) perform a research or development activity for a
487-5 separated affiliate. (V.A.C.S. Art. 1446c-0, Secs. 3.554(a)
487-6 (part), (g), (h).)
487-7 Sec. 63.034. COMPLIANCE REVIEW AND REPORT. (a) A separated
487-8 affiliate or an electronic publishing joint venture annually shall
487-9 have a compliance review performed to determine whether the
487-10 separated affiliate or joint venture, during the preceding calendar
487-11 year, complied with the requirements this chapter imposes on the
487-12 separated affiliate or joint venture.
487-13 (b) An incumbent local exchange company that is under common
487-14 ownership or control with a separated affiliate or electronic
487-15 publishing joint venture annually shall have a compliance review
487-16 performed to determine whether the company, during the preceding
487-17 calendar year, complied with the requirements this chapter imposes
487-18 on the company.
487-19 (c) An independent entity that is subject to professional,
487-20 legal, and ethical obligations must conduct the compliance review.
487-21 (d) The compliance review must be performed each year
487-22 before:
487-23 (1) March 31; or
487-24 (2) another date prescribed by the commission.
487-25 (e) An entity subject to a compliance review under
488-1 Subsection (a) or (b) shall maintain the results of the entity's
488-2 compliance review for five years subject to review by a lawful
488-3 authority.
488-4 (f) Before the 91st day after the date an entity subject to
488-5 a compliance review under Subsection (a) or (b) receives the
488-6 results of a compliance review under this section, the entity
488-7 shall:
488-8 (1) file with the commission a report of any
488-9 exceptions or corrective actions; and
488-10 (2) allow any person to inspect and copy the report.
488-11 (g) The right of a person to inspect and copy the report is
488-12 subject to reasonable safeguards to protect proprietary information
488-13 in the report from being used for a purpose other than to enforce
488-14 this chapter or to pursue a remedy under this chapter. (V.A.C.S.
488-15 Art. 1446c-0, Secs. 3.553 (part), 3.554(a) (part).)
488-16 Sec. 63.035. SERVICES TO ELECTRONIC PUBLISHER. (a) This
488-17 section applies only to an incumbent local exchange company that is
488-18 under common ownership and control with a separated affiliate or an
488-19 electronic publishing joint venture.
488-20 (b) If the incumbent local exchange company provides a
488-21 facility or service for telecommunication, transmission, billing
488-22 and collection, or expanded interconnection to an electronic
488-23 publisher, including a separated affiliate, for use in connection
488-24 with the provision of electronic publishing disseminated by the
488-25 basic telephone service of the incumbent local exchange company or
489-1 an affiliate of the incumbent local exchange company, the incumbent
489-2 local exchange company shall provide to any electronic publisher on
489-3 request the same type of facility or service. The facility or
489-4 service must be:
489-5 (1) provided on the same terms as provided to another
489-6 electronic publisher or as required by the Federal Communications
489-7 Commission or the commission; and
489-8 (2) unbundled and individually tariffed to the
489-9 smallest extent technically feasible and economically reasonable.
489-10 (c) The incumbent local exchange company shall provide
489-11 network access and interconnection for basic telephone service to
489-12 an electronic publisher:
489-13 (1) at any technically feasible and economically
489-14 reasonable point in the incumbent local exchange company's network;
489-15 and
489-16 (2) at a just and reasonable rate that:
489-17 (A) is tariffed if rates for the service are
489-18 subject to regulation; and
489-19 (B) is not higher on a per unit basis than the
489-20 rate charged for the service to another electronic publisher or a
489-21 separated affiliate engaged in electronic publishing.
489-22 (d) If the price for network access or interconnection for
489-23 basic telephone service is not subject to regulation, the incumbent
489-24 local exchange company shall provide the service to an electronic
489-25 publisher on the same terms under which a separated affiliate
490-1 receives the service.
490-2 (e) If a tariff is not required for a basic telephone
490-3 service used by an electronic publisher, the incumbent local
490-4 exchange company shall provide an electronic publisher with the
490-5 service on the same terms under which a separated affiliate
490-6 receives the service. (V.A.C.S. Art. 1446c-0, Secs. 3.554(b), (c),
490-7 (d), (e).)
490-8 Sec. 63.036. INFORMATION PROVIDED. (a) An incumbent local
490-9 exchange company under common ownership or control with a separated
490-10 affiliate or an electronic publishing joint venture shall give to
490-11 each affected electronic publisher reasonable advance notification
490-12 of information that:
490-13 (1) is necessary for an interconnected electronic
490-14 publisher to transmit or route information;
490-15 (2) is necessary to ensure the interoperability of an
490-16 electronic publisher's network with the exchange company's network;
490-17 or
490-18 (3) relates to a change in basic telephone service
490-19 network design or a technical standard that may affect the
490-20 provision of electronic publishing.
490-21 (b) The notification must be given to each electronic
490-22 publisher at the same time and on the same terms. (V.A.C.S.
490-23 Art. 1446c-0, Sec. 3.554(f).)
490-24 Sec. 63.037. CUSTOMER PROPRIETARY NETWORK INFORMATION. In
490-25 accordance with Subchapter B, Chapter 62, an incumbent local
491-1 exchange company or an affiliate may not provide an electronic
491-2 publisher, including a separated affiliate or electronic publishing
491-3 joint venture, with customer proprietary network information for
491-4 use with or in connection with providing electronic publishing
491-5 disseminated by the basic telephone service of the incumbent local
491-6 exchange company or an affiliate of the incumbent local exchange
491-7 company unless the exchange company or affiliate makes the
491-8 information available to all electronic publishers on the same
491-9 terms. (V.A.C.S. Art. 1446c-0, Sec. 3.555.)
491-10 Sec. 63.038. PROHIBITED JOINT ACTIVITIES. Except as
491-11 provided by Sections 63.039-63.041, an incumbent local exchange
491-12 company may not engage in any:
491-13 (1) promotion, marketing, sales, or advertising for or
491-14 with a separated affiliate; or
491-15 (2) promotion, marketing, sales, or advertising for or
491-16 with an affiliate if the activity is related to electronic
491-17 publishing. (V.A.C.S. Art. 1446c-0, Sec. 3.558.)
491-18 Sec. 63.039. PERMITTED JOINT MARKETING OR REFERRAL
491-19 ACTIVITIES. (a) An incumbent local exchange company may provide
491-20 an inbound telemarketing or referral service related to the
491-21 provision of electronic publishing for:
491-22 (1) a separated affiliate;
491-23 (2) an electronic publishing joint venture;
491-24 (3) an affiliate; or
491-25 (4) a nonaffiliated electronic publisher.
492-1 (b) To ensure that the company's method of providing the
492-2 service or the company's price structure does not competitively
492-3 disadvantage an electronic publisher, regardless of the publisher's
492-4 size or whether the publisher uses a telemarketing service of the
492-5 company, an incumbent local exchange company that provides an
492-6 inbound telemarketing or referral service to a separated affiliate,
492-7 electronic publishing joint venture, or affiliate shall make the
492-8 service available to all electronic publishers:
492-9 (1) on request;
492-10 (2) on nondiscriminatory terms;
492-11 (3) at compensatory prices; and
492-12 (4) subject to rules of the commission. (V.A.C.S.
492-13 Art. 1446c-0, Sec. 3.559(a).)
492-14 Sec. 63.040. ELECTRONIC PUBLISHING TEAMING OR BUSINESS
492-15 ARRANGEMENTS. (a) An incumbent local exchange company may engage
492-16 in a nondiscriminatory teaming or business arrangement to engage in
492-17 electronic publishing with a separated affiliate or with another
492-18 electronic publisher.
492-19 (b) An incumbent local exchange company engaged in a teaming
492-20 or business arrangement under Subsection (a) may not own the
492-21 teaming or business arrangement.
492-22 (c) An incumbent local exchange company engaged in a teaming
492-23 or business arrangement under Subsection (a) may provide only
492-24 facilities, services, and basic telephone service information
492-25 authorized by this chapter. (V.A.C.S. Art. 1446c-0, Sec.
493-1 3.559(b).)
493-2 Sec. 63.041. JOINT VENTURE PARTICIPATION. (a) Except as
493-3 provided by Subsection (b), an incumbent local exchange company or
493-4 affiliate may participate on a nonexclusive basis in an electronic
493-5 publishing joint venture to provide electronic publishing services
493-6 with an entity that is not:
493-7 (1) an incumbent local exchange company;
493-8 (2) an affiliate; or
493-9 (3) a separated affiliate.
493-10 (b) An incumbent local exchange company or affiliate may not
493-11 participate in an electronic publishing joint venture if the
493-12 company or affiliate has:
493-13 (1) a direct or indirect equity interest in the
493-14 venture, or the equivalent, of more than 50 percent; or
493-15 (2) the right to more than 50 percent of the gross
493-16 revenues of the venture under a revenue sharing or royalty
493-17 agreement.
493-18 (c) Officers and employees of an incumbent local exchange
493-19 company or affiliate that participates in an electronic publishing
493-20 joint venture may not have more than 50 percent of the voting
493-21 control over the venture.
493-22 (d) The commission for good cause shown may authorize an
493-23 incumbent local exchange company or affiliate to have a larger
493-24 percentage of equity interest, revenue share, or voting control
493-25 than that prescribed by Subsection (b) or (c) for a joint venture
494-1 between the company and a small, local, electronic publisher. The
494-2 larger percentage may not exceed 80 percent.
494-3 (e) An incumbent local exchange company that participates in
494-4 an electronic publishing joint venture may provide promotion,
494-5 marketing, sales, or advertising personnel or services to the joint
494-6 venture. (V.A.C.S. Art. 1446c-0, Sec. 3.559(c).)
494-7 Sec. 63.042. OTHER ELECTRONIC PUBLISHERS. (a) Except as
494-8 provided by Section 63.041:
494-9 (1) an incumbent local exchange company may not have
494-10 an officer, employee, property, or facility in common with an
494-11 entity whose principal business is publishing if the business
494-12 includes electronic publishing; and
494-13 (2) an officer or employee of an incumbent local
494-14 exchange company may not serve as a director of an entity whose
494-15 principal business is publishing if the business includes
494-16 electronic publishing.
494-17 (b) For the purposes of Subsection (a), an incumbent local
494-18 exchange company or affiliate that owns an electronic publishing
494-19 joint venture is not considered engaged in the electronic
494-20 publishing business solely because of that ownership.
494-21 (c) Except as provided by Section 63.041, an incumbent local
494-22 exchange company may not:
494-23 (1) market or sell for an entity that engages in
494-24 electronic publishing;
494-25 (2) provide a facility, service, or basic telephone
495-1 service information to an entity that engages in electronic
495-2 publishing, for use with or in connection with the provision of
495-3 electronic publishing that is disseminated by the basic telephone
495-4 service of the incumbent local exchange company or an affiliate of
495-5 the incumbent local exchange company, unless an equivalent
495-6 facility, service, or information is made available on equivalent
495-7 terms to all other entities; or
495-8 (3) hire personnel, purchase, or carry out production
495-9 for an entity that engages in electronic publishing. (V.A.C.S.
495-10 Art. 1446c-0, Sec. 3.562.)
495-11 (Sections 63.043-63.060 reserved for expansion)
495-12 SUBCHAPTER C. ELECTRONIC PUBLISHING TRANSACTIONS
495-13 Sec. 63.061. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN
495-14 INCUMBENT LOCAL EXCHANGE COMPANY AND AFFILIATE GENERALLY. (a) If
495-15 related to the provision of electronic publishing, the provision of
495-16 a facility, a service, or basic telephone service information by an
495-17 incumbent local exchange company to an affiliate or the transfer of
495-18 an asset, including personnel or something of commercial or
495-19 competitive value, from an incumbent local exchange company to an
495-20 affiliate shall be:
495-21 (1) recorded in the books and records of the incumbent
495-22 local exchange company and the affiliate;
495-23 (2) able to be audited in accordance with generally
495-24 accepted auditing standards; and
495-25 (3) done in accordance with a written contract or
496-1 tariff filed with the commission.
496-2 (b) A transfer of an asset directly related to the provision
496-3 of electronic publishing from an incumbent local exchange company
496-4 to an affiliate shall be valued at the greater of the asset's net
496-5 book cost or fair market value.
496-6 (c) A transfer of an asset related to the provision of
496-7 electronic publishing from an affiliate to the incumbent local
496-8 exchange company shall be valued at the lesser of the asset's net
496-9 book cost or fair market value.
496-10 (d) An incumbent local exchange company may not directly or
496-11 indirectly provide to a separated affiliate a facility, a service,
496-12 or basic telephone service information related to the provision of
496-13 electronic publishing unless the facility, service, or information
496-14 is made available to nonaffiliated companies on the same terms.
496-15 (V.A.C.S. Art. 1446c-0, Sec. 3.560.)
496-16 Sec. 63.062. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN
496-17 INCUMBENT LOCAL EXCHANGE COMPANY AND SEPARATED AFFILIATE. (a) If
496-18 an incumbent local exchange company provides to an affiliate a
496-19 facility, a service, or basic telephone service information subject
496-20 to Section 63.061(a) or transfers to an affiliate an asset subject
496-21 to that section and the affiliate provides the facility, service,
496-22 or information to a separated affiliate or transfers the asset to a
496-23 separated affiliate, the transaction shall be:
496-24 (1) recorded in the books and records of each entity;
496-25 (2) able to be audited in accordance with generally
497-1 accepted auditing standards; and
497-2 (3) done in accordance with a written contract or
497-3 tariff filed with the commission.
497-4 (b) A transfer of an asset directly related to the provision
497-5 of electronic publishing from an incumbent local exchange company
497-6 to an affiliate as described by Section 63.061 and then transferred
497-7 to a separated affiliate shall be valued at the greater of the
497-8 asset's net book cost or fair market value.
497-9 (c) A transfer of an asset related to the provision of
497-10 electronic publishing from a separated affiliate to an affiliate
497-11 and then transferred to the incumbent local exchange company as
497-12 described by Section 63.061 shall be valued at the lesser of the
497-13 asset's net book cost or fair market value.
497-14 (d) An affiliate may not provide directly or indirectly to a
497-15 separated affiliate a facility, a service, or basic telephone
497-16 service information related to the provision of electronic
497-17 publishing unless the facility, service, or information is made
497-18 available to nonaffiliated companies on the same terms. (V.A.C.S.
497-19 Art. 1446c-0, Sec. 3.561.)
497-20 Sec. 63.063. EXCEPTION. This subchapter does not apply to
497-21 an investment described by Section 63.005. (V.A.C.S. Art. 1446c-0,
497-22 Sec. 3.557 (part).)
497-23 (Chapters 64-100 reserved for expansion)
498-1 TITLE 3. GAS REGULATION
498-2 SUBTITLE A. GAS UTILITY REGULATORY ACT
498-3 CHAPTER 101. GENERAL PROVISIONS AND OFFICE OF
498-4 PUBLIC UTILITY COUNSEL
498-5 SUBCHAPTER A. GENERAL PROVISIONS
498-6 Sec. 101.001. SHORT TITLE
498-7 Sec. 101.002. PURPOSE AND FINDINGS
498-8 Sec. 101.003. DEFINITIONS
498-9 Sec. 101.004. PERSON DETERMINED TO BE AFFILIATE
498-10 Sec. 101.005. ADMINISTRATIVE PROCEDURE
498-11 Sec. 101.006. CUMULATIVE EFFECT; APPLICATION TO GAS
498-12 UTILITIES
498-13 Sec. 101.007. LIBERAL CONSTRUCTION
498-14 Sec. 101.008. CONSTRUCTION WITH FEDERAL AUTHORITY
498-15 (Sections 101.009-101.050 reserved for expansion)
498-16 SUBCHAPTER B. OFFICE OF PUBLIC UTILITY COUNSEL
498-17 Sec. 101.051. OFFICE OF PUBLIC UTILITY COUNSEL
498-18 Sec. 101.052. OFFICE POWERS AND DUTIES
498-19 Sec. 101.053. PROHIBITED ACTS
498-20 Sec. 101.054. PERSONNEL
498-21 CHAPTER 101. GENERAL PROVISIONS AND OFFICE OF
498-22 PUBLIC UTILITY COUNSEL
498-23 SUBCHAPTER A. GENERAL PROVISIONS
498-24 Sec. 101.001. SHORT TITLE. This subtitle may be cited as
498-25 the Gas Utility Regulatory Act. (V.A.C.S. Art. 1446e, Sec. 1.01.)
499-1 Sec. 101.002. PURPOSE AND FINDINGS. (a) This subtitle is
499-2 enacted to protect the public interest inherent in the rates and
499-3 services of gas utilities. The purpose of this subtitle is to
499-4 establish a comprehensive and adequate regulatory system for gas
499-5 utilities to assure rates, operations, and services that are just
499-6 and reasonable to the consumers and to the utilities.
499-7 (b) Gas utilities are by definition monopolies in the areas
499-8 they serve. As a result, the normal forces of competition that
499-9 regulate prices in a free enterprise society do not operate. Public
499-10 agencies regulate utility rates, operations, and services as a
499-11 substitute for competition. (V.A.C.S. Art. 1446e, Sec. 1.02.)
499-12 Sec. 101.003. DEFINITIONS. In this subtitle:
499-13 (1) "Affected person" means:
499-14 (A) a gas utility affected by an action of a
499-15 regulatory authority;
499-16 (B) a person whose utility service or rates are
499-17 affected by a proceeding before a regulatory authority; or
499-18 (C) a person who:
499-19 (i) is a competitor of a gas utility with
499-20 respect to a service performed by the utility; or
499-21 (ii) wants to enter into competition with
499-22 a gas utility.
499-23 (2) "Affiliate" means:
499-24 (A) a person who directly or indirectly owns or
499-25 holds at least five percent of the voting securities of a gas
500-1 utility;
500-2 (B) a person in a chain of successive ownership
500-3 of at least five percent of the voting securities of a gas utility;
500-4 (C) a corporation that has at least five percent
500-5 of its voting securities owned or controlled, directly or
500-6 indirectly, by a gas utility;
500-7 (D) a corporation that has at least five percent
500-8 of its voting securities owned or controlled, directly or
500-9 indirectly, by:
500-10 (i) a person who directly or indirectly
500-11 owns or controls at least five percent of the voting securities of
500-12 a gas utility; or
500-13 (ii) a person in a chain of successive
500-14 ownership of at least five percent of the voting securities of a
500-15 gas utility;
500-16 (E) a person who is an officer or director of a
500-17 gas utility or of a corporation in a chain of successive ownership
500-18 of at least five percent of the voting securities of a gas utility;
500-19 or
500-20 (F) a person determined to be an affiliate under
500-21 Section 101.004.
500-22 (3) "Allocation" means the division among
500-23 municipalities or among municipalities and unincorporated areas of
500-24 the plant, revenues, expenses, taxes, and reserves of a gas utility
500-25 used to provide gas utility service in a municipality or for a
501-1 municipality and unincorporated areas.
501-2 (4) "Corporation" means a domestic or foreign
501-3 corporation, joint-stock company, or association, and each lessee,
501-4 assignee, trustee, receiver, or other successor in interest of the
501-5 corporation, company, or association, that has any of the powers or
501-6 privileges of a corporation not possessed by an individual or
501-7 partnership. The term does not include a municipal corporation,
501-8 except as expressly provided by this subtitle.
501-9 (5) "Counsellor" means the chief executive of the
501-10 Office of Public Utility Counsel.
501-11 (6) "Facilities" means all of the plant and equipment
501-12 of a gas utility and includes the tangible and intangible property,
501-13 without limitation, owned, operated, leased, licensed, used,
501-14 controlled, or supplied for, by, or in connection with the business
501-15 of the gas utility.
501-16 (7) "Gas utility" includes a person or river authority
501-17 that owns or operates for compensation in this state equipment or
501-18 facilities to transmit or distribute combustible hydrocarbon
501-19 natural gas or synthetic natural gas for sale or resale in a manner
501-20 not subject to the jurisdiction of the Federal Energy Regulatory
501-21 Commission under the Natural Gas Act (15 U.S.C. Section 717 et
501-22 seq.). The term includes a lessee, trustee, or receiver of a gas
501-23 utility. The term does not include:
501-24 (A) a municipal corporation;
501-25 (B) a person or river authority to the extent
502-1 the person or river authority:
502-2 (i) produces, gathers, transports, or
502-3 sells natural gas or synthetic natural gas under Section 121.004 or
502-4 121.005;
502-5 (ii) distributes or sells liquefied
502-6 petroleum gas; or
502-7 (iii) transports, delivers, or sells
502-8 natural gas for fuel for irrigation wells or any other direct
502-9 agricultural use;
502-10 (C) a person to the extent the person:
502-11 (i) sells natural gas for use as vehicle
502-12 fuel;
502-13 (ii) sells natural gas to a person who
502-14 later sells the natural gas for use as vehicle fuel; or
502-15 (iii) owns or operates equipment or
502-16 facilities to sell or transport natural gas for ultimate use as
502-17 vehicle fuel; or
502-18 (D) a person not otherwise a gas utility who
502-19 furnishes gas or gas service only to itself, its employees, or its
502-20 tenants as an incident of employment or tenancy, if the gas or gas
502-21 service is not resold to or used by others.
502-22 (8) "Municipally owned utility" means a utility owned,
502-23 operated, and controlled by a municipality or by a nonprofit
502-24 corporation the directors of which are appointed by one or more
502-25 municipalities.
503-1 (9) "Order" means all or a part of a final disposition
503-2 by a regulatory authority in a matter other than rulemaking,
503-3 without regard to whether the disposition is affirmative or
503-4 negative or injunctive or declaratory. The term includes the
503-5 setting of a rate.
503-6 (10) "Person" includes an individual, a partnership of
503-7 two or more persons having a joint or common interest, a mutual or
503-8 cooperative association, and a corporation.
503-9 (11) "Proceeding" means a hearing, investigation,
503-10 inquiry, or other procedure for finding facts or making a decision
503-11 under this subtitle. The term includes a denial of relief or
503-12 dismissal of a complaint.
503-13 (12) "Rate" means:
503-14 (A) any compensation, tariff, charge, fare,
503-15 toll, rental, or classification that is directly or indirectly
503-16 demanded, observed, charged, or collected by a gas utility for a
503-17 service, product, or commodity described in the definition of gas
503-18 utility in this section; and
503-19 (B) a rule, regulation, practice, or contract
503-20 affecting the compensation, tariff, charge, fare, toll, rental, or
503-21 classification.
503-22 (13) "Regulatory authority" means either the railroad
503-23 commission or the governing body of a municipality, in accordance
503-24 with the context.
503-25 (14) "Service" has its broadest and most inclusive
504-1 meaning. The term includes any act performed, anything supplied,
504-2 and any facilities used or supplied by a gas utility in the
504-3 performance of the utility's duties under this subtitle to its
504-4 patrons, employees, other gas utilities, and the public. The term
504-5 also includes the interchange of facilities between two or more gas
504-6 utilities.
504-7 (15) "State agency" has the meaning assigned by
504-8 Section 572.002, Government Code, to the extent the state agency
504-9 must obtain the approval described by Section 31.401(a), Natural
504-10 Resources Code.
504-11 (16) "Test year" means the most recent 12 months,
504-12 beginning on the first day of a calendar or fiscal year quarter,
504-13 for which operating data for a gas utility are available.
504-14 (V.A.C.S. Art. 1446e, Secs. 1.03(1), (3), (4), (6), (7), (8)
504-15 (part), (9), (10), (11), (12), (13), (14), (15), (16), (17).)
504-16 Sec. 101.004. PERSON DETERMINED TO BE AFFILIATE. (a) The
504-17 railroad commission may determine that a person is an affiliate for
504-18 purposes of this subtitle if the railroad commission after notice
504-19 and hearing finds that the person:
504-20 (1) actually exercises substantial influence or
504-21 control over the policies and actions of a gas utility;
504-22 (2) is a person over which a gas utility exercises the
504-23 control described by Subdivision (1);
504-24 (3) is under common control with a gas utility; or
504-25 (4) actually exercises substantial influence over the
505-1 policies and actions of a gas utility in conjunction with one or
505-2 more persons with whom the person is related by ownership or blood
505-3 relationship, or by action in concert, that together they are
505-4 affiliated with the gas utility within the meaning of this section
505-5 even though neither person may qualify as an affiliate
505-6 individually.
505-7 (b) For purposes of Subsection (a)(3), "common control with
505-8 a gas utility" means the direct or indirect possession of the power
505-9 to direct or cause the direction of the management and policies of
505-10 another, without regard to whether that power is established
505-11 through ownership or voting of securities or by any other direct or
505-12 indirect means. (V.A.C.S. Art. 1446e, Sec. 1.03(8) (part).)
505-13 Sec. 101.005. ADMINISTRATIVE PROCEDURE. Chapter 2001,
505-14 Government Code, applies to a proceeding under this subtitle except
505-15 to the extent inconsistent with this subtitle. (V.A.C.S.
505-16 Art. 1446e, Sec. 1.04.)
505-17 Sec. 101.006. CUMULATIVE EFFECT; APPLICATION TO GAS
505-18 UTILITIES. (a) This subtitle is cumulative of laws existing on
505-19 September 1, 1983, relating to the jurisdiction, power, or
505-20 authority of the railroad commission over a gas utility, and,
505-21 except as specifically in conflict with this subtitle, that
505-22 jurisdiction, power, and authority are not limited by this
505-23 subtitle.
505-24 (b) This subtitle applies to all gas utilities, including a
505-25 gas utility that is under the jurisdiction, power, or authority of
506-1 the railroad commission in accordance with a law other than this
506-2 subtitle. (V.A.C.S. Art. 1446e, Sec. 2.01(c).)
506-3 Sec. 101.007. LIBERAL CONSTRUCTION. This subtitle shall be
506-4 construed liberally to promote the effectiveness and efficiency of
506-5 regulation of gas utilities to the extent that this construction
506-6 preserves the validity of this subtitle and its provisions.
506-7 (V.A.C.S. Art. 1446e, Sec. 10.04 (part).)
506-8 Sec. 101.008. CONSTRUCTION WITH FEDERAL AUTHORITY. This
506-9 subtitle shall be construed to apply so as not to conflict with any
506-10 authority of the United States. (V.A.C.S. Art. 1446e, Sec. 10.04
506-11 (part).)
506-12 (Sections 101.009-101.050 reserved for expansion)
506-13 SUBCHAPTER B. OFFICE OF PUBLIC UTILITY COUNSEL
506-14 Sec. 101.051. OFFICE OF PUBLIC UTILITY COUNSEL. The
506-15 independent office of public utility counsel represents the
506-16 interests of residential consumers. (V.A.C.S. Art. 1446e, Sec.
506-17 9.07(a).)
506-18 Sec. 101.052. OFFICE POWERS AND DUTIES. (a) The office:
506-19 (1) may appear or intervene as a party or otherwise
506-20 represent residential consumers, as a class, in appeals to the
506-21 railroad commission only at the written request of an affected
506-22 municipality's governing body;
506-23 (2) may initiate or intervene as a matter of right or
506-24 otherwise appear in a judicial proceeding that involves an action
506-25 taken by the railroad commission in a proceeding in which the
507-1 office was a party;
507-2 (3) is entitled to the same access as a party, other
507-3 than railroad commission staff, to records gathered by the railroad
507-4 commission under Section 102.203;
507-5 (4) is entitled to discovery of any nonprivileged
507-6 matter that is relevant to the subject matter of a proceeding or
507-7 petition before the railroad commission;
507-8 (5) may represent an individual residential consumer
507-9 with respect to the consumer's disputed complaint concerning
507-10 utility services that is unresolved before the railroad commission;
507-11 and
507-12 (6) may recommend legislation to the legislature that
507-13 the office determines would positively affect the interests of
507-14 residential consumers.
507-15 (b) The office may represent only as a class the residential
507-16 consumers of a municipality that makes a request under Subsection
507-17 (a)(1).
507-18 (c) This section does not limit the authority of the
507-19 railroad commission to represent residential consumers.
507-20 (d) The appearance of the counsellor in a proceeding does
507-21 not preclude the appearance of other parties on behalf of
507-22 residential consumers. The counsellor may not be grouped with any
507-23 other party. (V.A.C.S. Art. 1446e, Secs. 9.07(f), (g), (h).)
507-24 Sec. 101.053. PROHIBITED ACTS. (a) The counsellor may not:
507-25 (1) have a direct or indirect interest in a gas
508-1 utility company regulated under this subtitle; or
508-2 (2) provide legal services directly or indirectly to
508-3 or be employed in any capacity by a gas utility company regulated
508-4 under this subtitle, its parent, or its subsidiary companies,
508-5 corporations, or cooperatives.
508-6 (b) The prohibition under Subsection (a) applies during the
508-7 period of the counsellor's service and until the first anniversary
508-8 of the date the counsellor ceases to serve as counsellor.
508-9 (c) This section does not prohibit a person from otherwise
508-10 engaging in the private practice of law after the person ceases to
508-11 serve as counsellor. (V.A.C.S. Art. 1446e, Sec. 9.07(e).)
508-12 Sec. 101.054. PERSONNEL. (a) The counsellor may employ
508-13 lawyers, economists, engineers, consultants, statisticians,
508-14 accountants, clerical staff, and other employees as the counsellor
508-15 determines necessary to carry out this subchapter.
508-16 (b) An employee receives compensation as prescribed by the
508-17 legislature from the assessment imposed by Subchapter A, Chapter
508-18 16. (V.A.C.S. Art. 1446e, Sec. 9.07(c).)
508-19 CHAPTER 102. JURISDICTION AND POWERS OF
508-20 RAILROAD COMMISSION AND OTHER REGULATORY AUTHORITIES
508-21 SUBCHAPTER A. GENERAL POWERS OF RAILROAD COMMISSION
508-22 Sec. 102.001. RAILROAD COMMISSION JURISDICTION
508-23 Sec. 102.002. LIMITATION ON RAILROAD COMMISSION
508-24 JURISDICTION
509-1 Sec. 102.003. RAILROAD COMMISSION POWERS RELATING
509-2 TO REPORTS
509-3 Sec. 102.004. REPORT OF SUBSTANTIAL INTEREST
509-4 Sec. 102.005. ASSISTANCE TO MUNICIPALITY
509-5 (Sections 102.006-102.050 reserved for expansion)
509-6 SUBCHAPTER B. RESTRICTIONS ON CERTAIN TRANSACTIONS
509-7 Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS;
509-8 RAILROAD COMMISSION CONSIDERATION
509-9 Sec. 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
509-10 UTILITY
509-11 Sec. 102.053. REPORT OF LOAN TO STOCKHOLDERS
509-12 Sec. 102.054. APPROVAL OF CONVEYANCE OF GAS RESERVE RIGHTS
509-13 (Sections 102.055-102.100 reserved for expansion)
509-14 SUBCHAPTER C. RECORDS
509-15 Sec. 102.101. RECORDS OF GAS UTILITY
509-16 Sec. 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
509-17 STATE
509-18 Sec. 102.103. COMMUNICATIONS WITH REGULATORY AUTHORITY
509-19 Sec. 102.104. JURISDICTION OVER AFFILIATE
509-20 (Sections 102.105-102.150 reserved for expansion)
509-21 SUBCHAPTER D. REQUIRED REPORTS AND FILINGS
509-22 Sec. 102.151. SCHEDULE FILINGS
509-23 Sec. 102.152. DEPRECIATION ACCOUNT
509-24 Sec. 102.153. ACCOUNTS OF PROFITS AND LOSSES
509-25 Sec. 102.154. REPORT OF CERTAIN EXPENSES
510-1 (Sections 102.155-102.200 reserved for expansion)
510-2 SUBCHAPTER E. AUDITS AND INSPECTIONS
510-3 Sec. 102.201. INQUIRY INTO MANAGEMENT AND AFFAIRS
510-4 Sec. 102.202. AUDIT OF ACCOUNTS
510-5 Sec. 102.203. INSPECTION
510-6 Sec. 102.204. EXAMINATIONS UNDER OATH
510-7 Sec. 102.205. ENTERING PREMISES OF GAS UTILITY
510-8 Sec. 102.206. PRODUCTION OF OUT-OF-STATE RECORDS
510-9 (Sections 102.207-102.250 reserved for expansion)
510-10 SUBCHAPTER F. GENERAL PROVISIONS RELATING TO PROCEEDINGS
510-11 BEFORE REGULATORY AUTHORITY
510-12 Sec. 102.251. RECORD OF PROCEEDING
510-13 Sec. 102.252. RIGHT TO BE HEARD
510-14 CHAPTER 102. JURISDICTION AND POWERS OF
510-15 RAILROAD COMMISSION AND OTHER REGULATORY AUTHORITIES
510-16 SUBCHAPTER A. GENERAL POWERS OF RAILROAD COMMISSION
510-17 Sec. 102.001. RAILROAD COMMISSION JURISDICTION. (a) The
510-18 railroad commission has exclusive original jurisdiction over the
510-19 rates and services of a gas utility distributing natural gas or
510-20 synthetic natural gas in areas outside a municipality. The
510-21 railroad commission also has exclusive original jurisdiction over
510-22 the rates and services of a gas utility that transmits, transports,
510-23 delivers, or sells natural gas or synthetic natural gas to a gas
510-24 utility that distributes the gas to the public.
510-25 (b) The railroad commission has exclusive appellate
511-1 jurisdiction to review an order or ordinance of a municipality as
511-2 provided by this subtitle. (V.A.C.S. Art. 1446e, Sec. 2.01(b).)
511-3 Sec. 102.002. LIMITATION ON RAILROAD COMMISSION
511-4 JURISDICTION. Except as otherwise provided by this subtitle, this
511-5 subtitle does not authorize the railroad commission to:
511-6 (1) regulate or supervise a rate or service of a
511-7 municipally owned utility; or
511-8 (2) affect the jurisdiction, power, or duty of a
511-9 municipality that has elected to regulate and supervise a gas
511-10 utility in the municipality. (V.A.C.S. Art. 1446e, Sec. 2.02.)
511-11 Sec. 102.003. RAILROAD COMMISSION POWERS RELATING TO
511-12 REPORTS. The railroad commission may:
511-13 (1) require a gas utility to report to the railroad
511-14 commission information relating to the gas utility and an affiliate
511-15 inside or outside this state as useful in administering this
511-16 subtitle;
511-17 (2) establish the form for a report;
511-18 (3) determine the time for a report and the frequency
511-19 with which the report is to be made;
511-20 (4) require that a report be made under oath;
511-21 (5) require the filing with the railroad commission of
511-22 a copy of:
511-23 (A) a contract or arrangement between a gas
511-24 utility and an affiliate;
511-25 (B) a report filed with a federal agency or a
512-1 governmental agency or body of another state; and
512-2 (C) an annual report that shows each payment of
512-3 compensation, other than salary or wages subject to federal income
512-4 tax withholding:
512-5 (i) to residents of this state;
512-6 (ii) with respect to legal,
512-7 administrative, or legislative matters in this state; or
512-8 (iii) for representation before the
512-9 legislature of this state or any governmental agency or body; and
512-10 (6) require that a contract or arrangement described
512-11 by Subdivision (5)(A) that is not in writing be reduced to writing
512-12 and filed with the railroad commission. (V.A.C.S. Art. 1446e, Sec.
512-13 4.02.)
512-14 Sec. 102.004. REPORT OF SUBSTANTIAL INTEREST. The railroad
512-15 commission may require disclosure of the identity and respective
512-16 interests of each owner of at least one percent of the voting
512-17 securities of a gas utility or its affiliate. (V.A.C.S.
512-18 Art. 1446e, Sec. 7.02.)
512-19 Sec. 102.005. ASSISTANCE TO MUNICIPALITY. On request of a
512-20 municipality, the railroad commission may advise and assist the
512-21 municipality with respect to a question or proceeding arising under
512-22 this subtitle. Assistance provided by the railroad commission may
512-23 include aid to a municipality on a matter pending before the
512-24 railroad commission, a court, or the municipality's governing body,
512-25 such as making a staff member available as a witness or otherwise
513-1 providing evidence. (V.A.C.S. Art. 1446e, Sec. 3.04.)
513-2 (Sections 102.006-102.050 reserved for expansion)
513-3 SUBCHAPTER B. RESTRICTIONS ON CERTAIN TRANSACTIONS
513-4 Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS; RAILROAD
513-5 COMMISSION CONSIDERATION. (a) Unless a gas utility reports the
513-6 transaction to the railroad commission within a reasonable time,
513-7 the gas utility may not:
513-8 (1) sell, acquire, or lease a plant as an operating
513-9 unit or system in this state for a total consideration of more than
513-10 $100,000; or
513-11 (2) merge or consolidate with another gas utility
513-12 operating in this state.
513-13 (b) On the filing of a report with the railroad commission,
513-14 the railroad commission shall investigate the transaction described
513-15 by Subsection (a), with or without a public hearing, to determine
513-16 whether the action is consistent with the public interest. In
513-17 reaching its determination, the railroad commission shall consider
513-18 the reasonable value of the property, facilities, or securities to
513-19 be acquired, disposed of, merged, or consolidated.
513-20 (c) If the railroad commission finds that a transaction is
513-21 not in the public interest, the railroad commission shall take the
513-22 effect of the transaction into consideration in ratemaking
513-23 proceedings and disallow the effect of the transaction if the
513-24 transaction will unreasonably affect rates or service.
513-25 (d) This section does not apply to:
514-1 (1) the purchase of a unit of property for
514-2 replacement; or
514-3 (2) an addition to the facilities of a gas utility by
514-4 construction. (V.A.C.S. Art. 1446e, Sec. 6.01.)
514-5 Sec. 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
514-6 UTILITY. A gas utility may not purchase voting stock in another
514-7 gas utility doing business in this state unless the utility reports
514-8 the purchase to the railroad commission. (V.A.C.S. Art. 1446e,
514-9 Sec. 6.02.)
514-10 Sec. 102.053. REPORT OF LOAN TO STOCKHOLDERS. A gas utility
514-11 may not loan money, stocks, bonds, notes, or other evidence of
514-12 indebtedness to a person who directly or indirectly owns or holds
514-13 any stock of the gas utility unless the gas utility reports the
514-14 transaction to the railroad commission within a reasonable time.
514-15 (V.A.C.S. Art. 1446e, Sec. 6.03.)
514-16 Sec. 102.054. APPROVAL OF CONVEYANCE OF GAS RESERVE RIGHTS.
514-17 A gas utility may not sell, convey, bank, or assign rights to a gas
514-18 reserve to a utility or an interstate pipeline without the prior
514-19 approval of the railroad commission. (V.A.C.S. Art. 1446e, Sec.
514-20 6.04.)
514-21 (Sections 102.055-102.100 reserved for expansion)
514-22 SUBCHAPTER C. RECORDS
514-23 Sec. 102.101. RECORDS OF GAS UTILITY. (a) Each gas utility
514-24 shall keep and provide to the regulatory authority, in the manner
514-25 and form prescribed by the railroad commission, uniform accounts of
515-1 all business transacted by the gas utility.
515-2 (b) The railroad commission may prescribe the form of books,
515-3 accounts, records, and memoranda to be kept by a gas utility,
515-4 including:
515-5 (1) the books, accounts, records, and memoranda of:
515-6 (A) the provision of and capacity for service;
515-7 and
515-8 (B) the receipt and expenditure of money; and
515-9 (2) any other form, record, and memorandum that the
515-10 railroad commission considers necessary to carry out this subtitle.
515-11 (c) For a gas utility subject to regulation by a federal
515-12 regulatory agency, compliance with the system of accounts
515-13 prescribed for the particular class of utilities by the federal
515-14 agency may be considered sufficient compliance with the system
515-15 prescribed by the railroad commission. The railroad commission may
515-16 prescribe the form of books, accounts, records, and memoranda
515-17 covering information in addition to that required by the federal
515-18 agency. The system of accounts and the form of books, accounts,
515-19 records, and memoranda prescribed by the railroad commission for a
515-20 gas utility or class of utilities may not be inconsistent with the
515-21 systems and forms established by a federal agency for that gas
515-22 utility or class of utilities.
515-23 (d) Each gas utility shall:
515-24 (1) keep and provide its books, accounts, records, and
515-25 memoranda accurately and faithfully in the manner and form
516-1 prescribed by the railroad commission; and
516-2 (2) comply with the directions of the regulatory
516-3 authority relating to the books, accounts, records, and memoranda.
516-4 (e) In this section, "gas utility" includes a municipally
516-5 owned utility. (V.A.C.S. Art. 1446e, Secs. 4.01(a), (d) (part),
516-6 (f).)
516-7 Sec. 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
516-8 STATE. (a) Each gas utility shall maintain an office in this
516-9 state in a county in which some part of the utility's property is
516-10 located. The gas utility shall keep in this office all books,
516-11 accounts, records, and memoranda required by the railroad
516-12 commission to be kept in this state.
516-13 (b) A book, account, record, or memorandum required by the
516-14 regulatory authority to be kept in this state may not be removed
516-15 from this state except as prescribed by the railroad commission.
516-16 (V.A.C.S. Art. 1446e, Sec. 4.07.)
516-17 Sec. 102.103. COMMUNICATIONS WITH REGULATORY AUTHORITY.
516-18 (a) The regulatory authority shall adopt rules governing
516-19 communications with the regulatory authority or a member or
516-20 employee of the regulatory authority by:
516-21 (1) a gas utility;
516-22 (2) an affiliate; or
516-23 (3) a representative of a gas utility or affiliate.
516-24 (b) A record of a communication must contain:
516-25 (1) the name of the person contacting the regulatory
517-1 authority or member or employee of the regulatory authority;
517-2 (2) the name of the business entity represented;
517-3 (3) a brief description of the subject matter of the
517-4 communication; and
517-5 (4) the action, if any, requested by the gas utility,
517-6 affiliate, or representative.
517-7 (c) Records compiled under Subsection (b) shall be available
517-8 to the public monthly. (V.A.C.S. Art. 1446e, Sec. 4.08.)
517-9 Sec. 102.104. JURISDICTION OVER AFFILIATE. The railroad
517-10 commission has jurisdiction over an affiliate that has a
517-11 transaction with a gas utility under the railroad commission's
517-12 jurisdiction to the extent of access to an account or a record of
517-13 the affiliate relating to the transaction, including an account or
517-14 a record of joint or general expenses, any portion of which may be
517-15 applicable to the transaction. (V.A.C.S. Art. 1446e, Sec. 7.01.)
517-16 (Sections 102.105-102.150 reserved for expansion)
517-17 SUBCHAPTER D. REQUIRED REPORTS AND FILINGS
517-18 Sec. 102.151. SCHEDULE FILINGS. (a) A gas utility shall
517-19 file with each regulatory authority schedules showing all rates
517-20 that are:
517-21 (1) subject to the regulatory authority's original or
517-22 appellate jurisdiction; and
517-23 (2) in effect for a gas utility service, product, or
517-24 commodity offered by the gas utility.
517-25 (b) The gas utility shall file as a part of the schedules
518-1 required under Subsection (a) each rule or regulation that relates
518-2 to or affects:
518-3 (1) a rate of the gas utility; or
518-4 (2) a gas utility service, product, or commodity
518-5 furnished by the gas utility. (V.A.C.S. Art. 1446e, Sec. 4.06.)
518-6 Sec. 102.152. DEPRECIATION ACCOUNT. The railroad commission
518-7 shall require each gas utility or municipally owned utility to
518-8 carry a proper and adequate depreciation account in accordance
518-9 with:
518-10 (1) the rates and methods prescribed by the railroad
518-11 commission under Section 104.054; and
518-12 (2) any other rule the railroad commission adopts.
518-13 (V.A.C.S. Art. 1446e, Secs. 4.01(b) (part), (f).)
518-14 Sec. 102.153. ACCOUNTS OF PROFITS AND LOSSES. A gas utility
518-15 or municipally owned utility shall keep separate accounts showing
518-16 profits or losses from the sale or lease of merchandise, including
518-17 an appliance, a fixture, or equipment. (V.A.C.S. Art. 1446e, Secs.
518-18 4.01(c) (part), (f).)
518-19 Sec. 102.154. REPORT OF CERTAIN EXPENSES. A regulatory
518-20 authority may require a gas utility to annually report the
518-21 utility's expenditures for:
518-22 (1) business gifts and entertainment; and
518-23 (2) advertising or public relations, including
518-24 expenditures for institutional and consumption-inducing purposes.
518-25 (V.A.C.S. Art. 1446e, Sec. 4.04 (part).)
519-1 (Sections 102.155-102.200 reserved for expansion)
519-2 SUBCHAPTER E. AUDITS AND INSPECTIONS
519-3 Sec. 102.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A
519-4 regulatory authority may inquire into the management and affairs of
519-5 each gas utility and shall keep itself informed as to the manner
519-6 and method in which each gas utility is managed and its affairs are
519-7 conducted. (V.A.C.S. Art. 1446e, Sec. 4.03(c).)
519-8 Sec. 102.202. AUDIT OF ACCOUNTS. A regulatory authority may
519-9 require the examination and audit of the accounts of a gas or
519-10 municipally owned utility. (V.A.C.S. Art. 1446e, Secs. 4.01(d)
519-11 (part), (f).)
519-12 Sec. 102.203. INSPECTION. At a reasonable time for a
519-13 reasonable purpose, a regulatory authority and, to the extent
519-14 authorized by the regulatory authority, its counsel, agent, or
519-15 employee may:
519-16 (1) inspect and obtain copies of the papers, books,
519-17 accounts, documents, and other business records of a gas utility
519-18 within its jurisdiction; and
519-19 (2) inspect the plant, equipment, and other property
519-20 of a gas utility within its jurisdiction. (V.A.C.S. Art. 1446e,
519-21 Sec. 4.03(a) (part).)
519-22 Sec. 102.204. EXAMINATIONS UNDER OATH. In connection with
519-23 an investigation taken under Section 102.203, the regulatory
519-24 authority may:
519-25 (1) examine under oath an officer, agent, or employee
520-1 of a gas utility; or
520-2 (2) authorize the person conducting the action to make
520-3 the examination under oath. (V.A.C.S. Art. 1446e, Sec. 4.03(a)
520-4 (part).)
520-5 Sec. 102.205. ENTERING PREMISES OF GAS UTILITY. (a) A
520-6 member, agent, or employee of a regulatory authority may enter the
520-7 premises occupied by a gas utility to conduct an inspection,
520-8 examination, or test or to exercise any other authority provided by
520-9 this subtitle.
520-10 (b) A member, agent, or employee of the regulatory authority
520-11 may act under this section only during reasonable hours and after
520-12 reasonable notice to the gas utility.
520-13 (c) A gas utility is entitled to be represented when an
520-14 inspection, examination, or test is conducted on its premises. The
520-15 gas utility is entitled to a reasonable time to secure a
520-16 representative before the inspection, examination, or test begins.
520-17 (V.A.C.S. Art. 1446e, Secs. 4.03(b), 4.10(a) (part).)
520-18 Sec. 102.206. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A
520-19 regulatory authority may require, by order or subpoena served on a
520-20 gas utility, the production, at the time and place in this state
520-21 that the regulatory authority designates, of any books, accounts,
520-22 papers, or records kept by that gas utility outside this state or,
520-23 if ordered by the railroad commission, verified copies of the
520-24 books, accounts, papers, or records.
520-25 (b) A gas utility that fails or refuses to comply with an
521-1 order or subpoena under this section violates this subtitle.
521-2 (V.A.C.S. Art. 1446e, Sec. 4.03(a) (part).)
521-3 (Sections 102.207-102.250 reserved for expansion)
521-4 SUBCHAPTER F. GENERAL PROVISIONS RELATING TO PROCEEDINGS
521-5 BEFORE REGULATORY AUTHORITY
521-6 Sec. 102.251. RECORD OF PROCEEDING. The regulatory
521-7 authority shall keep a record of each proceeding before the
521-8 authority. (V.A.C.S. Art. 1446e, Sec. 10.02 (part).)
521-9 Sec. 102.252. RIGHT TO BE HEARD. Each party to a proceeding
521-10 before a regulatory authority is entitled to be heard by attorney
521-11 or in person. (V.A.C.S. Art. 1446e, Sec. 10.02 (part).)
521-12 CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
521-13 SUBCHAPTER A. GENERAL PROVISIONS
521-14 Sec. 103.001. MUNICIPAL JURISDICTION
521-15 Sec. 103.002. FRANCHISES
521-16 (Sections 103.003-103.020 reserved for expansion)
521-17 SUBCHAPTER B. RATE DETERMINATION
521-18 Sec. 103.021. MUNICIPAL PROCEEDINGS
521-19 Sec. 103.022. RATE ASSISTANCE AND COST REIMBURSEMENT
521-20 Sec. 103.023. MUNICIPAL STANDING
521-21 Sec. 103.024. JUDICIAL REVIEW
521-22 (Sections 103.025-103.050 reserved for expansion)
521-23 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
521-24 Sec. 103.051. APPEAL BY PARTY
521-25 Sec. 103.052. APPEAL BY RESIDENTS
522-1 Sec. 103.053. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY
522-2 Sec. 103.054. FILING OF APPEAL
522-3 Sec. 103.055. HEARING AND ORDER
522-4 Sec. 103.056. APPLICABILITY OF RATES
522-5 CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
522-6 SUBCHAPTER A. GENERAL PROVISIONS
522-7 Sec. 103.001. MUNICIPAL JURISDICTION. To provide fair,
522-8 just, and reasonable rates and adequate and efficient services, the
522-9 governing body of a municipality has exclusive original
522-10 jurisdiction over the rates, operations, and services of a gas
522-11 utility within the municipality, subject to the limitations imposed
522-12 by this subtitle. (V.A.C.S. Art. 1446e, Sec. 2.01(a).)
522-13 Sec. 103.002. FRANCHISES. (a) This subtitle does not
522-14 restrict the rights and powers of a municipality to grant or refuse
522-15 a franchise to use the streets and alleys in the municipality or to
522-16 make a statutory charge for that use.
522-17 (b) A municipality that performs a regulatory function under
522-18 this subtitle may make each charge that is authorized by:
522-19 (1) this subtitle; or
522-20 (2) the applicable franchise agreement.
522-21 (c) A franchise agreement may not limit or interfere with a
522-22 power conferred on the railroad commission by this subtitle.
522-23 (V.A.C.S. Art. 1446e, Sec. 3.01.)
522-24 (Sections 103.003-103.020 reserved for expansion)
523-1 SUBCHAPTER B. RATE DETERMINATION
523-2 Sec. 103.021. MUNICIPAL PROCEEDINGS. (a) A municipality
523-3 regulating a gas utility under this subtitle shall require the
523-4 utility to submit information as necessary to make a reasonable
523-5 determination of rate base, expenses, investment, and rate of
523-6 return in the municipality.
523-7 (b) A municipality shall make a determination under
523-8 Subsection (a) using the procedures and requirements prescribed by
523-9 this subtitle.
523-10 (c) A municipality shall retain personnel necessary to make
523-11 the determination of reasonable rates. (V.A.C.S. Art. 1446e, Sec.
523-12 3.02.)
523-13 Sec. 103.022. RATE ASSISTANCE AND COST REIMBURSEMENT.
523-14 (a) The governing body of a municipality participating in or
523-15 conducting a ratemaking proceeding may engage rate consultants,
523-16 accountants, auditors, attorneys, and engineers to:
523-17 (1) conduct investigations, present evidence, and
523-18 advise and represent the governing body; and
523-19 (2) assist the governing body with litigation or a gas
523-20 utility ratemaking proceeding before a regulatory authority or
523-21 court.
523-22 (b) The gas utility in the ratemaking proceeding shall
523-23 reimburse the governing body of the municipality for the reasonable
523-24 cost of the services of a person engaged under Subsection (a) to
523-25 the extent the applicable regulatory authority determines
524-1 reasonable. (V.A.C.S. Art. 1446e, Sec. 3.03(a).)
524-2 Sec. 103.023. MUNICIPAL STANDING. (a) A municipality has
524-3 standing in each case before the railroad commission that relates
524-4 to a gas utility's rates and services in the municipality.
524-5 (b) A municipality's standing is subject to the right of the
524-6 railroad commission to consolidate that municipality with another
524-7 party on an issue of common interest. (V.A.C.S. Art. 1446e, Sec.
524-8 3.03(b) (part).)
524-9 Sec. 103.024. JUDICIAL REVIEW. A municipality is entitled
524-10 to judicial review of a railroad commission order relating to a gas
524-11 utility's rates and services in a municipality as provided by
524-12 Section 105.001. (V.A.C.S. Art. 1446e, Sec. 3.03(b) (part).)
524-13 (Sections 103.025-103.050 reserved for expansion)
524-14 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
524-15 Sec. 103.051. APPEAL BY PARTY. A party to a rate proceeding
524-16 before a municipality's governing body may appeal the governing
524-17 body's decision to the railroad commission. (V.A.C.S. Art. 1446e,
524-18 Sec. 3.05(a).)
524-19 Sec. 103.052. APPEAL BY RESIDENTS. The residents of a
524-20 municipality may appeal to the railroad commission the decision of
524-21 the municipality's governing body in a rate proceeding by filing
524-22 with the railroad commission a petition for review signed by a
524-23 number of qualified voters of the municipality equal to at least
524-24 the lesser of 20,000 or 10 percent of the qualified voters of the
524-25 municipality. (V.A.C.S. Art. 1446e, Sec. 3.05(b).)
525-1 Sec. 103.053. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY.
525-2 (a) The ratepayers of a municipally owned utility who are outside
525-3 the municipality may appeal to the railroad commission an action of
525-4 the municipality's governing body affecting the municipally owned
525-5 utility's rates by filing with the railroad commission a petition
525-6 for review signed by a number of ratepayers served by the utility
525-7 outside the municipality equal to at least the lesser of 10,000 or
525-8 five percent of those ratepayers.
525-9 (b) A petition for review is properly signed if signed by a
525-10 person or the spouse of a person in whose name residential utility
525-11 service is carried.
525-12 (c) For purposes of this section, each person who receives a
525-13 separate bill is a ratepayer. A person who receives more than one
525-14 bill may not be counted as more than one ratepayer. (V.A.C.S.
525-15 Art. 1446e, Sec. 3.05(c).)
525-16 Sec. 103.054. FILING OF APPEAL. (a) An appeal under this
525-17 subchapter is initiated by filing a petition for review with the
525-18 railroad commission and serving a copy of the petition on each
525-19 party to the original rate proceeding.
525-20 (b) The appeal must be initiated not later than the 30th day
525-21 after the date of the final decision by the governing body of the
525-22 municipality. (V.A.C.S. Art. 1446e, Sec. 3.05(d).)
525-23 Sec. 103.055. HEARING AND ORDER. (a) An appeal under this
525-24 subchapter is de novo and based on the test year presented to the
525-25 municipality adjusted for known changes and conditions that are
526-1 measurable with reasonable accuracy.
526-2 (b) The railroad commission shall enter a final order
526-3 establishing the rates the railroad commission determines the
526-4 municipality should have set in the ordinance to which the appeal
526-5 applies.
526-6 (c) If the railroad commission fails to enter a final order
526-7 within 185 days after the date the appeal is perfected, the rates
526-8 proposed by the gas utility are considered to be approved by the
526-9 railroad commission and take effect on the expiration of the
526-10 185-day period. (V.A.C.S. Art. 1446e, Sec. 3.05(e) (part).)
526-11 Sec. 103.056. APPLICABILITY OF RATES. Temporary or
526-12 permanent rates set by the railroad commission are prospective and
526-13 observed from the date of the applicable railroad commission order,
526-14 except an interim rate order necessary to provide a gas utility the
526-15 opportunity to avoid confiscation during the period beginning on
526-16 the date a petition for review is filed with the railroad
526-17 commission and ending on the date of a final order establishing
526-18 rates. (V.A.C.S. Art. 1446e, Sec. 3.05(e) (part).)
526-19 CHAPTER 104. RATES AND SERVICES
526-20 SUBCHAPTER A. GENERAL PROVISIONS
526-21 Sec. 104.001. AUTHORIZATION TO ESTABLISH AND REGULATE
526-22 RATES
526-23 Sec. 104.002. COMPLIANCE WITH SUBTITLE
526-24 Sec. 104.003. JUST AND REASONABLE RATES
526-25 Sec. 104.004. UNREASONABLE PREFERENCE OR PREJUDICE PROHIBITED
527-1 Sec. 104.005. EQUALITY OF RATES AND SERVICES
527-2 Sec. 104.006. RATES FOR AREA NOT IN MUNICIPALITY
527-3 Sec. 104.007. DISCRIMINATION AND RESTRICTION ON COMPETITION
527-4 Sec. 104.008. BURDEN OF PROOF
527-5 (Sections 104.009-104.050 reserved for expansion)
527-6 SUBCHAPTER B. COMPUTATION OF RATES
527-7 Sec. 104.051. ESTABLISHING OVERALL REVENUES
527-8 Sec. 104.052. ESTABLISHING FAIR RATE OF RETURN
527-9 Sec. 104.053. COMPONENTS OF ADJUSTED VALUE OF INVESTED
527-10 CAPITAL
527-11 Sec. 104.054. DEPRECIATION, AMORTIZATION, AND DEPLETION
527-12 Sec. 104.055. NET INCOME; ALLOWABLE EXPENSES
527-13 Sec. 104.056. TREATMENT OF CERTAIN TAX BENEFITS
527-14 Sec. 104.057. CONSIDERATION OF CERTAIN EXPENSES
527-15 Sec. 104.058. CONSIDERATION OF PROFIT OR LOSS FROM SALE
527-16 OR LEASE OF MERCHANDISE
527-17 (Sections 104.059-104.100 reserved for expansion)
527-18 SUBCHAPTER C. RATE CHANGES PROPOSED BY UTILITY
527-19 Sec. 104.101. DEFINITION
527-20 Sec. 104.102. STATEMENT OF INTENT TO INCREASE RATES
527-21 Sec. 104.103. NOTICE OF INTENT TO INCREASE RATES
527-22 Sec. 104.104. EARLY EFFECTIVE DATE OF RATE INCREASE
527-23 Sec. 104.105. DETERMINATION OF PROPRIETY OF RATE CHANGE;
527-24 HEARING
527-25 Sec. 104.106. PREFERENCE TO HEARING
528-1 Sec. 104.107. RATE SUSPENSION; DEADLINE
528-2 Sec. 104.108. TEMPORARY RATES
528-3 Sec. 104.109. BONDED RATES
528-4 Sec. 104.110. ESTABLISHMENT OF FINAL RATES
528-5 Sec. 104.111. APPROVAL OF DECREASE IN RATES
528-6 (Sections 104.112-104.150 reserved for expansion)
528-7 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
528-8 Sec. 104.151. UNREASONABLE OR VIOLATIVE EXISTING RATES
528-9 Sec. 104.152. INVESTIGATING COSTS OF OBTAINING SERVICE
528-10 FROM ANOTHER SOURCE
528-11 (Sections 104.153-104.200 reserved for expansion)
528-12 SUBCHAPTER E. RATES FOR GOVERNMENTAL ENTITIES
528-13 Sec. 104.201. TRANSPORTATION RATES BETWEEN GAS UTILITY OR
528-14 MUNICIPALLY OWNED UTILITY AND STATE AGENCY
528-15 Sec. 104.202. EXCLUDED EXPENSES
528-16 Sec. 104.203. PAYMENT IN LIEU OF TAX
528-17 (Sections 104.204-104.250 reserved for expansion)
528-18 SUBCHAPTER F. SERVICES
528-19 Sec. 104.251. GENERAL STANDARD
528-20 Sec. 104.252. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
528-21 STANDARDS
528-22 Sec. 104.253. RULE OR STANDARD
528-23 Sec. 104.254. SERVICE
528-24 Sec. 104.255. BILLING
529-1 Sec. 104.256. EXAMINATION AND TEST OF INSTRUMENT OR EQUIPMENT;
529-2 INSPECTION
529-3 Sec. 104.257. INSPECTION FOR CONSUMER
529-4 CHAPTER 104. RATES AND SERVICES
529-5 SUBCHAPTER A. GENERAL PROVISIONS
529-6 Sec. 104.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES.
529-7 (a) The railroad commission is vested with all the authority and
529-8 power of this state to ensure compliance with the obligations of
529-9 gas utilities in this subtitle.
529-10 (b) The regulatory authority may establish and regulate
529-11 rates of a gas utility and may adopt rules for determining:
529-12 (1) the classification of customers and services; and
529-13 (2) the applicability of rates.
529-14 (c) A rule or order of the regulatory authority may not
529-15 conflict with a ruling of a federal regulatory body. (V.A.C.S.
529-16 Art. 1446e, Sec. 5.01.)
529-17 Sec. 104.002. COMPLIANCE WITH SUBTITLE. A gas utility may
529-18 not:
529-19 (1) charge, collect, or receive a rate for utility
529-20 service except as provided by this subtitle; or
529-21 (2) impose a rule or regulation except as provided by
529-22 this subtitle. (V.A.C.S. Art. 1446e, Sec. 4.05.)
529-23 Sec. 104.003. JUST AND REASONABLE RATES. (a) The
529-24 regulatory authority shall ensure that each rate a gas utility or
529-25 two or more gas utilities jointly make, demand, or receive is just
530-1 and reasonable. A rate may not be unreasonably preferential,
530-2 prejudicial, or discriminatory but must be sufficient, equitable,
530-3 and consistent in application to each class of consumer. In
530-4 establishing a gas utility's rates, the railroad commission may
530-5 treat as a single class two or more municipalities that a gas
530-6 utility serves if the commission considers that treatment to be
530-7 appropriate.
530-8 (b) A rate for a pipeline-to-pipeline transaction or to a
530-9 transportation, industrial, or similar large volume contract
530-10 customer is considered to be just and reasonable and otherwise to
530-11 comply with this section and shall be approved by the regulatory
530-12 authority if:
530-13 (1) neither the gas utility nor the customer had an
530-14 unfair advantage during the negotiations;
530-15 (2) the rate is substantially the same as the rate
530-16 between the gas utility and at least two of those customers under
530-17 the same or similar conditions of service; or
530-18 (3) competition does or did exist with another gas
530-19 utility, another supplier of natural gas, or a supplier of an
530-20 alternative form of energy.
530-21 (c) Subsection (b) does not apply:
530-22 (1) if a complaint is filed with the railroad
530-23 commission by a transmission pipeline purchaser of gas sold or
530-24 transported under the pipeline-to-pipeline or transportation rate;
530-25 or
531-1 (2) to a direct sale for resale to a gas distribution
531-2 utility at a city gate.
531-3 (d) The reasonableness of gas purchase costs included in a
531-4 city gate rate proposed to be charged for a sale for resale to a
531-5 gas distribution utility at a city gate may be reviewed at a city
531-6 gate rate proceeding even though the costs have been previously
531-7 approved as a rate for other parties under Subsection (b).
531-8 (e) Subsection (b)(1) does not apply to a rate charged or
531-9 offered to be charged to an affiliated pipeline utility. (V.A.C.S.
531-10 Art. 1446e, Secs. 5.02(a), (b), (d), (f).)
531-11 Sec. 104.004. UNREASONABLE PREFERENCE OR PREJUDICE
531-12 PROHIBITED. A gas utility may not:
531-13 (1) grant an unreasonable preference or advantage
531-14 concerning rates or services to a person in a classification;
531-15 (2) subject a person in a classification to an
531-16 unreasonable prejudice or disadvantage concerning rates or
531-17 services; or
531-18 (3) establish or maintain an unreasonable difference
531-19 concerning rates of services between localities or between classes
531-20 of service. (V.A.C.S. Art. 1446e, Sec. 5.10.)
531-21 Sec. 104.005. EQUALITY OF RATES AND SERVICES. (a) A gas
531-22 utility may not directly or indirectly charge, demand, collect, or
531-23 receive from a person a greater or lesser compensation for a
531-24 service provided or to be provided by the utility than the
531-25 compensation prescribed by the applicable schedule of rates filed
532-1 under Section 102.151.
532-2 (b) A person may not knowingly receive or accept a service
532-3 from a gas utility for a compensation greater or less than the
532-4 compensation prescribed by the schedules. A rate charged and
532-5 collected by a gas utility on September 1, 1983, may be continued
532-6 until schedules are filed.
532-7 (c) After notice and hearing, the railroad commission may,
532-8 in the public interest, order a gas utility to refund with interest
532-9 compensation received in violation of this section.
532-10 (d) This subtitle does not prevent a cooperative corporation
532-11 from returning to its members net earnings resulting from its
532-12 operations in proportion to the members' purchases from or through
532-13 the corporation. (V.A.C.S. Art. 1446e, Sec. 5.11.)
532-14 Sec. 104.006. RATES FOR AREA NOT IN MUNICIPALITY. Without
532-15 the approval of the railroad commission, a gas utility's rates for
532-16 an area not in a municipality may not exceed 115 percent of the
532-17 average of all rates for similar services for all municipalities
532-18 served by the same utility in the same county as that area.
532-19 (V.A.C.S. Art. 1446e, Sec. 5.09.)
532-20 Sec. 104.007. DISCRIMINATION AND RESTRICTION ON COMPETITION.
532-21 A gas utility may not:
532-22 (1) discriminate against a person who sells or leases
532-23 equipment or performs services in competition with the gas utility;
532-24 or
532-25 (2) engage in a practice that tends to restrict or
533-1 impair that competition. (V.A.C.S. Art. 1446e, Sec. 5.12.)
533-2 Sec. 104.008. BURDEN OF PROOF. In a proceeding involving a
533-3 proposed rate change, the gas utility has the burden of proving
533-4 that:
533-5 (1) the rate change is just and reasonable, if the
533-6 utility proposes the change; or
533-7 (2) an existing rate is just and reasonable, if the
533-8 proposal is to reduce the rate. (V.A.C.S. Art. 1446e, Sec.
533-9 5.04(b).)
533-10 (Sections 104.009-104.050 reserved for expansion)
533-11 SUBCHAPTER B. COMPUTATION OF RATES
533-12 Sec. 104.051. ESTABLISHING OVERALL REVENUES. In
533-13 establishing a gas utility's rates, the regulatory authority shall
533-14 establish the utility's overall revenues at an amount that will
533-15 permit the utility a reasonable opportunity to earn a reasonable
533-16 return on the utility's invested capital used and useful in
533-17 providing service to the public in excess of its reasonable and
533-18 necessary operating expenses. (V.A.C.S. Art. 1446e, Sec. 5.03
533-19 (part).)
533-20 Sec. 104.052. ESTABLISHING FAIR RATE OF RETURN. The
533-21 regulatory authority may not establish a rate that yields more than
533-22 a fair return on the adjusted value of the invested capital used
533-23 and useful in providing service to the public. (V.A.C.S.
533-24 Art. 1446e, Sec. 5.04(a).)
533-25 Sec. 104.053. COMPONENTS OF ADJUSTED VALUE OF INVESTED
534-1 CAPITAL. (a) Gas utility rates shall be based on the adjusted
534-2 value of invested capital used and useful to the utility in
534-3 providing service and that adjusted value shall be computed on the
534-4 basis of a reasonable balance between:
534-5 (1) original cost, less depreciation; and
534-6 (2) current cost, less an adjustment for present age
534-7 and condition.
534-8 (b) The regulatory authority may determine a reasonable
534-9 balance that reflects:
534-10 (1) not less than 60 percent nor more than 75 percent
534-11 of the original cost of the property at the time the property was
534-12 dedicated to public use, whether by the gas utility that is the
534-13 present owner or by a predecessor, less depreciation; and
534-14 (2) not less than 25 percent nor more than 40 percent
534-15 of the current cost less an adjustment for present age and
534-16 condition.
534-17 (c) In determining a reasonable balance, the regulatory
534-18 authority may consider inflation, deflation, quality of service
534-19 being provided, growth rate of the service area, and need for the
534-20 gas utility to attract new capital.
534-21 (d) Construction work in progress, at cost as recorded on
534-22 the gas utility's books, may be included as part of the adjusted
534-23 value of invested capital used by and useful to the utility in
534-24 providing service, as necessary to the financial integrity of the
534-25 utility.
535-1 (e) Costs of facilities, revenues, expenses, taxes, and
535-2 reserves shall be separated or allocated as prescribed by the
535-3 regulatory authority.
535-4 (f) In this section, "original cost" means the actual money
535-5 cost or the actual money value of consideration paid other than
535-6 money. (V.A.C.S. Art. 1446e, Sec. 5.05.)
535-7 Sec. 104.054. DEPRECIATION, AMORTIZATION, AND DEPLETION.
535-8 (a) The railroad commission shall establish proper and adequate
535-9 rates and methods of depreciation, amortization, or depletion for
535-10 each class of property of a gas utility or municipally owned
535-11 utility.
535-12 (b) The rates and methods established under this section and
535-13 the depreciation account required under Section 102.152 shall be
535-14 used uniformly and consistently throughout rate-setting and appeal
535-15 proceedings. (V.A.C.S. Art. 1446e, Secs. 4.01(b) (part), (f).)
535-16 Sec. 104.055. NET INCOME; ALLOWABLE EXPENSES. (a) Net
535-17 income shall be used to establish just and reasonable rates. For
535-18 that purpose, "net income" means the total revenues of the gas
535-19 utility from gas utility service less all reasonable and necessary
535-20 expenses related to that gas utility service. The regulatory
535-21 authority shall determine those revenues and expenses in a manner
535-22 consistent with this subchapter.
535-23 (b) In establishing a gas utility's rates, the regulatory
535-24 authority may not allow a gas utility's payment to an affiliate for
535-25 the cost of a service, property, right, or other item or for an
536-1 interest expense to be included as capital cost or as expense
536-2 related to gas utility service except to the extent that the
536-3 regulatory authority finds the payment is reasonable and necessary
536-4 for each item or class of items as determined by the regulatory
536-5 authority. That finding must include:
536-6 (1) a specific finding of the reasonableness and
536-7 necessity of each item or class of items allowed; and
536-8 (2) a finding that the price to the gas utility is not
536-9 higher than the prices charged by the supplying affiliate to its
536-10 other affiliates or divisions or to a nonaffiliated person for the
536-11 same item or class of items.
536-12 (c) If an expense is allowed to be included in utility
536-13 rates, or an investment is included in the utility rate base, the
536-14 related income tax deduction or benefit shall be included in the
536-15 computation of income tax expense to reduce the rates. If an
536-16 expense is disallowed or not included in utility rates, or an
536-17 investment is not included in the utility rate base, the related
536-18 income tax deduction or benefit may not be included in the
536-19 computation of income tax expense to reduce the rates. The income
536-20 tax expense shall be computed using the statutory income tax rates.
536-21 (d) The regulatory authority may adopt reasonable rules
536-22 complying with this section with respect to including and excluding
536-23 certain expenses in computing the rates to be established.
536-24 (e) This section is not intended to increase gas utility
536-25 rates to the customer not caused by utility service. Utility rates
537-1 may include only expenses caused by utility service. (V.A.C.S.
537-2 Art. 1446e, Sec. 5.06.)
537-3 Sec. 104.056. TREATMENT OF CERTAIN TAX BENEFITS. (a) In
537-4 determining the allocation of tax savings derived from liberalized
537-5 depreciation and amortization, the investment tax credit, and the
537-6 application of similar methods, the regulatory authority shall:
537-7 (1) balance equitably the interests of present and
537-8 future customers; and
537-9 (2) apportion accordingly the benefits between
537-10 consumers and the gas utility or municipally owned utility.
537-11 (b) If a gas utility or municipally owned utility retains a
537-12 portion of the investment tax credit, that portion shall be
537-13 deducted from the original cost of the facilities or other addition
537-14 to the rate base to which the credit applied to the extent allowed
537-15 by the Internal Revenue Code. (V.A.C.S. Art. 1446e, Secs. 4.01(e),
537-16 (f).)
537-17 Sec. 104.057. CONSIDERATION OF CERTAIN EXPENSES. (a) In
537-18 establishing a gas utility's rates, the regulatory authority may
537-19 not allow as a cost or expense an expenditure:
537-20 (1) described by Section 102.154 that the regulatory
537-21 authority determines to be not in the public interest; or
537-22 (2) for legislative advocacy.
537-23 (b) The regulatory authority may allow as a cost or expense
537-24 reasonable charitable or civic contributions not to exceed the
537-25 amount approved by the regulatory authority. (V.A.C.S. Art. 1446e,
538-1 Sec. 4.04 (part).)
538-2 Sec. 104.058. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
538-3 LEASE OF MERCHANDISE. In establishing a gas utility's or
538-4 municipally owned utility's rates, the regulatory authority may not
538-5 consider a profit or loss that results from the sale or lease of
538-6 merchandise, including appliances, fixtures, or equipment, to the
538-7 extent that merchandise is not integral to providing utility
538-8 service. (V.A.C.S. Art. 1446e, Secs. 4.01(c) (part), (f).)
538-9 (Sections 104.059-104.100 reserved for expansion)
538-10 SUBCHAPTER C. RATE CHANGES PROPOSED BY UTILITY
538-11 Sec. 104.101. DEFINITION. In this subchapter, "major
538-12 change" means an increase in rates that would increase the
538-13 aggregate revenues of the applicant more than the greater of
538-14 $100,000 or 2-1/2 percent. The term does not include an increase
538-15 in rates that the regulatory authority allows to go into effect or
538-16 the gas utility makes under an order of the regulatory authority
538-17 after hearings held with public notice. (V.A.C.S. Art. 1446e, Sec.
538-18 5.08(b) (part).)
538-19 Sec. 104.102. STATEMENT OF INTENT TO INCREASE RATES. (a) A
538-20 gas utility may not increase its rates unless the utility files a
538-21 statement of its intent with the regulatory authority that has
538-22 original jurisdiction over those rates at least 35 days before the
538-23 effective date of the proposed increase.
538-24 (b) The gas utility shall also mail or deliver a copy of the
538-25 statement of intent to the appropriate officer of each affected
539-1 municipality.
539-2 (c) The statement of intent must include:
539-3 (1) proposed revisions of tariffs and schedules; and
539-4 (2) a detailed statement of:
539-5 (A) each proposed increase;
539-6 (B) the effect the proposed increase is expected
539-7 to have on the revenues of the utility;
539-8 (C) each class and number of utility consumers
539-9 affected; and
539-10 (D) any other information required by the
539-11 regulatory authority's rules and regulations. (V.A.C.S.
539-12 Art. 1446e, Sec. 5.08(a) (part).)
539-13 Sec. 104.103. NOTICE OF INTENT TO INCREASE RATES. (a) The
539-14 gas utility shall:
539-15 (1) publish, in conspicuous form, notice to the public
539-16 of the proposed increase once each week for four successive weeks
539-17 in a newspaper having general circulation in each county containing
539-18 territory affected by the proposed increase; and
539-19 (2) provide notice of the proposed increase to any
539-20 other affected person as required by the regulatory authority's
539-21 rules.
539-22 (b) Instead of publishing newspaper notice, a gas utility
539-23 may provide notice to the public in an area outside the affected
539-24 municipality or in a municipality with a population of less than
539-25 2,500 by:
540-1 (1) mailing the notice by United States mail, postage
540-2 prepaid, to the billing address of each directly affected customer;
540-3 or
540-4 (2) including the notice, in conspicuous form, in the
540-5 bill of each directly affected customer. (V.A.C.S. Art. 1446e,
540-6 Sec. 5.08(a) (part).)
540-7 Sec. 104.104. EARLY EFFECTIVE DATE OF RATE INCREASE.
540-8 (a) For good cause shown, the regulatory authority may allow a
540-9 rate increase, other than a major change, to take effect:
540-10 (1) before the end of the 35-day period prescribed by
540-11 Section 104.102; and
540-12 (2) under conditions the regulatory authority
540-13 prescribes, subject to suspension as provided by this subchapter.
540-14 (b) The gas utility shall immediately revise its schedules
540-15 to include the increase. (V.A.C.S. Art. 1446e, Sec. 5.08(b)
540-16 (part).)
540-17 Sec. 104.105. DETERMINATION OF PROPRIETY OF RATE CHANGE;
540-18 HEARING. (a) If a schedule modifying or increasing rates is filed
540-19 with a regulatory authority, the regulatory authority shall, on
540-20 complaint by an affected person, or may, on its own motion, not
540-21 later than the 30th day after the effective date of the increase,
540-22 enter on a hearing to determine the propriety of the increase.
540-23 (b) The regulatory authority shall hold a hearing in every
540-24 case in which the increase constitutes a major change. The
540-25 regulatory authority may, however, use an informal proceeding if
541-1 the regulatory authority does not receive a complaint before the
541-2 expiration of 45 days after the date notice of the increase is
541-3 filed.
541-4 (c) The regulatory authority shall give reasonable notice of
541-5 the hearing, including notice to the governing body of each
541-6 affected municipality and county. The gas utility is not required
541-7 to provide a formal answer or file any other formal pleading in
541-8 response to the notice, and the absence of an answer does not
541-9 affect an order for a hearing. (V.A.C.S. Art. 1446e, Sec.
541-10 5.08(c).)
541-11 Sec. 104.106. PREFERENCE TO HEARING. The regulatory
541-12 authority shall:
541-13 (1) give preference to the hearing under this
541-14 subchapter and to deciding questions arising under this subchapter
541-15 over any other question pending before it; and
541-16 (2) decide the questions as quickly as possible.
541-17 (V.A.C.S. Art. 1446e, Sec. 5.08(d) (part).)
541-18 Sec. 104.107. RATE SUSPENSION; DEADLINE. (a) Pending the
541-19 hearing and a decision:
541-20 (1) the local regulatory authority, after delivering
541-21 to the gas utility a written statement of the regulatory
541-22 authority's reasons, may suspend the operation of the schedule for
541-23 not longer than 90 days after the date the schedule would otherwise
541-24 be effective; and
541-25 (2) the railroad commission may suspend the operation
542-1 of the schedule for not longer than 150 days after the date the
542-2 schedule would otherwise be effective.
542-3 (b) If the regulatory authority does not make a final
542-4 determination concerning a schedule of rates before expiration of
542-5 the applicable suspension period, the regulatory authority is
542-6 considered to have approved the schedule. This approval is subject
542-7 to the authority of the regulatory authority thereafter to continue
542-8 a hearing in progress. (V.A.C.S. Art. 1446e, Sec. 5.08(d) (part).)
542-9 Sec. 104.108. TEMPORARY RATES. (a) The regulatory
542-10 authority may establish temporary rates to be in effect during the
542-11 applicable suspension period under Section 104.107.
542-12 (b) If the regulatory authority does not establish temporary
542-13 rates, the rates in effect when the suspended schedule was filed
542-14 continue in effect during the suspension period. (V.A.C.S.
542-15 Art. 1446e, Sec. 5.08(d) (part).)
542-16 Sec. 104.109. BONDED RATES. (a) A gas utility may put a
542-17 changed rate into effect by filing a bond with the regulatory
542-18 authority if the regulatory authority fails to make a final
542-19 determination within 90 days from the date the proposed increase
542-20 would otherwise be effective.
542-21 (b) The bonded rate may not exceed the proposed rate.
542-22 (c) The bond must be:
542-23 (1) payable to the regulatory authority in an amount,
542-24 in a form, and with a surety approved by the regulatory authority;
542-25 and
543-1 (2) conditioned on refund.
543-2 (d) The gas utility shall refund or credit against future
543-3 bills:
543-4 (1) money collected under the bonded rates in excess
543-5 of the rate finally ordered; and
543-6 (2) interest on that money, at the current interest
543-7 rate as determined by the regulatory authority. (V.A.C.S.
543-8 Art. 1446e, Sec. 5.08(e).)
543-9 Sec. 104.110. ESTABLISHMENT OF FINAL RATES. (a) If, after
543-10 hearing, the regulatory authority finds the rates are unreasonable
543-11 or in violation of law, the regulatory authority shall:
543-12 (1) enter an order establishing the rates the gas
543-13 utility shall charge or apply for the service in question; and
543-14 (2) serve a copy of the order on the gas utility.
543-15 (b) The rates established in the order shall be observed
543-16 thereafter until changed as provided by this subtitle. (V.A.C.S.
543-17 Art. 1446e, Sec. 5.08(f).)
543-18 Sec. 104.111. APPROVAL OF DECREASE IN RATES.
543-19 Notwithstanding any other provision in this subtitle, the
543-20 regulatory authority may, without reference to the cost of service
543-21 standard prescribed by Section 104.051, administratively approve a
543-22 decrease in rates proposed by the applicant and agreed on by each
543-23 party directly affected unless the regulatory authority determines
543-24 that the proposed decrease is not in the public interest.
543-25 (V.A.C.S. Art. 1446e, Secs. 5.02(e), 5.03(b).)
544-1 (Sections 104.112-104.150 reserved for expansion)
544-2 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
544-3 Sec. 104.151. UNREASONABLE OR VIOLATIVE EXISTING RATES.
544-4 (a) If the regulatory authority, on its own motion or on complaint
544-5 by an affected person, after reasonable notice and hearing, finds
544-6 that the existing rates of a gas utility for a service are
544-7 unreasonable or in violation of law, the regulatory authority
544-8 shall:
544-9 (1) enter an order establishing the just and
544-10 reasonable rates to be observed thereafter, including maximum or
544-11 minimum rates; and
544-12 (2) serve a copy of the order on the gas utility.
544-13 (b) The rates set under Subsection (a) constitute the legal
544-14 rates of the gas utility until changed as provided by this
544-15 subtitle. (V.A.C.S. Art. 1446e, Sec. 5.07(a).)
544-16 Sec. 104.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
544-17 ANOTHER SOURCE. If a gas utility does not produce the service that
544-18 it distributes, transmits, or furnishes to the public for
544-19 compensation but obtains the service from another source, the
544-20 regulatory authority may investigate the cost of that production in
544-21 an investigation of the reasonableness of the gas utility's rates.
544-22 (V.A.C.S. Art. 1446e, Sec. 5.07(b).)
544-23 (Sections 104.153-104.200 reserved for expansion)
544-24 SUBCHAPTER E. RATES FOR GOVERNMENTAL ENTITIES
544-25 Sec. 104.201. TRANSPORTATION RATES BETWEEN GAS UTILITY OR
545-1 MUNICIPALLY OWNED UTILITY AND STATE AGENCY. (a) Notwithstanding
545-2 Section 104.003(b), absent a contract for transportation service
545-3 between a state agency and a gas utility or municipally owned
545-4 utility, the railroad commission, not later than the 210th day
545-5 after the date either party files a request to set a transportation
545-6 rate, shall establish the transportation rate for the state agency.
545-7 The commission has exclusive original jurisdiction to establish a
545-8 transportation rate for a state agency under this section.
545-9 (b) The railroad commission shall base its determination of
545-10 the transportation rate under Subsection (a) on the cost of
545-11 providing the transportation service for both the distribution
545-12 system and the transmission system, as applicable, of the gas
545-13 utility or municipally owned utility.
545-14 (c) The railroad commission may order temporary rates under
545-15 Subsection (a) as provided for under the commission's appellate
545-16 jurisdiction. (V.A.C.S. Art. 1446e, Sec. 5.02(c).)
545-17 Sec. 104.202. EXCLUDED EXPENSES. (a) The rates that a gas
545-18 utility or municipally owned utility charges a state agency may not
545-19 include an amount representing a gross receipts assessment,
545-20 regulatory assessment, or similar expense of the utility.
545-21 (b) An expense under Subsection (a) that is reasonable and
545-22 is not recovered from a state agency under this section may be
545-23 recovered from other customers of the gas utility or municipally
545-24 owned utility. (V.A.C.S. Art. 1446e, Sec. 5.061.)
545-25 Sec. 104.203. PAYMENT IN LIEU OF TAX. (a) A payment made
546-1 in lieu of a tax by a municipally owned utility to the municipality
546-2 by which the utility is owned may not be considered an expense of
546-3 operation in establishing the utility's rate for providing utility
546-4 service to a school district or hospital district.
546-5 (b) A rate a municipally owned utility receives from a
546-6 school district or hospital district may not be used to make or to
546-7 cover the cost of making payments in lieu of taxes to the
546-8 municipality that owns the utility. (V.A.C.S. Art. 1446e, Sec.
546-9 5.13.)
546-10 (Sections 104.204-104.250 reserved for expansion)
546-11 SUBCHAPTER F. SERVICES
546-12 Sec. 104.251. GENERAL STANDARD. A gas utility shall furnish
546-13 service, instrumentalities, and facilities that are safe, adequate,
546-14 efficient, and reasonable. (V.A.C.S. Art. 1446e, Sec. 4.09(a).)
546-15 Sec. 104.252. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
546-16 STANDARDS. A regulatory authority, on its own motion or on
546-17 complaint and after reasonable notice and hearing, may:
546-18 (1) adopt just and reasonable standards,
546-19 classifications, regulations, or practices a gas utility must
546-20 follow in furnishing a service;
546-21 (2) adopt adequate and reasonable standards for
546-22 measuring a condition, including quantity, quality, and pressure
546-23 relating to the furnishing of a service;
546-24 (3) adopt reasonable regulations for examining,
546-25 testing, and measuring a service; and
547-1 (4) adopt or approve reasonable rules, regulations,
547-2 specifications, and standards to ensure the accuracy of equipment,
547-3 including meters and instruments, used to measure a service.
547-4 (V.A.C.S. Art. 1446e, Sec. 4.09(b).)
547-5 Sec. 104.253. RULE OR STANDARD. (a) A gas utility may file
547-6 with the regulatory authority a standard, classification,
547-7 regulation, or practice the utility follows.
547-8 (b) The standard, classification, regulation, or practice
547-9 continues in force until:
547-10 (1) amended by the utility; or
547-11 (2) changed by the regulatory authority as provided by
547-12 this subtitle. (V.A.C.S. Art. 1446e, Sec. 4.09(c).)
547-13 Sec. 104.254. SERVICE. A gas utility or municipally owned
547-14 utility may not refuse to provide service to a state agency if
547-15 pipeline capacity is available on an existing facility of the
547-16 utility. (V.A.C.S. Art. 1446e, Sec. 4.09(d).)
547-17 Sec. 104.255. BILLING. (a) A gas utility or municipally
547-18 owned utility may not bill or otherwise require the state or a
547-19 state agency or institution to pay for service before the service
547-20 is provided.
547-21 (b) The railroad commission shall adopt rules concerning
547-22 payment of bills by the state or a state agency to a gas utility or
547-23 municipally owned utility. The rules must be consistent with
547-24 Chapter 2251, Government Code.
547-25 (c) This subtitle does not prohibit a gas utility or
548-1 municipally owned utility from entering into an agreement with the
548-2 state or a state agency to establish a level or average monthly
548-3 service billing plan. An agreement under this subsection must
548-4 require reconciliation of the leveled or equalized bills quarterly.
548-5 (V.A.C.S. Art. 1446e, Secs. 10.05, 10.06.)
548-6 Sec. 104.256. EXAMINATION AND TEST OF INSTRUMENT OR
548-7 EQUIPMENT; INSPECTION. (a) A regulatory authority may:
548-8 (1) examine and test equipment, including meters and
548-9 instruments, used to measure service of a gas utility; and
548-10 (2) set up and use on the premises occupied by a gas
548-11 utility an apparatus or appliance necessary for the examination or
548-12 test.
548-13 (b) The gas utility is entitled to be represented at an
548-14 examination, test, or inspection made under this section.
548-15 (c) The gas utility and its officers and employees shall
548-16 facilitate the examination, test, or inspection by giving
548-17 reasonable aid to the regulatory authority and to any person
548-18 designated by the regulatory authority for the performance of those
548-19 duties. (V.A.C.S. Art. 1446e, Sec. 4.10(a) (part).)
548-20 Sec. 104.257. INSPECTION FOR CONSUMER. (a) A consumer may
548-21 have a meter or other measuring device tested by a gas utility:
548-22 (1) once without charge, after a reasonable period of
548-23 presumed accuracy that the regulatory authority establishes by
548-24 rule; and
548-25 (2) at a shorter interval on payment of a reasonable
549-1 fee established by the regulatory authority.
549-2 (b) The regulatory authority shall establish reasonable fees
549-3 to be paid for other examining or testing of a measuring device on
549-4 the request of a consumer.
549-5 (c) If the consumer requests the test under Subsection
549-6 (a)(2) and the measuring device is found unreasonably defective or
549-7 incorrect to the substantial disadvantage of the consumer, the fee
549-8 the consumer paid at the time of the request shall be refunded.
549-9 (V.A.C.S. Art. 1446e, Sec. 4.10(b).)
549-10 CHAPTER 105. JUDICIAL REVIEW; ENFORCEMENT AND PENALTIES
549-11 SUBCHAPTER A. JUDICIAL REVIEW
549-12 Sec. 105.001. RIGHT TO JUDICIAL REVIEW
549-13 Sec. 105.002. JUDICIAL STAY OR SUSPENSION
549-14 (Sections 105.003-105.020 reserved for expansion)
549-15 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
549-16 Sec. 105.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE
549-17 Sec. 105.022. CONTEMPT
549-18 Sec. 105.023. CIVIL PENALTY AGAINST GAS UTILITY OR AFFILIATE
549-19 Sec. 105.024. OFFENSE
549-20 Sec. 105.025. PLACE FOR SUIT
549-21 Sec. 105.026. PENALTIES CUMULATIVE
549-22 Sec. 105.027. DISPOSITION OF FINES AND PENALTIES
549-23 (Sections 105.028-105.050 reserved for expansion)
549-24 SUBCHAPTER C. COMPLAINTS
549-25 Sec. 105.051. COMPLAINT BY AFFECTED PERSON
550-1 CHAPTER 105. JUDICIAL REVIEW; ENFORCEMENT AND PENALTIES
550-2 SUBCHAPTER A. JUDICIAL REVIEW
550-3 Sec. 105.001. RIGHT TO JUDICIAL REVIEW. (a) Any party to a
550-4 proceeding before the railroad commission is entitled to judicial
550-5 review under the substantial evidence rule.
550-6 (b) The issue of confiscation is determined by a
550-7 preponderance of the evidence. (V.A.C.S. Art. 1446e, Sec. 8.01.)
550-8 Sec. 105.002. JUDICIAL STAY OR SUSPENSION. While an appeal
550-9 of an order, ruling, or decision of a regulatory authority is
550-10 pending, the district court, court of appeals, or supreme court, as
550-11 appropriate, may stay or suspend all or part of the operation of
550-12 the order, ruling, or decision. In granting or refusing a stay or
550-13 suspension, the court shall act in accordance with the practice of
550-14 a court exercising equity jurisdiction. (V.A.C.S. Art. 1446e, Sec.
550-15 10.03.)
550-16 (Sections 105.003-105.020 reserved for expansion)
550-17 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
550-18 Sec. 105.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE.
550-19 (a) The attorney general, on the request of the railroad
550-20 commission, shall apply in the name of the commission for an order
550-21 under Subsection (b) if the commission determines that a gas
550-22 utility or other person is:
550-23 (1) engaging in or about to engage in an act that
550-24 violates this subtitle or an order or rule of the commission
550-25 entered or adopted under this subtitle; or
551-1 (2) failing to comply with the requirements of this
551-2 subtitle or a rule or order of the commission.
551-3 (b) A court, in an action under this section, may:
551-4 (1) prohibit the commencement or continuation of an
551-5 act that violates this subtitle or an order or rule of the
551-6 commission entered or adopted under this subtitle; or
551-7 (2) require compliance with a provision of this
551-8 subtitle or an order or rule of the commission.
551-9 (c) The remedy under this section is in addition to any
551-10 other remedy provided under this subtitle. (V.A.C.S. Art. 1446e,
551-11 Sec. 9.01.)
551-12 Sec. 105.022. CONTEMPT. The railroad commission may file an
551-13 action for contempt against a person who:
551-14 (1) fails to comply with a lawful order of the
551-15 commission;
551-16 (2) fails to comply with a subpoena or subpoena duces
551-17 tecum; or
551-18 (3) refuses to testify about a matter on which the
551-19 person may be lawfully interrogated. (V.A.C.S. Art. 1446e, Sec.
551-20 9.04.)
551-21 Sec. 105.023. CIVIL PENALTY AGAINST GAS UTILITY OR
551-22 AFFILIATE. (a) A gas utility or affiliate is subject to a civil
551-23 penalty if the gas utility or affiliate knowingly violates this
551-24 subtitle, fails to perform a duty imposed on it, or fails,
551-25 neglects, or refuses to obey an order, rule, direction, or
552-1 requirement of the railroad commission or a decree or judgment of a
552-2 court.
552-3 (b) A civil penalty under this section shall be in an amount
552-4 of not less than $1,000 and not more than $5,000 for each
552-5 violation.
552-6 (c) A gas utility or affiliate commits a separate violation
552-7 each day it continues to violate Subsection (a).
552-8 (d) The attorney general shall file in the name of the
552-9 railroad commission a suit on the attorney general's own initiative
552-10 or at the request of the commission to recover the civil penalty
552-11 under this section. (V.A.C.S. Art. 1446e, Sec. 9.02.)
552-12 Sec. 105.024. OFFENSE. (a) A person commits an offense if
552-13 the person knowingly violates this subtitle.
552-14 (b) An offense under this section is a felony of the third
552-15 degree. (V.A.C.S. Art. 1446e, Sec. 9.03(a).)
552-16 Sec. 105.025. PLACE FOR SUIT. A suit for an injunction or a
552-17 penalty under this subtitle may be brought in:
552-18 (1) Travis County;
552-19 (2) a county in which the violation is alleged to have
552-20 occurred; or
552-21 (3) a county in which a defendant resides. (V.A.C.S.
552-22 Art. 1446e, Sec. 9.06.)
552-23 Sec. 105.026. PENALTIES CUMULATIVE. (a) A penalty that
552-24 accrues under this subtitle is cumulative of any other penalty.
552-25 (b) A suit for the recovery of a penalty does not bar or
553-1 affect the recovery of any other penalty or bar a criminal
553-2 prosecution against any person, including a gas utility or officer,
553-3 director, agent, or employee of a gas utility. (V.A.C.S.
553-4 Art. 1446e, Sec. 9.03(b).)
553-5 Sec. 105.027. DISPOSITION OF FINES AND PENALTIES. A fine or
553-6 penalty collected under this subtitle, other than a fine or penalty
553-7 collected in a criminal proceeding, shall be paid to the railroad
553-8 commission. (V.A.C.S. Art. 1446e, Sec. 9.05.)
553-9 (Sections 105.028-105.050 reserved for expansion)
553-10 SUBCHAPTER C. COMPLAINTS
553-11 Sec. 105.051. COMPLAINT BY AFFECTED PERSON. An affected
553-12 person may complain to the regulatory authority in writing setting
553-13 forth an act or omission by a gas utility in violation or claimed
553-14 violation of a law that the regulatory authority has jurisdiction
553-15 to administer or of an order, ordinance, or rule of the regulatory
553-16 authority. (V.A.C.S. Art. 1446e, Sec. 10.01.)
553-17 (Chapters 106-120 reserved for expansion)
553-18 SUBTITLE B. REGULATION OF TRANSPORTATION AND USE
553-19 CHAPTER 121. GAS PIPELINES
553-20 SUBCHAPTER A. GAS UTILITY DEFINED
553-21 Sec. 121.001. DEFINITION OF GAS UTILITY
553-22 Sec. 121.002. AFFILIATE OF GAS UTILITY EXCLUDED
553-23 Sec. 121.003. AGRICULTURAL SERVICE EXCLUDED
553-24 Sec. 121.004. TRANSPORTATION OF GAS SOLELY FOR INTERSTATE
553-25 COMMERCE EXCLUDED
554-1 Sec. 121.005. TRANSPORTATION OF GAS IN VICINITY OF PLACE
554-2 OF PRODUCTION EXCLUDED
554-3 Sec. 121.006. VEHICLE FUEL EXCLUDED
554-4 (Sections 121.007-121.050 reserved for expansion)
554-5 SUBCHAPTER B. PUBLIC POLICY
554-6 Sec. 121.051. GAS UTILITY: PUBLIC INTEREST AND JURISDICTION
554-7 OF RAILROAD COMMISSION
554-8 Sec. 121.052. PIPELINES: MONOPOLIES SUBJECT TO RAILROAD
554-9 COMMISSION
554-10 (Sections 121.053-121.100 reserved for expansion)
554-11 SUBCHAPTER C. DUTIES OF GAS UTILITIES AND PIPELINES
554-12 Sec. 121.101. MAINTENANCE OF OFFICE AND RECORDS IN THIS
554-13 STATE
554-14 Sec. 121.102. OPERATOR'S REPORT
554-15 Sec. 121.103. DUTY TO SERVE CERTAIN USERS EXTINGUISHED
554-16 Sec. 121.104. DISCRIMINATION IN SERVICE AND CHARGES
554-17 PROHIBITED
554-18 (Sections 121.105-121.150 reserved for expansion)
554-19 SUBCHAPTER D. REGULATION BY RAILROAD COMMISSION
554-20 Sec. 121.151. RAILROAD COMMISSION REGULATION OF GAS
554-21 PIPELINES
554-22 Sec. 121.152. INITIATION OF REGULATORY PROCEEDING
554-23 Sec. 121.153. RAILROAD COMMISSION REVIEW OF GAS
554-24 PIPELINE ORDERS AND AGREEMENTS
554-25 Sec. 121.154. REFUND OF EXCESS CHARGES
555-1 Sec. 121.155. RATE REDUCTION OR DETERMINATION BY MUNICIPALITY
555-2 AND APPEAL
555-3 Sec. 121.156. RAILROAD COMMISSION REPORT
555-4 Sec. 121.157. RAILROAD COMMISSION EMPLOYEES
555-5 Sec. 121.158. PAYMENT FROM THE GENERAL REVENUE FUND
555-6 (Sections 121.159-121.200 reserved for expansion)
555-7 SUBCHAPTER E. PIPELINE SAFETY
555-8 Sec. 121.201. SAFETY RULES: RAILROAD COMMISSION POWER
555-9 Sec. 121.202. MUNICIPAL AND COUNTY AUTHORITY
555-10 Sec. 121.203. ENFORCEMENT: INJUNCTION
555-11 Sec. 121.204. CIVIL PENALTY
555-12 Sec. 121.205. SETTLEMENT BY ATTORNEY GENERAL
555-13 Sec. 121.206. ADMINISTRATIVE PENALTY FOR VIOLATION OF
555-14 PIPELINE SAFETY STANDARD OR RULE
555-15 Sec. 121.207. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
555-16 ASSESSMENT PROCEDURE
555-17 Sec. 121.208. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
555-18 PAYMENT OF PENALTY
555-19 Sec. 121.209. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
555-20 REFUND OF PAYMENT OR RELEASE OF BOND
555-21 Sec. 121.210. RECOVERY BY ATTORNEY GENERAL
555-22 (Sections 121.211-121.250 reserved for expansion)
555-23 SUBCHAPTER F. GAS SAFETY
555-24 Sec. 121.251. RAILROAD COMMISSION TO INVESTIGATE USE OF
555-25 GAS MALODORANTS
556-1 Sec. 121.252. REGULATION OF USE OF MALODORANTS
556-2 Sec. 121.253. INTERSTATE TRANSPORTATION OF GAS EXCLUDED
556-3 (Sections 121.254-121.300 reserved for expansion)
556-4 SUBCHAPTER G. ENFORCEMENT REMEDIES
556-5 Sec. 121.301. RECEIVERSHIP
556-6 Sec. 121.302. CIVIL PENALTY
556-7 Sec. 121.303. PENALTY RECOVERABLE BY VICTIM OF
556-8 DISCRIMINATION
556-9 Sec. 121.304. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
556-10 PENALTY
556-11 Sec. 121.305. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
556-12 PENALTY: ASSESSMENT PROCEDURE
556-13 Sec. 121.306. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
556-14 PENALTY: PAYMENT OF PENALTY
556-15 Sec. 121.307. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
556-16 PENALTY: APPEALS
556-17 Sec. 121.308. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
556-18 PENALTY: REFUND OF PAYMENT OR RELEASE OF
556-19 BOND
556-20 Sec. 121.309. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
556-21 PENALTY: RECOVERY
556-22 Sec. 121.310. CRIMINAL PENALTY
556-23 (Sections 121.311-121.400 reserved for expansion)
556-24 SUBCHAPTER H. APPEALS
556-25 Sec. 121.401. APPEAL TO COURT
557-1 Sec. 121.402. APPEAL: BURDEN AND STANDARD OF PROOF
557-2 Sec. 121.403. APPEAL FROM TRIAL COURT
557-3 CHAPTER 121. GAS PIPELINES
557-4 SUBCHAPTER A. GAS UTILITY DEFINED
557-5 Sec. 121.001. DEFINITION OF GAS UTILITY. (a) In this
557-6 chapter, "gas utility" means a person who owns, manages, operates,
557-7 leases, or controls in this state property or equipment or a
557-8 pipeline, plant, facility, franchise, license, or permit for a
557-9 business that:
557-10 (1) transports, conveys, distributes, or delivers
557-11 natural gas:
557-12 (A) for public use or service for compensation;
557-13 (B) for sale to municipalities or persons
557-14 engaged in distributing or selling natural gas to the public, in a
557-15 situation described by Subdivision (3);
557-16 (C) for sale or delivery to a person operating
557-17 under a franchise or contract with a political subdivision of this
557-18 state; or
557-19 (D) for sale or delivery to the public for
557-20 domestic or other use;
557-21 (2) owns, operates, or manages a pipeline:
557-22 (A) that is for transporting or carrying natural
557-23 gas, whether for public hire or not; and
557-24 (B) for which the right-of-way has been or is
557-25 hereafter acquired by exercising the right of eminent domain; or
558-1 (3) produces or purchases natural gas and transports
558-2 or causes the transportation of natural gas by a pipeline to or
558-3 near the limits of a municipality in which the gas is received and
558-4 distributed or sold to the public by another gas utility or by the
558-5 municipality in a situation in which the business is the only or
558-6 practically the only agency of supply of natural gas to the gas
558-7 utility or municipality.
558-8 (b) In this subchapter, "person" means an individual,
558-9 company, or private corporation and includes a lessee, trustee, or
558-10 receiver of an individual, company, or private corporation.
558-11 (V.A.C.S. Art. 6050, Secs. 1 (part), (a), (b), (c) (part).)
558-12 Sec. 121.002. AFFILIATE OF GAS UTILITY EXCLUDED. A person
558-13 is not a gas utility solely because the person is an affiliate of a
558-14 gas utility. (V.A.C.S. Art. 6050, Sec. 1(d).)
558-15 Sec. 121.003. AGRICULTURAL SERVICE EXCLUDED. (a) The act
558-16 or acts of transporting, delivering, selling, or otherwise making
558-17 available natural gas for fuel, either directly or indirectly, to
558-18 an owner of an irrigation well, or the sale, transportation, or
558-19 delivery of natural gas for any other direct use in an agricultural
558-20 activity, does not make a person a gas utility or make the person
558-21 subject to the jurisdiction, control, and regulation of the
558-22 railroad commission as a gas utility.
558-23 (b) In order for a person furnishing natural gas to qualify
558-24 for the exemption under Subsection (a), the person to whom the gas
558-25 was furnished under Subsection (a) shall use the gas exclusively to
559-1 pump water for farm and other agricultural purposes. (V.A.C.S.
559-2 Art. 6050, Secs. 2, 3 (part).)
559-3 Sec. 121.004. TRANSPORTATION OF GAS SOLELY FOR INTERSTATE
559-4 COMMERCE EXCLUDED. Except as provided by Section 121.001(a)(2), a
559-5 person is not a gas utility if the person certifies to the railroad
559-6 commission that the person transports natural or synthetic gas, for
559-7 sale, for hire, or otherwise, solely in, or in the vicinity of, the
559-8 field or fields where the gas is produced, to another person for
559-9 transportation or sale in interstate commerce. (V.A.C.S.
559-10 Art. 6050, Sec. 4(a) (part).)
559-11 Sec. 121.005. TRANSPORTATION OF GAS IN VICINITY OF PLACE OF
559-12 PRODUCTION EXCLUDED. (a) Except as provided by Section
559-13 121.001(a)(2), a person is not a gas utility if the person
559-14 certifies to the railroad commission that the person transports
559-15 natural or synthetic gas, for sale, for hire, or otherwise, solely:
559-16 (1) in, or in the vicinity of, the field or fields
559-17 where the gas is produced to a gas processing plant or treating
559-18 facility;
559-19 (2) from the outlet of a gas processing plant or
559-20 treating facility described by Subdivision (1) to a person:
559-21 (A) at, or in the vicinity of, the plant or
559-22 treating facility; or
559-23 (B) described by Subdivision (3) or Section
559-24 121.004; or
559-25 (3) to another person in, or in the vicinity of, the
560-1 field or fields where the gas is produced for transportation or
560-2 sale in intrastate commerce.
560-3 (b) A person is not a gas utility because the person
560-4 delivers or sells gas:
560-5 (1) for lease use, compressor fuel, processing plant
560-6 fuel, or a similar use;
560-7 (2) under a lease or right-of-way agreement;
560-8 (3) in, or in the vicinity of, the field where the gas
560-9 is produced; or
560-10 (4) at a processing plant outlet.
560-11 (c) Subsection (b) does not exclude as a gas utility a
560-12 pipeline that:
560-13 (1) transmits or distributes to end users of gas,
560-14 other than:
560-15 (A) those described by Subsection (b); or
560-16 (B) a person who qualifies for the exemption
560-17 provided by Section 121.003; or
560-18 (2) makes city-gate deliveries for local distribution.
560-19 (V.A.C.S. Art. 6050, Secs. 4(a) (part), (b).)
560-20 Sec. 121.006. VEHICLE FUEL EXCLUDED. A person is not a gas
560-21 utility to the extent that the person:
560-22 (1) sells natural gas for use as vehicle fuel;
560-23 (2) sells natural gas to a person who later sells the
560-24 natural gas for use as vehicle fuel; or
560-25 (3) owns or operates equipment or facilities to sell
561-1 or transport the natural gas for ultimate use as vehicle fuel.
561-2 (V.A.C.S. Art. 6050, Sec. 5.)
561-3 (Sections 121.007-121.050 reserved for expansion)
561-4 SUBCHAPTER B. PUBLIC POLICY
561-5 Sec. 121.051. GAS UTILITY: PUBLIC INTEREST AND JURISDICTION
561-6 OF RAILROAD COMMISSION. (a) A gas utility, including a business
561-7 described by Section 121.001(a)(3), is affected with a public
561-8 interest.
561-9 (b) A business described by Section 121.001(a)(3) is a
561-10 virtual monopoly.
561-11 (c) A business described by Section 121.001(a)(3) and the
561-12 property of the business used in this state is subject to the
561-13 jurisdiction, control, and regulation of the railroad commission as
561-14 provided by this chapter. (V.A.C.S. Art. 6050, Secs. 1(c) (part),
561-15 (e).)
561-16 Sec. 121.052. PIPELINES: MONOPOLIES SUBJECT TO RAILROAD
561-17 COMMISSION. (a) The operation of a pipeline for buying, selling,
561-18 transporting, producing, or otherwise dealing in natural gas is a
561-19 business which in its nature and according to the established
561-20 method of conducting the business is a monopoly.
561-21 (b) A business described by this section may not be
561-22 conducted unless the gas pipeline used in connection with the
561-23 business is subject to the jurisdiction conferred by this chapter
561-24 on the railroad commission.
561-25 (c) The attorney general shall enforce this section by
562-1 injunction or other remedy. (V.A.C.S. Art. 6051.)
562-2 (Sections 121.053-121.100 reserved for expansion)
562-3 SUBCHAPTER C. DUTIES OF GAS UTILITIES AND PIPELINES
562-4 Sec. 121.101. MAINTENANCE OF OFFICE AND RECORDS IN THIS
562-5 STATE. (a) A gas utility shall maintain an office in this state
562-6 in a county in which some part of the gas utility's property is
562-7 located. The gas utility shall keep in this office all books,
562-8 accounts, papers, records, vouchers, and receipts that the railroad
562-9 commission requires.
562-10 (b) A book, account, paper, record, receipt, voucher, or
562-11 other item of information required by the railroad commission to be
562-12 kept in this state may not be removed from this state except as
562-13 prescribed by the railroad commission. (V.A.C.S. Art. 6052.)
562-14 Sec. 121.102. OPERATOR'S REPORT. The railroad commission
562-15 may require a person or corporation that owns, controls, or
562-16 operates a pipeline subject to this chapter to make to the
562-17 commission a sworn report of any matter relating to the business of
562-18 the person or corporation that the commission determines to be
562-19 pertinent, including:
562-20 (1) the total quantity of gas distributed by the
562-21 pipelines;
562-22 (2) the total quantity of gas held in storage;
562-23 (3) the source of supply of gas;
562-24 (4) the number of wells from which the person or
562-25 corporation draws its supply;
563-1 (5) the amount of pipeline pressure maintained; and
563-2 (6) the amount and character and description of the
563-3 equipment used. (V.A.C.S. Art. 6056.)
563-4 Sec. 121.103. DUTY TO SERVE CERTAIN USERS EXTINGUISHED.
563-5 (a) A gas utility that provides gas to a customer does not have an
563-6 obligation to serve the customer or to maintain the gas supply or
563-7 physical capacity to serve the customer if the customer:
563-8 (1) is a transportation, industrial, or other similar
563-9 large-volume contract customer;
563-10 (2) is an end-use customer of the gas utility;
563-11 (3) reduces or ceases the purchase of natural gas or
563-12 natural gas service from the gas utility; and
563-13 (4) purchases natural gas or natural gas service from
563-14 another supplier or purchases an alternate form of energy.
563-15 (b) Subsection (a) does not apply to the extent that:
563-16 (1) the customer continues to purchase natural gas or
563-17 natural gas service of any class from the gas utility; or
563-18 (2) the gas utility has a written contract to provide
563-19 natural gas or natural gas service of any class to the customer.
563-20 (c) This section does not prevent the railroad commission
563-21 from requiring a gas utility to comply with an order of the
563-22 railroad commission in apportioning gas under a curtailment plan
563-23 and order. (V.A.C.S. Art. 6053, Sec. 1(c).)
563-24 Sec. 121.104. DISCRIMINATION IN SERVICE AND CHARGES
563-25 PROHIBITED. (a) A pipeline gas utility may not:
564-1 (1) discriminate in favor of or against any person or
564-2 place in:
564-3 (A) apportioning the supply of natural gas; or
564-4 (B) charging for natural gas; or
564-5 (2) directly or indirectly charge, demand, collect, or
564-6 receive from anyone a greater or lesser compensation for a service
564-7 provided than the compensation charged, demanded, or received from
564-8 another for a similar and contemporaneous service.
564-9 (b) This section does not limit the right of the railroad
564-10 commission to prescribe:
564-11 (1) different rates and rules for the use of natural
564-12 gas for manufacturing and similar purposes; or
564-13 (2) rates and rules for service from or to other or
564-14 different places. (V.A.C.S. Arts. 6057, 6057a.)
564-15 (Sections 121.105-121.150 reserved for expansion)
564-16 SUBCHAPTER D. REGULATION BY RAILROAD COMMISSION
564-17 Sec. 121.151. RAILROAD COMMISSION REGULATION OF GAS
564-18 PIPELINES. The railroad commission shall:
564-19 (1) establish and enforce the adequate and reasonable
564-20 price of gas and fair and reasonable rates of charges and rules for
564-21 transporting, producing, distributing, buying, selling, and
564-22 delivering gas by pipelines subject to this chapter in this state;
564-23 (2) establish fair and equitable rules for the full
564-24 control and supervision of the pipelines subject to this chapter
564-25 and all their holdings pertaining to the gas business in all their
565-1 relations to the public, as the railroad commission determines to
565-2 be proper;
565-3 (3) establish a fair and equitable division of the
565-4 proceeds of the sale of gas between the companies transporting or
565-5 producing the gas and the companies distributing or selling it;
565-6 (4) prescribe and enforce rules for the government and
565-7 control of pipelines subject to this chapter in respect to their
565-8 pipelines and producing, receiving, transporting, and distributing
565-9 facilities;
565-10 (5) regulate and apportion the supply of gas between
565-11 municipalities and between municipalities and corporations; and
565-12 (6) prescribe fair and reasonable rules requiring
565-13 pipelines subject to this chapter to augment their supply of gas,
565-14 when:
565-15 (A) the supply of gas controlled by any gas
565-16 pipeline is inadequate; and
565-17 (B) the railroad commission determines that
565-18 augmentation is practicable. (V.A.C.S. Art. 6053, Sec. 1(a)
565-19 (part).)
565-20 Sec. 121.152. INITIATION OF REGULATORY PROCEEDING. The
565-21 railroad commission shall exercise power under Section 121.151:
565-22 (1) on:
565-23 (A) its own motion;
565-24 (B) the petition of a person or county
565-25 commissioner's precinct showing a substantial interest in the
566-1 subject;
566-2 (C) the petition of the attorney general; or
566-3 (D) the petition of a district or county
566-4 attorney of a county in which any portion of a business subject to
566-5 this chapter is conducted; and
566-6 (2) after notice has been given. (V.A.C.S. Art. 6053,
566-7 Sec. 1(a) (part).)
566-8 Sec. 121.153. RAILROAD COMMISSION REVIEW OF GAS PIPELINE
566-9 ORDERS AND AGREEMENTS. The railroad commission, after notice to a
566-10 person or corporation owning, controlling, or operating a pipeline
566-11 subject to this chapter and after a hearing, may review, revise,
566-12 and regulate an order or agreement that is made by the person or
566-13 corporation and establishes a price, rate, rule, regulation, or
566-14 condition of service. (V.A.C.S. Art. 6054.)
566-15 Sec. 121.154. REFUND OF EXCESS CHARGES. (a) On a complaint
566-16 against a person or corporation owning or operating a pipeline
566-17 business subject to this chapter filed by any person authorized by
566-18 Section 121.152 to file a petition and complaint and sustained in
566-19 whole or in part by the railroad commission, each customer of the
566-20 pipeline is entitled to reparation for or reimbursement of a rate
566-21 or charge made or adopted by the pipeline for a purpose relating to
566-22 the operation of that business, including a rate or charge for gas,
566-23 service, or meter rental, or in the event of an inadequate supply
566-24 of gas or inadequate service in any respect.
566-25 (b) The amount recoverable under Subsection (a) is the
567-1 amount paid after the filing of the complaint in excess of the
567-2 proper rate or charge of the pipeline as finally determined by the
567-3 railroad commission. (V.A.C.S. Art. 6055.)
567-4 Sec. 121.155. RATE REDUCTION OR DETERMINATION BY
567-5 MUNICIPALITY AND APPEAL. A gas utility the rates of which have
567-6 been reduced by a municipality may appeal the municipal order,
567-7 decision, regulation, or ordinance to the railroad commission. The
567-8 appeal is initiated by filing with the railroad commission in the
567-9 manner and on the conditions that the railroad commission may
567-10 direct a petition for review and a bond. The appeal is de novo.
567-11 The railroad commission shall set a hearing and may make any order
567-12 or decision in relation to the matter appealed that the commission
567-13 considers just and reasonable. To change a rate, rental, or
567-14 charge, a gas utility that is a local distributing company or
567-15 concern and the rates of which have been established by a
567-16 municipality must submit an application to the municipality in
567-17 which the utility is located. The municipality shall make a
567-18 determination on an application not later than the 60th day after
567-19 the date the application is filed. If the municipality rejects the
567-20 application or fails or refuses to act on the application on or
567-21 before the deadline prescribed by this section, the gas utility may
567-22 appeal to the railroad commission as provided by this section. The
567-23 railroad commission shall make a determination on the appeal not
567-24 later than the 60th day after the date the appeal is filed unless
567-25 the gas utility agrees in writing to a longer period. The rates
568-1 established by the municipality remain in effect until changed by
568-2 the railroad commission. (V.A.C.S. Art. 6058.)
568-3 Sec. 121.156. RAILROAD COMMISSION REPORT. (a) On December
568-4 1 of each year, the railroad commission shall report to the
568-5 governor, fully and in detail, on:
568-6 (1) the proceedings of the railroad commission with
568-7 respect to gas utilities;
568-8 (2) the receipts and sources of gross income taxes;
568-9 and
568-10 (3) the amount and nature of expenditures made under
568-11 and in accordance with this chapter, including the names, titles,
568-12 nature of employment, and salaries of and payments made to each
568-13 person employed under the terms of this chapter with a statement of
568-14 the travel and other expenses incurred by each of those persons and
568-15 approved by the railroad commission.
568-16 (b) The governor shall send the report to the legislature at
568-17 the first legislative session after the governor receives the
568-18 report. (V.A.C.S. Art. 6061.)
568-19 Sec. 121.157. RAILROAD COMMISSION EMPLOYEES. (a) The
568-20 railroad commission may employ or appoint persons as necessary to:
568-21 (1) inspect and audit records or receipts,
568-22 disbursements, vouchers, prices, payrolls, time cards, and books;
568-23 (2) inspect the property and records of a gas utility
568-24 subject to this chapter; and
568-25 (3) perform other services as directed by, or under
569-1 the authority of, the railroad commission.
569-2 (b) The railroad commission shall set the amount of
569-3 compensation for persons employed by the railroad commission.
569-4 (c) The chief supervisor of the oil and gas division of the
569-5 railroad commission shall assist the railroad commission in the
569-6 performance of the railroad commission's duties under this chapter,
569-7 as directed by, and under the rules of, the railroad commission.
569-8 (V.A.C.S. Arts. 6064, 6065.)
569-9 Sec. 121.158. PAYMENT FROM THE GENERAL REVENUE FUND. All
569-10 expenses, including witness fees and mileage, employee wages and
569-11 fees, and the salary and expenses of the chief supervisor of the
569-12 oil and gas division of the railroad commission incurred by or
569-13 under authority of the railroad commission or a railroad
569-14 commissioner in administering and enforcing, or exercising a power
569-15 under, this chapter shall be paid from the general revenue fund.
569-16 (V.A.C.S. Art. 6066 (part).)
569-17 (Sections 121.159-121.200 reserved for expansion)
569-18 SUBCHAPTER E. PIPELINE SAFETY
569-19 Sec. 121.201. SAFETY RULES: RAILROAD COMMISSION POWER.
569-20 (a) The railroad commission by rule may:
569-21 (1) adopt safety standards for the transportation of
569-22 gas and for gas pipeline facilities;
569-23 (2) require record maintenance and reports;
569-24 (3) inspect records and facilities to determine
569-25 compliance with adopted safety standards; and
570-1 (4) make certifications and reports and take any other
570-2 requisite action in accordance with Chapter 601, Title 49, United
570-3 States Code (49 U.S.C. Section 60101 et seq.), or a succeeding law.
570-4 (b) The power granted by Subsection (a) does not apply to
570-5 the transportation of gas or to gas facilities subject to the
570-6 exclusive control of the United States but applies to the
570-7 transportation of gas and gas pipeline facilities in this state to
570-8 the maximum degree permissible under Chapter 601, Title 49, United
570-9 States Code (49 U.S.C. Section 60101 et seq.), or a succeeding law.
570-10 (c) A term that is used in this section and defined by
570-11 Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
570-12 et seq.), or a succeeding law has the meaning assigned by that
570-13 chapter or the succeeding law. (V.A.C.S. Art. 6053-1, Subsecs.
570-14 (A), (B).)
570-15 Sec. 121.202. MUNICIPAL AND COUNTY AUTHORITY. (a) A
570-16 municipality or a county may not adopt or enforce an ordinance that
570-17 establishes a safety standard or practice applicable to a facility
570-18 that is regulated under this subchapter, another state law, or a
570-19 federal law.
570-20 (b) Except as provided by Subsection (a), this subchapter
570-21 does not reduce, limit, or impair:
570-22 (1) a power vested by law in:
570-23 (A) a county in relation to a county road; or
570-24 (B) a municipality; or
570-25 (2) the ability of a municipality to:
571-1 (A) adopt an ordinance that establishes
571-2 conditions for mapping, inventorying, installing, or relocating
571-3 pipelines over, under, along, or across a public street or alley or
571-4 private residential area in the boundaries of the municipality; or
571-5 (B) establish conditions for mapping or taking
571-6 an inventory in an area in a municipality's extraterritorial
571-7 jurisdiction. (V.A.C.S. Art. 6053-1, Subsec. (D).)
571-8 Sec. 121.203. ENFORCEMENT: INJUNCTION. The attorney
571-9 general, on behalf of the railroad commission, is entitled to
571-10 injunctive relief to restrain a violation of a safety standard
571-11 adopted under this subchapter, including an injunction that
571-12 restrains the transportation of gas or the operation of a pipeline
571-13 facility. (V.A.C.S. Art. 6053-1, Subsec. (C) (part).)
571-14 Sec. 121.204. CIVIL PENALTY. Each day of each violation of
571-15 a safety standard adopted under this subchapter is subject to a
571-16 civil penalty of not more than $25,000, except that the maximum
571-17 penalty that may be assessed for any related series of violations
571-18 may not exceed $500,000. The penalty is payable to the state.
571-19 (V.A.C.S. Art. 6053-1, Subsec. (C) (part).)
571-20 Sec. 121.205. SETTLEMENT BY ATTORNEY GENERAL. A civil
571-21 penalty under Section 121.204 may be compromised by the attorney
571-22 general who in determining a compromise shall consider:
571-23 (1) the appropriateness of the penalty in relation to
571-24 the size of the business of the person charged;
571-25 (2) the gravity of the violation; and
572-1 (3) the good faith of the person charged in attempting
572-2 to achieve compliance after notification of the violation.
572-3 (V.A.C.S. Art. 6053-1, Subsec. (C) (part).)
572-4 Sec. 121.206. ADMINISTRATIVE PENALTY FOR VIOLATION OF
572-5 PIPELINE SAFETY STANDARD OR RULE. (a) The railroad commission may
572-6 assess an administrative penalty against a person who violates
572-7 Section 121.201 or a safety standard or rule relating to the
572-8 transportation of gas and gas pipeline facilities adopted under
572-9 that section.
572-10 (b) The penalty for each violation may not exceed $10,000.
572-11 Each day a violation continues may be considered a separate
572-12 violation for the purpose of penalty assessment.
572-13 (c) In determining the amount of the penalty, the railroad
572-14 commission shall consider:
572-15 (1) the person's history of previous violations of
572-16 Section 121.201 or a safety standard or rule relating to the
572-17 transportation of gas and gas pipeline facilities adopted under
572-18 that section;
572-19 (2) the seriousness of the violation; and
572-20 (3) any hazard to the health or safety of the public.
572-21 (V.A.C.S. Art. 6053-2, Secs. (a), (b), (c).)
572-22 Sec. 121.207. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
572-23 ASSESSMENT PROCEDURE. (a) An administrative penalty may be
572-24 assessed only after a person charged under Section 121.206 has been
572-25 given an opportunity for a public hearing.
573-1 (b) If a public hearing is held, the railroad commission
573-2 shall make findings of fact and shall issue a written decision as
573-3 to the occurrence of the violation and the penalty amount warranted
573-4 by the violation, incorporating, if appropriate, an order requiring
573-5 that the penalty be paid.
573-6 (c) If appropriate, the railroad commission shall
573-7 consolidate the hearings with other proceedings under Section
573-8 121.206.
573-9 (d) If a person charged under Section 121.206 fails to take
573-10 advantage of the opportunity for a public hearing, an
573-11 administrative penalty may be assessed by the railroad commission
573-12 after it has determined:
573-13 (1) that a violation occurred; and
573-14 (2) the penalty amount warranted by the violation.
573-15 (e) After assessing an administrative penalty, the railroad
573-16 commission shall issue an order requiring the penalty to be paid.
573-17 (f) Not later than the 30th day after the date an order is
573-18 issued finding that a violation described under Section 121.206
573-19 occurred, the railroad commission shall inform the person found in
573-20 violation of the amount of the penalty. (V.A.C.S. Art. 6053-2,
573-21 Secs. (d), (e), (f), (g), (h), (i).)
573-22 Sec. 121.208. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
573-23 PAYMENT OF PENALTY. Not later than the 30th day after the date the
573-24 railroad commission's decision or order imposing an administrative
573-25 penalty becomes final as provided by Section 2001.144, Government
574-1 Code, the person charged with the violation shall:
574-2 (1) pay the penalty in full; or
574-3 (2) if the person seeks judicial review of either the
574-4 amount of the penalty or the fact of the violation, or both:
574-5 (A) pay the penalty to the railroad commission
574-6 for placement in an escrow account; or
574-7 (B) give to the railroad commission a
574-8 supersedeas bond in a form approved by the railroad commission for
574-9 the amount of the penalty that is effective until all judicial
574-10 review of the order or decision is final. (V.A.C.S. Art. 6053-2,
574-11 Sec. (j).)
574-12 Sec. 121.209. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
574-13 REFUND OF PAYMENT OR RELEASE OF BOND. If through judicial review
574-14 of a decision or order regarding an administrative penalty it is
574-15 determined that a violation did not occur or that the amount of the
574-16 penalty should be reduced or not assessed, the railroad commission
574-17 shall, not later than the 30th day after the date of that
574-18 determination:
574-19 (1) remit the appropriate amount to the person, with
574-20 accrued interest if the utility paid the penalty to the railroad
574-21 commission; or
574-22 (2) execute a release of the bond if the utility
574-23 posted a supersedeas bond. (V.A.C.S. Art. 6053-2, Sec. (k).)
574-24 Sec. 121.210. RECOVERY BY ATTORNEY GENERAL. An
574-25 administrative penalty owed under Sections 121.206-121.208 may be
575-1 recovered in a civil action brought by the attorney general at the
575-2 request of the railroad commission. (V.A.C.S. Art. 6053-2, Sec.
575-3 (m).)
575-4 (Sections 121.211-121.250 reserved for expansion)
575-5 SUBCHAPTER F. GAS SAFETY
575-6 Sec. 121.251. RAILROAD COMMISSION TO INVESTIGATE USE OF GAS
575-7 MALODORANTS. The railroad commission shall investigate the use of
575-8 malodorants by a person, firm, or corporation in the business of:
575-9 (1) handling, storing, selling, or distributing
575-10 natural or liquefied petroleum gases, including butane and other
575-11 odorless gases, for private or commercial uses; or
575-12 (2) supplying these products to a public building or
575-13 the general public. (V.A.C.S. Art. 6053, Sec. 2 (part).)
575-14 Sec. 121.252. REGULATION OF USE OF MALODORANTS. (a) The
575-15 railroad commission, by rule as necessary to carry out the purposes
575-16 of this section, may:
575-17 (1) require a person, firm, or corporation subject to
575-18 Section 121.251 to odorize the gas by using a malodorant agent that
575-19 indicates the presence of gas by a distinctive odor;
575-20 (2) regulate the method of the use of malodorants; and
575-21 (3) direct and approve the use of containers and
575-22 other equipment used in connection with malodorants.
575-23 (b) A required malodorant agent must be:
575-24 (1) nontoxic and noncorrosive; and
575-25 (2) not harmful to leather diaphragms in gas
576-1 equipment. (V.A.C.S. Art. 6053, Sec. 2 (part).)
576-2 Sec. 121.253. INTERSTATE TRANSPORTATION OF GAS EXCLUDED.
576-3 This subchapter does not apply to gas transported out of this
576-4 state. (V.A.C.S. Art. 6053, Sec. 2 (part).)
576-5 (Sections 121.254-121.300 reserved for expansion)
576-6 SUBCHAPTER G. ENFORCEMENT REMEDIES
576-7 Sec. 121.301. RECEIVERSHIP. (a) On application of the
576-8 railroad commission, a court having jurisdiction to appoint a
576-9 receiver may appoint a receiver to control and manage, under the
576-10 direction of the court, the property of a pipeline subject to this
576-11 chapter if the person or corporation owning, operating, or
576-12 controlling the pipeline violates this chapter or a rule of the
576-13 railroad commission.
576-14 (b) The railroad commission may apply for a receivership
576-15 only if the railroad commission determines that the public interest
576-16 requires a receivership.
576-17 (c) The grounds for the appointment of a receiver under this
576-18 section are in addition to any other ground provided by law.
576-19 (V.A.C.S. Art. 6063.)
576-20 Sec. 121.302. CIVIL PENALTY. (a) A gas utility is subject
576-21 to a civil penalty if the gas utility:
576-22 (1) violates this chapter;
576-23 (2) fails to perform a duty imposed by this chapter;
576-24 or
576-25 (3) fails to comply with an order of the railroad
577-1 commission if the order is not stayed or suspended by a court
577-2 order. A penalty under this section is payable to the state and
577-3 shall be not less than $100 and not more than $1,000 for each
577-4 violation or failure.
577-5 (b) Each violation and each day that the failure continues
577-6 is subject to a separate penalty. (V.A.C.S. Art. 6062 (part).)
577-7 Sec. 121.303. PENALTY RECOVERABLE BY VICTIM OF
577-8 DISCRIMINATION. (a) A penalty of not less than $100 and not more
577-9 than $1,000 for each violation is recoverable by any person against
577-10 whom discrimination prohibited by Section 121.104 is committed.
577-11 (b) A suit to collect a penalty under this section must be
577-12 brought in the name of and for the benefit of the person aggrieved.
577-13 (c) A person who recovers a penalty under this section is
577-14 also entitled to reasonable attorney's fees.
577-15 (d) The penalty under this section is in addition to a
577-16 penalty under Section 121.302. (V.A.C.S. Art. 6062 (part).)
577-17 Sec. 121.304. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
577-18 PENALTY. (a) The railroad commission may assess an administrative
577-19 penalty against a gas utility that violates this chapter, fails to
577-20 perform a duty imposed by this chapter, or fails to comply with an
577-21 order of the railroad commission issued under this chapter and
577-22 applicable to the gas utility if the violation:
577-23 (1) results in pollution of the air or water of this
577-24 state; or
577-25 (2) poses a threat to the public safety.
578-1 (b) The penalty for each violation or failure may not exceed
578-2 $10,000 a day. Each day a violation continues may be considered a
578-3 separate violation for purposes of penalty assessment.
578-4 (c) In determining the amount of the penalty, the railroad
578-5 commission shall consider:
578-6 (1) the gas utility's history of previous violations
578-7 of this chapter;
578-8 (2) the seriousness of the violation; and
578-9 (3) any hazard to the health or safety of the public.
578-10 (V.A.C.S. Art. 6062A, Secs. (a), (b), (c).)
578-11 Sec. 121.305. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
578-12 PENALTY: ASSESSMENT PROCEDURE. (a) An administrative penalty may
578-13 be assessed under Section 121.304 only after a gas utility charged
578-14 under Section 121.304 has been given an opportunity for a public
578-15 hearing.
578-16 (b) If a public hearing is held, the railroad commission
578-17 shall make findings of fact and shall issue a written decision as
578-18 to the occurrence of the violation and the penalty amount warranted
578-19 by the violation, incorporating, if appropriate, an order requiring
578-20 that the penalty be paid.
578-21 (c) If appropriate, the railroad commission shall
578-22 consolidate the hearings with other proceedings under Section
578-23 121.304.
578-24 (d) If a gas utility charged under Section 121.304 fails to
578-25 take advantage of the opportunity for a public hearing, an
579-1 administrative penalty may be assessed by the railroad commission
579-2 after it has determined:
579-3 (1) that a violation occurred; and
579-4 (2) the penalty amount warranted by the violation.
579-5 (e) After assessing an administrative penalty, the railroad
579-6 commission shall issue an order requiring the penalty to be paid.
579-7 (f) Not later than the 30th day after the date an order is
579-8 issued finding that a violation described under Section 121.304
579-9 occurred, the railroad commission shall inform the gas utility
579-10 found in violation of the amount of the penalty. (V.A.C.S.
579-11 Art. 6062A, Secs. (d), (e), (f), (g), (h), (i).)
579-12 Sec. 121.306. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
579-13 PENALTY: PAYMENT OF PENALTY. (a) Not later than the 30th day
579-14 after the date the railroad commission's decision or order imposing
579-15 an administrative penalty becomes final as provided by Section
579-16 2001.144, Government Code, the gas utility charged with the
579-17 violation shall:
579-18 (1) pay the penalty in full; or
579-19 (2) if the gas utility seeks judicial review of either
579-20 the amount of the penalty or the fact of the violation, or both:
579-21 (A) pay the penalty to the railroad commission
579-22 for placement in an escrow account; or
579-23 (B) except as provided by Subsection (b), give
579-24 to the railroad commission a supersedeas bond, in the amount of the
579-25 penalty and in the form approved by the railroad commission, to
580-1 stay the collection of the penalty until all judicial review of the
580-2 order or decision is final.
580-3 (b) If the gas utility is appealing a second or subsequent
580-4 decision or order assessing an administrative penalty against the
580-5 gas utility, regardless of the finality of judicial review of any
580-6 previous decision or order, the railroad commission may, but is not
580-7 required to, accept a supersedeas bond. (V.A.C.S. Art. 6062A, Sec.
580-8 (j).)
580-9 Sec. 121.307. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
580-10 PENALTY: APPEALS. (a) The district courts of Travis County have
580-11 exclusive jurisdiction of the appeal of an order or decision of the
580-12 railroad commission assessing an administrative penalty under
580-13 Section 121.304.
580-14 (b) Subchapter G, Chapter 2001, Government Code, and the
580-15 substantial evidence rule apply to an appeal under this section.
580-16 (V.A.C.S. Art. 6062A, Sec. (n).)
580-17 Sec. 121.308. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
580-18 PENALTY: REFUND OF PAYMENT OR RELEASE OF BOND. If through
580-19 judicial review of a decision or order regarding an administrative
580-20 penalty it is determined that a violation did not occur or that the
580-21 amount of the penalty should be reduced or not assessed, the
580-22 railroad commission shall, not later than the 30th day after the
580-23 date of that determination:
580-24 (1) remit the appropriate amount to the gas utility
580-25 with accrued interest if the utility paid the penalty to the
581-1 railroad commission; or
581-2 (2) execute a release of the bond if the utility
581-3 posted a supersedeas bond. (V.A.C.S. Art. 6062A, Sec. (k).)
581-4 Sec. 121.309. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
581-5 PENALTY: RECOVERY. An administrative penalty owed under Sections
581-6 121.304-121.308 may be recovered in a civil action brought by the
581-7 attorney general at the request of the railroad commission.
581-8 (V.A.C.S. Art. 6062A, Sec. (m).)
581-9 Sec. 121.310. CRIMINAL PENALTY. (a) A person commits an
581-10 offense if:
581-11 (1) the person is an owner, officer, director, agent,
581-12 or employee of a person or corporation owning, operating, or
581-13 controlling a pipeline of a gas utility; and
581-14 (2) the person wilfully violates this chapter or
581-15 Chapter 122.
581-16 (b) An offense under this section is punishable by a fine of
581-17 not less than $50 and not more than $1,000. In addition to the
581-18 fine, the offense may be punishable by confinement in jail for not
581-19 less than 10 days nor more than six months. (V.A.C.S. Art. 6057b.)
581-20 (Sections 121.311-121.400 reserved for expansion)
581-21 SUBCHAPTER H. APPEALS
581-22 Sec. 121.401. APPEAL TO COURT. (a) A gas utility or other
581-23 party at interest may appeal to a court a decision of any rate,
581-24 classification, rule, charge, order, or act adopted by the railroad
581-25 commission by filing a petition against the railroad commission as
582-1 defendant and specifying each particular reason for objection.
582-2 (b) An action under this section is tried and determined as
582-3 are other civil causes in the court except as provided by Section
582-4 121.402. (V.A.C.S. Art. 6059 (part).)
582-5 Sec. 121.402. APPEAL: BURDEN AND STANDARD OF PROOF. In a
582-6 trial under this subchapter, the burden of proof is on the
582-7 plaintiff, who must show by clear and satisfactory evidence that
582-8 the rate, rule, order, classification, act, or charge that is the
582-9 subject of the complaint is unreasonable and unjust to the
582-10 plaintiff. (V.A.C.S. Art. 6059 (part).)
582-11 Sec. 121.403. APPEAL FROM TRIAL COURT. An appeal from an
582-12 action under Section 121.402:
582-13 (1) is at once returnable to the appellate court; and
582-14 (2) has precedence in the appellate court over each
582-15 other pending cause of a different character. (V.A.C.S. Art. 6059
582-16 (part).)
582-17 CHAPTER 122. GAS UTILITY PIPELINE TAX
582-18 SUBCHAPTER A. DEFINITIONS
582-19 Sec. 122.001. DEFINITIONS
582-20 (Sections 122.002-122.050 reserved for expansion)
582-21 SUBCHAPTER B. TAX IMPOSED
582-22 Sec. 122.051. TAX IMPOSED; RATE
582-23 Sec. 122.052. DEDUCTION OF CERTAIN COSTS
582-24 (Sections 122.053-122.100 reserved for expansion)
583-1 SUBCHAPTER C. PAYMENTS, REPORTS, AND RECORDS
583-2 Sec. 122.101. TAX PAYMENT
583-3 Sec. 122.102. REPORT
583-4 Sec. 122.103. PAYMENT AND REPORT DEADLINE
583-5 Sec. 122.104. RECORDS
583-6 (Sections 122.105-122.150 reserved for expansion)
583-7 SUBCHAPTER D. ADMINISTRATION
583-8 Sec. 122.151. ADMINISTRATION BY RAILROAD COMMISSION
583-9 Sec. 122.152. EXAMINATION OF RECORDS AND PERSON DOING
583-10 BUSINESS IN THIS STATE
583-11 (Sections 122.153-122.200 reserved for expansion)
583-12 SUBCHAPTER E. PENALTIES AND INTEREST
583-13 Sec. 122.201. PENALTY FOR FAILURE TO REPORT TAX
583-14 Sec. 122.202. PENALTY FOR FAILURE TO PAY TAX
583-15 Sec. 122.203. PENALTY FOR FAILURE TO REPORT AND PAY TAX
583-16 Sec. 122.204. MINIMUM PENALTY
583-17 Sec. 122.205. INTEREST
583-18 CHAPTER 122. GAS UTILITY PIPELINE TAX
583-19 SUBCHAPTER A. DEFINITIONS
583-20 Sec. 122.001. DEFINITIONS. In this chapter:
583-21 (1) "Gas utility" has the meaning assigned by Section
583-22 121.001(a)(2) and includes a person without regard to whether the
583-23 person acquired a part of the right-of-way for the pipeline by
583-24 eminent domain.
583-25 (2) "Gross income" includes all gross receipts the gas
584-1 utility received from activities described by Section 121.001(a)(2)
584-2 that are performed in this state, other than an activity excluded
584-3 by Chapter 121 from the activities that make a person a gas utility
584-4 for purposes of that chapter, and excludes the amount of the
584-5 deduction allowed by Section 122.052. (V.A.C.S. Art. 6060, Secs.
584-6 (1)(a) (part), (c) (part).)
584-7 (Sections 122.002-122.050 reserved for expansion)
584-8 SUBCHAPTER B. TAX IMPOSED
584-9 Sec. 122.051. TAX IMPOSED; RATE. (a) A tax is imposed on
584-10 each gas utility.
584-11 (b) The gas utility tax is imposed at the rate of one-half
584-12 of one percent of the gross income of the gas utility. (V.A.C.S.
584-13 Art. 6060, Secs. 1(a) (part), (b).)
584-14 Sec. 122.052. DEDUCTION OF CERTAIN COSTS. A gas utility is
584-15 entitled to deduct from the utility's gross receipts the amount of
584-16 the cost paid to another person by the utility for purchasing,
584-17 treating, or storing natural gas or for gathering or transporting
584-18 natural gas to the utility's facilities. (V.A.C.S. Art. 6060, Sec.
584-19 1(c) (part).)
584-20 (Sections 122.053-122.100 reserved for expansion)
584-21 SUBCHAPTER C. PAYMENTS, REPORTS, AND RECORDS
584-22 Sec. 122.101. TAX PAYMENT. (a) A gas utility on whom a tax
584-23 is imposed by this chapter during a calendar quarter shall pay the
584-24 tax to the railroad commission.
584-25 (b) A gas utility shall make the tax payment payable to the
585-1 comptroller. (V.A.C.S. Art. 6060, Sec. 2(a) (part).)
585-2 Sec. 122.102. REPORT. (a) A gas utility on whom a tax is
585-3 imposed by this chapter during a calendar quarter shall include
585-4 with the tax payment a report to the railroad commission that
585-5 includes a statement of:
585-6 (1) all activity subject to the tax during the period
585-7 covered by the report; and
585-8 (2) the gross income from that activity.
585-9 (b) The president, secretary, or general manager of a gas
585-10 utility that is a corporation or an owner of a gas utility that is
585-11 not a corporation must verify the truth and accuracy of the report.
585-12 (V.A.C.S. Art. 6060, Secs. 2(a) (part), (b).)
585-13 Sec. 122.103. PAYMENT AND REPORT DEADLINE. A tax payment
585-14 and report under this chapter for a calendar quarter are due on or
585-15 before the 20th day of the second month of the succeeding quarter.
585-16 (V.A.C.S. Art. 6060, Sec. 2(a) (part).)
585-17 Sec. 122.104. RECORDS. A person on whom a tax is imposed by
585-18 this chapter shall maintain until the fourth anniversary of the
585-19 date the tax report and payment for a calendar quarter are due
585-20 records sufficient to:
585-21 (1) document the person's tax report; and
585-22 (2) establish the amount of the tax imposed.
585-23 (V.A.C.S. Art. 6060, Sec. 3(b).)
585-24 (Sections 122.105-122.150 reserved for expansion)
586-1 SUBCHAPTER D. ADMINISTRATION
586-2 Sec. 122.151. ADMINISTRATION BY RAILROAD COMMISSION. The
586-3 railroad commission:
586-4 (1) shall administer and collect the taxes imposed by
586-5 this chapter; and
586-6 (2) may adopt rules necessary to administer this
586-7 chapter and to collect and enforce the taxes. (V.A.C.S. Art. 6060,
586-8 Sec. 3(a).)
586-9 Sec. 122.152. EXAMINATION OF RECORDS AND PERSON DOING
586-10 BUSINESS IN THIS STATE. To enforce this chapter, the railroad
586-11 commission may examine:
586-12 (1) a book, record, or paper of a person permitted to
586-13 do business in this state, including an agent of the person, at an
586-14 office of the person or agent in the United States; and
586-15 (2) an officer or employee of a person described by
586-16 Subdivision (1) under oath. (V.A.C.S. Art. 6060, Sec. 3(c).)
586-17 (Sections 122.153-122.200 reserved for expansion)
586-18 SUBCHAPTER E. PENALTIES AND INTEREST
586-19 Sec. 122.201. PENALTY FOR FAILURE TO REPORT TAX. A person
586-20 who is required to report a tax imposed by this chapter and fails
586-21 to report as required by Sections 122.102 and 122.103 shall pay:
586-22 (1) a penalty of five percent of the amount of the tax
586-23 due with the report; and
586-24 (2) if the report is not made before the 31st day
586-25 after the date the report is initially required to be made, an
587-1 additional penalty of five percent of the amount of the tax due
587-2 with the report. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
587-3 Sec. 122.202. PENALTY FOR FAILURE TO PAY TAX. A person who
587-4 is required to pay a tax imposed by this chapter and fails to pay
587-5 the tax as required by Sections 122.101 and 122.103 shall pay:
587-6 (1) a penalty of five percent of the amount of the tax
587-7 due and unpaid; and
587-8 (2) if the tax is not paid before the 31st day after
587-9 the date the tax payment is initially required to be made, an
587-10 additional penalty of five percent of the amount of the tax due and
587-11 unpaid. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
587-12 Sec. 122.203. PENALTY FOR FAILURE TO REPORT AND PAY TAX. If
587-13 a person fails to make the report and to pay the tax for a
587-14 reporting period, only the penalty and additional penalty under
587-15 Section 122.201, as applicable, for failure to make the report is
587-16 imposed. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
587-17 Sec. 122.204. MINIMUM PENALTY. If the amount of a penalty
587-18 or additional penalty computed as provided by this subchapter is
587-19 less than $5, the amount of the penalty or additional penalty is
587-20 $5. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
587-21 Sec. 122.205. INTEREST. A tax imposed by this chapter that
587-22 becomes delinquent draws interest at the rate of 12 percent a year
587-23 beginning on the 60th day after the date the tax becomes delinquent
587-24 and continues to draw interest until the date the tax is paid.
587-25 (V.A.C.S. Art. 6060, Sec. 4(b).)
588-1 CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
588-2 SUBCHAPTER A. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
588-3 Sec. 123.001. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
588-4 Sec. 123.002. EXCEPTION
588-5 (Sections 123.003-123.020 reserved for expansion)
588-6 SUBCHAPTER B. AGRICULTURE GAS USERS ACT
588-7 Sec. 123.021. SHORT TITLE
588-8 Sec. 123.022. DEFINITIONS
588-9 Sec. 123.023. CONTRACT FOR NATURAL GAS
588-10 Sec. 123.024. EXCEPTION
588-11 CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
588-12 SUBCHAPTER A. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
588-13 Sec. 123.001. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES.
588-14 A person, firm, corporation, partnership, association, or
588-15 cooperative who sells natural gas for irrigation may not reduce the
588-16 supply of natural gas for an agricultural purpose, including
588-17 irrigation pumping or crop drying, if that person or entity:
588-18 (1) sells and distributes natural gas in a
588-19 municipality; or
588-20 (2) delivers gas to the boundary of a municipality for
588-21 resale in the municipality. (V.A.C.S. Art. 6066f (part).)
588-22 Sec. 123.002. EXCEPTION. This subchapter does not apply to
588-23 the extent that the supply of natural gas is required to maintain
588-24 natural gas service for:
588-25 (1) use by residential users or hospitals; or
589-1 (2) an analogous use that is vital to public health
589-2 and safety. (V.A.C.S. Art. 6066f (part).)
589-3 (Sections 123.003-123.020 reserved for expansion)
589-4 SUBCHAPTER B. AGRICULTURE GAS USERS ACT
589-5 Sec. 123.021. SHORT TITLE. This subchapter may be cited as
589-6 the Agriculture Gas Users Act. (V.A.C.S. Art. 6066g, Sec. 1.)
589-7 Sec. 123.022. DEFINITIONS. In this subchapter:
589-8 (1) "Agriculture energy user" means a person who
589-9 purchases or uses natural gas for fuel for an irrigation well.
589-10 (2) "Corporation" means a domestic or foreign
589-11 corporation or association, and each lessee, assignee, trustee,
589-12 receiver, or other successor in interest of the corporation or
589-13 association, that has any of the powers or privileges of a
589-14 corporation not possessed by an individual or partnership.
589-15 (3) "Person" includes an individual, a partnership of
589-16 two or more persons having a joint or common interest, a mutual or
589-17 cooperative association, and a corporation.
589-18 (4) "Supplier" means a person who furnishes natural
589-19 gas to an agriculture energy user. (V.A.C.S. Art. 6066g, Sec. 2.)
589-20 Sec. 123.023. CONTRACT FOR NATURAL GAS. (a) A supplier and
589-21 an agriculture energy user may by contract establish a price and
589-22 other terms of service for the furnishing of natural gas.
589-23 (b) A contract under this section must be negotiated in good
589-24 faith and the result of arm's-length bargaining between the
589-25 parties.
590-1 (c) Each party shall provide information and maintain
590-2 records as reasonably necessary for the contract.
590-3 (d) A price charged to an agriculture energy user under the
590-4 contract may not exceed the price charged to a majority of the
590-5 supplier's commercial users or other similar large-volume users.
590-6 (V.A.C.S. Art. 6066g, Sec. 3.)
590-7 Sec. 123.024. EXCEPTION. This subchapter does not apply to
590-8 a transaction between an agriculture energy user and a supplier who
590-9 does not deliver gas to a municipality unless:
590-10 (1) the parties agree the subchapter applies to the
590-11 transaction; and
590-12 (2) the contract states the subchapter applies to the
590-13 transaction. (V.A.C.S. Art. 6066g, Sec. 4.)
590-14 CHAPTER 124. SUBMETERING TO MOBILE HOME PARKS
590-15 AND APARTMENT HOUSES
590-16 Sec. 124.001. DEFINITIONS
590-17 Sec. 124.002. SUBMETERING
590-18 CHAPTER 124. SUBMETERING TO MOBILE HOME PARKS
590-19 AND APARTMENT HOUSES
590-20 Sec. 124.001. DEFINITIONS. In this chapter:
590-21 (1) "Apartment house" means one or more buildings
590-22 containing more than five dwelling units each of which is rented
590-23 primarily for nontransient use with rent paid at intervals of one
590-24 week or longer. The term includes a rented or owner-occupied
590-25 residential condominium.
591-1 (2) "Dwelling unit" means:
591-2 (A) one or more rooms that are suitable for
591-3 occupancy as a residence and that contain kitchen and bathroom
591-4 facilities; or
591-5 (B) a mobile home in a mobile home park.
591-6 (V.A.C.S. Art. 6053, Sec. 1a(a).)
591-7 Sec. 124.002. SUBMETERING. (a) The railroad commission
591-8 shall adopt rules under which an owner, operator, or manager of a
591-9 mobile home park or apartment house may purchase natural gas
591-10 through a master meter for delivery to a dwelling unit in the
591-11 mobile home park or apartment house using individual submeters to
591-12 allocate fairly the cost of the gas consumption of each dwelling
591-13 unit.
591-14 (b) In addition to other appropriate safeguards for a
591-15 resident of a mobile home park or apartment house, the rules must
591-16 provide that the owner, operator, or manager of the mobile home
591-17 park or apartment house:
591-18 (1) may not deliver natural gas for sale or resale for
591-19 profit; and
591-20 (2) shall maintain adequate records relating to that
591-21 submetering and make those records available for inspection by the
591-22 resident during reasonable business hours. (V.A.C.S. Art. 6053,
591-23 Sec. 1a(b).)
591-24 (Chapters 125-160 reserved for expansion)
592-1 TITLE 4. DELIVERY OF UTILITY SERVICES
592-2 SUBTITLE A. UTILITY CORPORATIONS AND OTHER PROVIDERS
592-3 CHAPTER 161. ELECTRIC COOPERATIVE CORPORATIONS
592-4 SUBCHAPTER A. GENERAL PROVISIONS
592-5 Sec. 161.001. SHORT TITLE
592-6 Sec. 161.002. DEFINITIONS
592-7 Sec. 161.003. CONSTRUCTION OF CHAPTER
592-8 Sec. 161.004. CERTAIN CORPORATE NAMES PROHIBITED
592-9 Sec. 161.005. CHAPTER COMPLETE AND CONTROLLING
592-10 (Sections 161.006-161.050 reserved for expansion)
592-11 SUBCHAPTER B. CREATION AND OPERATION OF ELECTRIC COOPERATIVES
592-12 Sec. 161.051. INCORPORATORS
592-13 Sec. 161.052. DURATION OF CORPORATION
592-14 Sec. 161.053. NAME OF ELECTRIC COOPERATIVE
592-15 Sec. 161.054. ARTICLES OF INCORPORATION
592-16 Sec. 161.055. FILING AND RECORDING OF ARTICLES OF
592-17 INCORPORATION
592-18 Sec. 161.056. REVIVAL OF ARTICLES OF INCORPORATION
592-19 Sec. 161.057. ORGANIZATIONAL MEETING
592-20 Sec. 161.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATION
592-21 Sec. 161.059. NONPROFIT OPERATION
592-22 Sec. 161.060. MEMBERS NOT LIABLE FOR DEBTS OF ELECTRIC
592-23 COOPERATIVE
592-24 Sec. 161.061. LICENSE FEE
592-25 Sec. 161.062. EXEMPTION FROM EXCISE TAXES
593-1 Sec. 161.063. EXEMPTION FROM APPLICATION OF SECURITIES ACT
593-2 Sec. 161.064. BYLAWS
593-3 Sec. 161.065. MEMBERSHIP
593-4 Sec. 161.066. CERTIFICATE OF MEMBERSHIP
593-5 Sec. 161.067. MEETINGS OF MEMBERS
593-6 Sec. 161.068. NOTICE OF MEMBERS' MEETING
593-7 Sec. 161.069. QUORUM OF MEMBERS
593-8 Sec. 161.070. VOTING BY MEMBERS
593-9 Sec. 161.071. BOARD OF DIRECTORS
593-10 Sec. 161.072. ELECTION OF DIRECTORS; VACANCIES
593-11 Sec. 161.073. COMPENSATION OF DIRECTORS
593-12 Sec. 161.074. QUORUM OF DIRECTORS
593-13 Sec. 161.075. BOARD MEETINGS
593-14 Sec. 161.076. OFFICERS, AGENTS, AND EMPLOYEES
593-15 Sec. 161.077. EXECUTIVE COMMITTEE
593-16 Sec. 161.078. INDEMNIFICATION
593-17 Sec. 161.079. APPLICABILITY OF CHAPTER TO CORPORATIONS
593-18 ORGANIZED UNDER OTHER LAW
593-19 (Sections 161.080-161.120 reserved for expansion)
593-20 SUBCHAPTER C. POWERS OF ELECTRIC COOPERATIVE
593-21 Sec. 161.121. GENERAL POWERS
593-22 Sec. 161.122. PROVISION OF RURAL ELECTRIFICATION
593-23 Sec. 161.123. POWERS RELATING TO PROVISION OF ELECTRIC
593-24 ENERGY
594-1 Sec. 161.124. PROVISION OF ELECTRIC ENERGY TO CERTAIN
594-2 NONMEMBER ENTITIES
594-3 Sec. 161.125. EMINENT DOMAIN
594-4 (Sections 161.126-161.150 reserved for expansion)
594-5 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
594-6 Sec. 161.151. AMENDMENT OF ARTICLES OF INCORPORATION
594-7 Sec. 161.152. ARTICLES OF AMENDMENT
594-8 (Sections 161.153-161.200 reserved for expansion)
594-9 SUBCHAPTER E. CONSOLIDATION OF ELECTRIC COOPERATIVES
594-10 Sec. 161.201. CONSOLIDATION
594-11 Sec. 161.202. ARTICLES OF CONSOLIDATION
594-12 (Sections 161.203-161.250 reserved for expansion)
594-13 SUBCHAPTER F. DISSOLUTION
594-14 Sec. 161.251. DISSOLUTION
594-15 Sec. 161.252. EXISTENCE FOLLOWING DISSOLUTION
594-16 Sec. 161.253. DISTRIBUTION OF NET ASSETS ON DISSOLUTION
594-17 Sec. 161.254. DISSOLUTION OF DEFECTIVELY INCORPORATED
594-18 ELECTRIC COOPERATIVE
594-19 CHAPTER 161. ELECTRIC COOPERATIVE CORPORATIONS
594-20 SUBCHAPTER A. GENERAL PROVISIONS
594-21 Sec. 161.001. SHORT TITLE. This chapter may be cited as the
594-22 Electric Cooperative Corporation Act. (V.A.C.S. Art. 1528b, Sec.
594-23 1.)
594-24 Sec. 161.002. DEFINITIONS. In this chapter:
594-25 (1) "Acquire" means and includes construct, acquire by
595-1 purchase, lease, devise, or gift, or other mode of acquisition.
595-2 (2) "Board" means the board of directors of an
595-3 electric cooperative.
595-4 (3) "Central station service" means electric service
595-5 provided by a municipally owned electric system or by an electric
595-6 corporation described by Subchapter A, Chapter 181.
595-7 (4) "Electric cooperative" means a corporation that is
595-8 organized under this chapter or that becomes subject to this
595-9 chapter as provided by this chapter.
595-10 (5) "Member" means:
595-11 (A) an incorporator of an electric cooperative;
595-12 or
595-13 (B) a person admitted to membership in the
595-14 electric cooperative as provided by Section 161.065.
595-15 (6) "Obligation" includes a bond, note, debenture,
595-16 interim certificate or receipt, or other evidence of indebtedness
595-17 issued by an electric cooperative.
595-18 (7) "Rural area" means an area, including both farm
595-19 and nonfarm population of the area, that is not located in:
595-20 (A) a municipality having a population greater
595-21 than 1,500; or
595-22 (B) an unincorporated city, town, village, or
595-23 borough having a population greater than 1,500. (V.A.C.S.
595-24 Art. 1528b, Secs. 2(1), (2), (3), (6), (7), (8), 3 (part).)
595-25 Sec. 161.003. CONSTRUCTION OF CHAPTER. This chapter shall
596-1 be liberally construed. The enumeration of a purpose, power,
596-2 method, or thing does not exclude similar purposes, powers,
596-3 methods, or things. (V.A.C.S. Art. 1528b, Sec. 34.)
596-4 Sec. 161.004. CERTAIN CORPORATE NAMES PROHIBITED. A
596-5 corporation organized under the laws of this state or authorized to
596-6 do business in this state may not use the words "electric
596-7 cooperative" in the corporation's name unless the corporation is
596-8 organized under this chapter. (V.A.C.S. Art. 1528b, Sec. 7.)
596-9 Sec. 161.005. CHAPTER COMPLETE AND CONTROLLING. This
596-10 chapter is complete in itself and is controlling. (V.A.C.S.
596-11 Art. 1528b, Sec. 36 (part).)
596-12 (Sections 161.005-161.050 reserved for expansion)
596-13 SUBCHAPTER B. CREATION AND OPERATION OF ELECTRIC COOPERATIVES
596-14 Sec. 161.051. INCORPORATORS. (a) Three or more individuals
596-15 may act as incorporators of an electric cooperative by executing
596-16 articles of incorporation as provided by this chapter.
596-17 (b) An incorporator must:
596-18 (1) be at least 21 years of age; and
596-19 (2) reside in this state. (V.A.C.S. Art. 1528b, Sec.
596-20 5.)
596-21 Sec. 161.052. DURATION OF CORPORATION. An electric
596-22 cooperative may be created as a perpetual corporation. (V.A.C.S.
596-23 Art. 1528b, Secs. 4 (part), 6(a) (part).)
596-24 Sec. 161.053. NAME OF ELECTRIC COOPERATIVE. The name of an
596-25 electric cooperative must:
597-1 (1) include the words "Electric Cooperative";
597-2 (2) include the term "Corporation," "Incorporated,"
597-3 "Inc.," "Association," or "Company"; and
597-4 (3) be distinct from the name of any other corporation
597-5 organized under the laws of this state. (V.A.C.S. Art. 1528b, Sec.
597-6 6(a) (part).)
597-7 Sec. 161.054. ARTICLES OF INCORPORATION. (a) The articles
597-8 of incorporation of an electric cooperative must state:
597-9 (1) the name of the cooperative;
597-10 (2) the purpose for which the cooperative is formed;
597-11 (3) the name and address of each incorporator;
597-12 (4) the number of directors;
597-13 (5) the address of the cooperative's principal office
597-14 and the name and address of its agent on whom process may be
597-15 served;
597-16 (6) the duration of the cooperative;
597-17 (7) the terms under which a person is admitted to
597-18 membership and retains membership in the cooperative, unless the
597-19 articles expressly state that the determination of membership
597-20 matters is reserved to the directors by the bylaws; and
597-21 (8) any provisions that the incorporators include for
597-22 the regulation of the business and the conduct of the affairs of
597-23 the cooperative.
597-24 (b) The articles of incorporation do not need to state any
597-25 of the corporate powers enumerated in this chapter. (V.A.C.S.
598-1 Art. 1528b, Secs. 6(a) (part), (b).)
598-2 Sec. 161.055. FILING AND RECORDING OF ARTICLES OF
598-3 INCORPORATION. (a) The secretary of state shall receive articles
598-4 of incorporation of an electric cooperative if the incorporators of
598-5 the cooperative:
598-6 (1) apply for filing the articles;
598-7 (2) furnish satisfactory evidence of compliance with
598-8 this chapter to the secretary of state; and
598-9 (3) pay a fee of $10.
598-10 (b) The secretary of state shall:
598-11 (1) file the articles of incorporation in the
598-12 secretary's office;
598-13 (2) record the articles at length in a book to be kept
598-14 for that purpose;
598-15 (3) retain the original articles of incorporation on
598-16 file in the secretary's office; and
598-17 (4) issue a certificate showing the recording of the
598-18 articles of incorporation and the electric cooperative's authority
598-19 to do business under the articles.
598-20 (c) A copy of the articles of incorporation or of the record
598-21 of the articles, certified under the state seal, is evidence of the
598-22 creation of the electric cooperative.
598-23 (d) The existence of the electric cooperative dates from the
598-24 filing of the articles in the office of the secretary of state.
598-25 The certificate of the secretary of state is evidence of that
599-1 filing. (V.A.C.S. Art. 1528b, Secs. 8, 29 (part).)
599-2 Sec. 161.056. REVIVAL OF ARTICLES OF INCORPORATION. (a) If
599-3 the articles of incorporation of an electric cooperative expire by
599-4 limitation, the cooperative, with the consent of a majority of its
599-5 members, may revive the articles by filing:
599-6 (1) new articles of incorporation under this chapter;
599-7 and
599-8 (2) a certified copy of the expired original articles.
599-9 (b) An electric cooperative that revives its articles of
599-10 incorporation has all the privileges, immunities, and rights of
599-11 property exercised and held by the cooperative at the time the
599-12 original articles expired.
599-13 (c) New articles of incorporation filed under this section
599-14 must recite the privileges, immunities, and rights of property
599-15 exercised and held by the cooperative at the time the original
599-16 articles expired. (V.A.C.S. Art. 1528b, Sec. 9.)
599-17 Sec. 161.057. ORGANIZATIONAL MEETING. (a) After the
599-18 certificate of incorporation is issued, the incorporators of an
599-19 electric cooperative shall meet to adopt bylaws, elect officers,
599-20 and transact other business that properly comes before the meeting.
599-21 (b) A majority of the incorporators shall call the
599-22 organizational meeting.
599-23 (c) The incorporators calling the organizational meeting
599-24 shall give at least three days' notice of the meeting by mail to
599-25 each incorporator. The notice must state the time and place of the
600-1 meeting. The notice may be waived in writing. (V.A.C.S.
600-2 Art. 1528b, Sec. 10.)
600-3 Sec. 161.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATION.
600-4 (a) An electric cooperative that files defective articles of
600-5 incorporation or fails to take an action necessary to perfect its
600-6 corporate organization may:
600-7 (1) file corrected articles of incorporation or amend
600-8 the original articles; and
600-9 (2) take any action necessary to correct the defect.
600-10 (b) An action taken under this section is valid and binding
600-11 on any person concerned. (V.A.C.S. Art. 1528b, Sec. 32.)
600-12 Sec. 161.059. NONPROFIT OPERATION. (a) An electric
600-13 cooperative shall operate without profit to its members.
600-14 (b) The rates, fees, rents, and other charges for electric
600-15 energy and other facilities, supplies, equipment, or services
600-16 furnished by the cooperative must be sufficient at all times to:
600-17 (1) pay all operating and maintenance expenses
600-18 necessary or desirable for the prudent conduct of its business;
600-19 (2) pay the principal of and interest on the
600-20 obligations issued or assumed by the cooperative in performing the
600-21 purpose for which the cooperative was organized; and
600-22 (3) create reserves.
600-23 (c) The cooperative shall devote its revenues:
600-24 (1) first to the payment of operating and maintenance
600-25 expenses and the principal and interest on outstanding obligations;
601-1 and
601-2 (2) then to the reserves prescribed by the board for
601-3 improvement, new construction, depreciation, and contingencies.
601-4 (d) The cooperative shall periodically return revenues not
601-5 required for the purposes prescribed by Subsection (c) to the
601-6 members in proportion to the amount of business done with each
601-7 member during the applicable period. The cooperative may return
601-8 revenues:
601-9 (1) in cash, by abatement of current charges for
601-10 electric energy, or in another manner determined by the board; or
601-11 (2) through a general rate reduction to members.
601-12 (V.A.C.S. Art. 1528b, Sec. 25.)
601-13 Sec. 161.060. MEMBERS NOT LIABLE FOR DEBTS OF ELECTRIC
601-14 COOPERATIVE. A member is not liable for a debt of an electric
601-15 cooperative except for:
601-16 (1) a debt contracted between the member and the
601-17 cooperative; or
601-18 (2) an amount not to exceed the unpaid amount of the
601-19 member's membership fee. (V.A.C.S. Art. 1528b, Sec. 16 (part).)
601-20 Sec. 161.061. LICENSE FEE. Not later than May 1 of each
601-21 year, each electric cooperative shall pay to the secretary of state
601-22 a license fee of $10. (V.A.C.S. Art. 1528b, Sec. 30 (part).)
601-23 Sec. 161.062. EXEMPTION FROM EXCISE TAXES. An electric
601-24 cooperative is exempt from all excise taxes but is exempt from the
601-25 franchise tax imposed by Chapter 171, Tax Code, only if the
602-1 cooperative is exempted by that chapter. (V.A.C.S. Art. 1528b,
602-2 Sec. 30 (part).)
602-3 Sec. 161.063. EXEMPTION FROM APPLICATION OF SECURITIES ACT.
602-4 The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
602-5 Statutes) does not apply to:
602-6 (1) an obligation issued to secure a debt of an
602-7 electric cooperative to the United States; or
602-8 (2) the issuance of a membership certificate by an
602-9 electric cooperative. (V.A.C.S. Art. 1528b, Sec. 31.)
602-10 Sec. 161.064. BYLAWS. (a) The board may adopt, amend, or
602-11 repeal the bylaws of the cooperative.
602-12 (b) The bylaws may contain any provision for the regulation
602-13 and management of the affairs of the electric cooperative that is
602-14 consistent with the articles of incorporation. (V.A.C.S.
602-15 Art. 1528b, Secs. 4 (part), 11.)
602-16 Sec. 161.065. MEMBERSHIP. (a) A person is eligible to
602-17 become a member of an electric cooperative if the person has a
602-18 dwelling, structure, apparatus, or point of delivery at which the
602-19 person does not receive central station service from another source
602-20 and that is located in an area in which the cooperative is
602-21 authorized to provide electric energy, and the person:
602-22 (1) uses or agrees to use electric energy or the
602-23 facilities, supplies, equipment, or services furnished by the
602-24 cooperative at the dwelling, structure, apparatus, or point of
602-25 delivery; or
603-1 (2) is an incorporator of the cooperative.
603-2 (b) An electric cooperative may become a member of another
603-3 electric cooperative and may fully use the facilities and services
603-4 of that cooperative.
603-5 (c) Membership in an electric cooperative is not
603-6 transferable. (V.A.C.S. Art. 1528b, Secs. 12, 16 (part).)
603-7 Sec. 161.066. CERTIFICATE OF MEMBERSHIP. (a) An electric
603-8 cooperative shall issue a certificate of membership to a member who
603-9 pays the member's membership fee in full.
603-10 (b) A certificate of membership is not transferable.
603-11 (c) A certificate of membership shall be surrendered to the
603-12 cooperative on the resignation, expulsion, or death of the member.
603-13 (V.A.C.S. Art. 1528b, Sec. 16 (part).)
603-14 Sec. 161.067. MEETINGS OF MEMBERS. (a) An electric
603-15 cooperative may hold a meeting of its members at a place provided
603-16 in the bylaws. If the bylaws do not provide for a place for a
603-17 meeting, the cooperative shall hold the meeting in the principal
603-18 office of the cooperative in this state.
603-19 (b) An electric cooperative shall hold an annual meeting of
603-20 its members at the time provided in the bylaws. Failure to hold
603-21 the annual meeting at the designated time does not result in
603-22 forfeiture or dissolution of the cooperative.
603-23 (c) A special meeting of the members may be called by:
603-24 (1) the president;
603-25 (2) the board;
604-1 (3) a majority of the directors;
604-2 (4) the members by a petition signed by at least 10
604-3 percent of the members; or
604-4 (5) an officer or other person as provided by the
604-5 articles of incorporation or bylaws. (V.A.C.S. Art. 1528b, Sec.
604-6 13.)
604-7 Sec. 161.068. NOTICE OF MEMBERS' MEETING. (a) Written
604-8 notice of each meeting of the members shall be delivered to each
604-9 member of record, either personally or by mail, not earlier than
604-10 the 30th day or later than the 10th day before the date of the
604-11 meeting. The notice must be delivered by or at the direction of
604-12 the president, the secretary, or the officers or other persons
604-13 calling the meeting.
604-14 (b) The notice must state the time and place of the meeting
604-15 and, in the case of a special meeting, each purpose for which the
604-16 meeting is called.
604-17 (c) A member may waive notice of meetings in writing.
604-18 (d) A notice that is mailed is considered to be delivered
604-19 when the notice is deposited in the United States mail in a sealed
604-20 envelope with postage prepaid addressed to the member at the
604-21 member's address as it appears on the records of the electric
604-22 cooperative. (V.A.C.S. Art. 1528b, Sec. 14.)
604-23 Sec. 161.069. QUORUM OF MEMBERS. Unless otherwise provided
604-24 by the articles of incorporation, a quorum for the transaction of
604-25 business at a meeting of the members of an electric cooperative is
605-1 a majority of the members present in person or represented by
605-2 proxy. If voting by mail is provided for in the bylaws, members
605-3 voting by mail are counted as present for purposes of determining
605-4 whether a quorum is present. (V.A.C.S. Art. 1528b, Sec. 17.)
605-5 Sec. 161.070. VOTING BY MEMBERS. Each member present at a
605-6 meeting of the members is entitled to one vote on each matter
605-7 submitted to a vote at the meeting. The bylaws may provide for
605-8 voting by proxy or by mail. (V.A.C.S. Art. 1528b, Sec. 15.)
605-9 Sec. 161.071. BOARD OF DIRECTORS. (a) The business and
605-10 affairs of an electric cooperative shall be managed by a board of
605-11 directors. The board consists of at least three directors. Each
605-12 director must be a member of the cooperative. The bylaws may
605-13 prescribe additional qualifications for directors.
605-14 (b) The board may exercise any power of an electric
605-15 cooperative not conferred on the members by this chapter or by the
605-16 cooperative's articles of incorporation or bylaws. (V.A.C.S.
605-17 Art. 1528b, Secs. 6(a) (part), 18, 19 (part).)
605-18 Sec. 161.072. ELECTION OF DIRECTORS; VACANCIES. (a) The
605-19 incorporators of an electric cooperative named in the articles of
605-20 incorporation shall serve as directors until the first annual
605-21 meeting of the members, and until their successors are elected and
605-22 qualify. Subsequently, the directors shall be elected by the
605-23 members at each annual meeting or as otherwise provided by the
605-24 bylaws.
605-25 (b) A vacancy on the board shall be filled as provided by
606-1 the bylaws. A person selected to fill a vacancy serves until the
606-2 next regular election of directors. (V.A.C.S. Art. 1528b, Secs.
606-3 6(a) (part), 19 (part), 20.)
606-4 Sec. 161.073. COMPENSATION OF DIRECTORS. A director of an
606-5 electric cooperative is entitled to the compensation and
606-6 reimbursement for expenses actually and necessarily incurred by the
606-7 director as provided by the bylaws. (V.A.C.S. Art. 1528b, Sec. 19
606-8 (part).)
606-9 Sec. 161.074. QUORUM OF DIRECTORS. (a) A majority of the
606-10 directors is a quorum unless the articles of incorporation or the
606-11 bylaws provide that a greater number of the directors is a quorum.
606-12 (b) A majority of the directors present at a meeting at
606-13 which a quorum is present may exercise the board's authority unless
606-14 the articles of incorporation or the bylaws require a greater
606-15 number of directors to exercise the board's authority. (V.A.C.S.
606-16 Art. 1528b, Sec. 21.)
606-17 Sec. 161.075. BOARD MEETINGS. (a) The board shall hold a
606-18 regular or special board meeting at the place and on the notice
606-19 prescribed by the bylaws.
606-20 (b) The attendance of a director at a board meeting
606-21 constitutes a waiver of notice of the meeting unless the director
606-22 attends the meeting for the express purpose of objecting to the
606-23 transaction of business at the meeting because the meeting is not
606-24 lawfully called or convened.
606-25 (c) A notice or waiver of notice of a board meeting is not
607-1 required to specify the business to be transacted at the meeting or
607-2 the purpose of the meeting. (V.A.C.S. Art. 1528b, Sec. 22.)
607-3 Sec. 161.076. OFFICERS, AGENTS, AND EMPLOYEES. (a) The
607-4 board shall elect from the board's membership a president, a vice
607-5 president, a secretary, and a treasurer. The terms of office,
607-6 powers, duties, and compensation of the officers elected under this
607-7 subsection shall be provided for by the bylaws.
607-8 (b) The same person may hold the offices of secretary and of
607-9 treasurer.
607-10 (c) The board may appoint other officers, agents, and
607-11 employees as the board considers necessary and shall prescribe the
607-12 powers, duties, and compensation of those persons.
607-13 (d) The board may remove an officer, agent, or employee
607-14 elected or appointed by the board if the board determines that the
607-15 removal will serve the best interests of the cooperative.
607-16 (V.A.C.S. Art. 1528b, Secs. 4 (part), 23.)
607-17 Sec. 161.077. EXECUTIVE COMMITTEE. (a) The bylaws of an
607-18 electric cooperative may authorize the board to elect an executive
607-19 committee from the board's membership.
607-20 (b) The board may delegate to the executive committee the
607-21 management of the current and ordinary business of the cooperative
607-22 and other duties as prescribed by the bylaws.
607-23 (c) The designation of an executive committee and the
607-24 delegation of authority to the committee does not relieve the board
607-25 or any director of a responsibility imposed on the board or the
608-1 director by this chapter. (V.A.C.S. Art. 1528b, Sec. 24.)
608-2 Sec. 161.078. INDEMNIFICATION. An electric cooperative may
608-3 indemnify and provide indemnity insurance in the same manner and to
608-4 the same extent as a nonprofit corporation under Article 2.22A,
608-5 Texas Non-Profit Corporation Act (Article 1396-2.22A, Vernon's
608-6 Texas Civil Statutes). (V.A.C.S. Art. 1528b, Sec. 19A.)
608-7 Sec. 161.079. APPLICABILITY OF CHAPTER TO CORPORATIONS
608-8 ORGANIZED UNDER OTHER LAW. A cooperative or nonprofit corporation
608-9 or association organized under any other law of this state for the
608-10 purpose of engaging in rural electrification may, by a majority
608-11 vote of the members present in person or represented by proxy at a
608-12 meeting called for that purpose, amend its articles of
608-13 incorporation to comply with this chapter. (V.A.C.S. Art. 1528b,
608-14 Sec. 33.)
608-15 (Sections 161.080-161.120 reserved for expansion)
608-16 SUBCHAPTER C. POWERS OF ELECTRIC COOPERATIVE
608-17 Sec. 161.121. GENERAL POWERS. An electric cooperative may:
608-18 (1) sue and be sued in its corporate name;
608-19 (2) adopt and alter a corporate seal and use the seal
608-20 or a facsimile of the seal as required by law;
608-21 (3) acquire, own, hold, maintain, exchange, or use
608-22 property or an interest in property, including plants, buildings,
608-23 works, machinery, supplies, equipment, apparatus, and transmission
608-24 and distribution lines or systems that are necessary, convenient,
608-25 or useful;
609-1 (4) dispose of, mortgage, or lease as lessor any of
609-2 its property or assets;
609-3 (5) borrow money and otherwise contract indebtedness,
609-4 issue obligations for its indebtedness, and secure the payment of
609-5 indebtedness by mortgage, pledge, or deed of trust on any or all of
609-6 its property or revenue;
609-7 (6) accept gifts or grants of money, services, or
609-8 property;
609-9 (7) make any contracts necessary or convenient for the
609-10 exercise of the powers granted by this chapter;
609-11 (8) conduct its business and have offices inside or
609-12 outside this state;
609-13 (9) adopt and amend bylaws not inconsistent with the
609-14 articles of incorporation for the administration and regulation of
609-15 the affairs of the cooperative; and
609-16 (10) perform any other acts for the cooperative or its
609-17 members or for another electric cooperative or its members, and
609-18 exercise any other power, that may be necessary, convenient, or
609-19 appropriate to accomplish the purpose for which the cooperative is
609-20 organized. (V.A.C.S. Art. 1528b, Sec. 4 (part).)
609-21 Sec. 161.122. PROVISION OF RURAL ELECTRIFICATION. An
609-22 electric cooperative may engage in rural electrification by:
609-23 (1) furnishing electric energy to any person for
609-24 delivery to a dwelling, structure, apparatus, or point of delivery
609-25 that is:
610-1 (A) located in a rural area; and
610-2 (B) not receiving central station service, even
610-3 if the person is receiving central station service at other points
610-4 of delivery;
610-5 (2) furnishing electric energy to a person desiring
610-6 that service in a municipality or unincorporated city or town,
610-7 rural or nonrural, served by the cooperative and in which central
610-8 station service was not available at the time the cooperative began
610-9 furnishing electric energy to the residents of the municipality or
610-10 unincorporated city or town;
610-11 (3) assisting in the wiring of the premises of persons
610-12 in rural areas or the acquisition, supply, or installation of
610-13 electrical or plumbing equipment in those premises; or
610-14 (4) furnishing electric energy, wiring facilities, or
610-15 electrical or plumbing equipment or service to another electric
610-16 cooperative or to the members of another electric cooperative.
610-17 (V.A.C.S. Art. 1528b, Sec. 3 (part).)
610-18 Sec. 161.123. POWERS RELATING TO PROVISION OF ELECTRIC
610-19 ENERGY. An electric cooperative may:
610-20 (1) generate, acquire, and accumulate electric energy
610-21 and transmit, distribute, sell, furnish, and dispose of that
610-22 electric energy to its members only;
610-23 (2) assist its members only to wire their premises and
610-24 install in those premises electrical and plumbing fixtures,
610-25 machinery, supplies, apparatus, and equipment of any kind, and in
611-1 connection with those activities:
611-2 (A) acquire, lease, sell, distribute, install,
611-3 and repair electrical and plumbing fixtures, machinery, supplies,
611-4 apparatus, and equipment of any kind; and
611-5 (B) receive, acquire, endorse, pledge, and
611-6 dispose of notes, bonds, and other evidences of indebtedness;
611-7 (3) furnish to other electric cooperatives or their
611-8 members electric energy, wiring facilities, electrical and plumbing
611-9 equipment, and services that are convenient or useful; and
611-10 (4) establish, regulate, and collect rates, fees,
611-11 rents, or other charges for electric energy or other facilities,
611-12 supplies, equipment, or services furnished by the electric
611-13 cooperative. (V.A.C.S. Art. 1528b, Sec. 4 (part).)
611-14 Sec. 161.124. PROVISION OF ELECTRIC ENERGY TO CERTAIN
611-15 NONMEMBER ENTITIES. An electric cooperative may generate, acquire,
611-16 and accumulate electric energy and transmit, distribute, sell,
611-17 furnish, and dispose of that electric energy to any of the
611-18 following that is engaged in the generation, transmission, or
611-19 distribution of electricity:
611-20 (1) a corporation, association, or firm;
611-21 (2) the United States;
611-22 (3) this state or a political subdivision of this
611-23 state; or
611-24 (4) a municipal power agency or political subdivision
611-25 of this state that is a co-owner with the electric cooperative of
612-1 an electric generation facility. (V.A.C.S. Art. 1528b, Sec. 4A
612-2 (part).)
612-3 Sec. 161.125. EMINENT DOMAIN. An electric cooperative may
612-4 exercise the power of eminent domain in the manner provided by
612-5 state law for acquiring private property for public use. The power
612-6 does not apply to state property or property of a political
612-7 subdivision in this state. (V.A.C.S. Art. 1528b, Sec. 4 (part).)
612-8 (Sections 161.126-161.150 reserved for expansion)
612-9 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
612-10 Sec. 161.151. AMENDMENT OF ARTICLES OF INCORPORATION.
612-11 (a) An electric cooperative may amend its articles of
612-12 incorporation by a majority vote of the members of the cooperative
612-13 present in person or represented by proxy at a regular meeting or
612-14 at a special meeting of its members called for that purpose as
612-15 provided by the bylaws.
612-16 (b) Notice of the meeting to members must state the general
612-17 nature of each proposed amendment to be presented and voted on at
612-18 the meeting. Valid action may not be taken at the meeting unless
612-19 at least five percent of the members of the electric cooperative
612-20 either attend the meeting in person or are represented at the
612-21 meeting by proxy.
612-22 (c) The power to amend the articles of incorporation
612-23 includes the power to accomplish any desired change in the articles
612-24 of incorporation and to include any purpose, power, or provision
612-25 that is permitted to be included in original articles of
613-1 incorporation executed at the time the amendment is made.
613-2 (V.A.C.S. Art. 1528b, Sec. 26 (part).)
613-3 Sec. 161.152. ARTICLES OF AMENDMENT. (a) Articles of
613-4 amendment of an electric cooperative must be:
613-5 (1) signed by the president or vice president and
613-6 attested by the secretary, certifying to the amendment and its
613-7 lawful adoption; and
613-8 (2) executed, acknowledged, filed, and recorded in the
613-9 same manner as the original articles of incorporation.
613-10 (b) An amendment takes effect when the secretary of state
613-11 accepts the articles of amendment for filing and recording and
613-12 issues a certificate of amendment. The certificate of amendment is
613-13 evidence of the filing of the amendment.
613-14 (c) The secretary of state shall charge and collect a fee of
613-15 $2.50 for filing articles of amendment and issuing a certificate of
613-16 amendment. (V.A.C.S. Art. 1528b, Secs. 26 (part), 29 (part).)
613-17 (Sections 161.153-161.200 reserved for expansion)
613-18 SUBCHAPTER E. CONSOLIDATION OF ELECTRIC COOPERATIVES
613-19 Sec. 161.201. CONSOLIDATION. (a) Two or more electric
613-20 cooperatives may enter into an agreement to consolidate the
613-21 cooperatives. The agreement must state:
613-22 (1) the terms of the consolidation;
613-23 (2) the name of the proposed consolidated cooperative;
613-24 (3) the number of directors of the proposed
613-25 consolidated cooperative;
614-1 (4) the time of the annual meeting and election; and
614-2 (5) the names of at least three persons to be
614-3 directors until the first annual meeting.
614-4 (b) A consolidation agreement may be approved only on the
614-5 votes of a majority of the members of each electric cooperative
614-6 present in person or represented by proxy at a regular meeting or
614-7 at a special meeting of its members called for that purpose.
614-8 (V.A.C.S. Art. 1528b, Sec. 27(a) (part).)
614-9 Sec. 161.202. ARTICLES OF CONSOLIDATION. (a) The articles
614-10 of consolidation must:
614-11 (1) conform substantially to original articles of
614-12 incorporation of an electric cooperative; and
614-13 (2) be executed, acknowledged, filed, and recorded in
614-14 the same manner as original articles of incorporation.
614-15 (b) The directors named in the consolidation agreement shall
614-16 as incorporators sign and acknowledge the articles of
614-17 consolidation.
614-18 (c) The secretary of state shall charge and collect a fee of
614-19 $10 for filing articles of consolidation and issuing a certificate
614-20 of consolidation.
614-21 (d) When the secretary of state accepts the articles of
614-22 consolidation for filing and recording and issues a certificate of
614-23 consolidation, the proposed consolidated electric cooperative
614-24 described in the articles under its designated name exists as a
614-25 body corporate, with all the powers of an electric cooperative
615-1 originally organized under this chapter. (V.A.C.S. Art. 1528b,
615-2 Secs. 27(a) (part), (b), 29 (part).)
615-3 (Sections 161.203-161.250 reserved for expansion)
615-4 SUBCHAPTER F. DISSOLUTION
615-5 Sec. 161.251. DISSOLUTION. (a) An electric cooperative may
615-6 be dissolved by a majority vote of its members present in person or
615-7 represented by proxy at a regular meeting or at a special meeting
615-8 of its members called for that purpose.
615-9 (b) A certificate of dissolution must be:
615-10 (1) signed by the president or vice president and
615-11 attested by the secretary, certifying to the dissolution and
615-12 stating that the officers have been authorized by a vote of the
615-13 members under Subsection (a) to execute and file the certificate;
615-14 and
615-15 (2) executed, acknowledged, filed, and recorded in the
615-16 same manner as original articles of incorporation of an electric
615-17 cooperative.
615-18 (c) The cooperative is dissolved when the secretary of state
615-19 accepts the certificate of dissolution for filing and recording and
615-20 issues a certificate of dissolution.
615-21 (d) The secretary of state shall charge and collect a fee of
615-22 $2.50 for filing articles of dissolution. (V.A.C.S. Art. 1528b,
615-23 Secs. 28(a), 29 (part).)
615-24 Sec. 161.252. EXISTENCE FOLLOWING DISSOLUTION. (a) A
615-25 dissolved electric cooperative continues to exist to:
616-1 (1) satisfy existing liabilities or obligations;
616-2 (2) collect or liquidate its assets; and
616-3 (3) take any other action required to adjust and wind
616-4 up its business and affairs.
616-5 (b) A dissolved electric cooperative may sue and be sued in
616-6 its corporate name. (V.A.C.S. Art. 1528b, Sec. 28(b) (part).)
616-7 Sec. 161.253. DISTRIBUTION OF NET ASSETS ON DISSOLUTION.
616-8 Assets of a dissolved electric cooperative that remain after all
616-9 liabilities or obligations of the cooperative have been satisfied
616-10 shall be distributed pro rata to the members of the cooperative who
616-11 were members when the certificate of dissolution was filed.
616-12 (V.A.C.S. Art. 1528b, Sec. 28(b) (part).)
616-13 Sec. 161.254. DISSOLUTION OF DEFECTIVELY INCORPORATED
616-14 ELECTRIC COOPERATIVE. (a) An electric cooperative that purports
616-15 to have been incorporated or reincorporated under this chapter but
616-16 that has not complied with a requirement for legal corporate
616-17 existence may file a certificate of dissolution in the same manner
616-18 as a validly incorporated electric cooperative.
616-19 (b) The certificate of dissolution may be authorized by a
616-20 majority of the incorporators or directors at a meeting called by
616-21 an incorporator and held at the principal office of the cooperative
616-22 named in the articles of incorporation.
616-23 (c) The incorporator calling the meeting must give at least
616-24 10 days' notice of the meeting by mail to the last known post
616-25 office address of each incorporator or director. (V.A.C.S.
617-1 Art. 1528b, Sec. 28(c).)
617-2 CHAPTER 162. TELEPHONE COOPERATIVE CORPORATIONS
617-3 SUBCHAPTER A. GENERAL PROVISIONS
617-4 Sec. 162.001. SHORT TITLE
617-5 Sec. 162.002. PURPOSE
617-6 Sec. 162.003. DEFINITIONS
617-7 Sec. 162.004. CERTAIN CORPORATE NAMES PROHIBITED
617-8 Sec. 162.005. EFFECT OF RECORDING CERTAIN MORTGAGES
617-9 EXECUTED BY TELEPHONE COOPERATIVES
617-10 Sec. 162.006. CONSTRUCTION STANDARDS
617-11 (Sections 162.007-162.050 reserved for expansion)
617-12 SUBCHAPTER B. CREATION AND OPERATION OF TELEPHONE
617-13 COOPERATIVES
617-14 Sec. 162.051. INCORPORATORS
617-15 Sec. 162.052. DURATION OF CORPORATION
617-16 Sec. 162.053. NAME OF TELEPHONE COOPERATIVE
617-17 Sec. 162.054. ARTICLES OF INCORPORATION
617-18 Sec. 162.055. FILING AND RECORDING OF ARTICLES OF
617-19 INCORPORATION
617-20 Sec. 162.056. REVIVAL OF ARTICLES OF INCORPORATION
617-21 Sec. 162.057. ORGANIZATIONAL MEETING
617-22 Sec. 162.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATIONS
617-23 Sec. 162.059. NONPROFIT OPERATION
617-24 Sec. 162.060. MEMBERS NOT LIABLE FOR DEBTS OF TELEPHONE
617-25 COOPERATIVE
618-1 Sec. 162.061. LICENSE FEE
618-2 Sec. 162.062. EXEMPTION FROM EXCISE TAXES
618-3 Sec. 162.063. EXEMPTION FROM APPLICATION OF SECURITIES
618-4 ACT
618-5 Sec. 162.064. BYLAWS
618-6 Sec. 162.065. MEMBERSHIP
618-7 Sec. 162.066. PATRONS
618-8 Sec. 162.067. MEETINGS OF MEMBERS
618-9 Sec. 162.068. NOTICE OF MEMBERS' MEETING
618-10 Sec. 162.069. WAIVER OF NOTICE
618-11 Sec. 162.070. MEMBERS' MEETING: QUORUM AND VOTING
618-12 Sec. 162.071. BOARD OF DIRECTORS
618-13 Sec. 162.072. ELECTION OF DIRECTORS; TERMS
618-14 Sec. 162.073. COMPENSATION OF DIRECTORS
618-15 Sec. 162.074. INSURANCE FOR DIRECTORS
618-16 Sec. 162.075. BOARD MEETINGS; QUORUM
618-17 Sec. 162.076. DISTRICTS
618-18 Sec. 162.077. OFFICERS, AGENTS, AND EMPLOYEES
618-19 Sec. 162.078. EXECUTIVE COMMITTEE
618-20 Sec. 162.079. INDEMNIFICATION
618-21 Sec. 162.080. CHANGE OF LOCATION OF PRINCIPAL OFFICE
618-22 Sec. 162.081. DIRECTOR, OFFICER, OR MEMBER ACTING AS
618-23 NOTARY
618-24 Sec. 162.082. APPLICABILITY TO CORPORATIONS ORGANIZED
618-25 UNDER OTHER LAW
619-1 (Sections 162.083-162.120 reserved for expansion)
619-2 SUBCHAPTER C. POWERS OF TELEPHONE COOPERATIVE
619-3 Sec. 162.121. GENERAL POWERS
619-4 Sec. 162.122. POWERS RELATING TO PROVISION OF
619-5 COMMUNICATION SERVICE
619-6 Sec. 162.123. CONNECTION AND INTERCONNECTION OF FACILITIES
619-7 Sec. 162.124. EMINENT DOMAIN
619-8 Sec. 162.125. ENCUMBRANCE AND DISPOSITION OF PROPERTY
619-9 WITHOUT MEMBERS' AUTHORIZATION
619-10 Sec. 162.126. ENCUMBRANCE, LEASE, AND DISPOSITION OF
619-11 PROPERTY WITH MEMBERS' AUTHORIZATION
619-12 (Sections 162.127-162.150 reserved for expansion)
619-13 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
619-14 Sec. 162.151. AMENDMENT OF ARTICLES OF INCORPORATION
619-15 Sec. 162.152. PRESENTATION AND APPROVAL OF PROPOSED
619-16 AMENDMENT
619-17 Sec. 162.153. ARTICLES OF AMENDMENT
619-18 Sec. 162.154. FILING OF ARTICLES OF AMENDMENT
619-19 (Sections 162.155-162.200 reserved for expansion)
619-20 SUBCHAPTER E. CONSOLIDATION OR MERGER OF TELEPHONE
619-21 COOPERATIVES
619-22 Sec. 162.201. CONSOLIDATION
619-23 Sec. 162.202. ARTICLES OF CONSOLIDATION
619-24 Sec. 162.203. MERGER
619-25 Sec. 162.204. ARTICLES OF MERGER
620-1 Sec. 162.205. EFFECT OF CONSOLIDATION OR MERGER
620-2 (Sections 162.206-162.250 reserved for expansion)
620-3 SUBCHAPTER F. CONVERSION OF CORPORATION INTO TELEPHONE
620-4 COOPERATIVE
620-5 Sec. 162.251. CONVERSION OF CORPORATION INTO TELEPHONE
620-6 COOPERATIVE
620-7 Sec. 162.252. ARTICLES OF CONVERSION
620-8 Sec. 162.253. CONSOLIDATION AND CONVERSION OF
620-9 CORPORATIONS INTO TELEPHONE COOPERATIVE
620-10 Sec. 162.254. ARTICLES OF CONSOLIDATION AND CONVERSION
620-11 (Sections 162.255-162.300 reserved for expansion)
620-12 SUBCHAPTER G. DISSOLUTION
620-13 Sec. 162.301. DISSOLUTION
620-14 Sec. 162.302. EXISTENCE FOLLOWING DISSOLUTION
620-15 Sec. 162.303. DISTRIBUTION OF NET ASSETS ON DISSOLUTION
620-16 Sec. 162.304. DISSOLUTION OF DEFECTIVELY INCORPORATED TELEPHONE
620-17 COOPERATIVE
620-18 CHAPTER 162. TELEPHONE COOPERATIVE CORPORATIONS
620-19 SUBCHAPTER A. GENERAL PROVISIONS
620-20 Sec. 162.001. SHORT TITLE. This chapter may be cited as the
620-21 Telephone Cooperative Act. (V.A.C.S. Art. 1528c, Sec. 1.)
620-22 Sec. 162.002. PURPOSE. A cooperative, nonprofit corporation
620-23 may be organized under this chapter to furnish communication
620-24 service to the widest practicable number of users of that service.
620-25 (V.A.C.S. Art. 1528c, Sec. 3.)
621-1 Sec. 162.003. DEFINITIONS. In this chapter:
621-2 (1) "Board" means the board of directors of a
621-3 telephone cooperative.
621-4 (2) "Communication service" means:
621-5 (A) the transmission or reception of
621-6 information, signals, or messages by any means, including by wire,
621-7 radio, cellular radio, microwave, or fiber optics; and
621-8 (B) the provision of lines, facilities, and
621-9 systems used in the transmission or reception described by
621-10 Paragraph (A).
621-11 (3) "Member" means:
621-12 (A) an incorporator of a telephone cooperative;
621-13 or
621-14 (B) a person admitted to membership in a
621-15 telephone cooperative as provided by Section 162.065.
621-16 (4) "Patron" means a member who is eligible to receive
621-17 patronage dividends or to earn capital credits as a result of
621-18 purchasing certain services from a telephone cooperative as
621-19 provided by Section 162.066.
621-20 (5) "Telephone cooperative" means a corporation that
621-21 is organized under this chapter or that becomes subject to this
621-22 chapter as provided by this chapter. (V.A.C.S. Art. 1528c, Secs.
621-23 2(1), (2), (3), (6), (8).)
621-24 Sec. 162.004. CERTAIN CORPORATE NAMES PROHIBITED. A
621-25 corporation organized under the laws of this state or authorized to
622-1 do business in this state may not use the words "telephone
622-2 cooperative" in the corporation's name unless the corporation is
622-3 organized under this chapter. (V.A.C.S. Art. 1528c, Sec. 6(a)
622-4 (part).)
622-5 Sec. 162.005. EFFECT OF RECORDING CERTAIN MORTGAGES EXECUTED
622-6 BY TELEPHONE COOPERATIVES. (a) An instrument executed by a
622-7 telephone cooperative or a foreign corporation doing business in
622-8 this state under this chapter that affects real and personal
622-9 property and that is recorded in the real property records of any
622-10 county in which the property is located or is to be located has the
622-11 same effect as if the instrument were also recorded as provided by
622-12 law in the proper office in that county as a mortgage of personal
622-13 property.
622-14 (b) All after-acquired property of a telephone cooperative
622-15 or foreign corporation doing business in this state under this
622-16 chapter described by or referred to as being pledged in an
622-17 instrument to which Subsection (a) applies becomes subject to the
622-18 lien described by the instrument immediately when the cooperative
622-19 or corporation acquires the property, without regard to whether the
622-20 property existed at the time the instrument was executed. The
622-21 execution of the instrument constitutes notice and otherwise has
622-22 the same effect with respect to after-acquired property to which
622-23 this subsection applies as it has under the laws relating to
622-24 recordation with respect to property that is owned by the
622-25 cooperative or foreign corporation at the time the instrument is
623-1 executed and that is described in the instrument as being pledged
623-2 by the instrument.
623-3 (c) After a lien on personal property under an instrument to
623-4 which Subsection (a) applies is recorded, the lien continues in
623-5 existence and of record for the period specified in the instrument
623-6 without:
623-7 (1) the refiling of the instrument; or
623-8 (2) the filing of any renewal certificate, affidavit,
623-9 or other supplemental information required by a law relating to the
623-10 renewal, maintenance, or extension of a lien on personal property.
623-11 (V.A.C.S. Art. 1528c, Sec. 25.)
623-12 Sec. 162.006. CONSTRUCTION STANDARDS. A telephone
623-13 cooperative that constructs communication lines or facilities must
623-14 at a minimum comply with the standards of the National Electrical
623-15 Safety Code in effect at the time of construction. (V.A.C.S.
623-16 Art. 1528c, Sec. 26.)
623-17 (Sections 162.007-162.050 reserved for expansion)
623-18 SUBCHAPTER B. CREATION AND OPERATION OF TELEPHONE COOPERATIVES
623-19 Sec. 162.051. INCORPORATORS. (a) Three or more individuals
623-20 may act as incorporators of a telephone cooperative by executing
623-21 articles of incorporation as provided by this chapter.
623-22 (b) An incorporator must:
623-23 (1) be at least 21 years of age; and
623-24 (2) reside in this state. (V.A.C.S. Art. 1528c, Sec.
623-25 5.)
624-1 Sec. 162.052. DURATION OF CORPORATION. A telephone
624-2 cooperative may be created as a perpetual corporation. (V.A.C.S.
624-3 Art. 1528c, Secs. 4 (part), 6(a) (part).)
624-4 Sec. 162.053. NAME OF TELEPHONE COOPERATIVE. The name of a
624-5 telephone cooperative must:
624-6 (1) include the words "telephone" and "cooperative"
624-7 and the abbreviation "Inc."; and
624-8 (2) be distinct from the name of any other corporation
624-9 organized under the laws of or authorized to do business in this
624-10 state. (V.A.C.S. Art. 1528c, Sec. 6(a) (part).)
624-11 Sec. 162.054. ARTICLES OF INCORPORATION. (a) The articles
624-12 of incorporation of a telephone cooperative must:
624-13 (1) state that the articles are executed under this
624-14 chapter;
624-15 (2) be signed by each incorporator and acknowledged by
624-16 at least two incorporators; and
624-17 (3) state:
624-18 (A) the name of the cooperative;
624-19 (B) the purpose for which the cooperative is
624-20 formed;
624-21 (C) the name and address of each incorporator;
624-22 (D) the number of directors;
624-23 (E) the address of the cooperative's principal
624-24 office and the name and address of its agent on whom process may be
624-25 served;
625-1 (F) the duration of the cooperative;
625-2 (G) the terms under which a person is admitted
625-3 to membership and retains membership in the cooperative, unless the
625-4 articles expressly state that the determination of membership
625-5 matters is reserved to the directors by the bylaws; and
625-6 (H) any provisions that the incorporators
625-7 include for the regulation of the business and the conduct of the
625-8 affairs of the cooperative.
625-9 (b) The articles of incorporation do not need to state any
625-10 of the corporate powers enumerated in this chapter. (V.A.C.S.
625-11 Art. 1528c, Secs. 6(a) (part), (b).)
625-12 Sec. 162.055. FILING AND RECORDING OF ARTICLES OF
625-13 INCORPORATION. (a) The secretary of state shall receive articles
625-14 of incorporation of a telephone cooperative if the incorporators of
625-15 the cooperative:
625-16 (1) apply for filing the articles;
625-17 (2) furnish satisfactory evidence of compliance with
625-18 this chapter to the secretary of state; and
625-19 (3) pay a fee of $25.
625-20 (b) The secretary of state shall:
625-21 (1) file the articles of incorporation in the
625-22 secretary's office;
625-23 (2) record the articles at length in a book to be kept
625-24 for that purpose;
625-25 (3) retain the original articles of incorporation on
626-1 file in the secretary's office; and
626-2 (4) issue a certificate showing the recording of the
626-3 articles of incorporation and the telephone cooperative's authority
626-4 to do business under the articles.
626-5 (c) A copy of the articles of incorporation or of the record
626-6 of the articles, certified under the state seal, is evidence of the
626-7 creation of the telephone cooperative.
626-8 (d) The existence of the telephone cooperative dates from
626-9 the filing of the articles in the office of the secretary of state.
626-10 The certificate of the secretary of state is evidence of that
626-11 filing. (V.A.C.S. Art. 1528c, Secs. 7, 28 (part).)
626-12 Sec. 162.056. REVIVAL OF ARTICLES OF INCORPORATION. (a) If
626-13 the articles of incorporation of a telephone cooperative expire by
626-14 limitation, the cooperative, with the consent of a majority of its
626-15 members, may revive the articles by filing:
626-16 (1) new articles of incorporation under this chapter;
626-17 and
626-18 (2) a certified copy of the expired original articles.
626-19 (b) A telephone cooperative that revives its articles of
626-20 incorporation has all the privileges, immunities, and rights of
626-21 property exercised and held by the cooperative at the time the
626-22 original articles expired.
626-23 (c) New articles of incorporation filed under this section
626-24 must recite the privileges, immunities, and rights of property
626-25 exercised and held by the cooperative at the time the original
627-1 articles expired. (V.A.C.S. Art. 1528c, Sec. 8.)
627-2 Sec. 162.057. ORGANIZATIONAL MEETING. (a) After the
627-3 certificate of incorporation is issued, the incorporators of a
627-4 telephone cooperative shall meet to adopt bylaws, elect officers,
627-5 and transact other business that properly comes before the meeting.
627-6 (b) A majority of the incorporators shall call the
627-7 organizational meeting.
627-8 (c) The incorporators calling the organizational meeting
627-9 shall give at least three days' notice of the meeting by mail to
627-10 each incorporator. The notice must state the time and place of the
627-11 meeting. The notice may be waived in writing. (V.A.C.S.
627-12 Art. 1528c, Sec. 9.)
627-13 Sec. 162.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATIONS.
627-14 (a) A telephone cooperative that files defective articles of
627-15 incorporation or fails to take an action necessary to perfect its
627-16 corporate organization may:
627-17 (1) file corrected articles of incorporation or amend
627-18 the original articles; and
627-19 (2) take any action necessary to correct the defect.
627-20 (b) An action taken under this section is valid and binding
627-21 on any person concerned. (V.A.C.S. Art. 1528c, Sec. 32.)
627-22 Sec. 162.059. NONPROFIT OPERATION. (a) A telephone
627-23 cooperative shall be operated on a nonprofit basis for the mutual
627-24 benefit of its members and patrons.
627-25 (b) A cooperative's bylaws and its contracts with members
628-1 and patrons must contain appropriate provisions relating to the
628-2 disposition of revenues and receipts to establish and maintain the
628-3 cooperative's nonprofit and cooperative character. (V.A.C.S.
628-4 Art. 1528c, Sec. 22.)
628-5 Sec. 162.060. MEMBERS NOT LIABLE FOR DEBTS OF TELEPHONE
628-6 COOPERATIVE. A member is not liable for a debt of a telephone
628-7 cooperative, and the member's property is not subject to execution
628-8 for that debt. (V.A.C.S. Art. 1528c, Sec. 24.)
628-9 Sec. 162.061. LICENSE FEE. Not later than July 1 of each
628-10 year, each telephone cooperative doing business in this state shall
628-11 pay to the secretary of state a fee of $10. (V.A.C.S. Art. 1528c,
628-12 Sec. 29 (part).)
628-13 Sec. 162.062. EXEMPTION FROM EXCISE TAXES. A telephone
628-14 cooperative doing business in this state is exempt from all excise
628-15 taxes but is exempt from the franchise tax imposed by Chapter 171,
628-16 Tax Code, only if the cooperative is exempted by that chapter.
628-17 (V.A.C.S. Art. 1528c, Sec. 29 (part).)
628-18 Sec. 162.063. EXEMPTION FROM APPLICATION OF SECURITIES ACT.
628-19 The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
628-20 Statutes) does not apply to:
628-21 (1) a note, bond, or other evidence of indebtedness
628-22 issued by a telephone cooperative doing business in this state to
628-23 the United States;
628-24 (2) an instrument executed to secure a debt of a
628-25 telephone cooperative to the United States; or
629-1 (3) the issuance of a membership certificate by a
629-2 telephone cooperative or a foreign corporation doing business in
629-3 this state under this chapter. (V.A.C.S. Art. 1528c, Sec. 31.)
629-4 Sec. 162.064. BYLAWS. (a) The board shall adopt the
629-5 initial bylaws of a telephone cooperative to be adopted following:
629-6 (1) an incorporation;
629-7 (2) a consolidation; or
629-8 (3) an amendment by an existing cooperative,
629-9 corporation, or association of its articles of incorporation as
629-10 provided by Section 162.082.
629-11 (b) After the initial bylaws are adopted, the members may
629-12 adopt, amend, or repeal the bylaws by the affirmative vote of a
629-13 majority of those members voting on the question at a meeting of
629-14 the members.
629-15 (c) The bylaws may contain any provision for the regulation
629-16 and management of the affairs of the telephone cooperative that is
629-17 consistent with the articles of incorporation. (V.A.C.S.
629-18 Art. 1528c, Sec. 10.)
629-19 Sec. 162.065. MEMBERSHIP. (a) Each incorporator of a
629-20 telephone cooperative is a member of the cooperative. A person
629-21 other than an incorporator may become a member of a telephone
629-22 cooperative only if the person agrees to use communication service
629-23 furnished by the cooperative when that service is made available
629-24 through the cooperative's facilities. The bylaws may prescribe
629-25 additional qualifications and limitations with respect to
630-1 membership.
630-2 (b) Membership in a telephone cooperative is evidenced by a
630-3 certificate of membership. A membership certificate must contain
630-4 the provisions, consistent with this chapter and the articles of
630-5 incorporation, that are prescribed by the cooperative's bylaws. A
630-6 certificate may be transferred only as provided by the bylaws.
630-7 (c) A telephone cooperative may become a member of another
630-8 telephone cooperative and may fully use the facilities and services
630-9 of that cooperative. (V.A.C.S. Art. 1528c, Sec. 11(a).)
630-10 Sec. 162.066. PATRONS. (a) A member is a patron of a
630-11 telephone cooperative if the member purchases local
630-12 telecommunications service or toll telecommunications service or
630-13 pays end user access charges in the ordinary course of business of
630-14 the cooperative.
630-15 (b) The use of interexchange access, payment of
630-16 interexchange access fees or settlements, or purchase of equipment
630-17 does not qualify a member or other person as a patron. (V.A.C.S.
630-18 Art. 1528c, Sec. 11(b).)
630-19 Sec. 162.067. MEETINGS OF MEMBERS. (a) A telephone
630-20 cooperative shall hold an annual meeting of members at the time and
630-21 place provided by the bylaws. Failure to hold the annual meeting
630-22 at the designated time does not result in forfeiture or dissolution
630-23 of the cooperative.
630-24 (b) A special meeting of the members may be called by:
630-25 (1) the president;
631-1 (2) the board;
631-2 (3) any three directors; or
631-3 (4) the lesser of:
631-4 (A) 200 members; or
631-5 (B) 10 percent of all the members. (V.A.C.S.
631-6 Art. 1528c, Secs. 12(a), (b).)
631-7 Sec. 162.068. NOTICE OF MEMBERS' MEETING. (a) Except as
631-8 otherwise provided by this chapter, written notice of each meeting
631-9 of the members shall be given to each member, either personally or
631-10 by mail, not earlier than the 25th day or later than the 10th day
631-11 before the date of the meeting.
631-12 (b) The notice must state the time and place of the meeting
631-13 and, in the case of a special meeting, each purpose for which the
631-14 meeting is called.
631-15 (c) A notice that is mailed is considered to have been given
631-16 when the notice is deposited in the United States mail with postage
631-17 prepaid addressed to the member at the member's address as it
631-18 appears on the records of the telephone cooperative. (V.A.C.S.
631-19 Art. 1528c, Sec. 12(c).)
631-20 Sec. 162.069. WAIVER OF NOTICE. A person entitled to notice
631-21 of a meeting may waive notice in writing either before or after the
631-22 meeting. If a person entitled to notice of a meeting attends the
631-23 meeting, the person's attendance constitutes a waiver of notice of
631-24 the meeting, unless the person participates in the meeting solely
631-25 to object to the transaction of business because the meeting is not
632-1 legally called or convened. (V.A.C.S. Art. 1528c, Sec. 13.)
632-2 Sec. 162.070. MEMBERS' MEETING: QUORUM AND VOTING.
632-3 (a) Unless the bylaws prescribe a greater percentage or number of
632-4 members for a quorum, a quorum at a meeting of the members of a
632-5 telephone cooperative is the personal presence of:
632-6 (1) 10 percent of all members, if the cooperative has
632-7 500 or fewer members; or
632-8 (2) the greater of 50 members or two percent of all
632-9 members, if the cooperative has more than 500 members.
632-10 (b) If fewer than a quorum are present at a meeting, a
632-11 majority of the members present in person may adjourn the meeting
632-12 from time to time without further notice.
632-13 (c) Each member present at a meeting of the members is
632-14 entitled to one vote on each matter submitted to a vote at the
632-15 meeting. Voting must be in person unless the bylaws provide for
632-16 voting by mail. (V.A.C.S. Art. 1528c, Secs. 12(d), (e).)
632-17 Sec. 162.071. BOARD OF DIRECTORS. (a) A board of at least
632-18 five directors shall manage the business of a telephone
632-19 cooperative. Each director must be a member of the cooperative.
632-20 The bylaws must prescribe the number of directors and their
632-21 qualifications other than those prescribed by this chapter.
632-22 (b) The board may exercise any power of a telephone
632-23 cooperative not conferred on the members by this chapter or by the
632-24 cooperative's articles of incorporation or bylaws. (V.A.C.S.
632-25 Art. 1528c, Secs. 6(a) (part), 14(a) (part), (e).)
633-1 Sec. 162.072. ELECTION OF DIRECTORS; TERMS. (a) The
633-2 incorporators of a telephone cooperative named in the articles of
633-3 incorporation shall serve as directors and hold office until the
633-4 first annual meeting of the members and until their successors are
633-5 elected and qualify.
633-6 (b) At each annual meeting or, in the case of failure to
633-7 hold the annual meeting as specified in the bylaws, at a special
633-8 meeting called for that purpose, the members shall elect directors
633-9 to hold office until the next annual members' meeting, except as
633-10 otherwise provided by this chapter. Except as provided by
633-11 Subsection (e), each director holds office for the term for which
633-12 the person is elected and until the person's successor is elected
633-13 and qualifies.
633-14 (c) Instead of electing all the directors annually, the
633-15 bylaws may provide that the directors, other than those named in
633-16 the articles of incorporation to serve until the first annual
633-17 meeting of the members, are elected by the members for a term of
633-18 two years or three years. The terms must be set so that:
633-19 (1) one-half of the directors, as nearly as possible,
633-20 are elected annually, if a two-year term is provided; or
633-21 (2) one-third of the directors, as nearly as possible,
633-22 are elected annually, if a three-year term is provided.
633-23 (d) After the implementation of two-year or three-year terms
633-24 for directors, as directors' terms expire, the members shall elect
633-25 their successors to serve until the second or third succeeding
634-1 annual meeting after their election, as appropriate.
634-2 (e) The bylaws must prescribe the manner of electing a
634-3 successor to a director who resigns, dies, or otherwise becomes
634-4 incapable of acting. The bylaws may provide for the removal of a
634-5 director from office and for the election of the director's
634-6 successor. (V.A.C.S. Art. 1528c, Secs. 6(a) (part), 14(a) (part),
634-7 (b), (c).)
634-8 Sec. 162.073. COMPENSATION OF DIRECTORS. (a) A director
634-9 may not receive a salary for services as a director. Except in an
634-10 emergency, a director may not receive a salary for services in a
634-11 capacity other than director without the approval of the members.
634-12 (b) The bylaws may:
634-13 (1) prescribe a fixed fee for attendance at each board
634-14 meeting, committee meeting, industry-related conference approved by
634-15 the board, or training program; and
634-16 (2) provide for reimbursement of actual expenses of
634-17 attendance or a reasonable per diem. (V.A.C.S. Art. 1528c, Sec.
634-18 14(a) (part).)
634-19 Sec. 162.074. INSURANCE FOR DIRECTORS. A telephone
634-20 cooperative may provide liability, accident, life, and health
634-21 insurance coverage for a director who chooses to have that
634-22 coverage. (V.A.C.S. Art. 1528c, Sec. 14(a) (part).)
634-23 Sec. 162.075. BOARD MEETINGS; QUORUM. (a) The bylaws shall
634-24 prescribe the manner of holding board meetings.
634-25 (b) A majority of the directors is a quorum. (V.A.C.S.
635-1 Art. 1528c, Secs. 14(a) (part), (d).)
635-2 Sec. 162.076. DISTRICTS. (a) The bylaws may provide for
635-3 the territory served or to be served by a telephone cooperative to
635-4 be divided into two or more districts for any purpose, including
635-5 the nomination and election of directors and the election and
635-6 functioning of district delegates.
635-7 (b) The bylaws must prescribe:
635-8 (1) the boundaries of each district or the manner of
635-9 establishing a district's boundaries;
635-10 (2) the manner of changing a district's boundaries;
635-11 and
635-12 (3) the manner in which each district functions.
635-13 (c) District delegates may nominate and elect directors. A
635-14 district delegate must be a member.
635-15 (d) A member may not vote by proxy or by mail at a district
635-16 meeting.
635-17 (e) A district delegate may not vote by proxy or by mail at
635-18 any meeting. (V.A.C.S. Art. 1528c, Sec. 15.)
635-19 Sec. 162.077. OFFICERS, AGENTS, AND EMPLOYEES. (a) The
635-20 board of a telephone cooperative shall annually elect from the
635-21 board's membership a president, a vice president, a secretary, and
635-22 a treasurer.
635-23 (b) An officer who ceases to be a director ceases to hold
635-24 office.
635-25 (c) The same person may hold the offices of secretary and of
636-1 treasurer.
636-2 (d) The board may also elect or appoint other officers,
636-3 agents, or employees as the board considers appropriate and shall
636-4 prescribe the powers and duties of those persons.
636-5 (e) An officer may be removed from office and a successor
636-6 elected in the manner prescribed by the bylaws. (V.A.C.S.
636-7 Art. 1528c, Sec. 16.)
636-8 Sec. 162.078. EXECUTIVE COMMITTEE. (a) The bylaws of a
636-9 telephone cooperative may authorize the board to elect an executive
636-10 committee from the board's membership.
636-11 (b) The board may delegate to the executive committee the
636-12 management of the current and ordinary business of the cooperative
636-13 and other duties as prescribed by the bylaws.
636-14 (c) The designation of an executive committee and the
636-15 delegation of authority to the committee does not relieve the board
636-16 or any director of a responsibility imposed on the board or the
636-17 director by this chapter. (V.A.C.S. Art. 1528c, Sec. 17.)
636-18 Sec. 162.079. INDEMNIFICATION. Article 2.22A, Texas
636-19 Non-Profit Corporation Act (Article 1396-2.22A, Vernon's Texas
636-20 Civil Statutes), applies to a telephone cooperative in the same
636-21 manner as if the cooperative were formed under the Texas Non-Profit
636-22 Corporation Act. (V.A.C.S. Art. 1528c, Sec. 4A.)
636-23 Sec. 162.080. CHANGE OF LOCATION OF PRINCIPAL OFFICE.
636-24 (a) A telephone cooperative may, with the authorization of the
636-25 board or the members, change the location of its principal office
637-1 by filing a certificate reciting the change of principal office
637-2 with the secretary of state.
637-3 (b) The cooperative's president or vice president must
637-4 execute and acknowledge the certificate under the cooperative's
637-5 seal as attested by the secretary.
637-6 (c) The secretary of state shall charge and collect a fee of
637-7 $5 for filing a certificate of change of principal office.
637-8 (V.A.C.S. Art. 1528c, Secs. 19, 28 (part).)
637-9 Sec. 162.081. DIRECTOR, OFFICER, OR MEMBER ACTING AS NOTARY.
637-10 A person who is an officer, director, or member of a telephone
637-11 cooperative and who is authorized to take acknowledgments under
637-12 state law is not disqualified because of the person's association
637-13 with the cooperative from taking an acknowledgment of an instrument
637-14 executed in favor of the cooperative or to which the cooperative is
637-15 a party. (V.A.C.S. Art. 1528c, Sec. 27.)
637-16 Sec. 162.082. APPLICABILITY TO CORPORATIONS ORGANIZED UNDER
637-17 OTHER LAW. A cooperative or nonprofit corporation or association
637-18 organized under any other law of this state for the purpose of
637-19 furnishing communication service may, by a majority vote of the
637-20 members present in person at a meeting called for that purpose,
637-21 amend its articles of incorporation to comply with this chapter.
637-22 (V.A.C.S. Art. 1528c, Sec. 33.)
637-23 (Sections 162.083-162.120 reserved for expansion)
637-24 SUBCHAPTER C. POWERS OF TELEPHONE COOPERATIVE
637-25 Sec. 162.121. GENERAL POWERS. A telephone cooperative may:
638-1 (1) sue and be sued in its corporate name;
638-2 (2) adopt and alter a corporate seal and use the seal
638-3 or a facsimile of the seal as required by law;
638-4 (3) construct, acquire, lease, improve, install,
638-5 equip, maintain, and operate, and, subject to Sections 162.125 and
638-6 162.126, dispose of, lease, or encumber, communication lines,
638-7 facilities or systems, lands, structures, plants and equipment,
638-8 exchanges, and other property, considered appropriate to accomplish
638-9 the purpose for which the cooperative is organized;
638-10 (4) issue membership certificates as provided by this
638-11 chapter;
638-12 (5) borrow money and otherwise contract indebtedness,
638-13 issue or guarantee notes, bonds, and other evidences of
638-14 indebtedness, and secure the payment of indebtedness by pledge or
638-15 other encumbrance on any or all of its property or revenue;
638-16 (6) conduct its business and exercise its powers
638-17 inside or outside this state;
638-18 (7) adopt, amend, and repeal bylaws;
638-19 (8) make any contracts appropriate for the full
638-20 exercise of the powers granted by this chapter; and
638-21 (9) perform any other acts and exercise any other
638-22 power that may be appropriate to accomplish the purpose for which
638-23 the cooperative is organized. (V.A.C.S. Art. 1528c, Sec. 4
638-24 (part).)
638-25 Sec. 162.122. POWERS RELATING TO PROVISION OF COMMUNICATION
639-1 SERVICE. (a) A telephone cooperative may:
639-2 (1) furnish and improve communication service to its
639-3 members, to governmental agencies and political subdivisions, to
639-4 any number of subscribers of other communication systems through
639-5 interconnection of facilities, and to any number of users through
639-6 pay stations;
639-7 (2) connect and interconnect its communication lines,
639-8 facilities, or systems with other communication lines, facilities,
639-9 or systems;
639-10 (3) make its facilities available to persons
639-11 furnishing communication service inside or outside this state; and
639-12 (4) construct, maintain, and operate a communication
639-13 line along, on, under, or across publicly owned land or a public
639-14 thoroughfare, subject to the same restrictions and obligations that
639-15 apply to an electric transmission cooperative under Subchapter C,
639-16 Chapter 181.
639-17 (b) A telephone cooperative that acquires communication
639-18 facilities may continue to furnish service to a person who is
639-19 already receiving service from those facilities without requiring
639-20 the person to become a member, but the person may become a member
639-21 on the terms prescribed by the bylaws. (V.A.C.S. Art. 1528c, Sec.
639-22 4 (part).)
639-23 Sec. 162.123. CONNECTION AND INTERCONNECTION OF FACILITIES.
639-24 A telephone cooperative doing business in this state may require a
639-25 person furnishing communication service to the public in this state
640-1 to interconnect that person's lines, facilities, or systems with,
640-2 or otherwise make available those lines, facilities, or systems to,
640-3 the cooperative's communication lines, facilities, or systems to
640-4 provide a continuous line of communication for the cooperative's
640-5 subscribers. (V.A.C.S. Art. 1528c, Sec. 30 (part).)
640-6 Sec. 162.124. EMINENT DOMAIN. A telephone cooperative may
640-7 exercise the power of eminent domain in the manner provided by
640-8 state law for the exercise of that power by other corporations
640-9 constructing or operating communication lines, facilities, or
640-10 systems. (V.A.C.S. Art. 1528c, Sec. 4 (part).)
640-11 Sec. 162.125. ENCUMBRANCE AND DISPOSITION OF PROPERTY
640-12 WITHOUT MEMBERS' AUTHORIZATION. (a) The board of a telephone
640-13 cooperative may, without authorization of the members, authorize
640-14 the execution and delivery of a mortgage or deed of trust of or the
640-15 encumbering of any property of the cooperative, including property
640-16 to be acquired and the revenues from property of the cooperative,
640-17 to secure any indebtedness of the cooperative to the United States
640-18 or any lending institution licensed by the United States or a
640-19 state.
640-20 (b) A mortgage or deed of trust described by Subsection (a)
640-21 is exempt from a tax for recording the instrument. (V.A.C.S.
640-22 Art. 1528c, Sec. 23(a).)
640-23 Sec. 162.126. ENCUMBRANCE, LEASE, AND DISPOSITION OF
640-24 PROPERTY WITH MEMBERS' AUTHORIZATION. (a) Except as provided by
640-25 Section 162.125, a telephone cooperative may not dispose of, lease,
641-1 or encumber all or a major portion of its property unless the
641-2 disposition, lease, or encumbrance is authorized by the affirmative
641-3 vote of at least two-thirds of all the members of the cooperative.
641-4 (b) The board may, on the authorization of two-thirds of all
641-5 the members of the cooperative at a members' meeting, dispose of or
641-6 lease all or a major portion of its property to:
641-7 (1) another telephone cooperative;
641-8 (2) a foreign corporation doing business in this state
641-9 under this chapter; or
641-10 (3) the holder of a note, bond, or other evidence of
641-11 indebtedness issued to the United States or to a lending
641-12 institution licensed by the United States or a state.
641-13 (c) The notice of a meeting at which a disposition or lease
641-14 under Subsection (b) is to be considered must state the proposed
641-15 action. (V.A.C.S. Art. 1528c, Sec. 23(b).)
641-16 (Sections 162.127-162.150 reserved for expansion)
641-17 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
641-18 Sec. 162.151. AMENDMENT OF ARTICLES OF INCORPORATION. A
641-19 telephone cooperative may amend its articles of incorporation in
641-20 accordance with this subchapter. (V.A.C.S. Art. 1528c, Sec. 18
641-21 (part).)
641-22 Sec. 162.152. PRESENTATION AND APPROVAL OF PROPOSED
641-23 AMENDMENT. (a) A proposed amendment to the articles of
641-24 incorporation must be presented to a meeting of the members. The
641-25 notice of the meeting must state the proposed amendment or must
642-1 have the proposed amendment attached to it.
642-2 (b) A proposed amendment, with any changes, may be approved
642-3 only on the affirmative vote of at least two-thirds of the members
642-4 voting on the question at the meeting. (V.A.C.S. Art. 1528c, Sec.
642-5 18 (part).)
642-6 Sec. 162.153. ARTICLES OF AMENDMENT. (a) The president or
642-7 vice president, on behalf of the telephone cooperative, shall
642-8 execute and acknowledge the approved articles of amendment. The
642-9 cooperative's seal must be affixed to the articles of amendment and
642-10 attested by its secretary.
642-11 (b) The articles of amendment must state:
642-12 (1) that the articles of amendment are executed under
642-13 this chapter;
642-14 (2) the name of the telephone cooperative;
642-15 (3) the address of the cooperative's principal office;
642-16 and
642-17 (4) the amendment to the articles of incorporation.
642-18 (c) The president or vice president executing the articles
642-19 of amendment shall make and attach to the articles an affidavit
642-20 stating that the cooperative complied with this subchapter with
642-21 respect to the amendment set forth in the articles. (V.A.C.S.
642-22 Art. 1528c, Sec. 18 (part).)
642-23 Sec. 162.154. FILING OF ARTICLES OF AMENDMENT.
642-24 (a) Articles of amendment shall be filed with the secretary of
642-25 state in the same manner as the original articles of incorporation.
643-1 (b) The secretary of state shall charge and collect a fee of
643-2 $25 for filing articles of amendment. (V.A.C.S. Art. 1528c, Secs.
643-3 18 (part), 28 (part).)
643-4 (Sections 162.155-162.200 reserved for expansion)
643-5 SUBCHAPTER E. CONSOLIDATION OR MERGER OF TELEPHONE
643-6 COOPERATIVES
643-7 Sec. 162.201. CONSOLIDATION. (a) Two or more telephone
643-8 cooperatives may enter into an agreement to consolidate the
643-9 cooperatives. The agreement must state:
643-10 (1) the terms of the consolidation;
643-11 (2) the name of the proposed consolidated cooperative;
643-12 (3) the number of directors of the proposed
643-13 consolidated cooperative;
643-14 (4) the time of the annual meeting and election; and
643-15 (5) the names of at least five persons to be directors
643-16 until the first annual meeting.
643-17 (b) A consolidation agreement may be approved only on the
643-18 votes of a majority of the members of each telephone cooperative at
643-19 a regular meeting or at a special meeting of its members called for
643-20 that purpose.
643-21 (c) Telephone cooperatives may not consolidate for the
643-22 purpose of duplicating the facilities of another communication
643-23 company where the other communication company is giving or is
643-24 willing to give reasonably adequate communication service.
643-25 (V.A.C.S. Art. 1528c, Secs. 20(a) (part), (b) (part).)
644-1 Sec. 162.202. ARTICLES OF CONSOLIDATION. (a) The articles
644-2 of consolidation must:
644-3 (1) conform substantially to original articles of
644-4 incorporation of a telephone cooperative; and
644-5 (2) be executed, acknowledged, filed, and recorded in
644-6 the same manner as original articles of incorporation.
644-7 (b) The directors named in the consolidation agreement shall
644-8 as incorporators sign and acknowledge the articles of
644-9 consolidation.
644-10 (c) The secretary of state shall charge and collect a fee of
644-11 $50 for filing articles of consolidation.
644-12 (d) When the secretary of state accepts the articles of
644-13 consolidation for filing and recording and issues a certificate of
644-14 consolidation, the proposed consolidated telephone cooperative
644-15 described in the articles under its designated name exists as a
644-16 body corporate, with all the powers of a telephone cooperative
644-17 originally organized under this chapter. (V.A.C.S. Art. 1528c,
644-18 Secs. 20(a) (part), (b) (part), 28 (part).)
644-19 Sec. 162.203. MERGER. (a) One or more telephone
644-20 cooperatives may merge into another cooperative as provided by this
644-21 section and Section 162.204.
644-22 (b) The proposition for the merger and proposed articles of
644-23 merger must be submitted at a meeting of the members of each
644-24 merging cooperative and the surviving cooperative. A copy of the
644-25 proposed articles of merger must be attached to the notice of each
645-1 meeting.
645-2 (c) A proposed merger and proposed articles of merger, with
645-3 any amendments, may be approved only on the affirmative vote of at
645-4 least two-thirds of the members of each cooperative voting on the
645-5 proposed merger and articles. (V.A.C.S. Art. 1528c, Secs. 20A(a),
645-6 (b), (c) (part).)
645-7 Sec. 162.204. ARTICLES OF MERGER. (a) The president or
645-8 vice president of each telephone cooperative, on behalf of the
645-9 telephone cooperative, shall execute and acknowledge the approved
645-10 articles of merger. The cooperative's seal must be affixed to the
645-11 articles of merger and attested by its secretary.
645-12 (b) The articles of merger must state:
645-13 (1) that they are executed under this chapter;
645-14 (2) the name of each merging cooperative and the
645-15 address of its principal office;
645-16 (3) the name of the surviving cooperative and the
645-17 address of its principal office;
645-18 (4) that each merging cooperative and the surviving
645-19 cooperative agree to the merger;
645-20 (5) the name and address of each director of the
645-21 surviving cooperative;
645-22 (6) the terms of the merger and the manner in which
645-23 the merger will be carried out, including the manner in which
645-24 members of the merging cooperatives become or may become members of
645-25 the surviving cooperative;
646-1 (7) the duration of the surviving cooperative; and
646-2 (8) the purpose for which the surviving cooperative is
646-3 formed.
646-4 (c) The articles of merger may contain any provision
646-5 consistent with this chapter considered appropriate for the conduct
646-6 of the business of the surviving cooperative. The president or
646-7 vice president of each cooperative executing the articles of merger
646-8 shall make and attach to the articles an affidavit stating that the
646-9 cooperative complied with this subchapter with respect to the
646-10 articles.
646-11 (d) The original and a copy of the articles of merger shall
646-12 be delivered to the secretary of state. If the secretary of state
646-13 finds that the articles conform to law, the secretary of state, on
646-14 payment of a fee of $50, shall:
646-15 (1) file and record the articles of merger;
646-16 (2) issue a certificate of merger; and
646-17 (3) attach to the certificate of merger the copy of
646-18 the articles of merger and deliver the certificate and attached
646-19 copy to the surviving cooperative or its representative. (V.A.C.S.
646-20 Art. 1528c, Secs. 20A(c) (part), (d), (e), (f), 28 (part).)
646-21 Sec. 162.205. EFFECT OF CONSOLIDATION OR MERGER. (a) In a
646-22 consolidation the existence of each telephone cooperative ceases
646-23 and the articles of consolidation are considered to be the articles
646-24 of incorporation of the new cooperative. In a merger the separate
646-25 existence of each merging telephone cooperative ceases and the
647-1 articles of incorporation of the surviving cooperative are
647-2 considered to be amended to the extent, if any, that amendment is
647-3 provided for in the articles of merger.
647-4 (b) All the rights, privileges, immunities, property, and
647-5 applications for membership of each of the consolidating or merging
647-6 cooperatives are transferred to and vested in the new or surviving
647-7 cooperative, except that this chapter does not relieve a
647-8 cooperative of the obligation to comply with the applicable
647-9 provisions of Title 2.
647-10 (c) The new or surviving cooperative is liable for all the
647-11 liabilities and obligations of the consolidating or merging
647-12 cooperatives. A claim existing or action or proceeding pending by
647-13 or against a consolidating or merging cooperative may be prosecuted
647-14 as if the consolidation or merger had not taken place, and the new
647-15 or surviving cooperative may be substituted in the place of the
647-16 consolidating or merging cooperative. The consolidation or merger
647-17 does not impair the rights of creditors of or liens on the property
647-18 of a consolidating or merging cooperative. (V.A.C.S. Art. 1528c,
647-19 Sec. 20B.)
647-20 (Sections 162.206-162.250 reserved for expansion)
647-21 SUBCHAPTER F. CONVERSION OF CORPORATION INTO TELEPHONE
647-22 COOPERATIVE
647-23 Sec. 162.251. CONVERSION OF CORPORATION INTO TELEPHONE
647-24 COOPERATIVE. (a) A corporation organized under the laws of this
647-25 state that furnishes or is authorized to furnish communication
648-1 service may be converted into a telephone cooperative in accordance
648-2 with this subchapter. On conversion, the corporation is subject to
648-3 this chapter as if it had been originally organized under this
648-4 chapter.
648-5 (b) The proposition for the conversion and proposed articles
648-6 of conversion must be submitted at a meeting of the members or
648-7 stockholders of the corporation or, in the case of a corporation
648-8 that does not have members or stockholders, at a meeting of the
648-9 incorporators of the corporation. A copy of the proposed articles
648-10 of conversion must be attached to the notice of the meeting.
648-11 (c) A proposed conversion and proposed articles of
648-12 conversion, with any amendments, may be approved only on the
648-13 affirmative vote of:
648-14 (1) at least two-thirds of the members of the
648-15 corporation voting on the proposed conversion and articles;
648-16 (2) the holders of at least two-thirds of the shares
648-17 of the capital stock of the corporation represented at the meeting
648-18 and voting on the proposition and articles, if the corporation is a
648-19 stock corporation; or
648-20 (3) at least two-thirds of the corporation's
648-21 incorporators, if the corporation does not have members or
648-22 outstanding shares of capital stock. (V.A.C.S. Art. 1528c, Secs.
648-23 20C(a), (b), (c) (part).)
648-24 Sec. 162.252. ARTICLES OF CONVERSION. (a) The president or
648-25 vice president, on behalf of the corporation, shall execute and
649-1 acknowledge the approved articles of conversion. The corporation's
649-2 seal must be affixed to the articles and attested by its secretary.
649-3 (b) The articles of conversion must state:
649-4 (1) that they are executed under this chapter;
649-5 (2) the name of the corporation and the address of its
649-6 principal office before its conversion into a telephone
649-7 cooperative;
649-8 (3) the law under which the corporation was organized;
649-9 (4) that the corporation elects to become a
649-10 cooperative, nonprofit corporation subject to this chapter;
649-11 (5) the corporation's name as a cooperative;
649-12 (6) the address of the principal office of the
649-13 cooperative;
649-14 (7) the name and address of each director of the
649-15 cooperative;
649-16 (8) the manner in which a member, stockholder, or
649-17 incorporator of the corporation becomes or may become a member of
649-18 the cooperative;
649-19 (9) the duration of the cooperative; and
649-20 (10) the purpose for which the cooperative is formed.
649-21 (c) The articles of conversion may contain any provision
649-22 consistent with this chapter considered appropriate for the conduct
649-23 of the business of the cooperative. The president or vice
649-24 president executing the articles of conversion shall make and
649-25 attach to the articles an affidavit stating that the corporation
650-1 complied with this section with respect to the articles. The
650-2 articles of conversion are considered to be the articles of
650-3 incorporation of the cooperative.
650-4 (d) The original and a copy of the articles of conversion
650-5 shall be delivered to the secretary of state. If the secretary of
650-6 state finds that the articles conform to law, the secretary of
650-7 state, on payment of a fee of $50, shall:
650-8 (1) file and record the articles of conversion;
650-9 (2) issue a certificate of conversion; and
650-10 (3) attach to the certificate of conversion the copy
650-11 of the articles of conversion and deliver the certificate and
650-12 attached copy to the cooperative or its representative. (V.A.C.S.
650-13 Art. 1528c, Secs. 20C(c) (part), (d), (e), (f), 28 (part).)
650-14 Sec. 162.253. CONSOLIDATION AND CONVERSION OF CORPORATIONS
650-15 INTO TELEPHONE COOPERATIVE. (a) Two or more corporations
650-16 organized under the laws of this state that furnish or are
650-17 authorized to furnish communication service may, if otherwise
650-18 permitted to consolidate under state law, consolidate and convert
650-19 into a telephone cooperative in accordance with this subchapter.
650-20 On consolidation and conversion, the new cooperative is subject to
650-21 this chapter as if it had been originally organized under this
650-22 chapter.
650-23 (b) The proposition for the consolidation and conversion and
650-24 the proposed articles of consolidation and conversion, with any
650-25 amendments, must be approved by each corporation in accordance
651-1 with:
651-2 (1) the law under which it was organized; and
651-3 (2) Sections 162.251 and 162.252. (V.A.C.S.
651-4 Art. 1528c, Secs. 20D(a), (b).)
651-5 Sec. 162.254. ARTICLES OF CONSOLIDATION AND CONVERSION.
651-6 (a) The approved articles of consolidation and conversion:
651-7 (1) shall be executed, acknowledged, and sealed as
651-8 prescribed by Section 162.252 and by the law under which the
651-9 consolidating and converting corporations were organized;
651-10 (2) must:
651-11 (A) state that they are executed under this
651-12 chapter and the law under which the corporations were organized and
651-13 that each consolidating corporation elects that the new corporation
651-14 be a cooperative; and
651-15 (B) contain all other information required by
651-16 the law under which the corporations were organized; and
651-17 (3) may contain any provision consistent with this
651-18 chapter considered appropriate for the conduct of the business of
651-19 the cooperative.
651-20 (b) The president or vice president executing the articles
651-21 of consolidation and conversion shall make and attach to the
651-22 articles an affidavit stating that the corporations complied with
651-23 this section and Section 162.253 and with the applicable provisions
651-24 of the law under which the consolidating corporations were
651-25 organized with respect to the articles. The articles of
652-1 consolidation and conversion are considered to be the articles of
652-2 incorporation of the cooperative and shall be filed in accordance
652-3 with the provisions both of this chapter and of the law under which
652-4 the consolidating corporations were organized.
652-5 (c) The original and a copy of the articles of consolidation
652-6 and conversion shall be delivered to the secretary of state. If
652-7 the secretary of state finds that the articles conform to law, the
652-8 secretary of state, on payment of a fee of $50, shall:
652-9 (1) file and record the articles of consolidation and
652-10 conversion;
652-11 (2) issue a certificate of consolidation and
652-12 conversion; and
652-13 (3) attach to the certificate the copy of the articles
652-14 and deliver the certificate and attached copy to the cooperative or
652-15 its representative. (V.A.C.S. Art. 1528c, Secs. 20D(c), (d), 28
652-16 (part).)
652-17 (Sections 162.255-162.300 reserved for expansion)
652-18 SUBCHAPTER G. DISSOLUTION
652-19 Sec. 162.301. DISSOLUTION. (a) A telephone cooperative may
652-20 be dissolved by a two-thirds vote of all the members of the
652-21 cooperative. The vote must be taken at a regular meeting or at a
652-22 special meeting of its members called for that purpose. Votes must
652-23 be cast in person.
652-24 (b) A certificate of dissolution must be:
652-25 (1) signed by the president or vice president and
653-1 attested by the secretary, certifying to the dissolution and
653-2 stating that the officers have been authorized by a vote of the
653-3 members under Subsection (a) to execute and file the certificate;
653-4 and
653-5 (2) executed, acknowledged, filed, and recorded in the
653-6 same manner as original articles of incorporation of a telephone
653-7 cooperative.
653-8 (c) The cooperative is dissolved when the secretary of state
653-9 accepts the certificate of dissolution for filing and recording and
653-10 issues a certificate of dissolution.
653-11 (d) The secretary of state shall charge and collect:
653-12 (1) a fee of $5 for filing a certificate of election
653-13 to dissolve; and
653-14 (2) a fee of $5 for filing articles of dissolution.
653-15 (V.A.C.S. Art. 1528c, Secs. 21(a), 28 (part).)
653-16 Sec. 162.302. EXISTENCE FOLLOWING DISSOLUTION. (a) A
653-17 dissolved telephone cooperative continues to exist to:
653-18 (1) satisfy existing liabilities or obligations;
653-19 (2) collect or liquidate its assets; and
653-20 (3) take any other action required to adjust and wind
653-21 up its business and affairs.
653-22 (b) A dissolved telephone cooperative may sue and be sued in
653-23 its corporate name. (V.A.C.S. Art. 1528c, Sec. 21(b) (part).)
653-24 Sec. 162.303. DISTRIBUTION OF NET ASSETS ON DISSOLUTION.
653-25 Assets of a dissolved telephone cooperative that remain after all
654-1 liabilities or obligations of the cooperative have been satisfied
654-2 shall be distributed as follows:
654-3 (1) first, to patrons for the pro rata return of
654-4 amounts standing to their credit because of their patronage; and
654-5 (2) second, to members for the pro rata repayment of
654-6 membership fees. (V.A.C.S. Art. 1528c, Sec. 21(b) (part).)
654-7 Sec. 162.304. DISSOLUTION OF DEFECTIVELY INCORPORATED
654-8 TELEPHONE COOPERATIVE. (a) A telephone cooperative that purports
654-9 to have been incorporated or reincorporated under this chapter but
654-10 that has not complied with a requirement for legal corporate
654-11 existence may file a certificate of dissolution in the same manner
654-12 as a validly incorporated telephone cooperative.
654-13 (b) The certificate of dissolution may be authorized by a
654-14 majority of the incorporators or directors at a meeting called by
654-15 an incorporator and held at the principal office of the cooperative
654-16 named in the articles of incorporation.
654-17 (c) The incorporator calling the meeting must give at least
654-18 ten days' notice of the meeting by mail to the last known post
654-19 office address of each incorporator or director. (V.A.C.S.
654-20 Art. 1528c, Sec. 21(c).)
654-21 CHAPTER 163. JOINT POWERS AGENCIES
654-22 SUBCHAPTER A. GENERAL PROVISIONS
654-23 Sec. 163.001. DEFINITIONS
654-24 (Sections 163.002-163.010 reserved for expansion)
655-1 SUBCHAPTER B. COOPERATION BY PUBLIC AND PRIVATE ENTITIES
655-2 Sec. 163.011. EFFECT OF SUBCHAPTER
655-3 Sec. 163.012. AUTHORITY TO MAKE AGREEMENTS
655-4 Sec. 163.013. GENERAL RIGHTS, POWERS, AND DUTIES OF ENTITIES
655-5 Sec. 163.014. USE OF EMINENT DOMAIN
655-6 Sec. 163.015. TAXATION
655-7 Sec. 163.016. INSURANCE
655-8 (Sections 163.017-163.050 reserved for expansion)
655-9 SUBCHAPTER C. MUNICIPAL POWER AGENCIES
655-10 Sec. 163.051. DEFINITIONS
655-11 Sec. 163.052. CONSTRUCTION
655-12 Sec. 163.053. CONFLICTS WITH OTHER LAW
655-13 Sec. 163.054. CREATION OF AGENCY
655-14 Sec. 163.055. RE-CREATION OF AGENCY
655-15 Sec. 163.056. NOTICE
655-16 Sec. 163.057. CONTENTS OF CONCURRENT ORDINANCE
655-17 Sec. 163.058. ELECTION
655-18 Sec. 163.059. BOARD OF DIRECTORS
655-19 Sec. 163.060. POWERS
655-20 Sec. 163.061. CONSTRUCTION CONTRACTS
655-21 Sec. 163.062. SALE OR EXCHANGE OF ELECTRIC ENERGY
655-22 Sec. 163.063. RATES AND CHARGES
655-23 Sec. 163.064. REVENUE BONDS
655-24 Sec. 163.065. REFUNDING BONDS
655-25 Sec. 163.066. ISSUANCE, FORM, AND PROVISIONS OF BONDS
656-1 Sec. 163.067. NONNEGOTIABLE PURCHASE MONEY NOTES
656-2 Sec. 163.068. BOND ANTICIPATION NOTES
656-3 (Sections 163.069-163.100 reserved for expansion)
656-4 SUBCHAPTER D. AGENCY RECEIVING POWER THROUGH
656-5 INTERSTATE SYSTEM
656-6 Sec. 163.101. CREATION
656-7 Sec. 163.102. POWERS
656-8 (Sections 163.103-163.120 reserved for expansion)
656-9 SUBCHAPTER E. ELECTRIC COOPERATIVE CORPORATIONS
656-10 Sec. 163.121. CREATION
656-11 Sec. 163.122. APPLICATION OF OPEN MEETINGS LAW
656-12 Sec. 163.123. AUTHORITY OF PUBLIC UTILITY COMMISSION
656-13 Sec. 163.124. POWER TO ISSUE CERTAIN BONDS OR SECURITIES
656-14 CHAPTER 163. JOINT POWERS AGENCIES
656-15 SUBCHAPTER A. GENERAL PROVISIONS
656-16 Sec. 163.001. DEFINITIONS. In this chapter:
656-17 (1) "Electric facility" means a facility necessary or
656-18 incidental to generating or transmitting electric power and energy,
656-19 including:
656-20 (A) a generating unit or plant or a plant site;
656-21 (B) transmission lines;
656-22 (C) a right-of-way or other right relating to a
656-23 facility; and
656-24 (D) property and equipment.
656-25 (2) "Entity" means a person who engages in the
657-1 authorized generation, transmission, or distribution of electric
657-2 energy for sale to the public.
657-3 (3) "Private entity" means an entity that is not a
657-4 public entity.
657-5 (4) "Public entity" means an entity that is an agency
657-6 or political subdivision of this state. (V.A.C.S. Art. 1435a, Sec.
657-7 2.)
657-8 (Sections 163.002-163.010 reserved for expansion)
657-9 SUBCHAPTER B. COOPERATION BY PUBLIC AND PRIVATE ENTITIES
657-10 Sec. 163.011. EFFECT OF SUBCHAPTER. This subchapter does
657-11 not affect:
657-12 (1) the statutory purposes prescribed by state law
657-13 relating to creating, establishing, or operating an entity that
657-14 co-owns a facility;
657-15 (2) an entity's rights or powers in effect on August
657-16 27, 1973, relating to the generation, transmission, distribution,
657-17 or sale of electric power and energy; or
657-18 (3) a contract in effect on August 27, 1973.
657-19 (V.A.C.S. Art. 1435a, Secs. 1 (part), 5.)
657-20 Sec. 163.012. AUTHORITY TO MAKE AGREEMENTS. Public and
657-21 private entities may by agreement jointly plan, finance, acquire,
657-22 construct, own, operate, and maintain electric facilities to:
657-23 (1) achieve economies of scale in providing electric
657-24 energy to the public;
657-25 (2) promote the economic development of this state and
658-1 its natural resources; and
658-2 (3) meet the state's future power needs. (V.A.C.S.
658-3 Art. 1435a, Secs. 1 (part), 3 (part).)
658-4 Sec. 163.013. GENERAL RIGHTS, POWERS, AND DUTIES OF
658-5 ENTITIES. (a) A participating entity may:
658-6 (1) use its means and assets to plan, acquire,
658-7 construct, own, operate, and maintain its interest in an electric
658-8 facility;
658-9 (2) issue bonds and other securities to raise money
658-10 for a purpose described by Subdivision (1) in the same manner and
658-11 to the same extent and subject to the same conditions as would be
658-12 applicable if the entity had sole ownership of the electric
658-13 facility;
658-14 (3) acquire, for the use and benefit of each
658-15 participating entity, land, easements, and property for an electric
658-16 facility by purchase or by exercising the power of eminent domain;
658-17 and
658-18 (4) transfer or otherwise convey the acquired land,
658-19 property, or property interest or otherwise cause the land,
658-20 property, or interest to become vested in other participating
658-21 entities to the extent to which and in the manner in which the
658-22 participating entities agree.
658-23 (b) Each participating entity is a cotenant or co-owner of
658-24 the electric facility and in relation to the entity's undivided
658-25 interest in the facility has each right, privilege, exemption,
659-1 power, duty, and liability the entity would have had if the entity
659-2 had sole ownership. (V.A.C.S. Art. 1435a, Secs. 1 (part), 3
659-3 (part), 4(1), 4(2) (part).)
659-4 Sec. 163.014. USE OF EMINENT DOMAIN. (a) A participating
659-5 entity has the power of eminent domain to be exercised as provided
659-6 by this section.
659-7 (b) The use of eminent domain authority by a participating
659-8 entity is governed by the law relating to an eminent domain
659-9 proceeding involving a municipality in this state.
659-10 (c) A participating entity may acquire a fee title to the
659-11 condemned real property.
659-12 (d) A participating entity may not use eminent domain
659-13 authority to acquire:
659-14 (1) an interest in an electric facility that belongs
659-15 to another entity; or
659-16 (2) an interest in real property to drill, mine, or
659-17 produce from that property oil, gas, geothermal resources,
659-18 geothermal/geopressured resources, or lignite, coal, sulphur,
659-19 uranium, plutonium, or other minerals that belong to another person
659-20 regardless of whether the material is in place or is in the process
659-21 of being drilled, mined, or produced.
659-22 (e) Subsection (d) does not affect the authority of a
659-23 participating entity to acquire full title to real property for a
659-24 plant site and any related surface installation or equipment,
659-25 including a cooling reservoir. (V.A.C.S. Art. 1435a, Sec. 4(2)
660-1 (part).)
660-2 Sec. 163.015. TAXATION. (a) A participating private entity
660-3 shall render for ad valorem taxation its undivided fractional
660-4 interest in a jointly owned electric facility. An ad valorem or
660-5 similar tax shall be imposed separately against the undivided
660-6 interest of the participating private entity.
660-7 (b) A tax or assessment, including an excise tax or sales
660-8 and use tax, attributable to a property or service bought, sold,
660-9 leased, or used to construct, maintain, repair, or operate a
660-10 jointly owned electric facility shall be imposed separately against
660-11 each participating entity in proportion to the entity's respective
660-12 undivided interest in the facility.
660-13 (c) A participating entity is not liable for a tax or
660-14 assessment attributable to another participating entity under
660-15 Subsection (a) or (b).
660-16 (d) A participating entity is entitled to each
660-17 constitutional or statutory ad valorem or other tax exemption
660-18 attributable to the jointly owned electric facility or to a
660-19 property or service bought, sold, leased, or used to construct,
660-20 maintain, repair, or operate the facility to the extent the entity
660-21 would have been exempt from the tax if the entity's undivided
660-22 interest were an entire interest in the facility or in the property
660-23 or service. The entity is entitled to any applicable exemption
660-24 certificate or statement provided by law to claim or prove the
660-25 exemption. (V.A.C.S. Art. 1435a, Sec. 4(3).)
661-1 Sec. 163.016. INSURANCE. A participating entity may:
661-2 (1) contract for insurance, including specialized
661-3 insurance for property and risks relating to the ownership,
661-4 operation, and maintenance of electric facilities;
661-5 (2) contract for insurance for the use and benefit of
661-6 each of the other participating entities as though the insurance
661-7 was for the sole benefit of the contracting entity; and
661-8 (3) cause the rights of the other participating
661-9 entities to be protected under the contract in accordance with each
661-10 entity's undivided interest or entitlement under any applicable
661-11 agreement between the entities. (V.A.C.S. Art. 1435a, Sec. 4(4).)
661-12 (Sections 163.017-163.050 reserved for expansion)
661-13 SUBCHAPTER C. MUNICIPAL POWER AGENCIES
661-14 Sec. 163.051. DEFINITIONS. In this subchapter:
661-15 (1) "Agency" means a municipal power agency created
661-16 under this subchapter.
661-17 (2) "Bond" includes a note, but does not include a
661-18 nonnegotiable purchase money note issued under Section 163.067.
661-19 (3) "Concurrent ordinance" means an ordinance or order
661-20 adopted under this subchapter by two or more public entities that
661-21 relates to the creation or re-creation of a municipal power agency.
661-22 (4) "Obligations" means revenue bonds or notes.
661-23 (V.A.C.S. Art. 1435a, Secs. 4a(c) (part), (j) (part); New.)
661-24 Sec. 163.052. CONSTRUCTION. This subchapter shall be
661-25 liberally construed to carry out its purpose. (V.A.C.S.
662-1 Art. 1435a, Sec. 4a(s) (part).)
662-2 Sec. 163.053. CONFLICTS WITH OTHER LAW. This subchapter
662-3 prevails to the extent of a conflict between this subchapter and
662-4 any other law, including:
662-5 (1) a law regulating the affairs of a municipal
662-6 corporation; or
662-7 (2) a home-rule charter provision. (V.A.C.S.
662-8 Art. 1435a, Sec. 4a(s) (part).)
662-9 Sec. 163.054. CREATION OF AGENCY. (a) Public entities may
662-10 create an agency by concurrent ordinances subject to voter
662-11 approval.
662-12 (b) A public entity may join in the creation of an agency
662-13 under this subchapter only if on May 8, 1975, and at the time the
662-14 concurrent ordinance is adopted, the entity was engaged in the
662-15 authorized generation of electric energy for sale to the public.
662-16 This subsection does not prohibit a public entity from disposing of
662-17 its electric generating capabilities after creation of the agency.
662-18 (c) An agency is a:
662-19 (1) separate municipal corporation;
662-20 (2) political subdivision of this state; and
662-21 (3) political entity and corporate body.
662-22 (d) An agency may not impose a tax but has all the other
662-23 powers relating to municipally owned utilities and provided by law
662-24 to a municipality that owns a public utility. (V.A.C.S.
662-25 Art. 1435a, Secs. 4a(a) (part); (b) (part).)
663-1 Sec. 163.055. RE-CREATION OF AGENCY. (a) The public
663-2 entities that create an agency may by concurrent ordinances
663-3 re-create the agency by adding or deleting, or both, a public
663-4 entity.
663-5 (b) The public entities may not re-create an agency if the
663-6 re-creation will impair an agency obligation.
663-7 (c) Re-creation by adding a public entity is subject to
663-8 voter approval in accordance with Section 163.058. (V.A.C.S.
663-9 Art. 1435a, Sec. 4a(b) (part).)
663-10 Sec. 163.056. NOTICE. (a) The governing body of each
663-11 public entity shall publish notice of its intention to create an
663-12 agency once a week for two consecutive weeks.
663-13 (b) The first publication must appear before the 14th day
663-14 before the date set for passage of the concurrent ordinance.
663-15 (c) The notice must state:
663-16 (1) the date, time, and location at which the
663-17 governing body proposes to enact the concurrent ordinance; and
663-18 (2) that an agency will be created on the date on
663-19 which the concurrent ordinances take effect. (V.A.C.S. Art. 1435a,
663-20 Sec. 4a(a) (part).)
663-21 Sec. 163.057. CONTENTS OF CONCURRENT ORDINANCE. A
663-22 concurrent ordinance creating an agency under Section 163.054 or
663-23 re-creating an agency under Section 163.055 must, as adopted by
663-24 each public entity:
663-25 (1) contain identical provisions;
664-1 (2) define the boundaries of the agency to include the
664-2 territory within the boundaries of each participating public
664-3 entity;
664-4 (3) designate the name of the agency; and
664-5 (4) designate the number, place, initial term, and
664-6 manner of appointment of directors in accordance with Section
664-7 163.059. (V.A.C.S. Art. 1435a, Secs. 4a(c) (part), (d) (part), (e)
664-8 (part).)
664-9 Sec. 163.058. ELECTION. (a) An agency may not be created
664-10 unless the creation is approved by a majority of the qualified
664-11 voters of each public entity creating the agency at an election
664-12 called and held for that purpose.
664-13 (b) An agency may not be re-created by addition of a public
664-14 entity unless the re-creation is approved by a majority of the
664-15 qualified voters of the additional public entity at an election
664-16 called and held for that purpose.
664-17 (c) Notice of an election under this section shall be given
664-18 in accordance with Article 704, Revised Statutes. The election
664-19 shall be called and held in accordance with:
664-20 (1) the Election Code;
664-21 (2) Chapter 1, Title 22, Revised Statutes; and
664-22 (3) this subchapter. (V.A.C.S. Art. 1435a, Secs.
664-23 4a(a) (part), (b) (part).)
664-24 Sec. 163.059. BOARD OF DIRECTORS. (a) The agency shall be
664-25 governed by a board of directors. The board is responsible for the
665-1 management, operation, and control of the property belonging to the
665-2 agency.
665-3 (b) The board must include at least four directors. Each
665-4 director must be appointed by place by the governing bodies of the
665-5 participating public entities. Each participating public entity is
665-6 entitled to appoint at least one director.
665-7 (c) Directors must serve staggered terms. Successor
665-8 directors are appointed in the same manner as the original
665-9 appointees.
665-10 (d) To qualify to serve as a director, a person must be a
665-11 qualified voter and reside in the boundaries of the appointing
665-12 public entity when the person takes the constitutional oath of
665-13 office.
665-14 (e) An employee, officer, or member of the governing body of
665-15 a public entity may serve as a director but may not have a personal
665-16 interest in a contract executed by the agency other than as an
665-17 employee, officer, or member of the governing body of the public
665-18 entity.
665-19 (f) Directors serve without compensation. (V.A.C.S.
665-20 Art. 1435a, Secs. 4a(d) (part), (e) (part), (f) (part).)
665-21 Sec. 163.060. POWERS. (a) An agency may not engage in any
665-22 utility business other than the generation, transmission, and sale
665-23 or exchange of electric energy to:
665-24 (1) a participating public entity; or
665-25 (2) a private entity that owns jointly with the agency
666-1 an electric generating facility in this state.
666-2 (b) The agency may:
666-3 (1) perform any act necessary to the full exercise of
666-4 the agency's powers;
666-5 (2) enter into a contract, lease, or agreement with or
666-6 accept a grant or loan from a:
666-7 (A) department or agency of the United States;
666-8 (B) department, agency, or political subdivision
666-9 of this state; or
666-10 (C) public or private person;
666-11 (3) sell, lease, convey, or otherwise dispose of any
666-12 right, interest, or property the agency considers to be unnecessary
666-13 for the efficient maintenance or operation of its electric
666-14 facilities;
666-15 (4) use the uniform system of accounts prescribed for
666-16 utilities and licenses by the Federal Energy Regulatory Commission;
666-17 and
666-18 (5) adopt rules to govern the operation of the agency
666-19 and its employees, facilities, and service. (V.A.C.S. Art. 1435a,
666-20 Secs. 4a(a) (part), (f) (part), (o) (part), (p).)
666-21 Sec. 163.061. CONSTRUCTION CONTRACTS. (a) Except as
666-22 provided by Subsection (c), an agency may award a contract for
666-23 construction of an improvement that involves the expenditure of
666-24 more than $20,000 only on the basis of competitive bids.
666-25 (b) The agency shall publish notice of intent to receive
667-1 bids once a week for two consecutive weeks in a newspaper of
667-2 general circulation in this state. The first publication must
667-3 appear before the 14th day before the date bids are to be received.
667-4 (c) An entity that has joint ownership of the improvement to
667-5 be constructed or that is an agent of a joint owner shall award a
667-6 contract using the entity's contracting procedures. (V.A.C.S.
667-7 Art. 1435a, Sec. 4a(o) (part).)
667-8 Sec. 163.062. SALE OR EXCHANGE OF ELECTRIC ENERGY. (a) An
667-9 agency may participate through appropriate contracts in power
667-10 pooling and power exchange agreements with other entities through
667-11 direct or indirect system interconnections.
667-12 (b) An entity that participates with an agency under this
667-13 section may:
667-14 (1) purchase electric energy from the agency;
667-15 (2) sell or dispose of electric energy to the agency;
667-16 or
667-17 (3) exchange electric energy with the agency.
667-18 (c) An entity payment for electric energy purchased from the
667-19 agency is an operating expense of the entity's electric system.
667-20 (d) An agency contract to sell or exchange electric energy
667-21 may require the purchaser to pay for the electric energy regardless
667-22 of whether the electric energy is produced or delivered. (V.A.C.S.
667-23 Art. 1435a, Secs. 4a(f) (part), (g) (part), (o) (part).)
667-24 Sec. 163.063. RATES AND CHARGES. (a) An agency may
667-25 establish and maintain rates and charges for electric power and
668-1 energy the agency delivers, transmits, or exchanges. The rates and
668-2 charges must:
668-3 (1) be reasonable and in accordance with prudent
668-4 utility practices;
668-5 (2) be based on periodic cost of service studies and
668-6 subject to modification, unless such a basis for rates and charges
668-7 is waived by the purchaser by contract; and
668-8 (3) be developed to recover the agency's cost of
668-9 producing and transmitting the electric power and energy, as
668-10 applicable, which cost must include the amortization of capital
668-11 investment.
668-12 (b) Notwithstanding Subsection (a), this state reserves its
668-13 power to regulate an agency's rates and charges for electric energy
668-14 supplied by the agency's facilities.
668-15 (c) Until obligations issued under this subchapter have been
668-16 paid and discharged, with all interest on the obligations, interest
668-17 on unpaid interest installments on the obligations, and other
668-18 connected and incurred costs or expenses, this state pledges to and
668-19 agrees with the purchasers and successive holders of the
668-20 obligations that it will not:
668-21 (1) limit or alter the power of an agency to establish
668-22 and collect rates and charges under this section sufficient to pay:
668-23 (A) necessary operational and maintenance
668-24 expenses;
668-25 (B) interest and principal on obligations issued
669-1 by the agency;
669-2 (C) sinking funds and reserve fund payments; and
669-3 (D) other charges necessary to fulfill the terms
669-4 of any agreement; or
669-5 (2) take any action that will impair the rights or
669-6 remedies of the holders of the obligations. (V.A.C.S. Art. 1435a,
669-7 Secs. 4a(g) (part), (h).)
669-8 Sec. 163.064. REVENUE BONDS. (a) The agency may issue
669-9 revenue bonds to accomplish the purposes of the agency.
669-10 (b) The agency may pledge to the payment of the obligations
669-11 the revenues of all or part of its electric facilities, including
669-12 facilities acquired after the obligations are issued. However,
669-13 operating and maintenance expenses, including salaries and labor,
669-14 materials, and repairs of electric facilities necessary to render
669-15 efficient service constitute a first lien on and charge against the
669-16 pledged revenue.
669-17 (c) The agency may set aside from the proceeds from the sale
669-18 of the obligations amounts for payment into the interest and
669-19 sinking fund and reserve fund, and for interest and operating
669-20 expenses during construction and development, as specified in the
669-21 proceedings authorizing the obligations.
669-22 (d) Obligation proceeds may be invested, pending their use,
669-23 in securities, interest-bearing certificates, or time deposits as
669-24 specified in the authorizing proceedings.
669-25 (e) Agency obligations are authorized investments for:
670-1 (1) a bank;
670-2 (2) a savings bank;
670-3 (3) a trust company;
670-4 (4) a savings and loan association; and
670-5 (5) an insurance company.
670-6 (f) The obligations, when accompanied by all appurtenant,
670-7 unmatured coupons and to the extent of the lesser of their face
670-8 value or market value, are eligible to secure the deposit of public
670-9 funds of this state, a political subdivision of this state, and any
670-10 other political corporation of this state. (V.A.C.S. Art. 1435a,
670-11 Secs. 4a(i), (j) (part), (k), (n).)
670-12 Sec. 163.065. REFUNDING BONDS. The agency may issue
670-13 refunding bonds. (V.A.C.S. Art. 1435a, Sec. 4a(m) (part).)
670-14 Sec. 163.066. ISSUANCE, FORM, AND PROVISIONS OF BONDS.
670-15 (a) Agency bonds that are payable from agency revenues or
670-16 anticipated bond proceeds and the records relating to their
670-17 issuance must be submitted to the attorney general for examination
670-18 before delivery.
670-19 (b) The bonds:
670-20 (1) must mature serially or otherwise not more than 50
670-21 years after the date of issuance;
670-22 (2) may be made redeemable before maturity at the time
670-23 and at the price or prices set by the agency; and
670-24 (3) may be sold at public or private sale under the
670-25 terms and for the price the agency determines to be in the best
671-1 interest of the agency.
671-2 (c) The bonds must be signed by the presiding officer or
671-3 assistant presiding officer of the agency, be attested by the
671-4 secretary, and bear the seal of the agency. The signatures may be
671-5 printed on the bonds if authorized by the agency, and the seal may
671-6 be impressed or printed on the bonds. The agency may adopt or use
671-7 for any purpose the signature of an individual who has been an
671-8 officer of the agency, regardless of whether the individual has
671-9 ceased to be an officer at the time the bonds are delivered to the
671-10 purchaser. (V.A.C.S. Art. 1435a, Secs. 4a(l) (part), (q) (part),
671-11 (r) (part).)
671-12 Sec. 163.067. NONNEGOTIABLE PURCHASE MONEY NOTES. (a) The
671-13 agency may issue nonnegotiable purchase money notes to acquire land
671-14 or fuel resources.
671-15 (b) Nonnegotiable purchase money notes are:
671-16 (1) payable in installments;
671-17 (2) secured by the property acquired with the notes or
671-18 other collateral the agency substitutes; and
671-19 (3) not a security or agency obligation.
671-20 (c) Nonnegotiable purchase money notes may be further
671-21 secured by a promise to issue bonds or bond anticipation notes to
671-22 pay the purchase money notes. (V.A.C.S. Art. 1435a, Sec. 4a(r)
671-23 (part).)
671-24 Sec. 163.068. BOND ANTICIPATION NOTES. (a) The agency may
671-25 issue bond anticipation notes:
672-1 (1) for any purpose for which the agency may issue
672-2 bonds; or
672-3 (2) to refund previously issued bond anticipation
672-4 notes or nonnegotiable purchase money notes.
672-5 (b) Bond anticipation notes are subject to the limitations
672-6 and conditions prescribed by this subchapter for bonds.
672-7 (c) The agency may contract with purchasers of bond
672-8 anticipation notes that the proceeds of one or more series of bonds
672-9 will be used to pay or refund the notes. (V.A.C.S. Art. 1435a,
672-10 Sec. 4a(r) (part).)
672-11 (Sections 163.069-163.100 reserved for expansion)
672-12 SUBCHAPTER D. AGENCY RECEIVING POWER THROUGH
672-13 INTERSTATE SYSTEM
672-14 Sec. 163.101. CREATION. (a) Notwithstanding Section
672-15 163.054, two or more public entities may create a municipal power
672-16 agency governed by Subchapter C if the entities:
672-17 (1) are municipalities;
672-18 (2) are engaged in the distribution and sale of
672-19 electric energy to the public; and
672-20 (3) receive a major portion of their power through or
672-21 from an interstate electric system.
672-22 (b) The entities must comply with the provisions of
672-23 Subchapter C relating to the creation of a municipal power agency,
672-24 including the concurrent ordinance and election provisions.
672-25 (V.A.C.S. Art. 1435a, Sec. 4b (part).)
673-1 Sec. 163.102. POWERS. (a) An agency created under this
673-2 subchapter may:
673-3 (1) generate and transmit electric power and energy
673-4 inside and outside this state;
673-5 (2) sell, purchase, or exchange electric power and
673-6 energy with entities inside or outside this state; and
673-7 (3) construct or acquire new steam electric generating
673-8 facilities, but only if the facilities are owned jointly by the
673-9 agency and one or more private entities.
673-10 (b) This section does not authorize an agency created under
673-11 this subchapter to engage in the distribution and retail sale of
673-12 electric power and energy. (V.A.C.S. Art. 1435a, Sec. 4b (part).)
673-13 (Sections 163.103-163.120 reserved for expansion)
673-14 SUBCHAPTER E. ELECTRIC COOPERATIVE CORPORATIONS
673-15 Sec. 163.121. CREATION. An electric cooperative corporation
673-16 may join one or more public entities to create a joint powers
673-17 agency as if the corporation were also a public entity. (V.A.C.S.
673-18 Art. 1435a, Sec. 4c(a).)
673-19 Sec. 163.122. APPLICATION OF OPEN MEETINGS LAW. A joint
673-20 powers agency created under this subchapter is a governmental body
673-21 subject to Chapter 551, Government Code. (V.A.C.S. Art. 1435a,
673-22 Sec. 4c(c).)
673-23 Sec. 163.123. AUTHORITY OF PUBLIC UTILITY COMMISSION. A
673-24 joint powers agency created under this subchapter is:
673-25 (1) subject to all applicable provisions of Title 2;
674-1 and
674-2 (2) under the jurisdiction of the Public Utility
674-3 Commission of Texas as provided by Title 2. (V.A.C.S. Art. 1435a,
674-4 Sec. 4c(b).)
674-5 Sec. 163.124. POWER TO ISSUE CERTAIN BONDS OR SECURITIES.
674-6 This subchapter does not authorize an electric cooperative
674-7 corporation to issue bonds or other securities that are tax exempt
674-8 under federal law. (V.A.C.S. Art. 1435a, Sec. 4c(d).)
674-9 CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES
674-10 BY PUBLIC ENTITIES
674-11 Sec. 164.001. JOINT OWNERSHIP OF ELECTRIC UTILITY FACILITIES
674-12 AUTHORIZED
674-13 Sec. 164.002. PUBLIC PURPOSE
674-14 Sec. 164.003. APPROVAL OF AGREEMENT BY ATTORNEY
674-15 GENERAL
674-16 Sec. 164.004. INCREASE IN OWNERSHIP SHARES
674-17 Sec. 164.005. CONTRACTUAL OBLIGATIONS AS LIEN ON
674-18 SYSTEM REVENUE
674-19 Sec. 164.006. CONSTRUCTION WITH OTHER LAWS
674-20 CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES
674-21 BY PUBLIC ENTITIES
674-22 Sec. 164.001. JOINT OWNERSHIP OF ELECTRIC UTILITY FACILITIES
674-23 AUTHORIZED. (a) Political subdivisions may join together to
674-24 finance, construct, complete, acquire, or operate electric utility
674-25 facilities so that the facilities or an undivided interest in the
675-1 facilities is jointly owned by the political subdivisions as
675-2 cotenants or co-owners.
675-3 (b) The ownership shares in the facilities are those
675-4 approved by the governing bodies of the political subdivisions, as
675-5 set forth in an agreement authorized by the governing bodies.
675-6 (V.A.C.S. Art. 1435b, Sec. 1 (part).)
675-7 Sec. 164.002. PUBLIC PURPOSE. The exercise by a political
675-8 subdivision of the authority granted by this chapter, including the
675-9 exercise of the power to issue bonds, notes, or other obligations
675-10 to accomplish the purposes of this chapter, and the performance of
675-11 an agreement entered into under this chapter are considered to be
675-12 additional public purposes of the political subdivision, without
675-13 regard to any express or implied limitation on the authority or
675-14 purposes of the political subdivision under any other general or
675-15 special law or charter provision. (V.A.C.S. Art. 1435b, Sec. 3
675-16 (part).)
675-17 Sec. 164.003. APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.
675-18 (a) An agreement between political subdivisions establishing an
675-19 interest in electric utility facilities that is executed under this
675-20 chapter shall be submitted to the attorney general in connection
675-21 with any proceeding to finance the contractual obligation by the
675-22 issuance of bonds.
675-23 (b) An agreement submitted under Subsection (a) is
675-24 incontestable on approval as to legality by the attorney general.
675-25 (V.A.C.S. Art. 1435b, Sec. 1 (part).)
676-1 Sec. 164.004. INCREASE IN OWNERSHIP SHARES. (a) An
676-2 agreement under this chapter may provide for a political
676-3 subdivision to increase its present or future ownership share of
676-4 the electric utility facilities by installment purchase payments
676-5 and for another political subdivision that is a party to the
676-6 agreement to transfer, in consideration of those payments, any
676-7 portion of its present or future ownership share of the facilities
676-8 to the purchasing political subdivision.
676-9 (b) A payment made by a political subdivision to acquire an
676-10 ownership interest is not treated as a maintenance and operating
676-11 expense but is treated as a capital cost as if the political
676-12 subdivision had issued bonds to construct or acquire the ownership
676-13 interest, unless otherwise specified in the agreement. (V.A.C.S.
676-14 Art. 1435b, Sec. 1 (part).)
676-15 Sec. 164.005. CONTRACTUAL OBLIGATIONS AS LIEN ON SYSTEM
676-16 REVENUE. (a) If the electric utility facilities financed,
676-17 acquired, constructed, or completed are a part of a utility system
676-18 of a political subdivision, the obligation to make the contract
676-19 payments to acquire an ownership interest is a lien on the revenue
676-20 of the system on a parity with the outstanding bonds of the system
676-21 to the extent permitted in the ordinance or resolution authorizing
676-22 or the deed of trust or indenture securing the payment of the
676-23 outstanding bonds.
676-24 (b) If the ordinance or resolution authorizing or the deed
676-25 of trust or trust indenture securing the revenue bonds of a utility
677-1 system provides for the subsequent issuance of additional bonds or
677-2 the creation of a contractual obligation described by Section
677-3 164.004 and provides that the payments to be made for the security
677-4 or payment of the subsequent bonds or contractual obligation are to
677-5 be on a parity with the previously issued bonds or bonds then to be
677-6 issued, the political subdivision may, subject to any conditions
677-7 contained in that ordinance, resolution, deed of trust, or trust
677-8 indenture, authorize, issue, and sell additional bonds or incur the
677-9 contractual obligation in a different series payable from the
677-10 entire revenue of the utility system on a parity with the
677-11 previously issued bonds or bonds then to be issued and secured by a
677-12 lien on the revenue of the system on a parity with the lien
677-13 securing the previously issued bonds or bonds then to be issued.
677-14 This subsection applies without regard to whether the previously
677-15 issued bonds:
677-16 (1) were issued before August 29, 1977; or
677-17 (2) are an original issue or a refunding issue.
677-18 (c) A political subdivision may pledge the revenue of a
677-19 utility system to pay contract payments to acquire an ownership
677-20 interest in an electric utility facility under this chapter.
677-21 (d) In this section, "utility system" includes a combined
677-22 utility system. (V.A.C.S. Art. 1435b, Sec. 2.)
677-23 Sec. 164.006. CONSTRUCTION WITH OTHER LAWS. To provide full
677-24 authority for the execution of an agreement under this chapter,
677-25 this chapter applies to a municipality as if this chapter were
678-1 originally contained in Chapter 10, Title 28, Revised Statutes.
678-2 This chapter prevails over any charter provision or general or
678-3 special law. (V.A.C.S. Art. 1435b, Sec. 3 (part).)
678-4 (Chapters 165-180 reserved for expansion)
678-5 SUBTITLE B. PROVISIONS REGULATING DELIVERY OF SERVICES
678-6 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES
678-7 SUBCHAPTER A. POWERS AND DUTIES OF GAS AND ELECTRIC CORPORATIONS
678-8 Sec. 181.001. DEFINITIONS
678-9 Sec. 181.002. CORPORATE POWERS
678-10 Sec. 181.003. AUTHORITY TO BORROW MONEY, ISSUE STOCK, OR MORTGAGE
678-11 PROPERTY
678-12 Sec. 181.004. CONDEMNATION OF PROPERTY
678-13 Sec. 181.005. AUTHORITY TO LAY AND MAINTAIN LINES
678-14 Sec. 181.006. CONSENT REQUIRED IN MUNICIPALITY
678-15 Sec. 181.007. AUTHORITY TO HOLD LAND OR OTHER
678-16 PROPERTY
678-17 Sec. 181.008. AUTHORITY RELATING TO TRANSPORT OR SALE
678-18 Sec. 181.009. DISCRIMINATION PROHIBITED
678-19 (Sections 181.010-181.020 reserved for expansion)
678-20 SUBCHAPTER B. PROVISIONS APPLYING TO GAS UTILITIES
678-21 Sec. 181.021. DEFINITIONS
678-22 Sec. 181.022. AUTHORITY TO LAY AND MAINTAIN GAS FACILITY
678-23 Sec. 181.023. CONSENT REQUIRED IN MUNICIPALITY
678-24 Sec. 181.024. NOTICE TO STATE OR COUNTY
679-1 Sec. 181.025. RELOCATION OF GAS FACILITY TO ALLOW CHANGE TO
679-2 TRAFFIC LANE
679-3 Sec. 181.026. EFFECT OF MUNICIPAL INCORPORATION ON GAS
679-4 FACILITY PREVIOUSLY LAID
679-5 (Sections 181.027-181.040 reserved for expansion)
679-6 SUBCHAPTER C. PROVISIONS APPLYING TO ELECTRIC UTILITIES
679-7 Sec. 181.041. DEFINITIONS
679-8 Sec. 181.042. AUTHORITY TO CONSTRUCT, MAINTAIN, AND OPERATE
679-9 LINES
679-10 Sec. 181.043. CONSENT REQUIRED IN MUNICIPALITY
679-11 Sec. 181.044. NOTICE TO STATE OR COUNTY
679-12 Sec. 181.045. STANDARDS FOR CONSTRUCTION, OPERATION, AND
679-13 MAINTENANCE OF LINES
679-14 Sec. 181.046. RELOCATION OF LINE TO ALLOW ROAD OR DITCH
679-15 IMPROVEMENT
679-16 Sec. 181.047. EFFECT OF MUNICIPAL INCORPORATION ON LINE
679-17 PREVIOUSLY CONSTRUCTED
679-18 (Sections 181.048-181.060 reserved for expansion)
679-19 SUBCHAPTER D. PROVISIONS APPLYING TO TELEGRAPH COMPANIES
679-20 Sec. 181.061. DEFINITION
679-21 Sec. 181.062. TELEGRAPH CONNECTIONS
679-22 Sec. 181.063. EXCEPTIONS
679-23 Sec. 181.064. HEARING AND DETERMINATION
679-24 Sec. 181.065. PENALTY
679-25 Sec. 181.066. APPEAL
680-1 (Sections 181.067-181.080 reserved for expansion)
680-2 SUBCHAPTER E. PROVISIONS APPLYING TO TELEPHONE AND
680-3 TELEGRAPH CORPORATIONS
680-4 Sec. 181.081. DEFINITIONS
680-5 Sec. 181.082. AUTHORITY TO INSTALL FACILITY IN
680-6 RELATION TO PUBLIC PROPERTY
680-7 Sec. 181.083. AUTHORITY TO CONSTRUCT LINE ON
680-8 PRIVATE PROPERTY
680-9 Sec. 181.084. APPROPRIATION OR CONDEMNATION OF LAND
680-10 Sec. 181.085. PROHIBITION ON LAND CONTRACT EXCLUDING ANOTHER
680-11 TELEGRAPH UTILITY
680-12 Sec. 181.086. LINES IN OR OUTSIDE STATE
680-13 Sec. 181.087. USE OF ANOTHER'S TELEGRAPH LINE
680-14 Sec. 181.088. CONSOLIDATION OF UTILITIES
680-15 Sec. 181.089. MUNICIPAL REGULATION
680-16 (Sections 181.090-181.100 reserved for expansion)
680-17 SUBCHAPTER F. PROVISIONS APPLYING TO COMMUNITY ANTENNA AND
680-18 CABLE TELEVISION UTILITIES
680-19 Sec. 181.101. DEFINITIONS
680-20 Sec. 181.102. AUTHORITY TO INSTALL AND MAINTAIN EQUIPMENT
680-21 Sec. 181.103. NOTICE TO STATE OR COUNTY
680-22 Sec. 181.104. RELOCATION OF EQUIPMENT TO ALLOW CHANGE TO
680-23 TRAFFIC LANE
680-24 (Sections 181.105-181.900 reserved for expansion)
681-1 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
681-2 Sec. 181.901. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
681-3 PROTECT UTILITY
681-4 Sec. 181.902. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
681-5 PREVENT USE OR WASTE OF UTILITY
681-6 COMMODITY OR SERVICE
681-7 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES
681-8 SUBCHAPTER A. POWERS AND DUTIES OF GAS AND ELECTRIC CORPORATIONS
681-9 Sec. 181.001. DEFINITIONS. In this chapter:
681-10 (1) "Corporation" includes partnerships and other
681-11 combinations composed exclusively of corporations or in which a
681-12 corporation is a general partner.
681-13 (2) "Electric corporation" means an electric current
681-14 and power corporation. (V.A.C.S. Art. 1435 (part); (New).)
681-15 Sec. 181.002. CORPORATE POWERS. A gas or electric
681-16 corporation has the powers and rights of a corporation organized
681-17 for profit in this state whenever those powers and duties may be
681-18 applicable. (V.A.C.S. Art. 1437 (part).)
681-19 Sec. 181.003. AUTHORITY TO BORROW MONEY, ISSUE STOCK, OR
681-20 MORTGAGE PROPERTY. A gas or electric corporation has the right to:
681-21 (1) borrow money;
681-22 (2) issue stock, including preferred stock; or
681-23 (3) mortgage a franchise or other property of the
681-24 corporation to secure a debt contracted for any purpose of the
681-25 corporation. (V.A.C.S. Art. 1437 (part).)
682-1 Sec. 181.004. CONDEMNATION OF PROPERTY. A gas or electric
682-2 corporation has the right and power to enter on, condemn, and
682-3 appropriate the land, right-of-way, easement, or other property of
682-4 any person or corporation. (V.A.C.S. Art. 1436 (part).)
682-5 Sec. 181.005. AUTHORITY TO LAY AND MAINTAIN LINES. A gas
682-6 corporation has the right to lay and maintain lines over and across
682-7 a public road, a railroad, railroad right-of-way, an interurban
682-8 railroad, a street railroad, a canal or stream, or a municipal
682-9 street or alley. (V.A.C.S. Art. 1436 (part).)
682-10 Sec. 181.006. CONSENT REQUIRED IN MUNICIPALITY. A gas
682-11 corporation may exercise authority under Section 181.005 in
682-12 relation to a municipal street or alley with the consent of and
682-13 subject to the direction of the governing body of the municipality.
682-14 (V.A.C.S. Art. 1436 (part).)
682-15 Sec. 181.007. AUTHORITY TO HOLD LAND OR OTHER PROPERTY. A
682-16 gas or electric corporation has the power to own, hold, or use
682-17 land, a right-of-way, an easement, a franchise, or a building or
682-18 other structure as necessary for the purpose of the corporation.
682-19 (V.A.C.S. Art. 1435 (part).)
682-20 Sec. 181.008. AUTHORITY RELATING TO TRANSPORT OR SALE.
682-21 (a) A gas or electric corporation has the power to generate, make,
682-22 manufacture, transport, and sell gas, electric current, and power
682-23 to an individual, the public, or a municipality for any purpose.
682-24 (b) A gas or electric corporation may:
682-25 (1) impose reasonable charges for an action taken
683-1 under Subsection (a); and
683-2 (2) construct, maintain, and operate power plants and
683-3 substations and any machinery, apparatus, pipe, pole, wire, device,
683-4 or arrangements as necessary to operate its lines in this state.
683-5 (V.A.C.S. Art. 1435 (part).)
683-6 Sec. 181.009. DISCRIMINATION PROHIBITED. A gas or electric
683-7 corporation may not discriminate against a person, corporation,
683-8 firm, association, or location in:
683-9 (1) charging for gas, electric current, or power; or
683-10 (2) providing service under similar circumstances.
683-11 (V.A.C.S. Arts. 1435 (part), 1438.)
683-12 (Sections 181.010-181.020 reserved for expansion)
683-13 SUBCHAPTER B. PROVISIONS APPLYING TO GAS UTILITIES
683-14 Sec. 181.021. DEFINITIONS. In this subchapter:
683-15 (1) "Gas facility" means a pipe, main, conductor, or
683-16 other facility or fixture used to carry gas.
683-17 (2) "Gas utility" means a person, firm, corporation,
683-18 or municipality engaged in the business of transporting or
683-19 distributing gas for public consumption. (V.A.C.S. Art. 1436b,
683-20 Secs. 1 (part), 2 (part).)
683-21 Sec. 181.022. AUTHORITY TO LAY AND MAINTAIN GAS FACILITY. A
683-22 gas utility has the right to lay and maintain a gas facility
683-23 through, under, along, across, or over a public highway, a public
683-24 road, a public street or alley, or public water. (V.A.C.S. Art.
683-25 1436b, Sec. 1 (part).)
684-1 Sec. 181.023. CONSENT REQUIRED IN MUNICIPALITY. A gas
684-2 utility may exercise authority under Section 181.022 in a
684-3 municipality with the consent of and subject to the direction of
684-4 the governing body of the municipality. (V.A.C.S. Art. 1436b, Sec.
684-5 1 (part).)
684-6 Sec. 181.024. NOTICE TO STATE OR COUNTY. (a) A gas utility
684-7 proposing under this subchapter to locate a gas facility in the
684-8 right-of-way of a state highway or a county road not in a
684-9 municipality shall give notice of the proposal to:
684-10 (1) the Texas Transportation Commission if the
684-11 proposal relates to a state highway; or
684-12 (2) the commissioners court of the county if the
684-13 proposal relates to a county road.
684-14 (b) On receipt of the notice, the Texas Transportation
684-15 Commission or the commissioners court may designate the location in
684-16 the right-of-way where the gas utility may place the gas facility.
684-17 (V.A.C.S. Art. 1436b, Sec. 1 (part).)
684-18 Sec. 181.025. RELOCATION OF GAS FACILITY TO ALLOW CHANGE TO
684-19 TRAFFIC LANE. (a) The authority of the Texas Transportation
684-20 Commission under this section is limited to a gas facility on a
684-21 state highway not in a municipality. The authority of the
684-22 commissioners court under this section is limited to a gas facility
684-23 on a county road not in a municipality.
684-24 (b) The Texas Transportation Commission or the commissioners
684-25 court of a county may require a gas utility to relocate the
685-1 utility's gas facility, at the utility's own expense, to allow the
685-2 widening or other changing of a traffic lane.
685-3 (c) To impose a requirement under this section, the Texas
685-4 Transportation Commission or the commissioners court, as
685-5 appropriate, must give to the gas utility 30 days' written notice
685-6 of the requirement. The notice must identify the gas facility to
685-7 be relocated and indicate the location on the new right-of-way
685-8 where the gas utility may place the facility.
685-9 (d) The gas utility shall replace the grade and surface of
685-10 the highway or road at the utility's own expense. (V.A.C.S.
685-11 Art. 1436b, Sec. 1 (part).)
685-12 Sec. 181.026. EFFECT OF MUNICIPAL INCORPORATION ON GAS
685-13 FACILITY PREVIOUSLY LAID. A gas utility having a gas facility
685-14 located in an area that becomes incorporated after the facility is
685-15 in place may continue to exercise in that area the authority
685-16 granted by this subchapter until the 10th anniversary of the date
685-17 of the incorporation without the consent of but subject to the
685-18 direction of the governing body of the municipality. (V.A.C.S.
685-19 Art. 1436b, Sec. 2.)
685-20 (Sections 181.027-181.040 reserved for expansion)
685-21 SUBCHAPTER C. PROVISIONS APPLYING TO ELECTRIC UTILITIES
685-22 Sec. 181.041. DEFINITIONS. In this subchapter:
685-23 (1) "Electric utility" means:
685-24 (A) an electric cooperative organized under
685-25 Chapter 161;
686-1 (B) a corporation or river authority, if the
686-2 river authority is created by a statute of this state:
686-3 (i) that generates, transmits, or
686-4 distributes electric energy in this state; and
686-5 (ii) whose operations are subject to the
686-6 judicial and legislative processes of this state; or
686-7 (C) a municipal electric utility.
686-8 (2) "Municipal electric utility" means a municipality
686-9 in this state that owns and operates an electric generating plant
686-10 or that operates electric transmission lines or an electric
686-11 distribution system. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a
686-12 (part).)
686-13 Sec. 181.042. AUTHORITY TO CONSTRUCT, MAINTAIN, AND OPERATE
686-14 LINES. An electric utility has the right to construct, maintain,
686-15 and operate lines over, under, across, on, or along a state
686-16 highway, a county road, a municipal street or alley, or other
686-17 public property in a municipality. (V.A.C.S. Art. 1436a, Secs. 1
686-18 (part), 1a (part).)
686-19 Sec. 181.043. CONSENT REQUIRED IN MUNICIPALITY. (a) An
686-20 electric utility may exercise authority under Section 181.042 in a
686-21 municipality with the consent of and subject to the direction of
686-22 the governing body of the municipality.
686-23 (b) Subsection (a) does not apply to a municipal electric
686-24 utility exercising authority under Section 181.042 in its municipal
686-25 territory. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a (part).)
687-1 Sec. 181.044. NOTICE TO STATE OR COUNTY. (a) An electric
687-2 utility proposing under this subchapter to construct a line along
687-3 the right-of-way of a state highway or a county road not in a
687-4 municipality shall give notice of the proposal to:
687-5 (1) the Texas Transportation Commission if the
687-6 proposal relates to a state highway; or
687-7 (2) the commissioners court of the county if the
687-8 proposal relates to a county road.
687-9 (b) On receipt of the notice, the Texas Transportation
687-10 Commission or the commissioners court may designate the location
687-11 along the right-of-way where the electric utility may construct the
687-12 line. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a (part).)
687-13 Sec. 181.045. STANDARDS FOR CONSTRUCTION, OPERATION, AND
687-14 MAINTENANCE OF LINES. (a) A municipal electric utility shall
687-15 construct, operate, and maintain its lines for the transmission and
687-16 distribution of electric energy along highways and at other places
687-17 in accordance with the national electrical safety code. With
687-18 regard to clearances, an electric utility that is not a municipal
687-19 electric utility shall construct, operate, and maintain its lines
687-20 for the transmission and distribution of electric energy along
687-21 highways and at other places in accordance with the national
687-22 electrical safety code.
687-23 (b) Regardless of Subsection (a), an electric utility shall:
687-24 (1) use single pole construction for a line along a
687-25 highway or county road;
688-1 (2) construct a transmission line that crosses a
688-2 highway or road so that the line is at least 22 feet above the
688-3 surface of the traffic lane; and
688-4 (3) construct a line that is above a railroad track or
688-5 railroad siding so that the line is at least 22 feet above the
688-6 surface of the track or siding.
688-7 (c) Subsection (a) does not apply to a line in a
688-8 municipality to the extent an ordinance or regulation applying in
688-9 the municipality provides differently than the national electrical
688-10 safety code.
688-11 (d) In this section, "national electrical safety code" means
688-12 the National Electrical Safety Code, as published in March 1948 by
688-13 the National Bureau of Standards, Handbook 30, as revised by
688-14 Handbook 81, published by the National Bureau of Standards in
688-15 November 1961. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a (part).)
688-16 Sec. 181.046. RELOCATION OF LINE TO ALLOW ROAD OR DITCH
688-17 IMPROVEMENT. (a) The authority of the Texas Transportation
688-18 Commission under this section is limited to a line on a state
688-19 highway not in a municipality. The authority of the commissioners
688-20 court under this section is limited to a line on a county road not
688-21 in a municipality.
688-22 (b) The Texas Transportation Commission or the commissioners
688-23 court of a county may require an electric utility to relocate a
688-24 line of the utility, at the utility's own expense, to allow the:
688-25 (1) widening of a right-of-way;
689-1 (2) changing of a traffic lane;
689-2 (3) improving of a road bed; or
689-3 (4) improving of a drainage ditch located on a
689-4 right-of-way.
689-5 (c) To impose a requirement under this section, the Texas
689-6 Transportation Commission or the commissioners court, as
689-7 appropriate, must give to the electric utility 30 days' written
689-8 notice of the requirement. The notice must identify the line to be
689-9 relocated and indicate the location on the new right-of-way where
689-10 the electric utility may place the line. (V.A.C.S. Art. 1436a,
689-11 Secs. 1 (part), 1a (part).)
689-12 Sec. 181.047. EFFECT OF MUNICIPAL INCORPORATION ON LINE
689-13 PREVIOUSLY CONSTRUCTED. (a) An electric utility that owns a line
689-14 on a state highway or county road in a city or town that, at the
689-15 time of the construction of the line, is unincorporated but that
689-16 later incorporates as a municipality may continue to exercise in
689-17 the municipality the authority granted by Section 181.042 until the
689-18 10th anniversary of the date of the incorporation.
689-19 (b) After that period, to continue to exercise the authority
689-20 in the municipality the electric utility must have the consent of
689-21 the governing body of the municipality.
689-22 (c) The governing body of the municipality may require the
689-23 electric utility to relocate a pole or line, at the utility's own
689-24 expense, to allow the widening or straightening of a street. To
689-25 impose a requirement under this subsection, the governing body of
690-1 the municipality must give to the electric utility 30 days' notice.
690-2 The notice must indicate the new location for the pole or line
690-3 along the right-of-way of the street.
690-4 (d) This section does not prohibit a municipality from
690-5 imposing a tax or special charge for the use of a street as
690-6 authorized by Subchapter B, Chapter 182, Tax Code. (V.A.C.S.
690-7 Art. 1436a, Secs. 1 (part), 1a (part).)
690-8 (Sections 181.048-181.060 reserved for expansion)
690-9 SUBCHAPTER D. PROVISIONS APPLYING TO TELEGRAPH COMPANIES
690-10 Sec. 181.061. DEFINITION. In this subchapter, "telegraph
690-11 company" includes a person, firm, corporation, or association
690-12 engaged in the business of accepting and transmitting messages to
690-13 and from different locations in this state through use of a
690-14 telegraph. (V.A.C.S. Art. 1428 (part).)
690-15 Sec. 181.062. TELEGRAPH CONNECTIONS. A telegraph company
690-16 engaged in business at the same location or in the same
690-17 municipality as another telegraph company shall provide:
690-18 (1) means through which a message may be transferred
690-19 to the lines of the other telegraph company at common locations and
690-20 transmitted to the message's final destination; and
690-21 (2) facilities to assure the transfer of a message in
690-22 compliance with this section. (V.A.C.S. Art. 1428 (part).)
690-23 Sec. 181.063. EXCEPTIONS. (a) A telegraph company is not
690-24 required to transfer a message to another line if:
690-25 (1) the message originated on the company's line; and
691-1 (2) the company can deliver the message directly to
691-2 its intended recipient on the company's lines.
691-3 (b) A telegraph company is not required to receive a message
691-4 from another's line and transmit the message to its final
691-5 destination if the message originated at a location on the
691-6 company's lines. (V.A.C.S. Art. 1429.)
691-7 Sec. 181.064. HEARING AND DETERMINATION. (a) The governing
691-8 body of a municipality or, for an unincorporated area, the
691-9 commissioners court of the county, shall on its own motion or on
691-10 application of at least 100 residents:
691-11 (1) hear evidence as the governing body or
691-12 commissioners court considers necessary; and
691-13 (2) determine whether a connection between different
691-14 lines or other arrangements for transfer of messages is:
691-15 (A) necessary for public convenience; and
691-16 (B) just to the telegraph companies.
691-17 (b) After conducting a hearing and making the determinations
691-18 required by Subsection (a), the governing body or commissioners
691-19 court shall issue an order that:
691-20 (1) includes the findings of the governing body or
691-21 commissioners court;
691-22 (2) specifies the conditions under which the
691-23 arrangements for transfer of messages will be made; and
691-24 (3) specifies the proportion of expense to be paid by
691-25 the owner or operator of each line. (V.A.C.S. Art. 1430.)
692-1 Sec. 181.065. PENALTY. (a) A telegraph company shall
692-2 comply with an order of a municipality's governing body or a
692-3 commissioners court requiring the company to arrange for transfer
692-4 of messages.
692-5 (b) A telegraph company that fails to comply with an order
692-6 is subject to a penalty of $10 for each day of noncompliance,
692-7 payable to the state. The county or district attorney may bring
692-8 suit to recover the penalty.
692-9 (c) A penalty may not be imposed against a telegraph company
692-10 for noncompliance with an order if:
692-11 (1) the company is prevented from making a connection
692-12 through the fault or omission of another company; and
692-13 (2) the fault or omission causes the company's failure
692-14 to connect. (V.A.C.S. Art. 1431.)
692-15 Sec. 181.066. APPEAL. (a) A telegraph company ordered to
692-16 transfer messages under this subchapter has the right to appeal to
692-17 the court having jurisdiction over the matter.
692-18 (b) If the court finds that the telegraph company had
692-19 reasonable grounds for bringing the appeal, the court shall suspend
692-20 any penalty imposed under this subchapter until the appeal is
692-21 finally determined. (V.A.C.S. Art. 1432.)
692-22 (Sections 181.067-181.080 reserved for expansion)
692-23 SUBCHAPTER E. PROVISIONS APPLYING TO TELEPHONE AND
692-24 TELEGRAPH CORPORATIONS
692-25 Sec. 181.081. DEFINITIONS. In this subchapter:
693-1 (1) "Facility" means a pole, pier, abutment, wire, or
693-2 other fixture related to a telephone or magnetic telegraph line.
693-3 (2) "Telegraph corporation" means a corporation
693-4 created to construct and maintain magnetic telegraph lines.
693-5 (3) "Telephone corporation" means a corporation
693-6 created to construct and maintain telephone lines. (V.A.C.S. Arts.
693-7 1416 (part), 1417 (part), 1422 (part).)
693-8 Sec. 181.082. AUTHORITY TO INSTALL FACILITY IN RELATION TO
693-9 PUBLIC PROPERTY. A telephone or telegraph corporation may install
693-10 a facility of the corporation along, on, or across a public road, a
693-11 public street, or public water in a manner that does not
693-12 inconvenience the public in the use of the road, street, or water.
693-13 (V.A.C.S. Art. 1416 (part).)
693-14 Sec. 181.083. AUTHORITY TO CONSTRUCT LINE ON PRIVATE
693-15 PROPERTY. A telephone or telegraph corporation may enter land in
693-16 which a private person or a corporation owns a fee or lesser estate
693-17 to:
693-18 (1) make a preliminary survey or examination to
693-19 prepare for the construction of a telephone or telegraph line;
693-20 (2) change the location of a part of a telephone or
693-21 telegraph line as necessary; or
693-22 (3) construct or repair a telephone or telegraph line.
693-23 (V.A.C.S. Art. 1417 (part).)
693-24 Sec. 181.084. APPROPRIATION OR CONDEMNATION OF LAND. A
693-25 telephone or telegraph corporation has the right to:
694-1 (1) appropriate as much land owned by a private person
694-2 or a corporation as is necessary to construct a facility; or
694-3 (2) condemn land to acquire a right-of-way or other
694-4 interest in the land for the use of the telephone or telegraph
694-5 corporation. (V.A.C.S. Art. 1417 (part).)
694-6 Sec. 181.085. PROHIBITION ON LAND CONTRACT EXCLUDING ANOTHER
694-7 TELEGRAPH UTILITY. A telegraph corporation may not contract with
694-8 an owner of land for the right to construct and maintain a
694-9 telegraph line over the land to the exclusion of the line of
694-10 another telegraph corporation. (V.A.C.S. Art. 1418.)
694-11 Sec. 181.086. LINES IN OR OUTSIDE STATE. A telegraph
694-12 corporation may construct, own, use, or maintain a telegraph line
694-13 in or outside this state. (V.A.C.S. Art. 1419.)
694-14 Sec. 181.087. USE OF ANOTHER'S TELEGRAPH LINE. (a) A
694-15 telegraph corporation may:
694-16 (1) lease the telegraph line of another telegraph
694-17 corporation;
694-18 (2) as the result of a lease or purchase, attach to
694-19 its telegraph line the telegraph line of another telegraph
694-20 corporation; or
694-21 (3) join with any other corporation or association
694-22 to construct, lease, own, use, or maintain a telegraph
694-23 line.
694-24 (b) An action under Subsection (a)(3) must be taken in
694-25 accordance with an agreement made by the directors or managers of
695-1 the telegraph corporations. (V.A.C.S. Art. 1420.)
695-2 Sec. 181.088. CONSOLIDATION OF UTILITIES. (a) A telephone
695-3 or telegraph corporation organized under the law of this state may
695-4 consolidate or otherwise unite with one or more other companies
695-5 organized under the law of a state or the United States if the
695-6 union or consolidation:
695-7 (1) is approved, at a regular meeting of the
695-8 corporation's stockholders, by a vote of persons holding a majority
695-9 of the shares of stock of the corporation; and
695-10 (2) is done with the consent of each other company.
695-11 (b) The company resulting from the consolidation or other
695-12 union may hold, use, and enjoy the rights and privileges given by
695-13 the law of this state to, and has the same liabilities of, a
695-14 company separately organized under the law of this state relating
695-15 to corporations. (V.A.C.S. Art. 1421.)
695-16 Sec. 181.089. MUNICIPAL REGULATION. (a) The appropriate
695-17 authorities of a municipality through which a line of a telephone
695-18 or telegraph corporation is to pass may adopt, by ordinance or
695-19 another method, regulations governing the corporation that specify
695-20 the:
695-21 (1) location of the facilities of the corporation;
695-22 (2) kind of posts that must be used by the
695-23 corporation; or
695-24 (3) height at which the wires of the corporation must
695-25 be placed.
696-1 (b) After the construction of the telephone or telegraph
696-2 line, the appropriate authorities of the municipality, after giving
696-3 the corporation or its agents an opportunity to be heard, may
696-4 direct any change in:
696-5 (1) the construction or location of the facilities; or
696-6 (2) the height at which the corporation must locate
696-7 the wires. (V.A.C.S. Art. 1422 (part).)
696-8 (Sections 181.090-181.100 reserved for expansion)
696-9 SUBCHAPTER F. PROVISIONS APPLYING TO COMMUNITY ANTENNA AND
696-10 CABLE TELEVISION UTILITIES
696-11 Sec. 181.101. DEFINITIONS. In this subchapter:
696-12 (1) "Equipment" means a line, wire, cable, pipe,
696-13 conduit, conductor, pole, or other facility for the transmission of
696-14 community antenna or cable television service.
696-15 (2) "Person" means an individual, firm, or
696-16 corporation. (V.A.C.S. Art. 9021, Sec. 1.)
696-17 Sec. 181.102. AUTHORITY TO INSTALL AND MAINTAIN EQUIPMENT.
696-18 (a) In an unincorporated area, a person in the business of
696-19 providing community antenna or cable television service to the
696-20 public may install and maintain equipment through, under, along,
696-21 across, or over a utility easement, a public road, an alley, or a
696-22 body of public water in accordance with this subchapter.
696-23 (b) The installation and maintenance of the equipment must
696-24 be done in a way that does not unduly inconvenience the public
696-25 using the affected property. (V.A.C.S. Art. 9021, Secs. 2, 3.)
697-1 Sec. 181.103. NOTICE TO STATE OR COUNTY. (a) A person
697-2 proposing to install equipment under Section 181.102 in the
697-3 right-of-way of a state highway or a county road shall give notice
697-4 of the proposal to:
697-5 (1) the Texas Department of Transportation if the
697-6 proposal relates to a state highway; or
697-7 (2) the commissioners court of the county if the
697-8 proposal relates to a county road.
697-9 (b) On receipt of the notice, the Texas Department of
697-10 Transportation or commissioners court may designate the location in
697-11 the right-of-way where the person may install the equipment, if the
697-12 equipment is not to be installed on an existing facility.
697-13 (V.A.C.S. Art. 9021, Secs. 4(a), (b).)
697-14 Sec. 181.104. RELOCATION OF EQUIPMENT TO ALLOW CHANGE TO
697-15 TRAFFIC LANE. (a) The authority of the Texas Department of
697-16 Transportation under this section is limited to equipment installed
697-17 in connection with a state highway. The authority of the
697-18 commissioners court under this section is limited to equipment
697-19 installed in connection with a county road.
697-20 (b) The Texas Department of Transportation or the
697-21 commissioners court of a county may require a person who has
697-22 installed equipment in the right-of-way of a state highway or
697-23 county road to relocate the person's equipment to allow the
697-24 widening or other changing of a traffic lane.
697-25 (c) To impose a requirement under this section, the Texas
698-1 Department of Transportation or the commissioners court, as
698-2 appropriate, must give to the person written notice of the
698-3 requirement not later than the 45th day before the date the
698-4 relocation is to be made. The notice must identify the equipment
698-5 to be relocated and indicate the location in the right-of-way where
698-6 the person may reinstall the equipment.
698-7 (d) The person shall pay the cost of repairing a state
698-8 highway or county road damaged by the relocation. (V.A.C.S.
698-9 Art. 9021, Sec. 4(c).)
698-10 (Sections 181.105-181.900 reserved for expansion)
698-11 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
698-12 Sec. 181.901. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
698-13 PROTECT UTILITY. (a) The governing body of a general-law
698-14 municipality may adopt an ordinance that applies to a utility using
698-15 the streets and public grounds of the municipality and that
698-16 protects the utility:
698-17 (1) in the free enjoyment of the utility's rights and
698-18 privileges; and
698-19 (2) from interference with the utility's property and
698-20 franchises.
698-21 (b) In this section, "utility" means a person, company, or
698-22 corporation engaged in furnishing water, gas, telephone, light,
698-23 power, or sewage service to the public. (V.A.C.S. Art. 1120
698-24 (part); New.)
698-25 Sec. 181.902. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
699-1 PREVENT USE OR WASTE OF UTILITY COMMODITY OR SERVICE. (a) The
699-2 governing body of a general-law municipality may adopt an ordinance
699-3 that prevents the free or unauthorized use or the waste of a
699-4 commodity or service furnished by a utility that uses the streets
699-5 and public grounds of the municipality.
699-6 (b) In this section, "utility" has the meaning assigned to
699-7 the term by Section 181.901. (V.A.C.S. Art. 1120 (part); New.)
699-8 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS
699-9 SUBCHAPTER A. PAYMENT DATE OF UTILITY BILL
699-10 FOR ELDERLY INDIVIDUAL
699-11 Sec. 182.001. DEFINITIONS
699-12 Sec. 182.002. DELAY OF BILL PAYMENT DATE FOR ELDERLY
699-13 INDIVIDUAL
699-14 Sec. 182.003. REQUEST FOR DELAY
699-15 Sec. 182.004. PROOF OF AGE
699-16 Sec. 182.005. CERTAIN UTILITIES NOT AFFECTED
699-17 (Sections 182.006-182.050 reserved for expansion)
699-18 SUBCHAPTER B. CONFIDENTIALITY OF CUSTOMER INFORMATION
699-19 Sec. 182.051. DEFINITIONS
699-20 Sec. 182.052. CONFIDENTIALITY OF PERSONAL INFORMATION
699-21 Sec. 182.053. FEE
699-22 Sec. 182.054. EXCEPTIONS
699-23 Sec. 182.055. NO CIVIL LIABILITY FROM VIOLATION
699-24 (Sections 182.056-182.100 reserved for expansion)
700-1 SUBCHAPTER C. TESTING OF METERS
700-2 Sec. 182.101. DEFINITIONS
700-3 Sec. 182.102. TESTING OF METER
700-4 Sec. 182.103. UTILITY REPRESENTATIVE; NOTICE
700-5 Sec. 182.104. OFFENSE
700-6 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS
700-7 SUBCHAPTER A. PAYMENT DATE OF UTILITY BILL
700-8 FOR ELDERLY INDIVIDUAL
700-9 Sec. 182.001. DEFINITIONS. In this subchapter:
700-10 (1) "Elderly individual" means an individual who is 60
700-11 years of age or older.
700-12 (2) "Utility" means an electric, gas, water, or
700-13 telephone utility operated by a public or private entity.
700-14 (V.A.C.S. Art. 1446c-2, Sec. 1.)
700-15 Sec. 182.002. DELAY OF BILL PAYMENT DATE FOR ELDERLY
700-16 INDIVIDUAL. (a) On request by an elderly individual, a utility
700-17 shall delay without penalty the payment date of a bill for
700-18 providing utility service to that individual until the 25th day
700-19 after the date the bill is issued.
700-20 (b) This subchapter applies only to an elderly individual
700-21 who:
700-22 (1) is a residential customer; and
700-23 (2) occupies the entire premises for which a delay is
700-24 requested. (V.A.C.S. Art. 1446c-2, Secs. 2(a), (d).)
700-25 Sec. 182.003. REQUEST FOR DELAY. An elderly individual may
701-1 request that the utility implement the delay under Section 182.002
701-2 for:
701-3 (1) the most recent utility bill; or
701-4 (2) the most recent utility bill and each subsequent
701-5 utility bill. (V.A.C.S. Art. 1446c-2, Sec. 2(b).)
701-6 Sec. 182.004. PROOF OF AGE. A utility may require an
701-7 individual requesting a delay under this subchapter to present
701-8 reasonable proof that the individual is 60 years of age or older.
701-9 (V.A.C.S. Art. 1446c-2, Sec. 2(c).)
701-10 Sec. 182.005. CERTAIN UTILITIES NOT AFFECTED. This
701-11 subchapter does not apply to a utility that:
701-12 (1) does not assess a late payment charge on a
701-13 residential customer;
701-14 (2) does not suspend service before the 26th day after
701-15 the date of the bill for which collection action is taken; and
701-16 (3) is regulated under Title 2. (V.A.C.S.
701-17 Art. 1446c-2, Sec. 2(e).)
701-18 (Sections 182.006-182.050 reserved for expansion)
701-19 SUBCHAPTER B. CONFIDENTIALITY OF CUSTOMER INFORMATION
701-20 Sec. 182.051. DEFINITIONS. In this subchapter:
701-21 (1) "Consumer reporting agency" means a person who,
701-22 for a monetary fee or payment of dues, or on a cooperative
701-23 nonprofit basis, regularly engages in the practice of assembling or
701-24 evaluating consumer credit information or other information
701-25 relating to consumers in order to furnish a consumer report to a
702-1 third party.
702-2 (2) "Governmental body" has the meaning assigned by
702-3 Section 552.003, Government Code.
702-4 (3) "Government-operated utility" means a governmental
702-5 body or an entity governed by a governmental body that, for
702-6 compensation, provides water, wastewater, sewer, gas, garbage,
702-7 electricity, or drainage service.
702-8 (4) "Personal information" means an individual's
702-9 address, telephone number, or social security number. (V.A.C.S.
702-10 Art. 1446h, Sec. 1.)
702-11 Sec. 182.052. CONFIDENTIALITY OF PERSONAL INFORMATION.
702-12 (a) Except as provided by Section 182.054, a government-operated
702-13 utility may not disclose personal information in a customer's
702-14 account record if the customer requests that the
702-15 government-operated utility keep the information confidential.
702-16 (b) A customer may request confidentiality by delivering to
702-17 the government-operated utility an appropriately marked form
702-18 provided under Subsection (c)(3) or any other written request for
702-19 confidentiality.
702-20 (c) A government-operated utility shall include with a bill
702-21 sent to each customer:
702-22 (1) a notice of the customer's right to request
702-23 confidentiality under this subchapter;
702-24 (2) a statement of the amount of any fee applicable to
702-25 the request; and
703-1 (3) a form by which the customer may request
703-2 confidentiality by marking an appropriate box on the form and
703-3 returning it to the government-operated utility.
703-4 (d) A customer may rescind a request for confidentiality by
703-5 providing the government-operated utility written permission to
703-6 disclose personal information. (V.A.C.S. Art. 1446h, Secs. 2, 4.)
703-7 Sec. 182.053. FEE. A government-operated utility may charge
703-8 each customer who requests confidentiality under this subchapter a
703-9 fee not to exceed the administrative cost of complying with the
703-10 request of confidentiality. (V.A.C.S. Art. 1446h, Sec. 3.)
703-11 Sec. 182.054. EXCEPTIONS. This subchapter does not prohibit
703-12 a government-operated utility from disclosing personal information
703-13 in a customer's account record to:
703-14 (1) an official or employee of the state, a political
703-15 subdivision of the state, or the United States acting in an
703-16 official capacity;
703-17 (2) an employee of a utility acting in connection with
703-18 the employee's duties;
703-19 (3) a consumer reporting agency;
703-20 (4) a contractor or subcontractor approved by and
703-21 providing services to the utility, the state, a political
703-22 subdivision of the state, or the United States;
703-23 (5) a person for whom the customer has contractually
703-24 waived confidentiality for personal information; or
703-25 (6) another entity that provides water, wastewater,
704-1 sewer, gas, garbage, electricity, or drainage service for
704-2 compensation. (V.A.C.S. Art. 1446h, Sec. 5.)
704-3 Sec. 182.055. NO CIVIL LIABILITY FROM VIOLATION. A
704-4 government-operated utility or an officer or employee of a
704-5 government-operated utility is immune from civil liability for a
704-6 violation of this subchapter. (V.A.C.S. Art. 1446h, Sec. 6.)
704-7 (Sections 182.056-182.100 reserved for expansion)
704-8 SUBCHAPTER C. TESTING OF METERS
704-9 Sec. 182.101. DEFINITIONS. In this subchapter:
704-10 (1) "Consumer" means a person who obtains electricity
704-11 or gas from a utility.
704-12 (2) "Gas" includes natural gas and artificial gas.
704-13 (3) "Meter" means an instrument or machine used to
704-14 measure and record the use of electricity or gas.
704-15 (4) "Test" includes, in reference to the testing of a
704-16 meter and as necessary to the reading and examination of a meter,
704-17 the authority to break the seal.
704-18 (5) "Utility" means a person, other than a
704-19 governmental entity, who provides for compensation electricity or
704-20 gas for consumption in a municipality. (V.A.C.S. Art. 1124a, Secs.
704-21 1 (part), 2, 3; New.)
704-22 Sec. 182.102. TESTING OF METER. (a) On complaint by a
704-23 consumer to the governing body of a municipality, an agent or
704-24 employee of the municipality shall examine, read, and test a meter
704-25 that is installed by the utility furnishing the electricity or gas.
705-1 (b) On demand by a consumer to the governing body of a
705-2 municipality, the governing body shall provide the consumer with a
705-3 detailed report stating the results of the examination, reading,
705-4 and test, including:
705-5 (1) whether the meter is in good condition;
705-6 (2) whether the meter functions properly; and
705-7 (3) the amount of electricity or gas used during a
705-8 period designated by the consumer in the demand, not to exceed one
705-9 year. (V.A.C.S. Art. 1124a, Secs. 1 (part), 4.)
705-10 Sec. 182.103. UTILITY REPRESENTATIVE; NOTICE. A utility
705-11 representative may be present during a meter test. The
705-12 municipality shall provide notice to a utility regarding the
705-13 testing of a meter not later than the third day before the date the
705-14 meter test is conducted. (V.A.C.S. Art. 1124a, Sec. 1 (part).)
705-15 Sec. 182.104. OFFENSE. (a) A utility or other person
705-16 commits an offense if the utility or other person fails or refuses
705-17 to allow an agent or employee of a municipality to examine a meter.
705-18 (b) An offense under this section is a misdemeanor
705-19 punishable by a fine not to exceed $200.
705-20 (c) Each day a utility or other person refuses to allow an
705-21 agent or employee of a municipality to examine a meter is a
705-22 separate offense. (V.A.C.S. Art. 1124a, Sec. 5.)
705-23 CHAPTER 183. UTILITY DEPOSITS
705-24 Sec. 183.001. DEFINITIONS
705-25 Sec. 183.002. INTEREST ON DEPOSIT
706-1 Sec. 183.003. RATE OF INTEREST
706-2 Sec. 183.004. INTEREST PAYMENT TO DEPOSITOR
706-3 Sec. 183.005. RETURN OF DEPOSIT
706-4 Sec. 183.006. CRIMINAL PENALTY
706-5 CHAPTER 183. UTILITY DEPOSITS
706-6 Sec. 183.001. DEFINITIONS. In this chapter:
706-7 (1) "Commission" means the Public Utility Commission
706-8 of Texas.
706-9 (2) "Utility" means a person, firm, company,
706-10 corporation, receiver, or trustee who furnishes water, electric,
706-11 gas, or telephone service. (V.A.C.S. Arts. 1440 (part), 1440a
706-12 (part); New.)
706-13 Sec. 183.002. INTEREST ON DEPOSIT. A utility that requires
706-14 the user of a service to pay a money deposit as a condition to
706-15 furnishing the service shall pay interest on the deposit from the
706-16 time the deposit is made. (V.A.C.S. Arts. 1440 (part), 1440a
706-17 (part).)
706-18 Sec. 183.003. RATE OF INTEREST. (a) The commission each
706-19 December 1, or the next regular workday if December 1 is a
706-20 Saturday, Sunday, or legal holiday, shall set the annual interest
706-21 rate for the next calendar year on deposits governed by this
706-22 chapter.
706-23 (b) The commission may not set the rate at an amount that
706-24 exceeds the lesser of:
706-25 (1) 85 percent of the average rate paid over the
707-1 previous 12-month period on United States treasury bills with a
707-2 12-month maturity date; or
707-3 (2) 12 percent.
707-4 (c) The commission may not set the rate at an amount that is
707-5 less than six percent. (V.A.C.S. Arts. 1440 (part), 1440a (part).)
707-6 Sec. 183.004. INTEREST PAYMENT TO DEPOSITOR. A utility
707-7 shall pay interest on the deposit to the depositor or the
707-8 depositor's heirs or assigns annually on demand or sooner if the
707-9 service is discontinued. (V.A.C.S. Arts. 1440 (part), 1440a
707-10 (part).)
707-11 Sec. 183.005. RETURN OF DEPOSIT. (a) When the service is
707-12 discontinued, the utility shall return the deposit and any unpaid
707-13 interest on the deposit to the depositor or the depositor's heirs
707-14 or legal representatives.
707-15 (b) The utility company may deduct from the amount returned
707-16 under Subsection (a) any payments due for the services. (V.A.C.S.
707-17 Arts. 1440 (part), 1440a (part).)
707-18 Sec. 183.006. CRIMINAL PENALTY. (a) A person commits an
707-19 offense if the person violates this chapter.
707-20 (b) An offense under this section is punishable by:
707-21 (1) a fine of not less than $25 and not more than
707-22 $200;
707-23 (2) confinement in jail for not less than six months
707-24 and not more than one year; or
707-25 (3) both the fine and confinement. (V.A.C.S.
708-1 Art. 1440a (part).)
708-2 CHAPTER 184. ELECTRIC AND WATER METERING
708-3 SUBCHAPTER A. GENERAL PROVISIONS
708-4 Sec. 184.001. DEFINITION
708-5 (Sections 184.002-184.010 reserved for expansion)
708-6 SUBCHAPTER B. METERING IN APARTMENTS, CONDOMINIUMS,
708-7 AND MOBILE HOME PARKS
708-8 Sec. 184.011. DEFINITIONS
708-9 Sec. 184.012. NEW CONSTRUCTION OR CONVERSION
708-10 Sec. 184.013. SUBMETERING
708-11 Sec. 184.014. RULES
708-12 (Sections 184.015-184.030 reserved for expansion)
708-13 SUBCHAPTER C. METERING IN RECREATIONAL VEHICLE PARKS
708-14 Sec. 184.031. DEFINITIONS
708-15 Sec. 184.032. METERED SALE UNDER COMMISSION RULES
708-16 Sec. 184.033. METERED SALE UNDER THIS CHAPTER
708-17 Sec. 184.034. COMPUTATION OF CHARGES
708-18 Sec. 184.035. REFUND OF SURCHARGES
708-19 (Sections 184.036-184.050 reserved for expansion)
708-20 SUBCHAPTER D. CENTRAL SYSTEM UTILITIES
708-21 Sec. 184.051. DEFINITIONS
708-22 Sec. 184.052. RULES
708-23 (Sections 184.053-184.070 reserved for expansion)
708-24 SUBCHAPTER E. LIABILITY FOR RULE VIOLATION
708-25 Sec. 184.071. LIABILITY
709-1 CHAPTER 184. ELECTRIC AND WATER METERING
709-2 SUBCHAPTER A. GENERAL PROVISIONS
709-3 Sec. 184.001. DEFINITION. In this chapter, "commission"
709-4 means the Public Utility Commission of Texas. (New.)
709-5 (Sections 184.002-184.010 reserved for expansion)
709-6 SUBCHAPTER B. METERING IN APARTMENTS, CONDOMINIUMS,
709-7 AND MOBILE HOME PARKS
709-8 Sec. 184.011. DEFINITIONS. In this subchapter:
709-9 (1) "Apartment house" means one or more buildings
709-10 containing more than five dwelling units each of which is rented
709-11 primarily for nontransient use with rent paid at intervals of one
709-12 week or longer. The term includes a rented or owner-occupied
709-13 residential condominium.
709-14 (2) "Dwelling unit" means:
709-15 (A) one or more rooms that are suitable for
709-16 occupancy as a residence and that contain kitchen and bathroom
709-17 facilities; or
709-18 (B) a mobile home in a mobile home park.
709-19 (V.A.C.S. Art. 1446d, Sec. 1.)
709-20 Sec. 184.012. NEW CONSTRUCTION OR CONVERSION. (a) A
709-21 political subdivision may not authorize the construction or
709-22 occupancy of a new apartment house, including the conversion of
709-23 property to a condominium, unless the construction plan provides
709-24 for the measurement of the quantity of electricity consumed by the
709-25 occupants of each dwelling unit of the apartment house, either by
710-1 individual metering by the utility company or by submetering by the
710-2 owner.
710-3 (b) This section does not prohibit a political subdivision
710-4 from issuing a permit to a nonprofit organization for construction
710-5 of a new apartment house for occupancy by low-income elderly
710-6 tenants if the nonprofit organization establishes, by submitting
710-7 engineering and cost data and a sworn statement, that all cost
710-8 savings will be passed on to the low-income elderly tenants.
710-9 (V.A.C.S. Art. 1446d, Secs. 2(a), (b).)
710-10 Sec. 184.013. SUBMETERING. (a) The owner of an apartment
710-11 house or mobile home park may submeter each dwelling unit in the
710-12 apartment house or mobile home park to measure the quantity of
710-13 electricity consumed by the occupants of the dwelling unit.
710-14 (b) Electric submetering equipment is subject to:
710-15 (1) the same rules adopted by the commission for
710-16 accuracy, testing, and recordkeeping of meters installed by
710-17 electric utilities; and
710-18 (2) the meter testing requirements of Subchapter C,
710-19 Chapter 38.
710-20 (c) If not more than 90 days before the date an owner,
710-21 operator, or manager of an apartment house installs individual
710-22 meters or submeters in the apartment house the owner, operator, or
710-23 manager increases rental rates and the increase in rental rates is
710-24 attributable to the increased cost of utilities, the owner,
710-25 operator, or manager, on installation of the meters or submeters,
711-1 shall:
711-2 (1) immediately reduce the rental rate by the amount
711-3 of the increase attributable to the increased cost of utilities;
711-4 and
711-5 (2) refund the amount of the increased rent:
711-6 (A) collected in the 90-day period preceding the
711-7 installation of the meters or submeters; and
711-8 (B) attributable to the cost of increased
711-9 utilities. (V.A.C.S. Art. 1446d, Secs. 2(c), 3 (part), 4.)
711-10 Sec. 184.014. RULES. (a) The commission shall adopt rules
711-11 under which an owner, operator, or manager of an apartment house or
711-12 mobile home park for which electricity is not individually metered
711-13 may install submetering equipment to allocate fairly the cost of
711-14 the electrical consumption of each dwelling unit in the apartment
711-15 house or mobile home park.
711-16 (b) In addition to other appropriate safeguards for a tenant
711-17 of an apartment house or mobile home park, a rule adopted under
711-18 Subsection (a) must provide that:
711-19 (1) the apartment house owner or a mobile home park
711-20 owner may not charge a tenant more than the cost per kilowatt hour
711-21 charged by the utility to the owner; and
711-22 (2) the apartment house owner shall maintain adequate
711-23 records relating to submetering and make those records available
711-24 for inspection by the tenant during reasonable business hours.
711-25 (c) A rule adopted under this section has the same effect as
712-1 a rule adopted under Title 2, and a utility company and the owner,
712-2 operator, or manager of an apartment house subject to this
712-3 subchapter is subject to enforcement under Sections 15.021, 15.022,
712-4 15.028, 15.029, 15.030, 15.031, 15.032, and 15.033. (V.A.C.S.
712-5 Art. 1446d, Sec. 3 (part).)
712-6 (Sections 184.015-184.030 reserved for expansion)
712-7 SUBCHAPTER C. METERING IN RECREATIONAL VEHICLE PARKS
712-8 Sec. 184.031. DEFINITIONS. In this subchapter:
712-9 (1) "Recreational vehicle" has the meaning assigned by
712-10 Section 522.004(b), Transportation Code.
712-11 (2) "Supplying utility" means the electric utility
712-12 from which a recreational vehicle park owner purchases electricity
712-13 consumed at the recreational vehicle park. (V.A.C.S. Art. 1446d-2,
712-14 Sec. 1.)
712-15 Sec. 184.032. METERED SALE UNDER COMMISSION RULES. The
712-16 metered sale of electricity by a recreational vehicle park owner in
712-17 compliance with submetering rules adopted by the commission under
712-18 Title 2 does not constitute the provision of electric service for
712-19 compensation. (V.A.C.S. Art. 1446d-2, Sec. 2 (part).)
712-20 Sec. 184.033. METERED SALE UNDER THIS CHAPTER.
712-21 Notwithstanding any provision of Title 2, the metered sale of
712-22 electricity by a recreational vehicle park owner does not
712-23 constitute the provision of electric service for compensation if:
712-24 (1) the electricity is consumed in a recreational
712-25 vehicle that is located in a recreational vehicle park;
713-1 (2) the owner can show that the owner does not
713-2 annually recover from recreational vehicle occupants through
713-3 metered charges more than the supplying utility charges the owner
713-4 for electricity that is submetered, taking into account fuel
713-5 refunds;
713-6 (3) the owner establishes a fiscal year for the
713-7 purposes of this subchapter and maintains for at least three years
713-8 records of:
713-9 (A) bills received from the supplying utility;
713-10 (B) charges made to recreational vehicle
713-11 occupants; and
713-12 (C) consumption records for each fiscal year;
713-13 (4) the owner charges for electricity using a fixed
713-14 rate per kilowatt hour for each fiscal year computed at the
713-15 beginning of the fiscal year in the manner provided by Section
713-16 184.034; and
713-17 (5) the owner complies with the refund requirements of
713-18 Section 184.035. (V.A.C.S. Art. 1446d-2, Sec. 2 (part).)
713-19 Sec. 184.034. COMPUTATION OF CHARGES. (a) For the purposes
713-20 of computing the charge for electricity under Section 184.033(4),
713-21 the recreational vehicle park owner shall divide the amount charged
713-22 the owner by the supplying utility for the preceding fiscal year by
713-23 the total number of kilowatt hours consumed by occupants visiting
713-24 the park in the preceding fiscal year and round the quotient to the
713-25 nearest cent.
714-1 (b) If since or during the preceding fiscal year the
714-2 supplying utility increases its rates, the owner may recompute the
714-3 preceding fiscal year's charges by the utility using the current
714-4 rates charged by the utility.
714-5 (c) If since or during the preceding fiscal year the
714-6 supplying utility decreases its rates, the owner shall recompute
714-7 the preceding fiscal year's charges by the utility using the
714-8 current rates charged by the utility.
714-9 (d) An owner may not:
714-10 (1) include a charge by the supplying utility for
714-11 electricity used in a common area or office of the recreational
714-12 vehicle park in computing the amounts under Subsection (b) or (c);
714-13 or
714-14 (2) recover that charge through a metered charge to a
714-15 recreational vehicle occupant. (V.A.C.S. Art. 1446d-2, Sec. 2
714-16 (part).)
714-17 Sec. 184.035. REFUND OF SURCHARGES. A recreational vehicle
714-18 park owner who determines at the end of a fiscal year that the
714-19 owner has collected more than the amount charged by the supplying
714-20 utility shall refund the excess amount to occupants visiting the
714-21 park in the succeeding fiscal year. (V.A.C.S. Art. 1446d-2, Sec. 2
714-22 (part).)
714-23 (Sections 184.036-184.050 reserved for expansion)
714-24 SUBCHAPTER D. CENTRAL SYSTEM UTILITIES
714-25 Sec. 184.051. DEFINITIONS. In this subchapter:
715-1 (1) "Apartment house" means one or more buildings
715-2 containing two or more dwelling units rented primarily for
715-3 nontransient use with rent paid at intervals of one week or longer.
715-4 (2) "Apartment house owner" means the legal
715-5 titleholder of an apartment house or an individual, firm, or
715-6 corporation purporting to be the landlord of tenants in the
715-7 apartment house.
715-8 (3) "Central system utilities" means electricity and
715-9 water consumed by and wastewater services related to a central air
715-10 conditioning system, central heating system, central hot water
715-11 system, or central chilled water system in an apartment house. The
715-12 term does not include utilities directly consumed in a dwelling
715-13 unit.
715-14 (4) "Customer" means an individual, firm, or
715-15 corporation in whose name a master meter is connected by a utility.
715-16 (5) "Dwelling unit" means one or more rooms that are
715-17 suitable for occupancy as a residence and that contain kitchen and
715-18 bathroom facilities.
715-19 (6) "Nonsubmetered master metered utility service"
715-20 means an electric utility service that is master metered for an
715-21 apartment house but is not submetered.
715-22 (7) "Tenant" means a person who is entitled to occupy
715-23 a dwelling unit in an apartment house to the exclusion of others
715-24 and who is obligated to pay for the occupancy under a written or
715-25 oral rental agreement.
716-1 (8) "Utility" means a public, private, or member-owned
716-2 utility that provides electricity, water, or wastewater service to
716-3 an apartment house served by a master meter. (V.A.C.S. Art. 1446f,
716-4 Sec. 1.)
716-5 Sec. 184.052. RULES. (a) The commission shall adopt rules
716-6 governing billing systems or methods used by an apartment house
716-7 owner to prorate or allocate among tenants central system utility
716-8 costs or nonsubmetered master metered utility service costs.
716-9 (b) In addition to other appropriate safeguards for a tenant
716-10 of an apartment house, a rule adopted under this section must
716-11 require that:
716-12 (1) a rental agreement contain:
716-13 (A) a clear written description of the method of
716-14 computing the allocation of central system utilities or
716-15 nonsubmetered master metered utilities for the apartment house; and
716-16 (B) a statement of the average apartment unit
716-17 monthly bill for all apartment units for any allocation of central
716-18 system utilities' costs or nonsubmetered master metered utility
716-19 service costs for the previous calendar year; and
716-20 (2) the apartment house owner:
716-21 (A) not impose a charge on a tenant in excess of
716-22 the actual charge imposed on the owner for utility consumption by
716-23 the apartment house; and
716-24 (B) maintain adequate records, including utility
716-25 bills and records concerning the central system utility or
717-1 nonsubmetered master metered utility service consumption of the
717-2 apartment house, the charges assessed by the utility, and the
717-3 allocation of central system utilities' costs or nonsubmetered
717-4 master metered utility service costs to the tenants and make the
717-5 records available for inspection by the tenants during normal
717-6 business hours.
717-7 (c) A rule adopted under this section has the same effect as
717-8 a rule adopted under Title 2, and an owner, operator, or manager of
717-9 an apartment house subject to this subchapter is subject to
717-10 enforcement under Sections 15.021, 15.022, 15.028, 15.029, 15.030,
717-11 15.031, 15.032, and 15.033. (V.A.C.S. Art. 1446f, Sec. 2.)
717-12 (Sections 184.053-184.070 reserved for expansion)
717-13 SUBCHAPTER E. LIABILITY FOR RULE VIOLATION
717-14 Sec. 184.071. LIABILITY. (a) A landlord who violates a
717-15 commission rule relating to submetering of electric utilities
717-16 consumed exclusively in a tenant's dwelling unit or a rule relating
717-17 to the allocation of central system utility costs or nonsubmetered
717-18 master metered electric utility costs is liable to the tenant for:
717-19 (1) three times the amount of any overcharge;
717-20 (2) a civil penalty equal to one month's rent;
717-21 (3) reasonable attorney's fees; and
717-22 (4) court costs.
717-23 (b) A landlord is not liable for the civil penalty provided
717-24 by Subsection (a)(2) if the landlord proves that the landlord's
717-25 violation of the rule was an unintentional mistake made in good
718-1 faith. (V.A.C.S. Art. 1446g.)
718-2 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES
718-3 Sec. 185.001. DEFINITIONS
718-4 Sec. 185.002. COMPLIANCE
718-5 Sec. 185.003. ADOPTION OF STANDARDS
718-6 Sec. 185.004. USE OF NATIONAL STANDARDS
718-7 Sec. 185.005. REVIEW OF STANDARDS
718-8 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES
718-9 Sec. 185.001. DEFINITIONS. In this chapter:
718-10 (1) "Commission" means the Public Utility Commission
718-11 of Texas.
718-12 (2) "Solar energy device" means a solar energy
718-13 collector or solar energy system that provides for the collection
718-14 of solar energy or the subsequent use of that energy as thermal,
718-15 mechanical, or electrical energy. (V.A.C.S. Art. 1446c-1, Sec. 1.)
718-16 Sec. 185.002. COMPLIANCE. A person who rates, labels, or
718-17 certifies the performance of a solar energy device in this state
718-18 shall comply with the standards adopted by the commission under
718-19 this chapter. (V.A.C.S. Art. 1446c-1, Sec. 5.)
718-20 Sec. 185.003. ADOPTION OF STANDARDS. (a) The commission
718-21 shall study and adopt standards for rating solar energy devices.
718-22 The standards shall be used in performance labeling and
718-23 certification of solar energy devices in this state.
718-24 (b) The commission shall examine rating standards and
718-25 certification programs used by other states and by industry in
719-1 adopting standards under this section.
719-2 (c) The commission shall adopt the standards that the
719-3 commission finds are the most widely used unless the commission
719-4 finds that those standards are not suitable for use in this state.
719-5 If the commission finds that a widely used standard is not
719-6 suitable, the commission may amend the standard or adopt a standard
719-7 that the commission finds suitable. (V.A.C.S. Art. 1446c-1, Sec.
719-8 2.)
719-9 Sec. 185.004. USE OF NATIONAL STANDARDS. If national
719-10 standards for rating and certifying solar energy devices are
719-11 developed by a federal agency in conjunction with the states and
719-12 industry, the commission shall adopt those national standards as
719-13 the standards for use in this state. (V.A.C.S. Art. 1446c-1, Sec.
719-14 4.)
719-15 Sec. 185.005. REVIEW OF STANDARDS. The commission shall
719-16 periodically review the standards adopted under this chapter and
719-17 shall amend those standards as necessary to ensure that the
719-18 standards are:
719-19 (1) appropriate in view of current technology; and
719-20 (2) the same as or similar to the standards widely
719-21 used by other states and by industry. (V.A.C.S. Art. 1446c-1, Sec.
719-22 3.)
720-1 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY
720-2 AND INTEGRITY OF UTILITY SERVICE
720-3 SUBCHAPTER A. CONTINUITY OF UTILITY SERVICE
720-4 Sec. 186.001. DEFINITION
720-5 Sec. 186.002. POLICY
720-6 Sec. 186.003. ENFORCEMENT BY EXECUTIVE DEPARTMENT
720-7 Sec. 186.004. UNLAWFUL PICKETING, THREATS, OR
720-8 INTIMIDATION
720-9 Sec. 186.005. RESTRAINING ORDER
720-10 Sec. 186.006. EMPLOYEE RIGHTS
720-11 (Sections 186.007-186.020 reserved for expansion)
720-12 SUBCHAPTER B. MANIPULATION OF SERVICE FOR CERTAIN LAW
720-13 ENFORCEMENT PURPOSES
720-14 Sec. 186.021. EMERGENCY INVOLVING HOSTAGE OR ARMED SUSPECT
720-15 (Sections 186.022-186.030 reserved for expansion)
720-16 SUBCHAPTER C. FRAUDULENT OBTAINING OF SERVICE
720-17 Sec. 186.031. DEFINITIONS
720-18 Sec. 186.032. FRAUDULENTLY OBTAINING TELECOMMUNICATIONS
720-19 SERVICES
720-20 Sec. 186.033. DISPOSITION OF CERTAIN EQUIPMENT
720-21 (Sections 186.034-186.040 reserved for expansion)
720-22 SUBCHAPTER D. AVAILABILITY OF EMERGENCY TELEPHONE SERVICE
720-23 Sec. 186.041. DEFINITIONS
720-24 Sec. 186.042. OBSTRUCTION OF EMERGENCY TELEPHONE CALL;
720-25 PENALTY
721-1 Sec. 186.043. FALSIFICATION OF EMERGENCY TELEPHONE CALL;
721-2 PENALTY
721-3 Sec. 186.044. NOTICE OF CERTAIN OFFENSES REQUIRED
721-4 Sec. 186.045. FAILURE TO PROVIDE NOTICE; PENALTY
721-5 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY
721-6 AND INTEGRITY OF UTILITY SERVICE
721-7 SUBCHAPTER A. CONTINUITY OF UTILITY SERVICE
721-8 Sec. 186.001. DEFINITION. In this subchapter, "public
721-9 utility" means and includes a private corporation that does
721-10 business in this state and has the right of eminent domain, a
721-11 municipality, or a state agency, authority, or subdivision engaged
721-12 in the business of:
721-13 (1) generating, transmitting, or distributing electric
721-14 energy to the public;
721-15 (2) producing, transmitting, or distributing natural
721-16 or artificial gas to the public; or
721-17 (3) furnishing water to the public. (V.A.C.S.
721-18 Art. 1446a, Sec. 2.)
721-19 Sec. 186.002. POLICY. (a) Continuous service by a public
721-20 utility is essential to the life, health, and safety of the public.
721-21 A person's wilful interruption of that service is a public calamity
721-22 that cannot be endured.
721-23 (b) A public utility is dedicated to public service. The
721-24 primary duty of a public utility, including its management and
721-25 employees, is to maintain continuous and adequate service at all
722-1 times to protect the safety and health of the public against the
722-2 danger inherent in the interruption of service.
722-3 (c) Each court and administrative agency of this state
722-4 shall:
722-5 (1) recognize the policy stated in this section; and
722-6 (2) interpret and apply this subchapter in accordance
722-7 with that policy. (V.A.C.S. Art. 1446a, Sec. 1.)
722-8 Sec. 186.003. ENFORCEMENT BY EXECUTIVE DEPARTMENT. In
722-9 accordance with Section 186.002, the governor, and the department
722-10 of the executive branch of government under the governor's
722-11 direction, shall exercise all power available under the
722-12 constitution and laws of this state to protect the public from
722-13 dangers incident to an interruption in water, electric, or gas
722-14 utility service in this state that occurs because of a violation of
722-15 this subchapter. (V.A.C.S. Art. 1446a, Sec. 6.)
722-16 Sec. 186.004. UNLAWFUL PICKETING, THREATS, OR INTIMIDATION.
722-17 (a) A person may not:
722-18 (1) picket the plant, premises, or other property of a
722-19 public utility with intent to disrupt the service of that utility
722-20 or to prevent the maintenance of that service; or
722-21 (2) engage in picketing that has the effect of
722-22 disrupting the service of a public utility or preventing the
722-23 maintenance of that service.
722-24 (b) A person may not:
722-25 (1) intimidate, threaten, or harass an employee of a
723-1 public utility with intent to disrupt the service of the utility or
723-2 prevent the maintenance of that service; or
723-3 (2) intimidate, threaten, or harass an employee of a
723-4 public utility if that conduct has the effect of disrupting the
723-5 service of the utility or preventing the maintenance of that
723-6 service. (V.A.C.S. Art. 1446a, Sec. 3.)
723-7 Sec. 186.005. RESTRAINING ORDER. (a) A district court
723-8 shall immediately inquire into the matter if a public utility
723-9 presents a verified petition to the court:
723-10 (1) alleging that in the judicial district of the
723-11 court a person is violating or threatening to violate Section
723-12 186.004 and that the violation or threatened violation will
723-13 interfere with the maintenance of adequate water, electric, or gas
723-14 service; and
723-15 (2) describing the acts committed in violation of
723-16 Section 186.004, or the threatened acts that, if committed, will
723-17 violate Section 186.004.
723-18 (b) If it appears that there is a violation or threatened
723-19 violation of Section 186.004, the court shall immediately issue an
723-20 order restraining the person, the person's agent, and any other
723-21 person acting with them from committing an act prohibited by that
723-22 section.
723-23 (c) A restraining order issued under this section is
723-24 effective when the petitioner files with the clerk of the court a
723-25 good and sufficient bond in an amount set by the court to cover
724-1 court costs that may reasonably accrue in connection with the case.
724-2 A judgment rendered in the case may not be superseded pending
724-3 appeal.
724-4 (d) Venue for a suit under this section is in any judicial
724-5 district in which the violation or threat to violate occurs.
724-6 (V.A.C.S. Art. 1446a, Sec. 4.)
724-7 Sec. 186.006. EMPLOYEE RIGHTS. This subchapter does not
724-8 limit the right of an employee of a public utility to:
724-9 (1) quit work and leave the employer's premises at any
724-10 time the employee chooses; or
724-11 (2) refuse to report for work when the employee does
724-12 not want to report. (V.A.C.S. Art. 1446a, Sec. 7.)
724-13 (Sections 186.007-186.020 reserved for expansion)
724-14 SUBCHAPTER B. MANIPULATION OF SERVICE FOR CERTAIN LAW
724-15 ENFORCEMENT PURPOSES
724-16 Sec. 186.021. EMERGENCY INVOLVING HOSTAGE OR ARMED SUSPECT.
724-17 (a) In an emergency in which the supervising law enforcement
724-18 official having jurisdiction in the geographical area has probable
724-19 cause to believe that an armed and barricaded suspect or a person
724-20 holding a hostage is committing a crime, the supervising law
724-21 enforcement official may order a designated telephone company
724-22 security official to cut or otherwise control telephone lines to
724-23 prevent telephone communication by the armed suspect or the hostage
724-24 holder with a person other than a peace officer or person
724-25 authorized by a peace officer.
725-1 (b) The serving telephone company in the geographical area
725-2 of a law enforcement unit shall designate a telephone company
725-3 security official and an alternate to provide all required
725-4 assistance to law enforcement officials to carry out this section.
725-5 (c) Good faith reliance on an order given by a supervising
725-6 law enforcement official under this section is a complete defense
725-7 to a civil or criminal action brought against a telephone company
725-8 or the company's director, officer, agent, or employee as a result
725-9 of compliance with the order. (V.A.C.S. Art. 1432b.)
725-10 (Sections 186.022-186.030 reserved for expansion)
725-11 SUBCHAPTER C. FRAUDULENT OBTAINING OF SERVICE
725-12 Sec. 186.031. DEFINITIONS. In this subchapter:
725-13 (1) "Publish" means to communicate information to
725-14 another by any means.
725-15 (2) "Telecommunications service" means the
725-16 transmission of a message or other information by a public utility,
725-17 including a telephone or telegraph company. (V.A.C.S. Art. 1446b,
725-18 Sec. 1.)
725-19 Sec. 186.032. FRAUDULENTLY OBTAINING TELECOMMUNICATIONS
725-20 SERVICES. (a) A person commits an offense if:
725-21 (1) knowing that another will use the published
725-22 information to avoid payment of a charge for telecommunications
725-23 service, the person publishes:
725-24 (A) an existing, cancelled, revoked, or
725-25 nonexistent telephone number;
726-1 (B) a credit number or other credit device; or
726-2 (C) a method of numbering or coding that is used
726-3 in issuing telephone numbers or credit devices, including credit
726-4 numbers; or
726-5 (2) the person makes or possesses equipment
726-6 specifically designed to be used fraudulently to avoid charges for
726-7 telecommunications service.
726-8 (b) An offense under this section is a misdemeanor
726-9 punishable by a fine of not more than $500, by confinement in jail
726-10 for not more than 60 days, or by both, unless the person has been
726-11 previously convicted of an offense under this section. A second or
726-12 subsequent offense is a felony punishable by a fine of not more
726-13 than $5,000, by imprisonment in the penitentiary for not less than
726-14 two years and not more than five years, or by both.
726-15 (c) This section does not apply to an employee of a public
726-16 utility who provides telecommunications service while acting in the
726-17 course of employment. (V.A.C.S. Art. 1446b, Secs. 2, 4.)
726-18 Sec. 186.033. DISPOSITION OF CERTAIN EQUIPMENT. (a) A
726-19 peace officer may seize equipment described by Section
726-20 186.032(a)(2) under a warrant or incident to a lawful arrest.
726-21 (b) If the person who possessed equipment seized under
726-22 Subsection (a) is convicted under Section 186.032, the court
726-23 entering the judgment of conviction shall order the sheriff to
726-24 destroy the equipment. (V.A.C.S. Art. 1446b, Sec. 3.)
726-25 (Sections 186.034-186.040 reserved for expansion)
727-1 SUBCHAPTER D. AVAILABILITY OF EMERGENCY TELEPHONE SERVICE
727-2 Sec. 186.041. DEFINITIONS. In this subchapter:
727-3 (1) "Emergency" means a situation in which property or
727-4 human life is in jeopardy and the prompt summoning of aid is
727-5 essential.
727-6 (2) "Party line" means a subscriber's telephone
727-7 circuit, consisting of two or more main telephone stations
727-8 connected with the circuit, each station with a distinctive ring or
727-9 telephone number. (V.A.C.S. Art. 1432a, Sec. 3.)
727-10 Sec. 186.042. OBSTRUCTION OF EMERGENCY TELEPHONE CALL;
727-11 PENALTY. (a) A person commits an offense if:
727-12 (1) the person wilfully refuses to relinquish a party
727-13 line immediately on being informed that the line is needed for an
727-14 emergency call described by Subdivision (2); and
727-15 (2) the party line is needed for an emergency call:
727-16 (A) to a fire or police department; or
727-17 (B) for medical aid or an ambulance service.
727-18 (b) An offense under this section is a misdemeanor
727-19 punishable by:
727-20 (1) a fine of not less than $25 and not more than
727-21 $500;
727-22 (2) confinement in the county jail for not more than
727-23 one month; or
727-24 (3) both fine and confinement. (V.A.C.S. Art. 1432a,
727-25 Sec. 1.)
728-1 Sec. 186.043. FALSIFICATION OF EMERGENCY TELEPHONE CALL;
728-2 PENALTY. (a) A person commits an offense if the person secures
728-3 the use of a party line by falsely stating that the line is needed
728-4 for an emergency call:
728-5 (1) to a fire or police department; or
728-6 (2) for medical aid or an ambulance service.
728-7 (b) An offense under this section is a misdemeanor
728-8 punishable by:
728-9 (1) a fine of not less than $25 and not more than
728-10 $500;
728-11 (2) confinement in the county jail for not more than
728-12 one month; or
728-13 (3) both fine and confinement. (V.A.C.S. Art. 1432a,
728-14 Sec. 2.)
728-15 Sec. 186.044. NOTICE OF CERTAIN OFFENSES REQUIRED. (a) A
728-16 telephone directory distributed to the public in this state that
728-17 lists the telephone numbers of an exchange located in this state
728-18 must contain a notice explaining the offenses under Sections
728-19 186.042 and 186.043. The notice must be:
728-20 (1) printed in type not smaller than the smallest type
728-21 on the same page; and
728-22 (2) preceded by the word "warning" printed in type at
728-23 least as large as the largest type on the same page.
728-24 (b) At least once each year, a person providing telephone
728-25 service shall enclose in the telephone bill mailed to each person
729-1 who uses a party line telephone a notice of Sections 186.042 and
729-2 186.043.
729-3 (c) This section does not apply to a directory, commonly
729-4 known as a classified directory, that is distributed solely for
729-5 business advertising purposes. (V.A.C.S. Art. 1432a, Sec. 4
729-6 (part).)
729-7 Sec. 186.045. FAILURE TO PROVIDE NOTICE; PENALTY. (a) A
729-8 person providing telephone service commits an offense if the
729-9 person:
729-10 (1) distributes copies of a telephone directory
729-11 subject to Section 186.044(a) from which the notice required by
729-12 that section is wilfully omitted; or
729-13 (2) wilfully fails to enclose in telephone bills the
729-14 notice required by Section 186.044(b).
729-15 (b) An offense under this section is a misdemeanor
729-16 punishable by a fine of not less than $25 and not more than $500.
729-17 (V.A.C.S. Art. 1432a, Sec. 4 (part).)
729-18 SECTION 2. CONFORMING AMENDMENT. Title 4, Water Code, is
729-19 amended by adding Chapter 67 to read as follows:
729-20 CHAPTER 67. NONPROFIT WATER SUPPLY OR SEWER SERVICE CORPORATIONS
729-21 Sec. 67.001. DEFINITIONS. In this chapter:
729-22 (1) "Board" means the board of directors of a
729-23 corporation.
729-24 (2) "Corporation" means a water supply or sewer
729-25 service corporation operating under this chapter.
730-1 (3) "Director" means a member of the board of
730-2 directors. (New.)
730-3 Sec. 67.002. PURPOSE OF CORPORATION. A corporation may be
730-4 organized under this chapter to provide:
730-5 (1) water supply, sewer service, or both for a
730-6 municipality, a private corporation, an individual, or a military
730-7 camp or base; and
730-8 (2) flood control and a drainage system for a
730-9 political subdivision, private corporation, or another person.
730-10 (V.A.C.S. Art. 1434a, Sec. 1 (part).)
730-11 Sec. 67.003. CREATION OF CORPORATION. (a) Three or more
730-12 individuals who are citizens of this state may form a corporation
730-13 by making an application to the secretary of state in the same
730-14 manner as provided by law for an application for a private
730-15 corporation.
730-16 (b) The application for charter must include the number of
730-17 directors and the name of each director.
730-18 (c) The name designated for the corporation must include the
730-19 words "Water Supply Corporation." (V.A.C.S. Art. 1434a, Secs. 1
730-20 (part), 3(a) (part).)
730-21 Sec. 67.004. APPLICATION OF TEXAS NON-PROFIT CORPORATION
730-22 ACT. To the extent it does not conflict with this chapter, the
730-23 Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
730-24 Vernon's Texas Civil Statutes) applies to a corporation created
730-25 under:
731-1 (1) this chapter; or
731-2 (2) Chapter 76, Acts of the 43rd Legislature, 1st
731-3 Called Session, 1933 (Article 1434a, Vernon's Texas Civil
731-4 Statutes). (V.A.C.S. Art. 1434a, Sec. 2(d).)
731-5 Sec. 67.005. DIRECTORS. (a) A corporation may not have
731-6 more than 21 directors.
731-7 (b) The corporation may increase the number of directors by
731-8 amendment to the bylaws but may not exceed the limit imposed by
731-9 Subsection (a).
731-10 (c) The bylaws of the corporation may provide that directors
731-11 serve staggered terms of approximately two or three years.
731-12 (d) At the first annual meeting of the shareholders, the
731-13 directors shall be divided into two or three classes according to
731-14 the length of the terms the directors serve. The classification of
731-15 directors may not take effect before that meeting.
731-16 (e) The division of the directors and the corresponding
731-17 terms must be set so that:
731-18 (1) one-half of the directors, as nearly as possible,
731-19 are elected annually, if a two-year term is provided; or
731-20 (2) one-third of the directors, as nearly as possible,
731-21 are elected annually, if a three-year term is provided.
731-22 (f) After the implementation of two-year or three-year terms
731-23 for directors, as directors' terms expire, the members shall elect
731-24 their successors to serve until the second or third succeeding
731-25 annual meeting after their election, as appropriate. (V.A.C.S.
732-1 Art. 1434a, Secs. 3(a) (part), (b).)
732-2 Sec. 67.006. OFFICERS. (a) The board shall elect a
732-3 president, a vice president, and a secretary-treasurer following
732-4 the issuance of a charter and after each annual meeting of the
732-5 membership or shareholders.
732-6 (b) The board may require a bond of an officer for faithful
732-7 performance of the officer's duties.
732-8 (c) The salary of an officer of the corporation other than
732-9 secretary-treasurer or a manager employed under Section 67.012 may
732-10 not exceed $5,000 a year. The board shall set the
732-11 secretary-treasurer's salary at an amount commensurate with the
732-12 secretary-treasurer's duties. (V.A.C.S. Art. 1434a, Sec. 5
732-13 (part).)
732-14 Sec. 67.007. ANNUAL MEETING. The annual meeting of the
732-15 members or shareholders of the corporation must be held between
732-16 January 1 and May 1 at a time specified by the bylaws or the board.
732-17 (V.A.C.S. Art. 1434a, Sec. 5 (part).)
732-18 Sec. 67.008. DISTRIBUTION OF PROFITS. (a) The
732-19 incorporators may provide in the charter of the corporation that a
732-20 dividend will not be paid on the stock and that all profits of the
732-21 corporation will be paid annually to political subdivisions,
732-22 private corporations, or other persons that have transacted
732-23 business with the corporation during the previous year.
732-24 (b) The corporation shall distribute any profits under
732-25 Subsection (a) in direct proportion to the amount of business the
733-1 corporation transacts with each entity during that year.
733-2 (c) The corporation may not make a distribution under
733-3 Subsection (a) if the corporation has unpaid indebtedness.
733-4 (d) A corporation may allocate to a sinking fund an amount
733-5 of the annual profits as determined necessary by the board for
733-6 maintenance, operation, and replacements. (V.A.C.S. Art. 1434a,
733-7 Sec. 1 (part).)
733-8 Sec. 67.009. FACILITIES. A corporation may construct,
733-9 acquire, lease, improve, extend, or maintain a facility, plant,
733-10 equipment, or appliance helpful or necessary to provide more
733-11 adequate sewer service, flood control, or drainage for a political
733-12 subdivision. (V.A.C.S. Art. 1434a, Sec. 2(c).)
733-13 Sec. 67.010. POWER TO CONTRACT WITH OTHER ENTITIES. (a) A
733-14 corporation may enter into a contract with any political
733-15 subdivision, federal agency, or other entity for the acquisition,
733-16 construction, or maintenance of a project or improvement for an
733-17 authorized purpose.
733-18 (b) A corporation may obtain money from any political
733-19 subdivision of this state, federal agency, or other entity to
733-20 finance the acquisition or construction of a project or improvement
733-21 for an authorized purpose.
733-22 (c) A corporation may encumber the project or improvement
733-23 and may encumber any income, fees, rents, and other charges derived
733-24 from the operation of the project or improvement. The corporation
733-25 may issue bonds, notes, or warrants to secure payment of funds
734-1 received. Indebtedness authorized by this subsection is a charge
734-2 only on specifically encumbered property and revenues and is not a
734-3 general obligation of indebtedness of the corporation.
734-4 (d) A political subdivision may contract with a corporation
734-5 under Section 402.014, Local Government Code, to carry out this
734-6 chapter. (V.A.C.S. Art. 1434a, Secs. 2(a), (b).)
734-7 Sec. 67.011. POWERS OF CORPORATION IN CERTAIN COUNTIES. In
734-8 a county with a population of less than two million, a corporation
734-9 may:
734-10 (1) own, hold, lease, or otherwise acquire water
734-11 wells, springs, or other sources of water supply;
734-12 (2) build, operate, and maintain pipelines to
734-13 transport water or wastewater;
734-14 (3) build and operate plants and equipment necessary
734-15 to distribute water or to treat and dispose of wastewater; and
734-16 (4) sell water or provide wastewater services to a
734-17 political subdivision, a private corporation, or an individual.
734-18 (V.A.C.S. Art. 1434a, Sec. 4 (part).)
734-19 Sec. 67.012. USE OF MANAGER. The board may employ a manager
734-20 to handle the business of the corporation under the direction of
734-21 the board. The board shall set the salary for the manager.
734-22 (V.A.C.S. Art. 1434a, Sec. 6.)
734-23 Sec. 67.013. USE OF COUNSEL. The board may employ and
734-24 compensate counsel to represent the corporation as the board
734-25 determines is necessary. (V.A.C.S. Art. 1434a, Sec. 7.)
735-1 Sec. 67.014. DEPOSITORY OF FUNDS. (a) The board shall
735-2 select as depository for the funds of the corporation a bank in
735-3 this state that is insured by the Federal Deposit Insurance
735-4 Corporation and require from the depository a bond in an amount the
735-5 board finds necessary to protect the corporation.
735-6 (b) Funds allocated by the board to a sinking fund for
735-7 replacement, amortization of debts, and the payment of interest
735-8 that are not required to be spent in the year in which deposited
735-9 shall be:
735-10 (1) invested in bonds or other evidence of
735-11 indebtedness of the United States;
735-12 (2) placed with the depository in an interest-bearing
735-13 savings account; or
735-14 (3) invested in shares or share accounts in a savings
735-15 and loan association insured by the Federal Deposit Insurance
735-16 Corporation. (V.A.C.S. Art. 1434a, Sec. 8, as amended Acts 57th
735-17 Leg., R.S., Ch. 81; Acts 57th Leg., 1st C.S., Ch. 54.)
735-18 Sec. 67.015. EXEMPTION FROM SECURITIES ACT. The Securities
735-19 Act (Article 581-1 et seq., Vernon's Texas Civil Statutes) does not
735-20 apply to:
735-21 (1) a note, bond, or other evidence of indebtedness
735-22 issued by a corporation doing business in this state to the United
735-23 States;
735-24 (2) an instrument executed to secure a debt of a
735-25 corporation to the United States; or
736-1 (3) the issuance of a membership certificate or stock
736-2 certificate of a corporation. (V.A.C.S. Art. 1434a, Sec. 9.)
736-3 Sec. 67.016. TRANSFER OR CANCELLATION OF STOCK, MEMBERSHIP,
736-4 OR OTHER RIGHT OF PARTICIPATION. (a) A person or entity that owns
736-5 any stock of, is a member of, or has some other right of
736-6 participation in a corporation may not sell or transfer that stock,
736-7 membership, or other right of participation to another person or
736-8 entity except:
736-9 (1) by will to a person who is related to the testator
736-10 within the second degree by consanguinity;
736-11 (2) by transfer without compensation to a person who
736-12 is related to the owner of the stock or other interest within the
736-13 second degree by consanguinity; or
736-14 (3) by transfer without compensation or by sale to the
736-15 corporation.
736-16 (b) Subsection (a) does not apply to a person or entity that
736-17 transfers the membership or other right of participation to another
736-18 person or entity as part of the conveyance of real estate from
736-19 which the membership or other right of participation arose.
736-20 (c) The transfer of stock, a membership, or another right of
736-21 participation under this section does not entitle the transferee to
736-22 water or sewer service unless each condition for water or sewer
736-23 service is met as provided in the corporation's published rates,
736-24 charges, and conditions of service. A transfer and service
736-25 application must be completed on the corporation's standardized
737-1 forms and filed with the corporation's office in a timely manner.
737-2 The conditions of service may not require a personal appearance in
737-3 the office of the corporation if the transferee agrees in writing
737-4 to accept the rates, charges, and conditions of service.
737-5 (d) The corporation may make water or sewer service provided
737-6 as a result of stock, a membership, or another right of
737-7 participation in the corporation conditional on ownership of the
737-8 real estate designated to receive service and from which the
737-9 membership or other right of participation arises.
737-10 (e) The corporation may cancel a person's or other entity's
737-11 stock, membership, or other right of participation if the person or
737-12 entity fails to:
737-13 (1) meet the conditions for water or sewer service
737-14 prescribed by the corporation's published rates, charges, and
737-15 conditions of service; or
737-16 (2) comply with any other condition placed on the
737-17 receipt of water or sewer service under the stock, membership, or
737-18 other right of participation.
737-19 (f) Consistent with Subsection (a), the corporation may
737-20 reassign canceled stock or a canceled membership or other right of
737-21 participation to a person or entity that has legal title to the
737-22 real estate from which the canceled membership or other right of
737-23 participation arose and for which water or sewer service is
737-24 requested.
737-25 (g) Notwithstanding Subsection (a), the corporation shall
738-1 reassign canceled stock or a canceled membership or other right of
738-2 participation to a person or entity that acquires the real estate
738-3 from which the membership or other right of participation arose
738-4 through judicial or nonjudicial foreclosure. The corporation may
738-5 require proof of ownership resulting from the foreclosure.
738-6 (h) Service provided following a transfer under Subsection
738-7 (f) or (g) is made subject to compliance with the conditions for
738-8 water or sewer service prescribed by the corporation's published
738-9 rates, charges, and conditions of service. (V.A.C.S. Art. 1434a,
738-10 Sec. 9A.)
738-11 Sec. 67.017. VOLUNTARY CONTRIBUTIONS ON BEHALF OF EMERGENCY
738-12 SERVICES. (a) A corporation may as part of its billing process
738-13 collect from its customers a voluntary contribution, including a
738-14 voluntary membership or subscription fee, on behalf of a volunteer
738-15 fire department or an emergency medical service.
738-16 (b) A corporation that collects contributions under this
738-17 section shall provide each customer at the time that the customer
738-18 first subscribes to the water or sewer service, and at least
738-19 annually thereafter, a written statement:
738-20 (1) describing the procedure by which the customer may
738-21 make a contribution with the customer's bill payment;
738-22 (2) designating the volunteer fire department or
738-23 emergency medical service to which the corporation will deliver the
738-24 contribution;
738-25 (3) informing the customer that a contribution is
739-1 voluntary; and
739-2 (4) describing the deductibility status of the
739-3 contribution under federal income tax law.
739-4 (c) A billing by the corporation that includes a voluntary
739-5 contribution under this section must clearly state that the
739-6 contribution is voluntary and that it may be deducted from the
739-7 billed amount.
739-8 (d) The corporation shall promptly deliver contributions
739-9 that it collects under this section to the designated volunteer
739-10 fire department or emergency medical service, except that the
739-11 corporation may keep from the contributions an amount equal to the
739-12 lesser of:
739-13 (1) the corporation's expenses in administering the
739-14 contribution program; or
739-15 (2) five percent of the amount collected as
739-16 contributions. (V.A.C.S. Art. 1434a, Sec. 4A.)
739-17 SECTION 3. CONFORMING AMENDMENT. Chapter 402, Local
739-18 Government Code, is amended by adding Subchapter F to read as
739-19 follows:
739-20 SUBCHAPTER F. MUNICIPAL WATER CORPORATIONS
739-21 AND MUNICIPAL WATER SYSTEMS
739-22 Sec. 402.101. MUNICIPAL WATER CONTRACTS. The governing body
739-23 of a municipality in which there is a water corporation may
739-24 contract with the corporation to supply water to a street, alley,
739-25 lot, square, or public place in a municipality. (V.A.C.S.
740-1 Art. 1434.)
740-2 Sec. 402.102. EMINENT DOMAIN BY MUNICIPAL SEWER PROVIDERS.
740-3 (a) A corporation incorporated in this state for the purpose of
740-4 owning, constructing, or maintaining a sewer system in a
740-5 municipality may by eminent domain condemn private property to:
740-6 (1) construct and maintain sewer pipes, mains and
740-7 laterals, and connections; and
740-8 (2) maintain vats, filtration pipes, and other pipes
740-9 for the final disposition of sewage.
740-10 (b) A corporation may exercise a power described by
740-11 Subsection (a) only if:
740-12 (1) the use of private property is necessary for the
740-13 successful operation of the sewer system; and
740-14 (2) the sewer system is beneficial to the public use,
740-15 health, or convenience.
740-16 (c) The power of eminent domain may not be used under this
740-17 section in the boundaries of a municipality unless permitted or
740-18 required by the municipality granting a franchise to the
740-19 corporation seeking the right of condemnation. (V.A.C.S.
740-20 Art. 1439.)
740-21 Sec. 402.103. RIGHTS OF WATER CORPORATION PROVIDING SERVICE
740-22 TO MUNICIPALITY; EMINENT DOMAIN. (a) A water corporation in a
740-23 municipality may sell and furnish water required by a municipality
740-24 for a public or private building or for any other purpose.
740-25 (b) A water corporation may lay water system pipes, mains,
741-1 or conductors through a street, alley, lane, or square of a
741-2 municipality if the governing body of the municipality consents,
741-3 subject to any regulation by the governing body.
741-4 (c) If necessary to preserve the public health, a water
741-5 corporation incorporated under state law to construct waterworks or
741-6 to furnish water supply to a municipality may exercise the power of
741-7 eminent domain to condemn private property necessary to construct a
741-8 supply reservoir or standpipe for water work. (V.A.C.S. Art. 1433
741-9 (part).)
741-10 Sec. 402.104. LOCATION OF WATER LINES OUTSIDE MUNICIPAL
741-11 BOUNDARIES. (a) A water corporation or municipality may lay water
741-12 system pipes, mains, conductors, or other fixtures through, under,
741-13 along, across, or over a public road, a public street, or a public
741-14 waterway not in a municipality in a manner that does not
741-15 inconvenience the public using the road, street, or waterway.
741-16 (b) A water corporation or municipality proposing under this
741-17 subchapter to build a water line along the right-of-way of a state
741-18 highway or county road not in a municipality shall give notice of
741-19 the proposal to:
741-20 (1) the Texas Transportation Commission, if the
741-21 proposal relates to a state highway; or
741-22 (2) the commissioners court of the county if the
741-23 proposal relates to a county road.
741-24 (c) On receipt of notice under Subsection (b), the Texas
741-25 Transportation Commission or commissioners court may designate the
742-1 location in the right-of-way where the corporation or municipality
742-2 may construct the water line. (V.A.C.S. Arts. 1433 (part), 1433a
742-3 (part).)
742-4 Sec. 402.105. RELOCATION OF WATER LINE TO ALLOW CHANGE TO
742-5 TRAFFIC LANE. (a) The authority of the Texas Transportation
742-6 Commission under this section is limited to a water line on a state
742-7 highway not in a municipality. The authority of the commissioners
742-8 court under this section is limited to a water line on a county
742-9 road not in a municipality.
742-10 (b) The Texas Transportation Commission or the commissioners
742-11 court of a county may require a water corporation or municipality
742-12 to relocate the corporation's or municipality's water line at the
742-13 corporation's or municipality's own expense to allow the widening
742-14 or other changing of a traffic lane.
742-15 (c) To impose a requirement under this section, the Texas
742-16 Transportation Commission or the commissioners court, as
742-17 appropriate, must give to the water corporation or municipality 30
742-18 days' written notice of the requirement. The notice must identify
742-19 the water line to be relocated and indicate the location on the new
742-20 right-of-way where the corporation or municipality may place the
742-21 line. (V.A.C.S. Arts. 1433 (part), 1433a (part).)
742-22 SECTION 4. CONFORMING AMENDMENT. Subchapter Z, Chapter 402,
742-23 Local Government Code, is amended by adding Section 402.906 to read
742-24 as follows:
742-25 Sec. 402.906. MUNICIPAL UTILITY PLANTS. (a) This section
743-1 applies only to a general-law municipality that owns a utility
743-2 plant that provides utility service.
743-3 (b) The governing body of a municipality may:
743-4 (1) by ordinance regulate the rates and compensation
743-5 charged the public by the municipality for utility service;
743-6 (2) establish and operate a plant to manufacture,
743-7 generate, or produce utility service; and
743-8 (3) sell and distribute utility service to the public
743-9 in the municipality's boundaries.
743-10 (c) In this section, "utility service" means the provision
743-11 of water, sewer service, gas, electric energy, or a substance used
743-12 for lighting, heat, or power. (V.A.C.S. Art. 1123.)
743-13 SECTION 5. CONFORMING AMENDMENT. Chapter 91, Natural
743-14 Resources Code, is amended by adding Subchapter H to read as
743-15 follows:
743-16 SUBCHAPTER H. UNDERGROUND STORAGE FACILITIES FOR NATURAL GAS
743-17 Sec. 91.251. DEFINITIONS. In this subchapter:
743-18 (1) "Intrastate gas pipeline facility" has the meaning
743-19 assigned by the United States Department of Transportation under
743-20 Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
743-21 et seq.), and its subsequent amendments.
743-22 (2) "Natural gas" means any gaseous material composed
743-23 primarily of methane in either its original or its manufactured
743-24 state.
743-25 (3) "Natural gas underground storage" means the
744-1 storage of natural gas beneath the surface of the earth in a
744-2 formation, stratum, or reservoir.
744-3 (4) "Storage facility" has the meaning assigned by
744-4 Section 91.173. (V.A.C.S. Art. 6053-3, Secs. 1, 4(f) (part).)
744-5 Sec. 91.252. COMMISSION JURISDICTION. (a) The commission
744-6 has jurisdiction over:
744-7 (1) natural gas underground storage; and
744-8 (2) surface and subsurface equipment and facilities
744-9 used for natural gas underground storage.
744-10 (b) This subchapter does not apply to a storage facility
744-11 that is:
744-12 (1) part of an interstate gas pipeline facility as
744-13 defined by the United States Department of Transportation; and
744-14 (2) subject to federal minimum standards adopted under
744-15 Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
744-16 et seq.), and its subsequent amendments. (V.A.C.S. Art. 6053-3,
744-17 Secs. 2, 3.)
744-18 Sec. 91.253. COMMISSION ENFORCEMENT. (a) In addition to
744-19 other authority specifically granted to the commission under this
744-20 subchapter, the commission may enforce this subchapter or a rule
744-21 adopted or an order or permit issued under this subchapter as
744-22 provided by Section 91.207.
744-23 (b) Section 91.003 does not apply to this subchapter.
744-24 (V.A.C.S. Art. 6053-3, Sec. 10; New.)
744-25 Sec. 91.254. INSPECTION; EXAMINATION; CREDENTIALS. (a) The
745-1 commission may inspect a storage facility for compliance with the
745-2 safety standards and practices and the recordkeeping requirements
745-3 adopted under Sections 91.255, 91.257, and 91.258.
745-4 (b) To conduct an inspection under this section, a
745-5 commissioner or a designated commission employee or agent may enter
745-6 property on which a storage facility is located at a reasonable
745-7 time and in a reasonable manner to examine:
745-8 (1) the facility and any related buildings or
745-9 equipment; and
745-10 (2) the records required to be maintained at the
745-11 storage facility under Section 91.258.
745-12 (c) A commissioner or a commission employee or agent may not
745-13 enter the premises of a storage facility having personnel on the
745-14 premises of the facility unless proper credentials are first
745-15 presented to the person at the facility who is in charge of the
745-16 property. (V.A.C.S. Art. 6053-3, Sec. 6.)
745-17 Sec. 91.255. SAFETY STANDARDS AND PRACTICES. (a) The
745-18 commission by rule shall adopt safety standards and practices for
745-19 natural gas underground storage and storage facilities. The
745-20 standards and practices must:
745-21 (1) require the installation and periodic testing of
745-22 safety devices;
745-23 (2) establish emergency notification procedures for
745-24 the operator of a facility in the event of a release of a hazardous
745-25 substance that poses a substantial risk to the public;
746-1 (3) establish fire prevention and response procedures;
746-2 (4) require training for the employees of the storage
746-3 facility on the safe operation of the storage facility; and
746-4 (5) establish any other safety standard or practice
746-5 that is reasonable and necessary for underground natural gas
746-6 storage and the safe construction, operation, and maintenance of a
746-7 storage facility.
746-8 (b) The commission may adopt different standards and
746-9 practices for different types of storage facilities and may
746-10 distinguish among natural gas underground storage in salt dome
746-11 caverns, depleted reservoirs, and embedded salt formations.
746-12 (c) The commission may grant an exception to a standard or
746-13 practice adopted under this section in a permit or amended permit
746-14 issued to a storage facility if the exception will not constitute
746-15 an unreasonable danger to the public.
746-16 (d) The commission may impose an additional standard or
746-17 practice in a permit or amended permit issued to a storage
746-18 facility.
746-19 (e) A safety standard or practice adopted by the commission
746-20 for a storage facility that is part of an intrastate gas pipeline
746-21 facility must be compatible with federal minimum standards.
746-22 (f) The commission shall require that records of safety
746-23 device tests required by Subsection (a)(1) be:
746-24 (1) filed with the commission; or
746-25 (2) maintained by the owner or operator and made
747-1 available for inspection by the commission. (V.A.C.S. Art. 6053-3,
747-2 Secs. 4(a), (b), (c), (d), (f) (part).)
747-3 Sec. 91.256. LIMITATION ON POWERS OF MUNICIPALITIES AND
747-4 COUNTIES. A municipality or county may not adopt or enforce an
747-5 ordinance that establishes a safety standard or practice applicable
747-6 to a storage facility that is subject to regulation under this
747-7 subchapter, another state law, or a federal law. (V.A.C.S.
747-8 Art. 6053-3, Sec. 11.)
747-9 Sec. 91.257. SAFETY PROCEDURE MANUAL. The commission may
747-10 require the owner or operator of a storage facility to prepare a
747-11 safety procedure manual for each storage facility and to:
747-12 (1) file a copy of the manual with the commission; or
747-13 (2) make the manual available for inspection under
747-14 Section 91.254. (V.A.C.S. Art. 6053-3, Sec. 4(e).)
747-15 Sec. 91.258. RECORDS; REPORTS. (a) An owner or operator of
747-16 a storage facility shall:
747-17 (1) maintain records and make reports relating to
747-18 construction, operation, or maintenance of the facility as required
747-19 by commission rule; and
747-20 (2) provide any other information required by the
747-21 commission relating to construction, operation, or maintenance of
747-22 the facility.
747-23 (b) The commission may provide forms for reports required
747-24 under Subsection (a). (V.A.C.S. Art. 6053-3, Sec. 5.)
747-25 Sec. 91.259. DAMAGE TO STORAGE FACILITY; DISABLING A SAFETY
748-1 DEVICE. A person may not:
748-2 (1) intentionally damage or destroy a storage
748-3 facility; or
748-4 (2) disable a safety device in a storage facility
748-5 except to:
748-6 (A) repair, maintain, test, or replace the
748-7 device; or
748-8 (B) conduct other activities that are reasonably
748-9 necessary for the safe operation of the storage facility.
748-10 (V.A.C.S. Art. 6053-3, Sec. 7.)
748-11 Sec. 91.260. INJUNCTION; CIVIL PENALTY. (a) The attorney
748-12 general, at the request of the commission, shall bring a civil
748-13 action against a person who has violated or is violating this
748-14 subchapter or a rule adopted or an order or permit issued under
748-15 this subchapter for:
748-16 (1) injunctive relief to restrain the person from the
748-17 violation;
748-18 (2) the assessment and recovery of a civil penalty for
748-19 a violation; or
748-20 (3) both injunctive relief and a civil penalty.
748-21 (b) A civil penalty assessed under this section may not
748-22 exceed $25,000 for each violation.
748-23 (c) Each day of a continuing violation may be considered a
748-24 separate violation for the purpose of penalty assessment.
748-25 (d) The maximum penalty assessed for a related series of
749-1 violations may not exceed $500,000. (V.A.C.S. Art. 6053-3, Sec.
749-2 8.)
749-3 Sec. 91.261. ADMINISTRATIVE PENALTY. (a) The commission
749-4 may assess, as provided by this section and Sections 91.262,
749-5 91.263, and 91.264, an administrative penalty against a person who
749-6 violates this subchapter or a rule adopted or an order or permit
749-7 issued under this subchapter.
749-8 (b) Except as provided by Subsection (c), the penalty for
749-9 each violation may be in an amount not to exceed $10,000. The
749-10 maximum penalty assessed under this subsection for a related series
749-11 of violations may not exceed $200,000.
749-12 (c) The penalty for each violation of Section 91.259 may be
749-13 in an amount not to exceed $25,000. The maximum penalty assessed
749-14 under this subsection for a continuing violation may not exceed
749-15 $300,000.
749-16 (d) Each day a violation continues or occurs may be
749-17 considered a separate violation for the purpose of penalty
749-18 assessment under Subsection (b) or (c).
749-19 (e) In determining the amount of the penalty, the commission
749-20 shall consider:
749-21 (1) the seriousness of the violation, including the
749-22 nature, circumstances, extent, and gravity of the prohibited act
749-23 and the hazard or potential hazard created to the health, safety,
749-24 or economic welfare of the public;
749-25 (2) the economic harm to property or the environment
750-1 caused by the violation;
750-2 (3) the history of previous violations;
750-3 (4) the amount necessary to deter future violations;
750-4 (5) efforts to correct the violation; and
750-5 (6) any other matter that justice may require.
750-6 (V.A.C.S. Art. 6053-3, Secs. 9(a), (b), (c), (d).)
750-7 Sec. 91.262. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
750-8 (a) An administrative penalty may be assessed only after the
750-9 person charged under Section 91.261 has been given an opportunity
750-10 for a public hearing. If a public hearing is held, the commission
750-11 shall make findings of fact and issue a written decision as to the
750-12 occurrence of the violation and the penalty amount warranted by the
750-13 violation, incorporating, if appropriate, an order requiring that
750-14 the penalty be paid. If appropriate, the commission shall
750-15 consolidate the hearing with other proceedings.
750-16 (b) If a person charged under Section 91.261 fails to take
750-17 advantage of the opportunity for a public hearing, a penalty may be
750-18 assessed by the commission after it has determined that a violation
750-19 occurred and the penalty amount warranted by the violation. The
750-20 commission shall then issue an order requiring the penalty to be
750-21 paid.
750-22 (c) The commission shall give notice of the commission's
750-23 order to the person charged with the violation as provided by
750-24 Chapter 2001, Government Code. The notice must include a statement
750-25 of the right of the person to judicial review of the order.
751-1 (V.A.C.S. Art. 6053-3, Secs. 9(e), (f), (g), (h), (i), (j).)
751-2 Sec. 91.263. PAYMENT OF ADMINISTRATIVE PENALTY. (a) Not
751-3 later than the 30th day after the date on which the commission's
751-4 order imposing an administrative penalty becomes final as provided
751-5 by Section 2001.144, Government Code, the person charged with the
751-6 violation shall:
751-7 (1) pay the amount of the penalty;
751-8 (2) pay the amount of the penalty and file a petition
751-9 for judicial review contesting:
751-10 (A) the amount of the penalty;
751-11 (B) the fact of the violation; or
751-12 (C) both the amount of the penalty and the fact
751-13 of the violation; or
751-14 (3) without paying the amount of the penalty, file a
751-15 petition for judicial review contesting:
751-16 (A) the amount of the penalty;
751-17 (B) the fact of the violation; or
751-18 (C) both the amount of the penalty and the fact
751-19 of the violation.
751-20 (b) Within the 30-day period, a person who acts under
751-21 Subsection (a)(3) may:
751-22 (1) stay the enforcement of the penalty by:
751-23 (A) paying the amount of the penalty to the
751-24 court for placement in an escrow account; or
751-25 (B) giving to the court a supersedeas bond in a
752-1 form approved by the court that is effective until all judicial
752-2 review of the order or decision is final; or
752-3 (2) request the court to stay enforcement of the
752-4 penalty by:
752-5 (A) filing with the court a sworn affidavit
752-6 stating that the person is financially unable to pay the amount of
752-7 the penalty and is financially unable to give the supersedeas bond;
752-8 and
752-9 (B) delivering a copy of the affidavit to the
752-10 commission.
752-11 (c) If the commission receives a copy of an affidavit under
752-12 Subsection (b), the commission may file a contest to the affidavit
752-13 with the court not later than the fifth day after the date the copy
752-14 is received. The court shall hold a hearing on the facts alleged
752-15 in the affidavit as soon as practicable. The person who files an
752-16 affidavit has the burden of proving that the person is financially
752-17 unable to pay the amount of the penalty and to give a supersedeas
752-18 bond.
752-19 (d) If the person does not pay the amount of the penalty and
752-20 the penalty is not stayed, the commission may refer the matter to
752-21 the attorney general for enforcement. (V.A.C.S. Art. 6053-3, Secs.
752-22 9(k), (l), (m), (n).)
752-23 Sec. 91.264. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY.
752-24 (a) Judicial review of a commission order imposing an
752-25 administrative penalty is:
753-1 (1) instituted by filing a petition as provided by
753-2 Subchapter G, Chapter 2001, Government Code; and
753-3 (2) under the substantial evidence rule.
753-4 (b) If the person paid the amount of the penalty and that
753-5 amount is reduced or is not assessed by the court, the court shall
753-6 order that the appropriate amount plus accrued interest be remitted
753-7 to the person. The rate of interest is the rate charged on loans
753-8 to depository institutions by the New York Federal Reserve Bank and
753-9 shall be paid for the period beginning on the date the penalty is
753-10 paid and ending on the date the penalty is remitted. If the person
753-11 gave a supersedeas bond, the court shall order the release of the
753-12 bond:
753-13 (1) without further action by the person if the
753-14 penalty is not assessed by the court; or
753-15 (2) on payment of the penalty in the amount determined
753-16 by the court.
753-17 (c) A penalty collected under this section shall be
753-18 deposited to the credit of the oil-field cleanup fund account.
753-19 (V.A.C.S. Art. 6053-3, Secs. 9(o), (p), (q).)
753-20 SECTION 6. CONFORMING AMENDMENT. Chapter 111, Natural
753-21 Resources Code, is amended by adding Subchapter J to read as
753-22 follows:
753-23 SUBCHAPTER J. WELL WASTEWATER CORPORATION
753-24 Sec. 111.401. DEFINITION. In this subchapter, "well
753-25 wastewater" means water containing salt or other substances
754-1 produced during drilling or operating oil and other types of wells.
754-2 (V.A.C.S. Art. 1508 (part); New.)
754-3 Sec. 111.402. CREATION OF WELL WASTEWATER CORPORATION. A
754-4 well wastewater corporation may be created to gather, store, and
754-5 impound well wastewater and to prevent the flow of the well
754-6 wastewater into a stream when the stream may be used for
754-7 irrigation. (V.A.C.S. Art. 1508 (part).)
754-8 Sec. 111.403. CORPORATION POWERS. In addition to the
754-9 general powers conferred to a private corporation, a well
754-10 wastewater corporation may acquire, own, and operate a ditch,
754-11 canal, pipeline, levee, or reservoir, and an associated appliance
754-12 as appropriate to gather, impound, or store well wastewater and to
754-13 protect a reservoir from inflow or damage by surface water.
754-14 (V.A.C.S. Art. 1509.)
754-15 Sec. 111.404. CONDEMNATION. (a) A well wastewater
754-16 corporation may condemn land or a property right necessary for a
754-17 purpose of the corporation.
754-18 (b) A well wastewater corporation's ditch, canal, or
754-19 pipeline may cross under a highway, canal, pipeline, railroad, or
754-20 tram or logging road if the use of the highway, canal, pipeline,
754-21 railroad, or tram or logging road is not impaired except for the
754-22 time necessary to construct the crossing.
754-23 (c) Without the consent of the appropriate authority, a well
754-24 wastewater corporation's ditch, canal, or pipeline may not:
754-25 (1) pass through a cemetery;
755-1 (2) pass under a residence or public building; or
755-2 (3) cross a street or alley of a municipality.
755-3 (V.A.C.S. Art. 1510.)
755-4 Sec. 111.405. SERVICE TO WELL WASTEWATER PRODUCERS. (a) A
755-5 well wastewater corporation shall serve all well wastewater
755-6 producers in the area in which the corporation operates to the
755-7 extent the corporation has adequate facilities to gather, impound,
755-8 and store well wastewater.
755-9 (b) A well wastewater corporation:
755-10 (1) shall serve a well wastewater producer in
755-11 proportion to the needs of all of the producers in the area;
755-12 (2) shall charge a fair and reasonable fee for its
755-13 services; and
755-14 (3) may not discriminate between different producers
755-15 under similar conditions. (V.A.C.S. Art. 1511.)
755-16 Sec. 111.406. OWNERSHIP OF STOCK. A corporation interested
755-17 in the proper disposition of well wastewater may purchase, own, or
755-18 vote stock in a well wastewater corporation. (V.A.C.S. Art. 1512.)
755-19 SECTION 7. CONFORMING AMENDMENT. Subtitle D, Title 3,
755-20 Natural Resources Code, is amended by adding Chapter 115 to read as
755-21 follows:
755-22 CHAPTER 115. REGULATION OF CERTAIN TRANSPORTERS
755-23 OF OIL OR PETROLEUM PRODUCTS
755-24 SUBCHAPTER A. GENERAL PROVISIONS
755-25 Sec. 115.001. DEFINITIONS. In this chapter:
756-1 (1) "Commission" means the Railroad Commission of
756-2 Texas.
756-3 (2) "Commission order" includes a rule or order
756-4 adopted by the commission under the oil and gas conservation
756-5 statutes of this state, including this title and Subtitle B, Title
756-6 3, Utilities Code.
756-7 (3) "Gas" includes natural gas, bradenhead gas,
756-8 casinghead gas, or gas produced from an oil or gas well.
756-9 (4) "Manifest" includes a document issued by a shipper
756-10 that covers oil or a petroleum product transported by motor
756-11 vehicle.
756-12 (5) "Oil" includes crude petroleum oil:
756-13 (A) in its natural state as produced; or
756-14 (B) from which only the basic sediment and water
756-15 have been removed.
756-16 (6) "Person" includes an individual, corporation,
756-17 association, partnership, receiver, trustee, guardian, executor,
756-18 administrator, or representative.
756-19 (7) "Petroleum product" includes:
756-20 (A) refined crude oil;
756-21 (B) crude tops;
756-22 (C) topped crude;
756-23 (D) processed crude petroleum;
756-24 (E) residue from crude petroleum;
756-25 (F) cracking stock;
757-1 (G) uncracked fuel oil;
757-2 (H) fuel oil;
757-3 (I) treated crude oil;
757-4 (J) residuum;
757-5 (K) gas oil;
757-6 (L) casinghead gasoline;
757-7 (M) natural gas gasoline;
757-8 (N) naphtha;
757-9 (O) distillate;
757-10 (P) gasoline;
757-11 (Q) kerosene;
757-12 (R) benzine;
757-13 (S) wash oil;
757-14 (T) waste oil;
757-15 (U) blended gasoline;
757-16 (V) lubricating oil;
757-17 (W) blends or mixtures of petroleum; or
757-18 (X) any other liquid petroleum product or
757-19 byproduct derived from crude petroleum oil or gas.
757-20 (8) "Shipping papers" includes:
757-21 (A) a bill of lading that covers oil or a
757-22 petroleum product transported by railway;
757-23 (B) a manifest; or
757-24 (C) a document that covers oil or a petroleum
757-25 product transported by pipeline, boat, or barge.
758-1 (9) "Tender" means a permit or certificate of
758-2 clearance for the transportation of oil or a petroleum product that
758-3 is approved and issued or registered under the authority of the
758-4 commission.
758-5 (10) "Unlawful gas" includes gas produced or
758-6 transported in violation of a law of this state or commission
758-7 order.
758-8 (11) "Unlawful petroleum product" includes a petroleum
758-9 product:
758-10 (A) any part of which was processed or derived
758-11 in whole or in part from:
758-12 (i) unlawful oil;
758-13 (ii) a product of unlawful oil; or
758-14 (iii) unlawful gas; or
758-15 (B) transported in violation of a law of this
758-16 state or commission order. (V.A.C.S. Art. 6066a, Secs. 1(a), (b),
758-17 (c), (e), (f), (g) (part), (h) (part), (i), (j) (part), 2(b)
758-18 (part).)
758-19 Sec. 115.002. EXCEPTION. This chapter does not apply to the
758-20 retail purchase of a petroleum product if that product is:
758-21 (1) contained in the ordinary equipment of a motor
758-22 vehicle; and
758-23 (2) used only to operate the motor vehicle in which it
758-24 is contained. (V.A.C.S. Art. 6066a, Sec. 13.)
758-25 Sec. 115.003. DEFINITION OF UNLAWFUL OIL; PRESUMPTION.
759-1 (a) For purposes of this chapter, oil is unlawful if the oil is:
759-2 (1) produced in this state from a well in excess of
759-3 the amount allowed by a commission order or otherwise in violation
759-4 of a law of this state or commission order; or
759-5 (2) transported in violation of a law of this state or
759-6 commission order.
759-7 (b) It is presumed that oil is "unlawful oil" for purposes
759-8 of this chapter if the oil is retained in storage for more than six
759-9 years without being used, consumed, or moved into regular
759-10 commercial channels.
759-11 (c) The presumption under Subsection (b) may be rebutted by
759-12 proof that the oil:
759-13 (1) was produced from a well within the production
759-14 allowable then applying to that well;
759-15 (2) was not produced in violation of a law of this
759-16 state or commission order; and
759-17 (3) if transported from the lease from which it was
759-18 produced, was not transported in violation of a law of this state
759-19 or commission order. (V.A.C.S. Art. 6066a, Secs. 1(d), 2(b)
759-20 (part).)
759-21 (Sections 115.004-115.010 reserved for expansion
759-22 SUBCHAPTER B. TENDERS AND MANIFESTS
759-23 Sec. 115.011. TENDER REQUIREMENTS. The commission by order
759-24 may require that a tender be obtained before oil or a petroleum
759-25 product may be transported or received for transportation by
760-1 pipeline, railway, boat, or barge. (V.A.C.S. Art. 6066a, Sec. 2(a)
760-2 (part), Sec. 4(c) (part).)
760-3 Sec. 115.012. TENDER; APPLICATION REQUIREMENTS. (a) The
760-4 commission by order shall prescribe the form of a tender and a
760-5 tender application.
760-6 (b) The form must show:
760-7 (1) the name and address of the shipper or other
760-8 person who tenders oil or a petroleum product for transportation;
760-9 (2) the name and address of the transporter if the
760-10 commission order requires the transporter to be designated;
760-11 (3) the quantity and classification of each commodity
760-12 authorized to be transported;
760-13 (4) each location at which delivery is to be made to
760-14 the transporter; and
760-15 (5) other related information as prescribed by
760-16 commission order.
760-17 (c) Each tender must:
760-18 (1) bear a date and serial number;
760-19 (2) state the expiration date of the tender; and
760-20 (3) be executed by an agent authorized by the
760-21 commission to deny, approve, or register tenders.
760-22 (d) An agent may not approve or register a tender for the
760-23 transportation of unlawful oil or an unlawful petroleum product.
760-24 (V.A.C.S. Art. 6066a, Sec. 1(g) (part).)
760-25 Sec. 115.013. ACTION ON TENDER APPLICATION. (a) If an
761-1 agent of the commission rejects an application for a tender, the
761-2 agent shall return a copy of the application to the applicant with
761-3 the reasons for the rejection indicated on the copy.
761-4 (b) A person whose tender application is not acted on before
761-5 the 21st day after the date on which the application is filed is
761-6 entitled to judicial review in the manner provided by Section
761-7 115.014 for the appeal of a rejection of a tender application.
761-8 (V.A.C.S. Art. 6066a, Sec. 9 (part).)
761-9 Sec. 115.014. JUDICIAL REVIEW. (a) A person whose tender
761-10 application is rejected may appeal that action by filing a petition
761-11 against the commission in a district court of Travis County for
761-12 review of the agent's decision.
761-13 (b) The clerk of the court shall issue to the commission a
761-14 notice setting forth briefly the cause of action stated in the
761-15 petition. The court may not enter an order on the petition until
761-16 the court conducts a hearing. The court must conduct the hearing
761-17 not later than the fifth day after the date of issuance of the
761-18 notice.
761-19 (c) The court may sustain, modify, or overrule the agent's
761-20 decision and may issue a restraining order or injunction as
761-21 warranted by the facts.
761-22 (d) A person dissatisfied with the decision of the district
761-23 court may appeal to the court of appeals. (V.A.C.S. Art. 6066a,
761-24 Sec. 9 (part).)
761-25 Sec. 115.015. TRANSFER UNDER TENDER. (a) A person who
762-1 obtains a tender may not transport or deliver, or cause or permit
762-2 to be transported or delivered, any more or any different commodity
762-3 than that authorized by the tender.
762-4 (b) A connecting carrier or consignee who receives oil or a
762-5 petroleum product from another transporter by pipeline, railway,
762-6 boat, or barge under authority of shipping papers executed by the
762-7 initial transporter that bear the date and serial number of a
762-8 tender issued to that initial transporter is considered to receive
762-9 the oil or petroleum product by authority of that tender if the
762-10 commission order provides that a connecting carrier or consignee
762-11 may rely on the shipping papers. (V.A.C.S. Art. 6066a, Secs. 2(a)
762-12 (part), 4(c) (part).)
762-13 Sec. 115.016. ISSUANCE OF MANIFEST. (a) A person who
762-14 obtains a tender required under this subchapter shall sign and
762-15 issue a manifest to the operator of each motor vehicle used to
762-16 transport the oil or petroleum product that is covered by the
762-17 tender.
762-18 (b) The person shall issue a separate manifest for each load
762-19 carried by the motor vehicle. (V.A.C.S. Art. 6066a, Sec. 2(a)
762-20 (part).)
762-21 Sec. 115.017. FORM OF MANIFEST. (a) The commission by
762-22 order may prescribe the form of a manifest.
762-23 (b) A manifest must:
762-24 (1) bear a certificate signed by the shipper that
762-25 states the amount of oil or petroleum products to be transported
763-1 and specifies each petroleum product to be transported; and
763-2 (2) include, if required by commission order:
763-3 (A) the date and serial number of the tender
763-4 that authorizes the transportation or a seal, number, or other
763-5 evidence of the tender, if a tender is required;
763-6 (B) the amount and classification of each
763-7 petroleum product to be transported;
763-8 (C) the name and address of the transporter, the
763-9 name and address of the shipper, and the name and address of the
763-10 consignee, if known;
763-11 (D) the name and address of the operator of the
763-12 motor vehicle;
763-13 (E) the license plate number of the motor
763-14 vehicle;
763-15 (F) the date, time, and place at which the motor
763-16 vehicle was loaded and the destination, if known, of the load; and
763-17 (G) other related information as required by
763-18 commission order.
763-19 (c) If the form of the manifest is not prescribed by
763-20 commission order, each shipper required to issue a manifest to a
763-21 transporter shall use a form of manifest that is:
763-22 (1) commonly used in commercial transactions; or
763-23 (2) required by another state agency to accompany the
763-24 movement of gasoline. (V.A.C.S. Art. 6066a, Secs. 1(h) (part),
763-25 2(a) (part).)
764-1 Sec. 115.018. TRANSFER UNDER MANIFEST; RESTRICTIONS. (a) A
764-2 person authorized to transport oil or a petroleum product on a
764-3 manifest issued by a shipper may not receive:
764-4 (1) a commodity for transportation that is different
764-5 from the commodity described in the manifest; or
764-6 (2) oil or a petroleum product in an amount exceeding
764-7 the amount authorized by the manifest.
764-8 (b) A person authorized to transport oil or a petroleum
764-9 product by a shipper-issued manifest that bears on its face the
764-10 date and serial number of the tender may rely on the manifest
764-11 delivered to that person and each consignee or person to whom the
764-12 transporter delivers oil or a petroleum product covered by that
764-13 manifest may rely on the manifest as authority to receive the
764-14 commodity delivered if the manifest:
764-15 (1) appears to be valid on its face;
764-16 (2) is signed by the shipper; and
764-17 (3) bears the certificate of the shipper that the
764-18 transportation of the oil or petroleum product is authorized by the
764-19 tender.
764-20 (c) If the commission by order prohibits the transportation
764-21 of oil or a petroleum product by motor vehicle without a manifest
764-22 that shows the date and serial number of a tender authorizing the
764-23 transportation, a person may not ship or transport or cause to be
764-24 shipped or transported by motor vehicle oil or a petroleum product
764-25 unless the person furnishes the manifest to the operator of the
765-1 motor vehicle. The person transporting the oil or petroleum
765-2 product shall maintain the manifest in the vehicle at all times
765-3 during the shipment. If the person to whom the tender is issued is
765-4 the operator of the motor vehicle and the tender identifies the
765-5 motor vehicle by license number and covers one load, the person may
765-6 carry the tender in the vehicle in lieu of a manifest. (V.A.C.S.
765-7 Art. 6066a, Secs. 2(a) (part), (b) (part).)
765-8 Sec. 115.019. RECEIPT REQUIRED. A person who transports oil
765-9 or a petroleum product by motor vehicle under conditions that
765-10 require a tender or manifest shall obtain a receipt from each
765-11 person to whom any part of the oil or petroleum product is
765-12 delivered. The receipt must be on the reverse side of the tender
765-13 or manifest and must indicate:
765-14 (1) the number of gallons of oil or of each petroleum
765-15 product delivered;
765-16 (2) the date of delivery; and
765-17 (3) the signature and address of the purchaser or
765-18 consignee of the oil or petroleum product. (V.A.C.S. Art. 6066a,
765-19 Sec. 2(c) (part).)
765-20 Sec. 115.020. RECORDS; INSPECTION. (a) A person who
765-21 transports by motor vehicle and delivers oil or a petroleum product
765-22 shall keep in this state for two years each tender or manifest
765-23 issued to the person, together with the receipts and endorsements
765-24 on the tender or manifest.
765-25 (b) A tender or manifest is at all times subject to
766-1 inspection by the commission or an agent or inspector of the
766-2 commission. (V.A.C.S. Art. 6066a, Sec. 2(c) (part).)
766-3 (Sections 115.021-115.030 reserved for expansion
766-4 SUBCHAPTER C. FORFEITURE OF UNLAWFUL OIL OR PETROLEUM PRODUCT
766-5 Sec. 115.031. FORFEITURE AUTHORIZED. Unlawful oil and
766-6 unlawful petroleum products, regardless of the date of production
766-7 or manufacture, are declared to be a nuisance and shall be
766-8 forfeited to this state as provided by this subchapter.
766-9 (V.A.C.S. Art. 6066a, Sec. 10(a) (part).)
766-10 Sec. 115.032. REPORT TO ATTORNEY GENERAL. On the discovery
766-11 of unlawful oil or an unlawful petroleum product, a member of the
766-12 commission, an agent or employee of the commission, or a peace
766-13 officer shall immediately file with the attorney general a report
766-14 that describes the unlawful oil or unlawful petroleum product. The
766-15 report must state the ownership, party in possession, amount,
766-16 location, and classification of the oil or petroleum product.
766-17 (V.A.C.S. Art. 6066a, Sec. 10(a) (part).)
766-18 Sec. 115.033. ACTION IN REM. (a) If the attorney general
766-19 is advised of the presence of unlawful oil or an unlawful petroleum
766-20 product, the attorney general shall bring an action in rem in the
766-21 name of the state in Travis County or in the county in which the
766-22 oil or petroleum product is located against the unlawful oil or
766-23 petroleum product and against each person who owns, claims, or is
766-24 in possession of the oil or petroleum product.
766-25 (b) If it appears to the court from an examination of the
767-1 petition or after hearing evidence on the petition at a preliminary
767-2 hearing that the unlawful oil or petroleum product mentioned in the
767-3 petition is in danger of being removed, wasted, lost, or destroyed,
767-4 the court shall:
767-5 (1) issue restraining orders or injunctive relief,
767-6 either mandatory or prohibitive;
767-7 (2) appoint a receiver to take charge of the oil or
767-8 petroleum product; or
767-9 (3) direct the sheriff of the county in which the
767-10 unlawful oil or petroleum product is located to seize and impound
767-11 the oil or petroleum product pending further orders of the court.
767-12 (c) A party to the action may demand a trial by jury on any
767-13 issue of fact raised by the pleadings, and the case shall proceed
767-14 to trial in the manner provided for other civil cases. (V.A.C.S.
767-15 Art. 6066a, Secs. 10(b), (c) (part).)
767-16 Sec. 115.034. FORFEITURE SALE. (a) If, on the trial of the
767-17 action, the oil or petroleum product in controversy is found to be
767-18 unlawful, the court shall render judgment forfeiting the oil or
767-19 petroleum product to this state. The court shall issue an order of
767-20 sale directing the sheriff or a constable of the county in which
767-21 the oil or petroleum product is located to seize and sell the oil
767-22 or petroleum product in the same manner as personal property is
767-23 sold under execution. The court may order the oil or petroleum
767-24 product sold in whole or in part.
767-25 (b) The sale shall be conducted at the courthouse door of
768-1 the county in which the oil or petroleum product is located.
768-2 (c) The court shall apply the money realized from the sale
768-3 first to the payment of the costs of the action and expenses
768-4 incident to the sale of the oil or petroleum product. The court
768-5 may then use not more than one-half of the money to compensate a
768-6 person for expenses incurred in storing the unlawful oil or
768-7 petroleum product. Any balance remaining shall be remitted to the
768-8 comptroller.
768-9 (d) The officers of the court shall receive the same fees
768-10 provided by law for other civil actions. The sheriff who executes
768-11 the sale shall issue a bill of sale or certificate to the purchaser
768-12 of the oil or petroleum product, and the commission, on
768-13 presentation of that certificate of clearance, shall issue a
768-14 tender, if a tender is required, permitting the purchaser of the
768-15 oil or petroleum product to move the oil or petroleum product into
768-16 commerce. (V.A.C.S. Art. 6066a, Secs. 10(c) (part), (d).)
768-17 (Sections 115.035-115.040 reserved for expansion
768-18 SUBCHAPTER D. ENFORCEMENT AND PENALTIES
768-19 Sec. 115.041. ENFORCEMENT; ARRESTS. (a) To enforce this
768-20 chapter, an agent of the commission or a peace officer of this
768-21 state who has probable cause and reasonable grounds to believe that
768-22 a motor vehicle is transporting unlawful oil or an unlawful
768-23 petroleum product may stop the vehicle to take samples of the cargo
768-24 and to inspect the shipping papers.
768-25 (b) If, on examination of the motor vehicle, the agent or
769-1 officer finds that the vehicle is transporting unlawful oil or an
769-2 unlawful petroleum product or is transporting oil or a petroleum
769-3 product without a required tender, the agent or officer, with or
769-4 without a warrant, shall arrest the operator of the vehicle and
769-5 file a complaint against the operator under this chapter.
769-6 (c) In a criminal action under this chapter, the agent or
769-7 officer is not entitled to a fee for executing a warrant of arrest
769-8 or capias or for making an arrest with or without a warrant.
769-9 (V.A.C.S. Art. 6066a, Sec. 3.)
769-10 Sec. 115.042. PUBLICATION OF COMMISSION ORDER PRIOR TO
769-11 ENFORCEMENT. A criminal action may not be maintained against a
769-12 person involving the violation of a rule or order that the
769-13 commission adopts, modifies, or amends until the commission
769-14 publishes a complete copy of the rule or order. (V.A.C.S.
769-15 Art. 6066a, Sec. 5 (part).)
769-16 Sec. 115.043. CERTIFICATE AS EVIDENCE. (a) A certificate
769-17 that sets forth the terms of a commission order and states that the
769-18 order has been adopted and published and was in effect on a
769-19 specified date or during a specified period is prima facie evidence
769-20 of those facts if the certificate is:
769-21 (1) made under the seal of the commission; and
769-22 (2) executed by a member or the secretary of the
769-23 commission.
769-24 (b) The certificate is admissible in evidence in any civil
769-25 or criminal action that involves the order without further proof of
770-1 the adoption, publication, or contents of the order. (V.A.C.S.
770-2 Art. 6066a, Sec. 6.)
770-3 Sec. 115.044. SERVICE OF PROCESS. (a) In an action or
770-4 proceeding that involves the enforcement of this chapter or a
770-5 commission order, a Texas Ranger or agent of the commission may
770-6 serve any judicial process, warrant, subpoena, or writ as directed
770-7 by the court issuing the process and shall serve the process in the
770-8 same manner as a peace officer.
770-9 (b) The ranger or agent may serve the process, warrant, or
770-10 subpoena anywhere in this state although it may be directed to the
770-11 sheriff or a constable of a particular county.
770-12 (c) The ranger or agent shall make the same return as any
770-13 other officer, sign the return, and add under the name the title
770-14 "State Ranger" or "Agent, Railroad Commission of Texas," as
770-15 appropriate, which is sufficient to make the writ valid if the writ
770-16 is otherwise properly prepared.
770-17 (d) A Texas Ranger or agent of the commission is not
770-18 entitled to a fee in addition to that person's regular compensation
770-19 for a service provided under this section. (V.A.C.S. Art. 6066a,
770-20 Sec. 7.)
770-21 Sec. 115.045. PLEADING; PROOF. (a) In a complaint,
770-22 information, or indictment that alleges a violation of a commission
770-23 order, it is unnecessary to set forth fully the terms of the order
770-24 and sufficient to allege the substance of the order or the
770-25 pertinent terms of the order that are alleged to have been
771-1 violated.
771-2 (b) In a criminal action filed under this chapter, a
771-3 certificate executed by a member or the secretary of the commission
771-4 that shows the amount of allowable oil that may be produced per day
771-5 or during a stated period from an oil well, proof of production
771-6 from which is involved in the criminal action, is admissible and is
771-7 prima facie evidence of the facts stated in the certificate.
771-8 (c) This section does not limit the power of the commission
771-9 to adopt rules or orders under the oil and gas conservation
771-10 statutes of this state, including this title and Subtitle B, Title
771-11 3, Utilities Code. (V.A.C.S. Art. 6066a, Secs. 8(a), (b), (d).)
771-12 Sec. 115.046. VENUE. A criminal action maintained under
771-13 this chapter must be brought in:
771-14 (1) the county in which the oil or petroleum product
771-15 involved in the criminal action is received or delivered; or
771-16 (2) any county in or through which that oil or
771-17 petroleum product is transported. (V.A.C.S. Art. 6066a, Sec.
771-18 8(c).)
771-19 Sec. 115.047. PENALTIES. (a) A person commits an offense
771-20 if the person is the operator of a motor vehicle that transports
771-21 oil or a petroleum product and the person:
771-22 (1) intentionally fails to stop the vehicle on the
771-23 command of an agent of the commission or peace officer; or
771-24 (2) intentionally fails to permit inspection by the
771-25 agent or officer of the contents of or the shipping papers
772-1 accompanying the vehicle.
772-2 (b) A person commits an offense if the person:
772-3 (1) knowingly violates Section 115.011, 115.015(a),
772-4 115.016, 115.018, 115.019, or 115.020;
772-5 (2) knowingly ships or transports or causes to be
772-6 shipped or transported unlawful oil or an unlawful petroleum
772-7 product by motor vehicle over a public highway in this state;
772-8 (3) knowingly ships or transports or causes to be
772-9 shipped or transported by motor vehicle oil or a petroleum product
772-10 without the authority of a tender if a tender is required by a
772-11 commission order; or
772-12 (4) if a tender is required by a commission order,
772-13 knowingly receives from a motor vehicle or knowingly delivers to a
772-14 motor vehicle oil or a petroleum product that is not covered by a
772-15 tender authorizing the transportation of the oil or petroleum
772-16 product.
772-17 (c) A person commits an offense if the person:
772-18 (1) knowingly ships or transports or causes or permits
772-19 to be shipped or transported by pipeline, railway, boat, or barge
772-20 unlawful oil or an unlawful petroleum product;
772-21 (2) knowingly receives or delivers for transportation
772-22 by pipeline, railway, boat, or barge unlawful oil or an unlawful
772-23 petroleum product;
772-24 (3) knowingly ships or transports or causes or permits
772-25 to be shipped or transported by pipeline, railway, boat, or barge
773-1 oil or a petroleum product without authority of a tender if a
773-2 tender is required by a commission order; or
773-3 (4) knowingly receives or delivers by pipeline,
773-4 railway, boat, or barge oil or a petroleum product without
773-5 authority of a tender if a tender is required by a commission
773-6 order.
773-7 (d) An offense under this section is punishable by a fine of
773-8 not less than $50 or more than $200. (V.A.C.S. Art. 6066a, Secs.
773-9 4(a), (b), (d).)
773-10 SECTION 8. CONFORMING AMENDMENT. Subchapter D, Chapter 54,
773-11 Water Code, is amended by adding Section 54.2051 to read as
773-12 follows:
773-13 Sec. 54.2051. SERVICE CONNECTIONS TO CERTAIN DWELLING UNITS.
773-14 (a) If the tenant of an individually metered dwelling unit applies
773-15 to a district for utility service for that unit, the district may
773-16 not require that the service be connected in the name of the
773-17 landlord or owner of the unit.
773-18 (b) This section does not apply to a dwelling unit that is
773-19 located in a building that:
773-20 (1) contains two or more dwelling units; and
773-21 (2) is served by a master meter or demand meter.
773-22 (c) In this section, "individually metered dwelling unit"
773-23 means one or more rooms:
773-24 (1) rented for use as a permanent residence under a
773-25 single verbal or written rental agreement; and
774-1 (2) served by a utility meter that belongs to the
774-2 district and measures service only for that unit. (V.A.C.S.
774-3 Art. 1446d-1.)
774-4 SECTION 9. REPEALER. The following Acts and articles as
774-5 compiled in Vernon's Texas Civil Statutes are repealed: 1120;
774-6 1123; 1124a; 1416; 1417; 1418; 1419; 1420; 1421; 1422; 1426; 1427;
774-7 1428; 1429; 1430; 1431; 1432; 1432a; 1432b; 1433; 1433a; 1434;
774-8 1434a; 1435; 1435a; 1435a-1; 1435b; 1436; 1436a; 1436b; 1437; 1438;
774-9 1439; 1440; 1440a; Sections 1, 3, 4, 6, 7, and 8, 1446a; 1446b;
774-10 1446c-0; 1446c-1; 1446c-2; 1446d; 1446d-1; 1446d-2; 1446e; 1446f;
774-11 1446g; 1446h; 1508; 1509; 1510; 1511; 1512; 1528b; 1528c; 2372q-1;
774-12 6050; 6051; 6052; 6053; 6053-1; 6053-2; 6053-3; 6054; 6055; 6056;
774-13 6057; 6057a; 6057b; 6058; 6059; 6060; 6061; 6062; 6062A; 6063;
774-14 6064; 6065; 6066; 6066a; 6066f; 6066g; and 9021.
774-15 SECTION 10. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
774-16 This Act is enacted under Section 43, Article III, Texas
774-17 Constitution. This Act is intended as a recodification only, and
774-18 no substantive change in law is intended by this Act.
774-19 SECTION 11. EFFECTIVE DATE. This Act takes effect September
774-20 1, 1997.
774-21 SECTION 12. EMERGENCY. The importance of this legislation
774-22 and the crowded condition of the calendars in both houses create an
774-23 emergency and an imperative public necessity that the
774-24 constitutional rule requiring bills to be read on three several
774-25 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1751 passed the Senate on
April 24, 1997, by the following vote: Yeas 29, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1751 passed the House on
May 8, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor