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A BILL TO BE ENTITLED
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AN ACT
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relating to certificates of public convenience and necessity for |
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water or sewer services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.245, Water Code, is amended by adding |
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Subsection (f) to read as follows: |
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(f) If a municipality refuses to provide service to property |
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located in the municipality's extraterritorial jurisdiction, a |
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retail public utility may apply to the commission for a certificate |
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of public convenience and necessity to serve the property. The |
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commission may grant the certificate irrespective of whether the |
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municipality consents to the certification. |
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SECTION 2. Section 13.2451, Water Code, is amended to read |
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as follows: |
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Sec. 13.2451. EXTENSION BEYOND EXTRATERRITORIAL |
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JURISDICTION. (a) Except as provided by Subsection (b), if [If] a |
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municipality extends its extraterritorial jurisdiction to include |
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an area certificated to a retail public utility, the retail public |
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utility may continue and extend service in its area of public |
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convenience and necessity under the rights granted by its |
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certificate and this chapter. |
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(b) The commission may not extend a municipality's |
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certificate of public convenience and necessity beyond its |
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extraterritorial jurisdiction without the written consent of the |
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landowner who owns the property in which the certificate is to be |
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extended. The portion of any certificate of public convenience and |
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necessity that extends beyond the extraterritorial jurisdiction of |
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the municipality without the consent of the landowner is void. [A
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municipality that seeks to extend a certificate of public
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convenience and necessity beyond the municipality's
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extraterritorial jurisdiction must ensure that the municipality
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complies with Section 13.241 in relation to the area covered by the
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portion of the certificate that extends beyond the municipality's
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extraterritorial jurisdiction.
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[(c)
The commission, after notice to the municipality and an
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opportunity for a hearing, may decertify an area outside a
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municipality's extraterritorial jurisdiction if the municipality
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does not provide service to the area on or before the fifth
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anniversary of the date the certificate of public convenience and
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necessity was granted for the area. This subsection does not apply
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to a certificate of public convenience and necessity for an area:
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[(1)
that was transferred to a municipality on
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approval of the commission; and
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[(2)
in relation to which the municipality has spent
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public funds.
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[(d)
To the extent of a conflict between this section and
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Section 13.245, Section 13.245 prevails.] |
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SECTION 3. Sections 13.254(a-1) and (a-3), Water Code, are |
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amended to read as follows: |
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(a-1) As an alternative to decertification under Subsection |
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(a), the owner of a tract of land that is at least 50 acres and that |
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is not in a platted subdivision actually receiving water or sewer |
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service may petition the commission under this subsection for |
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expedited release of the area from a certificate of public |
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convenience and necessity so that the area may receive service from |
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another retail public utility. The fact that a certificate holder |
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is a borrower under a federal loan program is not a bar to a request |
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under this subsection for the release of the petitioner's land and |
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the receipt of services from an alternative provider. On the day |
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the petitioner submits the petition to the commission, the [The] |
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petitioner shall send [deliver], via certified mail, a copy of the |
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petition to the certificate holder, who may submit information to |
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the commission to controvert information submitted by the |
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petitioner. The petitioner must demonstrate that: |
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(1) a written request for service, other than a |
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request for standard residential or commercial service, has been |
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submitted to the certificate holder, identifying: |
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(A) the area for which service is sought; |
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(B) the timeframe within which service is needed |
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for current and projected service demands in the area; |
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(C) the level and manner of service needed for |
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current and projected service demands in the area; |
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(D) the approximate cost of the alternative |
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service; |
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(E) whether the petitioner intends for fire |
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protection to be part of the requested level of service; and |
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(F) [(D)] any additional information requested |
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by the certificate holder that is reasonably related to |
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determination of the capacity or cost for providing the service; |
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(2) the certificate holder has been allowed at least |
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90 calendar days to review and respond to the written request and |
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the information it contains; |
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(3) the certificate holder: |
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(A) has refused to provide the service; |
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(B) is not capable of providing the service on a |
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continuous and adequate basis within the timeframe, at the level, |
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at the same or a lower cost than the alternative provider is |
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capable, or in the manner reasonably needed or requested by current |
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and projected service demands in the area; or |
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(C) conditions the provision of service on the |
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payment of costs not properly allocable directly to the |
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petitioner's service request, as determined by the commission; and |
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(4) the alternate retail public utility from which the |
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petitioner will be requesting service is capable of providing |
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continuous and adequate service within the timeframe, at the level, |
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at the cost, and in the manner reasonably needed or requested by |
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current and projected service demands in the area. |
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(a-3) Within 60 [90] calendar days from the date the |
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commission determines the petition filed pursuant to Subsection |
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(a-1) to be administratively complete, the commission shall grant |
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the petition unless the commission makes an express finding that |
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the petitioner failed to satisfy the elements required in |
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Subsection (a-1) and supports its finding with separate findings |
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and conclusions for each element based solely on the information |
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provided by the petitioner and the certificate holder. The |
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commission may grant or deny a petition subject to terms and |
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conditions specifically related to the service request of the |
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petitioner and all relevant information submitted by the petitioner |
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and the certificate holder. In addition, the commission may |
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require an award of compensation as otherwise provided by this |
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section. If the certificate holder has never provided service to |
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the area the petitioner seeks to have released, the commission is |
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not required to find that the proposed alternative provider is |
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capable of providing better service than the certificate holder, |
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but only that the proposed alternative provider is capable of |
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providing the requested service. |
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SECTION 4. The changes made by this Act to Sections 13.245, |
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13.2451, and 13.254, Water Code, apply only to: |
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(1) a retail public utility's application for a |
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certificate of public convenience and necessity for a service area |
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in the extraterritorial jurisdiction of a municipality that is made |
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on or after the effective date of this Act; |
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(2) an extension of a municipality's certificate of |
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public convenience and necessity for a service area in the |
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extraterritorial jurisdiction of the municipality on or after the |
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effective date of this Act; and |
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(3) a petition to release an area from a certificate of |
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public convenience and necessity that is made on or after the |
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effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2009. |