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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of propane utility companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 101.002(b), Utilities Code, is amended |
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to read as follows: |
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(b) Gas utilities, including propane utilities, are by |
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definition monopolies in the areas they serve. As a result, the |
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normal forces of competition that regulate prices in a free |
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enterprise society do not operate. Public agencies regulate |
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utility rates, operations, and services as a substitute for |
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competition. |
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SECTION 2. Section 101.003, Utilities Code, is amended by |
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amending Subdivision (7) and adding Subdivision (11-a) to read as |
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follows: |
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(7) "Gas utility" includes a person or river authority |
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that owns or operates for compensation in this state equipment or |
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facilities to transmit or distribute combustible hydrocarbon |
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natural gas or synthetic natural gas for sale or resale in a manner |
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not subject to the jurisdiction of the Federal Energy Regulatory |
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Commission under the Natural Gas Act (15 U.S.C. Section 717 et |
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seq.). The term includes a lessee, trustee, or receiver of a gas |
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utility. The term includes a propane utility. The term does not |
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include: |
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(A) a municipal corporation; |
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(B) a person or river authority to the extent the |
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person or river authority: |
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(i) produces, gathers, transports, or sells |
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natural gas or synthetic natural gas under Section 121.004 or |
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121.005; |
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(ii) distributes or sells liquefied |
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petroleum gas; or |
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(iii) transports, delivers, or sells |
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natural gas for fuel for irrigation wells or any other direct |
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agricultural use; |
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(C) a person to the extent the person: |
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(i) sells natural gas for use as vehicle |
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fuel; |
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(ii) sells natural gas to a person who later |
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sells the natural gas for use as vehicle fuel; or |
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(iii) owns or operates equipment or |
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facilities to sell or transport natural gas for ultimate use as |
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vehicle fuel; |
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(D) a person not otherwise a gas utility who |
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furnishes gas or gas service only to itself, its employees, or its |
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tenants as an incident of employment or tenancy, if the gas or gas |
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service is not resold to or used by others; or |
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(E) a person excluded from being considered a gas |
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utility under Section 121.007. |
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(11-a) "Propane utility" means a person that is |
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registered with the railroad commission's liquefied petroleum gas |
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division and that owns or operates for compensation in this state |
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equipment or facilities to transmit, store, or distribute liquefied |
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petroleum gas to a residential neighborhood. The term includes a |
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lessee, trustee, or receiver of a propane utility. The term does |
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not include a person not otherwise a propane utility who furnishes |
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propane gas service only to itself, its employees, or its tenants as |
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an incident of employment or tenancy, if the propane gas service is |
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not resold or used by others. |
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SECTION 3. Section 102.001(a), Utilities Code, is amended |
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to read as follows: |
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(a) The railroad commission has exclusive original |
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jurisdiction over the rates and services of a gas utility: |
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(1) that distributes natural gas, propane gas, or |
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synthetic natural gas in: |
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(A) areas outside a municipality; and |
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(B) areas inside a municipality that surrenders |
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its jurisdiction to the railroad commission under Section 103.003; |
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and |
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(2) that transmits, transports, delivers, or sells |
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natural gas, propane gas, or synthetic natural gas to a gas utility |
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that distributes the gas to the public. |
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SECTION 4. Section 104.2545, Utilities Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) This section does not apply to a propane utility. |
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SECTION 5. Section 104.258, Utilities Code, is amended to |
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read as follows: |
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Sec. 104.258. DISCONNECTION OF NATURAL GAS OR PROPANE GAS |
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SERVICE. (a) In this section: |
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(1) "Extreme weather emergency" means a period during |
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which the previous day's highest temperature did not exceed 32 |
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degrees Fahrenheit and the temperature is predicted to remain at or |
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below that level for the next 24 hours according to the nearest |
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National Weather Service reports. |
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(2) "Provider" means: |
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(A) a gas utility, as defined by Sections 101.003 |
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and 121.001; [and] |
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(A-1) a propane utility, as defined by Section |
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101.003; and |
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(B) an owner, operator, or manager of a mobile |
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home park or apartment who purchases natural gas or propane gas |
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through a master meter for delivery to a dwelling unit in a mobile |
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home park or apartment house under Chapter 124. |
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(b) A provider may not disconnect natural gas or propane gas |
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service to a residential customer on a weekend day unless personnel |
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of the provider are available on that day to take payments and |
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reconnect service. |
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(c) A provider may not disconnect natural gas or propane gas |
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service to a residential customer during an extreme weather |
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emergency. The provider shall defer collection of the full payment |
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of bills that are due during an extreme weather emergency until |
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after the emergency is over and shall work with customers to |
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establish a pay schedule for deferred bills. |
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SECTION 6. This Act takes effect September 1, 2011. |