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SECTION 1. Title 3,
Utilities Code, is amended by adding Subtitle C to read as follows:
SUBTITLE C. PROPANE GAS
DISTRIBUTION SYSTEMS
CHAPTER 141. STANDARDS FOR
DISTRIBUTION SYSTEM RETAILERS
Sec. 141.001.
DEFINITIONS. In this chapter:
No
equivalent provision.
No
equivalent provision.
(1)
"Commission" means the Railroad Commission of Texas or its
successor agency.
(2) "Customer"
means a retail customer of propane gas purchased from and delivered by a
distribution system retailer through a propane gas system.
(3) "Distribution
system retailer":
(A) means a retail
propane dealer that:
(i) owns or operates for
compensation in this state a propane gas system; and
(ii) has a Class E license issued by the Gas Services Division of the license and
permit section of the commission or is an
active company representative or operations supervisor on file with the
section; and
(B) does not include a
person that furnishes propane gas only to the person, to the person's
employees, or to the person's tenants as an incident of employment or
tenancy, if the service is not resold to customers.
(4) "Markup"
means the retail price for a period divided by the spot price for that
period.
No
equivalent provision.
(5) "Propane
gas" means propane gas vapor, but does
not include liquefied petroleum gas as described by Chapter 113, Natural
Resources Code.
(6) "Propane gas
system" means a system that supplies
propane gas and includes equipment and facilities connected to a
contiguous piping system through which propane gas is supplied by a
distribution system retailer to at least 10 customers.
(7) "Rate"
means the price per cubic foot of gas passing through the meter levied,
charged, or collected by a distribution system retailer from a customer for
propane gas provided through a propane gas system to the customer exclusive
of any fees, taxes, or other charges. A conversion factor of 36.4 cubic
feet of propane gas per gallon shall be used for purposes of determining a
rate.
(8) "Retail
price" means the U.S. Propane Residential Price as reported by the
United States Energy Information Administration.
(9) "Spot
price" means the Mont Belvieu, TX Propane Spot Price FOB as reported
by the United States Energy Information Administration.
Sec. 141.002.
APPLICABILITY.
Sec. 141.003. RATE AND
FEE CEILINGS. (a) A distribution system
retailer may not charge a customer for propane gas provided through a propane
gas system to the customer a rate that exceeds the three-month rolling
average of the spot price per gallon at the Mont Belvieu supply point
multiplied by the rolling three-year average markup of retail price to spot
price as reported by the United States Energy Information Administration.
The allowable markup (three-year average) as of January 2013 is 2.1780
times spot. The commission shall change the markup in January of each year
by adding the average annual markup, as determined by the average of the
six monthly reporting periods of a calendar year from the United States
Energy Information Administration, of the three preceding years and
dividing by three.
The price per gallon shall
be converted to cubic foot rate by dividing the price per gallon by 36.4.
(b) A distribution system
retailer may charge customers special fees for services, including
connection, disconnection, account maintenance, late fees, and reconnection
fees, if the fees are reasonable and customary.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
(c) Nothing in this
section limits a distribution system retailer's ability to pass through to
a customer on a pro-rata actual-cost basis:
(1) a fee, including the actual cost of the performance guarantee;
(2) a fee increase; or
(3) a tax, other than
taxes assessed on the basis of income, gross income, property or margins,
assessment, surcharge, levy, or other charge imposed by a governmental
entity either:
(A) directly on a propane
gas system or any portion; or
(B) on a distribution
system retailer by virtue of its ownership or operation of a propane gas
system.
(d) A fee passed through
to a customer shall be:
(1) passed through
without any additional markup; and
(2) identified as a
separate item on a customer's bill.
No
equivalent provision.
Sec. 141.004.
DISCONNECTION OF PROPANE GAS SERVICE.
Sec. 141.005. CONTINUITY
OF SERVICE. (a) A distribution system retailer shall make all reasonable
efforts to prevent interruptions of service. When an interruption occurs,
the distribution system retailer shall reestablish service within the
shortest possible time consistent with prudent operating principles so that
the smallest number of customers is affected.
(b) Excluding service
interruptions under Section 141.006, a distribution system retailer shall
keep complete records of all emergency and scheduled service interruptions
lasting more than six hours and affecting more than two customers. The
records must describe the cause, date, length, and location of each
interruption, the approximate number of customers affected by the
interruption, and, in the case of an emergency interruption, the remedy and
steps taken to prevent a recurrence, if applicable. The distribution system
retailer shall submit copies of the service interruption records to the
commission quarterly.
(c) The distribution
system retailer shall notify the commission in writing not later than 48
hours after an interruption in service that affects the entire propane gas
system, lasts more than four hours, represents an existing or probable
hazard to persons or property, and requires immediate repair or continuous
action until the conditions are no longer hazardous. The notice shall
include the distribution system report of a service interruption. A written
report of a service interruption in another form, including a part of a
safety report, is sufficient to comply with this subsection.
(d) The commission shall
establish a toll-free number to enable a customer to notify the commission
of a service interruption that does not involve a refusal to serve under
Section 141.006 and to notify the commission that the customer believes the
distribution system retailer is charging an amount greater than allowed by
law. The commission shall immediately investigate the notification.
(e) To restore and
maintain service, the commission may assume temporary receivership of a
propane gas system that experiences a service interruption that affects the
entire propane gas system and that:
(1) lasts more than 48 hours;
(2) occurs more than
three times in one month; or
(3) is the result of the
distribution system retailer's failure to replenish the primary propane
tank for a reason other than a general local market disruption, a
restriction on wholesale propane supplies, or criminal activity.
(f) The commission may
draw down all or part of the financial surety posted under Section 141.009,
as required, to restore and maintain service under Subsection (e).
(g) If the commission
assumes temporary receivership of a propane gas system under Subsection
(e), it shall notify the distribution system retailer and shall take
whatever action is necessary and appropriate to reestablish service to
affected customers. The commission shall provide the distribution system retailer
72 hours to prepare and submit a plan to avoid continuing receivership.
(h) If a distribution
system retailer's inability to fulfill its financial obligations is the
cause of a service interruption described by Subsection (e), the commission
may delegate the operation of the propane gas system to a qualified homeowners' association or municipal
utility district until another distribution system retailer can assume
control over the propane gas system or until a court in bankruptcy
proceedings instructs otherwise.
(i) If the commission
determines that the distribution system retailer is able to resume
operations of the system, the commission shall notify the distribution
system retailer of its determination and allow the resumption of operation
after the distribution system retailer replaces the amount of the financial
surety that was used in receivership. The distribution system retailer
shall reimburse the commission for direct costs the commission may have
incurred as a result of receivership.
Sec. 141.006. GROUNDS FOR
REFUSAL TO SERVE.
Sec. 141.007. REASONABLE
TIME TO BEGIN SERVICE.
Sec. 141.008. CUSTOMER
COMPLAINTS. (a) A distribution system retailer that receives a written
complaint promptly and suitably shall
investigate the complaint and advise the complainant of the results of the
investigation. A distribution system retailer shall keep for at least
three years after the final disposition of each complaint a record that
includes each complainant's name and address, the date and nature of the
complaint, and the adjustment or disposition of the complaint. A
distribution system retailer is not required to keep a record of a
complaint that does not require the distribution system retailer to take
specific further action. A distribution system retailer shall notify each
complainant of the right to file a complaint with the commission if the
complainant is not satisfied by the distribution system retailer's
resolution of the matter.
(b) On receipt of a
written complaint from the commission on behalf of a customer, a
distribution system retailer promptly and suitably shall investigate and
notify the commission and complainant of the results of the investigation.
An initial response must be made not later than the third business day
after the date the distribution system retailer receives the complaint
electronically delivered to a minimum of two electronic addresses
designated by the distribution system retailer. A distribution system
retailer shall send a final and complete response to the commission and
complainant not later than the 15th day after the date the complaint was
received, unless the commission grants additional time before the
expiration of the 15-day period.
(c) The commission may
impose sanctions on a distribution system retailer if, after an
investigation, the commission determines that the distribution system
retailer has violated Section 141.003. Sanctions may include:
(1) ordering a
distribution system retailer to refund the amounts of any overcharges to
the distribution system retailer's customers; or
(2) drawing all or a
portion of the financial surety for the purpose of refunding the amounts of
any overcharges to the distribution system retailer's customers not
refunded before the 61st day after the date the commission orders a refund.
Sec. 141.009. PERFORMANCE
GUARANTEE. A distribution system retailer shall post, in favor of the
commission, financial surety in the form of a letter of credit or cash deposited with the commission in an
amount equal to the lesser of $3 multiplied by the number of gallons of
aggregate storage capacity in all of the propane gas systems operated by
the distribution system retailer or $250,000.
The issuer of a letter of credit used
to meet this requirement shall honor the letter
of credit if the issuer receives from the commission notice that the
letter of credit is due and payable.
The commission may draw all or a portion of the financial surety. The commission shall verify and adjust the
amount of the financial surety annually.
Sec. 141.010. RULES.
Sec. 141.011. DISCLOSURE
TO HOMEOWNERS. (a) A distribution system retailer shall provide to a homeowners' association or municipal
utility district with jurisdiction over property that receives service from
a distribution system retailer, or to the distribution system retailer's
customers if there is no homeowners' association or municipal utility
district, a disclosure that includes a physical or digital copy or website
posting of:
(1) a copy of this
chapter or a summary of the customers rights under this chapter; and
(2) for development
agreements entered into after September 1, 2013, a statement disclosing
the existence of a financial interest that a homeowners' association,
municipal utility district, or developer holds in the propane gas system.
(b) A homeowners'
association or municipal utility district that has jurisdiction over real
property that receives service from a distribution system retailer shall
provide the disclosure described by Subsection (a) to all homeowners along
with a list of the homeowners' covenants and deed restrictions. The
homeowners' association or municipal utility district shall post the
information required to be disclosed under this subsection on the
homeowners' association's or municipal utility district's website.
No
equivalent provision.
No
equivalent provision.
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SECTION 1. Title 3,
Utilities Code, is amended by adding Subtitle C to read as follows:
SUBTITLE C. PROPANE GAS
DISTRIBUTION SYSTEMS
CHAPTER 141. STANDARDS FOR
DISTRIBUTION SYSTEM RETAILERS
Sec. 141.001.
DEFINITIONS. In this chapter:
(1) "Allowable
markup" means the two-calendar-year rolling average of the differences
between the monthly reported E.I.A. retail prices per gallon during those
two calendar years and the corresponding spot prices per gallon reported
for the same two calendar years. The allowable markup for 2013 is $1.48 per
gallon.
(2) "Allowable spot
price" means the average of the spot prices for the two months
preceding the billing month. For the billing month of January 2013, the
allowable spot price was $0.844 per gallon. The commission shall identify
the allowable spot price each month and publish that price on the
commission's website.
(3)
"Commission" means the Railroad Commission of Texas or its
successor agency.
(4) "Customer"
means a retail customer of propane gas purchased from and delivered by a
distribution system retailer through a propane gas system.
(5) "Distribution
system retailer":
(A) means a retail
propane dealer that:
(i) owns or operates for
compensation in this state a propane gas system; and
(ii) has a Category E or K license issued by the applicable license and permit section of the
commission; and
(B) does not include a
person that furnishes propane gas only to the person, to the person's
employees, or to the person's tenants as an incident of employment or
tenancy, if the service is not resold to customers.
No
equivalent provision.
(6) "E.I.A. retail
price" means the monthly U.S. Propane Residential Price as reported by
the United States Energy Information Administration in dollars per gallon.
In January 2013, the E.I.A. retail price was $2.449 per gallon.
(7) "Propane
gas" means a normally gaseous
hydrocarbon defined as propane by the United States Energy Information
Administration.
(8) "Propane gas
system" means one or more propane
storage containers, equipment, and facilities connected to a
contiguous piping system through which propane gas is supplied by a distribution
system retailer to at least 10 customers.
(9) "Rate"
means the price per cubic foot of gas passing through the meter levied,
charged, or collected by a distribution system retailer from a customer for
propane gas provided through a propane gas system to the customer exclusive
of any fees, taxes, or other charges. A conversion factor of 36.4 cubic
feet of propane gas per gallon shall be used for purposes of determining a
rate.
No
equivalent provision.
(10) "Spot
price" means the Mont Belvieu, TX monthly
Propane Spot Price FOB per gallon as
reported by the United States Energy Information Administration in dollars per gallon. In January 2013, the spot
price was $0.838 per gallon.
Sec. 141.002.
APPLICABILITY.
Sec. 141.003. RATE AND
FEE CEILINGS. (a) In each billing month, a
distribution system retailer shall charge a customer a just and reasonable
rate for propane gas provided through a propane gas system to the customer.
The just and reasonable rate may not exceed the allowable spot price plus
the allowable markup. For a customer's bill that contains days in more
than one month, the month with the most days covered by the bill shall be
considered the billing month.
The price per gallon shall
be converted to the cubic foot rate by dividing the price per gallon by
36.4.
(b) In addition to the rate authorized by Subsection
(a), a distribution system retailer may charge customers special
fees for services, including connection, disconnection, account
maintenance, late fees, and reconnection fees, if the fees are reasonable
and customary.
If a distribution system
retailer charges a customer a fee for a service or occurrence described by
this subsection that does not exceed the fees allowed for the services and
occurrences described in Subdivisions (1)-(9), the amount of the fees shall
qualify as reasonable and customary for the purposes of this section. The
services and occurrences and related allowable fees are as follows:
(1) a recurring monthly
fee of $12.50 to maintain an active gas service account with the
distribution system retailer to be charged to a customer at a service
address where the propane gas usage history during the preceding 12-month
period exceeded 99 gallons;
(2) a recurring monthly
fee of $17.50 to maintain an active gas service account with the
distribution system retailer to be charged to a customer at a service
address where the propane gas usage history during the preceding 12-month
period did not exceed 99 gallons;
(3) a fee of $15 for a
late payment received by the distribution system retailer, provided the
bill was mailed or electronically transmitted 15 days before the date
payment is due;
(4) a fee of $25 to
disconnect or terminate service from an active or delinquent account;
(5) a fee of $65 for standard
next available reconnect service for an active or delinquent account;
(6) a fee of $125 for
accelerated reconnect service;
(7) a fee of $30 for a
dishonored or canceled payment received;
(8) a fee of $75 to
initiate service to a new customer; and
(9) a fee of $225 plus
charges for the estimated amount of gas consumed and damages for attempted
unauthorized gas consumption or diversion.
(c) The distribution
system retailer may adjust the fee limits described by Subsection (b) up or
down based on the 12-month changes in the Consumer Price Index for All
Urban Consumers, U.S. City Average, All Items, CPI-U, Not Seasonally
Adjusted, published by the Bureau of Labor Statistics of the United States
Department of Labor or a similar index if that index is unavailable. For
calculation purposes, the beginning base month is December 2012.
(d) Nothing in this
section limits a distribution system retailer's ability to pass through to
a customer as a separate charge on a
pro rata actual-cost basis:
(1) a tax, other than
taxes assessed on the basis of income, gross income, property, or margins; or
(2) an assessment,
surcharge, levy, fee, or other charge
imposed by a governmental entity, any one of
which begins or is increased on or after January 1, 2013, either:
(A) directly on a propane
gas system or any portion; or
(B) on a distribution
system retailer by virtue of its ownership or operation of a propane gas
system.
(e) A fee passed through
to a customer under Subsection (d)
shall be:
(1) passed through without
any additional markup; and
(2) identified as a
separate item on a customer's bill.
(f) Notwithstanding any
other provision in this section, this subtitle does not apply to a new
construction charge or an appliance repair charge.
Sec. 141.004. DISCONNECTION
OF PROPANE GAS SERVICE.
Sec. 141.005. CONTINUITY
OF SERVICE. (a) A distribution system retailer shall make all reasonable
efforts to prevent interruptions of service. When an interruption occurs,
the distribution system retailer shall reestablish service within the
shortest possible time consistent with prudent operating principles so that
the smallest number of customers are affected.
(b) Excluding service
interruptions under Section 141.006, a distribution system retailer shall
keep complete records of all emergency and scheduled service interruptions
lasting more than six hours and affecting more than two customers. The
records must describe the cause, date, length, and location of each
interruption, the approximate number of customers affected by the
interruption, and, in the case of an emergency interruption, the remedy and
steps taken to prevent a recurrence, if applicable. The distribution system
retailer shall submit copies of the service interruption records to the
commission quarterly.
(c) The distribution
system retailer shall notify the commission in writing not later than 48
hours after an interruption in service that affects the entire propane gas
system, lasts more than four hours, represents an existing or probable
hazard to persons or property, and requires immediate repair or continuous
action until the conditions are no longer hazardous. The notice shall
include the distribution system report of a service interruption. A written
report of a service interruption in another form, including a part of a
safety report, is sufficient to comply with this subsection.
(d) The commission shall
establish and maintain a toll-free telephone number to enable a customer to
notify the commission of a service interruption that does not involve a
refusal to serve under Section 141.006 and to notify the commission that
the customer believes the distribution system retailer is charging an
amount greater than allowed by law. The commission shall immediately
investigate the notification. A distribution
system retailer shall notify the customer of the commission phone number on
each billing statement.
(e) To restore and
maintain service, the commission may assume temporary receivership of a
propane gas system that experiences a service interruption that affects the
entire propane gas system and that:
(1) continues to affect the entire propane gas system after the
distribution system retailer has had direct access to and control of the
system for more than 48 hours after the service interruption began;
(2) occurs more than
three times in one month; or
(3) is the result of the
distribution system retailer's failure or
refusal to replenish the primary propane tank for a reason other
than a general local market disruption, a restriction on wholesale propane
supplies, mechanical failure, criminal
activity, or an act of God.
(f) The commission may
draw down all or part of the financial surety posted under Section 141.009,
as required, to restore and maintain service under Subsection (e).
(g) If the commission
assumes temporary receivership of a propane gas system under Subsection
(e), it shall notify the distribution system retailer and shall take
whatever action is necessary and appropriate to reestablish service to
affected customers. The commission shall provide the distribution system
retailer 72 hours to prepare and submit a plan to avoid continuing
receivership.
(h) If a distribution
system retailer's inability to fulfill its financial obligations is the
cause of a service interruption described by Subsection (e), the commission
may delegate the operation of the propane gas system to a receiver who agrees to operate the system. The
receiver shall operate the system until relieved by order of the
commission. A receiver ordered by the commission to assume operational
control over a system shall operate the system in accordance with law. The
commission shall, from the proceeds of the financial surety and no other
source, and to the extent available, pay the receiver all reasonable costs,
including reasonable legal fees, associated with accepting the assignment
and the resumption and stabilization of system operations plus a markup of
50 percent. Upon assuming operational control of the system, the receiver
shall earn, accrue, and receive all gas system revenues pertaining to
propane gas service provided to system customers accruing from that date
until the date it relinquishes operational control of the system. The
receiver is not liable for debt associated with the propane gas system that
was incurred before the date the receiver assumed operational control of
the system or debt the relieved distribution system retailer incurred
before the date the receiver assumed operational control of the system.
(i) If the commission
determines that the distribution system retailer is able to resume
operation of the system, the commission shall notify the distribution
system retailer of its determination and allow the resumption of operation
after the distribution system retailer replaces the amount of the financial
surety that was used in receivership. The distribution system retailer, or a party claiming title to the system by,
through, or under the retailer, shall reimburse the commission for
direct costs the commission may have incurred as a result of receivership and all unpaid money accrued or owed to the
receiver under this section.
Sec. 141.006. GROUNDS FOR
REFUSAL TO SERVE.
Sec. 141.007. REASONABLE
TIME TO BEGIN SERVICE.
Sec. 141.008. CUSTOMER
COMPLAINTS. (a) A distribution system retailer that receives a written
complaint shall promptly and suitably
investigate the complaint and advise the complainant of the results of the
investigation. A distribution system retailer shall keep for at least
three years after the final disposition of each complaint a record that
includes each complainant's name and address, the date and nature of the
complaint, and the adjustment or disposition of the complaint. A
distribution system retailer is not required to keep a record of a
complaint that does not require the distribution system retailer to take
specific further action. A distribution system retailer shall notify each
complainant of the right to file a complaint with the commission if the
complainant is not satisfied by the distribution system retailer's
resolution of the matter.
(b) On receipt of a
written complaint from the commission on behalf of a customer, a
distribution system retailer promptly and suitably shall investigate and
notify the commission and complainant of the results of the investigation.
An initial response must be made not later than the third business day
after the date the distribution system retailer receives the complaint
electronically delivered to a minimum of two electronic addresses
designated by the distribution system retailer. A distribution system
retailer shall send a final and complete response to the commission and
complainant not later than the 15th day after the date the complaint was
received, unless the commission grants additional time before the
expiration of the 15-day period.
(c) The commission may
impose sanctions on a distribution system retailer if, after an
investigation, the commission determines that the distribution system
retailer has violated Section 141.003. Sanctions may include:
(1) ordering a
distribution system retailer to refund the amounts of any overcharges to
the distribution system retailer's customers; or
(2) drawing down all or a portion of the financial
surety for the purpose of refunding the amounts of any overcharges to the
distribution system retailer's customers not refunded before the 61st day
after the date the commission orders a refund.
Sec. 141.009. PERFORMANCE
GUARANTEE. A distribution system retailer shall post, in favor of the
commission, financial surety in the form of a letter of credit, bond, or other acceptable form of financial surety
with the commission in an amount equal to the lesser of $3 multiplied by
the number of gallons of aggregate storage capacity in all of the propane
gas systems operated by the distribution system retailer or $50,000. The issuer of the financial surety used to meet this
requirement shall honor the financial surety
if the issuer receives from the commission notice that the financial surety is due and payable. The
commission may draw down all or a
portion of the financial surety. The
distribution system retailer shall provide the commission with verification
of the adequacy of the financial surety, and the commission may order the
distribution system retailer to adjust the amount of the financial
surety annually.
Sec. 141.010. RULES.
Sec. 141.011. DISCLOSURE
TO HOMEOWNERS. (a) A distribution system retailer shall record in the real property records of each county
in which the distribution system retailer owns or operates a propane gas system
a notice of disclosure of the existence of the propane gas system and the
service the retailer provides. The notice shall include:
(1) a service map reflecting the location of the subdivisions or
areas the distribution system retailer serves in the county;
(2) a copy of this
chapter or a summary of the customer's rights under this chapter; and
(3) for development
agreements entered into after September 1, 2013, a statement disclosing the
existence of any financial interest held by a homeowners' association,
municipal utility district, or developer in the propane gas system.
No
equivalent provision.
(b) If a person proposes
to sell or convey real property located in a propane gas system service
area owned by a distribution system retailer, the person must give to the
purchaser written notice as prescribed by this subsection. The notice must
include a copy of the notice recorded in the real property records as
required by Subsection (a), must be executed by the seller, and must read as
follows: "The real property, described below, that you are about to
purchase may be located in a propane gas system service area, which is
authorized by law to provide propane gas service to the properties in the
area pursuant to Chapter 141, Utilities Code. If your property is located
in a propane gas system service area, there may be special costs or charges
that you will be required to pay before you can receive propane gas
service. There may be a period required to construct lines or other
facilities necessary to provide propane gas service to your property. You
are advised to determine if the property is in a propane gas system service
area and contact the distribution system retailer to determine the cost
that you will be required to pay and the period, if any, that is required
to provide propane gas service to your property.
"The undersigned
purchaser hereby acknowledges receipt of the foregoing notice at or before
the execution of a binding contract for the purchase of the real property
described in the notice or at closing of purchase of the real property.
________________________________
Date
________________________________
Signature of
Purchaser"
(c) Each county shall
accept and record in its real property records a distribution system retailer's
service map presented to the county clerk under this section if the map
meets filing requirements, does not exceed 11 inches by 17 inches in size,
and is accompanied by the appropriate fee. The recording required by this
section must be completed not later than the later of January 1, 2014, or
the 90th day after the date a distribution system retailer completes
construction of a new propane gas system in the county.
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