By Armbrister S.B. No. 1751
75R5142 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the adoption of a nonsubstantive revision of statutes
1-3 relating to utilities, including conforming amendments, repeals,
1-4 and penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. ADOPTION OF CODE. The Utilities Code is adopted
1-7 to read as follows:
1-8 UTILITIES CODE
1-9 TITLE 1. GENERAL PROVISIONS
1-10 CHAPTER 1. GENERAL PROVISIONS
1-11 (Chapters 2-10 reserved for expansion)
1-12 TITLE 2. PUBLIC UTILITY REGULATORY ACT
1-13 SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES
1-14 CHAPTER 11. GENERAL PROVISIONS
1-15 CHAPTER 12. ORGANIZATION OF COMMISSION
1-16 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNCIL
1-17 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND
1-18 OTHER REGULATORY AUTHORITIES
1-19 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES
1-20 CHAPTER 16. COMMISSION FINANCING
1-21 (Chapters 17-30 reserved for expansion)
1-22 SUBTITLE B. ELECTRIC UTILITIES
1-23 CHAPTER 31. GENERAL PROVISIONS
1-24 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION AND
2-1 OTHER REGULATORY AUTHORITIES
2-2 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY
2-3 CHAPTER 34. ELECTRICAL PLANNING
2-4 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS
2-5 CHAPTER 36. RATES
2-6 CHAPTER 37. CERTIFICATES OF CONVENIENCE AND NECESSITY
2-7 CHAPTER 38. REGULATION OF ELECTRIC SERVICES
2-8 (Chapters 39-50 reserved for expansion)
2-9 SUBTITLE C. TELECOMMUNICATIONS UTILITIES
2-10 CHAPTER 51. GENERAL PROVISIONS
2-11 CHAPTER 52. COMMISSION JURISDICTION
2-12 CHAPTER 53. RATES
2-13 CHAPTER 54. CERTIFICATES
2-14 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES
2-15 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE AND UNIVERSAL
2-16 SERVICE FUND
2-17 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES
2-18 CHAPTER 58. INCENTIVE REGULATION
2-19 CHAPTER 59. INFRASTRUCTURE PLAN
2-20 CHAPTER 60. COMPETITIVE SAFEGUARDS
2-21 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
2-22 CHAPTER 62. BROADCASTER SAFEGUARDS
2-23 CHAPTER 63. ELECTRONIC PUBLISHING
2-24 (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)
3-26 SUBTITLE B. PROVISIONS REGULATING DELIVERY OF SERVICES
3-27 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES
4-1 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS
4-2 CHAPTER 183. UTILITY DEPOSITS
4-3 CHAPTER 184. ELECTRIC AND WATER METERING
4-4 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES
4-5 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY AND INTEGRITY
4-6 OF UTILITY SERVICE
4-7 UTILITIES CODE
4-8 TITLE 1. GENERAL PROVISIONS
4-9 CHAPTER 1. GENERAL PROVISIONS
4-10 Sec. 1.001. PURPOSE OF CODE
4-11 Sec. 1.002. CONSTRUCTION OF CODE
4-12 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE
4-13 CHAPTER 1. GENERAL PROVISIONS
4-14 Sec. 1.001. PURPOSE OF CODE. (a) This code is enacted as a
4-15 part of the state's continuing statutory revision program, begun by
4-16 the Texas Legislative Council in 1963 as directed by the
4-17 legislature in the law codified as Section 323.007, Government
4-18 Code. The program contemplates a topic-by-topic revision of the
4-19 state's general and permanent statute law without substantive
4-20 change.
4-21 (b) Consistent with the objectives of the statutory revision
4-22 program, the purpose of this code is to make the law encompassed by
4-23 this code more accessible and understandable by:
4-24 (1) rearranging the statutes into a more logical
4-25 order;
4-26 (2) employing a format and numbering system designed
4-27 to facilitate citation of the law and to accommodate future
5-1 expansion of the law;
5-2 (3) eliminating repealed, duplicative,
5-3 unconstitutional, expired, executed, and other ineffective
5-4 provisions; and
5-5 (4) restating the law in modern American English to
5-6 the greatest extent possible. (New.)
5-7 Sec. 1.002. CONSTRUCTION OF CODE. Chapter 311, Government
5-8 Code (Code Construction Act), applies to the construction of each
5-9 provision in this code except as otherwise expressly provided by
5-10 this code. (New.)
5-11 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE. A
5-12 reference in a law to a statute or a part of a statute revised by
5-13 this code is considered to be a reference to the part of this code
5-14 that revises that statute or part of that statute. (New.)
5-15 (Chapters 2-10 reserved for expansion)
5-16 TITLE 2. PUBLIC UTILITY REGULATORY ACT
5-17 SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES
5-18 CHAPTER 11. GENERAL PROVISIONS
5-19 Sec. 11.001. SHORT TITLE
5-20 Sec. 11.002. PURPOSE AND FINDINGS
5-21 Sec. 11.003. DEFINITIONS
5-22 Sec. 11.004. DEFINITION OF UTILITY
5-23 Sec. 11.005. ENTITY, COMPETITOR, OR SUPPLIER AFFECTED IN
5-24 MANNER OTHER THAN BY SETTING OF RATES
5-25 Sec. 11.006. PERSON DETERMINED TO BE AFFILIATE
5-26 Sec. 11.007. ADMINISTRATIVE PROCEDURE
5-27 Sec. 11.008. LIBERAL CONSTRUCTION
6-1 Sec. 11.009. CONSTRUCTION WITH FEDERAL AUTHORITY
6-2 CHAPTER 11. GENERAL PROVISIONS
6-3 Sec. 11.001. SHORT TITLE. This title may be cited as the
6-4 Public Utility Regulatory Act. (V.A.C.S. Art. 1446c-0, Sec.
6-5 1.001.)
6-6 Sec. 11.002. PURPOSE AND FINDINGS. (a) This title is
6-7 enacted to protect the public interest inherent in the rates and
6-8 services of public utilities. The purpose of this title is to
6-9 establish a comprehensive and adequate regulatory system for public
6-10 utilities to assure rates, operations, and services that are just
6-11 and reasonable to the consumers and to the utilities.
6-12 (b) Public utilities traditionally are by definition
6-13 monopolies in the areas they serve. As a result, the normal forces
6-14 of competition that regulate prices in a free enterprise society do
6-15 not operate. Public agencies regulate utility rates, operations,
6-16 and services as a substitute for competition. (V.A.C.S.
6-17 Art. 1446c-0, Sec. 1.002.)
6-18 Sec. 11.003. DEFINITIONS. In this title:
6-19 (1) "Affected person" means:
6-20 (A) a public utility affected by an action of a
6-21 regulatory authority;
6-22 (B) a person whose utility service or rates are
6-23 affected by a proceeding before a regulatory authority; or
6-24 (C) a person who:
6-25 (i) is a competitor of a public utility
6-26 with respect to a service performed by the utility; or
6-27 (ii) wants to enter into competition with
7-1 a public utility.
7-2 (2) "Affiliate" means:
7-3 (A) a person who directly or indirectly owns or
7-4 holds at least five percent of the voting securities of a public
7-5 utility;
7-6 (B) a person in a chain of successive ownership
7-7 of at least five percent of the voting securities of a public
7-8 utility;
7-9 (C) a corporation that has at least five percent
7-10 of its voting securities owned or controlled, directly or
7-11 indirectly, by a public utility;
7-12 (D) a corporation that has at least five percent
7-13 of its voting securities owned or controlled, directly or
7-14 indirectly, by:
7-15 (i) a person who directly or indirectly
7-16 owns or controls at least five percent of the voting securities of
7-17 a public utility; or
7-18 (ii) a person in a chain of successive
7-19 ownership of at least five percent of the voting securities of a
7-20 public utility;
7-21 (E) a person who is an officer or director of a
7-22 public utility or of a corporation in a chain of successive
7-23 ownership of at least five percent of the voting securities of a
7-24 public utility; or
7-25 (F) a person determined to be an affiliate under
7-26 Section 11.006.
7-27 (3) "Allocation" means the division among
8-1 municipalities or among municipalities and unincorporated areas of
8-2 the plant, revenues, expenses, taxes, and reserves of a utility
8-3 used to provide public utility service in a municipality or for a
8-4 municipality and unincorporated areas.
8-5 (4) "Commission" means the Public Utility Commission
8-6 of Texas.
8-7 (5) "Commissioner" means a member of the Public
8-8 Utility Commission of Texas.
8-9 (6) "Cooperative corporation" means:
8-10 (A) an electric cooperative corporation
8-11 organized under Chapter 161 or a predecessor statute to Chapter 161
8-12 and operating under that chapter; or
8-13 (B) a telephone cooperative corporation
8-14 organized under Chapter 162 or a predecessor statute to Chapter 162
8-15 and operating under that chapter.
8-16 (7) "Corporation" means a domestic or foreign
8-17 corporation, joint-stock company, or association, and each lessee,
8-18 assignee, trustee, receiver, or other successor in interest of the
8-19 corporation, company, or association, that has any of the powers or
8-20 privileges of a corporation not possessed by an individual or
8-21 partnership. The term does not include a municipal corporation,
8-22 except as expressly provided by this title.
8-23 (8) "Counsellor" means the public utility counsel.
8-24 (9) "Facilities" means all of the plant and equipment
8-25 of a public utility, and includes the tangible and intangible
8-26 property, without limitation, owned, operated, leased, licensed,
8-27 used, controlled, or supplied for, by, or in connection with the
9-1 business of the public utility.
9-2 (10) "Municipally owned utility" means a utility
9-3 owned, operated, and controlled by a municipality or by a nonprofit
9-4 corporation the directors of which are appointed by one or more
9-5 municipalities.
9-6 (11) "Office" means the Office of Public Utility
9-7 Counsel.
9-8 (12) "Order" means all or a part of a final
9-9 disposition by a regulatory authority in a matter other than
9-10 rulemaking, without regard to whether the disposition is
9-11 affirmative or negative or injunctive or declaratory. The term
9-12 includes:
9-13 (A) the issuance of a certificate of convenience
9-14 and necessity; and
9-15 (B) the setting of a rate.
9-16 (13) "Person" includes an individual, a partnership of
9-17 two or more persons having a joint or common interest, a mutual or
9-18 cooperative association, and a corporation.
9-19 (14) "Proceeding" means a hearing, investigation,
9-20 inquiry, or other procedure for finding facts or making a decision
9-21 under this title. The term includes a denial of relief or
9-22 dismissal of a complaint.
9-23 (15) "Rate" includes:
9-24 (A) any compensation, tariff, charge, fare,
9-25 toll, rental, or classification that is directly or indirectly
9-26 demanded, observed, charged, or collected by a public utility for a
9-27 service, product, or commodity described in the definition of
10-1 utility in Section 31.002 or 51.002; and
10-2 (B) a rule, practice, or contract affecting the
10-3 compensation, tariff, charge, fare, toll, rental, or
10-4 classification.
10-5 (16) "Ratemaking proceeding" means:
10-6 (A) a proceeding in which a rate is changed; and
10-7 (B) a proceeding initiated under Chapter 34.
10-8 (17) "Regulatory authority" means either the
10-9 commission or the governing body of a municipality, in accordance
10-10 with the context.
10-11 (18) "Service" has its broadest and most inclusive
10-12 meaning. The term includes any act performed, anything supplied,
10-13 and any facilities used or supplied by a public utility in the
10-14 performance of the utility's duties under this title to its
10-15 patrons, employees, other public utilities, and the public. The
10-16 term also includes the interchange of facilities between two or
10-17 more public utilities. The term does not include the printing,
10-18 distribution, or sale of advertising in a telephone directory.
10-19 (19) "Test year" means the most recent 12 months,
10-20 beginning on the first day of a calendar or fiscal year quarter,
10-21 for which operating data for a public utility are available.
10-22 (20) "Trade association" means a nonprofit,
10-23 cooperative, and voluntarily joined association of business or
10-24 professional persons who are employed by public utilities or
10-25 utility competitors to assist the public utility industry, a
10-26 utility competitor, or the industry's or competitor's employees in
10-27 dealing with mutual business or professional problems and in
11-1 promoting their common interest. (V.A.C.S. Art. 1446c-0, Secs.
11-2 1.003(1), (2) (part), (3), (4), (5), (6), (7), (8), (9), (10),
11-3 (11), (12), (13), (13A), (14), (15), (16), (17), (18); New.)
11-4 Sec. 11.004. DEFINITION OF UTILITY. In Subtitle A, "public
11-5 utility" or "utility" means:
11-6 (1) an electric utility, as that term is defined by
11-7 Section 31.002; or
11-8 (2) a public utility or utility, as those terms are
11-9 defined by Section 51.002. (V.A.C.S. Art. 1446c-0, Sec. 1.004.)
11-10 Sec. 11.005. ENTITY, COMPETITOR, OR SUPPLIER AFFECTED IN
11-11 MANNER OTHER THAN BY SETTING OF RATES. In this title, an entity,
11-12 including a utility competitor or utility supplier, is considered
11-13 to be affected in a manner other than by the setting of rates for
11-14 that class of customer if during a relevant calendar year the
11-15 entity provides fuel, utility-related goods, utility-related
11-16 products, or utility-related services to a regulated or unregulated
11-17 provider of telecommunications or electric services or to an
11-18 affiliate in an amount equal to the greater of $10,000 or 10
11-19 percent of the person's business. (V.A.C.S. Art. 1446c-0, Sec.
11-20 1.006.)
11-21 Sec. 11.006. PERSON DETERMINED TO BE AFFILIATE. (a) The
11-22 commission may determine that a person is an affiliate for purposes
11-23 of this title if the commission after notice and hearing finds that
11-24 the person:
11-25 (1) actually exercises substantial influence or
11-26 control over the policies and actions of a public utility;
11-27 (2) is a person over which a public utility exercises
12-1 the control described by Subdivision (1);
12-2 (3) is under common control with a public utility; or
12-3 (4) together with one or more persons with whom the
12-4 person is related by ownership or blood relationship, or by action
12-5 in concert, actually exercises substantial influence over the
12-6 policies and actions of a public utility even though neither person
12-7 may qualify as an affiliate individually.
12-8 (b) For purposes of Subsection (a)(3), "common control with
12-9 a public utility" means the direct or indirect possession of the
12-10 power to direct or cause the direction of the management and
12-11 policies of another, without regard to whether that power is
12-12 established through ownership or voting of securities or by any
12-13 other direct or indirect means. (V.A.C.S. Art. 1446c-0, Sec.
12-14 1.003(2) (part).)
12-15 Sec. 11.007. ADMINISTRATIVE PROCEDURE. (a) Chapter 2001,
12-16 Government Code, applies to a proceeding under this title except to
12-17 the extent inconsistent with this title.
12-18 (b) A communication of a member or employee of the
12-19 commission with any person, including a party or a party's
12-20 representative, is governed by Section 2001.061, Government Code.
12-21 (V.A.C.S. Art. 1446c-0, Sec. 1.005(a).)
12-22 Sec. 11.008. LIBERAL CONSTRUCTION. This title shall be
12-23 construed liberally to promote the effectiveness and efficiency of
12-24 regulation of public utilities to the extent that this construction
12-25 preserves the validity of this title and its provisions. (V.A.C.S.
12-26 Art. 1446c-0, Sec. 1.404 (part).)
12-27 Sec. 11.009. CONSTRUCTION WITH FEDERAL AUTHORITY. This
13-1 title shall be construed to apply so as not to conflict with any
13-2 authority of the United States. (V.A.C.S. Art. 1446c-0, Sec. 1.404
13-3 (part).)
13-4 CHAPTER 12. ORGANIZATION OF COMMISSION
13-5 SUBCHAPTER A. GENERAL PROVISIONS
13-6 Sec. 12.001. PUBLIC UTILITY COMMISSION OF TEXAS
13-7 Sec. 12.002. OFFICE
13-8 Sec. 12.003. SEAL
13-9 Sec. 12.004. REPRESENTATION BY THE ATTORNEY GENERAL
13-10 Sec. 12.005. APPLICATION OF SUNSET ACT
13-11 (Sections 12.006-12.050 reserved for expansion)
13-12 SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS
13-13 Sec. 12.051. APPOINTMENT; TERM
13-14 Sec. 12.052. PRESIDING OFFICER
13-15 Sec. 12.053. MEMBERSHIP QUALIFICATIONS
13-16 Sec. 12.054. REMOVAL OF COMMISSIONER
13-17 Sec. 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE
13-18 Sec. 12.056. EFFECT OF VACANCY
13-19 Sec. 12.057. COMPENSATION
13-20 Sec. 12.058. MEETINGS
13-21 Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS
13-22 (Sections 12.060-12.100 reserved for expansion)
13-23 SUBCHAPTER C. COMMISSION PERSONNEL
13-24 Sec. 12.101. COMMISSION EMPLOYEES
13-25 Sec. 12.102. DUTIES OF EMPLOYEES
13-26 Sec. 12.103. DUTIES OF EXECUTIVE DIRECTOR
13-27 Sec. 12.104. DUTIES OF GENERAL COUNSEL
14-1 Sec. 12.105. CAREER LADDER PROGRAM; PERFORMANCE
14-2 EVALUATIONS; MERIT PAY
14-3 Sec. 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT
14-4 (Sections 12.107-12.150 reserved for expansion)
14-5 SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES
14-6 Sec. 12.151. REGISTERED LOBBYIST
14-7 Sec. 12.152. CONFLICT OF INTEREST
14-8 Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION
14-9 Sec. 12.154. PROHIBITED ACTIVITIES
14-10 Sec. 12.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION
14-11 Sec. 12.156. QUALIFICATIONS AND STANDARDS OF
14-12 CONDUCT INFORMATION
14-13 (Sections 12.157-12.200 reserved for expansion)
14-14 SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS
14-15 Sec. 12.201. PUBLIC INTEREST INFORMATION
14-16 Sec. 12.202. PUBLIC PARTICIPATION
14-17 Sec. 12.203. ANNUAL REPORT
14-18 (Sections 12.204-12.250 reserved for expansion)
14-19 SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES
14-20 Sec. 12.251. DEFINITION
14-21 Sec. 12.252. COMMISSION AUTHORITY
14-22 Sec. 12.253. REPORT REQUIRED
14-23 Sec. 12.254. DISCRIMINATION PROHIBITED
14-24 Sec. 12.255. CAUSE OF ACTION NOT CREATED
14-25 CHAPTER 12. ORGANIZATION OF COMMISSION
14-26 SUBCHAPTER A. GENERAL PROVISIONS
14-27 Sec. 12.001. PUBLIC UTILITY COMMISSION OF TEXAS. The Public
15-1 Utility Commission of Texas exercises the jurisdiction and powers
15-2 conferred by this title. (V.A.C.S. Art. 1446c-0, Sec. 1.021(a)
15-3 (part).)
15-4 Sec. 12.002. OFFICE. (a) The principal office of the
15-5 commission is in Austin.
15-6 (b) The office shall be open daily during usual business
15-7 hours. The office is not required to be open on Saturday, Sunday,
15-8 or a legal holiday. (V.A.C.S. Art. 1446c-0, Sec. 1.031(a) (part).)
15-9 Sec. 12.003. SEAL. (a) The commission has a seal bearing
15-10 the inscription: "Public Utility Commission of Texas."
15-11 (b) The seal shall be affixed to each record and to an
15-12 authentication of a copy of a record. The commission may require
15-13 the seal to be affixed to other instruments.
15-14 (c) A court of this state shall take judicial notice of the
15-15 seal. (V.A.C.S. Art. 1446c-0, Sec. 1.032.)
15-16 Sec. 12.004. REPRESENTATION BY THE ATTORNEY GENERAL. The
15-17 attorney general shall represent the commission in a matter before
15-18 a state court, a court of the United States, or a federal public
15-19 utility regulatory commission. (V.A.C.S. Art. 1446c-0, Secs.
15-20 1.037, 1.301 (part).)
15-21 Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility
15-22 Commission of Texas is subject to Chapter 325, Government Code
15-23 (Texas Sunset Act). Unless continued in existence as provided by
15-24 that chapter, the commission is abolished and this title expires
15-25 September 1, 2001. (V.A.C.S. Art. 1446c-0, Sec. 1.022 (part).)
15-26 (Sections 12.006-12.050 reserved for expansion)
15-27 SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS
16-1 Sec. 12.051. APPOINTMENT; TERM. (a) The commission is
16-2 composed of three commissioners appointed by the governor with the
16-3 advice and consent of the senate.
16-4 (b) An appointment to the commission shall be made without
16-5 regard to the race, color, disability, sex, religion, age, or
16-6 national origin of the appointee.
16-7 (c) Commissioners serve staggered, six-year terms.
16-8 (V.A.C.S. Art. 1446c-0, Secs. 1.021(a) (part), (d).)
16-9 Sec. 12.052. PRESIDING OFFICER. (a) The governor shall
16-10 designate a commissioner as the presiding officer.
16-11 (b) The presiding officer serves in that capacity at the
16-12 pleasure of the governor. (V.A.C.S. Art. 1446c-0, Sec. 1.021(c).)
16-13 Sec. 12.053. MEMBERSHIP QUALIFICATIONS. (a) To be eligible
16-14 for appointment, a commissioner must be:
16-15 (1) a qualified voter;
16-16 (2) a citizen of the United States; and
16-17 (3) a representative of the general public.
16-18 (b) A person is not eligible for appointment as a
16-19 commissioner if the person:
16-20 (1) at any time during the two years preceding
16-21 appointment:
16-22 (A) personally served as an officer, director,
16-23 owner, employee, partner, or legal representative of a public
16-24 utility, affiliate, or direct competitor of a public utility; or
16-25 (B) owned or controlled, directly or indirectly,
16-26 stocks or bonds of any class with a value of $10,000 or more in a
16-27 public utility, affiliate, or direct competitor of a public
17-1 utility; or
17-2 (2) is not qualified to serve under Section 12.151,
17-3 12.152, or 12.153. (V.A.C.S. Art. 1446c-0, Secs. 1.023(a) (part),
17-4 (c).)
17-5 Sec. 12.054. REMOVAL OF COMMISSIONER. (a) It is a ground
17-6 for removal from the commission if a commissioner:
17-7 (1) does not have at the time of appointment or
17-8 maintain during service on the commission the qualifications
17-9 required by Section 12.053;
17-10 (2) violates a prohibition provided by Section 12.053
17-11 or by Subchapter D;
17-12 (3) cannot discharge the commissioner's duties for a
17-13 substantial part of the term for which the commissioner is
17-14 appointed because of illness or disability; or
17-15 (4) is absent from more than half of the regularly
17-16 scheduled commission meetings that the commissioner is eligible to
17-17 attend during a calendar year unless the absence is excused by
17-18 majority vote of the commission.
17-19 (b) The validity of an action of the commission is not
17-20 affected by the fact that the action is taken when a ground for
17-21 removal of a commissioner exists.
17-22 (c) If the executive director has knowledge that a potential
17-23 ground for removal exists, the executive director shall notify the
17-24 presiding officer of the commission of the potential ground. The
17-25 presiding officer shall then notify the governor and the attorney
17-26 general that a potential ground for removal exists. If the
17-27 potential ground for removal involves the presiding officer, the
18-1 executive director shall notify the next highest officer of the
18-2 commission, who shall notify the governor and the attorney general
18-3 that a potential ground for removal exists. (V.A.C.S.
18-4 Art. 1446c-0, Secs. 1.026(a), (b), (c).)
18-5 Sec. 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE. A
18-6 person may not seek nomination or election to another civil office
18-7 of this state or of the United States while serving as a
18-8 commissioner. If a commissioner files for nomination or election
18-9 to another civil office of this state or of the United States, the
18-10 person's office as commissioner immediately becomes vacant, and the
18-11 governor shall appoint a successor. (V.A.C.S. Art. 1446c-0, Sec.
18-12 1.024(f).)
18-13 Sec. 12.056. EFFECT OF VACANCY. A vacancy or
18-14 disqualification does not prevent the remaining commissioner or
18-15 commissioners from exercising the powers of the commission.
18-16 (V.A.C.S. Art. 1446c-0, Sec. 1.033 (part).)
18-17 Sec. 12.057. COMPENSATION. The annual salary of the
18-18 commissioners is determined by the legislature. (V.A.C.S.
18-19 Art. 1446c-0, Sec. 1.030.)
18-20 Sec. 12.058. MEETINGS. The commission shall hold meetings
18-21 at its office and at other convenient places in this state as
18-22 expedient and necessary for the proper performance of the
18-23 commission's duties. (V.A.C.S. Art. 1446c-0, Sec. 1.031(a)
18-24 (part).)
18-25 Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS. (a)
18-26 Before a commissioner may assume the commissioner's duties and
18-27 before the commissioner may be confirmed by the senate, the
19-1 commissioner must complete at least one course of the training
19-2 program established under this section.
19-3 (b) A training program established under this section shall
19-4 provide information to the commissioner regarding:
19-5 (1) the enabling legislation that created the
19-6 commission and its policymaking body to which the commissioner is
19-7 appointed to serve;
19-8 (2) the programs operated by the commission;
19-9 (3) the role and functions of the commission;
19-10 (4) the rules of the commission with an emphasis on
19-11 the rules that relate to disciplinary and investigatory authority;
19-12 (5) the current budget for the commission;
19-13 (6) the results of the most recent formal audit of the
19-14 commission;
19-15 (7) the requirements of Chapters 551, 552, and 2001,
19-16 Government Code;
19-17 (8) the requirements of the conflict of interest laws
19-18 and other laws relating to public officials; and
19-19 (9) any applicable ethics policies adopted by the
19-20 commission or the Texas Ethics Commission. (V.A.C.S. Art. 1446c-0,
19-21 Secs. 1.026(d), (e).)
19-22 (Sections 12.060-12.100 reserved for expansion)
19-23 SUBCHAPTER C. COMMISSION PERSONNEL
19-24 Sec. 12.101. COMMISSION EMPLOYEES. The commission shall
19-25 employ:
19-26 (1) an executive director;
19-27 (2) a general counsel; and
20-1 (3) officers and other employees the commission
20-2 considers necessary to administer this title. (V.A.C.S.
20-3 Art. 1446c-0, Sec. 1.028(a) (part).)
20-4 Sec. 12.102. DUTIES OF EMPLOYEES. The commission shall
20-5 develop and implement policies that clearly define the respective
20-6 responsibilities of the commission and commission employees.
20-7 (V.A.C.S. Art. 1446c-0, Sec. 1.028(a) (part).)
20-8 Sec. 12.103. DUTIES OF EXECUTIVE DIRECTOR. The executive
20-9 director is responsible for the daily operations of the commission
20-10 and shall coordinate the activities of commission employees.
20-11 (V.A.C.S. Art. 1446c-0, Sec. 1.028(b).)
20-12 Sec. 12.104. DUTIES OF GENERAL COUNSEL. The duties of the
20-13 general counsel include:
20-14 (1) gathering information relating to each matter
20-15 within the authority of the commission;
20-16 (2) accumulating evidence and other information for
20-17 the purposes specified by this section from:
20-18 (A) public utilities;
20-19 (B) the accounting, technical, and other
20-20 commission staff; and
20-21 (C) other sources;
20-22 (3) preparing and presenting the evidence described by
20-23 Subdivision (2) in a proceeding before the commission or the
20-24 commission's appointed examiner;
20-25 (4) conducting an investigation of a public utility
20-26 under the jurisdiction of the commission;
20-27 (5) preparing proposed changes in the rules of the
21-1 commission;
21-2 (6) preparing recommendations that the commission
21-3 investigate a matter within its authority;
21-4 (7) preparing recommendations and a report by
21-5 commission employees for inclusion in the annual report of the
21-6 commission;
21-7 (8) protecting and representing the public interest
21-8 and, as necessary to effect the objectives and purposes stated in
21-9 this title and protect the public interest, coordinating and
21-10 directing the preparation and presentation of evidence from
21-11 commission employees in each case before the commission; and
21-12 (9) performing any other activity reasonably necessary
21-13 to the general counsel's duties. (V.A.C.S. Art. 1446c-0, Secs.
21-14 1.028(c), (d).)
21-15 Sec. 12.105. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS;
21-16 MERIT PAY. (a) The executive director or the executive
21-17 director's designee shall develop an intra-agency career ladder
21-18 program that addresses opportunities for mobility and advancement
21-19 for commission employees. The program shall require intra-agency
21-20 posting of each position concurrently with any public posting.
21-21 (b) The executive director or the executive director's
21-22 designee shall develop a system of annual performance evaluations
21-23 that are based on documented employee performance. Merit pay for
21-24 commission employees must be based on the system established under
21-25 this subsection. (V.A.C.S. Art. 1446c-0, Sec. 1.029(a).)
21-26 Sec. 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
21-27 (a) The executive director or the executive director's designee
22-1 shall prepare and maintain a written policy statement to ensure
22-2 implementation of a program of equal employment opportunity under
22-3 which all personnel transactions are made without regard to race,
22-4 color, disability, sex, religion, age, or national origin.
22-5 (b) The policy statement under Subsection (a) must include:
22-6 (1) personnel policies, including policies related to
22-7 recruitment, evaluation, selection, appointment, training, and
22-8 promotion of personnel, that are in compliance with the
22-9 requirements of Chapter 21, Labor Code;
22-10 (2) a comprehensive analysis of the commission
22-11 workforce that meets federal and state guidelines;
22-12 (3) procedures by which a determination can be made
22-13 about the extent of underuse in the commission workforce of all
22-14 persons for whom federal or state guidelines encourage a more
22-15 equitable balance; and
22-16 (4) reasonable methods to appropriately address the
22-17 underuse.
22-18 (c) A policy statement prepared under Subsection (b) must:
22-19 (1) cover an annual period;
22-20 (2) be updated at least annually;
22-21 (3) be reviewed by the Commission on Human Rights for
22-22 compliance with Subsection (b)(1); and
22-23 (4) be filed with the governor's office.
22-24 (d) The governor's office shall deliver a biennial report to
22-25 the legislature based on the information received under Subsection
22-26 (c). The report may be made separately or as a part of other
22-27 biennial reports to the legislature. (V.A.C.S. Art. 1446c-0, Secs.
23-1 1.029(b), (c), (d).)
23-2 (Sections 12.107-12.150 reserved for expansion)
23-3 SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES
23-4 Sec. 12.151. REGISTERED LOBBYIST. A person required to
23-5 register as a lobbyist under Chapter 305, Government Code, because
23-6 of the person's activities for compensation on behalf of a
23-7 profession related to the operation of the commission may not serve
23-8 as a commissioner or act as general counsel to the commission.
23-9 (V.A.C.S. Art. 1446c-0, Sec. 1.023(d) (part).)
23-10 Sec. 12.152. CONFLICT OF INTEREST. (a) A person is not
23-11 eligible for appointment as a commissioner or for employment as the
23-12 general counsel or executive director of the commission if:
23-13 (1) the person serves on the board of directors of a
23-14 company that supplies fuel, utility-related services, or
23-15 utility-related products to regulated or unregulated electric or
23-16 telecommunications utilities; or
23-17 (2) the person or the person's spouse:
23-18 (A) is employed by or participates in the
23-19 management of a business entity or other organization that is
23-20 regulated by or receives funds from the commission;
23-21 (B) directly or indirectly owns or controls more
23-22 than a 10 percent interest or a pecuniary interest with a value
23-23 exceeding $10,000 in:
23-24 (i) a business entity or other
23-25 organization that is regulated by or receives funds from the
23-26 commission; or
23-27 (ii) a utility competitor, utility
24-1 supplier, or other entity affected by a commission decision in a
24-2 manner other than by the setting of rates for that class of
24-3 customer;
24-4 (C) uses or receives a substantial amount of
24-5 tangible goods, services, or funds from the commission, other than
24-6 compensation or reimbursement authorized by law for commission
24-7 membership, attendance, or expenses; or
24-8 (D) notwithstanding Paragraph (B), has an
24-9 interest in a mutual fund or retirement fund in which more than 10
24-10 percent of the fund's holdings at the time of appointment is in a
24-11 single utility, utility competitor, or utility supplier in this
24-12 state and the person does not disclose this information to the
24-13 governor, senate, commission, or other entity, as appropriate.
24-14 (b) A person otherwise ineligible because of Subsection
24-15 (a)(2)(B) may be appointed to the commission and serve as a
24-16 commissioner or may be employed as the general counsel or executive
24-17 director if the person:
24-18 (1) notifies the attorney general and commission that
24-19 the person is ineligible because of Subsection (a)(2)(B); and
24-20 (2) divests the person or the person's spouse of the
24-21 ownership or control:
24-22 (A) before beginning service or employment; or
24-23 (B) if the person is already serving or
24-24 employed, within a reasonable time. (V.A.C.S. Art. 1446c-0, Secs.
24-25 1.023(e), (f).)
24-26 Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION. A person
24-27 may not serve as a commissioner or be a commission employee who is
25-1 exempt from the state's position classification plan or is
25-2 compensated at or above the amount prescribed by the General
25-3 Appropriations Act for step 1, salary group 17, of the position
25-4 classification salary schedule if the person is:
25-5 (1) an officer, employee, or paid consultant of a
25-6 trade association; or
25-7 (2) the spouse of an officer, manager, or paid
25-8 consultant of a trade association. (V.A.C.S. Art. 1446c-0, Secs.
25-9 1.023(g), (h).)
25-10 Sec. 12.154. PROHIBITED ACTIVITIES. (a) During the period
25-11 of service with the commission, a commissioner or commission
25-12 employee may not:
25-13 (1) have a pecuniary interest, including an interest
25-14 as an officer, director, partner, owner, employee, attorney, or
25-15 consultant, in:
25-16 (A) a public utility or affiliate; or
25-17 (B) a person a significant portion of whose
25-18 business consists of furnishing goods or services to public
25-19 utilities or affiliates;
25-20 (2) directly or indirectly own or control securities
25-21 in a public utility, affiliate, or direct competitor of a public
25-22 utility; or
25-23 (3) accept a gift, gratuity, or entertainment from:
25-24 (A) a public utility, affiliate, or direct
25-25 competitor of a public utility;
25-26 (B) a person a significant portion of whose
25-27 business consists of furnishing goods or services to public
26-1 utilities, affiliates, or direct competitors of public utilities;
26-2 or
26-3 (C) an agent, representative, attorney,
26-4 employee, officer, owner, director, or partner of a person
26-5 described by Paragraph (A) or (B).
26-6 (b) A commissioner or a commission employee may not directly
26-7 or indirectly solicit, request from, or suggest or recommend to a
26-8 public utility or an agent, representative, attorney, employee,
26-9 officer, owner, director, or partner of a public utility the
26-10 appointment to a position or the employment of a person by the
26-11 public utility or affiliate.
26-12 (c) A person may not give or offer to give a gift, gratuity,
26-13 employment, or entertainment to a commissioner or commission
26-14 employee if that person is:
26-15 (1) a public utility, affiliate, or direct competitor
26-16 of a public utility;
26-17 (2) a person who furnishes goods or services to a
26-18 public utility, affiliate, or direct competitor of a public
26-19 utility; or
26-20 (3) an agent, representative, attorney, employee,
26-21 officer, owner, director, or partner of a person described by
26-22 Subdivision (1) or (2).
26-23 (d) A public utility, affiliate, or direct competitor of a
26-24 public utility or a person furnishing goods or services to a public
26-25 utility, affiliate, or direct competitor of a public utility may
26-26 not aid, abet, or participate with a commissioner, commission
26-27 employee, or former commission employee in conduct that violates
27-1 Subsection (a)(3) or (c).
27-2 (e) Subsection (a)(1) does not apply to an interest in a
27-3 nonprofit group or association, other than a trade association,
27-4 that is solely supported by gratuitous contributions of money,
27-5 property, or services.
27-6 (f) It is not a violation of this section if a commissioner
27-7 or commission employee, on becoming the owner of stocks, bonds, or
27-8 another pecuniary interest in a public utility, affiliate, or
27-9 direct competitor of a public utility otherwise than voluntarily,
27-10 informs the commission and the attorney general of the ownership
27-11 and divests the ownership or interest within a reasonable time.
27-12 (g) It is not a violation of this section if a pecuniary
27-13 interest is held indirectly by ownership of an interest in a
27-14 retirement system, institution, or fund that in the normal course
27-15 of business invests in diverse securities independently of the
27-16 control of the commissioner or commission employee.
27-17 (h) This section does not apply to a contract for a public
27-18 utility product or service or equipment for use of a public utility
27-19 product when a commissioner or commission employee is acting as a
27-20 consumer.
27-21 (i) In this section, a "pecuniary interest" includes income,
27-22 compensation, and payment of any kind, in addition to an ownership
27-23 interest. (V.A.C.S. Art. 1446c-0, Secs. 1.024(a) (part), (b), (c),
27-24 (d), (e).)
27-25 Sec. 12.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION.
27-26 (a) A commissioner, a commission employee, or an employee of the
27-27 State Office of Administrative Hearings involved in hearing utility
28-1 cases may not:
28-2 (1) be employed by a public utility that was in the
28-3 scope of the commissioner's or employee's official responsibility
28-4 while the commissioner or employee was associated with the
28-5 commission or the State Office of Administrative Hearings; or
28-6 (2) represent a person before the commission or State
28-7 Office of Administrative Hearings or a court in a matter:
28-8 (A) in which the commissioner or employee was
28-9 personally involved while associated with the commission or State
28-10 Office of Administrative Hearings; or
28-11 (B) that was within the commissioner's or
28-12 employee's official responsibility while the commissioner or
28-13 employee was associated with the commission or State Office of
28-14 Administrative Hearings.
28-15 (b) The prohibition of Subsection (a)(1) applies until the:
28-16 (1) second anniversary of the date the commissioner
28-17 ceases to serve as a commissioner; and
28-18 (2) first anniversary of the date the employee's
28-19 employment with the commission or State Office of Administrative
28-20 Hearings ceases.
28-21 (c) The prohibition of Subsection (a)(2) applies while a
28-22 commissioner, commission employee, or employee of the State Office
28-23 of Administrative Hearings involved in hearing utility cases is
28-24 associated with the commission or State Office of Administrative
28-25 Hearings and at any time after. (V.A.C.S. Art. 1446c-0, Secs.
28-26 1.025(a), (b).)
28-27 Sec. 12.156. QUALIFICATIONS AND STANDARDS OF CONDUCT
29-1 INFORMATION. The executive director or the executive director's
29-2 designee shall provide to commissioners and commission employees as
29-3 often as necessary information regarding their:
29-4 (1) qualifications for office or employment under this
29-5 title; and
29-6 (2) responsibilities under applicable laws relating to
29-7 standards of conduct for state officers and employees. (V.A.C.S.
29-8 Art. 1446c-0, Sec. 1.025(c).)
29-9 (Sections 12.157-12.200 reserved for expansion)
29-10 SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS
29-11 Sec. 12.201. PUBLIC INTEREST INFORMATION. (a) The
29-12 commission shall prepare information of public interest describing
29-13 the functions of the commission and the commission's procedures by
29-14 which a complaint is filed with and resolved by the commission.
29-15 The commission shall make the information available to the public
29-16 and appropriate state agencies.
29-17 (b) The commission by rule shall establish methods by which
29-18 consumers and service recipients are notified of the name, mailing
29-19 address, and telephone number of the commission for the purpose of
29-20 directing complaints to the commission. (V.A.C.S. Art. 1446c-0,
29-21 Secs. 1.036(a), (b).)
29-22 Sec. 12.202. PUBLIC PARTICIPATION. (a) The commission
29-23 shall develop and implement policies that provide the public with a
29-24 reasonable opportunity to appear before the commission and to speak
29-25 on any issue under the jurisdiction of the commission.
29-26 (b) The commission shall comply with federal and state laws
29-27 related to program and facility accessibility.
30-1 (c) The commission shall prepare and maintain a written plan
30-2 that describes how a person who does not speak English may be
30-3 provided reasonable access to the commission's programs and
30-4 services. (V.A.C.S. Art. 1446c-0, Secs. 1.031(b), 1.036(c).)
30-5 Sec. 12.203. ANNUAL REPORT. (a) The commission shall
30-6 prepare annually a complete and detailed written report accounting
30-7 for all funds received and disbursed by the commission during the
30-8 preceding fiscal year. The annual report must meet the reporting
30-9 requirements applicable to financial reporting in the General
30-10 Appropriations Act.
30-11 (b) In the annual report issued in the year preceding the
30-12 convening of each regular session of the legislature, the
30-13 commission shall make suggestions regarding modification and
30-14 improvement of the commission's statutory authority and for the
30-15 improvement of utility regulation in general that the commission
30-16 considers appropriate for protecting and furthering the interest of
30-17 the public. (V.A.C.S. Art. 1446c-0, Sec. 1.035.)
30-18 (Sections 12.204-12.250 reserved for expansion)
30-19 SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES
30-20 Sec. 12.251. DEFINITION. In this subchapter, "historically
30-21 underutilized business" has the meaning assigned by Section
30-22 481.101, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.407(c).)
30-23 Sec. 12.252. COMMISSION AUTHORITY. The commission, after
30-24 notice and hearing, may require each utility subject to regulation
30-25 under this title to make an effort to overcome the underuse of
30-26 historically underutilized businesses. (V.A.C.S. Art. 1446c-0,
30-27 Sec. 1.407(a).)
31-1 Sec. 12.253. REPORT REQUIRED. The commission shall require
31-2 each utility subject to regulation under this title to prepare and
31-3 submit to the commission a comprehensive annual report detailing
31-4 its use of historically underutilized businesses. (V.A.C.S.
31-5 Art. 1446c-0, Sec. 1.407(b).)
31-6 Sec. 12.254. DISCRIMINATION PROHIBITED. The rules adopted
31-7 under this subchapter may not be used to discriminate against a
31-8 citizen on the basis of sex, race, color, creed, or national
31-9 origin. (V.A.C.S. Art. 1446c-0, Sec. 1.407(d).)
31-10 Sec. 12.255. CAUSE OF ACTION NOT CREATED. This subchapter
31-11 does not create a public or private cause of action. (V.A.C.S.
31-12 Art. 1446c-0, Sec. 1.407(e).)
31-13 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNSEL
31-14 SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES
31-15 Sec. 13.001. OFFICE OF PUBLIC UTILITY COUNSEL
31-16 Sec. 13.002. APPLICATION OF SUNSET ACT
31-17 Sec. 13.003. OFFICE POWERS AND DUTIES
31-18 (Sections 13.004-13.020 reserved for expansion)
31-19 SUBCHAPTER B. PUBLIC UTILITY COUNSEL
31-20 Sec. 13.021. APPOINTMENT; TERM
31-21 Sec. 13.022. QUALIFICATIONS
31-22 Sec. 13.023. GROUNDS FOR REMOVAL
31-23 Sec. 13.024. PROHIBITED ACTS
31-24 (Sections 13.025-13.040 reserved for expansion)
31-25 SUBCHAPTER C. OFFICE PERSONNEL
31-26 Sec. 13.041. PERSONNEL
31-27 Sec. 13.042. RELATIONSHIP WITH TRADE ASSOCIATION
32-1 Sec. 13.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION
32-2 Sec. 13.044. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS;
32-3 MERIT PAY
32-4 Sec. 13.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT
32-5 Sec. 13.046. QUALIFICATIONS AND STANDARDS OF CONDUCT
32-6 INFORMATION
32-7 (Sections 13.047-13.060 reserved for expansion)
32-8 SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS
32-9 Sec. 13.061. PUBLIC INTEREST INFORMATION
32-10 Sec. 13.062. PUBLIC PARTICIPATION
32-11 Sec. 13.063. ANNUAL REPORT
32-12 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNSEL
32-13 SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES
32-14 Sec. 13.001. OFFICE OF PUBLIC UTILITY COUNSEL. The
32-15 independent office of public utility counsel represents the
32-16 interests of residential and small commercial consumers. (V.A.C.S.
32-17 Art. 1446c-0, Sec. 1.051(a).)
32-18 Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of
32-19 Public Utility Counsel is subject to Chapter 325, Government Code
32-20 (Texas Sunset Act). Unless continued in existence as provided by
32-21 that chapter, the office is abolished and this chapter expires
32-22 September 1, 2001. (V.A.C.S. Art. 1446c-0, Sec. 1.022 (part).)
32-23 Sec. 13.003. OFFICE POWERS AND DUTIES. (a) The office:
32-24 (1) shall assess the effect of utility rate changes
32-25 and other regulatory actions on residential consumers in this
32-26 state;
32-27 (2) shall advocate in the office's own name a position
33-1 determined by the counsellor to be most advantageous to a
33-2 substantial number of residential consumers;
33-3 (3) may appear or intervene, as a party or otherwise,
33-4 as a matter of right on behalf of:
33-5 (A) residential consumers, as a class, in any
33-6 proceeding before the commission; and
33-7 (B) small commercial consumers, as a class, in
33-8 any proceeding in which the counsellor determines that small
33-9 commercial consumers are in need of representation;
33-10 (4) may initiate or intervene as a matter of right or
33-11 otherwise appear in a judicial proceeding that involves an action
33-12 taken by an administrative agency in a proceeding in which the
33-13 counsellor is authorized to appear;
33-14 (5) is entitled to the same access as a party, other
33-15 than commission staff, to records gathered by the commission under
33-16 Section 14.204;
33-17 (6) is entitled to discovery of any nonprivileged
33-18 matter that is relevant to the subject matter of a proceeding or
33-19 petition before the commission;
33-20 (7) may represent an individual residential or small
33-21 commercial consumer with respect to the consumer's disputed
33-22 complaint concerning utility services that is unresolved before the
33-23 commission; and
33-24 (8) may recommend legislation to the legislature that
33-25 the office determines would positively affect the interests of
33-26 residential and small commercial consumers.
33-27 (b) This section does not limit the authority of the
34-1 commission to represent residential or small commercial consumers.
34-2 (c) The appearance of the counsellor in a proceeding does
34-3 not preclude the appearance of other parties on behalf of
34-4 residential or small commercial consumers. The counsellor may not
34-5 be grouped with any other party. (V.A.C.S. Art. 1446c-0, Sec.
34-6 1.054.)
34-7 (Sections 13.004-13.020 reserved for expansion)
34-8 SUBCHAPTER B. PUBLIC UTILITY COUNSEL
34-9 Sec. 13.021. APPOINTMENT; TERM. (a) The chief executive of
34-10 the office is the counsellor.
34-11 (b) The counsellor is appointed by the governor with the
34-12 advice and consent of the senate.
34-13 (c) The appointment of the counsellor shall be made without
34-14 regard to the race, color, disability, sex, religion, age, or
34-15 national origin of the appointee.
34-16 (d) The counsellor serves a two-year term that expires on
34-17 February 1 of the final year of the term. (V.A.C.S. Art. 1446c-0,
34-18 Sec. 1.051(b).)
34-19 Sec. 13.022. QUALIFICATIONS. (a) The counsellor must:
34-20 (1) be licensed to practice law in this state;
34-21 (2) have demonstrated a strong commitment to and
34-22 involvement in efforts to safeguard the rights of the public; and
34-23 (3) possess the knowledge and experience necessary to
34-24 practice effectively in utility proceedings.
34-25 (b) A person is not eligible for appointment as counsellor
34-26 if:
34-27 (1) the person or the person's spouse:
35-1 (A) is employed by or participates in the
35-2 management of a business entity or other organization that is
35-3 regulated by or receives funds from the commission;
35-4 (B) directly or indirectly owns or controls more
35-5 than a 10 percent interest or a pecuniary interest with a value
35-6 exceeding $10,000 in:
35-7 (i) a business entity or other
35-8 organization that is regulated by or receives funds from the
35-9 commission or the office; or
35-10 (ii) a utility competitor, utility
35-11 supplier, or other entity affected by a commission decision in a
35-12 manner other than by the setting of rates for that class of
35-13 customer;
35-14 (C) uses or receives a substantial amount of
35-15 tangible goods, services, or funds from the commission or the
35-16 office, other than compensation or reimbursement authorized by law
35-17 for service as counsellor or for commission membership, attendance,
35-18 or expenses; or
35-19 (D) notwithstanding Paragraph (B), has an
35-20 interest in a mutual fund or retirement fund in which more than 10
35-21 percent of the fund's holdings is in a single utility, utility
35-22 competitor, or utility supplier in this state and the person does
35-23 not disclose this information to the governor, senate, or other
35-24 entity, as appropriate; or
35-25 (2) the person is not qualified to serve under Section
35-26 13.042.
35-27 (c) A person required to register as a lobbyist under
36-1 Chapter 305, Government Code, because of the person's activities
36-2 for compensation on behalf of a profession related to the operation
36-3 of the commission or the office may not serve as counsellor.
36-4 (d) A person otherwise ineligible because of Subsection
36-5 (b)(1)(B) may be appointed and serve as counsellor if the person:
36-6 (1) notifies the attorney general and commission that
36-7 the person is ineligible because of Subsection (b)(1)(B); and
36-8 (2) divests the person or the person's spouse of the
36-9 ownership or control:
36-10 (A) before beginning service; or
36-11 (B) if the person is already serving, within a
36-12 reasonable time. (V.A.C.S. Art. 1446c-0, Secs. 1.023(d) (part),
36-13 1.051(c), (d), (e), (g).)
36-14 Sec. 13.023. GROUNDS FOR REMOVAL. (a) It is a ground for
36-15 removal from office if the counsellor:
36-16 (1) does not have at the time of appointment or
36-17 maintain during service as counsellor the qualifications required
36-18 by Section 13.022;
36-19 (2) violates a prohibition provided by Section 13.022,
36-20 13.042, or 13.043; or
36-21 (3) cannot discharge the counsellor's duties for a
36-22 substantial part of the term for which the counsellor is appointed
36-23 because of illness or disability.
36-24 (b) The validity of an action of the office is not affected
36-25 by the fact that the action is taken when a ground for removal of
36-26 the counsellor exists. (V.A.C.S. Art. 1446c-0, Sec. 1.0511.)
36-27 Sec. 13.024. PROHIBITED ACTS. (a) The counsellor may not:
37-1 (1) have a direct or indirect interest in a utility
37-2 company regulated under this title; or
37-3 (2) provide legal services directly or indirectly to
37-4 or be employed in any capacity by a utility company regulated under
37-5 this title, its parent, or its subsidiary companies, corporations,
37-6 or cooperatives or a utility competitor, utility supplier, or other
37-7 entity affected in a manner other than by the setting of rates for
37-8 that class of customer.
37-9 (b) The prohibition under Subsection (a) applies during the
37-10 period of the counsellor's service and until the second anniversary
37-11 of the date the counsellor ceases to serve as counsellor.
37-12 (c) This section does not prohibit a person from otherwise
37-13 engaging in the private practice of law after the person ceases to
37-14 serve as counsellor. (V.A.C.S. Art. 1446c-0, Sec. 1.052.)
37-15 (Sections 13.025-13.040 reserved for expansion)
37-16 SUBCHAPTER C. OFFICE PERSONNEL
37-17 Sec. 13.041. PERSONNEL. (a) The counsellor may employ
37-18 lawyers, economists, engineers, consultants, statisticians,
37-19 accountants, clerical staff, and other employees as the counsellor
37-20 considers necessary to carry out this chapter.
37-21 (b) An employee receives compensation as prescribed by the
37-22 legislature from the assessment imposed by Subchapter A, Chapter
37-23 16. (V.A.C.S. Art. 1446c-0, Sec. 1.053(a).)
37-24 Sec. 13.042. RELATIONSHIP WITH TRADE ASSOCIATION. A person
37-25 may not serve as counsellor or be an employee of the office who is
37-26 exempt from the state's position classification plan or is
37-27 compensated at or above the amount prescribed by the General
38-1 Appropriations Act for step 1, salary group 17, of the position
38-2 classification salary schedule if the person is:
38-3 (1) an officer, employee, or paid consultant of a
38-4 trade association; or
38-5 (2) the spouse of an officer, manager, or paid
38-6 consultant of a trade association. (V.A.C.S. Art. 1446c-0, Sec.
38-7 1.051(f).)
38-8 Sec. 13.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION.
38-9 (a) The counsellor or an employee of the office may not:
38-10 (1) be employed by a public utility that was in the
38-11 scope of the counsellor's or employee's official responsibility
38-12 while the counsellor or employee was associated with the office; or
38-13 (2) represent a person before the commission or a
38-14 court in a matter:
38-15 (A) in which the counsellor or employee was
38-16 personally involved while associated with the office; or
38-17 (B) that was within the counsellor's or
38-18 employee's official responsibility while the counsellor or employee
38-19 was associated with the office.
38-20 (b) The prohibition of Subsection (a)(1) applies until the:
38-21 (1) second anniversary of the date the counsellor
38-22 ceases to serve as a counsellor; and
38-23 (2) first anniversary of the date the employee's
38-24 employment with the office ceases.
38-25 (c) The prohibition of Subsection (a)(2) applies while a
38-26 counsellor or employee of the office is associated with the office
38-27 and at any time after. (V.A.C.S. Art. 1446c-0, Sec. 1.0512.)
39-1 Sec. 13.044. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS;
39-2 MERIT PAY. (a) The counsellor or the counsellor's designee shall
39-3 develop an intra-agency career ladder program that addresses
39-4 opportunities for mobility and advancement for office employees.
39-5 The program shall require intra-agency postings of each position
39-6 concurrently with any public posting.
39-7 (b) The counsellor or the counsellor's designee shall
39-8 develop a system of annual performance evaluations that are based
39-9 on documented employee performance. Merit pay for office employees
39-10 must be based on the system established under this subsection.
39-11 (V.A.C.S. Art. 1446c-0, Sec. 1.053(b).)
39-12 Sec. 13.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
39-13 (a) The counsellor or the counsellor's designee shall prepare and
39-14 maintain a written policy statement to ensure implementation of a
39-15 program of equal employment opportunity under which all personnel
39-16 transactions are made without regard to race, color, disability,
39-17 sex, religion, age, or national origin.
39-18 (b) The policy statement under Subsection (a) must include:
39-19 (1) personnel policies, including policies related to
39-20 recruitment, evaluation, selection, appointment, training, and
39-21 promotion of personnel, that are in compliance with the
39-22 requirements of Chapter 21, Labor Code;
39-23 (2) a comprehensive analysis of the office workforce
39-24 that meets federal and state guidelines;
39-25 (3) procedures by which a determination can be made
39-26 about the extent of underuse in the office workforce of all persons
39-27 for whom federal or state guidelines encourage a more equitable
40-1 balance; and
40-2 (4) reasonable methods to appropriately address the
40-3 underuse.
40-4 (c) A policy statement prepared under Subsection (b) must:
40-5 (1) cover an annual period;
40-6 (2) be updated at least annually;
40-7 (3) be reviewed by the Commission on Human Rights for
40-8 compliance with Subsection (b)(1); and
40-9 (4) be filed with the governor's office.
40-10 (d) The governor's office shall deliver a biennial report to
40-11 the legislature based on the information received under Subsection
40-12 (c). The report may be made separately or as a part of other
40-13 biennial reports to the legislature. (V.A.C.S. Art. 1446c-0, Secs.
40-14 1.053(c), (d).)
40-15 Sec. 13.046. QUALIFICATIONS AND STANDARDS OF CONDUCT
40-16 INFORMATION. The office shall provide to office employees as often
40-17 as necessary information regarding their:
40-18 (1) qualifications for employment under this title;
40-19 and
40-20 (2) responsibilities under applicable laws relating to
40-21 standards of conduct for employees. (V.A.C.S. Art. 1446c-0, Sec.
40-22 1.053(e).)
40-23 (Sections 13.047-13.060 reserved for expansion)
40-24 SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS
40-25 Sec. 13.061. PUBLIC INTEREST INFORMATION. The office shall
40-26 prepare information of public interest describing the functions of
40-27 the office. The office shall make the information available to the
41-1 public and appropriate state agencies. (V.A.C.S. Art. 1446c-0,
41-2 Sec. 1.0513(b).)
41-3 Sec. 13.062. PUBLIC PARTICIPATION. (a) The office shall
41-4 comply with federal and state laws related to program and facility
41-5 accessibility.
41-6 (b) The office shall prepare and maintain a written plan
41-7 that describes how a person who does not speak English may be
41-8 provided reasonable access to the office's programs and services.
41-9 (V.A.C.S. Art. 1446c-0, Sec. 1.0513(c).)
41-10 Sec. 13.063. ANNUAL REPORT. The office shall prepare
41-11 annually a complete and detailed written report accounting for all
41-12 funds received and disbursed by the office during the preceding
41-13 fiscal year. The annual report must meet the reporting
41-14 requirements applicable to financial reporting in the General
41-15 Appropriations Act. (V.A.C.S. Art. 1446c-0, Sec. 1.0513(a).)
41-16 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND
41-17 OTHER REGULATORY AUTHORITIES
41-18 SUBCHAPTER A. GENERAL POWERS OF COMMISSION
41-19 Sec. 14.001. POWER TO REGULATE AND SUPERVISE
41-20 Sec. 14.002. RULES
41-21 Sec. 14.003. COMMISSION POWERS RELATING TO REPORTS
41-22 Sec. 14.004. REPORT OF SUBSTANTIAL INTEREST
41-23 Sec. 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION
41-24 OF SERVICES TO ELDERLY AND DISABLED
41-25 Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF
41-26 EMPLOYMENT; PRESUMPTION OF REASONABLENESS
41-27 Sec. 14.007. ASSISTANCE TO MUNICIPALITY
42-1 Sec. 14.008. MUNICIPAL FRANCHISES
42-2 (Sections 14.009-14.050 reserved for expansion)
42-3 SUBCHAPTER B. PRACTICE AND PROCEDURE
42-4 Sec. 14.051. PROCEDURAL POWERS
42-5 Sec. 14.052. RULES
42-6 Sec. 14.053. POWERS AND DUTIES OF STATE OFFICE OF
42-7 ADMINISTRATIVE HEARINGS
42-8 Sec. 14.054. SETTLEMENTS
42-9 Sec. 14.055. RECORD OF PROCEEDINGS
42-10 Sec. 14.056. RIGHT TO BE HEARD
42-11 Sec. 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND EXHIBITS;
42-12 PUBLIC RECORDS
42-13 (Sections 14.058-14.100 reserved for expansion)
42-14 SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS
42-15 Sec. 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION
42-16 CONSIDERATION
42-17 Sec. 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC
42-18 UTILITY
42-19 Sec. 14.103. REPORT OF LOAN TO STOCKHOLDERS
42-20 (Sections 14.104-14.150 reserved for expansion)
42-21 SUBCHAPTER D. RECORDS
42-22 Sec. 14.151. RECORDS OF PUBLIC UTILITY
42-23 Sec. 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS STATE
42-24 Sec. 14.153. COMMUNICATIONS WITH REGULATORY AUTHORITY
42-25 Sec. 14.154. JURISDICTION OVER AFFILIATE
42-26 (Sections 14.155-14.200 reserved for expansion)
42-27 SUBCHAPTER E. AUDITS AND INSPECTIONS
43-1 Sec. 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS
43-2 Sec. 14.202. MANAGEMENT AUDITS BY COMMISSION
43-3 Sec. 14.203. AUDIT OF ACCOUNTS
43-4 Sec. 14.204. INSPECTION
43-5 Sec. 14.205. EXAMINATIONS UNDER OATH
43-6 Sec. 14.206. ENTERING PREMISES OF PUBLIC UTILITY
43-7 Sec. 14.207. PRODUCTION OF OUT-OF-STATE RECORDS
43-8 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND
43-9 OTHER REGULATORY AUTHORITIES
43-10 SUBCHAPTER A. GENERAL POWERS OF COMMISSION
43-11 Sec. 14.001. POWER TO REGULATE AND SUPERVISE. The
43-12 commission has the general power to regulate and supervise the
43-13 business of each public utility within its jurisdiction and to do
43-14 anything specifically designated or implied by this title that is
43-15 necessary and convenient to the exercise of that power and
43-16 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 1.101(a).)
43-17 Sec. 14.002. RULES. The commission shall adopt and enforce
43-18 rules reasonably required in the exercise of its powers and
43-19 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 1.101(b) (part).)
43-20 Sec. 14.003. COMMISSION POWERS RELATING TO REPORTS. The
43-21 commission may:
43-22 (1) require a public utility to report to the
43-23 commission information relating to:
43-24 (A) the utility; and
43-25 (B) a transaction between the utility and an
43-26 affiliate inside or outside this state, to the extent that the
43-27 transaction is subject to the commission's jurisdiction;
44-1 (2) establish the form for a report;
44-2 (3) determine the time for a report and the frequency
44-3 with which the report is to be made;
44-4 (4) require that a report be made under oath;
44-5 (5) require the filing with the commission of a copy
44-6 of:
44-7 (A) a contract or arrangement between a public
44-8 utility and an affiliate;
44-9 (B) a report filed with a federal agency or a
44-10 governmental agency or body of another state; and
44-11 (C) an annual report that shows each payment of
44-12 compensation, other than salary or wages subject to federal income
44-13 tax withholding:
44-14 (i) to residents of this state;
44-15 (ii) with respect to legal,
44-16 administrative, or legislative matters in this state; or
44-17 (iii) for representation before the
44-18 legislature of this state or any governmental agency or body; and
44-19 (6) require that a contract or arrangement described
44-20 by Subdivision (5)(A) that is not in writing be reduced to writing
44-21 and filed with the commission. (V.A.C.S. Art. 1446c-0, Sec.
44-22 1.202(a).)
44-23 Sec. 14.004. REPORT OF SUBSTANTIAL INTEREST. The commission
44-24 may require disclosure of the identity and respective interests of
44-25 each owner of at least one percent of the voting securities of a
44-26 public utility or its affiliate. (V.A.C.S. Art. 1446c-0, Sec.
44-27 1.272.)
45-1 Sec. 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION
45-2 OF SERVICES TO ELDERLY AND DISABLED. The commission may establish
45-3 criteria and guidelines with the utility industry relating to
45-4 industry procedures used in terminating services to the elderly and
45-5 disabled. (V.A.C.S. Art. 1446c-0, Sec. 1.405.)
45-6 Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF
45-7 EMPLOYMENT; PRESUMPTION OF REASONABLENESS. The commission may not
45-8 interfere with employee wages and benefits, working conditions, or
45-9 other terms or conditions of employment that are the product of a
45-10 collective bargaining agreement recognized under federal law. An
45-11 employee wage rate or benefit that is the product of the collective
45-12 bargaining is presumed to be reasonable. (V.A.C.S. Art. 1446c-0,
45-13 Sec. 1.206.)
45-14 Sec. 14.007. ASSISTANCE TO MUNICIPALITY. On request by the
45-15 governing body of a municipality, the commission may provide
45-16 commission employees as necessary to advise and consult with the
45-17 municipality on a pending matter. (V.A.C.S. Art. 1446c-0, Sec.
45-18 1.202(b).)
45-19 Sec. 14.008. MUNICIPAL FRANCHISES. (a) This title does not
45-20 restrict the rights and powers of a municipality to grant or refuse
45-21 a franchise to use the streets and alleys in the municipality or to
45-22 make a statutory charge for that use.
45-23 (b) A franchise agreement may not limit or interfere with a
45-24 power conferred on the commission by this title. (V.A.C.S.
45-25 Art. 1446c-0, Sec. 1.103.)
45-26 (Sections 14.009-14.050 reserved for expansion)
46-1 SUBCHAPTER B. PRACTICE AND PROCEDURE
46-2 Sec. 14.051. PROCEDURAL POWERS. The commission may:
46-3 (1) call and hold a hearing;
46-4 (2) administer an oath;
46-5 (3) receive evidence at a hearing;
46-6 (4) issue a subpoena to compel the attendance of a
46-7 witness or the production of a document; and
46-8 (5) make findings of fact and decisions to administer
46-9 this title or a rule, order, or other action of the commission.
46-10 (V.A.C.S. Art. 1446c-0, Sec. 1.101(d).)
46-11 Sec. 14.052. RULES. (a) The commission shall adopt and
46-12 enforce rules governing practice and procedure before the
46-13 commission and, as applicable, practice and procedure before the
46-14 utility division of the State Office of Administrative Hearings.
46-15 (b) The commission shall adopt rules that authorize an
46-16 administrative law judge to:
46-17 (1) limit the amount of time that a party may have to
46-18 present its case;
46-19 (2) limit the number of requests for information that
46-20 a party may make in a contested case;
46-21 (3) require a party to a contested case to identify
46-22 contested issues and facts before the hearing begins;
46-23 (4) limit cross-examination to only those issues and
46-24 facts identified before the hearing and to any new issues that may
46-25 arise as a result of the discovery process; and
46-26 (5) group parties, other than the office, that have
46-27 the same position on an issue to facilitate cross-examination on
47-1 that issue.
47-2 (c) A rule adopted under Subsection (b)(5) must permit each
47-3 party in a group to present that party's witnesses for
47-4 cross-examination during the hearing.
47-5 (d) A rule adopted under this section must ensure that each
47-6 party receives due process. (V.A.C.S. Art. 1446c-0, Secs. 1.101(b)
47-7 (part), (c).)
47-8 Sec. 14.053. POWERS AND DUTIES OF STATE OFFICE OF
47-9 ADMINISTRATIVE HEARINGS. (a) The utility division of the State
47-10 Office of Administrative Hearings shall conduct each hearing in a
47-11 contested case that is not conducted by one or more commissioners.
47-12 (b) The commission may delegate to the utility division of
47-13 the State Office of Administrative Hearings the authority to make a
47-14 final decision and to issue findings of fact, conclusions of law,
47-15 and other necessary orders in a proceeding in which there is not a
47-16 contested issue of fact or law.
47-17 (c) The commission by rule shall define the procedures by
47-18 which it delegates final decision-making authority under Subsection
47-19 (b).
47-20 (d) For review purposes an administrative law judge's final
47-21 decision under Subsection (b) has the same effect as a final
47-22 decision of the commission unless a commissioner requests formal
47-23 review of the decision. (V.A.C.S. Art. 1446c-0, Sec. 1.101(e).)
47-24 Sec. 14.054. SETTLEMENTS. (a) The commission by rule shall
47-25 adopt procedures governing the use of settlements to resolve
47-26 contested cases.
47-27 (b) Rules adopted under this section must ensure that:
48-1 (1) each party retains the right to:
48-2 (A) a full hearing before the commission on
48-3 issues that remain in dispute; and
48-4 (B) judicial review of issues that remain in
48-5 dispute;
48-6 (2) an issue of fact raised by a nonsettling party may
48-7 not be waived by a settlement or stipulation of the other parties;
48-8 and
48-9 (3) a nonsettling party may use an issue of fact
48-10 raised by that party as the basis for judicial review. (V.A.C.S.
48-11 Art. 1446c-0, Sec. 1.104.)
48-12 Sec. 14.055. RECORD OF PROCEEDINGS. The regulatory authority
48-13 shall keep a record of each proceeding before the authority.
48-14 (V.A.C.S. Art. 1446c-0, Sec. 1.402 (part).)
48-15 Sec. 14.056. RIGHT TO BE HEARD. Each party to a proceeding
48-16 before a regulatory authority is entitled to be heard by attorney
48-17 or in person. (V.A.C.S. Art. 1446c-0, Sec. 1.402 (part).)
48-18 Sec. 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND EXHIBITS;
48-19 PUBLIC RECORDS. (a) A commission order must be in writing and
48-20 contain detailed findings of the facts on which it is passed.
48-21 (b) The commission shall retain a copy of the transcript and
48-22 the exhibits in any matter in which the commission issues an order.
48-23 (c) Subject to Chapter 552, Government Code, each file
48-24 pertaining to a matter that was at any time pending before the
48-25 commission or to a record, report, or inspection required by
48-26 Section 14.003, 14.151, 14.152, 14.153, 14.201, or 14.203-14.207 or
48-27 by Subtitle B or C is public information. (V.A.C.S. Art. 1446c-0,
49-1 Sec. 1.034.)
49-2 (Sections 14.058-14.100 reserved for expansion)
49-3 SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS
49-4 Sec. 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION
49-5 CONSIDERATION. (a) Unless a public utility reports the
49-6 transaction to the commission within a reasonable time, the public
49-7 utility may not:
49-8 (1) sell, acquire, or lease a plant as an operating
49-9 unit or system in this state for a total consideration of more than
49-10 $100,000; or
49-11 (2) merge or consolidate with another public utility
49-12 operating in this state.
49-13 (b) A public utility shall report to the commission within a
49-14 reasonable time each transaction that involves the sale of at least
49-15 50 percent of the stock of the utility. On the filing of a report
49-16 with the commission, the commission shall investigate the
49-17 transaction, with or without a public hearing, to determine whether
49-18 the action is consistent with the public interest. In reaching its
49-19 determination, the commission shall consider:
49-20 (1) the reasonable value of the property, facilities,
49-21 or securities to be acquired, disposed of, merged, transferred, or
49-22 consolidated;
49-23 (2) whether the transaction will:
49-24 (A) adversely affect the health or safety of
49-25 customers or employees;
49-26 (B) result in the transfer of jobs of citizens
49-27 of this state to workers domiciled outside this state; or
50-1 (C) result in the decline of service;
50-2 (3) whether the public utility will receive
50-3 consideration equal to the reasonable value of the assets when it
50-4 sells, leases, or transfers assets; and
50-5 (4) whether the transaction is consistent with the
50-6 public interest.
50-7 (c) If the commission finds that a transaction is not in the
50-8 public interest, the commission shall take the effect of the
50-9 transaction into consideration in ratemaking proceedings and
50-10 disallow the effect of the transaction if the transaction will
50-11 unreasonably affect rates or service.
50-12 (d) This section does not apply to:
50-13 (1) the purchase of a unit of property for
50-14 replacement; or
50-15 (2) an addition to the facilities of a public utility
50-16 by construction. (V.A.C.S. Art. 1446c-0, Sec. 1.251.)
50-17 Sec. 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC
50-18 UTILITY. A public utility may not purchase voting stock in another
50-19 public utility doing business in this state unless the utility
50-20 reports the purchase to the commission. (V.A.C.S. Art. 1446c-0,
50-21 Sec. 1.252.)
50-22 Sec. 14.103. REPORT OF LOAN TO STOCKHOLDERS. A public
50-23 utility may not loan money, stocks, bonds, notes, or other evidence
50-24 of indebtedness to a person who directly or indirectly owns or
50-25 holds any stock of the public utility unless the public utility
50-26 reports the transaction to the commission within a reasonable time.
50-27 (V.A.C.S. Art. 1446c-0, Sec. 1.253.)
51-1 (Sections 14.104-14.150 reserved for expansion)
51-2 SUBCHAPTER D. RECORDS
51-3 Sec. 14.151. RECORDS OF PUBLIC UTILITY. (a) Each public
51-4 utility shall keep and provide to the regulatory authority, in the
51-5 manner and form prescribed by the commission, uniform accounts of
51-6 all business transacted by the utility.
51-7 (b) The commission may prescribe the form of books,
51-8 accounts, records, and memoranda to be kept by a public utility,
51-9 including:
51-10 (1) the books, accounts, records, and memoranda of:
51-11 (A) the provision of and capacity for service;
51-12 and
51-13 (B) the receipt and expenditure of money; and
51-14 (2) any other form, record, and memorandum that the
51-15 commission considers necessary to carry out this title.
51-16 (c) For a public utility subject to regulation by a federal
51-17 regulatory agency, compliance with the system of accounts
51-18 prescribed for the particular class of utilities by the federal
51-19 agency may be considered sufficient compliance with the system
51-20 prescribed by the commission. The commission may prescribe the form
51-21 of books, accounts, records, and memoranda covering information in
51-22 addition to that required by the federal agency. The system of
51-23 accounts and the form of books, accounts, records, and memoranda
51-24 prescribed by the commission for a public utility or class of
51-25 utilities may not be inconsistent with the systems and forms
51-26 established by a federal agency for that public utility or class of
51-27 utilities.
52-1 (d) Each public utility shall:
52-2 (1) keep and provide its books, accounts, records, and
52-3 memoranda accurately in the manner and form prescribed by the
52-4 commission; and
52-5 (2) comply with the directions of the regulatory
52-6 authority relating to the books, accounts, records, and memoranda.
52-7 (e) In this section, "public utility" includes a municipally
52-8 owned utility. (V.A.C.S. Art. 1446c-0, Secs. 1.201(a), (b), (c),
52-9 (d) (part), (e).)
52-10 Sec. 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS
52-11 STATE. (a) Each public utility shall maintain an office in this
52-12 state in a county in which some part of the utility's property is
52-13 located. The utility shall keep in this office all books,
52-14 accounts, records, and memoranda required by the commission to be
52-15 kept in this state.
52-16 (b) A book, account, record, or memorandum required by the
52-17 regulatory authority to be kept in this state may not be removed
52-18 from this state, except as:
52-19 (1) provided by Section 52.255; and
52-20 (2) prescribed by the commission. (V.A.C.S.
52-21 Art. 1446c-0, Sec. 1.204.)
52-22 Sec. 14.153. COMMUNICATIONS WITH REGULATORY AUTHORITY. (a)
52-23 The regulatory authority shall adopt rules governing communications
52-24 with the regulatory authority or a member or employee of the
52-25 regulatory authority by:
52-26 (1) a public utility;
52-27 (2) an affiliate; or
53-1 (3) a representative of a public utility or affiliate.
53-2 (b) A record of a communication must contain:
53-3 (1) the name of the person contacting the regulatory
53-4 authority or member or employee of the regulatory authority;
53-5 (2) the name of the business entity represented;
53-6 (3) a brief description of the subject matter of the
53-7 communication; and
53-8 (4) the action, if any, requested by the public
53-9 utility, affiliate, or representative.
53-10 (c) Records compiled under Subsection (b) shall be available
53-11 to the public monthly. (V.A.C.S. Art. 1446c-0, Sec. 1.205.)
53-12 Sec. 14.154. JURISDICTION OVER AFFILIATE. (a) The
53-13 commission has jurisdiction over an affiliate that has a
53-14 transaction with a public utility under the commission's
53-15 jurisdiction to the extent of access to a record of the affiliate
53-16 relating to the transaction, including a record of joint or general
53-17 expenses, any portion of which may be applicable to the
53-18 transaction.
53-19 (b) A record obtained by the commission relating to sale of
53-20 electrical energy at wholesale by an affiliate to the public
53-21 utility is confidential and is not subject to disclosure under
53-22 Chapter 552, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.271.)
53-23 (Sections 14.155-14.200 reserved for expansion)
53-24 SUBCHAPTER E. AUDITS AND INSPECTIONS
53-25 Sec. 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A
53-26 regulatory authority may inquire into the management and affairs of
53-27 each public utility and shall keep itself informed as to the manner
54-1 and method in which each public utility is managed and its affairs
54-2 are conducted. (V.A.C.S. Art. 1446c-0, Sec. 1.203(c).)
54-3 Sec. 14.202. MANAGEMENT AUDITS BY COMMISSION. (a) The
54-4 commission shall:
54-5 (1) inquire into the management of the business of
54-6 each public utility under its jurisdiction;
54-7 (2) keep itself informed as to the manner and method
54-8 in which the utility's business is managed; and
54-9 (3) obtain from the public utility any information
54-10 necessary to enable the commission to perform a management audit.
54-11 (b) The commission may audit a utility under its
54-12 jurisdiction as frequently as needed. Six months after an audit,
54-13 the utility shall report to the commission on the status of the
54-14 implementation of the recommendations of the audit and shall file
54-15 subsequent reports at times the commission considers appropriate.
54-16 (V.A.C.S. Art. 1446c-0, Sec. 1.102.)
54-17 Sec. 14.203. AUDIT OF ACCOUNTS. A regulatory authority may
54-18 require the examination and audit of the accounts of a public or
54-19 municipally owned utility. (V.A.C.S. Art. 1446c-0, Secs. 1.201(d)
54-20 (part), (e).)
54-21 Sec. 14.204. INSPECTION. (a) A regulatory authority and,
54-22 to the extent authorized by the regulatory authority, its counsel,
54-23 agent, or employee, may:
54-24 (1) inspect and obtain copies of the papers, books,
54-25 accounts, documents, and other business records of a public utility
54-26 within its jurisdiction; and
54-27 (2) inspect the plant, equipment, and other property
55-1 of a public utility within its jurisdiction.
55-2 (b) An action under this section must be conducted at a
55-3 reasonable time for a reasonable purpose. (V.A.C.S. Art. 1446c-0,
55-4 Sec. 1.203(a) (part).)
55-5 Sec. 14.205. EXAMINATIONS UNDER OATH. In connection with an
55-6 action taken under Section 14.204, the regulatory authority may:
55-7 (1) examine under oath an officer, agent, or employee
55-8 of a public utility; or
55-9 (2) authorize the person conducting the action to make
55-10 the examination under oath. (V.A.C.S. Art. 1446c-0, Sec. 1.203(a)
55-11 (part).)
55-12 Sec. 14.206. ENTERING PREMISES OF PUBLIC UTILITY. (a) A
55-13 member, agent, or employee of a regulatory authority may enter the
55-14 premises occupied by a public utility to conduct an inspection,
55-15 examination, or test or to exercise any other authority provided by
55-16 this title.
55-17 (b) A member, agent, or employee of the regulatory authority
55-18 may act under this section only during reasonable hours and after
55-19 reasonable notice to the public utility.
55-20 (c) A public utility is entitled to be represented when an
55-21 inspection, examination, or test is conducted on its premises. The
55-22 utility is entitled to a reasonable time to secure a representative
55-23 before the inspection, examination, or test begins. (V.A.C.S.
55-24 Art. 1446c-0, Secs. 1.203(b), 2.156(a) (part).)
55-25 Sec. 14.207. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A
55-26 regulatory authority may require, by order or subpoena served on a
55-27 public utility, the production, at the time and place in this state
56-1 that the regulatory authority designates, of any books, accounts,
56-2 papers, or records kept by that public utility outside this state
56-3 or, if ordered by the commission, verified copies of the books,
56-4 accounts, papers, or records.
56-5 (b) A public utility that fails or refuses to comply with an
56-6 order or subpoena under this section violates this title.
56-7 (V.A.C.S. Art. 1446c-0, Sec. 1.203(a) (part).)
56-8 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES
56-9 SUBCHAPTER A. JUDICIAL REVIEW
56-10 Sec. 15.001. RIGHT TO JUDICIAL REVIEW
56-11 Sec. 15.002. COMMISSION AS DEFENDANT
56-12 Sec. 15.003. COSTS AND ATTORNEY'S FEES
56-13 Sec. 15.004. JUDICIAL STAY OR SUSPENSION
56-14 (Sections 15.005-15.020 reserved for expansion)
56-15 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
56-16 Sec. 15.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE
56-17 Sec. 15.022. CONTEMPT
56-18 Sec. 15.023. ADMINISTRATIVE PENALTY
56-19 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE
56-20 Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY
56-21 Sec. 15.026. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY
56-22 Sec. 15.027. ADMINISTRATIVE PENALTY COLLECTION; GENERAL
56-23 PROVISIONS
56-24 Sec. 15.028. CIVIL PENALTY AGAINST PUBLIC UTILITY, PAY
56-25 TELEPHONE SERVICE PROVIDER, OR AFFILIATE
56-26 Sec. 15.029. CIVIL PENALTY FOR VIOLATING SECTION 12.055
56-27 OR 12.154
57-1 Sec. 15.030. OFFENSE
57-2 Sec. 15.031. PLACE FOR SUIT
57-3 Sec. 15.032. PENALTIES CUMULATIVE
57-4 Sec. 15.033. DISPOSITION OF FINES AND PENALTIES
57-5 (Sections 15.034-15.050 reserved for expansion)
57-6 SUBCHAPTER C. COMPLAINTS
57-7 Sec. 15.051. COMPLAINT BY AFFECTED PERSON
57-8 Sec. 15.052. COMPLAINT REGARDING RECREATIONAL VEHICLE
57-9 PARK OWNER
57-10 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES
57-11 SUBCHAPTER A. JUDICIAL REVIEW
57-12 Sec. 15.001. RIGHT TO JUDICIAL REVIEW. Any party to a
57-13 proceeding before the commission is entitled to judicial review
57-14 under the substantial evidence rule. (V.A.C.S. Art. 1446c-0, Sec.
57-15 1.301 (part).)
57-16 Sec. 15.002. COMMISSION AS DEFENDANT. The commission must
57-17 be a defendant in a proceeding for judicial review. (V.A.C.S.
57-18 Art. 1446c-0, Sec. 1.301 (part).)
57-19 Sec. 15.003. COSTS AND ATTORNEY'S FEES. (a) A party
57-20 represented by counsel who alleges that existing rates are
57-21 excessive or that rates prescribed by the commission are excessive
57-22 and who prevails in a proceeding for review of a commission order
57-23 or decision is entitled in the same action to recover against the
57-24 regulation fund reasonable fees for attorneys and expert witnesses
57-25 and other costs for the party's efforts before the commission and
57-26 the court.
57-27 (b) The court shall set the amount of attorney's fees
58-1 awarded under Subsection (a).
58-2 (c) If a court finds that an action under Section 15.001 or
58-3 this section was groundless and brought in bad faith and for the
58-4 purpose of harassment, the court may award reasonable attorney's
58-5 fees to the defendant public utility. (V.A.C.S. Art. 1446c-0, Sec.
58-6 1.302.)
58-7 Sec. 15.004. JUDICIAL STAY OR SUSPENSION. While an appeal
58-8 of an order, ruling, or decision of a regulatory authority is
58-9 pending, the district court, court of appeals, or supreme court, as
58-10 appropriate, may stay or suspend all or part of the operation of
58-11 the order, ruling, or decision. In granting or refusing a stay or
58-12 suspension, the court shall act in accordance with the practice of
58-13 a court exercising equity jurisdiction. (V.A.C.S. Art. 1446c-0,
58-14 Sec. 1.403.)
58-15 (Sections 15.005-15.020 reserved for expansion)
58-16 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
58-17 Sec. 15.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE. (a)
58-18 The attorney general, on the request of the commission, shall apply
58-19 in the name of the commission for a court order under Subsection
58-20 (b) if the commission determines that a public utility or other
58-21 person is:
58-22 (1) engaging in or about to engage in an act that
58-23 violates this title or an order or rule of the commission entered
58-24 or adopted under this title; or
58-25 (2) failing to comply with the requirements of this
58-26 title or a rule or order of the commission.
58-27 (b) A court, in an action under this section, may:
59-1 (1) prohibit the commencement or continuation of an
59-2 act that violates this title or an order or rule of the commission
59-3 entered or adopted under this title; or
59-4 (2) require compliance with a provision of this title
59-5 or an order or rule of the commission.
59-6 (c) The remedy under this section is in addition to any
59-7 other remedy provided under this title. (V.A.C.S. Art. 1446c-0,
59-8 Sec. 1.321.)
59-9 Sec. 15.022. CONTEMPT. The commission may file a court
59-10 action for contempt against a person who:
59-11 (1) fails to comply with a lawful order of the
59-12 commission;
59-13 (2) fails to comply with a subpoena or subpoena duces
59-14 tecum; or
59-15 (3) refuses to testify about a matter on which the
59-16 person may be lawfully interrogated. (V.A.C.S. Art. 1446c-0, Sec.
59-17 1.326.)
59-18 Sec. 15.023. ADMINISTRATIVE PENALTY. (a) The commission
59-19 may impose an administrative penalty against a person regulated
59-20 under this title who violates this title or a rule or order adopted
59-21 under this title.
59-22 (b) The penalty for a violation may be in an amount not to
59-23 exceed $5,000. Each day a violation continues or occurs is a
59-24 separate violation for purposes of imposing a penalty.
59-25 (c) The amount of an administrative penalty shall be based
59-26 on:
59-27 (1) the seriousness of the violation, including:
60-1 (A) the nature, circumstances, extent, and
60-2 gravity of a prohibited act; and
60-3 (B) the hazard or potential hazard created to
60-4 the health, safety, or economic welfare of the public;
60-5 (2) the economic harm to property or the environment
60-6 caused by the violation;
60-7 (3) the history of previous violations;
60-8 (4) the amount necessary to deter future violations;
60-9 (5) efforts to correct the violation; and
60-10 (6) any other matter that justice may require.
60-11 (V.A.C.S. Art. 1446c-0, Secs. 1.3215(a), (b), (c).)
60-12 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
60-13 (a) If the executive director determines that a violation has
60-14 occurred, the executive director may issue to the commission a
60-15 report that states the facts on which the determination is based
60-16 and the executive director's recommendation on the imposition of an
60-17 administrative penalty, including a recommendation on the amount of
60-18 the penalty.
60-19 (b) Not later than the 14th day after the date the report is
60-20 issued, the executive director shall give written notice of the
60-21 report to the person against whom the penalty may be assessed. The
60-22 notice may be given by certified mail. The notice must:
60-23 (1) include a brief summary of the alleged violation;
60-24 (2) state the amount of the recommended penalty; and
60-25 (3) inform the person that the person has a right to a
60-26 hearing on the occurrence of the violation, the amount of the
60-27 penalty, or both the occurrence of the violation and the amount of
61-1 the penalty.
61-2 (c) A penalty may not be assessed under this section if the
61-3 person against whom the penalty may be assessed remedies the
61-4 violation before the 31st day after the date the person receives
61-5 the notice under Subsection (b). A person who claims to have
61-6 remedied an alleged violation has the burden of proving to the
61-7 commission that the alleged violation was remedied and was
61-8 accidental or inadvertent.
61-9 (d) Not later than the 20th day after the date the person
61-10 receives the notice, the person may accept the determination and
61-11 recommended penalty of the executive director in writing or may
61-12 make a written request for a hearing on the occurrence of the
61-13 violation, the amount of the penalty, or both the occurrence of the
61-14 violation and the amount of the penalty.
61-15 (e) If the person accepts the executive director's
61-16 determination and recommended penalty, the commission by order
61-17 shall approve the determination and impose the recommended penalty.
61-18 (f) If the person requests a hearing or fails to timely
61-19 respond to the notice, the executive director shall set a hearing
61-20 and give notice of the hearing to the person. The hearing shall be
61-21 held by an administrative law judge of the State Office of
61-22 Administrative Hearings. The administrative law judge shall make
61-23 findings of fact and conclusions of law and promptly issue to the
61-24 commission a proposal for a decision about the occurrence of the
61-25 violation and the amount of a proposed penalty. Based on the
61-26 findings of fact, conclusions of law, and proposal for a decision,
61-27 the commission by order may find that a violation has occurred and
62-1 impose a penalty or may find that no violation occurred.
62-2 (g) The notice of the commission's order shall be given to
62-3 the person as provided by Chapter 2001, Government Code, and must
62-4 include a statement of the right of the person to judicial review
62-5 of the order. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(d), (e), (f),
62-6 (g), (h), (i).)
62-7 Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY. (a) Not
62-8 later than the 30th day after the date the commission's order
62-9 imposing an administrative penalty is final as provided by Section
62-10 2001.144, Government Code, the person shall:
62-11 (1) pay the amount of the penalty;
62-12 (2) pay the amount of the penalty and file a petition
62-13 for judicial review contesting:
62-14 (A) the occurrence of the violation;
62-15 (B) the amount of the penalty; or
62-16 (C) both the occurrence of the violation and the
62-17 amount of the penalty; or
62-18 (3) without paying the amount of the penalty, file a
62-19 petition for judicial review contesting:
62-20 (A) the occurrence of the violation;
62-21 (B) the amount of the penalty; or
62-22 (C) both the occurrence of the violation and the
62-23 amount of the penalty.
62-24 (b) Not later than the 30th day after the date the
62-25 commission's order is final as provided by Section 2001.144,
62-26 Government Code, a person who acts under Subsection (a)(3) may:
62-27 (1) stay enforcement of the penalty by:
63-1 (A) paying the amount of the penalty to the
63-2 court for placement in an escrow account; or
63-3 (B) giving to the court a supersedeas bond that
63-4 is approved by the court for the amount of the penalty and that is
63-5 effective until all judicial review of the commission's order is
63-6 final; or
63-7 (2) request the court to stay enforcement of the
63-8 penalty by:
63-9 (A) filing with the court a sworn affidavit of
63-10 the person stating that the person is financially unable to pay the
63-11 amount of the penalty and is financially unable to give the
63-12 supersedeas bond; and
63-13 (B) giving a copy of the affidavit to the
63-14 executive director by certified mail.
63-15 (c) The executive director, on receipt of a copy of an
63-16 affidavit under Subsection (b)(2), may file with the court, not
63-17 later than the fifth day after the date the copy is received, a
63-18 contest to the affidavit. The court shall hold a hearing on the
63-19 facts alleged in the affidavit as soon as practicable and shall
63-20 stay the enforcement of the penalty on finding that the alleged
63-21 facts are true. The person who files an affidavit has the burden
63-22 of proving that the person is financially unable to pay the amount
63-23 of the penalty and to give a supersedeas bond.
63-24 (d) If the person does not pay the amount of the penalty and
63-25 the enforcement of the penalty is not stayed, the executive
63-26 director may refer the matter to the attorney general for
63-27 collection of the amount of the penalty. (V.A.C.S. Art. 1446c-0,
64-1 Secs. 1.3215(j), (k), (l), (m).)
64-2 Sec. 15.026. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY. (a)
64-3 Judicial review of a commission order imposing an administrative
64-4 penalty is:
64-5 (1) instituted by filing a petition as provided by
64-6 Subchapter G, Chapter 2001, Government Code; and
64-7 (2) under the substantial evidence rule.
64-8 (b) If the court sustains the occurrence of the violation,
64-9 the court may uphold or reduce the amount of the penalty and order
64-10 the person to pay the full or reduced amount of the penalty. If
64-11 the court does not sustain the occurrence of the violation, the
64-12 court shall order that no penalty is owed.
64-13 (c) When the judgment of the court becomes final, the court
64-14 shall proceed under this subsection. If the person paid the amount
64-15 of the penalty and that amount is reduced or is not upheld by the
64-16 court, the court shall order that the appropriate amount plus
64-17 accrued interest be remitted to the person. The rate of the
64-18 interest is the rate charged on loans to depository institutions by
64-19 the New York Federal Reserve Bank, and the interest shall be paid
64-20 for the period beginning on the date the penalty was paid and
64-21 ending on the date the penalty is remitted. If the person gave a
64-22 supersedeas bond and the amount of the penalty is not upheld by the
64-23 court, the court shall order the release of the bond. If the
64-24 person gave a supersedeas bond and the amount of the penalty is
64-25 reduced, the court shall order the release of the bond after the
64-26 person pays the amount. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(n),
64-27 (o), (p).)
65-1 Sec. 15.027. ADMINISTRATIVE PENALTY COLLECTION; GENERAL
65-2 PROVISIONS. (a) An administrative penalty collected under this
65-3 subchapter shall be sent to the comptroller.
65-4 (b) A proceeding relating to an administrative penalty under
65-5 this subchapter is subject to Chapter 2001, Government Code.
65-6 (c) The executive director may delegate any power or duty
65-7 relating to an administrative penalty given the executive director
65-8 by this subchapter to a person designated by the executive
65-9 director. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(q), (r), (s).)
65-10 Sec. 15.028. CIVIL PENALTY AGAINST PUBLIC UTILITY, PAY
65-11 TELEPHONE SERVICE PROVIDER, OR AFFILIATE. (a) A public utility,
65-12 customer-owned pay telephone service provider under Section 55.178,
65-13 or affiliate is subject to a civil penalty if the utility,
65-14 provider, or affiliate knowingly violates this title, fails to
65-15 perform a duty imposed on it, or fails or refuses to obey an order,
65-16 rule, direction, or requirement of the commission or a decree or
65-17 judgment of a court.
65-18 (b) A civil penalty under this section shall be in an amount
65-19 of not less than $1,000 and not more than $5,000 for each
65-20 violation.
65-21 (c) A public utility or affiliate commits a separate
65-22 violation each day it continues to violate Subsection (a).
65-23 (d) The attorney general shall file in the name of the
65-24 commission a suit on the attorney general's own initiative or at
65-25 the request of the commission to recover the civil penalty under
65-26 this section. (V.A.C.S. Art. 1446c-0, Sec. 1.322.)
65-27 Sec. 15.029. CIVIL PENALTY FOR VIOLATING SECTION 12.055 OR
66-1 12.154. (a) A member of the commission or an officer or director
66-2 of a public utility or affiliate who knowingly violates Section
66-3 12.055 or 12.154 is subject to a civil penalty of $1,000 for each
66-4 violation.
66-5 (b) A person other than a person subject to Subsection (a)
66-6 who knowingly violates Section 12.154 is subject to a civil penalty
66-7 of $500 for each violation.
66-8 (c) A member, officer, or employee of the commission who in
66-9 any action is found by a preponderance of the evidence to have
66-10 violated a provision of Section 12.055 or 12.154 shall be removed
66-11 from the person's office or employment.
66-12 (d) A civil penalty under this section is recoverable in a
66-13 suit filed in the name of the commission by the attorney general on
66-14 the attorney general's own initiative or at the request of the
66-15 commission. (V.A.C.S. Art. 1446c-0, Sec. 1.323.)
66-16 Sec. 15.030. OFFENSE. (a) A person commits an offense if
66-17 the person wilfully and knowingly violates this title.
66-18 (b) This section does not apply to an offense described by
66-19 Section 55.138.
66-20 (c) An offense under this section is a felony of the third
66-21 degree. (V.A.C.S. Art. 1446c-0, Sec. 1.325(a).)
66-22 Sec. 15.031. PLACE FOR SUIT. A suit for an injunction or a
66-23 penalty under this title may be brought in:
66-24 (1) Travis County;
66-25 (2) a county in which the violation is alleged to have
66-26 occurred; or
66-27 (3) a county in which a defendant resides. (V.A.C.S.
67-1 Art. 1446c-0, Sec. 1.328.)
67-2 Sec. 15.032. PENALTIES CUMULATIVE. (a) A penalty that
67-3 accrues under this title is cumulative of any other penalty.
67-4 (b) A suit for the recovery of a penalty does not bar or
67-5 affect the recovery of any other penalty or bar a criminal
67-6 prosecution against any person. (V.A.C.S. Art. 1446c-0, Sec.
67-7 1.325(b).)
67-8 Sec. 15.033. DISPOSITION OF FINES AND PENALTIES. A fine or
67-9 penalty collected under this title, other than a fine or penalty
67-10 collected in a criminal proceeding or a penalty collected under
67-11 Section 15.027(a), shall be paid to the commission. (V.A.C.S.
67-12 Art. 1446c-0, Sec. 1.327.)
67-13 (Sections 15.034-15.050 reserved for expansion)
67-14 SUBCHAPTER C. COMPLAINTS
67-15 Sec. 15.051. COMPLAINT BY AFFECTED PERSON. (a) An affected
67-16 person may complain to the regulatory authority in writing setting
67-17 forth an act or omission by a public utility in violation or
67-18 claimed violation of a law that the regulatory authority has
67-19 jurisdiction to administer or of an order, ordinance, or rule of
67-20 the regulatory authority.
67-21 (b) The commission shall keep for a reasonable period
67-22 information about each complaint filed with the commission. The
67-23 information shall include:
67-24 (1) the date the complaint is received;
67-25 (2) the name of the complainant;
67-26 (3) the subject matter of the complaint;
67-27 (4) a record of each person contacted in relation to
68-1 the complaint;
68-2 (5) a summary of the results of the review or
68-3 investigation of the complaint; and
68-4 (6) if the commission took no action on the complaint,
68-5 an explanation of the reason the complaint was closed without
68-6 action.
68-7 (c) The commission shall keep a file about each written
68-8 complaint filed with the commission that the commission has
68-9 authority to resolve. The commission shall provide to the person
68-10 filing the complaint and to each person or entity complained about
68-11 information concerning the commission's policies and procedures on
68-12 complaint investigation and resolution. The commission, at least
68-13 quarterly and until final disposition of the complaint, shall
68-14 notify the person filing the complaint and each person or entity
68-15 complained about of the status of the complaint unless the notice
68-16 would jeopardize an undercover investigation. (V.A.C.S.
68-17 Art. 1446c-0, Secs. 1.401(a), (b).)
68-18 Sec. 15.052. COMPLAINT REGARDING RECREATIONAL VEHICLE PARK
68-19 OWNER. (a) An affected person may complain to the regulatory
68-20 authority in writing setting forth an act or omission by a
68-21 recreational vehicle park owner who provides metered electric
68-22 service under Subchapter C, Chapter 184, in violation or claimed
68-23 violation of a law that the regulatory authority has jurisdiction
68-24 to administer or of an order, ordinance, or rule of the regulatory
68-25 authority.
68-26 (b) The commission shall keep for a reasonable period an
68-27 information file about each complaint filed with the commission
69-1 relating to a recreational vehicle park owner.
69-2 (c) The commission, at least quarterly and until final
69-3 disposition of the written complaint, shall notify the parties to
69-4 the complaint of the status of the complaint unless the notice
69-5 would jeopardize an undercover investigation. (V.A.C.S.
69-6 Art. 1446c-0, Sec. 1.401(c).)
69-7 CHAPTER 16. COMMISSION FINANCING
69-8 SUBCHAPTER A. ASSESSMENT ON PUBLIC UTILITIES
69-9 Sec. 16.001. ASSESSMENT ON PUBLIC UTILITIES
69-10 Sec. 16.002. PAYMENT DATES
69-11 Sec. 16.003. LATE PAYMENT PENALTY
69-12 Sec. 16.0031. CERTAIN PAYMENTS BASED ON ESTIMATED GROSS
69-13 RECEIPTS
69-14 Sec. 16.004. COLLECTION BY COMPTROLLER
69-15 (Sections 16.005-16.020 reserved for expansion)
69-16 SUBCHAPTER B. GRANTS AND OTHER FINANCIAL ASSISTANCE
69-17 Sec. 16.021. GRANTS OF FEDERAL FUNDS
69-18 (Sections 16.022-16.040 reserved for expansion)
69-19 SUBCHAPTER C. MONEY DISPOSITION, ACCOUNTING, AND BUDGET
69-20 Sec. 16.041. APPLICATION OF STATE FUNDS REFORM ACT
69-21 Sec. 16.042. ACCOUNTING RECORDS
69-22 Sec. 16.043. AUDIT
69-23 Sec. 16.044. APPROVAL OF BUDGET
69-24 CHAPTER 16. COMMISSION FINANCING
69-25 SUBCHAPTER A. ASSESSMENT ON PUBLIC UTILITIES
69-26 Sec. 16.001. ASSESSMENT ON PUBLIC UTILITIES. (a) To defray
69-27 the expenses incurred in the administration of this title, an
70-1 assessment is imposed on each public utility within the
70-2 jurisdiction of the commission that serves the ultimate consumer,
70-3 including each interexchange telecommunications carrier.
70-4 (b) An assessment under this section is equal to one-sixth
70-5 of one percent of the public utility's gross receipts from rates
70-6 charged to the ultimate consumer in this state.
70-7 (c) An interexchange telecommunications carrier that does
70-8 not provide local exchange telephone service may collect the fee
70-9 imposed under this section as an additional item separately stated
70-10 on the customer bill as "utility gross receipts assessment."
70-11 (V.A.C.S. Art. 1446c-0, Secs. 1.351(a), (c).)
70-12 Sec. 16.002. PAYMENT DATES. (a) The assessment is due
70-13 August 15.
70-14 (b) A public utility may instead make quarterly payments due
70-15 August 15, November 15, February 15, and May 15. (V.A.C.S.
70-16 Art. 1446c-0, Sec. 1.352(a).)
70-17 Sec. 16.003. LATE PAYMENT PENALTY. (a) An additional fee
70-18 equal to 10 percent of the amount due shall be assessed for any
70-19 late payment of an assessment required under this subchapter.
70-20 (b) An assessment delinquent for more than 30 days accrues
70-21 interest at an annual rate of 12 percent on the amount of the
70-22 assessment and penalty due. (V.A.C.S. Art. 1446c-0, Sec.
70-23 1.352(b).)
70-24 Sec. 16.0031. CERTAIN PAYMENTS BASED ON ESTIMATED GROSS
70-25 RECEIPTS. (a) Notwithstanding Section 16.002, the assessments are
70-26 due as provided by this section and are computed on a public
70-27 utility's estimate of its gross receipts.
71-1 (b) For the assessment otherwise due August 15, 1995, 50
71-2 percent of the assessment shall be paid by August 15, 1994, and 50
71-3 percent shall be paid by February 15, 1995.
71-4 (c) For the assessment otherwise due August 15, 1996, 50
71-5 percent of the assessment shall be paid by August 15, 1995, and 50
71-6 percent shall be paid by February 15, 1996.
71-7 (d) For the assessment otherwise due August 15, 1997, 50
71-8 percent of the assessment shall be paid by August 15, 1996, and 50
71-9 percent shall be paid by February 15, 1997.
71-10 (e) For the assessment otherwise due August 15, 1998, 50
71-11 percent of the assessment shall be paid by August 15, 1997, and 50
71-12 percent shall be paid by August 15, 1998.
71-13 (f) An amount that is underpaid for an assessment due August
71-14 15, 1995, August 15, 1996, or August 15, 1997, shall be paid by
71-15 those respective dates. An assessment amount that is overpaid
71-16 shall be credited against a subsequent assessment.
71-17 (g) This section expires September 1, 1998. (V.A.C.S.
71-18 Art. 1446c-0, Sec. 1.353.)
71-19 Sec. 16.004. COLLECTION BY COMPTROLLER. The comptroller
71-20 shall collect the assessment and any penalty or interest due under
71-21 this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 1.354(a).)
71-22 (Sections 16.005-16.020 reserved for expansion)
71-23 SUBCHAPTER B. GRANTS AND OTHER FINANCIAL ASSISTANCE
71-24 Sec. 16.021. GRANTS OF FEDERAL FUNDS. (a) The commission
71-25 may apply to an appropriate agency or officer of the United States
71-26 to receive and spend federal funds available by grant or other
71-27 similar form of financial assistance.
72-1 (b) This section does not impair the ability of the
72-2 commission to contract with or receive assistance from a state,
72-3 local, or other authorized source of funds. (V.A.C.S.
72-4 Art. 1446c-0, Sec. 1.355(a).)
72-5 (Sections 16.022-16.040 reserved for expansion)
72-6 SUBCHAPTER C. MONEY DISPOSITION, ACCOUNTING, AND BUDGET
72-7 Sec. 16.041. APPLICATION OF STATE FUNDS REFORM ACT. Money
72-8 paid to the commission or to the office under this title is subject
72-9 to Subchapter F, Chapter 404, Government Code. (V.A.C.S.
72-10 Art. 1446c-0, Sec. 1.354(b).)
72-11 Sec. 16.042. ACCOUNTING RECORDS. The commission shall keep
72-12 the accounting records required by the comptroller. (V.A.C.S.
72-13 Art. 1446c-0, Sec. 1.356 (part).)
72-14 Sec. 16.043. AUDIT. The financial transactions of the
72-15 commission are subject to audit by the state auditor under Chapter
72-16 321, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.356 (part).)
72-17 Sec. 16.044. APPROVAL OF BUDGET. The commission budget is
72-18 subject to legislative approval as part of the General
72-19 Appropriations Act. (V.A.C.S. Art. 1446c-0, Sec. 1.357.)
72-20 (Chapters 17-30 reserved for expansion)
72-21 SUBTITLE B. ELECTRIC UTILITIES
72-22 CHAPTER 31. GENERAL PROVISIONS
72-23 Sec. 31.001. LEGISLATIVE FINDINGS; PURPOSE OF
72-24 SUBTITLE
72-25 Sec. 31.002. DEFINITIONS
72-26 Sec. 31.003. REPORT ON SCOPE OF COMPETITION
72-27 Sec. 31.004. ENERGY-EFFICIENT SCHOOL FACILITIES
73-1 SUBTITLE B. ELECTRIC UTILITIES
73-2 CHAPTER 31. GENERAL PROVISIONS
73-3 Sec. 31.001. LEGISLATIVE FINDINGS; PURPOSE OF SUBTITLE. (a)
73-4 This subtitle is enacted to protect the public interest inherent in
73-5 the rates and services of electric utilities. The purpose of this
73-6 subtitle is to establish a comprehensive and adequate regulatory
73-7 system for electric utilities to assure rates, operations, and
73-8 services that are just and reasonable to the consumers and to the
73-9 electric utilities.
73-10 (b) Electric utilities are by definition monopolies in many
73-11 of the services provided and areas they serve. As a result, the
73-12 normal forces of competition that regulate prices in a free
73-13 enterprise society do not always operate. Public agencies regulate
73-14 electric utility rates, operations, and services, except as
73-15 otherwise provided by this subtitle.
73-16 (c) The wholesale electric industry, through federal
73-17 legislative, judicial, and administrative actions, is becoming a
73-18 more competitive industry that does not lend itself to traditional
73-19 electric utility regulatory rules, policies, and principles. As a
73-20 result, the public interest requires that rules, policies, and
73-21 principles be formulated and applied to protect the public interest
73-22 in a more competitive marketplace. The development of a
73-23 competitive wholesale electric market that allows for increased
73-24 participation by electric utilities and certain nonutilities is in
73-25 the public interest. (V.A.C.S. Art. 1446c-0, Sec. 2.001(a).)
73-26 Sec. 31.002. DEFINITIONS. In this subtitle:
73-27 (1) "Electric utility" means a person or river
74-1 authority that owns or operates for compensation in this state
74-2 equipment or facilities to produce, generate, transmit, distribute,
74-3 sell, or furnish electricity in this state. The term includes a
74-4 lessee, trustee, or receiver of an electric utility and a
74-5 recreational vehicle park owner who does not comply with Subchapter
74-6 C, Chapter 184, with regard to the metered sale of electricity at
74-7 the recreational vehicle park. The term does not include:
74-8 (A) a municipal corporation;
74-9 (B) a qualifying facility;
74-10 (C) an exempt wholesale generator;
74-11 (D) a power marketer;
74-12 (E) a corporation described by Section 32.053 to
74-13 the extent the corporation sells electricity exclusively at
74-14 wholesale and not to the ultimate consumer; or
74-15 (F) a person not otherwise an electric utility
74-16 who:
74-17 (i) furnishes an electric service or
74-18 commodity only to itself, its employees, or its tenants as an
74-19 incident of employment or tenancy, if that service or commodity is
74-20 not resold to or used by others;
74-21 (ii) owns or operates in this state
74-22 equipment or facilities to produce, generate, transmit, distribute,
74-23 sell, or furnish electric energy to an electric utility, if the
74-24 equipment or facilities are used primarily to produce and generate
74-25 electric energy for consumption by that person; or
74-26 (iii) owns or operates in this state a
74-27 recreational vehicle park that provides metered electric service in
75-1 accordance with Subchapter C, Chapter 184.
75-2 (2) "Exempt wholesale generator" means a person who is
75-3 engaged directly or indirectly through one or more affiliates
75-4 exclusively in the business of owning or operating all or part of a
75-5 facility for generating electric energy and selling electric energy
75-6 at wholesale and who:
75-7 (A) does not own a facility for the transmission
75-8 of electricity, other than an essential interconnecting
75-9 transmission facility necessary to effect a sale of electric energy
75-10 at wholesale; and
75-11 (B) has:
75-12 (i) applied to the Federal Energy
75-13 Regulatory Commission for a determination under 15 U.S.C. Section
75-14 79z-5a; or
75-15 (ii) registered as an exempt wholesale
75-16 generator as required by Section 35.032.
75-17 (3) "Power marketer" means a person who:
75-18 (A) becomes an owner of electric energy in this
75-19 state for the purpose of selling the electric energy at wholesale;
75-20 (B) does not own generation, transmission, or
75-21 distribution facilities in this state;
75-22 (C) does not have a certificated service area;
75-23 and
75-24 (D) has:
75-25 (i) been granted authority by the Federal
75-26 Energy Regulatory Commission to sell electric energy at
75-27 market-based rates; or
76-1 (ii) registered as a power marketer under
76-2 Section 35.032.
76-3 (4) "Qualifying cogenerator" and "qualifying small
76-4 power producer" have the meanings assigned those terms by 16 U.S.C.
76-5 Sections 796(18)(C) and 796(17)(D).
76-6 (5) "Qualifying facility" means a qualifying
76-7 cogenerator or qualifying small power producer.
76-8 (6) "Rate" includes a compensation, tariff, charge,
76-9 fare, toll, rental, or classification that is directly or
76-10 indirectly demanded, observed, charged, or collected by an electric
76-11 utility for a service, product, or commodity described in the
76-12 definition of electric utility in this section and a rule,
76-13 practice, or contract affecting the compensation, tariff, charge,
76-14 fare, toll, rental, or classification that must be approved by a
76-15 regulatory authority.
76-16 (7) "Transmission service" includes construction or
76-17 enlargement of facilities, transmission over distribution
76-18 facilities, control area services, scheduling resources, regulation
76-19 services, reactive power support, voltage control, provision of
76-20 operating reserves, and any other associated electrical service the
76-21 commission determines appropriate. (V.A.C.S. Art. 1446c-0, Secs.
76-22 2.0011, 2.0012(a) (part).)
76-23 Sec. 31.003. REPORT ON SCOPE OF COMPETITION. (a) Before
76-24 January 15 of each odd-numbered year, the commission shall report
76-25 to the legislature on the scope of competition in electric markets
76-26 and the effect of competition and industry restructuring on
76-27 customers in both competitive and noncompetitive markets.
77-1 (b) The report under this section must include:
77-2 (1) an assessment of the effect of competition on the
77-3 rates and availability of electric services for residential and
77-4 small commercial customers;
77-5 (2) a summary of commission action over the preceding
77-6 two years that reflects changes in the scope of competition in
77-7 regulated electric markets; and
77-8 (3) recommendations to the legislature for legislation
77-9 that the commission finds appropriate to promote the public
77-10 interest in the context of a partially competitive electric market.
77-11 (V.A.C.S. Art. 1446c-0, Sec. 2.003.)
77-12 Sec. 31.004. ENERGY-EFFICIENT SCHOOL FACILITIES. (a) The
77-13 commission may serve as a resource center to assist school
77-14 districts in developing energy-efficient facilities.
77-15 (b) As a resource center under this section, the commission
77-16 may:
77-17 (1) present programs to school districts relating to
77-18 managing energy, training school-plant operators, and designing
77-19 energy-efficient buildings;
77-20 (2) provide school districts with technical assistance
77-21 in managing energy;
77-22 (3) collect and distribute information relating to
77-23 energy management in school facilities; and
77-24 (4) offer energy resource workshops to educators and
77-25 make available to educators a film library on energy-related
77-26 matters and energy education lesson packages. (V.A.C.S.
77-27 Art. 1446c-0, Sec. 2.002.)
78-1 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION
78-2 AND OTHER REGULATORY AUTHORITIES
78-3 SUBCHAPTER A. COMMISSION JURISDICTION
78-4 Sec. 32.001. COMMISSION JURISDICTION
78-5 Sec. 32.002. LIMITATION ON COMMISSION JURISDICTION
78-6 Sec. 32.003. EXEMPT AREA JURISDICTION
78-7 Sec. 32.004. ASSISTANCE TO MUNICIPALITY
78-8 (Sections 32.005-32.050 reserved for expansion)
78-9 SUBCHAPTER B. EXEMPTIONS FROM COMMISSION JURISDICTION
78-10 Sec. 32.051. EXEMPTION OF RIVER AUTHORITY FROM WHOLESALE
78-11 RATE REGULATION
78-12 Sec. 32.052. ABILITY OF CERTAIN RIVER AUTHORITIES TO
78-13 CONSTRUCT IMPROVEMENTS
78-14 Sec. 32.053. ABILITY OF CERTAIN RIVER AUTHORITY
78-15 AFFILIATES TO CONSTRUCT IMPROVEMENTS
78-16 Sec. 32.054. RESTRICTIONS ON AUTHORITY OF CORPORATIONS
78-17 OR RIVER AUTHORITY
78-18 (Sections 32.055-32.100 reserved for expansion)
78-19 SUBCHAPTER C. REQUIRED REPORTS AND FILINGS
78-20 Sec. 32.101. TARIFF FILINGS
78-21 Sec. 32.102. DEPRECIATION ACCOUNT
78-22 Sec. 32.103. ACCOUNTS OF PROFITS AND LOSSES
78-23 Sec. 32.104. REPORT OF CERTAIN EXPENSES
78-24 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION
78-25 AND OTHER REGULATORY AUTHORITIES
78-26 SUBCHAPTER A. COMMISSION JURISDICTION
78-27 Sec. 32.001. COMMISSION JURISDICTION. (a) Except as
79-1 provided by Section 32.002, the commission has exclusive original
79-2 jurisdiction over the rates, operations, and services of an
79-3 electric utility in:
79-4 (1) areas outside a municipality; and
79-5 (2) areas inside a municipality that surrenders its
79-6 jurisdiction to the commission under Section 33.002.
79-7 (b) The commission has exclusive appellate jurisdiction to
79-8 review an order or ordinance of a municipality exercising exclusive
79-9 original jurisdiction under this subtitle. (V.A.C.S.
79-10 Art. 1446c-0, Secs. 2.101(d), (e).)
79-11 Sec. 32.002. LIMITATION ON COMMISSION JURISDICTION. Except
79-12 as otherwise provided by this title, this subtitle does not
79-13 authorize the commission to:
79-14 (1) regulate or supervise a rate or service of a
79-15 municipally owned utility; or
79-16 (2) affect the jurisdiction, power, or duty of a
79-17 municipality exercising exclusive original jurisdiction in that
79-18 municipality's regulation and supervision of an electric utility in
79-19 the municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.102.)
79-20 Sec. 32.003. EXEMPT AREA JURISDICTION. Notwithstanding an
79-21 election under Subchapter A, Chapter 33, by a municipality on the
79-22 issue of surrendering its jurisdiction, the commission may:
79-23 (1) consider an electric utility's revenues and return
79-24 on investment in an area exempt from commission regulation in
79-25 establishing rates and charges in an area that is not exempt from
79-26 commission regulation; and
79-27 (2) exercise necessary powers to give effect to an
80-1 order under this title for the benefit of an area that is not
80-2 exempt from commission regulation. (V.A.C.S. Art. 1446c-0, Sec.
80-3 2.104(c) (part).)
80-4 Sec. 32.004. ASSISTANCE TO MUNICIPALITY. On request of a
80-5 municipality, the commission may advise and assist the municipality
80-6 with respect to a question or proceeding arising under this title.
80-7 Assistance provided by the commission may include aid to a
80-8 municipality on a matter pending before the commission, a court, or
80-9 the municipality's governing body, such as making a staff member
80-10 available as a witness or otherwise providing evidence to the
80-11 municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.107.)
80-12 (Sections 32.005-32.050 reserved for expansion)
80-13 SUBCHAPTER B. EXEMPTIONS FROM COMMISSION JURISDICTION
80-14 Sec. 32.051. EXEMPTION OF RIVER AUTHORITY FROM WHOLESALE
80-15 RATE REGULATION. Notwithstanding any other provision of this
80-16 title, the commission may not directly or indirectly regulate
80-17 revenue requirements, rates, fuel costs, fuel charges, or fuel
80-18 acquisitions that are related to the generation and sale of
80-19 electricity at wholesale, and not to ultimate consumers, by a river
80-20 authority operating a steam generating plant. (V.A.C.S.
80-21 Art. 1446c-0, Sec. 2.0012(a) (part).)
80-22 Sec. 32.052. ABILITY OF CERTAIN RIVER AUTHORITIES TO
80-23 CONSTRUCT IMPROVEMENTS. A river authority operating a steam
80-24 generating plant may acquire, finance, construct, rebuild, repower,
80-25 and use new or existing power plants, equipment, transmission
80-26 lines, or other assets to sell electricity exclusively at wholesale
80-27 to:
81-1 (1) a purchaser in San Saba, Llano, Burnet, Travis,
81-2 Bastrop, Blanco, Colorado, or Fayette County; or
81-3 (2) a purchaser in an area served by the river
81-4 authority on January 1, 1975. (V.A.C.S. Art. 1446c-0, Sec.
81-5 2.0012(b).)
81-6 Sec. 32.053. ABILITY OF CERTAIN RIVER AUTHORITY AFFILIATES
81-7 TO CONSTRUCT IMPROVEMENTS. (a) This section applies only to a
81-8 corporation that:
81-9 (1) sells electricity exclusively at wholesale, and
81-10 not to ultimate consumers;
81-11 (2) is authorized by Chapter 245, Acts of the 67th
81-12 Legislature, Regular Session, 1981 (Article 717p, Vernon's Texas
81-13 Civil Statutes); and
81-14 (3) acts on behalf of a river authority.
81-15 (b) Notwithstanding a river authority's enabling legislation
81-16 or Chapter 245, Acts of the 67th Legislature, Regular Session, 1981
81-17 (Article 717p, Vernon's Texas Civil Statutes), a corporation may:
81-18 (1) acquire, finance, construct, rebuild, repower,
81-19 operate, or sell a facility directly related to the generation of
81-20 electricity; and
81-21 (2) sell, at wholesale only, the output of the
81-22 facility to a purchaser, other than an ultimate consumer, at any
81-23 location in this state.
81-24 (c) This subchapter does not prevent a corporation from
81-25 purchasing transmission and related services from a river
81-26 authority.
81-27 (d) Except as provided by this section, the development,
82-1 financing, ownership, and operation of a facility by a corporation
82-2 is subject to all other applicable laws.
82-3 (e) The property, gross receipts, and income of a
82-4 corporation acting on behalf of a river authority under this
82-5 section are subject to, and the corporation shall pay, taxes and
82-6 assessments of the federal government, this state, a political
82-7 subdivision of this state, or a taxing district of this state on
82-8 the same basis as an exempt wholesale generator.
82-9 (f) The proceeds from the sale of bonds or other obligations
82-10 the interest on which is exempt from taxation and that are issued
82-11 by a corporation or river authority subject to this section, other
82-12 than a bond or obligation available to an investor-owned utility or
82-13 exempt wholesale generator, may not be used, and may not have been
82-14 used, to finance the construction or acquisition of or the
82-15 rebuilding or repowering of a facility for the generation of
82-16 electricity by the corporation. (V.A.C.S. Art. 1446c-0, Secs.
82-17 2.0012(a) (part), (c).)
82-18 Sec. 32.054. RESTRICTIONS ON AUTHORITY OF CORPORATIONS OR
82-19 RIVER AUTHORITY. (a) This subchapter does not authorize a river
82-20 authority to acquire, install, construct, make additions to, or
82-21 operate steam generating plants having an aggregate capacity
82-22 greater than 5,000 megawatts to serve a purchaser in the area
82-23 served by the river authority on January 1, 1975.
82-24 (b) A river authority or a corporation acting on behalf of a
82-25 river authority under this subchapter may provide retail service
82-26 only to a retail customer served by the river authority or
82-27 corporation on September 1, 1995.
83-1 (c) Except as provided by this subchapter, this subchapter
83-2 does not limit a power granted a river authority in its enabling
83-3 legislation or other applicable law. (V.A.C.S. Art. 1446c-0, Secs.
83-4 2.0012(d), (e).)
83-5 (Sections 32.055-32.100 reserved for expansion)
83-6 SUBCHAPTER C. REQUIRED REPORTS AND FILINGS
83-7 Sec. 32.101. TARIFF FILINGS. (a) An electric utility shall
83-8 file with each regulatory authority a tariff showing each rate that
83-9 is:
83-10 (1) subject to the regulatory authority's original or
83-11 appellate jurisdiction; and
83-12 (2) in effect for a utility service, product, or
83-13 commodity offered by the utility.
83-14 (b) The electric utility shall file as a part of the tariff
83-15 required under Subsection (a) each rule that relates to or affects:
83-16 (1) a rate of the utility; or
83-17 (2) a utility service, product, or commodity furnished
83-18 by the electric utility.
83-19 (c) The commission shall consider customer names and
83-20 addresses, prices, individual customer contracts, and expected load
83-21 and usage data as highly sensitive trade secrets. That information
83-22 is not subject to disclosure under Chapter 552, Government Code.
83-23 (V.A.C.S. Art. 1446c-0, Sec. 2.154.)
83-24 Sec. 32.102. DEPRECIATION ACCOUNT. The commission shall
83-25 require each electric or municipally owned utility to carry a
83-26 proper and adequate depreciation account in accordance with:
83-27 (1) the rates and methods prescribed by the commission
84-1 under Section 36.056; and
84-2 (2) any other rule the commission adopts. (V.A.C.S.
84-3 Art. 1446c-0, Secs. 2.151(a) (part), (d).)
84-4 Sec. 32.103. ACCOUNTS OF PROFITS AND LOSSES. An electric or
84-5 municipally owned utility shall keep separate accounts showing
84-6 profits or losses from the sale or lease of merchandise, including
84-7 an appliance, a fixture, or equipment. (V.A.C.S. Art. 1446c-0,
84-8 Secs. 2.151(b) (part), (d).)
84-9 Sec. 32.104. REPORT OF CERTAIN EXPENSES. A regulatory
84-10 authority may require an electric utility to annually report the
84-11 utility's expenditures for:
84-12 (1) business gifts and entertainment; and
84-13 (2) advertising or public relations, including
84-14 expenditures for institutional and consumption-inducing purposes.
84-15 (V.A.C.S. Art. 1446c-0, Sec. 2.152(a).)
84-16 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY
84-17 SUBCHAPTER A. GENERAL PROVISIONS
84-18 Sec. 33.001. MUNICIPAL JURISDICTION
84-19 Sec. 33.002. SURRENDER OF MUNICIPAL JURISDICTION TO
84-20 COMMISSION
84-21 Sec. 33.003. REINSTATEMENT OF MUNICIPAL JURISDICTION
84-22 Sec. 33.004. AREA EXEMPT FROM COMMISSION REGULATION
84-23 Sec. 33.005. EXEMPT AREA REPORTING
84-24 Sec. 33.006. COMMISSION POWERS IN NONEXEMPT AREAS
84-25 Sec. 33.007. ALLOWABLE CHARGES
84-26 (Sections 33.008-33.020 reserved for expansion)
84-27 SUBCHAPTER B. RATE DETERMINATION
85-1 Sec. 33.021. RATE DETERMINATION
85-2 Sec. 33.022. CONSIDERATION OF REVENUES AND RETURN
85-3 FROM NONEXEMPT AREA
85-4 Sec. 33.023. RATEMAKING PROCEEDINGS
85-5 Sec. 33.024. STATEMENT OF INTENT
85-6 Sec. 33.025. MUNICIPAL STANDING
85-7 Sec. 33.026. JUDICIAL REVIEW
85-8 (Sections 33.027-33.050 reserved for expansion)
85-9 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
85-10 Sec. 33.051. APPEAL BY PARTY
85-11 Sec. 33.052. APPEAL BY RESIDENTS
85-12 Sec. 33.053. FILING OF APPEAL
85-13 Sec. 33.054. HEARING AND ORDER
85-14 Sec. 33.055. APPLICABILITY OF RATES
85-15 (Sections 33.056-33.100 reserved for expansion)
85-16 SUBCHAPTER D. PROVISIONS APPLICABLE TO APPEAL
85-17 BY RATEPAYERS OUTSIDE MUNICIPALITY
85-18 Sec. 33.101. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY
85-19 Sec. 33.102. IDENTIFICATION OF RATEPAYERS OUTSIDE
85-20 MUNICIPALITY
85-21 Sec. 33.103. FILING OF APPEAL
85-22 Sec. 33.104. RATE APPLICATION
85-23 (Sections 33.105-33.120 reserved for expansion)
85-24 SUBCHAPTER E. RATE DETERMINATION AND APPEAL OF ORDERS
85-25 OF CERTAIN MUNICIPAL UTILITIES
85-26 Sec. 33.121. APPLICATION OF COMMISSION REVIEW
85-27 Sec. 33.122. REVIEW OF CERTAIN RATE DECISIONS
86-1 Sec. 33.123. REVIEW OF CERTAIN DECISIONS FOR RATES
86-2 CHARGED OUTSIDE MUNICIPALITY
86-3 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY
86-4 SUBCHAPTER A. GENERAL PROVISIONS
86-5 Sec. 33.001. MUNICIPAL JURISDICTION. To provide fair, just,
86-6 and reasonable rates and adequate and efficient services, the
86-7 governing body of a municipality has exclusive original
86-8 jurisdiction over the rates, operations, and services of an
86-9 electric utility in areas in the municipality, subject to the
86-10 limitations imposed by this title. (V.A.C.S. Art. 1446c-0, Sec.
86-11 2.101(a).)
86-12 Sec. 33.002. SURRENDER OF MUNICIPAL JURISDICTION TO
86-13 COMMISSION. (a) A municipality shall regulate all local utility
86-14 service in the municipality until the commission assumes
86-15 jurisdiction over a local utility under this subtitle.
86-16 (b) A municipality may elect to have the commission exercise
86-17 exclusive original jurisdiction over electric utility rates,
86-18 operations, and services in the municipality by ordinance or by
86-19 submitting the question of the surrender of its jurisdiction to the
86-20 voters at a municipal election.
86-21 (c) The governing body of a municipality shall submit at a
86-22 municipal election the question of surrendering its jurisdiction to
86-23 the commission if the governing body receives a petition signed by
86-24 a number of qualified voters of the municipality equal to at least
86-25 the lesser of 20,000 or 10 percent of the number of voters voting
86-26 in the last preceding general election in the municipality.
86-27 (V.A.C.S. Art. 1446c-0, Secs. 2.101(b), 2.104(a).)
87-1 Sec. 33.003. REINSTATEMENT OF MUNICIPAL JURISDICTION. (a)
87-2 A municipality that surrenders its jurisdiction to the commission
87-3 may at any time reinstate its jurisdiction by a vote of the
87-4 electorate.
87-5 (b) A municipality that reinstates its jurisdiction under
87-6 Subsection (a) may not surrender that jurisdiction before the fifth
87-7 anniversary of the date of the election in which the municipality
87-8 elected to reinstate its jurisdiction.
87-9 (c) A municipality may not, by a vote of the electorate,
87-10 reinstate the jurisdiction of the governing body during the time a
87-11 case involving the municipality is pending before the commission.
87-12 (V.A.C.S. Art. 1446c-0, Sec. 2.101(c).)
87-13 Sec. 33.004. AREA EXEMPT FROM COMMISSION REGULATION. (a)
87-14 If a municipality does not surrender its jurisdiction, local
87-15 utility service in the municipality is exempt from regulation by
87-16 the commission under this subtitle to the extent that this subtitle
87-17 applies to local service.
87-18 (b) The municipality may exercise in the exempt area the
87-19 same regulatory powers under the same standards and rules as the
87-20 commission or under other consistent standards and rules.
87-21 (V.A.C.S. Art. 1446c-0, Sec. 2.104(b).)
87-22 Sec. 33.005. EXEMPT AREA REPORTING. (a) An electric
87-23 utility serving an area exempt from commission regulation is
87-24 subject to the reporting requirements of this title.
87-25 (b) A report must be filed with:
87-26 (1) the governing body of the municipality; and
87-27 (2) the commission. (V.A.C.S. Art. 1446c-0, Sec.
88-1 2.104(d).)
88-2 Sec. 33.006. COMMISSION POWERS IN NONEXEMPT AREAS. This
88-3 subchapter does not limit the duty and power of the commission to
88-4 regulate the service and rates of a municipally regulated electric
88-5 utility for service provided to another area in this state.
88-6 (V.A.C.S. Art. 1446c-0, Sec. 2.104(e).)
88-7 Sec. 33.007. ALLOWABLE CHARGES. A municipality that
88-8 performs a regulatory function under this title may make each
88-9 charge that is authorized by:
88-10 (1) this title; or
88-11 (2) the applicable franchise agreement. (V.A.C.S.
88-12 Art. 1446c-0, Sec. 2.103.)
88-13 (Sections 33.008-33.020 reserved for expansion)
88-14 SUBCHAPTER B. RATE DETERMINATION
88-15 Sec. 33.021. RATE DETERMINATION. (a) A municipality
88-16 regulating an electric utility under this subtitle shall require
88-17 the utility to submit information as necessary to make a reasonable
88-18 determination of rate base, expenses, investment, and rate of
88-19 return in the municipality.
88-20 (b) A municipality shall make a determination under
88-21 Subsection (a) using the procedures and requirements prescribed by
88-22 this title.
88-23 (c) A municipality shall retain personnel necessary to make
88-24 the determination of reasonable rates. (V.A.C.S. Art. 1446c-0,
88-25 Secs. 2.105(a), (b).)
88-26 Sec. 33.022. CONSIDERATION OF REVENUES AND RETURN FROM
88-27 NONEXEMPT AREA. In establishing rates and charges in an area
89-1 exempt from commission regulation, the governing body may consider
89-2 an electric utility's revenues and return on investment in an area
89-3 that is not exempt from commission regulation. (V.A.C.S.
89-4 Art. 1446c-0, Sec. 2.104(c) (part).)
89-5 Sec. 33.023. RATEMAKING PROCEEDINGS. (a) The governing
89-6 body of a municipality participating in or conducting a ratemaking
89-7 proceeding may engage rate consultants, accountants, auditors,
89-8 attorneys, and engineers to:
89-9 (1) conduct investigations, present evidence, and
89-10 advise and represent the governing body; and
89-11 (2) assist the governing body with litigation in an
89-12 electric utility ratemaking proceeding before the governing body, a
89-13 regulatory authority, or a court.
89-14 (b) The electric utility in the ratemaking proceeding shall
89-15 reimburse the governing body of the municipality for the reasonable
89-16 cost of the services of a person engaged under Subsection (a) to
89-17 the extent the applicable regulatory authority determines is
89-18 reasonable. (V.A.C.S. Art. 1446c-0, Sec. 2.106(a).)
89-19 Sec. 33.024. STATEMENT OF INTENT. (a) Not later than the
89-20 31st day before the date an electric utility files a statement of
89-21 intent under Section 36.102, the electric utility shall provide
89-22 notice of intent to file the statement to each municipality having
89-23 original jurisdiction.
89-24 (b) Not later than the 30th day after the date a
89-25 municipality receives notice under Subsection (a), the municipality
89-26 may request that the electric utility file with the municipality a
89-27 statement of intent in accordance with Section 36.102.
90-1 (c) If requested by a municipality under Subsection (b), the
90-2 electric utility shall file the statement of intent with the
90-3 municipality at the same time the statement is filed with the
90-4 commission. (V.A.C.S. Art. 1446c-0, Sec. 2.105(c).)
90-5 Sec. 33.025. MUNICIPAL STANDING. (a) A municipality has
90-6 standing in each case before the commission that relates to an
90-7 electric utility providing service in the municipality.
90-8 (b) A municipality's standing is subject to the right of the
90-9 commission to:
90-10 (1) determine standing in a case involving a retail
90-11 service area dispute that involves two or more electric utilities;
90-12 and
90-13 (2) consolidate municipalities on an issue of common
90-14 interest. (V.A.C.S. Art. 1446c-0, Sec. 2.106(b) (part).)
90-15 Sec. 33.026. JUDICIAL REVIEW. A municipality is entitled to
90-16 judicial review of a commission order relating to an electric
90-17 utility providing services in the municipality as provided by
90-18 Section 15.001. (V.A.C.S. Art. 1446c-0, Sec. 2.106(b) (part).)
90-19 (Sections 33.027-33.050 reserved for expansion)
90-20 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
90-21 Sec. 33.051. APPEAL BY PARTY. A party to a rate proceeding
90-22 before a municipality's governing body may appeal the governing
90-23 body's decision to the commission. (V.A.C.S. Art. 1446c-0, Sec.
90-24 2.108(a).)
90-25 Sec. 33.052. APPEAL BY RESIDENTS. The residents of a
90-26 municipality may appeal to the commission the decision of the
90-27 municipality's governing body in a rate proceeding by filing with
91-1 the commission a petition for review signed by a number of
91-2 qualified voters of the municipality equal to at least the lesser
91-3 of 20,000 or 10 percent of the qualified voters of the
91-4 municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.108(b).)
91-5 Sec. 33.053. FILING OF APPEAL. (a) An appeal under this
91-6 subchapter is initiated by filing a petition for review with the
91-7 commission and serving a copy of the petition on each party to the
91-8 original rate proceeding.
91-9 (b) The appeal must be initiated not later than the 30th day
91-10 after the date of the final decision by the governing body of the
91-11 municipality. (V.A.C.S. Art. 1446c-0, Sec. 2.108(f).)
91-12 Sec. 33.054. HEARING AND ORDER. (a) An appeal under this
91-13 subchapter or Subchapter D is de novo and based on the test year
91-14 presented to the municipality.
91-15 (b) The commission shall enter a final order establishing
91-16 the rates the commission determines the municipality should have
91-17 set in the ordinance to which the appeal applies.
91-18 (c) In a proceeding involving the rates of a municipally
91-19 owned utility, the commission must enter a final order on or before
91-20 the 185th day after the date the appeal is perfected or the utility
91-21 files a rate application as prescribed by Section 33.104.
91-22 (d) In a proceeding in which a rate change is concurrently
91-23 sought from the commission under the commission's original
91-24 jurisdiction, the commission must enter a final order on or before
91-25 the later of the 120th day after the date the appeal is perfected
91-26 or the date final action must be taken in the proceeding filed with
91-27 the commission.
92-1 (e) In a proceeding not governed by Subsection (c) or (d),
92-2 the commission must enter a final order on or before the 185th day
92-3 after the date the appeal is perfected.
92-4 (f) If the commission fails to enter a final order before
92-5 the expiration of the applicable period prescribed by Subsections
92-6 (c)-(e), the rates proposed by the utility are considered to be
92-7 approved by the commission and take effect on the expiration of
92-8 that period. (V.A.C.S. Art. 1446c-0, Sec. 2.108(g) (part).)
92-9 Sec. 33.055. APPLICABILITY OF RATES. (a) Temporary or
92-10 permanent rates set by the commission are prospective and observed
92-11 from the date of the applicable commission order, except an interim
92-12 rate order necessary to effect uniform system-wide rates or to
92-13 provide an electric utility the opportunity to avoid confiscation
92-14 during the period beginning on the date a petition for review is
92-15 filed with the commission and ending on the date of a final order
92-16 establishing rates.
92-17 (b) The commission shall order interim rates on a prima
92-18 facie showing by the electric utility that it has experienced
92-19 confiscation during that period. The electric utility shall refund
92-20 or credit against future bills:
92-21 (1) money collected under the interim rates in excess
92-22 of the rate finally ordered; and
92-23 (2) interest on that money, at the current rate as
92-24 determined by the commission.
92-25 (c) In this section, "confiscation" includes negative cash
92-26 flow experienced by an electric utility at any time a rate case
92-27 proceeding is pending. (V.A.C.S. Art. 1446c-0, Sec. 2.108(g)
93-1 (part).)
93-2 (Sections 33.056-33.100 reserved for expansion)
93-3 SUBCHAPTER D. PROVISIONS APPLICABLE TO APPEAL
93-4 BY RATEPAYERS OUTSIDE MUNICIPALITY
93-5 Sec. 33.101. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY. (a)
93-6 The ratepayers of a municipally owned utility who are outside the
93-7 municipality may appeal to the commission an action of the
93-8 governing body of the municipality affecting the municipally owned
93-9 utility's rates by filing with the commission a petition for review
93-10 signed by a number of ratepayers served by the utility outside the
93-11 municipality equal to at least the lesser of 10,000 or five percent
93-12 of those ratepayers.
93-13 (b) A petition for review is properly signed if signed by a
93-14 person or the spouse of a person in whose name residential utility
93-15 service is carried.
93-16 (c) For purposes of this section, each person who receives a
93-17 separate bill is a ratepayer. A person who receives more than one
93-18 bill may not be counted as more than one ratepayer. (V.A.C.S.
93-19 Art. 1446c-0, Sec. 2.108(c)(1).)
93-20 Sec. 33.102. IDENTIFICATION OF RATEPAYERS OUTSIDE
93-21 MUNICIPALITY. (a) A municipality that owns a utility shall:
93-22 (1) disclose to any person, on request, the number of
93-23 ratepayers who reside outside the municipality; and
93-24 (2) provide to any person, on request, a list of the
93-25 names and addresses of the ratepayers who reside outside the
93-26 municipality.
93-27 (b) The municipality may not charge a fee for disclosing the
94-1 information under Subsection (a)(1). The municipality may charge a
94-2 reasonable fee for providing information under Subsection (a)(2).
94-3 (c) The municipality shall provide information requested
94-4 under Subsection (a)(1) by telephone or in writing, as preferred by
94-5 the person making the request. (V.A.C.S. Art. 1446c-0, Sec.
94-6 2.108(c)(2).)
94-7 Sec. 33.103. FILING OF APPEAL. (a) Not later than the 14th
94-8 day after the date a governing body of a municipality makes a final
94-9 decision, the municipality shall issue a written report stating the
94-10 effect of the decision on each class of ratepayer.
94-11 (b) An appeal under this subchapter is initiated by filing a
94-12 petition for review with the commission and serving a copy of the
94-13 petition on each party to the original rate proceeding.
94-14 (c) The appeal must be initiated not later than the 45th day
94-15 after the date the municipality issues the written report required
94-16 by Subsection (a). (V.A.C.S. Art. 1446c-0, Sec. 2.108(c)(3).)
94-17 Sec. 33.104. RATE APPLICATION. Not later than the 90th day
94-18 after the date a petition for review is filed that complies with
94-19 Section 33.103, the municipality shall file with the commission a
94-20 rate application that complies in all material respects with the
94-21 rules and forms prescribed by the commission. The commission may,
94-22 for good cause shown, extend the period for filing a rate
94-23 application. (V.A.C.S. Art. 1446c-0, Sec. 2.108(c)(4).)
94-24 (Sections 33.105-33.120 reserved for expansion)
94-25 SUBCHAPTER E. RATE DETERMINATION AND APPEAL OF ORDERS
94-26 OF CERTAIN MUNICIPAL UTILITIES
94-27 Sec. 33.121. APPLICATION OF COMMISSION REVIEW. A
95-1 municipally owned utility is subject to this subchapter if the
95-2 utility is a utility:
95-3 (1) whose rates are appealed under Subchapter D;
95-4 (2) for which the commission orders a decrease in
95-5 annual nonfuel base revenues that exceeds the greater of
95-6 $25,000,000 or 10 percent of the utility's nonfuel base revenues,
95-7 as computed on a total system basis without regard to the utility's
95-8 municipal boundaries and established in the appealed rate
95-9 ordinance; and
95-10 (3) for which the commission finds that the rates paid
95-11 by the combined residential or other major customer class, other
95-12 than a class in which the municipality is the customer of the
95-13 municipally owned utility, are removed from cost-of-service levels
95-14 to the extent that, under the nonfuel base revenue requirement
95-15 adopted by the commission as computed on a total system basis
95-16 without regard to the municipality's boundaries, a change in
95-17 nonfuel base rate revenues in excess of 50 percent from adjusted
95-18 test year levels would be required to move that class to a relative
95-19 rate of return of unity (1.00 or 100 percent) under the
95-20 cost-of-service methodology adopted by the commission in an appeal
95-21 under Subchapter D. (V.A.C.S. Art. 1446c-0, Secs. 2.108(d) (part),
95-22 (e) (part).)
95-23 Sec. 33.122. REVIEW OF CERTAIN RATE DECISIONS. (a) Except
95-24 as provided by Subsections (b)-(f), for a period of 10 years
95-25 beginning on the later of August 28, 1989, or the effective date of
95-26 the rate ordinance that is the subject of the commission's final
95-27 order invoking the application of this section, the commission has
96-1 appellate jurisdiction over the rates charged by the municipally
96-2 owned utility, both inside and outside the municipality, in the
96-3 same manner and subject to the same commission powers and authority
96-4 provided by this subtitle for an electric utility.
96-5 (b) The commission has jurisdiction to review the cost
96-6 allocation and rate design methodologies adopted by the governing
96-7 body of a municipally owned utility subject to this section. If
96-8 the commission finds that the cost-of-service methodologies result
96-9 in rates that are unjust, unreasonable, or unreasonably
96-10 discriminatory, or unduly preferential to a customer class, the
96-11 commission may order the implementation of ratesetting
96-12 methodologies the commission finds reasonable.
96-13 (c) The commission shall ensure that a customer class, other
96-14 than a class in which the municipality is the customer of the
96-15 municipally owned utility, does not pay rates that result in a
96-16 relative rate of return of more than 115 percent under the
96-17 cost-of-service methodology found reasonable by the commission. A
96-18 customer class may not experience a percentage base rate increase
96-19 that is greater than 1-1/2 times the system average base increase.
96-20 In moving an above-cost class toward cost-of-service levels, each
96-21 class farthest above cost shall be moved sequentially toward cost
96-22 so that no above-cost class moves toward cost until no other class
96-23 is further removed from cost.
96-24 (d) A municipality subject to this section may design
96-25 residential rates, as a matter of intra-class rate design, to
96-26 accomplish reasonable energy conservation goals, notwithstanding
96-27 any other provision of this title.
97-1 (e) The commission's jurisdiction under this section may be
97-2 invoked by any party to a local rate proceeding required by this
97-3 section in the same manner as an appeal of the rates of an electric
97-4 utility under Section 33.051.
97-5 (f) The commission's jurisdiction under this section does
97-6 not extend to a municipally owned utility's:
97-7 (1) revenue requirements, whether base rate or fuel
97-8 revenues;
97-9 (2) invested capital;
97-10 (3) return on invested capital;
97-11 (4) debt service coverage ratio; or
97-12 (5) level of transfer of revenues from the utility to
97-13 the municipality's general fund.
97-14 (g) The governing body of a municipally owned utility
97-15 subject to this section shall establish procedures similar to the
97-16 procedures of a municipality that retains original jurisdiction
97-17 under Section 33.001 to regulate an electric utility operating in
97-18 the municipality. The procedures must include a public hearing
97-19 process in which an affected ratepayer is granted party status on
97-20 request and is grouped for purposes of participation in accordance
97-21 with common or divergent interests, including the particular
97-22 interests of all-electric residential ratepayers and residential
97-23 ratepayers outside the municipality.
97-24 (h) This section does not require the governing body of a
97-25 municipality or the governing board of a municipally owned utility
97-26 subject to this section to adopt procedures that require the use of
97-27 the Texas Rules of Evidence, the Texas Rules of Civil Procedure, or
98-1 the presentation of sworn testimony or any other form of sworn
98-2 evidence.
98-3 (i) The governing body of a municipally owned utility
98-4 subject to this section shall appoint a consumer advocate to
98-5 represent the interests of residential and small commercial
98-6 ratepayers in the municipality's local rate proceedings. The
98-7 consumer advocate's reasonable costs of participating in a
98-8 proceeding, including the reasonable costs of ratemaking
98-9 consultants and expert witnesses, shall be funded by and recovered
98-10 from residential and small commercial ratepayers.
98-11 (j) The commission shall adopt rules applicable to a party
98-12 to an appeal under Subchapter D that provide for the public
98-13 disclosure of financial and in-kind contributions and expenditures
98-14 related to preparing and filing an appeal petition and preparing
98-15 expert testimony or legal representation for an appeal. A party or
98-16 customer who is a member of a party who makes a financial
98-17 contribution or in-kind contribution to assist in an appeal by
98-18 another party or customer class under Subchapter D shall be
98-19 required, on a finding of the commission to that effect, to pay the
98-20 municipally owned utility a penalty equivalent in amount to two
98-21 times the amount of the contribution.
98-22 (k) This section does not limit the right of a party or
98-23 customer to spend money to represent its own interests following
98-24 the filing of a petition with the commission under Subchapter D.
98-25 (V.A.C.S. Art. 1446c-0, Sec. 2.108(d) (part).)
98-26 Sec. 33.123. REVIEW OF CERTAIN DECISIONS FOR RATES CHARGED
98-27 OUTSIDE MUNICIPALITY. (a) For a period of 10 years beginning on
99-1 the later of August 28, 1989, or the effective date of the rate
99-2 ordinance that is the subject of the commission's final order
99-3 invoking the application of this section, the commission has
99-4 appellate jurisdiction over the rates charged by the municipally
99-5 owned utility, outside the municipality, as provided by this
99-6 section.
99-7 (b) Except as otherwise provided by this section, a
99-8 ratepayer of a municipally owned utility subject to this section
99-9 who resides outside the municipality may appeal any action of the
99-10 governing body of a municipality affecting the rates charged by the
99-11 municipally owned utility outside the municipality by filing a
99-12 petition for review with the commission in the manner provided for
99-13 an appeal under Subchapter D. The petition must plainly disclose
99-14 that the cost of the appeal will be funded by a surcharge on the
99-15 monthly electric bills of ratepayers outside the municipality as
99-16 prescribed by the commission.
99-17 (c) After the commission approves the sufficiency of a
99-18 petition, the appellants shall submit to the office for approval a
99-19 budget itemizing the scope and expected cost of consultant services
99-20 to be purchased by the appellants in the appeal.
99-21 (d) Not later than the 120th day after the date the
99-22 commission enters its final order, the municipality shall assess a
99-23 onetime surcharge on a per capita basis among residential
99-24 ratepayers who reside outside the municipality to pay the
99-25 reasonable consultant and legal costs approved by the counsellor.
99-26 The municipality shall reimburse the appellants for incurred costs
99-27 not later than the 90th day after the date the commission enters
100-1 its final order.
100-2 (e) A municipality may not:
100-3 (1) include the costs associated with its defense of
100-4 an appeal under this section in the rates charged a ratepayer
100-5 outside the municipality; or
100-6 (2) if the municipality appeals an order entered by
100-7 the commission under this section, include the costs associated
100-8 with its appeal in the rates charged a ratepayer outside the
100-9 municipality.
100-10 (f) A ratepayer who brings an appeal under this section may
100-11 not receive funding for rate case expenses except from a
100-12 residential ratepayer who resides outside the municipality or from
100-13 another municipality inside whose boundaries the municipally owned
100-14 utility provides service. The commission shall adopt rules for
100-15 reporting financial and in-kind contributions in support of an
100-16 appeal under this section. If the commission finds that an
100-17 appellant has received contributions from a source other than from
100-18 a ratepayer who resides outside the municipality or from another
100-19 municipality, the appeal and each commission order entered in the
100-20 appeal are void.
100-21 (g) The commission has jurisdiction in an appeal under this
100-22 section to review and ensure that the revenue requirements of a
100-23 municipally owned utility subject to this section are reasonable.
100-24 The jurisdiction under this subsection does not extend to
100-25 regulating the use and level of a transfer of the utility's
100-26 revenues to the municipality's general fund.
100-27 (h) The commission has jurisdiction to review the cost
101-1 allocation and rate design methodologies adopted by the governing
101-2 body of a municipally owned utility subject to this section. If
101-3 the commission finds that the cost-of-service methodologies result
101-4 in rates that are unjust, unreasonable, or unreasonably
101-5 discriminatory or unduly preferential to a customer class, the
101-6 commission may order the implementation of ratesetting
101-7 methodologies the commission finds reasonable. The commission's
101-8 jurisdiction under this subsection does not include intra-class
101-9 residential rate design.
101-10 (i) An intervenor in an appeal under this section is limited
101-11 to presenting evidence on cost allocation and rate design
101-12 methodologies, except that an intervenor may present evidence in
101-13 support of the municipality on an issue related to utility
101-14 revenues.
101-15 (j) A ratepayer of a municipally owned utility subject to
101-16 this section who resides outside the municipality may elect to
101-17 petition for review under either this section or Subchapter D when
101-18 appealing a rate ordinance or other ratesetting action of the
101-19 governing body of a municipality. (V.A.C.S. Art. 1446c-0, Sec.
101-20 2.108(e) (part).)
101-21 CHAPTER 34. ELECTRICAL PLANNING
101-22 SUBCHAPTER A. GENERAL PROVISIONS
101-23 Sec. 34.001. DEFINITION
101-24 Sec. 34.002. APPLICABILITY TO MUNICIPALLY OWNED UTILITY
101-25 Sec. 34.003. ADOPTION OF INTEGRATED RESOURCE PLANNING
101-26 PROCESS
101-27 Sec. 34.004. STATEWIDE INTEGRATED RESOURCE PLAN
102-1 Sec. 34.005. PROMOTION OF RENEWABLE ENERGY TECHNOLOGIES
102-2 Sec. 34.006. REVIEW OF STATE TRANSMISSION SYSTEM
102-3 (Sections 34.007-34.020 reserved for expansion)
102-4 SUBCHAPTER B. PRELIMINARY INTEGRATED RESOURCE PLAN
102-5 Sec. 34.021. PRELIMINARY INTEGRATED RESOURCE PLAN REQUIRED
102-6 Sec. 34.022. CONTENTS OF PRELIMINARY INTEGRATED RESOURCE
102-7 PLAN
102-8 Sec. 34.023. PUBLIC HEARING ON PRELIMINARY INTEGRATED
102-9 RESOURCE PLAN
102-10 Sec. 34.024. INTERIM ORDER ON PRELIMINARY INTEGRATED
102-11 RESOURCE PLAN; DEADLINE
102-12 (Sections 34.025-34.050 reserved for expansion)
102-13 SUBCHAPTER C. RESOURCE SOLICITATION
102-14 Sec. 34.051. COMMENCEMENT OF SOLICITATION
102-15 Sec. 34.052. SUBMISSION OF BIDS; CONFIDENTIALITY
102-16 Sec. 34.053. ELECTRIC UTILITY DEMAND-SIDE MANAGEMENT
102-17 PROGRAMS
102-18 Sec. 34.054. QUALIFYING FACILITY BIDS; AVOIDED COSTS
102-19 Sec. 34.055. EVALUATION OF BIDS; NEGOTIATION OF CONTRACTS
102-20 Sec. 34.056. APPLICATION FOR CERTIFICATE OF CONVENIENCE
102-21 AND NECESSITY FOR RESOURCE NOT INCLUDED IN
102-22 PRELIMINARY PLAN
102-23 (Sections 34.057-34.100 reserved for expansion)
102-24 SUBCHAPTER D. FINAL INTEGRATED RESOURCE PLAN
102-25 Sec. 34.101. SUBMISSION OF FINAL INTEGRATED RESOURCE PLAN
102-26 Sec. 34.102. PUBLIC HEARING ON FINAL INTEGRATED RESOURCE
102-27 PLAN
103-1 Sec. 34.103. RULING ON FINAL INTEGRATED RESOURCE PLAN;
103-2 DEADLINE
103-3 Sec. 34.104. CERTIFICATION OF CONTRACTS
103-4 Sec. 34.105. CERTIFICATE OF CONVENIENCE AND NECESSITY
103-5 (Sections 34.106-34.150 reserved for expansion)
103-6 SUBCHAPTER E. ACQUISITION OF RESOURCES OUTSIDE THE
103-7 INTEGRATED RESOURCE PLANNING PROCESS
103-8 Sec. 34.151. EXEMPTIONS FROM SOLICITATION PROCESS
103-9 Sec. 34.152. NONGENERATING ELECTRIC UTILITY SOLICITATIONS
103-10 Sec. 34.153. EXEMPTION FOR CERTAIN FACILITIES
103-11 (Sections 34.154-34.170 reserved for expansion)
103-12 SUBCHAPTER F. MISCELLANEOUS PROVISIONS
103-13 Sec. 34.171. COST RECOVERY AND INCENTIVES
103-14 Sec. 34.172. RECONCILIATION OF RECOVERED COSTS
103-15 Sec. 34.173. RESOURCE PLANNING EXPENSES
103-16 CHAPTER 34. ELECTRICAL PLANNING
103-17 SUBCHAPTER A. GENERAL PROVISIONS
103-18 Sec. 34.001. DEFINITION. In this chapter, "electric
103-19 utility" includes a river authority subject to Subchapter B,
103-20 Chapter 32, with respect to the area served by the river authority
103-21 on January 1, 1975. (V.A.C.S. Art. 1446c-0, Sec. 2.051(aa).)
103-22 Sec. 34.002. APPLICABILITY TO MUNICIPALLY OWNED UTILITY. A
103-23 municipally owned utility is not subject to the requirements of
103-24 this chapter, except that every three years each municipally owned
103-25 utility shall submit to the commission a report containing the
103-26 information prescribed by Section 34.022. (V.A.C.S. Art. 1446c-0,
103-27 Sec. 2.051(g).)
104-1 Sec. 34.003. ADOPTION OF INTEGRATED RESOURCE PLANNING
104-2 PROCESS. (a) The commission by rule shall develop an integrated
104-3 resource planning process to provide reliable energy service at the
104-4 lowest reasonable system cost.
104-5 (b) In determining the lowest reasonable system cost of an
104-6 electric utility's integrated resource plan, the commission shall
104-7 consider:
104-8 (1) direct costs;
104-9 (2) the effect on the rates and bills of various types
104-10 of customers;
104-11 (3) minimization of the risks of future fuel costs and
104-12 regulations;
104-13 (4) the appropriateness and reliability of the mix of
104-14 resources; and
104-15 (5) the cost of compliance with environmental
104-16 protection requirements of all applicable state and federal laws,
104-17 rules, and orders.
104-18 (c) An appropriate and reliable mix under Subsection (b)(4)
104-19 may include a portfolio of cost-effective sources of power,
104-20 including fueled and nonfueled resources, such as renewable
104-21 resources and conservation measures, and a mixture of long-term and
104-22 short-term contracts.
104-23 (d) In establishing a requirement under this chapter,
104-24 including a reporting requirement, the commission shall consider
104-25 and recognize the different capabilities of small and large
104-26 electric utilities. (V.A.C.S. Art. 1446c-0, Secs. 2.051(a), (d).)
104-27 Sec. 34.004. STATEWIDE INTEGRATED RESOURCE PLAN. (a) The
105-1 commission by rule shall adopt and periodically update a statewide
105-2 integrated resource plan that includes the commission's long-term
105-3 resource planning goals. The commission shall notify each electric
105-4 utility of the approval of the plan.
105-5 (b) The commission shall send a report on the statewide
105-6 integrated resource plan to the governor when it adopts or revises
105-7 the plan and make the report available to the public.
105-8 (c) The report on the statewide integrated resource plan
105-9 must include:
105-10 (1) historical data for electric consumption statewide
105-11 and by each electric utility;
105-12 (2) historical data for electric generation by each
105-13 electric utility and by type of capacity, including alternative
105-14 energy sources;
105-15 (3) an inventory of generation capacity statewide and
105-16 by each electric utility;
105-17 (4) quantitative data on demand-side management
105-18 programs to the extent the commission determines necessary;
105-19 (5) each generating electric utility's forecast
105-20 without adjustment;
105-21 (6) the commission's long-term resource planning goals
105-22 included in the plan;
105-23 (7) a projection of the need for electric services;
105-24 (8) a description of the approved individual
105-25 integrated resource plan of each electric utility; and
105-26 (9) an assessment of transmission planning being
105-27 conducted by electric utilities in this state. (V.A.C.S.
106-1 Art. 1446c-0, Secs. 2.051(b), (c).)
106-2 Sec. 34.005. PROMOTION OF RENEWABLE ENERGY TECHNOLOGIES.
106-3 The commission shall adopt rules consistent with the integrated
106-4 resource planning process to promote the development of renewable
106-5 energy technologies. (V.A.C.S. Art. 1446c-0, Sec. 2.051(v).)
106-6 Sec. 34.006. REVIEW OF STATE TRANSMISSION SYSTEM. In
106-7 carrying out its duties related to the integrated resource planning
106-8 process, the commission may review this state's transmission system
106-9 and make recommendations to electric utilities on the need to build
106-10 new power lines, upgrade power lines, and make other necessary
106-11 improvements and additions. (V.A.C.S. Art. 1446c-0, Sec. 2.051(w)
106-12 (part).)
106-13 (Sections 34.007-34.020 reserved for expansion)
106-14 SUBCHAPTER B. PRELIMINARY INTEGRATED RESOURCE PLAN
106-15 Sec. 34.021. PRELIMINARY INTEGRATED RESOURCE PLAN REQUIRED.
106-16 (a) Every three years each nongenerating electric utility planning
106-17 to construct generating resources and each generating electric
106-18 utility shall submit to the commission a preliminary integrated
106-19 resource plan covering a 10-year period.
106-20 (b) The commission by rule shall:
106-21 (1) establish a staggered schedule for the submission
106-22 of integrated resource plans by electric utilities;
106-23 (2) prescribe the form and manner in which a plan must
106-24 be submitted;
106-25 (3) adopt filing requirements and schedules; and
106-26 (4) prescribe the methods by which an electric utility
106-27 may recover supply-side and demand-side costs.
107-1 (c) The commission by rule may:
107-2 (1) define the scope and nature of public
107-3 participation in the development of the integrated resource plan;
107-4 and
107-5 (2) establish the general guidelines an electric
107-6 utility shall use to evaluate and to select or reject a resource,
107-7 including procedures governing the solicitation process. (V.A.C.S.
107-8 Art. 1446c-0, Sec. 2.051(e).)
107-9 Sec. 34.022. CONTENTS OF PRELIMINARY INTEGRATED RESOURCE
107-10 PLAN. (a) A preliminary integrated resource plan must include:
107-11 (1) the electric utility's forecast of future demands;
107-12 (2) an estimate of the energy savings and demand
107-13 reduction the electric utility can achieve during the time covered
107-14 by the plan by use of demand-side management resources and the
107-15 range of possible costs for those resources;
107-16 (3) if additional supply-side resources are needed to
107-17 meet future demand, an estimate of:
107-18 (A) the amount and operational characteristics
107-19 of the additional capacity needed;
107-20 (B) the types of viable supply-side resources
107-21 for meeting that need; and
107-22 (C) the range of probable costs of those
107-23 resources;
107-24 (4) if necessary, proposed requests for proposals to
107-25 be used in a solicitation of demand-side or supply-side resources,
107-26 or both;
107-27 (5) the specific criteria the electric utility will
108-1 use to evaluate and to select or reject demand-side or supply-side
108-2 resources;
108-3 (6) the methods by which the electric utility intends
108-4 to monitor demand-side or supply-side resources, or both as
108-5 appropriate, after selection;
108-6 (7) the method by which the electric utility intends
108-7 to allocate costs;
108-8 (8) a description of how the electric utility will
108-9 achieve equity among customer classes and provide demand-side
108-10 programs to each customer class, including tenants and low-income
108-11 ratepayers;
108-12 (9) any proposed incentive factors; and
108-13 (10) any other information the commission requires.
108-14 (b) If the commission adopts under Section 34.021(c) the
108-15 general guidelines an electric utility shall use to evaluate and to
108-16 select or reject a resource, the specific criteria proposed by the
108-17 electric utility under Subsection (a)(5) may deviate from those
108-18 guidelines only on a showing of good cause. (V.A.C.S.
108-19 Art. 1446c-0, Sec. 2.051(f).)
108-20 Sec. 34.023. PUBLIC HEARING ON PRELIMINARY INTEGRATED
108-21 RESOURCE PLAN. (a) If a preliminary integrated resource plan
108-22 includes a proposed solicitation of demand-side or supply-side
108-23 resources, the commission, on its own motion or on the motion of
108-24 the electric utility or an affected person, may convene a public
108-25 hearing on the adequacy and merits of the plan.
108-26 (b) Any interested person may intervene in the hearing and,
108-27 at the hearing, may present evidence and cross-examine witnesses
109-1 regarding the contents and adequacy of the preliminary integrated
109-2 resource plan.
109-3 (c) Discovery by a participant in the hearing is limited to:
109-4 (1) an issue relating to the development of the
109-5 preliminary integrated resource plan;
109-6 (2) a fact issue included in the plan; and
109-7 (3) other issues the commission is required to decide
109-8 relating to the plan.
109-9 (d) A hearing before the commission is not required for a
109-10 preliminary integrated resource plan filed by a river authority or
109-11 generating electric cooperative that does not intend to build a new
109-12 generating plant. (V.A.C.S. Art. 1446c-0, Sec. 2.051(h) (part).)
109-13 Sec. 34.024. INTERIM ORDER ON PRELIMINARY INTEGRATED
109-14 RESOURCE PLAN; DEADLINE. (a) After conducting a hearing on a
109-15 preliminary integrated resource plan under Section 34.023, the
109-16 commission shall determine:
109-17 (1) whether the plan is based on substantially
109-18 accurate data and an adequate method of forecasting;
109-19 (2) whether the plan identifies and takes into account
109-20 any present and projected reduction in the demand for energy that
109-21 may result from cost-effective measures to improve conservation and
109-22 energy efficiency in various customer classes of the area being
109-23 served;
109-24 (3) if additional supply-side resources are needed to
109-25 meet future demand, whether the plan adequately demonstrates:
109-26 (A) the amount and operational characteristics
109-27 of the additional capacity needed;
110-1 (B) the types of viable supply-side resources
110-2 for meeting that need; and
110-3 (C) the range of probable costs of those
110-4 resources;
110-5 (4) whether the plan describes opportunities for
110-6 appropriate persons to participate in developing the plan;
110-7 (5) whether the specific criteria the electric utility
110-8 will use to evaluate and to select or reject resources are
110-9 reasonable and consistent with the guidelines of the integrated
110-10 resource planning process;
110-11 (6) whether the cost allocation method proposed by the
110-12 electric utility is reasonable;
110-13 (7) how the electric utility will achieve equity among
110-14 customer classes and provide demand-side programs to each customer
110-15 class, including tenants and low-income ratepayers; and
110-16 (8) whether any incentive factors are appropriate and,
110-17 if so, the levels of the factors.
110-18 (b) Not later than the 180th day after the date an electric
110-19 utility submits a preliminary integrated resource plan, the
110-20 commission shall issue an interim order approving the plan,
110-21 approving the plan as modified by the commission, or remanding the
110-22 plan for additional proceedings. The commission may extend the
110-23 deadline for not more than 30 days for extenuating circumstances
110-24 encountered in the development and processing of the plan if the
110-25 circumstances are fully explained and agreed on by the
110-26 commissioners. (V.A.C.S. Art. 1446c-0, Secs. 2.051(i), (j).)
110-27 (Sections 34.025-34.050 reserved for expansion)
111-1 SUBCHAPTER C. RESOURCE SOLICITATION
111-2 Sec. 34.051. COMMENCEMENT OF SOLICITATION. (a) After the
111-3 commission approves an electric utility's preliminary integrated
111-4 resource plan, the utility shall conduct solicitations of
111-5 demand-side and supply-side resources as prescribed by the plan.
111-6 (b) In addition to soliciting resources from a nonaffiliated
111-7 third party, an electric utility may:
111-8 (1) prepare and submit a bid of a new utility
111-9 demand-side management program as prescribed by Section 34.053;
111-10 (2) receive bids from one or more affiliates; and
111-11 (3) request a certificate of convenience and necessity
111-12 for a new rate-based generating plant. (V.A.C.S. Art. 1446c-0,
111-13 Sec. 2.051(k).)
111-14 Sec. 34.052. SUBMISSION OF BIDS; CONFIDENTIALITY. (a) Each
111-15 bidder under Section 34.051, including the electric utility
111-16 conducting the solicitation and each bidding affiliate, shall
111-17 submit two copies of its bid to the commission. The commission
111-18 shall ensure that the electric utility has access to all bids at
111-19 the same time.
111-20 (b) The commission shall keep a copy of each bid submitted
111-21 by the electric utility conducting the solicitation or a bidding
111-22 affiliate to determine whether the utility complied with the
111-23 criteria established for conducting the solicitation.
111-24 (c) A bid submitted or retained under this section is
111-25 confidential and is not subject to disclosure under Chapter 552,
111-26 Government Code. (V.A.C.S. Art. 1446c-0, Sec. 2.051(l).)
111-27 Sec. 34.053. ELECTRIC UTILITY DEMAND-SIDE MANAGEMENT
112-1 PROGRAMS. (a) An electric utility that intends to use a proposed
112-2 demand-side management program to meet a need identified by the
112-3 utility's preliminary integrated resource plan must prepare a bid
112-4 reflecting that resource.
112-5 (b) A bid prepared by an electric utility under this section
112-6 must comply with the solicitation, evaluation, selection, and
112-7 rejection criteria specified by the utility's preliminary
112-8 integrated resource plan. The electric utility may not give
112-9 preferential treatment or consideration to the bid. (V.A.C.S.
112-10 Art. 1446c-0, Sec. 2.051(m).)
112-11 Sec. 34.054. QUALIFYING FACILITY BIDS; AVOIDED COSTS. (a)
112-12 The submission of a bid under this chapter by a qualifying
112-13 facility, regardless of whether the bid is accepted or rejected,
112-14 with respect to the capacity need for which the bid is submitted:
112-15 (1) is a waiver by the qualifying facility of any
112-16 right it may otherwise have under law to sell capacity to the
112-17 electric utility;
112-18 (2) represents the qualifying facility's agreement to
112-19 negotiate a rate for the purchase of capacity and terms relating to
112-20 the purchase that differ from the rate or terms that would
112-21 otherwise be required by 18 CFR Chapter I, Subchapter K, Part 292,
112-22 Subpart C; and
112-23 (3) is a waiver by the qualifying facility of its
112-24 right to the rate or terms for a purchase of capacity by the
112-25 electric utility that might otherwise be required by 18 CFR Chapter
112-26 I, Subchapter K, Part 292, Subpart C.
112-27 (b) The avoided capacity costs under 18 CFR Chapter I,
113-1 Subchapter K, Part 292, Subpart C, of an electric utility that has
113-2 submitted a preliminary integrated resource plan to the commission
113-3 under this chapter is $0 and remains $0, with respect to any
113-4 capacity needs shown in the preliminary plan or final plan that are
113-5 to be satisfied by resources approved in the utility's final plan.
113-6 (c) This section does not affect the validity of a contract
113-7 entered into between an electric utility and a qualifying facility
113-8 for any purchase. (V.A.C.S. Art. 1446c-0, Sec. 2.051(z).)
113-9 Sec. 34.055. EVALUATION OF BIDS; NEGOTIATION OF CONTRACTS.
113-10 (a) An electric utility shall evaluate each bid submitted,
113-11 including an affiliate bid, in accordance with the criteria
113-12 specified by the utility's preliminary integrated resource plan and
113-13 shall negotiate each necessary contract.
113-14 (b) An electric utility is not required to accept a bid and
113-15 may reject any or all bids in accordance with the selection and
113-16 rejection criteria specified by the utility's preliminary
113-17 integrated resource plan. (V.A.C.S. Art. 1446c-0, Sec. 2.051(n)
113-18 (part).)
113-19 Sec. 34.056. APPLICATION FOR CERTIFICATE OF CONVENIENCE AND
113-20 NECESSITY FOR RESOURCE NOT INCLUDED IN PRELIMINARY PLAN.
113-21 If the results of the solicitation and contract
113-22 negotiations do not meet the supply-side needs identified by the
113-23 electric utility's preliminary integrated resource plan, the
113-24 utility may apply for a certificate of convenience and necessity
113-25 for a utility-owned resource addition, notwithstanding that a
113-26 solicitation was conducted and the resource addition was not
113-27 included in the approved plan. (V.A.C.S. Art. 1446c-0, Sec.
114-1 2.051(n) (part).)
114-2 (Sections 34.057-34.100 reserved for expansion)
114-3 SUBCHAPTER D. FINAL INTEGRATED RESOURCE PLAN
114-4 Sec. 34.101. SUBMISSION OF FINAL INTEGRATED RESOURCE PLAN.
114-5 After conducting each solicitation and negotiating each contract,
114-6 an electric utility shall submit a proposed final integrated
114-7 resource plan to the commission. The proposed plan must include:
114-8 (1) the results of each solicitation;
114-9 (2) any contracts for resources;
114-10 (3) the terms under which the electric utility will
114-11 provide resources to meet a need identified by the preliminary
114-12 integrated resource plan, if the electric utility accepts a bid
114-13 submitted under Section 34.053; and
114-14 (4) an application for a certificate of convenience
114-15 and necessity, if necessary. (V.A.C.S. Art. 1446c-0, Sec.
114-16 2.051(o).)
114-17 Sec. 34.102. PUBLIC HEARING ON FINAL INTEGRATED RESOURCE
114-18 PLAN. (a) The commission, on request by an affected person, shall
114-19 convene a public hearing on the reasonableness and
114-20 cost-effectiveness of a proposed final integrated resource plan.
114-21 The commission shall convene the hearing, if requested, not later
114-22 than the 90th day after the date the electric utility files its
114-23 proposed plan.
114-24 (b) Any interested person may intervene in the hearing and,
114-25 at the hearing, may present evidence and cross-examine witnesses
114-26 regarding the reasonableness and cost-effectiveness of the proposed
114-27 final integrated resource plan.
115-1 (c) A party to the hearing may not litigate or conduct
115-2 discovery on an issue that was or could have been litigated in
115-3 connection with the filing of the electric utility's preliminary
115-4 integrated resource plan.
115-5 (d) To the extent permitted by federal law, the commission
115-6 may issue a written order for access to the books, accounts,
115-7 memoranda, contracts, or other records of an exempt wholesale
115-8 generator or power marketer selling energy at wholesale to an
115-9 electric utility, if access is required for the effective discharge
115-10 of the commission's regulatory responsibilities under this
115-11 subtitle. The materials obtained by the commission under this
115-12 subsection are confidential and are not subject to disclosure under
115-13 Chapter 552, Government Code. (V.A.C.S. Art. 1446c-0, Sec.
115-14 2.051(p).)
115-15 Sec. 34.103. RULING ON FINAL INTEGRATED RESOURCE PLAN;
115-16 DEADLINE. (a) After conducting a hearing on a proposed final
115-17 integrated resource plan under Section 34.102, the commission shall
115-18 determine whether:
115-19 (1) the final plan was developed in accordance with
115-20 the electric utility's preliminary integrated resource plan and
115-21 commission rules;
115-22 (2) the resource solicitations, evaluations,
115-23 selections, and rejections were conducted in accordance with the
115-24 criteria included in the utility's preliminary plan;
115-25 (3) the final plan is cost-effective;
115-26 (4) the final plan is equitable among customer classes
115-27 and provides demand-side programs to each customer class, including
116-1 tenants and low-income ratepayers;
116-2 (5) the commission should certify each contract and
116-3 electric utility bid submitted under Section 34.053 that resulted
116-4 from the solicitations; and
116-5 (6) the commission should grant a requested
116-6 certificate of convenience and necessity for an electric
116-7 utility-owned resource addition.
116-8 (b) Not later than the 180th day after the date an electric
116-9 utility submits a proposed final integrated resource plan, the
116-10 commission shall issue a final order approving the plan, approving
116-11 the plan as modified by the commission, or remanding the plan for
116-12 additional proceedings. (V.A.C.S. Art. 1446c-0, Secs. 2.051(q),
116-13 (t).)
116-14 Sec. 34.104. CERTIFICATION OF CONTRACTS. (a) In
116-15 determining whether to certify a supply-side or demand-side
116-16 contract that results from a solicitation, the commission shall
116-17 consider:
116-18 (1) the reliability, financial condition, and safety
116-19 of the resource contract; and
116-20 (2) whether the solicitation, evaluation, and
116-21 selection of the resource contract was conducted in accordance with
116-22 the criteria included in the electric utility's preliminary
116-23 integrated resource plan.
116-24 (b) In addition to the considerations in Subsection (a), if
116-25 a contract proposed for certification is between an electric
116-26 utility and its affiliate, the commission shall determine whether:
116-27 (1) the utility treated and considered the affiliate's
117-1 bid in the same manner it treated and considered each other bid
117-2 intended to meet the same resource needs;
117-3 (2) the transaction will benefit consumers;
117-4 (3) the transaction violates any state law, including
117-5 least-cost planning;
117-6 (4) the transaction provides the affiliate with an
117-7 unfair competitive advantage by virtue of its affiliation or
117-8 association with the utility;
117-9 (5) the transaction is in the public interest; and
117-10 (6) the commission has sufficient regulatory
117-11 authority, resources, and access to the books and records of the
117-12 utility and its affiliate to make the determination required by
117-13 this subsection.
117-14 (c) The commission may not certify a contract for a new
117-15 purchase of power by an electric utility unless the utility has
117-16 determined, after giving consideration to consistently applied
117-17 regional or national reliability standards, guidelines, or
117-18 criteria, that:
117-19 (1) the contract would not unreasonably impair the
117-20 continued reliability of electric systems affected by the purchase;
117-21 and
117-22 (2) the purchase can reasonably be expected to produce
117-23 benefits to customers of the purchasing utility.
117-24 (d) Commission certification of a resource contract under
117-25 this section does not negate the necessity of the resource to
117-26 comply with all applicable environmental and siting regulations.
117-27 (e) In establishing an electric utility's rates, a
118-1 regulatory authority shall consider a payment made under a
118-2 certified contract to be a reasonable and necessary operating
118-3 expense of the utility during the period for which the certified
118-4 contract is effective. A regulatory authority may provide for
118-5 monthly recovery of approved costs of the contract as those costs
118-6 are incurred, including any markup allowed by the commission.
118-7 (V.A.C.S. Art. 1446c-0, Sec. 2.051(r).)
118-8 Sec. 34.105. CERTIFICATE OF CONVENIENCE AND NECESSITY. (a)
118-9 In determining whether to grant a certificate of convenience and
118-10 necessity requested by an electric utility in the utility's
118-11 proposed final integrated resource plan, the commission shall
118-12 consider:
118-13 (1) the effect of granting the certificate on the
118-14 recipient of the certificate and on any electric utility serving
118-15 the proximate area; and
118-16 (2) other factors, such as:
118-17 (A) community values;
118-18 (B) recreational and park areas;
118-19 (C) historical and aesthetic values;
118-20 (D) environmental integrity; and
118-21 (E) the probable improvement of service or
118-22 lowering of cost to consumers in the area if the certificate is
118-23 granted.
118-24 (b) The commission shall grant a requested certificate of
118-25 convenience and necessity as part of the commission's approval of a
118-26 final integrated resource plan if the commission finds that:
118-27 (1) the proposed resource addition is necessary under
119-1 the plan;
119-2 (2) the proposed resource addition is the best and
119-3 most economical choice of technology for the service area; and
119-4 (3) cost-effective conservation and other
119-5 cost-effective alternative energy sources cannot reasonably meet
119-6 the need. (V.A.C.S. Art. 1446c-0, Sec. 2.051(s).)
119-7 (Sections 34.106-34.150 reserved for expansion)
119-8 SUBCHAPTER E. ACQUISITION OF RESOURCES OUTSIDE THE
119-9 INTEGRATED RESOURCE PLANNING PROCESS
119-10 Sec. 34.151. EXEMPTIONS FROM SOLICITATION PROCESS. (a) The
119-11 commission shall adopt rules allowing an electric utility to add
119-12 new or incremental resources outside the solicitation process,
119-13 consistent with the utility's last approved integrated resource
119-14 planning goals, including resources listed in Subsection (b).
119-15 (b) Consistent with an electric utility's last approved
119-16 integrated resource planning goals, if any, an electric utility,
119-17 including a nongenerating electric utility, may add new or
119-18 incremental resources outside the solicitation process, including:
119-19 (1) contract renegotiation for existing capacity from
119-20 an electric cooperative or nonaffiliated power generating facility;
119-21 (2) electric cooperative or nonaffiliated demand-side
119-22 management programs or renewable resources;
119-23 (3) capacity purchases with two-year or shorter terms
119-24 from an electric cooperative or nonaffiliated power supplier;
119-25 (4) capacity purchases necessary to satisfy
119-26 unanticipated emergency conditions;
119-27 (5) the exercise of an option in a purchased power
120-1 contract with an electric cooperative or nonaffiliated supplier;
120-2 and
120-3 (6) renewable distributed resources, located at or
120-4 near the point of consumption, if the resources are less costly
120-5 than transmission extensions or upgrades.
120-6 (c) The addition of new or incremental resources by an
120-7 electric utility under Subsection (b) does not require an amendment
120-8 to the utility's integrated resource plan. (V.A.C.S. Art. 1446c-0,
120-9 Secs. 2.051(u), (x), (y).)
120-10 Sec. 34.152. NONGENERATING ELECTRIC UTILITY SOLICITATIONS.
120-11 (a) A nongenerating electric utility not planning to construct
120-12 generating facilities shall conduct a solicitation of resources if
120-13 the utility seeks to purchase from a wholesale power supplier other
120-14 than the utility's existing power supplier more than 25 percent of
120-15 the utility's peak demand or more than 70 megawatts. A
120-16 nongenerating electric utility is not required to conduct a
120-17 solicitation for a purchase from an existing power supplier and the
120-18 utility may add new or incremental resources outside the
120-19 solicitation process as provided by Section 34.151.
120-20 (b) The commission, on request by the nongenerating electric
120-21 utility, may review a proposed contract for resources resulting
120-22 from a solicitation to determine the contract's reasonableness.
120-23 The commission shall certify the proposed contract if the
120-24 commission finds that the contract is reasonable. The commission
120-25 shall make its determination not later than the 90th day after the
120-26 date the proposed contract is submitted.
120-27 (c) This section does not alter or amend a wholesale power
121-1 supply contract executed before September 1, 1995. (V.A.C.S.
121-2 Art. 1446c-0, Sec. 2.051(bb) (part).)
121-3 Sec. 34.153. EXEMPTION FOR CERTAIN FACILITIES. (a) To
121-4 provide for the orderly transition to an integrated resource
121-5 planning process and to avoid delays in the construction of
121-6 resources necessary to provide electric service, an integrated
121-7 resource plan is not required for issuance of a certificate of
121-8 convenience and necessity for the construction of a generating
121-9 facility if:
121-10 (1) the commission approved the electric utility's
121-11 notice of intent relating to the facility before September 1, 1995;
121-12 (2) the electric utility has conducted a solicitation
121-13 for resources to meet the need identified by the utility's notice
121-14 of intent in accordance with commission rules in effect at the time
121-15 of the solicitation; and
121-16 (3) the electric utility has submitted to the
121-17 commission the results of the solicitation and an application for
121-18 certification of the facility to meet the need identified by the
121-19 utility's notice of intent.
121-20 (b) The commission shall grant a certificate of convenience
121-21 and necessity for a generating facility to which this section
121-22 applies if:
121-23 (1) the facility is needed to meet future demand;
121-24 (2) the facility is the best and most economical
121-25 choice of technology for the service area; and
121-26 (3) cost-effective conservation and cost-effective
121-27 alternative energy sources cannot reasonably meet the need.
122-1 (V.A.C.S. Art. 1446c-0, Sec. 2.051(dd).)
122-2 (Sections 34.154-34.170 reserved for expansion)
122-3 SUBCHAPTER F. MISCELLANEOUS PROVISIONS
122-4 Sec. 34.171. COST RECOVERY AND INCENTIVES. In carrying out
122-5 its duties related to the integrated resource planning process, the
122-6 commission may:
122-7 (1) allow timely recovery of the reasonable costs of
122-8 conservation, load management, and purchased power, notwithstanding
122-9 Section 36.201; and
122-10 (2) authorize additional incentives for conservation,
122-11 load management, purchased power, and renewable resources.
122-12 (V.A.C.S. Art. 1446c-0, Sec. 2.051(w) (part).)
122-13 Sec. 34.172. RECONCILIATION OF RECOVERED COSTS. (a) To the
122-14 extent that the commission authorizes an electric utility to
122-15 recover the costs of demand-side management programs, conservation,
122-16 load management, or purchased power through cost recovery factors,
122-17 the commission shall make a final reconciliation of the costs
122-18 recovered through the cost recovery factors.
122-19 (b) The commission shall adopt rules regarding:
122-20 (1) the timing of reconciliations for each cost
122-21 recovery factor;
122-22 (2) the information an electric utility must file in
122-23 support of each reconciliation; and
122-24 (3) other matters necessary to accomplish the
122-25 reconciliation.
122-26 (c) Each reconciliation must:
122-27 (1) review the reasonableness of the electric
123-1 utility's administration of the contracts and programs the costs of
123-2 which are being reconciled; and
123-3 (2) reconcile the revenue collected under each cost
123-4 recovery factor and the costs that the utility incurred on
123-5 purchased power, demand-side management, conservation, or load
123-6 management, as applicable, during the reconciliation period.
123-7 (V.A.C.S. Art. 1446c-0, Sec. 2.051(cc).)
123-8 Sec. 34.173. RESOURCE PLANNING EXPENSES. (a) To the extent
123-9 that an electric utility is required by the commission to reimburse
123-10 a municipality for expenses incurred while participating in a
123-11 proceeding under this chapter, the commission shall, as part of the
123-12 commission's approval of the utility's integrated resource plan,
123-13 authorize a surcharge to be included in the utility's rates to
123-14 allow the utility to recover the amount paid to the municipality
123-15 before the utility's next preliminary integrated resource plan is
123-16 filed.
123-17 (b) An electric utility may recover its reasonable expenses
123-18 arising from planning, preparing, and participating in a proceeding
123-19 under this chapter only after commission review is conducted in
123-20 accordance with Subchapter C or D, Chapter 36. (V.A.C.S.
123-21 Art. 1446c-0, Sec. 2.051(ee).)
123-22 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS
123-23 SUBCHAPTER A. COMPETITION AND TRANSMISSION ACCESS
123-24 IN THE WHOLESALE MARKET
123-25 Sec. 35.001. DEFINITION
123-26 Sec. 35.002. RIGHT TO COMPETE AT WHOLESALE
123-27 Sec. 35.003. PURCHASE FROM AFFILIATE; UNDUE PREFERENCE
124-1 PROHIBITED
124-2 Sec. 35.004. PROVISION OF TRANSMISSION SERVICE
124-3 Sec. 35.005. AUTHORITY TO ORDER TRANSMISSION SERVICE
124-4 Sec. 35.006. RULES RELATED TO WHOLESALE TRANSMISSION SERVICE,
124-5 RATES, AND ACCESS
124-6 Sec. 35.007. TARIFFS REQUIRED
124-7 Sec. 35.008. ALTERNATIVE DISPUTE RESOLUTION
124-8 Sec. 35.0081. REPORT TO LEGISLATURE CONCERNING STRANDED
124-9 COST
124-10 (Sections 35.009-35.030 reserved for expansion)
124-11 SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS AND POWER MARKETERS
124-12 Sec. 35.031. AUTHORITY TO OPERATE
124-13 Sec. 35.032. COMMISSION REGISTRATION AND REQUIRED REPORTS
124-14 Sec. 35.033. AFFILIATE WHOLESALE PROVIDER
124-15 Sec. 35.034. TRANSFER OF ASSETS
124-16 Sec. 35.035. VALUATION AND ACCOUNTING OF TRANSFERRED ASSETS
124-17 (Sections 35.036-35.060 reserved for expansion)
124-18 SUBCHAPTER C. QUALIFYING FACILITIES
124-19 Sec. 35.061. ENCOURAGEMENT OF ECONOMICAL PRODUCTION
124-20 Sec. 35.062. APPLICATION FOR CERTIFICATION
124-21 Sec. 35.063. HEARING
124-22 Sec. 35.064. CERTIFICATION STANDARDS
124-23 Sec. 35.065. DEADLINES FOR COMMISSION ACTION
124-24 Sec. 35.066. TERM OF CERTIFICATION
124-25 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS
124-26 SUBCHAPTER A. COMPETITION AND TRANSMISSION ACCESS
124-27 IN THE WHOLESALE MARKET
125-1 Sec. 35.001. DEFINITION. In this subchapter, "electric
125-2 utility" includes a municipally owned utility. (V.A.C.S.
125-3 Art. 1446c-0, Sec. 2.057(g).)
125-4 Sec. 35.002. RIGHT TO COMPETE AT WHOLESALE. A provider of
125-5 generation, including an electric utility affiliate, exempt
125-6 wholesale generator, and qualifying facility, may compete for the
125-7 business of selling power. (V.A.C.S. Art. 1446c-0, Sec. 2.057(f)
125-8 (part).)
125-9 Sec. 35.003. PURCHASE FROM AFFILIATE; UNDUE PREFERENCE
125-10 PROHIBITED. (a) An electric utility may purchase power from an
125-11 affiliate in accordance with this title.
125-12 (b) An electric utility may not grant an undue preference to
125-13 a person in connection with the utility's purchase or sale of
125-14 electric energy at wholesale or other utility service. (V.A.C.S.
125-15 Art. 1446c-0, Sec. 2.057(f) (part).)
125-16 Sec. 35.004. PROVISION OF TRANSMISSION SERVICE. (a) An
125-17 electric utility that owns or operates transmission facilities
125-18 shall provide wholesale transmission service at rates and terms,
125-19 including terms of access, that are comparable to the rates and
125-20 terms of the utility's use of its system.
125-21 (b) The commission shall ensure that an electric utility
125-22 provides nondiscriminatory access to transmission service for
125-23 qualifying facilities, exempt wholesale generators, power
125-24 marketers, and other electric utilities.
125-25 (c) When an electric utility provides transmission service
125-26 at the request of a third party, the commission shall ensure that
125-27 the utility recovers the utility's reasonable costs in providing
126-1 transmission services necessary for the transaction from the entity
126-2 for which the transmission is provided so that the utility's other
126-3 customers do not bear the costs of the service. (V.A.C.S.
126-4 Art. 1446c-0, Secs. 2.057(a) (part), (c).)
126-5 Sec. 35.005. AUTHORITY TO ORDER TRANSMISSION SERVICE. (a)
126-6 The commission may require an electric utility to provide
126-7 transmission service at wholesale to another electric utility, a
126-8 qualifying facility, an exempt wholesale generator, or a power
126-9 marketer and may determine whether terms for the transmission
126-10 service are reasonable.
126-11 (b) The commission may require transmission service at
126-12 wholesale, including the construction or enlargement of a facility,
126-13 in a proceeding not related to approval of an integrated resource
126-14 plan.
126-15 (c) The commission may not issue a decision or rule relating
126-16 to transmission service that is contrary to an applicable decision,
126-17 rule, or policy statement of a federal regulatory agency having
126-18 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 2.056(a).)
126-19 Sec. 35.006. RULES RELATED TO WHOLESALE TRANSMISSION
126-20 SERVICE, RATES, AND ACCESS. (a) The commission shall adopt rules
126-21 relating to wholesale transmission service, rates, and access. The
126-22 rules:
126-23 (1) must be consistent with the standards in this
126-24 subchapter;
126-25 (2) may not be contrary to federal law, including any
126-26 applicable decision, rule, or policy statement of a federal
126-27 regulatory agency having jurisdiction;
127-1 (3) must require transmission services that are not
127-2 less than the transmission services the Federal Energy Regulatory
127-3 Commission may require in similar circumstances;
127-4 (4) must require that an electric utility provide all
127-5 ancillary services associated with the utility's discounted
127-6 wholesale sales at the same prices and under the same terms as the
127-7 services are provided to a third person; and
127-8 (5) must require that an electric utility provide all
127-9 ancillary services associated with the utility's discounted
127-10 wholesale sales to a third person on request.
127-11 (b) The commission shall adopt rules relating to the
127-12 registration and reporting requirements of a qualifying facility,
127-13 exempt wholesale generator, and power marketer. (V.A.C.S.
127-14 Art. 1446c-0, Secs. 2.057(a) (part), (b).)
127-15 Sec. 35.007. TARIFFS REQUIRED. (a) Except as provided by
127-16 Subsection (b), an electric utility that owns or operates a
127-17 transmission facility shall file a tariff in compliance with
127-18 commission rules adopted under Section 35.006.
127-19 (b) An electric utility is not required to file a tariff
127-20 under this section if the utility's terms for access and pricing
127-21 for wholesale transmission service are included in another electric
127-22 utility's tariff.
127-23 (c) An electric utility shall file a tariff required by this
127-24 section with the appropriate state or federal regulatory agency
127-25 having jurisdiction over the utility's transmission service.
127-26 (V.A.C.S. Art. 1446c-0, Sec. 2.057(a) (part).)
127-27 Sec. 35.008. ALTERNATIVE DISPUTE RESOLUTION. The commission
128-1 may require that each party to a dispute concerning prices or terms
128-2 of wholesale transmission service engage in a nonbinding
128-3 alternative dispute resolution process before seeking resolution of
128-4 the dispute by the commission. (V.A.C.S. Art. 1446c-0, Sec.
128-5 2.057(d).)
128-6 Sec. 35.0081. REPORT TO LEGISLATURE CONCERNING STRANDED
128-7 COST. (a) The commission shall report to the 75th Legislature on
128-8 methods or procedures to quantify the magnitude of stranded
128-9 investment, procedures for allocating costs, and acceptable methods
128-10 of recovering stranded costs.
128-11 (b) This section expires January 12, 1999. (V.A.C.S.
128-12 Art. 1446c-0, Sec. 2.057(e).)
128-13 (Sections 35.009-35.030 reserved for expansion)
128-14 SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS AND POWER MARKETERS
128-15 Sec. 35.031. AUTHORITY TO OPERATE. An exempt wholesale
128-16 generator or power marketer may sell electric energy only at
128-17 wholesale. (V.A.C.S. Art. 1446c-0, Sec. 2.053(a).)
128-18 Sec. 35.032. COMMISSION REGISTRATION AND REQUIRED REPORTS.
128-19 (a) An exempt wholesale generator or power marketer that sells
128-20 electric energy in this state shall, not later than the 30th day
128-21 after the date it becomes subject to this section:
128-22 (1) register with the commission; or
128-23 (2) provide to the commission proof that it has
128-24 registered with the Federal Energy Regulatory Commission or has
128-25 been authorized by the Federal Energy Regulatory Commission to sell
128-26 electric energy at market-based rates.
128-27 (b) The exempt wholesale generator or power marketer may
129-1 register by filing with the commission:
129-2 (1) a description of the location of any facility used
129-3 to provide service;
129-4 (2) a description of the type of service provided;
129-5 (3) a copy of any information filed with the Federal
129-6 Energy Regulatory Commission in connection with registration with
129-7 that commission; and
129-8 (4) other information required by commission rule.
129-9 (c) An exempt wholesale generator or power marketer required
129-10 to register under Subsection (a) shall file any report required by
129-11 commission rule. (V.A.C.S. Art. 1446c-0, Secs. 2.053(b), (c).)
129-12 Sec. 35.033. AFFILIATE WHOLESALE PROVIDER. An affiliate of
129-13 an electric utility may be an exempt wholesale generator or power
129-14 marketer and may sell electric energy to its affiliated electric
129-15 utility in accordance with Chapter 34 and other laws governing
129-16 wholesale sales of electric energy. (V.A.C.S. Art. 1446c-0, Sec.
129-17 2.054(a).)
129-18 Sec. 35.034. TRANSFER OF ASSETS. (a) Unless an electric
129-19 utility receives commission approval under Subsection (b), the
129-20 utility may not sell or transfer a facility to an affiliate or
129-21 otherwise consider the facility to be an eligible facility as
129-22 defined by federal law if on May 27, 1995, the utility had a rate
129-23 or charge in effect:
129-24 (1) for or in connection with the construction of the
129-25 facility;
129-26 (2) for electric energy produced by the construction
129-27 of the facility; or
130-1 (3) for electric energy produced by the facility other
130-2 than a portion of a rate or charge that represents recovery of the
130-3 cost of a wholesale rate or charge.
130-4 (b) The commission, after notice and hearing, may allow an
130-5 electric utility to sell or transfer a facility governed by
130-6 Subsection (a) to an affiliate or otherwise allow the facility to
130-7 become an eligible facility only if the transaction:
130-8 (1) will benefit ratepayers of the utility making the
130-9 sale or transfer;
130-10 (2) is in the public interest; and
130-11 (3) otherwise complies with state law. (V.A.C.S.
130-12 Art. 1446c-0, Sec. 2.054(b).)
130-13 Sec. 35.035. VALUATION AND ACCOUNTING OF TRANSFERRED ASSETS.
130-14 (a) A transfer of assets from an electric utility to an affiliated
130-15 exempt wholesale generator or power marketer shall be valued at the
130-16 greater of net book cost or fair market value.
130-17 (b) A transfer of assets from an exempt wholesale generator
130-18 or power marketer to an affiliated electric utility shall be valued
130-19 at the lesser of net book cost or fair market value.
130-20 (c) At the time that a transfer of assets between an
130-21 electric utility and an affiliated exempt wholesale generator or
130-22 power marketer is approved, the commission shall order the utility
130-23 to adjust its rates so that the utility's tariffs reflect benefits
130-24 from the proceeds of the sale and exclude any costs associated with
130-25 the transferred facility. (V.A.C.S. Art. 1446c-0, Sec. 2.054(c).)
130-26 (Sections 35.036-35.060 reserved for expansion)
131-1 SUBCHAPTER C. QUALIFYING FACILITIES
131-2 Sec. 35.061. ENCOURAGEMENT OF ECONOMICAL PRODUCTION. The
131-3 commission shall adopt and enforce rules to encourage the
131-4 economical production of electric energy by qualifying facilities.
131-5 (V.A.C.S. Art. 1446c-0, Sec. 2.052(a).)
131-6 Sec. 35.062. APPLICATION FOR CERTIFICATION. (a) An
131-7 electric utility or a qualifying facility may submit to the
131-8 commission for certification a copy of an agreement between the
131-9 utility and facility for the purchase of capacity.
131-10 (b) An agreement submitted for certification under this
131-11 section may provide that the agreement is contingent on
131-12 certification by the commission. (V.A.C.S. Art. 1446c-0, Sec.
131-13 2.209(b) (part).)
131-14 Sec. 35.063. HEARING. (a) The commission, on its own
131-15 motion or on the request of a party to the agreement or another
131-16 affected person, may conduct a hearing on an agreement for which
131-17 certification is sought under Section 35.062.
131-18 (b) A request for a hearing or a commission decision to hold
131-19 a hearing must be made not later than the 90th day after the date
131-20 the agreement is submitted to the commission. (V.A.C.S.
131-21 Art. 1446c-0, Sec. 2.209(d) (part).)
131-22 Sec. 35.064. CERTIFICATION STANDARDS. The commission shall
131-23 certify an agreement submitted under Section 35.062 if the
131-24 agreement:
131-25 (1) provides for payments over the contract term that
131-26 are equal to or less than the electric utility's avoided costs, as
131-27 established by the commission and in effect at the time the
132-1 agreement was signed; and
132-2 (2) provides the electric utility the opportunity to
132-3 acquire the cogeneration or small-power production installation
132-4 before the installation is offered to another purchaser or provides
132-5 other sufficient assurance that the electric utility will be
132-6 provided with a comparable supply of electricity, if the qualifying
132-7 facility ceases to operate the installation. (V.A.C.S.
132-8 Art. 1446c-0, Secs. 2.209(b) (part), (c) (part).)
132-9 Sec. 35.065. DEADLINES FOR COMMISSION ACTION. (a) Except
132-10 as provided by Subsection (b), the commission shall make its
132-11 determination regarding whether a certification should be granted
132-12 under Section 35.064 not later than the 90th day after the date the
132-13 agreement is submitted.
132-14 (b) If a hearing is held under Section 35.063, the
132-15 commission shall make its determination regarding whether a
132-16 certification should be granted not later than the 120th day after
132-17 the date the agreement is submitted, except that this deadline is
132-18 extended by two days for each day in excess of five days on which
132-19 the commission conducts a hearing on the merits of the
132-20 certification.
132-21 (c) If the commission does not make a determination by the
132-22 date provided by Subsection (a) or (b), as applicable, the
132-23 agreement is considered to meet the requirements of Section 35.064
132-24 and the certification is considered granted. (V.A.C.S.
132-25 Art. 1446c-0, Secs. 2.209(c) (part), (d) (part).)
132-26 Sec. 35.066. TERM OF CERTIFICATION. A certification of an
132-27 agreement granted under this subchapter is effective until the
133-1 earlier of:
133-2 (1) the expiration date of the agreement; or
133-3 (2) the 15th anniversary of the date of the
133-4 certification. (V.A.C.S. Art. 1446c-0, Sec. 2.209(c) (part).)
133-5 CHAPTER 36. RATES
133-6 SUBCHAPTER A. GENERAL PROVISIONS
133-7 Sec. 36.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES
133-8 Sec. 36.002. COMPLIANCE WITH TITLE
133-9 Sec. 36.003. JUST AND REASONABLE RATES
133-10 Sec. 36.004. EQUALITY OF RATES AND SERVICES
133-11 Sec. 36.005. RATES FOR AREA NOT IN MUNICIPALITY
133-12 Sec. 36.006. BURDEN OF PROOF
133-13 Sec. 36.007. DISCOUNTED WHOLESALE OR RETAIL RATES
133-14 Sec. 36.008. STATE TRANSMISSION SYSTEM
133-15 (Sections 36.009-36.050 reserved for expansion)
133-16 SUBCHAPTER B. COMPUTATION OF RATES
133-17 Sec. 36.051. ESTABLISHING OVERALL REVENUES
133-18 Sec. 36.052. ESTABLISHING REASONABLE RETURN
133-19 Sec. 36.053. COMPONENTS OF INVESTED CAPITAL
133-20 Sec. 36.054. CONSTRUCTION WORK IN PROGRESS
133-21 Sec. 36.055. SEPARATIONS AND ALLOCATIONS
133-22 Sec. 36.056. DEPRECIATION, AMORTIZATION, AND DEPLETION
133-23 Sec. 36.057. NET INCOME; DETERMINATION OF REVENUES
133-24 AND EXPENSES
133-25 Sec. 36.058. CONSIDERATION OF PAYMENT TO AFFILIATE
133-26 Sec. 36.059. TREATMENT OF CERTAIN TAX BENEFITS
133-27 Sec. 36.060. CONSOLIDATED INCOME TAX RETURNS
134-1 Sec. 36.061. ALLOWANCE OF CERTAIN EXPENSES
134-2 Sec. 36.062. CONSIDERATION OF CERTAIN EXPENSES
134-3 Sec. 36.063. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
134-4 LEASE OF MERCHANDISE
134-5 Sec. 36.064. SELF-INSURANCE
134-6 (Sections 36.065-36.100 reserved for expansion)
134-7 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE CHANGES
134-8 PROPOSED BY UTILITY
134-9 Sec. 36.101. DEFINITION
134-10 Sec. 36.102. STATEMENT OF INTENT TO CHANGE RATES
134-11 Sec. 36.103. NOTICE OF INTENT TO CHANGE RATES
134-12 Sec. 36.104. EARLY EFFECTIVE DATE OF RATE CHANGE
134-13 Sec. 36.105. DETERMINATION OF PROPRIETY OF RATE
134-14 CHANGE; HEARING
134-15 Sec. 36.106. REGIONAL HEARING
134-16 Sec. 36.107. PREFERENCE TO HEARING
134-17 Sec. 36.108. RATE SUSPENSION; DEADLINE
134-18 Sec. 36.109. TEMPORARY RATES
134-19 Sec. 36.110. BONDED RATES
134-20 Sec. 36.111. ESTABLISHMENT OF FINAL RATES
134-21 (Sections 36.112-36.150 reserved for expansion)
134-22 SUBCHAPTER D. RATE CHANGES PROPOSED BY REGULATORY AUTHORITY
134-23 Sec. 36.151. UNREASONABLE OR VIOLATIVE EXISTING RATES
134-24 Sec. 36.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
134-25 ANOTHER SOURCE
134-26 Sec. 36.153. RATE-FILING PACKAGE
134-27 Sec. 36.154. DEADLINE
135-1 Sec. 36.155. INTERIM ORDER ESTABLISHING TEMPORARY RATES
135-2 Sec. 36.156. AUTOMATIC TEMPORARY RATES
135-3 (Sections 36.157-36.200 reserved for expansion)
135-4 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENT
135-5 Sec. 36.201. AUTOMATIC ADJUSTMENT FOR CHANGES IN COSTS
135-6 Sec. 36.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY
135-7 Sec. 36.203. FUEL COST RECOVERY; ADJUSTMENT OF FUEL
135-8 FACTOR
135-9 Sec. 36.204. COST RECOVERY AND INCENTIVES
135-10 Sec. 36.205. PURCHASED POWER COST RECOVERY
135-11 Sec. 36.206. MARK-UPS
135-12 Sec. 36.207. USE OF MARK-UPS
135-13 Sec. 36.208. PAYMENT TO QUALIFYING FACILITY
135-14 (Sections 36.209-36.250 reserved for expansion)
135-15 SUBCHAPTER F. PARTIAL RATE DEREGULATION AVAILABLE
135-16 TO CERTAIN COOPERATIVES
135-17 Sec. 36.251. ELECTRIC COOPERATIVE EXEMPTION
135-18 Sec. 36.252. ELECTION ON EXEMPTION
135-19 Sec. 36.253. EFFECT OF ELECTION
135-20 Sec. 36.254. APPLICATION OF OTHER PROVISIONS
135-21 Sec. 36.255. SUBSEQUENT ELECTION; REVOCATION
135-22 (Sections 36.256-36.300 reserved for expansion)
135-23 SUBCHAPTER G. RATE CHANGES BY CERTAIN
135-24 ELECTRIC COOPERATIVES
135-25 Sec. 36.301. APPLICATION OF SUBCHAPTER
135-26 Sec. 36.302. METHODS OF CHANGING RATES
135-27 Sec. 36.303. CONTENTS OF NOTICE
136-1 Sec. 36.304. ACCESS TO WRITTEN OPPOSITION
136-2 Sec. 36.305. TARIFFS; EFFECTIVE DATE OF RATE CHANGES
136-3 Sec. 36.306. DISCOUNTED RATES
136-4 Sec. 36.307. COMMISSION REVIEW
136-5 Sec. 36.308. REVIEW REQUESTED BY COOPERATIVE MEMBER OR
136-6 COMMISSION
136-7 Sec. 36.309. REVIEW REQUESTED BY AFFECTED ELECTRIC UTILITY
136-8 (Sections 36.310-36.350 reserved for expansion)
136-9 SUBCHAPTER H. RATES FOR GOVERNMENTAL ENTITIES
136-10 Sec. 36.351. DISCOUNTED RATES FOR CERTAIN INSTITUTIONS OF
136-11 HIGHER EDUCATION
136-12 Sec. 36.352. SPECIAL RATE CLASS
136-13 Sec. 36.353. PAYMENT IN LIEU OF TAX
136-14 CHAPTER 36. RATES
136-15 SUBCHAPTER A. GENERAL PROVISIONS
136-16 Sec. 36.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES.
136-17 (a) The regulatory authority may establish and regulate rates of
136-18 an electric utility and may adopt rules for determining:
136-19 (1) the classification of customers and services; and
136-20 (2) the applicability of rates.
136-21 (b) A rule or order of the regulatory authority may not
136-22 conflict with a ruling of a federal regulatory body. (V.A.C.S.
136-23 Art. 1446c-0, Sec. 2.201.)
136-24 Sec. 36.002. COMPLIANCE WITH TITLE. An electric utility may
136-25 not charge or receive a rate for utility service except as provided
136-26 by this title. (V.A.C.S. Art. 1446c-0, Sec. 2.153 (part).)
136-27 Sec. 36.003. JUST AND REASONABLE RATES. (a) The regulatory
137-1 authority shall ensure that each rate an electric utility or two or
137-2 more electric utilities jointly make, demand, or receive is just
137-3 and reasonable.
137-4 (b) A rate may not be unreasonably preferential,
137-5 prejudicial, or discriminatory but must be sufficient, equitable,
137-6 and consistent in application to each class of consumer.
137-7 (c) An electric utility may not:
137-8 (1) grant an unreasonable preference or advantage
137-9 concerning rates to a person in a classification;
137-10 (2) subject a person in a classification to an
137-11 unreasonable prejudice or disadvantage concerning rates; or
137-12 (3) establish or maintain an unreasonable difference
137-13 concerning rates between localities or between classes of service.
137-14 (d) In establishing an electric utility's rates, the
137-15 commission may treat as a single class two or more municipalities
137-16 that an electric utility serves if the commission considers that
137-17 treatment to be appropriate.
137-18 (e) A charge to an individual customer for retail or
137-19 wholesale electric service that is less than the rate approved by
137-20 the regulatory authority does not constitute an impermissible
137-21 difference, preference, or advantage. (V.A.C.S. Art. 1446c-0,
137-22 Secs. 2.202, 2.214 (part).)
137-23 Sec. 36.004. EQUALITY OF RATES AND SERVICES. (a) An
137-24 electric utility may not directly or indirectly charge, demand, or
137-25 receive from a person a greater or lesser compensation for a
137-26 service provided or to be provided by the utility than the
137-27 compensation prescribed by the applicable tariff filed under
138-1 Section 32.101.
138-2 (b) A person may not knowingly receive or accept a service
138-3 from an electric utility for a compensation greater or less than
138-4 the compensation prescribed by the tariff.
138-5 (c) Notwithstanding Subsections (a) and (b), an electric
138-6 utility may charge an individual customer for wholesale or retail
138-7 electric service in accordance with Section 36.007.
138-8 (d) This title does not prevent a cooperative corporation
138-9 from returning to its members net earnings resulting from its
138-10 operations in proportion to the members' purchases from or through
138-11 the corporation. (V.A.C.S. Art. 1446c-0, Secs. 2.215(a), (b).)
138-12 Sec. 36.005. RATES FOR AREA NOT IN MUNICIPALITY. Without
138-13 the approval of the commission, an electric utility's rates for an
138-14 area not in a municipality may not exceed 115 percent of the
138-15 average of all rates for similar services for all municipalities
138-16 served by the same utility in the same county as that area.
138-17 (V.A.C.S. Art. 1446c-0, Sec. 2.213.)
138-18 Sec. 36.006. BURDEN OF PROOF. In a proceeding involving a
138-19 proposed rate change, the electric utility has the burden of
138-20 proving that:
138-21 (1) the rate change is just and reasonable, if the
138-22 utility proposes the change; or
138-23 (2) an existing rate is just and reasonable, if the
138-24 proposal is to reduce the rate. (V.A.C.S. Art. 1446c-0, Sec.
138-25 2.204.)
138-26 Sec. 36.007. DISCOUNTED WHOLESALE OR RETAIL RATES. (a) On
138-27 application by an electric utility, a regulatory authority may
139-1 approve wholesale or retail tariffs or contracts containing charges
139-2 that are less than rates approved by the regulatory authority but
139-3 not less than the utility's marginal cost. The charges must be in
139-4 accordance with the principles of this title and may not be
139-5 unreasonably preferential, prejudicial, discriminatory, predatory,
139-6 or anticompetitive.
139-7 (b) The method for computing the marginal cost of the
139-8 electric utility consists of energy and capacity components. The
139-9 energy component includes variable operation and maintenance
139-10 expense and marginal fuel or the energy component of purchased
139-11 power. The capacity component is based on the annual economic
139-12 value of deferring, accelerating, or avoiding the next increment of
139-13 needed capacity, without regard to whether the capacity is
139-14 purchased or built.
139-15 (c) The commission shall ensure that the method for
139-16 determining marginal cost is consistently applied among utilities
139-17 but may recognize the individual load and resource requirements of
139-18 the electric utility.
139-19 (d) Notwithstanding any other provision of this title, the
139-20 commission shall ensure that the electric utility's allocable costs
139-21 of serving customers paying discounted rates under this section are
139-22 not borne by the utility's other customers. (V.A.C.S.
139-23 Art. 1446c-0, Secs. 2.001(b), (c), (d) (part), 2.052(b), (c).)
139-24 Sec. 36.008. STATE TRANSMISSION SYSTEM. In establishing
139-25 rates for an electric utility not required to file an integrated
139-26 resource plan, the commission may review the state's transmission
139-27 system and make recommendations to the utility on the need to build
140-1 new power lines, upgrade power lines, and make other necessary
140-2 improvements and additions. (V.A.C.S. Art. 1446c-0, Sec. 2.051(w)
140-3 (part).)
140-4 (Sections 36.009-36.050 reserved for expansion)
140-5 SUBCHAPTER B. COMPUTATION OF RATES
140-6 Sec. 36.051. ESTABLISHING OVERALL REVENUES. In establishing
140-7 an electric utility's rates, the regulatory authority shall
140-8 establish the utility's overall revenues at an amount that will
140-9 permit the utility a reasonable opportunity to earn a reasonable
140-10 return on the utility's invested capital used and useful in
140-11 providing service to the public in excess of the utility's
140-12 reasonable and necessary operating expenses. (V.A.C.S.
140-13 Art. 1446c-0, Sec. 2.203(a).)
140-14 Sec. 36.052. ESTABLISHING REASONABLE RETURN. In
140-15 establishing a reasonable return on invested capital, the
140-16 regulatory authority shall consider applicable factors, including:
140-17 (1) the efforts of the electric utility to comply with
140-18 its most recently approved integrated resource plan;
140-19 (2) the efforts and achievements of the utility in
140-20 conserving resources;
140-21 (3) the quality of the utility's services;
140-22 (4) the efficiency of the utility's operations; and
140-23 (5) the quality of the utility's management.
140-24 (V.A.C.S. Art. 1446c-0, Sec. 2.203(b).)
140-25 Sec. 36.053. COMPONENTS OF INVESTED CAPITAL. (a) Electric
140-26 utility rates shall be based on the original cost, less
140-27 depreciation, of property used by and useful to the utility in
141-1 providing service.
141-2 (b) The original cost of property shall be determined at the
141-3 time the property is dedicated to public use, whether by the
141-4 utility that is the present owner or by a predecessor.
141-5 (c) In this section, the term "original cost" means the
141-6 actual money cost or the actual money value of consideration paid
141-7 other than money. (V.A.C.S. Art. 1446c-0, Secs. 2.206(a) (part),
141-8 (c).)
141-9 Sec. 36.054. CONSTRUCTION WORK IN PROGRESS. (a)
141-10 Construction work in progress, at cost as recorded on the electric
141-11 utility's books, may be included in the utility's rate base. The
141-12 inclusion of construction work in progress is an exceptional form
141-13 of rate relief that the regulatory authority may grant only if the
141-14 utility demonstrates that inclusion is necessary to the utility's
141-15 financial integrity.
141-16 (b) Construction work in progress may not be included in the
141-17 rate base for a major project under construction to the extent that
141-18 the project has been inefficiently or imprudently planned or
141-19 managed. (V.A.C.S. Art. 1446c-0, Secs. 2.206(a) (part), (b).)
141-20 Sec. 36.055. SEPARATIONS AND ALLOCATIONS. Costs of
141-21 facilities, revenues, expenses, taxes, and reserves shall be
141-22 separated or allocated as prescribed by the regulatory authority.
141-23 (V.A.C.S. Art. 1446c-0, Sec. 2.207.)
141-24 Sec. 36.056. DEPRECIATION, AMORTIZATION, AND DEPLETION. (a)
141-25 The commission shall establish proper and adequate rates and
141-26 methods of depreciation, amortization, or depletion for each class
141-27 of property of an electric or municipally owned utility.
142-1 (b) The rates and methods established under this section and
142-2 the depreciation account required by Section 32.102 shall be used
142-3 uniformly and consistently throughout rate-setting and appeal
142-4 proceedings. (V.A.C.S. Art. 1446c-0, Secs. 2.151(a) (part), (d).)
142-5 Sec. 36.057. NET INCOME; DETERMINATION OF REVENUES AND
142-6 EXPENSES. (a) An electric utility's net income is the total
142-7 revenues of the utility less all reasonable and necessary expenses
142-8 as determined by the regulatory authority.
142-9 (b) The regulatory authority shall determine revenues and
142-10 expenses in a manner consistent with this subchapter.
142-11 (c) The regulatory authority may adopt reasonable rules with
142-12 respect to whether an expense is allowed for ratemaking purposes.
142-13 (V.A.C.S. Art. 1446c-0, Secs. 2.208(a), (e).)
142-14 Sec. 36.058. CONSIDERATION OF PAYMENT TO AFFILIATE. (a)
142-15 Except as provided by Subsection (b), the regulatory authority may
142-16 not allow as capital cost or as expense a payment to an affiliate
142-17 for:
142-18 (1) the cost of a service, property, right, or other
142-19 item; or
142-20 (2) interest expense.
142-21 (b) The regulatory authority may allow a payment described
142-22 by Subsection (a) only to the extent that the regulatory authority
142-23 finds the payment is reasonable and necessary for each item or
142-24 class of items as determined by the commission.
142-25 (c) A finding under Subsection (b) must include:
142-26 (1) a specific finding of the reasonableness and
142-27 necessity of each item or class of items allowed; and
143-1 (2) a finding that the price to the electric utility
143-2 is not higher than the prices charged by the supplying affiliate to
143-3 its other affiliates or divisions or to a nonaffiliated person for
143-4 the same item or class of items.
143-5 (d) In making a finding regarding an affiliate transaction,
143-6 including an affiliate transaction subject to Chapter 34, the
143-7 regulatory authority shall:
143-8 (1) determine the extent to which the conditions and
143-9 circumstances of that transaction are reasonably comparable
143-10 relative to quantity, terms, date of contract, and place of
143-11 delivery; and
143-12 (2) allow for appropriate differences based on that
143-13 determination.
143-14 (e) This section does not require a finding to be made
143-15 before payments made by an electric utility to an affiliate are
143-16 included in the utility's charges to consumers if there is a
143-17 mechanism for making the charges subject to refund pending the
143-18 making of the finding. (V.A.C.S. Art. 1446c-0, Sec. 2.208(b).)
143-19 Sec. 36.059. TREATMENT OF CERTAIN TAX BENEFITS. (a) In
143-20 determining the allocation of tax savings derived from liberalized
143-21 depreciation and amortization, the investment tax credit, and the
143-22 application of similar methods, the regulatory authority shall:
143-23 (1) balance equitably the interests of present and
143-24 future customers; and
143-25 (2) apportion accordingly the benefits between
143-26 consumers and the electric or municipally owned utility.
143-27 (b) If an electric utility or a municipally owned utility
144-1 retains a portion of the investment tax credit, that portion shall
144-2 be deducted from the original cost of the facilities or other
144-3 addition to the rate base to which the credit applied to the extent
144-4 allowed by the Internal Revenue Code. (V.A.C.S. Art. 1446c-0,
144-5 Secs. 2.151(c), (d).)
144-6 Sec. 36.060. CONSOLIDATED INCOME TAX RETURNS. (a) Unless
144-7 it is shown to the satisfaction of the regulatory authority that it
144-8 was reasonable to choose not to consolidate returns, an electric
144-9 utility's income taxes shall be computed as though a consolidated
144-10 return had been filed and the utility had realized its fair share
144-11 of the savings resulting from that return, if:
144-12 (1) the utility is a member of an affiliated group
144-13 eligible to file a consolidated income tax return; and
144-14 (2) it is advantageous to the utility to do so.
144-15 (b) The amount of income tax that a consolidated group of
144-16 which an electric utility is a member saves, because the
144-17 consolidated return eliminates the intercompany profit on purchases
144-18 by the utility from an affiliate, shall be applied to reduce the
144-19 cost of the property or service purchased from the affiliate.
144-20 (c) The investment tax credit allowed against federal income
144-21 taxes, to the extent retained by the electric utility, shall be
144-22 applied as a reduction in the rate-based contribution of the assets
144-23 to which the credit applies, to the extent and at the rate allowed
144-24 by the Internal Revenue Code. (V.A.C.S. Art. 1446c-0, Sec.
144-25 2.208(c).)
144-26 Sec. 36.061. ALLOWANCE OF CERTAIN EXPENSES. (a) The
144-27 regulatory authority may not allow as a cost or expense for
145-1 ratemaking purposes:
145-2 (1) an expenditure for legislative advocacy; or
145-3 (2) an expenditure described by Section 32.104 that
145-4 the regulatory authority determines to be not in the public
145-5 interest.
145-6 (b) The regulatory authority may allow as a cost or expense:
145-7 (1) reasonable charitable or civic contributions not
145-8 to exceed the amount approved by the regulatory authority; and
145-9 (2) reasonable costs of participating in a proceeding
145-10 under this title not to exceed the amount approved by the
145-11 regulatory authority. (V.A.C.S. Art. 1446c-0, Secs. 2.152(b),
145-12 (c), (d), (e).)
145-13 Sec. 36.062. CONSIDERATION OF CERTAIN EXPENSES. The
145-14 regulatory authority may not consider for ratemaking purposes:
145-15 (1) an expenditure for legislative advocacy, made
145-16 directly or indirectly, including legislative advocacy expenses
145-17 included in trade association dues;
145-18 (2) a payment made to cover costs of an accident,
145-19 equipment failure, or negligence at a utility facility owned by a
145-20 person or governmental entity not selling power in this state,
145-21 other than a payment made under an insurance or risk-sharing
145-22 arrangement executed before the date of loss;
145-23 (3) an expenditure for costs of processing a refund or
145-24 credit under Section 36.110; or
145-25 (4) any other expenditure, including an executive
145-26 salary, advertising expense, legal expense, or civil penalty or
145-27 fine, the regulatory authority finds to be unreasonable,
146-1 unnecessary, or not in the public interest. (V.A.C.S.
146-2 Art. 1446c-0, Sec. 2.208(d).)
146-3 Sec. 36.063. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
146-4 LEASE OF MERCHANDISE. In establishing an electric or municipally
146-5 owned utility's rates, the regulatory authority may not consider
146-6 any profit or loss that results from the sale or lease of
146-7 merchandise, including appliances, fixtures, or equipment, to the
146-8 extent that merchandise is not integral to providing utility
146-9 service. (V.A.C.S. Art. 1446c-0, Secs. 2.151(b) (part), (d).)
146-10 Sec. 36.064. SELF-INSURANCE. (a) An electric utility may
146-11 self-insure all or part of the utility's potential liability or
146-12 catastrophic property loss, including windstorm, fire, and
146-13 explosion losses, that could not have been reasonably anticipated
146-14 and included under operating and maintenance expenses.
146-15 (b) The commission shall approve a self-insurance plan under
146-16 this section if the commission finds that:
146-17 (1) the coverage is in the public interest;
146-18 (2) the plan, considering all costs, is a lower cost
146-19 alternative to purchasing commercial insurance; and
146-20 (3) ratepayers will receive the benefits of the
146-21 savings.
146-22 (c) In computing an electric utility's reasonable and
146-23 necessary expenses under this subchapter, the regulatory authority,
146-24 to the extent the regulatory authority finds is in the public
146-25 interest, shall allow as a necessary expense the money credited to
146-26 a reserve account for self-insurance. The regulatory authority
146-27 shall determine reasonableness under this subsection:
147-1 (1) from information provided at the time the
147-2 self-insurance plan and reserve account are established; and
147-3 (2) on the filing of a rate case by an electric
147-4 utility that has a reserve account.
147-5 (d) After a reserve account for self-insurance is
147-6 established, the regulatory authority shall:
147-7 (1) determine whether the reserve account has a
147-8 surplus or shortage under Subsection (e); and
147-9 (2) subtract any surplus from or add any shortage to
147-10 the utility's rate base.
147-11 (e) A surplus in the reserve account exists if the charges
147-12 against the account are less than the money credited to the
147-13 account. A shortage in the reserve account exists if the charges
147-14 against the account are greater than the money credited to the
147-15 account.
147-16 (f) The allowance for self-insurance under this title for
147-17 ratemaking purposes is not applicable to nuclear plant investment.
147-18 (g) The commission shall adopt rules governing
147-19 self-insurance under this section. (V.A.C.S. Art. 1446c-0, Sec.
147-20 2.210.)
147-21 (Sections 36.065-36.100 reserved for expansion)
147-22 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE CHANGES
147-23 PROPOSED BY UTILITY
147-24 Sec. 36.101. DEFINITION. In this subchapter, "major change"
147-25 means an increase in rates that would increase the aggregate
147-26 revenues of the applicant more than the greater of $100,000 or
147-27 2-1/2 percent. The term does not include an increase in rates that
148-1 the regulatory authority allows to go into effect or the electric
148-2 utility makes under an order of the regulatory authority after
148-3 hearings held with public notice. (V.A.C.S. Art. 1446c-0, Sec.
148-4 2.212(b) (part).)
148-5 Sec. 36.102. STATEMENT OF INTENT TO CHANGE RATES. (a)
148-6 Except as provided by Section 33.024, an electric utility may not
148-7 change its rates unless the utility files a statement of its intent
148-8 with the regulatory authority that has original jurisdiction over
148-9 those rates at least 35 days before the effective date of the
148-10 proposed change.
148-11 (b) The electric utility shall also mail or deliver a copy
148-12 of the statement of intent to the appropriate officer of each
148-13 affected municipality.
148-14 (c) The statement of intent must include:
148-15 (1) proposed revisions of tariffs; and
148-16 (2) a detailed statement of:
148-17 (A) each proposed change;
148-18 (B) the effect the proposed change is expected
148-19 to have on the revenues of the utility;
148-20 (C) each class and number of utility consumers
148-21 affected; and
148-22 (D) any other information required by the
148-23 regulatory authority's rules. (V.A.C.S. Art. 1446c-0, Sec.
148-24 2.212(a) (part).)
148-25 Sec. 36.103. NOTICE OF INTENT TO CHANGE RATES. (a) The
148-26 electric utility shall:
148-27 (1) publish, in conspicuous form and place, notice to
149-1 the public of the proposed change once each week for four
149-2 successive weeks before the effective date of the proposed change
149-3 in a newspaper having general circulation in each county containing
149-4 territory affected by the proposed change; and
149-5 (2) mail notice of the proposed change to any other
149-6 affected person as required by the regulatory authority's rules.
149-7 (b) The regulatory authority may waive the publication of
149-8 notice requirement prescribed by Subsection (a) in a proceeding
149-9 that involves only a rate reduction for each affected ratepayer.
149-10 The applicant shall give notice of the proposed rate change by mail
149-11 to each affected utility customer.
149-12 (c) The regulatory authority by rule shall define other
149-13 proceedings for which the publication of notice requirement
149-14 prescribed by Subsection (a) may be waived on a showing of good
149-15 cause. A waiver may not be granted in a proceeding involving a
149-16 rate increase to any class or category of ratepayer. (V.A.C.S.
149-17 Art. 1446c-0, Sec. 2.212(a) (part).)
149-18 Sec. 36.104. EARLY EFFECTIVE DATE OF RATE CHANGE. (a) For
149-19 good cause shown, the regulatory authority may allow a rate change,
149-20 other than a major change, to take effect:
149-21 (1) before the end of the 35-day period prescribed by
149-22 Section 36.102; and
149-23 (2) under conditions the regulatory authority
149-24 prescribes, subject to suspension as provided by this subchapter.
149-25 (b) The electric utility shall immediately revise its
149-26 tariffs to include the change. (V.A.C.S. Art. 1446c-0, Sec.
149-27 2.212(b) (part).)
150-1 Sec. 36.105. DETERMINATION OF PROPRIETY OF RATE CHANGE;
150-2 HEARING. (a) If a tariff changing rates is filed with a
150-3 regulatory authority, the regulatory authority shall, on complaint
150-4 by an affected person, or may, on its own motion, not later than
150-5 the 30th day after the effective date of the change, enter on a
150-6 hearing to determine the propriety of the change.
150-7 (b) The regulatory authority shall hold a hearing in every
150-8 case in which the change constitutes a major change. The
150-9 regulatory authority may, however, use an informal proceeding if
150-10 the regulatory authority does not receive a complaint before the
150-11 46th day after the date notice of the change is filed.
150-12 (c) The regulatory authority shall give reasonable notice of
150-13 the hearing, including notice to the governing body of each
150-14 affected municipality and county. The electric utility is not
150-15 required to provide a formal answer or file any other formal
150-16 pleading in response to the notice, and the absence of an answer
150-17 does not affect an order for a hearing. (V.A.C.S. Art. 1446c-0,
150-18 Sec. 2.212(c) (part).)
150-19 Sec. 36.106. REGIONAL HEARING. The commission shall hold a
150-20 regional hearing at an appropriate location in a case in which the
150-21 commission determines it is in the public interest to hear
150-22 testimony at a regional hearing for inclusion in the record.
150-23 (V.A.C.S. Art. 1446c-0, Sec. 2.212(c) (part).)
150-24 Sec. 36.107. PREFERENCE TO HEARING. The regulatory
150-25 authority shall:
150-26 (1) give preference to a hearing under this subchapter
150-27 and to deciding questions arising under this subchapter and
151-1 Subchapter E over any other question pending before it; and
151-2 (2) decide the questions as quickly as possible.
151-3 (V.A.C.S. Art. 1446c-0, Sec. 2.212(d) (part).)
151-4 Sec. 36.108. RATE SUSPENSION; DEADLINE. (a) Pending the
151-5 hearing and a decision:
151-6 (1) the local regulatory authority, after delivering
151-7 to the electric utility a written statement of the regulatory
151-8 authority's reasons, may suspend the rate change for not longer
151-9 than 90 days after the date the rate change would otherwise be
151-10 effective; and
151-11 (2) the commission may suspend the rate change for not
151-12 longer than 150 days after the date the rate change would otherwise
151-13 be effective.
151-14 (b) The 150-day period prescribed by Subsection (a)(2) shall
151-15 be extended two days for each day the actual hearing on the merits
151-16 of the case exceeds 15 days.
151-17 (c) If the regulatory authority does not make a final
151-18 determination concerning a rate change before expiration of the
151-19 applicable suspension period, the regulatory authority is
151-20 considered to have approved the change. This approval is subject
151-21 to the authority of the regulatory authority thereafter to continue
151-22 a hearing in progress. (V.A.C.S. Art. 1446c-0, Sec. 2.212(d)
151-23 (part).)
151-24 Sec. 36.109. TEMPORARY RATES. (a) The regulatory authority
151-25 may establish temporary rates to be in effect during the applicable
151-26 suspension period under Section 36.108.
151-27 (b) If the regulatory authority does not establish temporary
152-1 rates, the rates in effect when the suspended tariff was filed
152-2 continue in effect during the suspension period. (V.A.C.S.
152-3 Art. 1446c-0, Sec. 2.212(d) (part).)
152-4 Sec. 36.110. BONDED RATES. (a) An electric utility may put
152-5 a changed rate into effect throughout the area in which the utility
152-6 sought to change its rates, including an area over which the
152-7 commission is exercising appellate or original jurisdiction, by
152-8 filing a bond with the commission if:
152-9 (1) the 150-day suspension period has been extended
152-10 under Section 36.108(b); and
152-11 (2) the commission fails to make a final determination
152-12 before the 151st day after the date the rate change would otherwise
152-13 be effective.
152-14 (b) The bonded rate may not exceed the proposed rate.
152-15 (c) The bond must be:
152-16 (1) payable to the commission in an amount, in a form,
152-17 and with a surety approved by the commission; and
152-18 (2) conditioned on refund.
152-19 (d) The electric utility shall refund or credit against
152-20 future bills:
152-21 (1) money collected under the bonded rates in excess
152-22 of the rate finally ordered; and
152-23 (2) interest on that money, at the current interest
152-24 rate as determined by the commission. (V.A.C.S. Art. 1446c-0, Sec.
152-25 2.212(e).)
152-26 Sec. 36.111. ESTABLISHMENT OF FINAL RATES. (a) If, after
152-27 hearing, the regulatory authority finds the rates are unreasonable
153-1 or in violation of law, the regulatory authority shall:
153-2 (1) enter an order establishing the rates the electric
153-3 utility shall charge or apply for the service in question; and
153-4 (2) serve a copy of the order on the electric utility.
153-5 (b) The rates established in the order shall be observed
153-6 thereafter until changed as provided by this title. (V.A.C.S.
153-7 Art. 1446c-0, Sec. 2.212(f).)
153-8 (Sections 36.112-36.150 reserved for expansion)
153-9 SUBCHAPTER D. RATE CHANGES PROPOSED BY REGULATORY AUTHORITY
153-10 Sec. 36.151. UNREASONABLE OR VIOLATIVE EXISTING RATES. (a)
153-11 If the regulatory authority, on its own motion or on complaint by
153-12 an affected person, after reasonable notice and hearing, finds that
153-13 the existing rates of an electric utility for a service are
153-14 unreasonable or in violation of law, the regulatory authority
153-15 shall:
153-16 (1) enter an order establishing the just and
153-17 reasonable rates to be observed thereafter, including maximum or
153-18 minimum rates; and
153-19 (2) serve a copy of the order on the electric utility.
153-20 (b) The rates established under Subsection (a) constitute
153-21 the legal rates of the electric utility until changed as provided
153-22 by this title. (V.A.C.S. Art. 1446c-0, Sec. 2.211(a).)
153-23 Sec. 36.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
153-24 ANOTHER SOURCE. If an electric utility does not produce or
153-25 generate the service that it distributes, transmits, or furnishes
153-26 to the public for compensation but obtains the service from another
153-27 source, the regulatory authority may investigate the cost of that
154-1 production or generation in an investigation of the reasonableness
154-2 of the electric utility's rates. (V.A.C.S. Art. 1446c-0, Sec.
154-3 2.211(b).)
154-4 Sec. 36.153. RATE-FILING PACKAGE. (a) An electric utility
154-5 shall file a rate-filing package with the regulatory authority not
154-6 later than the 120th day after the date the authority notifies the
154-7 utility that the authority will proceed with an inquiry under
154-8 Section 36.151.
154-9 (b) The regulatory authority may grant an extension of the
154-10 120-day period prescribed by Subsection (a) or waive the
154-11 rate-filing package requirement on agreement of the parties.
154-12 (V.A.C.S. Art. 1446c-0, Sec. 2.211(c) (part).)
154-13 Sec. 36.154. DEADLINE. (a) The regulatory authority shall
154-14 make a final determination not later than the 185th day after the
154-15 date the electric utility files the rate-filing package required by
154-16 Section 36.153.
154-17 (b) The deadline prescribed by Subsection (a) is extended
154-18 two days for each day the actual hearing on the merits of the case
154-19 exceeds 15 days. (V.A.C.S. Art. 1446c-0, Sec. 2.211(c) (part).)
154-20 Sec. 36.155. INTERIM ORDER ESTABLISHING TEMPORARY RATES.
154-21 (a) At any time after an initial complaint is filed under Section
154-22 36.151, the regulatory authority may issue an interim order
154-23 establishing temporary rates for the electric utility to be in
154-24 effect until a final determination is made.
154-25 (b) On issuance of a final order, the regulatory authority:
154-26 (1) may require the electric utility to refund to
154-27 customers or to credit against future bills:
155-1 (A) money collected under the temporary rates in
155-2 excess of the rate finally ordered; and
155-3 (B) interest on that money, at the current
155-4 interest rate as determined by the commission; or
155-5 (2) shall authorize the electric utility to surcharge
155-6 bills to recover:
155-7 (A) the amount by which the money collected
155-8 under the temporary rates is less than the money that would have
155-9 been collected under the rate finally ordered; and
155-10 (B) interest on that amount, at the current
155-11 interest rate as determined by the commission. (V.A.C.S.
155-12 Art. 1446c-0, Sec. 2.211(d).)
155-13 Sec. 36.156. AUTOMATIC TEMPORARY RATES. (a) The rates
155-14 charged by the electric utility on the 185th day after the date the
155-15 utility files the rate-filing package required by Section 36.153
155-16 automatically become temporary rates if:
155-17 (1) the 185-day period has been extended under Section
155-18 36.154(b); and
155-19 (2) the regulatory authority has not issued a final
155-20 order or established temporary rates for the electric utility on or
155-21 before the 185th day.
155-22 (b) On issuance of a final order, the regulatory authority:
155-23 (1) shall require the electric utility to refund to
155-24 customers or to credit against future bills:
155-25 (A) money collected under the temporary rates in
155-26 excess of the rate finally ordered; and
155-27 (B) interest on that money, at the current
156-1 interest rate as determined by the commission; or
156-2 (2) shall authorize the electric utility to surcharge
156-3 bills to recover:
156-4 (A) the amount by which the money collected
156-5 under the temporary rates is less than the money that would have
156-6 been collected under the rate finally ordered; and
156-7 (B) interest on that amount, at the current
156-8 interest rate as determined by the commission. (V.A.C.S.
156-9 Art. 1446c-0, Sec. 2.211(e).)
156-10 (Sections 36.157-36.200 reserved for expansion)
156-11 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENT
156-12 Sec. 36.201. AUTOMATIC ADJUSTMENT FOR CHANGES IN COSTS.
156-13 Except as permitted by Chapter 34 or Section 36.204, the commission
156-14 may not establish a rate or tariff that authorizes an electric
156-15 utility to automatically adjust and pass through to the utility's
156-16 customers a change in the utility's fuel or other costs. (V.A.C.S.
156-17 Art. 1446c-0, Sec. 2.212(g)(1).)
156-18 Sec. 36.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY. (a)
156-19 The commission, on its own motion or on the petition of an electric
156-20 utility, shall provide for the adjustment of the utility's billing
156-21 to reflect an increase or decrease in the utility's tax liability
156-22 to this state if the increase or decrease:
156-23 (1) results from Chapter 5, Acts of the 72nd
156-24 Legislature, 1st Called Session, 1991; and
156-25 (2) is attributable to an activity subject to the
156-26 commission's jurisdiction.
156-27 (b) The commission shall apportion pro rata to each type and
157-1 class of service provided by the utility any billing adjustment
157-2 under this section. The adjustment:
157-3 (1) shall be made effective at the same time as the
157-4 increase or decrease of tax liability described by Subsection
157-5 (a)(1) or as soon after that increase or decrease as is reasonably
157-6 practical; and
157-7 (2) remains effective only until the commission alters
157-8 the adjustment as provided by this section or enters an order for
157-9 the utility under Subchapter C or D.
157-10 (c) Each year after an original adjustment, the commission
157-11 shall:
157-12 (1) review the utility's increase or decrease of tax
157-13 liability described by Subsection (a)(1); and
157-14 (2) alter the adjustment as necessary to reflect the
157-15 increase or decrease.
157-16 (d) A proceeding under this section is not a rate case under
157-17 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 2.212(h).)
157-18 Sec. 36.203. FUEL COST RECOVERY; ADJUSTMENT OF FUEL FACTOR.
157-19 (a) Section 36.201 does not prohibit the commission from reviewing
157-20 and providing for adjustments of a utility's fuel factor.
157-21 (b) The commission by rule shall implement procedures that
157-22 provide for the timely adjustment of a utility's fuel factor, with
157-23 or without a hearing. The procedures must require that:
157-24 (1) the findings required by Section 36.058 regarding
157-25 fuel transactions with affiliated interests are made in a fuel
157-26 reconciliation proceeding or in a rate case filed under Subchapter
157-27 C or D; and
158-1 (2) an affected party receive notice and have the
158-2 opportunity to request a hearing before the commission.
158-3 (c) The commission may adjust a utility's fuel factor
158-4 without a hearing if the commission determines that a hearing is
158-5 not necessary. If the commission holds a hearing, the commission
158-6 may consider at the hearing any evidence that is appropriate and in
158-7 the public interest.
158-8 (d) The commission shall render a timely decision approving,
158-9 disapproving, or modifying the adjustment to the utility's fuel
158-10 factor.
158-11 (e) The commission by rule shall provide for the
158-12 reconciliation of a utility's fuel costs on a timely basis.
158-13 (f) A proceeding under this section is not a rate case under
158-14 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 2.212(g)(2).)
158-15 Sec. 36.204. COST RECOVERY AND INCENTIVES. In establishing
158-16 rates for an electric utility not required to file an integrated
158-17 resource plan, the commission may:
158-18 (1) allow timely recovery of the reasonable costs of
158-19 conservation, load management, and purchased power, notwithstanding
158-20 Section 36.201; and
158-21 (2) authorize additional incentives for conservation,
158-22 load management, purchased power, and renewable resources.
158-23 (V.A.C.S. Art. 1446c-0, Sec. 2.051(w) (part).)
158-24 Sec. 36.205. PURCHASED POWER COST RECOVERY. (a) This
158-25 section applies only to an increase or decrease in the cost of
158-26 purchased electricity that has been:
158-27 (1) accepted by a federal regulatory authority; or
159-1 (2) approved after a hearing by the commission.
159-2 (b) The commission may use any appropriate method to provide
159-3 for the adjustment of the cost of purchased electricity on terms
159-4 determined by the commission.
159-5 (c) Purchased electricity costs may be recovered:
159-6 (1) concurrently with the effective date of the
159-7 changed costs to the purchasing electric utility; or
159-8 (2) as soon after the effective date as reasonably
159-9 practical.
159-10 (d) The commission may provide a mechanism to allow an
159-11 electric utility that has a noncontiguous geographical service area
159-12 and that purchases power for resale for that noncontiguous service
159-13 area from electric utilities that are not members of the Electric
159-14 Reliability Council of Texas to recover purchased power costs for
159-15 the area in a manner that reflects the purchased power cost for
159-16 that specific geographical noncontiguous area. The commission may
159-17 not require an electric cooperative corporation to use the
159-18 mechanism provided under this section unless the electric
159-19 cooperative corporation requests its use. (V.A.C.S. Art. 1446c-0,
159-20 Sec. 2.212(g)(3).)
159-21 Sec. 36.206. MARK-UPS. (a) A cost recovery factor
159-22 established for the recovery of purchased power costs may include:
159-23 (1) the cost the electric utility incurs in purchasing
159-24 capacity and energy;
159-25 (2) a mark-up added to the cost or another mechanism
159-26 the commission determines will reasonably compensate the utility
159-27 for any financial risk associated with purchased power obligations;
160-1 and
160-2 (3) the value added by the utility in making the
160-3 purchased power available to customers.
160-4 (b) The mark-ups and cost recovery factors, if allowed, may
160-5 be those necessary to encourage the electric utility to include
160-6 economical purchased power as part of the utility's energy and
160-7 capacity resource supply plan. (V.A.C.S. Art. 1446c-0, Sec.
160-8 2.1511.)
160-9 Sec. 36.207. USE OF MARK-UPS. Any mark-ups approved under
160-10 Chapter 34 or Section 36.206 are an exceptional form of rate relief
160-11 that the electric utility may recover from ratepayers only on a
160-12 finding by the commission that the relief is necessary to maintain
160-13 the utility's financial integrity. (V.A.C.S. Art. 1446c-0, Sec.
160-14 2.001(d) (part).)
160-15 Sec. 36.208. PAYMENT TO QUALIFYING FACILITY. In
160-16 establishing an electric utility's rates, the regulatory authority
160-17 shall:
160-18 (1) consider a payment made to a qualifying facility
160-19 under an agreement certified under Subchapter C, Chapter 35, to be
160-20 a reasonable and necessary operating expense of the electric
160-21 utility during the period for which the certification is effective;
160-22 and
160-23 (2) allow full, concurrent, and monthly recovery of
160-24 the amount of the payment. (V.A.C.S. Art. 1446c-0, Sec.
160-25 2.209(e).)
160-26 (Sections 36.209-36.250 reserved for expansion)
161-1 SUBCHAPTER F. PARTIAL RATE DEREGULATION AVAILABLE
161-2 TO CERTAIN COOPERATIVES
161-3 Sec. 36.251. ELECTRIC COOPERATIVE EXEMPTION. An electric
161-4 cooperative corporation providing retail electric utility service
161-5 at distribution voltage is exempt from rate regulation if:
161-6 (1) a majority of the members voting in an election on
161-7 the deregulation of the electric cooperative approve the exemption;
161-8 and
161-9 (2) the electric cooperative sends notice of the
161-10 action to each applicable regulatory authority. (V.A.C.S.
161-11 Art. 1446c-0, Sec. 2.2011(a) (part).)
161-12 Sec. 36.252. ELECTION ON EXEMPTION. (a) An electric
161-13 cooperative holding an election under Section 36.251 shall mail a
161-14 ballot to each electric cooperative member. The cooperative may
161-15 include the ballot in a monthly billing.
161-16 (b) The ballot shall be printed to permit voting for or
161-17 against rate deregulation of the electric cooperative.
161-18 (c) If the proposition is approved, the electric cooperative
161-19 shall send the ballots to the commission not later than the 10th
161-20 day after the date the electric cooperative counts the ballots.
161-21 (d) The commission shall administratively certify whether
161-22 the electric cooperative is deregulated for ratemaking purposes
161-23 based on the ballots received under Subsection (c). (V.A.C.S.
161-24 Art. 1446c-0, Sec. 2.2011(a) (part).)
161-25 Sec. 36.253. EFFECT OF ELECTION. (a) Except as provided by
161-26 Section 36.307, a regulatory authority may not establish or
161-27 regulate an electric cooperative's rates if the cooperative elects
162-1 under Section 36.252 to be exempt from rate regulation.
162-2 (b) Notwithstanding Section 33.001, the commission has
162-3 exclusive original jurisdiction in the electric cooperative's
162-4 service area in a proceeding initiated under Section 36.307.
162-5 (V.A.C.S. Art. 1446c-0, Sec. 2.2011(b).)
162-6 Sec. 36.254. APPLICATION OF OTHER PROVISIONS. (a) This
162-7 subchapter does not affect the application of a provision of this
162-8 title not directly related to:
162-9 (1) rates; or
162-10 (2) the authority of the commission to require an
162-11 electric cooperative to file a report required under this title or
162-12 under the commission's rules.
162-13 (b) A service fee or a service rule set by an electric
162-14 cooperative under this subchapter must comply with commission rules
162-15 that apply to all electric utilities.
162-16 (c) The commission may determine if an electric cooperative
162-17 has unlawfully charged or received a rate for electric utility
162-18 service. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(n).)
162-19 Sec. 36.255. SUBSEQUENT ELECTION; REVOCATION. (a) An
162-20 electric cooperative may not hold an election on the issue of its
162-21 exemption from rate regulation before the first anniversary of the
162-22 most recent election on the issue.
162-23 (b) Except as provided by Subsection (a), the members of an
162-24 electric cooperative may, by a majority vote of the members voting,
162-25 at any time:
162-26 (1) revoke the electric cooperative's election to be
162-27 exempt from rate regulation; or
163-1 (2) elect to be exempt from rate regulation.
163-2 (V.A.C.S. Art. 1446c-0, Secs. 2.2011(a) (part), (m).)
163-3 (Sections 36.256-36.300 reserved for expansion)
163-4 SUBCHAPTER G. RATE CHANGES BY CERTAIN
163-5 ELECTRIC COOPERATIVES
163-6 Sec. 36.301. APPLICATION OF SUBCHAPTER. This subchapter
163-7 applies to an electric cooperative that has elected to be exempt
163-8 from rate regulation under Subchapter F. (V.A.C.S. Art. 1446c-0,
163-9 Secs. 2.2011(a) (part), (p) (part).)
163-10 Sec. 36.302. METHODS OF CHANGING RATES. (a) An electric
163-11 cooperative may change its rates by:
163-12 (1) adopting a resolution approving the proposed
163-13 change;
163-14 (2) mailing notice of the proposed change to:
163-15 (A) the commission;
163-16 (B) each affected municipality and customer; and
163-17 (C) each electric utility providing retail
163-18 service in the electric cooperative's service area or in an
163-19 adjoining service area; and
163-20 (3) making available for review by any person at each
163-21 of the electric cooperative's business offices, a cost-of-service
163-22 study that:
163-23 (A) was prepared not earlier than the fifth
163-24 anniversary before the date the electric cooperative adopts rates
163-25 under this subchapter; and
163-26 (B) is certified by a professional engineer or
163-27 certified public accountant.
164-1 (b) The electric cooperative may satisfy the customer
164-2 notification requirement by including the notice in a monthly
164-3 billing. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(c).)
164-4 Sec. 36.303. CONTENTS OF NOTICE. (a) The notice required
164-5 by Section 36.302 must include:
164-6 (1) information concerning the increase or decrease in
164-7 total operating revenues over actual test year revenues or over
164-8 test year revenues adjusted to annualize the recovery of changes in
164-9 the cost of purchased electricity, stated as a dollar amount and as
164-10 a percentage;
164-11 (2) information concerning the classes of utility
164-12 customers affected;
164-13 (3) information concerning the creation and
164-14 application of any new rate classes;
164-15 (4) information concerning the increase or decrease
164-16 for each class stated as a percentage of actual test year revenues
164-17 for the class or of test year revenues for the class adjusted to
164-18 annualize the recovery of changes in the cost of purchased
164-19 electricity;
164-20 (5) a statement that the commission may review the
164-21 rate change if the commission receives, not later than the 60th day
164-22 after the date the notice is received, a petition that complies
164-23 with Section 36.307;
164-24 (6) the address and telephone number of the
164-25 commission;
164-26 (7) a statement that a customer opposed to the rate
164-27 change should notify the electric cooperative in writing of the
165-1 person's opposition and provide a return address; and
165-2 (8) a statement that a member may review a copy of any
165-3 written opposition the electric cooperative receives.
165-4 (b) The electric cooperative may not be required to provide
165-5 additional information in the notice. (V.A.C.S. Art. 1446c-0, Sec.
165-6 2.2011(d).)
165-7 Sec. 36.304. ACCESS TO WRITTEN OPPOSITION. An electric
165-8 cooperative shall make available for review by a member of the
165-9 cooperative at each of the electric cooperative's business offices
165-10 a copy of written opposition to a rate change received by the
165-11 cooperative. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(e).)
165-12 Sec. 36.305. TARIFFS; EFFECTIVE DATE OF RATE CHANGES. (a)
165-13 An electric cooperative shall file tariffs with the commission.
165-14 (b) If the electric cooperative complies with Section
165-15 36.302, the commission shall approve the tariffs not later than the
165-16 10th day after the 60-day period prescribed by Section 36.307(a)
165-17 unless a review is required under that section.
165-18 (c) If the tariffs are approved or if a review is not
165-19 required and the commission fails to act on or before the deadline
165-20 prescribed by Subsection (b), the change in rates is effective on:
165-21 (1) the 70th day after the date the electric
165-22 cooperative first complies with each requirement prescribed by
165-23 Section 36.302; or
165-24 (2) a later date determined by the electric
165-25 cooperative.
165-26 (d) Except as provided by Section 36.307, the rates of the
165-27 electric cooperative are not subject to review. (V.A.C.S.
166-1 Art. 1446c-0, Sec. 2.2011(f).)
166-2 Sec. 36.306. DISCOUNTED RATES. (a) An electric cooperative
166-3 may, by resolution, adopt retail tariffs or contracts containing
166-4 charges that are less than the average embedded cost retail rates
166-5 but that are not less than the electric cooperative's marginal
166-6 cost.
166-7 (b) The standards described in Section 36.007 apply to the
166-8 review of rates adopted under Subsection (a). In a review of the
166-9 rates, the electric cooperative's marginal cost shall be the lowest
166-10 marginal cost of any of the cooperative's wholesale power
166-11 suppliers. (V.A.C.S. Art. 1446c-0, Sec. 2.2011(p) (part).)
166-12 Sec. 36.307. COMMISSION REVIEW. (a) The commission shall
166-13 review a change in rates under this subchapter if, not later than
166-14 the 60th day after the date the electric cooperative first complies
166-15 with each requirement prescribed by Section 36.302, the commission
166-16 receives a petition requesting review signed by:
166-17 (1) at least 10 percent of the members of the electric
166-18 cooperative;
166-19 (2) members of the electric cooperative who purchased
166-20 more than 50 percent of the electric cooperative's annual energy
166-21 sales to a customer class in the test year, if the petition
166-22 contains a certification of the purchases; or
166-23 (3) an executive officer of an affected electric
166-24 utility, if the petition describes each particular class for which
166-25 a review is requested.
166-26 (b) A person who files a petition under Subsection (a) shall
166-27 notify the electric cooperative in writing of the action.
167-1 (c) The commission, on its own motion, may review the rates
167-2 of an electric cooperative if the commission finds that there is
167-3 good cause to believe that the electric cooperative is earning more
167-4 than a reasonable return on overall system revenues or on revenue
167-5 from a rate class.
167-6 (d) A single customer may seek a review of the rates of an
167-7 electric cooperative under Subchapter D if, in any period of 12
167-8 consecutive months during the 36 months preceding the date the
167-9 customer initiates a proceeding under Subchapter D, the customer:
167-10 (1) consumes more than 250,000,000 kwh; and
167-11 (2) purchases from the cooperative electric energy
167-12 equal to more than:
167-13 (A) 10 percent of the total energy sales of the
167-14 electric cooperative; or
167-15 (B) 7-1/2 percent of the total revenues of the
167-16 electric cooperative.
167-17 (e) A right conferred by Subsection (d) is in addition to
167-18 the rights of a customer under Subsection (a). (V.A.C.S.
167-19 Art. 1446c-0, Secs. 2.2011(g), (h), (i), (o), as added Acts 74th
167-20 Leg., R.S., Chs. 765 and 1013.)
167-21 Sec. 36.308. REVIEW REQUESTED BY COOPERATIVE MEMBER OR
167-22 COMMISSION. (a) The commission shall conduct a review under
167-23 Section 36.307(a)(1) or (2) or Section 36.307(c) in accordance with
167-24 Subchapter C and other applicable rate-setting principles of this
167-25 title, except that:
167-26 (1) the period for review does not begin until the
167-27 electric cooperative files the rate-filing package as required by
168-1 commission rules;
168-2 (2) a proposed change may not be suspended during the
168-3 pendency of the review; and
168-4 (3) the electric cooperative shall observe the rates
168-5 established by the commission until the rates are changed as
168-6 provided by this subchapter or another section of this title.
168-7 (b) Notwithstanding Subsection (a)(2), if ordered by the
168-8 commission, the electric cooperative shall refund or credit against
168-9 future bills money collected in excess of the rate finally
168-10 established by the commission. (V.A.C.S. Art. 1446c-0, Sec.
168-11 2.2011(j).)
168-12 Sec. 36.309. REVIEW REQUESTED BY AFFECTED ELECTRIC UTILITY.
168-13 (a) In a review conducted under Section 36.307(a)(3), an electric
168-14 cooperative shall file with the commission a copy of the
168-15 cost-of-service study required under Section 36.302 not later than
168-16 the 10th day after the date the electric cooperative receives
168-17 notice from an affected electric utility that a petition has been
168-18 filed.
168-19 (b) The commission shall determine for each class for which
168-20 review has been requested:
168-21 (1) the annual cost of providing service to the class,
168-22 as stated in the electric cooperative's cost-of-service study; and
168-23 (2) the revenues for the class that would be produced
168-24 by multiplying the rate established by the electric cooperative by
168-25 the annual billing units for the class, as stated in the
168-26 cost-of-service study.
168-27 (c) If the electric cooperative proposes a rate class solely
169-1 for a new customer, the electric cooperative shall:
169-2 (1) estimate the reasonable annual cost of providing
169-3 service to the class; and
169-4 (2) base class revenues on a reasonable estimate of
169-5 billing units.
169-6 (d) The rate for a class for which a review is requested
169-7 under Section 36.307(a)(3) is suspended during the pendency of the
169-8 review.
169-9 (e) The commission shall dismiss a petition for review and
169-10 approve the rates if the revenues for the class are not less than
169-11 the cost of providing service to the class.
169-12 (f) The commission shall disapprove a rate under review if
169-13 the revenues for the class are less than the cost of providing
169-14 service to the class. This action does not affect reconsideration
169-15 of the rate as a part of any subsequent ratemaking proceeding.
169-16 (g) A rate adopted by an electric cooperative is approved
169-17 and may be placed into effect if the commission fails to make its
169-18 final determination administratively not later than the 45th day
169-19 after the date the electric cooperative files its cost-of-service
169-20 study. (V.A.C.S. Art. 1446c-0, Secs. 2.2011(k), (l).)
169-21 (Sections 36.310-36.350 reserved for expansion)
169-22 SUBCHAPTER H. RATES FOR GOVERNMENTAL ENTITIES
169-23 Sec. 36.351. DISCOUNTED RATES FOR CERTAIN INSTITUTIONS OF
169-24 HIGHER EDUCATION. (a) Notwithstanding any other provision of this
169-25 title, each electric utility and municipally owned utility shall
169-26 discount charges for electric service provided to a facility of a
169-27 four-year state university, upper-level institution, Texas State
170-1 Technical College, or college.
170-2 (b) The discount is a 20-percent reduction of the utility's
170-3 base rates that would otherwise be paid under the applicable
170-4 tariffed rate.
170-5 (c) An electric or municipally owned utility is exempt from
170-6 this section if the 20-percent discount results in a reduction
170-7 equal to more than one percent of the utility's total annual
170-8 revenues.
170-9 (d) A municipally owned utility is exempt from this section
170-10 if the municipally owned utility, on September 1, 1995, discounted
170-11 base commercial rates for electric service provided to all
170-12 four-year state universities or colleges in its service area by 20
170-13 percent or more.
170-14 (e) This section does not apply to a rate charged to an
170-15 institution of higher education by a municipally owned utility that
170-16 provides a discounted rate to the state for electric services below
170-17 rates in effect on January 1, 1995, if the discounted rate provides
170-18 a greater financial discount to the state than is provided to the
170-19 institution of higher education through the discount provided by
170-20 this section.
170-21 (f) An investor-owned electric utility may not recover from
170-22 residential customers or any other customer class the assigned and
170-23 allocated costs of serving a state university or college that
170-24 receives a discount under this section.
170-25 (g) Each electric utility shall file tariffs with the
170-26 commission reflecting the discount required under this section.
170-27 The initial tariff filing is not a rate change for purposes of
171-1 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 2.2141.)
171-2 Sec. 36.352. SPECIAL RATE CLASS. Notwithstanding any other
171-3 provision of this title, if the commission, on or before September
171-4 1, 1995, approved the establishment of a separate rate class for
171-5 electric service for a university and grouped public schools in a
171-6 separate rate class, the commission shall include community
171-7 colleges in the rate class with public school customers. (V.A.C.S.
171-8 Art. 1446c-0, Sec. 2.215(c).)
171-9 Sec. 36.353. PAYMENT IN LIEU OF TAX. (a) A payment made in
171-10 lieu of a tax by a municipally owned utility to the municipality by
171-11 which the utility is owned may not be considered an expense of
171-12 operation in establishing the utility's rate for providing utility
171-13 service to a school district or hospital district.
171-14 (b) A rate a municipally owned utility receives from a
171-15 school district or hospital district may not be used to make or to
171-16 cover the cost of making payments in lieu of taxes to the
171-17 municipality that owns the utility. (V.A.C.S. Art. 1446c-0, Sec.
171-18 2.217.)
171-19 CHAPTER 37. CERTIFICATES OF CONVENIENCE
171-20 AND NECESSITY
171-21 SUBCHAPTER A. DEFINITIONS
171-22 Sec. 37.001. DEFINITIONS
171-23 (Sections 37.002-37.050 reserved for expansion)
171-24 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
171-25 Sec. 37.051. CERTIFICATE REQUIRED
171-26 Sec. 37.052. EXCEPTIONS TO CERTIFICATE REQUIREMENT
171-27 FOR SERVICE EXTENSION
172-1 Sec. 37.053. APPLICATION FOR CERTIFICATE
172-2 Sec. 37.054. NOTICE AND HEARING ON APPLICATION
172-3 Sec. 37.055. REQUEST FOR PRELIMINARY ORDER
172-4 Sec. 37.056. GRANT OR DENIAL OF CERTIFICATE
172-5 Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
172-6 FACILITY
172-7 Sec. 37.058. CERTIFICATE FOR ELECTRIC GENERATING PLANT
172-8 Sec. 37.059. REVOCATION OR AMENDMENT OF CERTIFICATE
172-9 (Sections 37.060-37.100 reserved for expansion)
172-10 SUBCHAPTER C. MUNICIPALITIES
172-11 Sec. 37.101. SERVICE IN ANNEXED OR INCORPORATED AREA
172-12 Sec. 37.102. GRANT OF CERTIFICATE FOR CERTAIN
172-13 MUNICIPALITIES
172-14 (Sections 37.103-37.150 reserved for expansion)
172-15 SUBCHAPTER D. REGULATION OF SERVICES, AREAS, AND FACILITIES
172-16 Sec. 37.151. PROVISION OF SERVICE
172-17 Sec. 37.152. GROUNDS FOR REDUCTION OF SERVICE
172-18 Sec. 37.153. REQUIRED REFUSAL OF SERVICE
172-19 Sec. 37.154. TRANSFER OF CERTIFICATE
172-20 Sec. 37.155. APPLICATION OF CONTRACTS
172-21 Sec. 37.156. INTERFERENCE WITH ANOTHER UTILITY
172-22 Sec. 37.157. MAPS
172-23 CHAPTER 37. CERTIFICATES OF CONVENIENCE
172-24 AND NECESSITY
172-25 SUBCHAPTER A. DEFINITIONS
172-26 Sec. 37.001. DEFINITIONS. In this chapter:
172-27 (1) "Certificate" means a certificate of convenience
173-1 and necessity.
173-2 (2) "Retail electric utility" means a person,
173-3 political subdivision, or agency that operates, maintains, or
173-4 controls in this state a facility to provide retail electric
173-5 utility service. The term does not include a corporation described
173-6 by Section 32.053 to the extent that the corporation sells
173-7 electricity exclusively at wholesale and not to the ultimate
173-8 consumer. A qualifying cogenerator that sells electric energy at
173-9 retail to the sole purchaser of the cogenerator's thermal output
173-10 under Sections 35.061 and 36.007 is not for that reason considered
173-11 to be a retail electric utility. (V.A.C.S. Art. 1446c-0, Secs.
173-12 2.0012(a) (part), 2.251; New.)
173-13 (Sections 37.002-37.050 reserved for expansion)
173-14 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
173-15 Sec. 37.051. CERTIFICATE REQUIRED. (a) An electric utility
173-16 may not directly or indirectly provide service to the public under
173-17 a franchise or permit unless the utility obtains from the
173-18 commission a certificate that states that the public convenience
173-19 and necessity requires or will require the installation, operation,
173-20 or extension of the service.
173-21 (b) Except as otherwise provided by this chapter, a retail
173-22 electric utility may not furnish or make available retail electric
173-23 utility service to an area in which retail electric utility service
173-24 is being lawfully furnished by another retail electric utility
173-25 unless the utility obtains a certificate that includes the area in
173-26 which the facility that receives the service is located. (V.A.C.S.
173-27 Art. 1446c-0, Sec. 2.252.)
174-1 Sec. 37.052. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
174-2 SERVICE EXTENSION. (a) An electric utility is not required to
174-3 obtain a certificate for an:
174-4 (1) extension into territory that is:
174-5 (A) contiguous to the territory the electric
174-6 utility serves;
174-7 (B) not receiving similar service from another
174-8 electric utility; and
174-9 (C) not in another electric utility's
174-10 certificated area;
174-11 (2) extension in or to territory the utility serves or
174-12 is authorized to serve under a certificate; or
174-13 (3) operation, extension, or service in progress on
174-14 September 1, 1975.
174-15 (b) An extension allowed under Subsection (a) is limited to
174-16 a device used:
174-17 (1) to interconnect existing facilities; or
174-18 (2) solely to transmit electric utility services from
174-19 an existing facility to a customer of retail electric utility
174-20 service. (V.A.C.S. Art. 1446c-0, Sec. 2.253.)
174-21 Sec. 37.053. APPLICATION FOR CERTIFICATE. (a) An electric
174-22 utility that wants to obtain or amend a certificate must submit an
174-23 application to the commission.
174-24 (b) The applicant shall file with the commission evidence
174-25 the commission requires to show the applicant has received the
174-26 consent, franchise, or permit required by the proper municipal or
174-27 other public authority. (V.A.C.S. Art. 1446c-0, Secs. 2.254(a),
175-1 (c).)
175-2 Sec. 37.054. NOTICE AND HEARING ON APPLICATION. (a) When
175-3 an application for a certificate is filed, the commission shall:
175-4 (1) give notice of the application to interested
175-5 parties; and
175-6 (2) if requested:
175-7 (A) set a time and place for a hearing; and
175-8 (B) give notice of the hearing.
175-9 (b) A person interested in the application may intervene at
175-10 the hearing. (V.A.C.S. Art. 1446c-0, Sec. 2.255(a).)
175-11 Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
175-12 electric utility that wants to exercise a right or privilege under
175-13 a franchise or permit that the utility anticipates obtaining but
175-14 has not been granted may apply to the commission for a preliminary
175-15 order under this section.
175-16 (b) The commission may issue a preliminary order declaring
175-17 that the commission, on application and under commission rules,
175-18 will grant the requested certificate on terms the commission
175-19 designates, after the electric utility obtains the franchise or
175-20 permit.
175-21 (c) The commission shall grant the certificate on
175-22 presentation of evidence satisfactory to the commission that the
175-23 electric utility has obtained the franchise or permit. (V.A.C.S.
175-24 Art. 1446c-0, Sec. 2.258.)
175-25 Sec. 37.056. GRANT OR DENIAL OF CERTIFICATE. (a) The
175-26 commission may approve an application and grant a certificate only
175-27 if the commission finds that the certificate is necessary for the
176-1 service, accommodation, convenience, or safety of the public.
176-2 (b) The commission may:
176-3 (1) grant the certificate as requested;
176-4 (2) grant the certificate for the construction of a
176-5 portion of the requested system, facility, or extension or the
176-6 partial exercise of the requested right or privilege; or
176-7 (3) refuse to grant the certificate.
176-8 (c) The commission shall grant each certificate on a
176-9 nondiscriminatory basis after considering:
176-10 (1) the adequacy of existing service;
176-11 (2) the need for additional service;
176-12 (3) the effect of granting the certificate on the
176-13 recipient of the certificate and any electric utility serving the
176-14 proximate area; and
176-15 (4) other factors, such as:
176-16 (A) community values;
176-17 (B) recreational and park areas;
176-18 (C) historical and aesthetic values;
176-19 (D) environmental integrity; and
176-20 (E) the probable improvement of service or
176-21 lowering of cost to consumers in the area if the certificate is
176-22 granted. (V.A.C.S. Art. 1446c-0, Secs. 2.255(b), (c).)
176-23 Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
176-24 FACILITY. The commission must approve or deny an application for a
176-25 certificate for a new transmission facility not later than the
176-26 first anniversary of the date the application is filed. If the
176-27 commission does not approve or deny the application on or before
177-1 that date, a party may seek a writ of mandamus in a district court
177-2 of Travis County to compel the commission to decide on the
177-3 application. (V.A.C.S. Art. 1446c-0, Sec. 2.255(e).)
177-4 Sec. 37.058. CERTIFICATE FOR ELECTRIC GENERATING PLANT. (a)
177-5 Sections 37.054, 37.056, and 37.057 do not apply to a certificate
177-6 for an electric generating plant that is requested under Chapter
177-7 34.
177-8 (b) The commission may grant a certificate for an electric
177-9 generating plant only in accordance with Chapter 34. (V.A.C.S.
177-10 Art. 1446c-0, Sec. 2.255(d).)
177-11 Sec. 37.059. REVOCATION OR AMENDMENT OF CERTIFICATE. (a)
177-12 The commission may revoke or amend a certificate after notice and
177-13 hearing if the commission finds that the certificate holder has
177-14 never provided or is no longer providing service in all or any part
177-15 of the certificated area.
177-16 (b) The commission may require one or more electric
177-17 utilities to provide service in an area affected by the revocation
177-18 or amendment of a certificate. (V.A.C.S. Art. 1446c-0, Sec.
177-19 2.264.)
177-20 (Sections 37.060-37.100 reserved for expansion)
177-21 SUBCHAPTER C. MUNICIPALITIES
177-22 Sec. 37.101. SERVICE IN ANNEXED OR INCORPORATED AREA. (a)
177-23 If an area is or will be included within a municipality as the
177-24 result of annexation, incorporation, or another reason, each
177-25 electric utility that holds or is entitled to hold a certificate
177-26 under this title to provide service or operate a facility in the
177-27 area before the inclusion has the right to continue to provide the
178-1 service or operate the facility and extend service within the
178-2 utility's certificated area in the annexed or incorporated area
178-3 under the rights granted by the certificate and this title.
178-4 (b) Notwithstanding any other law, an electric utility has
178-5 the right to:
178-6 (1) continue and extend service within the utility's
178-7 certificated area; and
178-8 (2) use roads, streets, highways, alleys, and public
178-9 property to furnish retail electric utility service.
178-10 (c) The governing body of a municipality may require an
178-11 electric utility to relocate the utility's facility at the
178-12 utility's expense to permit the widening or straightening of a
178-13 street by:
178-14 (1) giving the electric utility 30 days' notice; and
178-15 (2) specifying the new location for the facility along
178-16 the right-of-way of the street.
178-17 (d) This section does not:
178-18 (1) limit the power of a city, town, or village to
178-19 incorporate or of a municipality to extend its boundaries by
178-20 annexation; or
178-21 (2) prohibit a municipality from levying a tax or
178-22 other special charge for the use of the streets as authorized by
178-23 Section 182.025, Tax Code. (V.A.C.S. Art. 1446c-0, Secs. 2.256(a),
178-24 (b), (c).)
178-25 Sec. 37.102. GRANT OF CERTIFICATE FOR CERTAIN
178-26 MUNICIPALITIES. (a) If a municipal corporation offers retail
178-27 electric utility service in a municipality having a population of
179-1 more than 135,000 that is located in a county having a population
179-2 of more than 1,500,000, the commission shall singly certificate
179-3 areas in the municipality's boundaries in which more than one
179-4 electric utility provides electric utility service.
179-5 (b) In singly certificating an area under Subsection (a),
179-6 the commission shall preserve the right of an electric utility to
179-7 serve the customers the electric utility was serving on June 17,
179-8 1983. This subsection does not apply to a customer at least
179-9 partially served by a nominal 69,000 volts system who gave notice
179-10 of termination to the utility servicing that customer before June
179-11 17, 1983. (V.A.C.S. Art. 1446c-0, Sec. 2.256(d).)
179-12 (Sections 37.103-37.150 reserved for expansion)
179-13 SUBCHAPTER D. REGULATION OF SERVICES, AREAS, AND FACILITIES
179-14 Sec. 37.151. PROVISION OF SERVICE. Except as provided by
179-15 this section, Section 37.152, and Section 37.153, a certificate
179-16 holder shall:
179-17 (1) serve every consumer in the utility's certificated
179-18 area; and
179-19 (2) provide continuous and adequate service in that
179-20 area. (V.A.C.S. Art. 1446c-0, Sec. 2.259(a).)
179-21 Sec. 37.152. GROUNDS FOR REDUCTION OF SERVICE. (a) Unless
179-22 the commission issues a certificate that the present and future
179-23 convenience and necessity will not be adversely affected, a
179-24 certificate holder may not discontinue, reduce, or impair service
179-25 to any part of the holder's certificated service area except for:
179-26 (1) nonpayment of charges;
179-27 (2) nonuse; or
180-1 (3) another similar reason that occurs in the usual
180-2 course of business.
180-3 (b) A discontinuance, reduction, or impairment of service
180-4 must be in compliance with and subject to any condition or
180-5 restriction the commission prescribes. (V.A.C.S. Art. 1446c-0,
180-6 Secs. 2.259(b), (c).)
180-7 Sec. 37.153. REQUIRED REFUSAL OF SERVICE. A certificate
180-8 holder shall refuse to serve a customer in the holder's
180-9 certificated area if the holder is prohibited from providing the
180-10 service under Section 212.012 or 232.029, Local Government Code.
180-11 (V.A.C.S. Art. 1446c-0, Sec. 2.260.)
180-12 Sec. 37.154. TRANSFER OF CERTIFICATE. (a) An electric
180-13 utility may sell, assign, or lease a certificate or a right
180-14 obtained under a certificate if the commission determines that the
180-15 purchaser, assignee, or lessee can provide adequate service.
180-16 (b) A sale, assignment, or lease of a certificate or a right
180-17 is subject to conditions the commission prescribes. (V.A.C.S.
180-18 Art. 1446c-0, Sec. 2.261.)
180-19 Sec. 37.155. APPLICATION OF CONTRACTS. A contract approved
180-20 by the commission between retail electric utilities that designates
180-21 areas and customers to be served by the utilities:
180-22 (1) is valid and enforceable; and
180-23 (2) shall be incorporated into the appropriate areas
180-24 of certification. (V.A.C.S. Art. 1446c-0, Sec. 2.257.)
180-25 Sec. 37.156. INTERFERENCE WITH ANOTHER UTILITY. If an
180-26 electric utility constructing or extending the utility's lines,
180-27 plant, or system interferes or attempts to interfere with the
181-1 operation of a line, plant, or system of another utility, the
181-2 commission by order may:
181-3 (1) prohibit the construction or extension; or
181-4 (2) prescribe terms for locating the affected lines,
181-5 plants, or systems. (V.A.C.S. Art. 1446c-0, Sec. 2.262.)
181-6 Sec. 37.157. MAPS. An electric utility shall file with the
181-7 commission one or more maps that show each utility facility and
181-8 that separately illustrate each utility facility for the
181-9 generation, transmission, or distribution of the utility's services
181-10 on a date the commission orders. (V.A.C.S. Art. 1446c-0, Sec.
181-11 2.254(b).)
181-12 CHAPTER 38. REGULATION OF ELECTRIC SERVICES
181-13 SUBCHAPTER A. STANDARDS
181-14 Sec. 38.001. GENERAL STANDARD
181-15 Sec. 38.002. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
181-16 STANDARDS
181-17 Sec. 38.003. RULE OR STANDARD
181-18 Sec. 38.004. MINIMUM CLEARANCE STANDARD
181-19 (Sections 38.005-38.020 reserved for expansion)
181-20 SUBCHAPTER B. PROHIBITIONS ON
181-21 PREFERENCES AND DISCRIMINATION
181-22 Sec. 38.021. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
181-23 SERVICE PROHIBITED
181-24 Sec. 38.022. DISCRIMINATION AND RESTRICTION ON COMPETITION
181-25 (Sections 38.023-38.050 reserved for expansion)
181-26 SUBCHAPTER C. EXAMINATIONS, TESTS, AND INSPECTIONS
181-27 Sec. 38.051. EXAMINATION AND TEST OF INSTRUMENT OR EQUIPMENT;
182-1 INSPECTION
182-2 Sec. 38.052. INSPECTION FOR CONSUMER
182-3 (Sections 38.053-38.070 reserved for expansion)
182-4 SUBCHAPTER D. IMPROVEMENTS IN SERVICE
182-5 Sec. 38.071. IMPROVEMENTS IN SERVICE; INTERCONNECTING SERVICE
182-6 CHAPTER 38. REGULATION OF ELECTRIC SERVICES
182-7 SUBCHAPTER A. STANDARDS
182-8 Sec. 38.001. GENERAL STANDARD. An electric utility shall
182-9 furnish service, instrumentalities, and facilities that are safe,
182-10 adequate, efficient, and reasonable. (V.A.C.S. Art. 1446c-0, Sec.
182-11 2.155(a).)
182-12 Sec. 38.002. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
182-13 STANDARDS. A regulatory authority, on its own motion or on
182-14 complaint and after reasonable notice and hearing, may:
182-15 (1) adopt just and reasonable standards,
182-16 classifications, rules, or practices an electric utility must
182-17 follow in furnishing a service;
182-18 (2) adopt adequate and reasonable standards for
182-19 measuring a condition, including quantity, quality, pressure, and
182-20 initial voltage, relating to the furnishing of a service;
182-21 (3) adopt reasonable rules for examining, testing, and
182-22 measuring a service; and
182-23 (4) adopt or approve reasonable rules, specifications,
182-24 and standards to ensure the accuracy of equipment, including meters
182-25 and instruments, used to measure a service. (V.A.C.S.
182-26 Art. 1446c-0, Sec. 2.155(b).)
182-27 Sec. 38.003. RULE OR STANDARD. (a) An electric utility may
183-1 not impose a rule except as provided by this title.
183-2 (b) An electric utility may file with the regulatory
183-3 authority a standard, classification, rule, or practice the utility
183-4 follows.
183-5 (c) The standard, classification, rule, or practice
183-6 continues in force until:
183-7 (1) amended by the utility; or
183-8 (2) changed by the regulatory authority as provided by
183-9 this title. (V.A.C.S. Art. 1446c-0, Secs. 2.153 (part),
183-10 2.155(c).)
183-11 Sec. 38.004. MINIMUM CLEARANCE STANDARD. Notwithstanding
183-12 any other law, a transmission or distribution line owned by an
183-13 electric utility must be constructed, operated, and maintained, as
183-14 to clearances, in the manner described by the National Electrical
183-15 Safety Code Standard ANSI (c)(2), as adopted by the American
183-16 National Safety Institute and in effect at the time of
183-17 construction. (V.A.C.S. Art. 1446c-0, Sec. 2.155(d).)
183-18 (Sections 38.005-38.020 reserved for expansion)
183-19 SUBCHAPTER B. PROHIBITIONS ON
183-20 PREFERENCES AND DISCRIMINATION
183-21 Sec. 38.021. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
183-22 SERVICE PROHIBITED. In providing a service to persons in a
183-23 classification, an electric utility may not:
183-24 (1) grant an unreasonable preference or advantage to a
183-25 person in the classification; or
183-26 (2) subject a person in the classification to an
183-27 unreasonable prejudice or disadvantage. (V.A.C.S. Art. 1446c-0,
184-1 Sec. 2.214 (part).)
184-2 Sec. 38.022. DISCRIMINATION AND RESTRICTION ON COMPETITION.
184-3 An electric utility may not:
184-4 (1) discriminate against a person who sells or leases
184-5 equipment or performs services in competition with the electric
184-6 utility; or
184-7 (2) engage in a practice that tends to restrict or
184-8 impair that competition. (V.A.C.S. Art. 1446c-0, Sec. 2.216.)
184-9 (Sections 38.023-38.050 reserved for expansion)
184-10 SUBCHAPTER C. EXAMINATIONS, TESTS, AND INSPECTIONS
184-11 Sec. 38.051. EXAMINATION AND TEST OF INSTRUMENT OR
184-12 EQUIPMENT; INSPECTION. (a) A regulatory authority may:
184-13 (1) examine and test equipment, including meters and
184-14 instruments, used to measure service of an electric utility; and
184-15 (2) set up and use on the premises occupied by an
184-16 electric utility an apparatus or appliance necessary for the
184-17 examination or test.
184-18 (b) The electric utility is entitled to be represented at an
184-19 examination, test, or inspection made under this section.
184-20 (c) The electric utility and its officers and employees
184-21 shall facilitate the examination, test, or inspection by giving
184-22 reasonable aid to the regulatory authority and to any person
184-23 designated by the regulatory authority for the performance of those
184-24 duties. (V.A.C.S. Art. 1446c-0, Sec. 2.156(a) (part).)
184-25 Sec. 38.052. INSPECTION FOR CONSUMER. (a) A consumer may
184-26 have a meter or other measuring device tested by an electric
184-27 utility:
185-1 (1) once without charge, after a reasonable period of
185-2 presumed accuracy the regulatory authority establishes by rule; and
185-3 (2) at a shorter interval on payment of a reasonable
185-4 fee established by the regulatory authority.
185-5 (b) The regulatory authority shall establish reasonable fees
185-6 to be paid for other examining or testing of a measuring device on
185-7 the request of a consumer.
185-8 (c) If the consumer requests the test under Subsection
185-9 (a)(2) and the measuring device is found unreasonably defective or
185-10 incorrect to the substantial disadvantage of the consumer, the fee
185-11 the consumer paid at the time of the request shall be refunded.
185-12 (V.A.C.S. Art. 1446c-0, Sec. 2.156(b).)
185-13 (Sections 38.053-38.070 reserved for expansion)
185-14 SUBCHAPTER D. IMPROVEMENTS IN SERVICE
185-15 Sec. 38.071. IMPROVEMENTS IN SERVICE; INTERCONNECTING
185-16 SERVICE. The commission, after notice and hearing, may:
185-17 (1) order an electric utility to provide specified
185-18 improvements in its service in a specified area if:
185-19 (A) service in the area is inadequate or
185-20 substantially inferior to service in a comparable area; and
185-21 (B) requiring the company to provide the
185-22 improved service is reasonable; or
185-23 (2) order two or more electric utilities to establish
185-24 specified facilities for interconnecting service. (V.A.C.S.
185-25 Art. 1446c-0, Sec. 2.263.)
185-26 (Chapters 39-50 reserved for expansion)
185-27 SUBTITLE C. TELECOMMUNICATIONS UTILITIES
186-1 CHAPTER 51. GENERAL PROVISIONS
186-2 Sec. 51.001. POLICY
186-3 Sec. 51.002. DEFINITIONS
186-4 Sec. 51.003. APPLICABILITY
186-5 Sec. 51.004. PRICING FLEXIBILITY
186-6 Sec. 51.005. ASSISTANCE TO MUNICIPALITY
186-7 Sec. 51.006. MUNICIPAL PARTICIPATION IN RATEMAKING
186-8 PROCEEDINGS
186-9 Sec. 51.007. MUNICIPAL STANDING IN CERTAIN CASES
186-10 Sec. 51.008. JUDICIAL REVIEW
186-11 Sec. 51.009. MUNICIPAL FEES
186-12 Sec. 51.010. COMMISSION INVESTIGATION OF SALE, MERGER, OR
186-13 CERTAIN OTHER ACTIONS
186-14 CHAPTER 51. GENERAL PROVISIONS
186-15 Sec. 51.001. POLICY. (a) Significant changes have occurred
186-16 in telecommunications since the law from which this title is
186-17 derived was originally adopted. To encourage and accelerate the
186-18 development of a competitive and advanced telecommunications
186-19 environment and infrastructure, new rules, policies, and principles
186-20 must be formulated and applied to protect the public interest.
186-21 (b) It is the policy of this state to:
186-22 (1) promote diversity of telecommunications providers
186-23 and interconnectivity;
186-24 (2) encourage a fully competitive telecommunications
186-25 marketplace; and
186-26 (3) maintain a wide availability of high quality,
186-27 interoperable, standards-based telecommunications services at
187-1 affordable rates.
187-2 (c) The policy goals described by Subsection (b) are best
187-3 achieved by legislation that modernizes telecommunications
187-4 regulation by:
187-5 (1) guaranteeing the affordability of basic telephone
187-6 service in a competitively neutral manner; and
187-7 (2) fostering free market competition in the
187-8 telecommunications industry.
187-9 (d) The technological advancements, advanced
187-10 telecommunications infrastructure, and increased customer choices
187-11 for telecommunications services generated by a truly competitive
187-12 market play a critical role in Texas' economic future by raising
187-13 living standards for Texans through:
187-14 (1) enhanced economic development; and
187-15 (2) improved delivery of education, health, and other
187-16 public and private services.
187-17 (e) The strength of competitive forces varies widely between
187-18 markets, products, and services. It is the policy of this state to
187-19 require the commission to take action necessary to enhance
187-20 competition by adjusting regulation to match the degree of
187-21 competition in the marketplace to:
187-22 (1) reduce the cost and burden of regulation; and
187-23 (2) protect markets that are not competitive.
187-24 (f) It is the policy of this state to ensure that high
187-25 quality telecommunications services are available, accessible, and
187-26 usable by an individual with a disability, unless making the
187-27 services available, accessible, or usable would:
188-1 (1) result in an undue burden, including unreasonable
188-2 cost or technical infeasibility; or
188-3 (2) have an adverse competitive effect. (V.A.C.S.
188-4 Art. 1446c-0, Sec. 3.001.)
188-5 Sec. 51.002. DEFINITIONS. In this subtitle:
188-6 (1) "Basic local telecommunications service" means:
188-7 (A) flat rate residential and business local
188-8 exchange telephone service, including primary directory listings;
188-9 (B) tone dialing service;
188-10 (C) access to operator services;
188-11 (D) access to directory assistance services;
188-12 (E) access to 911 service provided by a local
188-13 authority or dual party relay service;
188-14 (F) the ability to report service problems seven
188-15 days a week;
188-16 (G) lifeline and tel-assistance services; and
188-17 (H) any other service the commission determines
188-18 after a hearing is a basic local telecommunications service.
188-19 (2) "Dominant carrier" means a provider of a
188-20 communication service provided wholly or partly over a telephone
188-21 system who the commission determines has sufficient market power in
188-22 a telecommunications market to control prices for that service in
188-23 that market in a manner adverse to the public interest. The term
188-24 includes a provider who provided local exchange telephone service
188-25 within a certificated exchange area on September 1, 1995, as to
188-26 that service and as to any other service for which a competitive
188-27 alternative is not available in a particular geographic market. In
189-1 addition, with respect to:
189-2 (A) intraLATA long distance message
189-3 telecommunications service originated by dialing the access code
189-4 "1-plus," the term includes a provider of local exchange telephone
189-5 service in a certificated exchange area for whom the use of that
189-6 access code for the origination of "1-plus" intraLATA calls in the
189-7 exchange area is exclusive; and
189-8 (B) interexchange services, the term does not
189-9 include an interexchange carrier that is not a certificated local
189-10 exchange company.
189-11 (3) "Incumbent local exchange company" means a local
189-12 exchange company that has a certificate of convenience and
189-13 necessity on September 1, 1995.
189-14 (4) "Local exchange company" means a
189-15 telecommunications utility that has a certificate of convenience
189-16 and necessity or a certificate of operating authority to provide in
189-17 this state:
189-18 (A) local exchange telephone service;
189-19 (B) basic local telecommunications service; or
189-20 (C) switched access service.
189-21 (5) "Local exchange telephone service" means
189-22 telecommunications service provided within an exchange to establish
189-23 connections between customer premises within the exchange,
189-24 including connections between a customer premises and a long
189-25 distance provider serving the exchange. The term includes tone
189-26 dialing service, service connection charges, and directory
189-27 assistance services offered in connection with basic local
190-1 telecommunications service and interconnection with other service
190-2 providers. The term does not include the following services,
190-3 whether offered on an intraexchange or interexchange basis:
190-4 (A) central office based PBX-type services for
190-5 systems of 75 stations or more;
190-6 (B) billing and collection services;
190-7 (C) high-speed private line services of 1.544
190-8 megabits or greater;
190-9 (D) customized services;
190-10 (E) private line or virtual private line
190-11 services;
190-12 (F) resold or shared local exchange telephone
190-13 services if permitted by tariff;
190-14 (G) dark fiber services;
190-15 (H) non-voice data transmission service offered
190-16 as a separate service and not as a component of basic local
190-17 telecommunications service;
190-18 (I) dedicated or virtually dedicated access
190-19 services; or
190-20 (J) any other service the commission determines
190-21 is not a "local exchange telephone service."
190-22 (6) "Long run incremental cost" has the meaning
190-23 assigned by 16 T.A.C. Section 23.91.
190-24 (7) "Pricing flexibility" includes:
190-25 (A) customer specific contracts;
190-26 (B) packaging of services;
190-27 (C) volume, term, and discount pricing;
191-1 (D) zone density pricing; and
191-2 (E) other promotional pricing.
191-3 (8) "Public utility" or "utility" means a person or
191-4 river authority that owns or operates for compensation in this
191-5 state equipment or facilities to convey, transmit, or receive
191-6 communications over a telephone system as a dominant carrier. The
191-7 term includes a lessee, trustee, or receiver of any of those
191-8 entities, or a combination of those entities. The term does not
191-9 include a municipal corporation. A person is not a public utility
191-10 solely because the person:
191-11 (A) furnishes or furnishes and maintains a
191-12 private system;
191-13 (B) manufactures, distributes, installs, or
191-14 maintains customer premise communications equipment and
191-15 accessories; or
191-16 (C) furnishes a telecommunications service or
191-17 commodity only to itself, its employees, or its tenants as an
191-18 incident of employment or tenancy, if that service or commodity is
191-19 not resold to or used by others.
191-20 (9) "Separation" means the division of plant,
191-21 revenues, expenses, taxes, and reserves applicable to exchange or
191-22 local service if these items are used in common to provide public
191-23 utility service to both local exchange telephone service and other
191-24 service, such as interstate or intrastate toll service.
191-25 (10) "Telecommunications provider":
191-26 (A) means:
191-27 (i) a certificated telecommunications
192-1 utility;
192-2 (ii) a shared tenant service provider;
192-3 (iii) a nondominant carrier of
192-4 telecommunications services;
192-5 (iv) a provider of commercial mobile
192-6 service as defined by Section 332(d), Communications Act of 1934
192-7 (47 U.S.C. Section 151 et seq.), Federal Communications Commission
192-8 rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
192-9 Law 103-66);
192-10 (v) a telecommunications entity that
192-11 provides central office based PBX-type sharing or resale
192-12 arrangements;
192-13 (vi) an interexchange telecommunications
192-14 carrier;
192-15 (vii) a specialized common carrier;
192-16 (viii) a reseller of communications;
192-17 (ix) a provider of operator services;
192-18 (x) a provider of customer-owned pay
192-19 telephone service; or
192-20 (xi) another person or entity determined
192-21 by the commission to provide telecommunications services to
192-22 customers in this state; and
192-23 (B) does not mean:
192-24 (i) a provider of enhanced or information
192-25 services, or another user of telecommunications services, who does
192-26 not also provide telecommunications services; or
192-27 (ii) a state agency or state institution
193-1 of higher education, or a service provided by a state agency or
193-2 state institution of higher education.
193-3 (11) "Telecommunications utility" means:
193-4 (A) a public utility;
193-5 (B) an interexchange telecommunications carrier,
193-6 including a reseller of interexchange telecommunications services;
193-7 (C) a specialized communications common carrier;
193-8 (D) a reseller of communications;
193-9 (E) a communications carrier who conveys,
193-10 transmits, or receives communications wholly or partly over a
193-11 telephone system;
193-12 (F) a provider of operator services as defined
193-13 by Section 55.081, unless the provider is a subscriber to
193-14 customer-owned pay telephone service; and
193-15 (G) a separated affiliate or an electronic
193-16 publishing joint venture as defined in Chapter 63.
193-17 (12) "Tier 1 local exchange company" has the meaning
193-18 assigned by the Federal Communications Commission. (V.A.C.S.
193-19 Art. 1446c-0, Secs. 3.002(1), (2) (part), (3), (5), (6), (7), (8)
193-20 (part), (9) (part), (10), (11), (12); New.)
193-21 Sec. 51.003. APPLICABILITY. Except as otherwise expressly
193-22 provided by this title, this title does not apply to:
193-23 (1) a company that as its only form of business:
193-24 (A) is a telecommunications manager; or
193-25 (B) administers central office based or customer
193-26 based PBX-type sharing/resale arrangements;
193-27 (2) telegraph services;
194-1 (3) television or radio stations;
194-2 (4) community antenna television services; or
194-3 (5) a provider of commercial mobile service as defined
194-4 by Section 332(d), Communications Act of 1934 (47 U.S.C. Section
194-5 151 et seq.), Federal Communications Commission rules, and the
194-6 Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66),
194-7 other than conventional rural radio-telephone services provided by
194-8 a wire-line telephone company under the Public Mobile Service rules
194-9 of the Federal Communications Commission (47 C.F.R. Part 22).
194-10 (V.A.C.S. Art. 1446c-0, Sec. 3.002(9) (part).)
194-11 Sec. 51.004. PRICING FLEXIBILITY. (a) A discount or other
194-12 form of pricing flexibility may not be preferential, prejudicial,
194-13 or discriminatory.
194-14 (b) This title does not prohibit a volume discount or other
194-15 discount based on a reasonable business purpose. (V.A.C.S.
194-16 Art. 1446c-0, Secs. 3.002(8) (part), 3.051(m) (part).)
194-17 Sec. 51.005. ASSISTANCE TO MUNICIPALITY. On request of a
194-18 municipality, the commission may advise and assist the municipality
194-19 with respect to a question or proceeding arising under this title.
194-20 Assistance provided by the commission may include aid to a
194-21 municipality on a matter pending before the commission or a court,
194-22 such as making a staff member available as a witness or otherwise
194-23 providing evidence to the municipality. (V.A.C.S. Art. 1446c-0,
194-24 Sec. 3.102.)
194-25 Sec. 51.006. MUNICIPAL PARTICIPATION IN RATEMAKING
194-26 PROCEEDINGS. (a) The governing body of a municipality
194-27 participating in a ratemaking proceeding may engage rate
195-1 consultants, accountants, auditors, attorneys, and engineers to:
195-2 (1) conduct investigations, present evidence, and
195-3 advise and represent the governing body; and
195-4 (2) assist the governing body with litigation before
195-5 the commission or a court.
195-6 (b) The public utility in the ratemaking proceeding shall
195-7 reimburse the governing body of the municipality for the reasonable
195-8 cost of the services of a person engaged under Subsection (a) to
195-9 the extent the commission determines is reasonable. (V.A.C.S.
195-10 Art. 1446c-0, Sec. 3.101(a).)
195-11 Sec. 51.007. MUNICIPAL STANDING IN CERTAIN CASES. (a) A
195-12 municipality has standing in each case before the commission that
195-13 relates to a utility providing service in the municipality.
195-14 (b) A municipality's standing is subject to the right of the
195-15 commission to:
195-16 (1) determine standing in a case involving a retail
195-17 service area dispute that involves two or more utilities; and
195-18 (2) consolidate municipalities on an issue of common
195-19 interest. (V.A.C.S. Art. 1446c-0, Sec. 3.101(b) (part).)
195-20 Sec. 51.008. JUDICIAL REVIEW. A municipality is entitled to
195-21 judicial review of a commission order relating to a utility
195-22 providing services in the municipality as provided by Section
195-23 15.001. (V.A.C.S. Art. 1446c-0, Sec. 3.101(b) (part).)
195-24 Sec. 51.009. MUNICIPAL FEES. (a) Nothing in this title,
195-25 including Section 53.201, may be construed as in any way limiting
195-26 the right of a public utility to pass through a municipal fee,
195-27 including an increase in a municipal fee.
196-1 (b) A public utility that traditionally passes through
196-2 municipal fees shall promptly pass through any municipal fee
196-3 reduction. (V.A.C.S. Art. 1446c-0, Secs. 3.1015, 3.211(g) (part).)
196-4 Sec. 51.010. COMMISSION INVESTIGATION OF SALE, MERGER, OR
196-5 CERTAIN OTHER ACTIONS. (a) The commission, not later than the
196-6 180th day after the date a public utility reports to the commission
196-7 under Section 14.101, shall complete an investigation under that
196-8 section and enter a final order.
196-9 (b) If a final order is not entered as required by
196-10 Subsection (a), the commission is considered to have determined
196-11 that the action taken by the public utility is consistent with the
196-12 public interest.
196-13 (c) Section 14.101 does not apply to:
196-14 (1) a company that receives a certificate of operating
196-15 authority or a service provider certificate of operating authority
196-16 under Chapter 54; or
196-17 (2) a company electing under Chapter 58. (V.A.C.S.
196-18 Art. 1446c-0, Sec. 3.053.)
196-19 CHAPTER 52. COMMISSION JURISDICTION
196-20 SUBCHAPTER A. GENERAL POWERS AND DUTIES OF COMMISSION
196-21 Sec. 52.001. POLICY
196-22 Sec. 52.002. AUTHORITY TO REGULATE
196-23 Sec. 52.003. COOPERATION WITH OTHER REGULATORY
196-24 AUTHORITIES
196-25 Sec. 52.004. COMMISSION MAY ESTABLISH SEPARATE MARKETS
196-26 Sec. 52.005. MINIMUM REQUIREMENTS FOR DOMINANT CARRIERS
196-27 Sec. 52.006. COMMISSION TO REPORT TO LEGISLATURE
197-1 (Sections 52.007-52.050 reserved for expansion)
197-2 SUBCHAPTER B. INCUMBENT LOCAL EXCHANGE COMPANIES
197-3 Sec. 52.051. POLICY
197-4 Sec. 52.052. APPLICABILITY
197-5 Sec. 52.053. CERTAIN RATES PROHIBITED
197-6 Sec. 52.054. RULES AND PROCEDURES FOR INCUMBENT LOCAL
197-7 EXCHANGE COMPANIES
197-8 Sec. 52.055. HEARING TO DETERMINE LEVEL OF COMPETITION
197-9 Sec. 52.056. SPECIFICALLY AUTHORIZED REGULATORY
197-10 TREATMENTS
197-11 Sec. 52.057. CUSTOMER-SPECIFIC CONTRACTS
197-12 Sec. 52.058. NEW OR EXPERIMENTAL SERVICES OR PROMOTIONAL
197-13 RATES
197-14 Sec. 52.059. RATES TO COVER APPROPRIATE COSTS
197-15 Sec. 52.060. ADMINISTRATIVE FEE OR ASSESSMENT
197-16 (Sections 52.061-52.100 reserved for expansion)
197-17 SUBCHAPTER C. TELECOMMUNICATIONS UTILITIES
197-18 THAT ARE NOT DOMINANT CARRIERS
197-19 Sec. 52.101. APPLICABILITY
197-20 Sec. 52.102. LIMITED REGULATORY AUTHORITY
197-21 Sec. 52.103. REGISTRATION REQUIRED
197-22 Sec. 52.104. COMMISSION MAY INVESTIGATE
197-23 Sec. 52.105. ACCESS TO CERTAIN SERVICES REQUIRED
197-24 Sec. 52.106. QUALITY OF SERVICE REQUIRED
197-25 Sec. 52.107. PREDATORY PRICING
197-26 Sec. 52.108. OTHER PROHIBITED PRACTICES
197-27 Sec. 52.109. AVAILABILITY OF SERVICE
198-1 Sec. 52.110. BURDEN OF PROOF
198-2 Sec. 52.111. COMMISSION MAY EXEMPT
198-3 (Sections 52.112-52.150 reserved for expansion)
198-4 SUBCHAPTER D. CERTIFICATE HOLDERS
198-5 Sec. 52.151. APPLICABILITY
198-6 Sec. 52.152. LIMITED REGULATORY AUTHORITY
198-7 Sec. 52.153. BOOKS AND RECORDS
198-8 Sec. 52.154. COMMISSION MAY NOT OVERBURDEN
198-9 (Sections 52.155-52.200 reserved for expansion)
198-10 SUBCHAPTER E. DEREGULATION OF SERVICE
198-11 Sec. 52.201. DEREGULATION OF SERVICE
198-12 Sec. 52.202. DETERMINATION OF GEOGRAPHIC MARKET
198-13 Sec. 52.203. MARKET POWER TEST
198-14 Sec. 52.204. RATE FOR DEREGULATED SERVICE
198-15 Sec. 52.205. INVESTIGATION OF COMPETITION
198-16 Sec. 52.206. REREGULATION OF MARKET
198-17 Sec. 52.207. REPORTS; CONFIDENTIAL INFORMATION
198-18 (Sections 52.208-52.250 reserved for expansion)
198-19 SUBCHAPTER F. REQUIRED REPORTS AND FILINGS; RECORDS
198-20 Sec. 52.251. TARIFF FILINGS
198-21 Sec. 52.252. DEPRECIATION ACCOUNT
198-22 Sec. 52.253. ACCOUNTS OF PROFITS AND LOSSES
198-23 Sec. 52.254. REPORT OF CERTAIN EXPENSES
198-24 Sec. 52.255. AVAILABILITY OF RECORDS
198-25 CHAPTER 52. COMMISSION JURISDICTION
198-26 SUBCHAPTER A. GENERAL POWERS AND DUTIES OF COMMISSION
198-27 Sec. 52.001. POLICY. (a) It is the policy of this state to
199-1 protect the public interest in having adequate and efficient
199-2 telecommunications service available to each resident of this state
199-3 at just, fair, and reasonable rates.
199-4 (b) The telecommunications industry, through technical
199-5 advancements, federal legislative, judicial, and administrative
199-6 actions, and the formulation of new telecommunications enterprises,
199-7 has become and will continue to be in many and growing areas a
199-8 competitive industry that does not lend itself to traditional
199-9 public utility regulatory rules, policies, and principles. As a
199-10 result, the public interest requires that rules, policies, and
199-11 principles be formulated and applied to:
199-12 (1) protect the public interest; and
199-13 (2) provide equal opportunity to each
199-14 telecommunications utility in a competitive marketplace. (V.A.C.S.
199-15 Art. 1446c-0, Sec. 3.051(a).)
199-16 Sec. 52.002. AUTHORITY TO REGULATE. (a) To carry out the
199-17 public policy stated by Section 52.001 and to regulate rates,
199-18 operations, and services so that the rates are just, fair, and
199-19 reasonable and the services are adequate and efficient, the
199-20 commission has exclusive original jurisdiction over the business
199-21 and property of a telecommunications utility in this state subject
199-22 to the limitations imposed by this title.
199-23 (b) The commission's regulatory authority as to a
199-24 telecommunications utility other than a public utility is only as
199-25 prescribed by this title. (V.A.C.S. Art. 1446c-0, Secs. 3.002(9)
199-26 (part), 3.051(b) (part).)
199-27 Sec. 52.003. COOPERATION WITH OTHER REGULATORY AUTHORITIES.
200-1 In regulating the rates, operations, and services of a
200-2 telecommunications utility providing service in a municipality
200-3 located on the state line adjacent to a municipality in an
200-4 adjoining state, the commission may cooperate with the utility
200-5 regulatory commission of the adjoining state or of the federal
200-6 government and may hold a joint hearing or make a joint
200-7 investigation with that commission. (V.A.C.S. Art. 1446c-0, Sec.
200-8 3.051(b) (part).)
200-9 Sec. 52.004. COMMISSION MAY ESTABLISH SEPARATE MARKETS. (a)
200-10 The commission may establish separate telecommunications markets in
200-11 this state if the commission determines that the public interest
200-12 will be served. The commission shall hold hearings and require
200-13 evidence as necessary to:
200-14 (1) carry out the public purpose of this chapter; and
200-15 (2) determine the need and effect of establishing
200-16 separate markets.
200-17 (b) A provider determined to be a dominant carrier as to a
200-18 particular telecommunications service in a market may not be
200-19 presumed to be a dominant carrier of a different telecommunications
200-20 service in that market. (V.A.C.S. Art. 1446c-0, Sec. 3.002(2)
200-21 (part).)
200-22 Sec. 52.005. MINIMUM REQUIREMENTS FOR DOMINANT CARRIERS.
200-23 The commission shall impose as minimum requirements for a dominant
200-24 carrier the same requirements imposed by Subchapter C, except
200-25 Section 52.107. (V.A.C.S. Art. 1446c-0, Sec. 3.051(q) (part).)
200-26 Sec. 52.006. COMMISSION TO REPORT TO LEGISLATURE. (a)
200-27 Before January 15 of each odd-numbered year, the commission shall
201-1 report to the legislature on:
201-2 (1) the scope of competition in regulated
201-3 telecommunications markets; and
201-4 (2) the effect of competition on customers in both
201-5 competitive and noncompetitive markets, with a specific focus on
201-6 rural markets.
201-7 (b) The report shall include:
201-8 (1) an assessment of the effect of competition on the
201-9 rates and availability of telecommunications services for
201-10 residential and business customers;
201-11 (2) a summary of commission action over the preceding
201-12 two years that reflects changes in the scope of competition in
201-13 regulated telecommunications markets; and
201-14 (3) recommendations for legislation the commission
201-15 determines is appropriate to promote the public interest in the
201-16 context of a partially competitive telecommunications market.
201-17 (c) The commission, in its assessment under Subsection
201-18 (b)(1), shall specifically address any effects on universal
201-19 service.
201-20 (d) A telecommunications utility shall cooperate with the
201-21 commission as necessary for the commission to satisfy the
201-22 requirements of this section. (V.A.C.S. Art. 1446c-0, Secs.
201-23 3.051(k), (q) (part).)
201-24 (Sections 52.007-52.050 reserved for expansion)
201-25 SUBCHAPTER B. INCUMBENT LOCAL EXCHANGE COMPANIES
201-26 Sec. 52.051. POLICY. In adopting rules and establishing
201-27 procedures under this subchapter, the commission shall:
202-1 (1) attempt to balance the public interest in a
202-2 technologically advanced telecommunications system providing a wide
202-3 range of new and innovative services with traditional regulatory
202-4 concerns for:
202-5 (A) preserving universal service;
202-6 (B) prohibiting anticompetitive practices; and
202-7 (C) preventing the subsidization of competitive
202-8 services with revenues from regulated monopoly services; and
202-9 (2) incorporate an appropriate mix of regulatory and
202-10 market mechanisms reflecting the level and nature of competition in
202-11 the marketplace. (V.A.C.S. Art. 1446c-0, Sec. 3.051(g) (part).)
202-12 Sec. 52.052. APPLICABILITY. This subchapter does not apply
202-13 to basic local telecommunications service, including local measured
202-14 service. (V.A.C.S. Art. 1446c-0, Sec. 3.051(j) (part).)
202-15 Sec. 52.053. CERTAIN RATES PROHIBITED. A rate established
202-16 under this subchapter may not be:
202-17 (1) unreasonably preferential, prejudicial, or
202-18 discriminatory;
202-19 (2) subsidized either directly or indirectly by a
202-20 regulated monopoly service; or
202-21 (3) predatory or anticompetitive. (V.A.C.S.
202-22 Art. 1446c-0, Sec. 3.051(g) (part).)
202-23 Sec. 52.054. RULES AND PROCEDURES FOR INCUMBENT LOCAL
202-24 EXCHANGE COMPANIES. (a) To carry out the public policy stated in
202-25 Section 52.001, notwithstanding any other provision of this title,
202-26 the commission may adopt rules and establish procedures applicable
202-27 to incumbent local exchange companies to:
203-1 (1) determine the level of competition in a specific
203-2 telecommunications market or submarket; and
203-3 (2) provide appropriate regulatory treatment to allow
203-4 an incumbent local exchange company to respond to significant
203-5 competitive challenges.
203-6 (b) This section does not change the burden of proof on an
203-7 incumbent local exchange company under Sections 53.003, 53.006,
203-8 53.051, 53.052, 53.053, 53.054, 53.055, 53.057, 53.058, 53.060, and
203-9 53.062. (V.A.C.S. Art. 1446c-0, Sec. 3.051(e)(1).)
203-10 Sec. 52.055. HEARING TO DETERMINE LEVEL OF COMPETITION. In
203-11 determining the level of competition in a specific market or
203-12 submarket, the commission shall hold an evidentiary hearing to
203-13 consider:
203-14 (1) the number and size of telecommunications
203-15 utilities or other persons providing the same, equivalent, or
203-16 substitutable service;
203-17 (2) the extent to which the same, equivalent, or
203-18 substitutable service is available;
203-19 (3) the ability of a customer to obtain the same,
203-20 equivalent, or substitutable service at comparable rates and terms;
203-21 (4) the ability of a telecommunications utility or
203-22 other person to make the same, equivalent, or substitutable service
203-23 readily available at comparable rates and terms;
203-24 (5) the existence of a significant barrier to the
203-25 entry or exit of a provider of the service; and
203-26 (6) other relevant information the commission
203-27 determines is appropriate. (V.A.C.S. Art. 1446c-0, Sec.
204-1 3.051(e)(2).)
204-2 Sec. 52.056. SPECIFICALLY AUTHORIZED REGULATORY TREATMENTS.
204-3 The regulatory treatments the commission may implement under
204-4 Section 52.054 include:
204-5 (1) approval of a range of rates for a specific
204-6 service;
204-7 (2) approval of a customer-specific contract for a
204-8 specific service; and
204-9 (3) the detariffing of rates. (V.A.C.S. Art. 1446c-0,
204-10 Sec. 3.051(e)(3) (part).)
204-11 Sec. 52.057. CUSTOMER-SPECIFIC CONTRACTS. (a) The
204-12 commission shall approve a customer-specific contract that meets
204-13 the requirements of Subsection (b) to provide:
204-14 (1) central office based PBX-type services for a
204-15 system of 200 stations or more;
204-16 (2) billing and collection services;
204-17 (3) high-speed private line services of 1.544 megabits
204-18 or greater; or
204-19 (4) customized services.
204-20 (b) The commission shall approve a contract for a service
204-21 described by Subsection (a) if:
204-22 (1) the contract is filed before the 30th day before
204-23 the date the service contracted for is initiated;
204-24 (2) the contract is accompanied by an affidavit from
204-25 the person or entity contracting for the service stating that the
204-26 person or entity considered acquiring the same, equivalent, or
204-27 substitutable service by bid or quotation from a source other than
205-1 the incumbent local exchange company;
205-2 (3) the incumbent local exchange company recovers the
205-3 appropriate costs of providing the service; and
205-4 (4) approval of the contract is in the public
205-5 interest.
205-6 (c) The commission shall approve or deny a contract under
205-7 this section not later than the 30th day after the date the
205-8 contract is filed, unless the commission for good cause extends the
205-9 effective date for an additional 35 days.
205-10 (d) An incumbent local exchange company may not price
205-11 similar services provided under contracts governed by this section
205-12 in an unreasonably discriminatory manner.
205-13 (e) This section and Section 52.056(2) do not apply to:
205-14 (1) message telecommunications service;
205-15 (2) switched access service for an interexchange
205-16 carrier; or
205-17 (3) wide area telecommunications service.
205-18 (f) In this section, "similar services" means services that:
205-19 (1) are provided at or near the same point in time;
205-20 (2) have the same characteristics; and
205-21 (3) are provided under the same or similar
205-22 circumstances. (V.A.C.S. Art. 1446c-0, Secs. 3.051(e)(3) (part),
205-23 (j) (part).)
205-24 Sec. 52.058. NEW OR EXPERIMENTAL SERVICES OR PROMOTIONAL
205-25 RATES. (a) To encourage the rapid introduction of new or
205-26 experimental services or promotional rates, the commission shall
205-27 adopt rules and establish procedures that allow:
206-1 (1) the expedited introduction of new or experimental
206-2 services or promotional rates;
206-3 (2) the establishment and adjustment of rates; and
206-4 (3) the withdrawal of those services or promotional
206-5 rates.
206-6 (b) The rules and procedures described by Subsection (a)
206-7 must include rules and procedures to allow the governing body of a
206-8 municipality served by an incumbent local exchange company having
206-9 more than 500,000 access lines in this state to make requests to
206-10 the commission for new or experimental services or promotional
206-11 rates.
206-12 (c) A rate established or adjusted at the request of a
206-13 municipality may not:
206-14 (1) result in higher rates for ratepayers outside the
206-15 municipal boundaries; or
206-16 (2) include a rate for incumbent local exchange
206-17 company interexchange service or interexchange carrier access
206-18 service. (V.A.C.S. Art. 1446c-0, Sec. 3.051(f).)
206-19 Sec. 52.059. RATES TO COVER APPROPRIATE COSTS. (a) The
206-20 commission by rule shall adopt standards necessary to ensure that a
206-21 rate established under this subchapter covers appropriate costs as
206-22 determined by the commission.
206-23 (b) Until standards are set under Subsection (a), the
206-24 commission shall use a costing methodology that is in the public
206-25 interest to determine whether a rate established under this
206-26 subchapter covers appropriate costs. (V.A.C.S. Art. 1446c-0, Sec.
206-27 3.051(h).)
207-1 Sec. 52.060. ADMINISTRATIVE FEE OR ASSESSMENT. The
207-2 commission may prescribe and collect a fee or assessment from local
207-3 exchange companies necessary to recover the cost to the commission
207-4 and to the office of activities carried out and services provided
207-5 under this subchapter and Section 52.006. (V.A.C.S. Art. 1446c-0,
207-6 Sec. 3.051(i).)
207-7 (Sections 52.061-52.100 reserved for expansion)
207-8 SUBCHAPTER C. TELECOMMUNICATIONS UTILITIES
207-9 THAT ARE NOT DOMINANT CARRIERS
207-10 Sec. 52.101. APPLICABILITY. This subchapter applies only to
207-11 a telecommunications utility that is not:
207-12 (1) a dominant carrier; or
207-13 (2) the holder of a certificate of operating authority
207-14 or a service provider certificate of operating authority.
207-15 (V.A.C.S. Art. 1446c-0, Sec. 3.051(c) (part).)
207-16 Sec. 52.102. LIMITED REGULATORY AUTHORITY. Except as
207-17 otherwise provided by this subchapter and Subchapter D, Chapter 55,
207-18 the commission has only the following jurisdiction over a
207-19 telecommunications utility subject to this subchapter:
207-20 (1) to require registration under Section 52.103;
207-21 (2) to conduct an investigation under Section 52.104;
207-22 (3) to require the filing of reports as the commission
207-23 periodically directs;
207-24 (4) to require the maintenance of statewide average
207-25 rates or prices of telecommunications service;
207-26 (5) to require access to telecommunications service
207-27 under Section 52.105; and
208-1 (6) to require the quality of telecommunications
208-2 service provided to be adequate under Section 52.106. (V.A.C.S.
208-3 Art. 1446c-0, Sec. 3.051(c) (part).)
208-4 Sec. 52.103. REGISTRATION REQUIRED. (a) A
208-5 telecommunications utility shall register with the commission not
208-6 later than the 30th day after the date the utility commences
208-7 service to the public.
208-8 (b) A telecommunications utility that registers under
208-9 Subsection (a) shall file with the commission a description of:
208-10 (1) the location and type of service provided;
208-11 (2) the price to the public of that service; and
208-12 (3) other registration information the commission
208-13 directs.
208-14 (c) An interexchange telecommunications utility doing
208-15 business in this state shall maintain on file with the commission
208-16 tariffs or lists governing the terms of providing its services.
208-17 (V.A.C.S. Art. 1446c-0, Sec. 3.051(d).)
208-18 Sec. 52.104. COMMISSION MAY INVESTIGATE. (a) The
208-19 commission may investigate as necessary to determine the effect and
208-20 scope of competition in the telecommunications industry. The
208-21 investigation may include:
208-22 (1) identifying dominant carriers in the local
208-23 telecommunications and intraLATA interexchange telecommunications
208-24 industry; and
208-25 (2) defining the telecommunications market or markets.
208-26 (b) In conducting an investigation under this section, the
208-27 commission may:
209-1 (1) hold a hearing;
209-2 (2) issue a subpoena to compel the attendance of a
209-3 witness or the production of a document; and
209-4 (3) make findings of fact and decisions to administer
209-5 this title or a rule, order, or other action of the commission.
209-6 (V.A.C.S. Art. 1446c-0, Sec. 3.051(c) (part).)
209-7 Sec. 52.105. ACCESS TO CERTAIN SERVICES REQUIRED. (a) The
209-8 commission may require that each local exchange area have access to
209-9 local and interexchange telecommunications service, except as
209-10 otherwise provided by this section.
209-11 (b) The commission shall allow a telecommunications utility
209-12 to discontinue service to a local exchange area if:
209-13 (1) comparable service is available in the area; and
209-14 (2) discontinuing the service is not contrary to the
209-15 public interest.
209-16 (c) This section does not authorize the commission to
209-17 require a telecommunications utility to initiate service to a local
209-18 exchange area to which the telecommunications utility:
209-19 (1) did not provide service during the preceding
209-20 12-month period; and
209-21 (2) has not provided service previously for a
209-22 cumulative period of at least one year. (V.A.C.S. Art. 1446c-0,
209-23 Sec. 3.051(c) (part).)
209-24 Sec. 52.106. QUALITY OF SERVICE REQUIRED. The commission
209-25 may require the quality of telecommunications service provided in a
209-26 local exchange in which the commission determines that service has
209-27 deteriorated and become unreliable to be adequate to protect the
210-1 public interest and the interests of customers of that exchange.
210-2 (V.A.C.S. Art. 1446c-0, Sec. 3.051(c) (part).)
210-3 Sec. 52.107. PREDATORY PRICING. (a) The commission may
210-4 enter an order necessary to protect the public interest if the
210-5 commission finds by a preponderance of the evidence after notice
210-6 and hearing that an interexchange telecommunications utility has:
210-7 (1) engaged in predatory pricing; or
210-8 (2) attempted to engage in predatory pricing.
210-9 (b) A hearing held by the commission under Subsection (a)
210-10 must be based on a complaint from another interexchange
210-11 telecommunications utility.
210-12 (c) An order entered under Subsection (a) may include the
210-13 imposition on a specific service of the commission's full
210-14 regulatory authority under:
210-15 (1) this chapter;
210-16 (2) Chapters 14, 15, 51, 53, and 54; and
210-17 (3) Subchapters A, D, and H, Chapter 55.
210-18 (d) This section applies only to an interexchange
210-19 telecommunications utility. (V.A.C.S. Art. 1446c-0, Sec.
210-20 3.051(l).)
210-21 Sec. 52.108. OTHER PROHIBITED PRACTICES. The commission may
210-22 enter any order necessary to protect the public interest if the
210-23 commission finds after notice and hearing that a telecommunications
210-24 utility has:
210-25 (1) failed to maintain statewide average rates;
210-26 (2) abandoned interexchange message telecommunications
210-27 service to a local exchange area in a manner contrary to the public
211-1 interest; or
211-2 (3) engaged in a pattern of preferential or
211-3 discriminatory activities prohibited by Section 53.003(5), 55.005,
211-4 or 55.006. (V.A.C.S. Art. 1446c-0, Secs. 3.051(m) (part), (q)
211-5 (part).)
211-6 Sec. 52.109. AVAILABILITY OF SERVICE. (a) The commission
211-7 may require a telecommunications utility that provides a service to
211-8 make that service available in an exchange served by the
211-9 telecommunications utility within a reasonable time after receipt
211-10 of a bona fide request for the service in that exchange.
211-11 (b) A telecommunications utility may not be required to
211-12 extend a service to an area if:
211-13 (1) the local exchange company is unable to provide
211-14 the required access or other service; or
211-15 (2) extending the service would, after consideration
211-16 of the public interest to be served, impose unreasonable costs on
211-17 or require unreasonable investments by the telecommunications
211-18 utility.
211-19 (c) The commission may require from a telecommunications
211-20 utility or a local exchange company information necessary to
211-21 enforce this section. (V.A.C.S. Art. 1446c-0, Secs. 3.051(o), (q)
211-22 (part).)
211-23 Sec. 52.110. BURDEN OF PROOF. (a) In a proceeding before
211-24 the commission in which it is alleged that a telecommunications
211-25 utility engaged in conduct in violation of Section 52.107, 52.108,
211-26 or 52.109, the burden of proof is on:
211-27 (1) a telecommunications utility complaining of
212-1 conduct committed against it in violation of this subchapter; or
212-2 (2) except as provided by Subsection (b), the
212-3 responding telecommunications utility if the proceedings are:
212-4 (A) brought by a customer or customer
212-5 representative who is not a telecommunications utility; or
212-6 (B) initiated by the commission.
212-7 (b) The commission may impose the burden of proof on the
212-8 complaining party in a proceeding described by Subsection (a)(2) if
212-9 the commission determines that placing the burden of proof on the
212-10 complaining party is in the public interest. (V.A.C.S.
212-11 Art. 1446c-0, Secs. 3.051(n), (q) (part).)
212-12 Sec. 52.111. COMMISSION MAY EXEMPT. The commission may
212-13 exempt from a requirement of this subchapter a telecommunications
212-14 utility that:
212-15 (1) does not have a significant effect on the public
212-16 interest, as determined by the commission; or
212-17 (2) relies solely on the facilities of others to
212-18 complete long distance calls, if the commission determines that the
212-19 exemption is in the public interest. (V.A.C.S. Art. 1446c-0, Secs.
212-20 3.051(p), (q) (part).)
212-21 (Sections 52.112-52.150 reserved for expansion)
212-22 SUBCHAPTER D. CERTIFICATE HOLDERS
212-23 Sec. 52.151. APPLICABILITY. This subchapter applies only to
212-24 a telecommunications utility that holds a certificate of operating
212-25 authority or a service provider certificate of operating authority.
212-26 (V.A.C.S. Art. 1446c-0, Secs. 3.051(r) (part), (s)(1) (part),
212-27 (s)(2) (part).)
213-1 Sec. 52.152. LIMITED REGULATORY AUTHORITY. Except as
213-2 otherwise specifically provided by this title, the commission has
213-3 only the following authority over a telecommunications utility
213-4 subject to this subchapter:
213-5 (1) to enforce this title under Subchapter B, Chapter
213-6 15;
213-7 (2) to assert jurisdiction over a specific service
213-8 under Subchapter E;
213-9 (3) to require co-carriage reciprocity; and
213-10 (4) to regulate condemnation and building access.
213-11 (V.A.C.S. Art. 1446c-0, Sec. 3.051(s)(1).)
213-12 Sec. 52.153. BOOKS AND RECORDS. The commission may
213-13 prescribe forms of books, accounts, records, and memoranda to be
213-14 kept by a telecommunications utility, but only as necessary to
213-15 enforce the limited jurisdiction over those companies that this
213-16 title provides to the commission. (V.A.C.S. Art. 1446c-0, Sec.
213-17 3.051(r).)
213-18 Sec. 52.154. COMMISSION MAY NOT OVERBURDEN. The commission
213-19 may not, by a rule or regulatory practice adopted under this
213-20 chapter, impose on a telecommunications utility a greater
213-21 regulatory burden than is imposed on a holder of a certificate of
213-22 convenience and necessity serving the same area. (V.A.C.S.
213-23 Art. 1446c-0, Sec. 3.051(s)(2).)
213-24 (Sections 52.155-52.200 reserved for expansion)
213-25 SUBCHAPTER E. DEREGULATION OF SERVICE
213-26 Sec. 52.201. DEREGULATION OF SERVICE. Notwithstanding any
213-27 other provision of this title, the commission may deregulate the
214-1 price of a service in a geographic market if, after notice and
214-2 hearing, the commission determines that:
214-3 (1) the incumbent local exchange company is not
214-4 dominant for the service in that geographic market; or
214-5 (2) the holder of a certificate of operating authority
214-6 who is a dominant carrier is no longer dominant for the service in
214-7 that geographic market. (V.A.C.S. Art. 1446c-0, Sec. 3.2572(a)
214-8 (part).)
214-9 Sec. 52.202. DETERMINATION OF GEOGRAPHIC MARKET. In
214-10 determining the geographic market under Section 52.201, the
214-11 commission shall consider the economic and technical conditions of
214-12 the market. (V.A.C.S. Art. 1446c-0, Sec. 3.2572(a) (part).)
214-13 Sec. 52.203. MARKET POWER TEST. (a) To determine whether an
214-14 incumbent local exchange company or holder of a certificate of
214-15 operating authority who is a dominant carrier is no longer dominant
214-16 for a service in a geographic market, the commission must find
214-17 that:
214-18 (1) there is an effective competitive alternative; and
214-19 (2) the incumbent local exchange company or
214-20 certificate holder does not have market power sufficient to
214-21 control, in a manner that is adverse to the public interest, the
214-22 price of the service in the geographic area.
214-23 (b) To determine whether the incumbent local exchange
214-24 company or certificate holder is dominant for a service in the
214-25 geographic area, the commission shall consider:
214-26 (1) the number and size of telecommunications
214-27 utilities or other persons who provide the same, equivalent, or
215-1 substitutable service in the relevant market;
215-2 (2) the extent to which the service is available in
215-3 the relevant market;
215-4 (3) the ability of customers in the relevant market to
215-5 obtain the same, equivalent, or substitutable service at comparable
215-6 rates and on comparable terms;
215-7 (4) the ability of a telecommunications utility or
215-8 other person to make the same, equivalent, or substitutable service
215-9 readily available in the relevant market at comparable rates and on
215-10 comparable terms;
215-11 (5) the proportion of the relevant market that is
215-12 being provided the service by a telecommunications utility other
215-13 than the incumbent local exchange company or holder of a
215-14 certificate of operating authority who is a dominant carrier; and
215-15 (6) other relevant information the commission
215-16 considers necessary. (V.A.C.S. Art. 1446c-0, Secs. 3.2572(b),
215-17 (c).)
215-18 Sec. 52.204. RATE FOR DEREGULATED SERVICE. If the price of
215-19 a service in a geographic market is deregulated under this
215-20 subchapter, the incumbent local exchange company or holder of a
215-21 certificate of operating authority may set the rate for the service
215-22 at any level higher than the service's long run incremental cost.
215-23 (V.A.C.S. Art. 1446c-0, Sec. 3.2572(a) (part).)
215-24 Sec. 52.205. INVESTIGATION OF COMPETITION. (a) On request
215-25 of an incumbent local exchange company or holder of a certificate
215-26 of operating authority who is a dominant carrier made in
215-27 conjunction with an application under this subchapter, the
216-1 commission shall investigate to determine the effect and scope of
216-2 competition in the geographic and service markets at issue.
216-3 (b) The commission has the power necessary and convenient to
216-4 conduct the investigation. In conducting an investigation, the
216-5 commission may:
216-6 (1) hold a hearing;
216-7 (2) issue a subpoena to compel the attendance of a
216-8 witness and the production of a document; and
216-9 (3) make findings of fact and decisions with respect
216-10 to the markets.
216-11 (c) A party to a proceeding may use, in an application for
216-12 pricing flexibility, the results of an investigation conducted
216-13 under this section. (V.A.C.S. Art. 1446c-0, Secs. 3.2572(e), (f).)
216-14 Sec. 52.206. REREGULATION OF MARKET. The commission, on its
216-15 own motion or on a complaint that the commission considers to have
216-16 merit, may assert regulation over a service in a geographic market
216-17 if:
216-18 (1) the incumbent local exchange company or holder of
216-19 a certificate of operating authority who was previously a dominant
216-20 carrier is found to again be dominant for the service in that
216-21 geographic market; or
216-22 (2) the provider of services under a certificate of
216-23 operating authority or service provider certificate of operating
216-24 authority is found to be dominant for the service in that
216-25 geographic market. (V.A.C.S. Art. 1446c-0, Sec. 3.2572(d).)
216-26 Sec. 52.207. REPORTS; CONFIDENTIAL INFORMATION. (a) In
216-27 conjunction with the commission's authority to collect and compile
217-1 information, the commission may collect a report from a holder of
217-2 a:
217-3 (1) certificate of operating authority; or
217-4 (2) service provider certificate of operating
217-5 authority.
217-6 (b) The commission shall maintain the confidentiality of
217-7 information contained in a report collected under this section that
217-8 is claimed to be confidential for competitive purposes. The
217-9 confidential information is exempt from disclosure under Chapter
217-10 552, Government Code.
217-11 (c) To protect the confidential information, the commission
217-12 shall aggregate the information to the maximum extent possible
217-13 considering the purpose of the proceeding. (V.A.C.S. Art. 1446c-0,
217-14 Sec. 3.2572(g).)
217-15 (Sections 52.208-52.250 reserved for expansion)
217-16 SUBCHAPTER F. REQUIRED REPORTS AND FILINGS; RECORDS
217-17 Sec. 52.251. TARIFF FILINGS. (a) A public utility shall
217-18 file with the commission a tariff showing each rate that is:
217-19 (1) subject to the commission's jurisdiction; and
217-20 (2) in effect for a utility service, product, or
217-21 commodity offered by the utility.
217-22 (b) The public utility shall file as a part of the tariff
217-23 required under Subsection (a) each rule that relates to or affects:
217-24 (1) a rate of the utility; or
217-25 (2) a utility service, product, or commodity furnished
217-26 by the utility. (V.A.C.S. Art. 1446c-0, Sec. 3.154.)
217-27 Sec. 52.252. DEPRECIATION ACCOUNT. The commission shall
218-1 require each public utility to carry a proper and adequate
218-2 depreciation account in accordance with:
218-3 (1) the rates and methods prescribed by the commission
218-4 under Section 53.056; and
218-5 (2) any other rule the commission adopts. (V.A.C.S.
218-6 Art. 1446c-0, Sec. 3.151(a) (part).)
218-7 Sec. 52.253. ACCOUNTS OF PROFITS AND LOSSES. A public
218-8 utility shall keep separate accounts showing profits or losses from
218-9 the sale or lease of merchandise, including an appliance, a
218-10 fixture, or equipment. (V.A.C.S. Art. 1446c-0, Sec. 3.151(b)
218-11 (part).)
218-12 Sec. 52.254. REPORT OF CERTAIN EXPENSES. The commission may
218-13 require a public utility to annually report the utility's
218-14 expenditures for:
218-15 (1) business gifts and entertainment; and
218-16 (2) advertising or public relations, including
218-17 expenditures for institutional and consumption-inducing purposes.
218-18 (V.A.C.S. Art. 1446c-0, Sec. 3.152(a).)
218-19 Sec. 52.255. AVAILABILITY OF RECORDS. Notwithstanding
218-20 Section 14.152, a book, account, record, or memorandum of a public
218-21 utility may be removed from this state if the book, account,
218-22 record, or memorandum is returned to this state for any commission
218-23 inspection authorized by this title. (V.A.C.S. Art. 1446c-0, Sec.
218-24 3.1545.)
218-25 CHAPTER 53. RATES
218-26 SUBCHAPTER A. GENERAL PROVISIONS
218-27 Sec. 53.001. AUTHORIZATION TO ESTABLISH AND REGULATE
219-1 RATES
219-2 Sec. 53.002. COMPLIANCE WITH TITLE
219-3 Sec. 53.003. JUST AND REASONABLE RATES
219-4 Sec. 53.004. EQUALITY OF RATES AND SERVICES
219-5 Sec. 53.005. RATES FOR AREA NOT IN MUNICIPALITY
219-6 Sec. 53.006. BURDEN OF PROOF
219-7 Sec. 53.007. LIMIT ON RECONNECTION FEE
219-8 (Sections 53.008-53.050 reserved for expansion)
219-9 SUBCHAPTER B. COMPUTATION OF RATES
219-10 Sec. 53.051. ESTABLISHING OVERALL REVENUES
219-11 Sec. 53.052. ESTABLISHING REASONABLE RETURN
219-12 Sec. 53.053. COMPONENTS OF INVESTED CAPITAL
219-13 Sec. 53.054. CONSTRUCTION WORK IN PROGRESS
219-14 Sec. 53.055. SEPARATIONS AND ALLOCATIONS
219-15 Sec. 53.056. DEPRECIATION, AMORTIZATION, AND DEPLETION
219-16 Sec. 53.057. NET INCOME; DETERMINATION OF REVENUES AND
219-17 EXPENSES
219-18 Sec. 53.058. CONSIDERATION OF PAYMENT TO AFFILIATE
219-19 Sec. 53.059. TREATMENT OF CERTAIN TAX BENEFITS
219-20 Sec. 53.060. COMPUTATION OF INCOME TAX; CONSOLIDATED RETURN
219-21 Sec. 53.061. ALLOWANCE OF CERTAIN
219-22 EXPENSES
219-23 Sec. 53.062. CONSIDERATION OF CERTAIN EXPENSES
219-24 Sec. 53.063. CONSIDERATION OF PROFIT OR LOSS FROM
219-25 SALE OR LEASE OF MERCHANDISE
219-26 Sec. 53.064. SELF-INSURANCE
219-27 Sec. 53.065. INTEREXCHANGE SERVICES; RATES OF
220-1 INCUMBENT LOCAL EXCHANGE COMPANY
220-2 (Sections 53.066-53.100 reserved for expansion)
220-3 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE
220-4 CHANGE PROPOSED BY UTILITY
220-5 Sec. 53.101. DEFINITION
220-6 Sec. 53.102. STATEMENT OF INTENT TO CHANGE RATES
220-7 Sec. 53.103. NOTICE OF INTENT TO CHANGE RATES
220-8 Sec. 53.104. EARLY EFFECTIVE DATE OF RATE CHANGE
220-9 Sec. 53.105. DETERMINATION OF PROPRIETY OF CHANGE; HEARING
220-10 Sec. 53.106. REGIONAL HEARING
220-11 Sec. 53.107. PREFERENCE TO HEARING
220-12 Sec. 53.108. RATE SUSPENSION; DEADLINE
220-13 Sec. 53.109. TEMPORARY RATES
220-14 Sec. 53.110. BONDED RATES
220-15 Sec. 53.111. ESTABLISHMENT OF FINAL RATES
220-16 Sec. 53.112. EXPIRATION OF SUSPENSION; EFFECT ON CERTAIN
220-17 RATES
220-18 Sec. 53.113. FCC-APPROVED TARIFFS FOR SWITCHED-ACCESS
220-19 SERVICE
220-20 (Sections 53.114-53.150 reserved for expansion)
220-21 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
220-22 Sec. 53.151. UNREASONABLE OR VIOLATIVE EXISTING RATES
220-23 Sec. 53.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
220-24 ANOTHER SOURCE
220-25 (Sections 53.153-53.200 reserved for expansion)
220-26 SUBCHAPTER E. COST RECOVERY AND RATE ADJUSTMENTS
220-27 Sec. 53.201. AUTOMATIC ADJUSTMENT FOR CHANGE IN COSTS
221-1 PROHIBITED
221-2 Sec. 53.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY
221-3 (Sections 53.203-53.250 reserved for expansion)
221-4 SUBCHAPTER F. REGULATORY POLICY FOR SMALL INCUMBENT LOCAL
221-5 EXCHANGE COMPANIES AND COOPERATIVES
221-6 Sec. 53.251. GENERAL POLICY
221-7 Sec. 53.252. ADOPTION OF CERTAIN POLICIES
221-8 (Sections 53.253-53.300 reserved for expansion)
221-9 SUBCHAPTER G. SPECIAL PROCEDURES FOR SMALL
221-10 LOCAL EXCHANGE COMPANIES AND COOPERATIVES
221-11 Sec. 53.301. DEFINITION
221-12 Sec. 53.302. APPLICABILITY
221-13 Sec. 53.303. PROVISIONS NOT EXCLUSIVE
221-14 Sec. 53.304. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE MINOR
221-15 CHANGES
221-16 Sec. 53.305. NOTICE TO AFFECTED CUSTOMERS
221-17 Sec. 53.306. COMMISSION REVIEW OF PROPOSED CHANGE
221-18 Sec. 53.307. COMPLIANCE WITH PRINCIPLES; REDUCED RATES
221-19 Sec. 53.308. FEES AND ASSESSMENTS
221-20 (Sections 53.309-53.350 reserved for expansion)
221-21 SUBCHAPTER H. PARTIAL DEREGULATION AVAILABLE TO
221-22 CERTAIN COOPERATIVE CORPORATIONS
221-23 Sec. 53.351. PROVISIONS NOT EXCLUSIVE
221-24 Sec. 53.352. PARTIAL DEREGULATION BY BALLOT
221-25 Sec. 53.353. VOTING PROCEDURES
221-26 Sec. 53.354. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE CERTAIN
221-27 CHANGES
222-1 Sec. 53.355. STATEMENT OF INTENT
222-2 Sec. 53.356. NOTICE TO AFFECTED PERSONS
222-3 Sec. 53.357. FILING OF AFFIDAVITS VERIFYING NOTICE
222-4 Sec. 53.358. COMMISSION REVIEW OF PROPOSED ACTION
222-5 Sec. 53.359. REVERSAL OF DEREGULATION BY BALLOT
222-6 CHAPTER 53. RATES
222-7 SUBCHAPTER A. GENERAL PROVISIONS
222-8 Sec. 53.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES.
222-9 (a) Except as otherwise provided by this title, the commission may
222-10 establish and regulate rates of a public utility and may adopt
222-11 rules for determining:
222-12 (1) the classification of customers and services; and
222-13 (2) the applicability of rates.
222-14 (b) A rule or order of the commission may not conflict with
222-15 a ruling of a federal regulatory body. (V.A.C.S. Art. 1446c-0,
222-16 Sec. 3.201.)
222-17 Sec. 53.002. COMPLIANCE WITH TITLE. A utility may not
222-18 charge or receive a rate for utility service except as provided by
222-19 this title. (V.A.C.S. Art. 1446c-0, Sec. 3.153 (part).)
222-20 Sec. 53.003. JUST AND REASONABLE RATES. (a) The commission
222-21 shall ensure that each rate a public utility or two or more public
222-22 utilities jointly make, demand, or receive is just and reasonable.
222-23 (b) A rate may not be unreasonably preferential,
222-24 prejudicial, or discriminatory but must be sufficient, equitable,
222-25 and consistent in application to each class of consumer.
222-26 (c) A public utility may not:
222-27 (1) grant an unreasonable preference or advantage
223-1 concerning rates to a person in a classification;
223-2 (2) subject a person in a classification to an
223-3 unreasonable prejudice or disadvantage concerning rates; or
223-4 (3) establish or maintain an unreasonable difference
223-5 concerning rates between localities or between classes of service.
223-6 (d) In establishing a public utility's rates, the commission
223-7 may treat as a single class two or more municipalities that a
223-8 public utility serves if the commission considers that treatment to
223-9 be appropriate. (V.A.C.S. Art. 1446c-0, Secs. 3.202 (part), 3.215
223-10 (part).)
223-11 Sec. 53.004. EQUALITY OF RATES AND SERVICES. (a) A public
223-12 utility may not directly or indirectly charge, demand, or receive
223-13 from a person a greater or lesser compensation for a service
223-14 provided or to be provided by the utility than the compensation
223-15 prescribed by the applicable tariff filed under Section 52.251.
223-16 (b) A person may not knowingly receive or accept a service
223-17 from a public utility for a compensation greater or less than the
223-18 compensation prescribed by the tariff.
223-19 (c) This title does not prevent a cooperative corporation
223-20 from returning to its members net earnings resulting from its
223-21 operations in proportion to the members' purchases from or through
223-22 the corporation. (V.A.C.S. Art. 1446c-0, Sec. 3.216.)
223-23 Sec. 53.005. RATES FOR AREA NOT IN MUNICIPALITY. Without
223-24 the approval of the commission, a public utility's rates for an
223-25 area not in a municipality may not exceed 115 percent of the
223-26 average of all rates for similar services for all municipalities
223-27 served by the same utility in the same county as that area.
224-1 (V.A.C.S. Art. 1446c-0, Sec. 3.214.)
224-2 Sec. 53.006. BURDEN OF PROOF. (a) In a proceeding
224-3 involving a proposed rate change, the public utility has the burden
224-4 of proving that:
224-5 (1) the rate change is just and reasonable, if the
224-6 utility proposes the change; or
224-7 (2) an existing rate is just and reasonable, if the
224-8 proposal is to reduce the rate.
224-9 (b) In a proceeding in which the rate of an incumbent local
224-10 exchange company is in issue, the incumbent local exchange company
224-11 has the burden of proving that the rate is just and reasonable.
224-12 (V.A.C.S. Art. 1446c-0, Sec. 3.204.)
224-13 Sec. 53.007. LIMIT ON RECONNECTION FEE. The commission
224-14 shall establish a reasonable limit on the amount that a local
224-15 exchange company may charge a customer for changing the location at
224-16 which the customer receives service. (V.A.C.S. Art. 1446c-0, Sec.
224-17 3.1556.)
224-18 (Sections 53.008-53.050 reserved for expansion)
224-19 SUBCHAPTER B. COMPUTATION OF RATES
224-20 Sec. 53.051. ESTABLISHING OVERALL REVENUES. In establishing
224-21 a public utility's rates, the commission shall establish the
224-22 utility's overall revenues at an amount that will permit the
224-23 utility a reasonable opportunity to earn a reasonable return on the
224-24 utility's invested capital used and useful in providing service to
224-25 the public in excess of the utility's reasonable and necessary
224-26 operating expenses. (V.A.C.S. Art. 1446c-0, Sec. 3.203(a).)
224-27 Sec. 53.052. ESTABLISHING REASONABLE RETURN. In
225-1 establishing a reasonable return on invested capital, the
225-2 commission shall consider applicable factors, including:
225-3 (1) the quality of the utility's services;
225-4 (2) the efficiency of the utility's operations; and
225-5 (3) the quality of the utility's management.
225-6 (V.A.C.S. Art. 1446c-0, Sec. 3.203(b).)
225-7 Sec. 53.053. COMPONENTS OF INVESTED CAPITAL. (a) Public
225-8 utility rates shall be based on the original cost, less
225-9 depreciation, of property used by and useful to the utility in
225-10 providing service.
225-11 (b) The original cost of property shall be determined at the
225-12 time the property is dedicated to public use, whether by the
225-13 utility that is the present owner or by a predecessor.
225-14 (c) In this section, "original cost" means the actual money
225-15 cost or the actual money value of consideration paid other than
225-16 money. (V.A.C.S. Art. 1446c-0, Secs. 3.206(a) (part), (c).)
225-17 Sec. 53.054. CONSTRUCTION WORK IN PROGRESS. (a)
225-18 Construction work in progress, at cost as recorded on the public
225-19 utility's books, may be included in the utility's rate base. The
225-20 inclusion of construction work in progress is an exceptional form
225-21 of rate relief that the commission may grant only if the utility
225-22 demonstrates that inclusion is necessary to the utility's financial
225-23 integrity.
225-24 (b) Construction work in progress may not be included in the
225-25 rate base for a major project under construction to the extent that
225-26 the project has been inefficiently or imprudently planned or
225-27 managed. (V.A.C.S. Art. 1446c-0, Secs. 3.206(a) (part), (b).)
226-1 Sec. 53.055. SEPARATIONS AND ALLOCATIONS. Costs of
226-2 facilities, revenues, expenses, taxes, and reserves shall be
226-3 separated or allocated as prescribed by the commission. (V.A.C.S.
226-4 Art. 1446c-0, Sec. 3.207.)
226-5 Sec. 53.056. DEPRECIATION, AMORTIZATION, AND DEPLETION. (a)
226-6 The commission shall establish proper and adequate rates and
226-7 methods of depreciation, amortization, or depletion for each class
226-8 of property of a public utility.
226-9 (b) On application of a utility, the commission shall
226-10 establish depreciation rates that promote the use of new technology
226-11 and infrastructure. In establishing rates under this subsection,
226-12 the commission shall consider depreciation practices of
226-13 nonregulated telecommunications providers.
226-14 (c) The rates and methods established under this section and
226-15 the depreciation account required by Section 52.252 shall be used
226-16 uniformly and consistently throughout rate-setting and appeal
226-17 proceedings.
226-18 (d) Notwithstanding this section, a company electing under
226-19 Chapter 58 may determine its own depreciation rates and
226-20 amortizations. The company shall notify the commission of any
226-21 change in those rates or amortizations. (V.A.C.S. Art. 1446c-0,
226-22 Sec. 3.151(a) (part).)
226-23 Sec. 53.057. NET INCOME; DETERMINATION OF REVENUES AND
226-24 EXPENSES. (a) A public utility's net income is the total revenues
226-25 of the utility less all reasonable and necessary expenses as
226-26 determined by the commission.
226-27 (b) The commission shall determine revenues and expenses in
227-1 a manner consistent with this subchapter.
227-2 (c) The commission may adopt reasonable rules with respect
227-3 to whether an expense is allowed for ratemaking purposes.
227-4 (V.A.C.S. Art. 1446c-0, Secs. 3.208(a), (e).)
227-5 Sec. 53.058. CONSIDERATION OF PAYMENT TO AFFILIATE. (a)
227-6 Except as provided by Subsection (b), the commission may not allow
227-7 as capital cost or as expense a payment to an affiliate for:
227-8 (1) cost of a service, property, right, or other item;
227-9 or
227-10 (2) interest expense.
227-11 (b) The commission may allow a payment described by
227-12 Subsection (a) only to the extent that the commission finds the
227-13 payment is reasonable and necessary for each item or class of items
227-14 as determined by the commission.
227-15 (c) A finding under Subsection (b) must include:
227-16 (1) a specific finding of the reasonableness and
227-17 necessity of each item or class of items allowed; and
227-18 (2) except as provided by Subsection (d), a finding
227-19 that the price to the utility is not higher than the prices charged
227-20 by the supplying affiliate to:
227-21 (A) its other affiliates or divisions for the
227-22 same item or class of items; or
227-23 (B) a nonaffiliated person within the same
227-24 market area or having the same market conditions.
227-25 (d) A finding under this section is not required as to the
227-26 prices charged by the supplying affiliate to its other affiliates
227-27 or divisions if the supplying affiliate computed its charges to the
228-1 utility in a manner consistent with Federal Communications
228-2 Commission rules.
228-3 (e) If the commission finds that the affiliate expense for
228-4 the test period is unreasonable, the commission shall:
228-5 (1) determine the reasonable level of the expense; and
228-6 (2) include that expense in determining the utility's
228-7 cost of service. (V.A.C.S. Art. 1446c-0, Sec. 3.208(b).)
228-8 Sec. 53.059. TREATMENT OF CERTAIN TAX BENEFITS. (a) In
228-9 determining the allocation of tax savings derived from liberalized
228-10 depreciation and amortization, the investment tax credit, and the
228-11 application of similar methods, the commission shall:
228-12 (1) balance equitably the interests of present and
228-13 future customers; and
228-14 (2) apportion accordingly the benefits between
228-15 consumers and the public utility.
228-16 (b) If a public utility retains a portion of the investment
228-17 tax credit, that portion shall be deducted from the original cost
228-18 of the facilities or other addition to the rate base to which the
228-19 credit applied to the extent allowed by the Internal Revenue Code.
228-20 (V.A.C.S. Art. 1446c-0, Sec. 3.151(c).)
228-21 Sec. 53.060. COMPUTATION OF INCOME TAX; CONSOLIDATED RETURN.
228-22 (a) Unless it is shown to the satisfaction of the commission that
228-23 it was reasonable to choose not to consolidate returns, a public
228-24 utility's income taxes shall be computed as though a consolidated
228-25 return had been filed and the utility had realized its fair share
228-26 of the savings resulting from that return, if:
228-27 (1) the utility is a member of an affiliated group
229-1 eligible to file a consolidated income tax return; and
229-2 (2) it is advantageous to the utility to do so.
229-3 (b) The amount of income tax that a consolidated group of
229-4 which a public utility is a member saves, because the consolidated
229-5 return eliminates the intercompany profit on purchases by the
229-6 utility from an affiliate, shall be applied to reduce the cost of
229-7 the property or service purchased from the affiliate.
229-8 (c) The investment tax credit allowed against federal income
229-9 taxes, to the extent retained by the utility, shall be applied as a
229-10 reduction in the rate-based contribution of the assets to which the
229-11 credit applies, to the extent and at the rate allowed by the
229-12 Internal Revenue Code. (V.A.C.S. Art. 1446c-0, Sec. 3.208(c).)
229-13 Sec. 53.061. ALLOWANCE OF CERTAIN EXPENSES. (a) The
229-14 commission may not allow as a cost or expense for ratemaking
229-15 purposes:
229-16 (1) an expenditure for legislative advocacy; or
229-17 (2) an expenditure described by Section 52.254 that
229-18 the commission determines to be not in the public interest.
229-19 (b) The commission may allow as a cost or expense reasonable
229-20 charitable or civic contributions not to exceed the amount approved
229-21 by the commission. (V.A.C.S. Art. 1446c-0, Secs. 3.152(b), (c),
229-22 (d).)
229-23 Sec. 53.062. CONSIDERATION OF CERTAIN EXPENSES. The
229-24 commission may not consider for ratemaking purposes:
229-25 (1) an expenditure for legislative advocacy, made
229-26 directly or indirectly, including legislative advocacy expenses
229-27 included in trade association dues;
230-1 (2) an expenditure for costs of processing a refund or
230-2 credit under Section 53.110; or
230-3 (3) any other expenditure, including an executive
230-4 salary, advertising expense, legal expense, or civil penalty or
230-5 fine the commission finds to be unreasonable, unnecessary, or not
230-6 in the public interest. (V.A.C.S. Art. 1446c-0, Sec. 3.208(d).)
230-7 Sec. 53.063. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
230-8 LEASE OF MERCHANDISE. In establishing a public utility's rates,
230-9 the commission may not consider a profit or loss that results from
230-10 the sale or lease of merchandise, including appliances, fixtures,
230-11 or equipment, to the extent that merchandise is not integral to
230-12 providing utility service. (V.A.C.S. Art. 1446c-0, Sec. 3.151(b)
230-13 (part).)
230-14 Sec. 53.064. SELF-INSURANCE. (a) A public utility may
230-15 self-insure all or part of the utility's potential liability or
230-16 catastrophic property loss, including windstorm, fire, and
230-17 explosion losses, that could not have been reasonably anticipated
230-18 and included under operating and maintenance expenses.
230-19 (b) The commission shall approve a self-insurance plan under
230-20 this section if the commission finds that:
230-21 (1) the coverage is in the public interest;
230-22 (2) the plan, considering all costs, is a lower cost
230-23 alternative to purchasing commercial insurance; and
230-24 (3) ratepayers will receive the benefits of the
230-25 savings.
230-26 (c) In computing a utility's reasonable and necessary
230-27 expenses under this subchapter, the commission, to the extent the
231-1 commission finds is in the public interest, shall allow as a
231-2 necessary expense money credited to a reserve account for
231-3 self-insurance. The commission shall determine reasonableness
231-4 under this subsection:
231-5 (1) from information provided at the time the
231-6 self-insurance plan and reserve account are established; and
231-7 (2) on the filing of a rate case by a utility that has
231-8 a reserve account.
231-9 (d) After a reserve account for self-insurance is
231-10 established, the commission shall:
231-11 (1) determine whether the account has a surplus or
231-12 shortage under Subsection (e); and
231-13 (2) subtract any surplus from or add any shortage to
231-14 the utility's rate base.
231-15 (e) A surplus in the reserve account exists if the charges
231-16 against the account are less than the money credited to the
231-17 account. A shortage in the reserve account exists if the charges
231-18 against the account are greater than the money credited to the
231-19 account.
231-20 (f) The commission shall adopt rules governing
231-21 self-insurance under this section. (V.A.C.S. Art. 1446c-0, Sec.
231-22 3.209.)
231-23 Sec. 53.065. INTEREXCHANGE SERVICES; RATES OF INCUMBENT
231-24 LOCAL EXCHANGE COMPANY. (a) An incumbent local exchange company's
231-25 rates for interexchange telecommunications services must be
231-26 statewide average rates except as ordered by the commission after
231-27 application and hearing.
232-1 (b) This section does not limit the ability of an incumbent
232-2 local exchange company to contract for high-speed private line
232-3 services of 1.544 megabits or greater under Section 52.057.
232-4 (V.A.C.S. Art. 1446c-0, Sec. 3.303.)
232-5 (Sections 53.066-53.100 reserved for expansion)
232-6 SUBCHAPTER C. GENERAL PROCEDURES FOR RATE
232-7 CHANGE PROPOSED BY UTILITY
232-8 Sec. 53.101. DEFINITION. In this subchapter, "major change"
232-9 means an increase in rates that would increase the aggregate
232-10 revenues of the applicant more than the greater of $100,000 or
232-11 2-1/2 percent. The term does not include an increase in rates that
232-12 the commission allows to go into effect or the utility makes under
232-13 an order of the commission after hearings held with public notice.
232-14 (V.A.C.S. Art. 1446c-0, Sec. 3.211(b) (part).)
232-15 Sec. 53.102. STATEMENT OF INTENT TO CHANGE RATES. (a) A
232-16 utility may not change its rates unless the utility files a
232-17 statement of its intent with the commission at least 35 days before
232-18 the effective date of the proposed change.
232-19 (b) The utility shall also mail or deliver a copy of the
232-20 statement of intent to the appropriate officer of each affected
232-21 municipality.
232-22 (c) The statement of intent must include:
232-23 (1) proposed revisions of tariffs; and
232-24 (2) a detailed statement of:
232-25 (A) each proposed change;
232-26 (B) the effect the proposed change is expected
232-27 to have on the revenues of the utility;
233-1 (C) each class and number of utility consumers
233-2 affected; and
233-3 (D) any other information required by the
233-4 commission's rules. (V.A.C.S. Art. 1446c-0, Sec. 3.211(a) (part).)
233-5 Sec. 53.103. NOTICE OF INTENT TO CHANGE RATES. (a) The
233-6 utility shall:
233-7 (1) publish, in conspicuous form and place, notice to
233-8 the public of the proposed change once each week for four
233-9 successive weeks before the effective date of the proposed change
233-10 in a newspaper having general circulation in each county containing
233-11 territory affected by the proposed change; and
233-12 (2) mail notice of the proposed change to any other
233-13 affected person as required by the commission's rules.
233-14 (b) The commission may waive the publication of notice
233-15 requirement prescribed by Subsection (a) in a proceeding that
233-16 involves only a rate reduction for each affected ratepayer. The
233-17 applicant shall give notice of the proposed rate change by mail to
233-18 each affected utility customer.
233-19 (c) The commission by rule shall define other proceedings
233-20 for which the publication of notice requirement prescribed by
233-21 Subsection (a) may be waived on a showing of good cause. A waiver
233-22 may not be granted in a proceeding involving a rate increase to any
233-23 class or category of ratepayer. (V.A.C.S. Art. 1446c-0, Sec.
233-24 3.211(a) (part).)
233-25 Sec. 53.104. EARLY EFFECTIVE DATE OF RATE CHANGE. (a) For
233-26 good cause shown, the commission may allow a rate change, other
233-27 than a major change, to take effect:
234-1 (1) before the end of the 35-day period prescribed by
234-2 Section 53.102; and
234-3 (2) under conditions the commission prescribes,
234-4 subject to suspension as provided by this subchapter.
234-5 (b) The utility shall immediately revise its tariffs to
234-6 include the change. (V.A.C.S. Art. 1446c-0, Sec. 3.211(b) (part).)
234-7 Sec. 53.105. DETERMINATION OF PROPRIETY OF CHANGE; HEARING.
234-8 (a) If a tariff changing rates is filed with the commission, the
234-9 commission shall, on complaint by an affected person, or may, on
234-10 its own motion, not later than the 30th day after the effective
234-11 date of the change, enter on a hearing to determine the propriety
234-12 of the change.
234-13 (b) The commission shall hold a hearing in every case in
234-14 which the change constitutes a major change. The commission may,
234-15 however, use an informal proceeding if the commission does not
234-16 receive a complaint before the 46th day after the date notice of
234-17 the change is filed.
234-18 (c) The commission shall give reasonable notice of the
234-19 hearing, including notice to the governing body of each affected
234-20 municipality and county. The utility is not required to provide a
234-21 formal answer or file any other formal pleading in response to the
234-22 notice, and the absence of an answer does not affect an order for a
234-23 hearing. (V.A.C.S. Art. 1446c-0, Sec. 3.211(c) (part).)
234-24 Sec. 53.106. REGIONAL HEARING. The commission shall hold a
234-25 regional hearing at an appropriate location in a case in which the
234-26 commission determines it is in the public interest to hear
234-27 testimony at a regional hearing for inclusion in the record.
235-1 (V.A.C.S. Art. 1446c-0, Sec. 3.211(c) (part).)
235-2 Sec. 53.107. PREFERENCE TO HEARING. The commission shall:
235-3 (1) give preference to a hearing under this subchapter
235-4 and to deciding questions arising under this subchapter and
235-5 Subchapter E over any other question pending before it; and
235-6 (2) decide the questions as quickly as possible.
235-7 (V.A.C.S. Art. 1446c-0, Sec. 3.211(d) (part).)
235-8 Sec. 53.108. RATE SUSPENSION; DEADLINE. (a) Pending the
235-9 hearing and a decision, the commission, after delivering to the
235-10 utility a written statement of the commission's reasons, may
235-11 suspend the rate change for not longer than 150 days after the date
235-12 the rate change would otherwise be effective.
235-13 (b) The 150-day period prescribed by Subsection (a) shall be
235-14 extended two days for each day the actual hearing on the merits of
235-15 the case exceeds 15 days.
235-16 (c) If the commission does not make a final determination
235-17 concerning a rate change before expiration of the suspension
235-18 period, the commission is considered to have approved the change.
235-19 This approval is subject to the authority of the commission
235-20 thereafter to continue a hearing in progress. (V.A.C.S.
235-21 Art. 1446c-0, Sec. 3.211(d) (part).)
235-22 Sec. 53.109. TEMPORARY RATES. (a) The commission may
235-23 establish temporary rates to be in effect during the suspension
235-24 period under Section 53.108.
235-25 (b) If the commission does not establish temporary rates,
235-26 the rates in effect when the suspended tariff was filed continue in
235-27 effect during the suspension period. (V.A.C.S. Art. 1446c-0, Sec.
236-1 3.211(d) (part).)
236-2 Sec. 53.110. BONDED RATES. (a) A utility may put a changed
236-3 rate into effect by filing a bond with the commission if:
236-4 (1) the 150-day suspension period has been extended
236-5 under Section 53.108(b); and
236-6 (2) the commission fails to make a final determination
236-7 before the 151st day after the date the rate change would otherwise
236-8 be effective.
236-9 (b) The bonded rate may not exceed the proposed rate.
236-10 (c) The bond must be:
236-11 (1) payable to the commission in an amount, in a form,
236-12 and with a surety approved by the commission; and
236-13 (2) conditioned on refund.
236-14 (d) The utility shall refund or credit against future bills:
236-15 (1) money collected under the bonded rates in excess
236-16 of the rate finally ordered; and
236-17 (2) interest on that money, at the current interest
236-18 rate as determined by the commission. (V.A.C.S. Art. 1446c-0, Sec.
236-19 3.211(e).)
236-20 Sec. 53.111. ESTABLISHMENT OF FINAL RATES. (a) If, after
236-21 hearing, the commission finds the rates are unreasonable or in
236-22 violation of law, the commission shall:
236-23 (1) enter an order establishing the rates the utility
236-24 shall charge or apply for the service in question; and
236-25 (2) serve a copy of the order on the utility.
236-26 (b) The rates established in the order shall be observed
236-27 thereafter until changed as provided by this title.
237-1 (c) This section does not apply to a company electing under
237-2 Chapter 58 or 59 except as otherwise provided by those chapters or
237-3 by Chapter 60. (V.A.C.S. Art. 1446c-0, Sec. 3.211(f).)
237-4 Sec. 53.112. EXPIRATION OF SUSPENSION; EFFECT ON CERTAIN
237-5 RATES. (a) Notwithstanding Section 53.111(a), if the commission
237-6 does not make a final determination concerning an incumbent local
237-7 exchange company's rate change before expiration of the 150-day
237-8 suspension period, the rates finally approved by the commission
237-9 take effect on and the incumbent local exchange company is entitled
237-10 to collect those rates from the date the 150-day suspension period
237-11 expired.
237-12 (b) A surcharge or other charge necessary to effectuate this
237-13 section may not be recovered over a period of less than 90 days
237-14 from the date of the commission's final order. (V.A.C.S.
237-15 Art. 1446c-0, Sec. 3.211(h).)
237-16 Sec. 53.113. FCC-APPROVED TARIFFS FOR SWITCHED-ACCESS
237-17 SERVICE. (a) An incumbent local exchange company may file with
237-18 the commission tariffs for switched-access service that have been
237-19 approved by the Federal Communications Commission. The tariffs
237-20 must include all rate elements in the company's interstate access
237-21 tariff other than end-user charges.
237-22 (b) Not later than the 60th day after the date a company
237-23 files tariffs under Subsection (a), the commission shall order the
237-24 rates and terms to be the incumbent local exchange company's
237-25 intrastate switched-access rates and terms if, on review, the
237-26 tariffs contain the same rates and terms, excluding end-user
237-27 charges, as approved by the Federal Communications Commission.
238-1 (V.A.C.S. Art. 1446c-0, Sec. 3.211(j).)
238-2 (Sections 53.114-53.150 reserved for expansion)
238-3 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
238-4 Sec. 53.151. UNREASONABLE OR VIOLATIVE EXISTING RATES. (a)
238-5 If the commission, on its own motion or on complaint by an affected
238-6 person, after reasonable notice and hearing, finds that the
238-7 existing rates of a public utility for a service are unreasonable
238-8 or in violation of law, the commission shall:
238-9 (1) enter an order establishing the just and
238-10 reasonable rates to be observed thereafter, including maximum or
238-11 minimum rates; and
238-12 (2) serve a copy of the order on the utility.
238-13 (b) The rates established under Subsection (a) constitute
238-14 the legal rates of the public utility until changed as provided by
238-15 this title.
238-16 (c) This section does not apply to a company electing under
238-17 Chapter 58 or Chapter 59 except as otherwise provided by those
238-18 chapters. (V.A.C.S. Art. 1446c-0, Secs. 3.210(a), (c) (part).)
238-19 Sec. 53.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
238-20 ANOTHER SOURCE. If a public utility does not produce or generate
238-21 the service that it distributes, transmits, or furnishes to the
238-22 public for compensation but obtains the service from another
238-23 source, the commission may investigate the cost of that production
238-24 or generation in an investigation of the reasonableness of the
238-25 utility's rates. (V.A.C.S. Art. 1446c-0, Sec. 3.210(b).)
238-26 (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. The commission may not establish a rate or tariff that
239-4 authorizes a utility to automatically adjust and pass through to
239-5 the utility's customers a change in the utility's costs. (V.A.C.S.
239-6 Art. 1446c-0, Sec 3.211(g) (part).)
239-7 Sec. 53.202. ADJUSTMENT FOR CHANGE IN TAX LIABILITY. (a)
239-8 The commission, on its own motion or on the petition of a utility,
239-9 shall provide for the adjustment of the utility's billing to
239-10 reflect an increase or decrease in the utility's tax liability to
239-11 this state if the increase or decrease:
239-12 (1) results from Chapter 5, Acts of the 72nd
239-13 Legislature, 1st Called Session, 1991; and
239-14 (2) is attributable to an activity subject to the
239-15 commission's jurisdiction.
239-16 (b) The commission shall apportion pro rata to each type and
239-17 class of service provided by the utility any billing adjustment
239-18 under this section. The adjustment:
239-19 (1) shall be made effective at the same time as the
239-20 increase or decrease of tax liability described by Subsection
239-21 (a)(1), or as soon after that increase or decrease as is reasonably
239-22 practical; and
239-23 (2) remains effective only until the commission alters
239-24 the adjustment as provided by this section or enters an order for
239-25 the utility under Subchapter C or Subchapter D.
239-26 (c) Each year after an original adjustment, the commission
239-27 shall:
240-1 (1) review the utility's increase or decrease of tax
240-2 liability described by Subsection (a)(1); and
240-3 (2) alter the adjustment as necessary to reflect the
240-4 increase or decrease.
240-5 (d) A proceeding under this section is not a rate case under
240-6 Subchapter C. (V.A.C.S. Art. 1446c-0, Sec. 3.211(i).)
240-7 (Sections 53.203-53.250 reserved for expansion)
240-8 SUBCHAPTER F. REGULATORY POLICY FOR SMALL INCUMBENT LOCAL
240-9 EXCHANGE COMPANIES AND COOPERATIVES
240-10 Sec. 53.251. GENERAL POLICY. Regulatory policy should
240-11 recognize that:
240-12 (1) there are differences between small and large
240-13 incumbent local exchange companies;
240-14 (2) there are a large number of customer-owned
240-15 telephone cooperatives and small, locally owned investor companies;
240-16 and
240-17 (3) it is appropriate to provide incentives and
240-18 flexibility to allow an incumbent local exchange company that
240-19 serves a rural area to:
240-20 (A) provide existing services; and
240-21 (B) introduce new technology and new services in
240-22 a prompt, efficient, and economical manner. (V.A.C.S.
240-23 Art. 1446c-0, Sec. 3.213(a).)
240-24 Sec. 53.252. ADOPTION OF CERTAIN POLICIES. Notwithstanding
240-25 any other provision of this title, the commission shall consider
240-26 and may adopt policies to:
240-27 (1) provide for evaluation of the overall
241-1 reasonableness of the rates of a rural or small incumbent local
241-2 exchange company or cooperative not more frequently than once every
241-3 three years;
241-4 (2) permit consideration of future construction plans
241-5 and operational changes in evaluating the reasonableness of the
241-6 rates of a rural or small incumbent local exchange company or
241-7 cooperative; or
241-8 (3) allow a rural or small incumbent local exchange
241-9 company or cooperative to:
241-10 (A) provide required information by report or by
241-11 other means, as necessary, including a required rate filing
241-12 package, in substantially less burdensome and complex form than is
241-13 required of a larger incumbent local exchange company;
241-14 (B) change depreciation and amortization rates,
241-15 if customer rates are not affected, after notice to the commission,
241-16 subject to commission review in a proceeding under Subchapter C or
241-17 Subchapter D;
241-18 (C) adopt for a new service the rates for the
241-19 same or a substantially similar service offered by a larger
241-20 incumbent local exchange company, without additional cost
241-21 justification; and
241-22 (D) submit to the commission, instead of a
241-23 management audit otherwise required by law, policy, or rule,
241-24 financial audits regularly performed by an independent auditor or
241-25 required and performed as a result of the company's or
241-26 cooperative's participation in a federal or state financing or
241-27 revenue-sharing program. (V.A.C.S. Art. 1446c-0, Sec. 3.213(j)
242-1 (part).)
242-2 (Sections 53.253-53.300 reserved for expansion)
242-3 SUBCHAPTER G. SPECIAL PROCEDURES FOR SMALL
242-4 LOCAL EXCHANGE COMPANIES AND COOPERATIVES
242-5 Sec. 53.301. DEFINITION. (a) In this subchapter, "minor
242-6 change" means a change, including the restructuring of rates of
242-7 existing services, that:
242-8 (1) decreases the rates or revenues of an incumbent
242-9 local exchange company; or
242-10 (2) together with any other rate or proposed or
242-11 approved tariff changes in the 12 months preceding the effective
242-12 date of the proposed change, increases the company's total
242-13 regulated intrastate gross annual revenues by not more than five
242-14 percent.
242-15 (b) With regard to a change to a basic local access line
242-16 rate, a "minor change" does not include a change that, together
242-17 with any other change to the basic local access line rate that took
242-18 effect during the 12 months preceding the effective date of the
242-19 proposed change, results in an increase of more than 10 percent.
242-20 (V.A.C.S. Art. 1446c-0, Sec. 3.213(h).)
242-21 Sec. 53.302. APPLICABILITY. This subchapter does not apply
242-22 to an incumbent local exchange company that is a cooperative
242-23 corporation partially deregulated under Subchapter H. (V.A.C.S.
242-24 Art. 1446c-0, Sec. 3.213(l).)
242-25 Sec. 53.303. PROVISIONS NOT EXCLUSIVE. This subchapter does
242-26 not prohibit:
242-27 (1) an incumbent local exchange company from filing
243-1 for a new service or rate change under another section of this
243-2 title; or
243-3 (2) the commission from conducting a review under
243-4 Subchapter D. (V.A.C.S. Art. 1446c-0, Sec. 3.213(g).)
243-5 Sec. 53.304. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE
243-6 MINOR CHANGES. (a) An incumbent local exchange company may
243-7 offer an extended local calling service or a new service on an
243-8 optional basis or make a minor change in its rates or tariffs if
243-9 the company:
243-10 (1) is a cooperative corporation or has, together with
243-11 all affiliated incumbent local exchange companies, fewer than
243-12 31,000 access lines in service in this state;
243-13 (2) files with the commission and the office a
243-14 statement of intent, as prescribed by Subsection (b), not later
243-15 than the 91st day before the effective date of the proposed change;
243-16 (3) provides notice as prescribed by Section 53.305;
243-17 and
243-18 (4) files with the commission affidavits verifying
243-19 that notice as prescribed by Section 53.305 was provided.
243-20 (b) The statement of intent must include:
243-21 (1) a copy of a resolution adopted by the incumbent
243-22 local exchange company's board of directors approving the proposed
243-23 change;
243-24 (2) a description of the services affected by the
243-25 proposed change;
243-26 (3) a copy of the proposed tariff for the affected
243-27 service;
244-1 (4) a copy of the customer notice required by
244-2 Subsection (a)(3);
244-3 (5) the number of access lines the company and each
244-4 affiliate have in service in this state; and
244-5 (6) the amount by which the company's total regulated
244-6 intrastate gross annual revenues will increase or decrease as a
244-7 result of the proposed change. (V.A.C.S. Art. 1446c-0, Secs.
244-8 3.213(b), (c).)
244-9 Sec. 53.305. NOTICE TO AFFECTED CUSTOMERS. (a) A company
244-10 shall provide notice of a proposed change to affected customers in
244-11 the manner prescribed by the commission.
244-12 (b) Notice must:
244-13 (1) be provided not later than the 61st day before the
244-14 effective date of the proposed change; and
244-15 (2) include:
244-16 (A) a description of the services affected by
244-17 the proposed change;
244-18 (B) the effective date of the proposed change;
244-19 (C) an explanation of the customer's right to
244-20 petition the commission for a review under Section 53.306,
244-21 including the number of persons required to petition before a
244-22 commission review will occur;
244-23 (D) an explanation of the customer's right to
244-24 information concerning how to obtain a copy of the proposed tariff
244-25 from the company;
244-26 (E) the amount by which the company's total
244-27 regulated intrastate gross annual revenues will increase or
245-1 decrease as a result of the proposed change; and
245-2 (F) a list of rates that are affected by the
245-3 proposed rate change. (V.A.C.S. Art. 1446c-0, Sec. 3.213(d).)
245-4 Sec. 53.306. COMMISSION REVIEW OF PROPOSED CHANGE. (a) The
245-5 commission shall review a proposed change filed under this
245-6 subchapter if:
245-7 (1) the commission receives complaints relating to the
245-8 proposed change signed by a number of affected local service
245-9 customers equal at least to the lesser of 1,500 or five percent of
245-10 those customers;
245-11 (2) the commission receives a complaint relating to
245-12 the proposed change from an affected intrastate access customer, or
245-13 a group of affected intrastate access customers, that in the
245-14 preceding 12 months accounted for more than 10 percent of the
245-15 company's total intrastate gross access revenues;
245-16 (3) the proposed change is not a minor change;
245-17 (4) the company does not comply with the procedural
245-18 requirements of this subchapter; or
245-19 (5) the proposed change is inconsistent with the
245-20 commission's substantive policies as expressed in its rules.
245-21 (b) The commission may suspend a tariff proposed under this
245-22 subchapter during the review. (V.A.C.S. Art. 1446c-0, Secs.
245-23 3.213(e), (f).)
245-24 Sec. 53.307. COMPLIANCE WITH PRINCIPLES; REDUCED RATES. A
245-25 rate established under this subchapter must be in accordance with
245-26 the rate-setting principles of this chapter, except that a company
245-27 may provide to its board members, officers, employees, or agents
246-1 free or reduced rates for services. (V.A.C.S. Art. 1446c-0, Sec.
246-2 3.213(i).)
246-3 Sec. 53.308. FEES AND ASSESSMENTS. The commission may
246-4 prescribe and collect a fee or assessment from incumbent local
246-5 exchange companies necessary to recover the cost to the commission
246-6 and to the office of activities carried out and services provided
246-7 under:
246-8 (1) this subchapter;
246-9 (2) Section 53.112;
246-10 (3) Subchapter H; and
246-11 (4) Section 55.004. (V.A.C.S. Art. 1446c-0, Sec.
246-12 3.213(k).)
246-13 (Sections 53.309-53.350 reserved for expansion)
246-14 SUBCHAPTER H. PARTIAL DEREGULATION AVAILABLE TO
246-15 CERTAIN COOPERATIVE CORPORATIONS
246-16 Sec. 53.351. PROVISIONS NOT EXCLUSIVE. (a) This subchapter
246-17 does not:
246-18 (1) prohibit a cooperative from filing for a new
246-19 service or a rate change under another applicable provision of this
246-20 title; or
246-21 (2) affect the application of a provision of this
246-22 title not directly related to:
246-23 (A) establishing rates; or
246-24 (B) the authority of the commission to require a
246-25 cooperative to file a report required under this title or the
246-26 commission's rules.
246-27 (b) Notwithstanding any other provision of this subchapter,
247-1 the commission may conduct a review under Subchapter D. (V.A.C.S.
247-2 Art. 1446c-0, Secs. 3.2135(j), (k).)
247-3 Sec. 53.352. PARTIAL DEREGULATION BY BALLOT. (a) An
247-4 incumbent local exchange company that is a cooperative corporation
247-5 may vote to partially deregulate the cooperative by sending a
247-6 ballot to each cooperative member. The incumbent local exchange
247-7 company may include the ballot in a bill or send the ballot
247-8 separately. The ballot shall be printed to permit voting for or
247-9 against the proposition: "Authorizing the partial deregulation of
247-10 the (name of the cooperative)."
247-11 (b) The cooperative is partially deregulated if a majority
247-12 of the ballots returned to the cooperative not later than the 45th
247-13 day after the date the ballots are mailed favor deregulation.
247-14 (V.A.C.S. Art. 1446c-0, Secs. 3.2135(a), (b).)
247-15 Sec. 53.353. VOTING PROCEDURES. The commission by rule
247-16 shall prescribe the voting procedures a cooperative must use under
247-17 this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(i).)
247-18 Sec. 53.354. PROCEDURE TO OFFER CERTAIN SERVICES OR MAKE
247-19 CERTAIN CHANGES. (a) After the initial balloting, a cooperative
247-20 may offer extended local calling services, offer new services on an
247-21 optional basis, or make changes in its rates or tariffs if the
247-22 cooperative:
247-23 (1) files a statement of intent under Section 53.355;
247-24 (2) provides notice of the proposed action to each
247-25 customer and municipality as prescribed by Section 53.356; and
247-26 (3) files with the commission affidavits verifying
247-27 that notice was provided as prescribed by Section 53.357.
248-1 (V.A.C.S. Art. 1446c-0, Sec. 3.2135(c).)
248-2 Sec. 53.355. STATEMENT OF INTENT. (a) A cooperative must
248-3 file a statement of intent to use this subchapter with the
248-4 commission and the office not later than the 61st day before the
248-5 effective date of the proposed change.
248-6 (b) The statement must include:
248-7 (1) a copy of a resolution, signed by a majority of
248-8 the members of the cooperative's board of directors, approving the
248-9 proposed action and authorizing the filing of the statement of
248-10 intent;
248-11 (2) a description of the services affected by the
248-12 proposed action;
248-13 (3) a copy of the proposed tariff for the affected
248-14 service; and
248-15 (4) a copy of the customer notice required by Section
248-16 53.356. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(d).)
248-17 Sec. 53.356. NOTICE TO AFFECTED PERSONS. (a) The
248-18 cooperative shall provide to each affected customer or party,
248-19 including a municipality, at least two notices of the proposed
248-20 action by bill insert or by individual notice.
248-21 (b) The cooperative shall provide:
248-22 (1) the first notice not later than the 61st day
248-23 before the effective date of the proposed action; and
248-24 (2) the last notice not later than the 31st day before
248-25 the effective date of the proposed action.
248-26 (c) A notice prescribed by this section must include:
248-27 (1) a description of the services affected by the
249-1 proposed action;
249-2 (2) the effective date of the proposed action;
249-3 (3) an explanation of the customer's right to:
249-4 (A) obtain a copy of the proposed tariff from
249-5 the cooperative; and
249-6 (B) petition the commission for a review under
249-7 Section 53.358;
249-8 (4) a statement of the amount by which the
249-9 cooperative's total gross annual revenues will increase or decrease
249-10 and a statement explaining the effect on the cooperative revenues
249-11 as a result of the proposed action; and
249-12 (5) a list of rates that are affected by the proposed
249-13 rate action, showing the effect of the proposed action on each of
249-14 those rates. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(e).)
249-15 Sec. 53.357. FILING OF AFFIDAVITS VERIFYING NOTICE. Not
249-16 later than the 15th day before the effective date of a proposed
249-17 action, the cooperative shall file with the commission affidavits
249-18 that verify that the cooperative provided each notice required by
249-19 Section 53.356. (V.A.C.S. Art. 1446c-0, Sec. 3.2135(f).)
249-20 Sec. 53.358. COMMISSION REVIEW OF PROPOSED ACTION. (a) The
249-21 commission shall review a proposed action filed under this
249-22 subchapter if:
249-23 (1) the commission receives, not later than the 45th
249-24 day after the date the first notice is provided under Section
249-25 53.356, complaints relating to the proposed action:
249-26 (A) signed by at least five percent of the
249-27 affected local service customers; or
250-1 (B) from an affected intrastate access customer,
250-2 or group of affected intrastate access customers, that in the
250-3 preceding 12 months accounted for more than 10 percent of the
250-4 cooperative's total intrastate access revenues;
250-5 (2) the cooperative does not comply with the
250-6 procedural requirements of this subchapter; or
250-7 (3) the proposed action is inconsistent with the
250-8 commission's substantive policies as expressed in its rules.
250-9 (b) If the commission conducts a review of the proposed
250-10 action under this section before the action's effective date, the
250-11 commission may suspend the proposed action during the review.
250-12 (V.A.C.S. Art. 1446c-0, Sec. 3.2135(g).)
250-13 Sec. 53.359. REVERSAL OF DEREGULATION BY BALLOT. (a) A
250-14 cooperative that is partially deregulated under this subchapter may
250-15 vote to reverse the deregulation by sending a ballot to each
250-16 cooperative member.
250-17 (b) The cooperative's board of directors may order
250-18 reballoting on its own motion. If the board receives a written
250-19 request for that action from at least 10 percent of its members,
250-20 the board shall reballot not later than the 60th day after the date
250-21 the board receives that request.
250-22 (c) The cooperative may include the ballot in a bill or send
250-23 the ballot separately. The ballot shall be printed to permit
250-24 voting for or against the proposition: "Reversing the partial
250-25 deregulation of the (name of the cooperative)."
250-26 (d) The partial deregulation is reversed if a majority of
250-27 the ballots returned to the cooperative not later than the 45th day
251-1 after the date the ballots are mailed favor reversal. (V.A.C.S.
251-2 Art. 1446c-0, Sec. 3.2135(h).)
251-3 CHAPTER 54. CERTIFICATES
251-4 SUBCHAPTER A. GENERAL PROVISIONS
251-5 Sec. 54.001. CERTIFICATE REQUIRED
251-6 Sec. 54.002. EXCEPTIONS TO CERTIFICATE REQUIREMENT
251-7 FOR SERVICE EXTENSION
251-8 Sec. 54.003. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
251-9 CERTAIN SERVICES
251-10 Sec. 54.004. RELINQUISHMENT PLAN
251-11 Sec. 54.005. NOTICE OF AND HEARING ON APPLICATION
251-12 Sec. 54.006. REQUEST FOR PRELIMINARY ORDER
251-13 Sec. 54.007. FLEXIBILITY PLAN
251-14 Sec. 54.008. REVOCATION OR AMENDMENT OF CERTIFICATE
251-15 (Sections 54.009-54.050 reserved for expansion)
251-16 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
251-17 Sec. 54.051. DEFINITION
251-18 Sec. 54.052. CERTIFICATE REQUIRED FOR PUBLIC UTILITY
251-19 Sec. 54.053. APPLICATION FOR CERTIFICATE
251-20 Sec. 54.054. GRANT OR DENIAL OF CERTIFICATE
251-21 (Sections 54.055-54.100 reserved for expansion)
251-22 SUBCHAPTER C. CERTIFICATE OF OPERATING AUTHORITY
251-23 Sec. 54.101. DEFINITION
251-24 Sec. 54.102. APPLICATION FOR CERTIFICATE
251-25 Sec. 54.103. GRANT OR DENIAL OF CERTIFICATE
251-26 Sec. 54.104. BUILD-OUT PLAN REQUIREMENTS
251-27 Sec. 54.105. SIX-YEAR LIMITATION ON RESALE OF SERVICES
252-1 Sec. 54.106. TIME OF SERVICE REQUIREMENTS
252-2 Sec. 54.107. REQUIREMENTS RELATING TO CERTAIN FACILITIES
252-3 Sec. 54.108. BUILD-OUT PLAN COMPLIANCE
252-4 Sec. 54.109. ELIMINATION OF BUILD-OUT REQUIREMENTS FOR
252-5 CERTAIN PROVIDERS
252-6 Sec. 54.110. HEARING ON BUILD-OUT AND RESALE REQUIREMENTS
252-7 Sec. 54.111. PENALTY FOR VIOLATION OF TITLE
252-8 (Sections 54.112-54.150 reserved for expansion)
252-9 SUBCHAPTER D. SERVICE PROVIDER CERTIFICATE
252-10 OF OPERATING AUTHORITY
252-11 Sec. 54.151. DEFINITION
252-12 Sec. 54.152. LIMITATION ON GRANT OF CERTIFICATE
252-13 Sec. 54.153. ELIGIBILITY FOR CERTIFICATE
252-14 Sec. 54.154. APPLICATION FOR CERTIFICATE
252-15 Sec. 54.155. GRANT OR DENIAL OF CERTIFICATE
252-16 Sec. 54.156. RESALE OF SERVICES
252-17 Sec. 54.157. OPTIONAL EXTENDED AREA SERVICE OR EXPANDED
252-18 LOCAL CALLING SERVICE
252-19 Sec. 54.158. INTERFERENCE WITH RESOLD SERVICES PROHIBITED
252-20 Sec. 54.159. RETENTION OF ACCESS SERVICE AND INTRALATA
252-21 TOLL SERVICE
252-22 (Sections 54.160-54.200 reserved for expansion)
252-23 SUBCHAPTER E. MUNICIPALITIES
252-24 Sec. 54.201. CERTIFICATION PROHIBITED
252-25 Sec. 54.202. PROHIBITED MUNICIPAL SERVICES
252-26 Sec. 54.203. SERVICE IN ANNEXED OR INCORPORATED AREA
252-27 Sec. 54.204. DISCRIMINATION BY MUNICIPALITY PROHIBITED
253-1 Sec. 54.205. MUNICIPALITY'S RIGHT TO CONTROL ACCESS
253-2 Sec. 54.206. RECOVERY OF MUNICIPAL FEE
253-3 (Sections 54.207-54.250 reserved for expansion)
253-4 SUBCHAPTER F. REGULATION OF SERVICES, AREAS, AND FACILITIES
253-5 Sec. 54.251. PROVISION OF SERVICE
253-6 Sec. 54.252. GROUNDS FOR REDUCTION OF SERVICE BY HOLDER
253-7 OF CERTIFICATE OF CONVENIENCE
253-8 AND NECESSITY
253-9 Sec. 54.253. DISCONTINUATION OF SERVICE BY CERTAIN
253-10 CERTIFICATE HOLDERS
253-11 Sec. 54.254. REQUIRED REFUSAL OF SERVICE
253-12 Sec. 54.255. TRANSFER OF CERTAIN CERTIFICATES
253-13 Sec. 54.256. APPLICATION OF CONTRACTS
253-14 Sec. 54.257. INTERFERENCE WITH ANOTHER TELECOMMUNICATIONS
253-15 UTILITY
253-16 Sec. 54.258. MAPS
253-17 Sec. 54.259. DISCRIMINATION BY PROPERTY OWNER
253-18 PROHIBITED
253-19 Sec. 54.260. PROPERTY OWNER'S CONDITIONS
253-20 Sec. 54.261. SHARED TENANT SERVICES CONTRACT
253-21 CHAPTER 54. CERTIFICATES
253-22 SUBCHAPTER A. GENERAL PROVISIONS
253-23 Sec. 54.001. CERTIFICATE REQUIRED. A person may not provide
253-24 local exchange telephone service, basic local telecommunications
253-25 service, or switched access service unless the person obtains a:
253-26 (1) certificate of convenience and necessity;
253-27 (2) certificate of operating authority; or
254-1 (3) service provider certificate of operating
254-2 authority. (V.A.C.S. Art. 1446c-0, Sec. 3.251(c).)
254-3 Sec. 54.002. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
254-4 SERVICE EXTENSION. (a) A telecommunications utility is not
254-5 required to obtain a certificate of convenience and necessity, a
254-6 certificate of operating authority, or a service provider
254-7 certificate of operating authority for an:
254-8 (1) extension into territory that is:
254-9 (A) contiguous to the territory the
254-10 telecommunications utility serves;
254-11 (B) not receiving similar service from another
254-12 telecommunications utility; and
254-13 (C) not in another telecommunications utility's
254-14 certificated area;
254-15 (2) extension in or to territory the
254-16 telecommunications utility serves or is authorized to serve under a
254-17 certificate of public convenience and necessity, a certificate of
254-18 operating authority, or a service provider certificate of operating
254-19 authority; or
254-20 (3) operation, extension, or service in progress on
254-21 September 1, 1975.
254-22 (b) An extension allowed by Subsection (a) is limited to a
254-23 device used:
254-24 (1) to interconnect existing facilities; or
254-25 (2) solely to transmit telecommunications utility
254-26 services from an existing facility to a customer of retail utility
254-27 service. (V.A.C.S. Art. 1446c-0, Secs. 3.252(a) (part), (b).)
255-1 Sec. 54.003. EXCEPTIONS TO CERTIFICATE REQUIREMENT FOR
255-2 CERTAIN SERVICES. A telecommunications utility is not required to
255-3 obtain a certificate of convenience and necessity, a certificate of
255-4 operating authority, or a service provider certificate of operating
255-5 authority for:
255-6 (1) an interexchange telecommunications service;
255-7 (2) a nonswitched private line service;
255-8 (3) a shared tenant service;
255-9 (4) a specialized communications common carrier
255-10 service;
255-11 (5) a commercial mobile service; or
255-12 (6) an operator service as defined by Section 55.081.
255-13 (V.A.C.S. Art. 1446c-0, Sec. 3.252(a) (part).)
255-14 Sec. 54.004. RELINQUISHMENT PLAN. A holder of a service
255-15 provider certificate of operating authority who applies for a
255-16 certificate of operating authority or a certificate of convenience
255-17 and necessity for the same territory must include with the
255-18 application a plan to relinquish the service provider certificate
255-19 of operating authority. (V.A.C.S. Art. 1446c-0, Sec. 3.2532(e)
255-20 (part).)
255-21 Sec. 54.005. NOTICE OF AND HEARING ON APPLICATION. (a)
255-22 When an application for a certificate of convenience and necessity,
255-23 a certificate of operating authority, or a service provider
255-24 certificate of operating authority is filed, the commission shall:
255-25 (1) give notice of the application to interested
255-26 parties; and
255-27 (2) if requested:
256-1 (A) set a time and place for a hearing; and
256-2 (B) give notice of the hearing.
256-3 (b) A person interested in the application may intervene at
256-4 the hearing. (V.A.C.S. Art. 1446c-0, Secs. 3.2531(b) (part),
256-5 3.254(a).)
256-6 Sec. 54.006. REQUEST FOR PRELIMINARY ORDER. (a) A
256-7 telecommunications utility that wants to exercise a right or
256-8 privilege under a franchise or permit that the utility anticipates
256-9 obtaining but has not been granted may apply to the commission for
256-10 a preliminary order under this section.
256-11 (b) The commission may issue a preliminary order declaring
256-12 that the commission, on application and under commission rules,
256-13 will grant the requested certificate of convenience and necessity,
256-14 certificate of operating authority, or service provider certificate
256-15 of operating authority, on terms the commission designates, after
256-16 the telecommunications utility obtains the franchise or permit.
256-17 (c) The commission shall grant the certificate on
256-18 presentation of evidence satisfactory to the commission that the
256-19 telecommunications utility has obtained the franchise or permit.
256-20 (V.A.C.S. Art. 1446c-0, Sec. 3.257.)
256-21 Sec. 54.007. FLEXIBILITY PLAN. (a) After the commission
256-22 grants an application for a certificate of convenience and
256-23 necessity, a certificate of operating authority, or a service
256-24 provider certificate of operating authority or determines that a
256-25 certificate is not needed for the applicant to provide the relevant
256-26 services, the commission shall conduct appropriate proceedings to
256-27 establish a transitional flexibility plan for the incumbent local
257-1 exchange company in the same area or areas as the new certificate
257-2 holder.
257-3 (b) A basic local telecommunications service price of the
257-4 incumbent local exchange company may not be increased before the
257-5 fourth anniversary of the date the certificate is granted to the
257-6 applicant except that the price may be increased:
257-7 (1) as provided by this title;
257-8 (2) when the new certificate holder has completed the
257-9 build-out plan required by Subchapter C, if applicable; or
257-10 (3) when a competitor for basic local
257-11 telecommunications service provides the service in an area in which
257-12 the build-out requirements have been eliminated. (V.A.C.S.
257-13 Art. 1446c-0, Sec. 3.2571.)
257-14 Sec. 54.008. REVOCATION OR AMENDMENT OF CERTIFICATE. (a)
257-15 The commission may revoke or amend a certificate of convenience and
257-16 necessity, a certificate of operating authority or a service
257-17 provider certificate of operating authority after notice and
257-18 hearing if the commission finds that the certificate holder has
257-19 never provided or is no longer providing service in all or any part
257-20 of the certificated area.
257-21 (b) The commission may require one or more public utilities
257-22 to provide service in an area affected by the revocation or
257-23 amendment of a certificate held by a public utility. (V.A.C.S.
257-24 Art. 1446c-0, Sec. 3.263.)
257-25 (Sections 54.009-54.050 reserved for expansion)
257-26 SUBCHAPTER B. CERTIFICATE OF CONVENIENCE AND NECESSITY
257-27 Sec. 54.051. DEFINITION. In this subchapter, "certificate"
258-1 means a certificate of convenience and necessity. (New.)
258-2 Sec. 54.052. CERTIFICATE REQUIRED FOR PUBLIC UTILITY. (a)
258-3 A public utility may not directly or indirectly provide service to
258-4 the public under a franchise or permit unless the utility obtains
258-5 from the commission a certificate that states that the public
258-6 convenience and necessity requires or will require the
258-7 installation, operation, or extension of the service.
258-8 (b) Except as otherwise provided by this chapter, a public
258-9 utility may not furnish or make available retail public utility
258-10 service to an area in which retail utility service is being
258-11 lawfully furnished by another public utility unless the utility
258-12 obtains a certificate that includes the area in which the facility
258-13 that receives the service is located. (V.A.C.S. Art. 1446c-0,
258-14 Secs. 3.251(a), (b).)
258-15 Sec. 54.053. APPLICATION FOR CERTIFICATE. (a) A public
258-16 utility that wants to obtain or amend a certificate must submit an
258-17 application to the commission.
258-18 (b) The applicant shall file with the commission evidence
258-19 the commission requires to show the applicant has received the
258-20 consent, franchise, or permit required by the proper municipal or
258-21 other public authority. (V.A.C.S. Art. 1446c-0, Secs. 3.253(a),
258-22 (c).)
258-23 Sec. 54.054. GRANT OR DENIAL OF CERTIFICATE. (a) The
258-24 commission may approve an application and grant a certificate only
258-25 if the commission finds that the certificate is necessary for the
258-26 service, accommodation, convenience, or safety of the public.
258-27 (b) The commission may:
259-1 (1) grant the certificate as requested;
259-2 (2) grant the certificate for the construction of a
259-3 portion of the requested system, facility, or extension or the
259-4 partial exercise of the requested right or privilege; or
259-5 (3) refuse to grant the certificate.
259-6 (c) The commission shall grant each certificate on a
259-7 nondiscriminatory basis after considering:
259-8 (1) the adequacy of existing service;
259-9 (2) the need for additional service;
259-10 (3) the effect of granting the certificate on the
259-11 recipient of the certificate and any public utility of the same
259-12 kind serving the proximate area; and
259-13 (4) other factors, such as:
259-14 (A) community values;
259-15 (B) recreational and park areas;
259-16 (C) historical and aesthetic values;
259-17 (D) environmental integrity; and
259-18 (E) the probable improvement of service or
259-19 lowering of cost to consumers in the area if the certificate is
259-20 granted. (V.A.C.S. Art. 1446c-0, Secs. 3.254(b), (c).)
259-21 (Sections 54.055-54.100 reserved for expansion)
259-22 SUBCHAPTER C. CERTIFICATE OF OPERATING AUTHORITY
259-23 Sec. 54.101. DEFINITION. In this subchapter, "certificate"
259-24 means a certificate of operating authority. (New.)
259-25 Sec. 54.102. APPLICATION FOR CERTIFICATE. (a) In lieu of
259-26 applying for a certificate of convenience and necessity, a person
259-27 may apply for a certificate of operating authority.
260-1 (b) An applicant for a facilities-based certificate of
260-2 operating authority must include with the application a proposed
260-3 build-out plan in compliance with this subchapter that demonstrates
260-4 how the applicant will, over a six-year period, deploy facilities
260-5 throughout the geographic area of the certificated service area.
260-6 (c) The applicant must file with the application a sworn
260-7 statement that the applicant has applied for each municipal
260-8 consent, franchise, or permit required for the type of services and
260-9 facilities for which the applicant has applied. (V.A.C.S.
260-10 Art. 1446c-0, Secs. 3.2531(a), (c) (part), 3.2555(a) (part).)
260-11 Sec. 54.103. GRANT OR DENIAL OF CERTIFICATE. (a) The
260-12 commission must grant or deny a certificate not later than the 60th
260-13 day after the date the application for the certificate is filed.
260-14 The commission may extend the deadline on good cause shown.
260-15 (b) The commission shall grant each certificate on a
260-16 nondiscriminatory basis after considering factors such as:
260-17 (1) the adequacy of the applicant's build-out plan;
260-18 (2) the technical and financial qualifications of the
260-19 applicant; and
260-20 (3) the applicant's ability to meet the commission's
260-21 quality of service requirements.
260-22 (c) In an exchange of an incumbent local exchange company
260-23 that serves fewer than 31,000 access lines, in addition to the
260-24 factors described by Subsection (b), the commission shall consider:
260-25 (1) the effect of granting the certificate on a public
260-26 utility serving the area and on that utility's customers;
260-27 (2) the ability of that public utility to provide
261-1 adequate service at reasonable rates;
261-2 (3) the effect of granting the certificate on the
261-3 ability of that public utility to act as the provider of last
261-4 resort; and
261-5 (4) the ability of the exchange, not the company, to
261-6 support more than one provider of service.
261-7 (d) Except as provided by Subsections (e) and (f), the
261-8 commission may grant an application for a certificate only for an
261-9 area or areas that are contiguous and reasonably compact and cover
261-10 an area of at least 27 square miles.
261-11 (e) In an exchange in a county that has a population of less
261-12 than 500,000 and that is served by an incumbent local exchange
261-13 company that has more than 31,000 access lines, an area covering
261-14 less than 27 square miles may be approved if the area is contiguous
261-15 and reasonably compact and has at least 20,000 access lines.
261-16 (f) In an exchange of a company that serves fewer than
261-17 31,000 access lines in this state, the commission may grant an
261-18 application only for an area that has boundaries similar to the
261-19 boundaries of the serving central office that is served by the
261-20 incumbent local exchange company that holds the certificate of
261-21 convenience and necessity for the area.
261-22 (g) The commission may not grant a certificate in an
261-23 exchange of an incumbent local exchange company that serves fewer
261-24 than 31,000 access lines. The commission shall require an
261-25 applicant to meet the other appropriate certification provisions of
261-26 this chapter. This subsection expires September 1, 1998.
261-27 (V.A.C.S. Art. 1446c-0, Secs. 3.2531(e), (f) (part), (g), (h).)
262-1 Sec. 54.104. BUILD-OUT PLAN REQUIREMENTS. (a) The
262-2 build-out plan required by Section 54.102 must provide that, by the
262-3 end of the:
262-4 (1) first year, 10 percent of the area to be served
262-5 must be served with facilities that are not facilities of the
262-6 incumbent local exchange company;
262-7 (2) third year, 50 percent of the area to be served
262-8 must be served with facilities that are not facilities of the
262-9 incumbent local exchange company; and
262-10 (3) sixth year, 100 percent of the area to be served
262-11 must be served with facilities that are not facilities of the
262-12 incumbent local exchange company.
262-13 (b) The build-out plan may permit the certificate holder to
262-14 serve not more than 40 percent of the certificate holder's service
262-15 area by reselling the incumbent local exchange company's
262-16 facilities. The resale must be in accordance with:
262-17 (1) Section 54.105; and
262-18 (2) the resale tariff approved by the commission under
262-19 Subchapter C, Chapter 60.
262-20 (c) The resale limitation applies to an incumbent local
262-21 exchange facility that a certificate holder resells in providing
262-22 local exchange telephone service, regardless of whether:
262-23 (1) the certificate holder purchases the facility
262-24 directly from the incumbent local exchange company; or
262-25 (2) an intermediary carrier purchases the facility
262-26 from the incumbent local exchange company and then provides the
262-27 facility to the certificate holder for resale.
263-1 (d) To meet the build-out requirement prescribed by this
263-2 subchapter, a certificate holder:
263-3 (1) may not use commercial mobile service; and
263-4 (2) may use personal communication services (PCS) or
263-5 other wireless technology licensed or allocated by the Federal
263-6 Communications Commission after January 1, 1995. (V.A.C.S.
263-7 Art. 1446c-0, Secs. 3.2531(c) (part), (d) (part).)
263-8 Sec. 54.105. SIX-YEAR LIMITATION ON RESALE OF SERVICES.
263-9 Before the sixth anniversary of the date a certificate is granted,
263-10 the certificate holder may extend service by resale only:
263-11 (1) in the area it is obligated to serve under the
263-12 approved build-out plan; and
263-13 (2) to the distant premises of one of its
263-14 multi-premises customers beyond the approved build-out area but in
263-15 its certificated service area. (V.A.C.S. Art. 1446c-0, Sec.
263-16 3.2531(d) (part).)
263-17 Sec. 54.106. TIME OF SERVICE REQUIREMENTS. (a) The
263-18 commission by rule may prescribe the period within which a
263-19 certificate holder must be able to serve customers.
263-20 (b) Notwithstanding Subsection (a), a certificate holder
263-21 must serve a customer in the build-out area not later than the 30th
263-22 day after the date the customer requests service. (V.A.C.S.
263-23 Art. 1446c-0, Sec. 3.2531(c) (part).)
263-24 Sec. 54.107. REQUIREMENTS RELATING TO CERTAIN FACILITIES.
263-25 As part of the build-out requirements, the commission may not
263-26 require a certificate holder to:
263-27 (1) place a drop facility on each customer's premises;
264-1 or
264-2 (2) activate a fiber optic facility in advance of a
264-3 customer request. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(c) (part).)
264-4 Sec. 54.108. BUILD-OUT PLAN COMPLIANCE. (a) A certificate
264-5 holder shall file periodic reports with the commission
264-6 demonstrating compliance with:
264-7 (1) the plan approved by the commission; and
264-8 (2) the resale limitation prescribed by Section
264-9 54.104(b).
264-10 (b) The commission may administratively and temporarily
264-11 waive compliance with the six-year build-out plan on a showing of
264-12 good cause. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(f) (part).)
264-13 Sec. 54.109. ELIMINATION OF BUILD-OUT REQUIREMENTS FOR
264-14 CERTAIN PROVIDERS. (a) The commission may waive the build-out
264-15 requirements of this subchapter for an additional applicant in a
264-16 particular area:
264-17 (1) on or after the sixth anniversary of the date a
264-18 certificate is granted for that area; or
264-19 (2) on or after the date a certificate holder
264-20 completes the holder's build-out plan in that area.
264-21 (b) The build-out requirements of this subchapter do not
264-22 apply to a service area:
264-23 (1) that is served by an incumbent local exchange
264-24 company that:
264-25 (A) has more than one million access lines; and
264-26 (B) on September 1, 1995, was subject to a
264-27 prohibition under federal law on the provision of interLATA
265-1 service; and
265-2 (2) for which all prohibitions on the incumbent local
265-3 exchange company's provision of interLATA services are removed so
265-4 the company can offer interLATA service together with local and
265-5 intraLATA toll service. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(i).)
265-6 Sec. 54.110. HEARING ON BUILD-OUT AND RESALE REQUIREMENTS.
265-7 (a) The commission on application may conduct a hearing to
265-8 determine:
265-9 (1) whether the build-out requirements of Sections
265-10 54.102(b), 54.103(e) and (f), 54.104, 54.105, 54.106, and 54.107
265-11 have created a barrier to the entry of facilities-based local
265-12 exchange telephone service competition in an exchange in a county
265-13 that has a population of more than 500,000 and that is served by a
265-14 company that has more than 31,000 access lines; and
265-15 (2) the effect of the resale provisions on the
265-16 development of competition, other than the development of
265-17 competition in the certificated areas of companies that serve fewer
265-18 than 31,000 access lines as provided by Section 54.156(a).
265-19 (b) In making a determination under Subsection (a), the
265-20 commission shall consider:
265-21 (1) this title's policy to encourage construction of
265-22 local exchange networks;
265-23 (2) the number and type of competitors that have
265-24 sought to provide local exchange competition under the existing
265-25 rules prescribed by this title; and
265-26 (3) whether adopting new build-out and resale rules
265-27 would make innovative and competitive local exchange telephone
266-1 services more likely to be provided.
266-2 (c) The commission may change a requirement described by
266-3 Subsection (a)(1) or prescribed by Subchapter D if:
266-4 (1) the commission determines that the build-out
266-5 requirements have created a barrier to facilities-based local
266-6 exchange competition in an exchange described by Subsection (a)(1);
266-7 and
266-8 (2) the changes will encourage additional
266-9 facilities-based competition.
266-10 (d) Notwithstanding Subsection (c), the commission may not
266-11 reduce an exchange size to below 12 square miles or increase the
266-12 resale percentage prescribed by Section 54.104(b) to more than 50
266-13 percent.
266-14 (e) A rule adopted under Subsection (c) may apply only to a
266-15 person who files an application for a certificate after the date
266-16 the rule is adopted. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(j).)
266-17 Sec. 54.111. PENALTY FOR VIOLATION OF TITLE. If a
266-18 certificate holder fails to comply with a requirement of this
266-19 title, the commission may:
266-20 (1) revoke the holder's certificate;
266-21 (2) impose against the holder administrative penalties
266-22 under Subchapter B, Chapter 15; or
266-23 (3) take another action under Subchapter B, Chapter
266-24 15. (V.A.C.S. Art. 1446c-0, Sec. 3.2531(k).)
266-25 (Sections 54.112-54.150 reserved for expansion)
267-1 SUBCHAPTER D. SERVICE PROVIDER CERTIFICATE
267-2 OF OPERATING AUTHORITY
267-3 Sec. 54.151. DEFINITION. In this subchapter, "certificate"
267-4 means a service provider certificate of operating authority.
267-5 (New.)
267-6 Sec. 54.152. LIMITATION ON GRANT OF CERTIFICATE.
267-7 The commission may not grant a certificate to a
267-8 holder of a:
267-9 (1) certificate of convenience and necessity for the
267-10 same territory; or
267-11 (2) certificate of operating authority for the same
267-12 territory. (V.A.C.S. Art. 1446c-0, Sec. 3.2532(e) (part).)
267-13 Sec. 54.153. ELIGIBILITY FOR CERTIFICATE. (a) A company is
267-14 not eligible to obtain a certificate under this subchapter if the
267-15 company, together with affiliates, had more than six percent of the
267-16 total intrastate switched access minutes of use as measured for the
267-17 most recent 12-month period:
267-18 (1) that precedes the date the application is filed;
267-19 and
267-20 (2) for which the access information is available.
267-21 (b) The commission shall obtain information necessary to
267-22 determine eligibility from the incumbent local exchange telephone
267-23 companies and the applicant.
267-24 (c) The commission shall certify eligibility not later than
267-25 the 10th day after the date the application is filed.
267-26 (d) In this section:
267-27 (1) "Affiliate" means an entity that, directly or
268-1 indirectly, owns or controls, is owned or controlled by, or is
268-2 under common ownership or control with a company that applies for a
268-3 certificate under this subchapter.
268-4 (2) "Control" means to exercise substantial influence
268-5 over the policies and actions of another. (V.A.C.S. Art. 1446c-0,
268-6 Secs. 3.2532(b) (part), (h).)
268-7 Sec. 54.154. APPLICATION FOR CERTIFICATE. (a) The
268-8 commission may grant a certificate to encourage an innovative,
268-9 competitive, and entrepreneurial business to provide
268-10 telecommunications services.
268-11 (b) An applicant for a certificate must:
268-12 (1) file with the application:
268-13 (A) a sworn statement that the applicant has
268-14 applied for each municipal consent, franchise, or permit required
268-15 for the type of services and facilities for which the applicant has
268-16 applied; and
268-17 (B) a description of the services the applicant
268-18 will provide;
268-19 (2) show the areas in which the applicant will provide
268-20 the services;
268-21 (3) demonstrate that the applicant has the financial
268-22 and technical ability to provide services; and
268-23 (4) demonstrate that the services will meet the
268-24 requirements of this subchapter. (V.A.C.S. Art. 1446c-0, Secs.
268-25 3.2532(a), (c); 3.2555(a) (part).)
268-26 Sec. 54.155. GRANT OR DENIAL OF CERTIFICATE. (a) The
268-27 commission must grant or deny a certificate not later than the 60th
269-1 day after the date the application for the certificate is filed.
269-2 The commission may extend the deadline on good cause shown.
269-3 (b) The commission shall grant each certificate on a
269-4 nondiscriminatory basis after considering factors such as:
269-5 (1) the technical and financial qualifications of the
269-6 applicant; and
269-7 (2) the applicant's ability to meet the commission's
269-8 quality of service requirements. (V.A.C.S. Art. 1446c-0, Sec.
269-9 3.2532(b) (part).)
269-10 Sec. 54.156. RESALE OF SERVICES. (a) A certificate holder
269-11 may obtain services under the resale tariffs approved by the
269-12 commission under Subchapter C, Chapter 60, except in a certificated
269-13 area of a company that serves fewer than 31,000 access lines.
269-14 (b) A certificate holder may obtain for resale the monthly
269-15 recurring flat rate local exchange telephone service and associated
269-16 nonrecurring charges, including any mandatory extended area
269-17 service, of an incumbent local exchange company at a five percent
269-18 discount to the tariffed rate.
269-19 (c) The incumbent local exchange company shall sell a
269-20 feature service that may be provided to a customer in conjunction
269-21 with local exchange service at a five percent discount to the
269-22 tariffed rate, including any associated nonrecurring charge for
269-23 those services, provided that the incumbent local exchange company
269-24 shall make available to a certificate holder, at an additional five
269-25 percent discount, any discounts made available to customers of the
269-26 incumbent local exchange company who are similarly situated to the
269-27 customers of the certificate holder. In this subsection "feature
270-1 service" includes:
270-2 (1) toll restriction;
270-3 (2) call control options;
270-4 (3) tone dialing;
270-5 (4) custom calling; and
270-6 (5) caller identification.
270-7 (d) A certificate holder and an incumbent local exchange
270-8 company may agree to a rate lower than the tariffed rate or
270-9 discounted rate.
270-10 (e) The five percent discounts provided by this section do
270-11 not apply in an exchange of a company that has fewer than 31,000
270-12 access lines in this state.
270-13 (f) If the tariffed rate for a resold service changes, the
270-14 five percent discount prescribed by this section applies to the
270-15 changed rate. The commission may not, for certificate holders,
270-16 create a special class for purposes of resold services.
270-17 (g) A certificate holder:
270-18 (1) may not use a resold flat rate local exchange
270-19 telephone service to avoid the rates and terms of an incumbent
270-20 local exchange company's tariffs;
270-21 (2) may not terminate both flat rate local exchange
270-22 telephone service and services obtained under the resale tariff
270-23 approved under Section 60.041 on the same end user customer's
270-24 premises;
270-25 (3) may not use resold flat rate local exchange
270-26 telephone services to provide access services to another
270-27 interexchange carrier, cellular carrier, competitive access
271-1 provider, or retail telecommunications provider, but may permit
271-2 customers to use resold local exchange telephone services to access
271-3 such a carrier or provider;
271-4 (4) may sell the flat rate local exchange telephone
271-5 service only to the same class of customers to which the incumbent
271-6 local exchange company sells that service;
271-7 (5) may obtain services offered by or negotiated with
271-8 a holder of a certificate of convenience and necessity or a
271-9 certificate of operating authority; and
271-10 (6) may obtain for resale single or multiple line flat
271-11 rate intraLATA calling service when provided by the local exchange
271-12 company at the tariffed rate for online digital communications.
271-13 (V.A.C.S. Art. 1446c-0, Sec. 3.2532(d) (part).)
271-14 Sec. 54.157. OPTIONAL EXTENDED AREA SERVICE OR EXPANDED
271-15 LOCAL CALLING SERVICE. (a) A certificate holder may purchase for
271-16 resale:
271-17 (1) optional extended area service; and
271-18 (2) expanded local calling service.
271-19 (b) The purchase of optional extended area service and
271-20 expanded local calling service may not be discounted. (V.A.C.S.
271-21 Art. 1446c-0, Sec. 3.2532(d) (part).)
271-22 Sec. 54.158. INTERFERENCE WITH RESOLD SERVICES PROHIBITED.
271-23 An incumbent local exchange company may not:
271-24 (1) delay providing or maintaining a service provided
271-25 under this subchapter;
271-26 (2) degrade the quality of access the company provides
271-27 to another provider;
272-1 (3) impair the speed, quality, or efficiency of a line
272-2 used by another provider;
272-3 (4) fail to fully disclose in a timely manner after a
272-4 request all available information necessary for a certificate
272-5 holder to provide resale services; or
272-6 (5) refuse to take a reasonable action to allow a
272-7 certificate holder efficient access to the company's ordering,
272-8 billing, or repair management system. (V.A.C.S. Art. 1446c-0, Sec.
272-9 3.2532(g).)
272-10 Sec. 54.159. RETENTION OF ACCESS SERVICE AND INTRALATA TOLL
272-11 SERVICE. An incumbent local exchange company that sells flat rate
272-12 local exchange telephone service to a certificate holder may retain
272-13 all access service and "1-plus" intraLATA toll service that
272-14 originates over the resold flat rate local exchange telephone
272-15 service. (V.A.C.S. Art. 1446c-0, Sec. 3.2532(f).)
272-16 (Sections 54.160-54.200 reserved for expansion)
272-17 SUBCHAPTER E. MUNICIPALITIES
272-18 Sec. 54.201. CERTIFICATION PROHIBITED. The commission may
272-19 not grant to a municipality a:
272-20 (1) certificate of convenience and necessity;
272-21 (2) certificate of operating authority; or
272-22 (3) service provider certificate of operating
272-23 authority. (V.A.C.S. Art. 1446c-0, Sec. 3.251(d) (part).)
272-24 Sec. 54.202. PROHIBITED MUNICIPAL SERVICES. (a) A
272-25 municipality or municipal electric system may not offer for sale to
272-26 the public:
272-27 (1) a service for which a certificate of convenience
273-1 and necessity, a certificate of operating authority, or a service
273-2 provider certificate of operating authority is required; or
273-3 (2) a nonswitched telecommunications service used to
273-4 connect a customer's premises with:
273-5 (A) another customer's premises within the
273-6 exchange; or
273-7 (B) a long distance provider that serves the
273-8 exchange.
273-9 (b) Subsection (a) applies to a service offered either
273-10 directly or indirectly through a telecommunications provider.
273-11 (V.A.C.S. Art. 1446c-0, Sec. 3.251(d) (part).)
273-12 Sec. 54.203. SERVICE IN ANNEXED OR INCORPORATED AREA. (a)
273-13 If an area is or will be included within a municipality as the
273-14 result of annexation, incorporation, or another reason, each
273-15 telecommunications utility that holds or is entitled to hold a
273-16 certificate under this title to provide service or operate a
273-17 facility in the area before the inclusion has the right to continue
273-18 to provide the service or operate the facility and extend service
273-19 in the utility's certificated area within the annexed or
273-20 incorporated area under the rights granted by the certificate and
273-21 this title.
273-22 (b) Notwithstanding any other law, a certificated
273-23 telecommunications utility has the right to:
273-24 (1) continue and extend service within the utility's
273-25 certificated area; and
273-26 (2) use roads, streets, highways, alleys, and public
273-27 property to furnish retail utility service.
274-1 (c) The governing body of a municipality may require a
274-2 certificated telecommunications utility to relocate the utility's
274-3 facility at the utility's expense to permit the widening or
274-4 straightening of a street by:
274-5 (1) giving the utility 30 days' notice; and
274-6 (2) specifying the new location for the facility along
274-7 the right-of-way of the street.
274-8 (d) This section does not limit the power of a city, town,
274-9 or village to incorporate or of a municipality to extend its
274-10 boundaries by annexation. (V.A.C.S. Art. 1446c-0, Sec. 3.255.)
274-11 Sec. 54.204. DISCRIMINATION BY MUNICIPALITY PROHIBITED. (a)
274-12 Notwithstanding Section 14.008, a municipality may not discriminate
274-13 against a telecommunications utility regarding:
274-14 (1) the authorization or placement of a
274-15 telecommunications facility in a public right-of-way;
274-16 (2) access to a building; or
274-17 (3) a municipal utility pole attachment rate or term,
274-18 to the extent not addressed by federal law.
274-19 (b) In granting consent, a franchise, or a permit for the
274-20 use of a public street, alley, or right-of-way within its municipal
274-21 boundaries, a municipality may not discriminate in favor of or
274-22 against a telecommunications utility that holds or has applied for
274-23 a certificate of convenience and necessity, a certificate of
274-24 operating authority, or a service provider certificate of operating
274-25 authority regarding:
274-26 (1) municipal utility pole attachment or underground
274-27 conduit rates or terms, to the extent not addressed by federal law;
275-1 or
275-2 (2) the authorization, placement, replacement, or
275-3 removal of a telecommunications facility in a public right-of-way
275-4 and the reasonable compensation for the authorization, placement,
275-5 replacement, or removal regardless of whether the compensation is
275-6 in the form of:
275-7 (A) money;
275-8 (B) services;
275-9 (C) use of facilities; or
275-10 (D) another kind of consideration.
275-11 (c) Notwithstanding Subsection (b)(1), a municipal utility
275-12 may not charge a pole attachment rate or underground conduit rate
275-13 that exceeds the fee the utility would be permitted to charge if
275-14 the utility's rates were regulated under federal law and the rules
275-15 of the Federal Communications Commission.
275-16 (d) Notwithstanding any other law, the commission has the
275-17 jurisdiction necessary to enforce this section. (V.A.C.S.
275-18 Art. 1446c-0, Secs. 3.2555(a) (part), (b), (e).)
275-19 Sec. 54.205. MUNICIPALITY'S RIGHT TO CONTROL ACCESS. This
275-20 title does not restrict a municipality's historical right to
275-21 control and receive reasonable compensation for access to the
275-22 municipality's public streets, alleys, or rights-of-way or to other
275-23 public property. (V.A.C.S. Art. 1446c-0, Sec. 3.2555(f).)
275-24 Sec. 54.206. RECOVERY OF MUNICIPAL FEE. (a) A holder of a
275-25 certificate of convenience and necessity, a certificate of
275-26 operating authority, or a service provider certificate of operating
275-27 authority has the right to collect a fee that a municipality
276-1 imposes under Section 54.204 or 54.205 through a pro rata charge to
276-2 the customers in the boundaries of the municipality.
276-3 (b) The charge may be shown on the customer's bill as a
276-4 separate line item. (V.A.C.S. Art. 1446c-0, Sec. 3.2555(h).)
276-5 (Sections 54.207-54.250 reserved for expansion)
276-6 SUBCHAPTER F. REGULATION OF SERVICES, AREAS, AND FACILITIES
276-7 Sec. 54.251. PROVISION OF SERVICE. (a) Except as provided
276-8 by this section, Section 54.252, Section 54.253, and Section
276-9 54.254, a telecommunications utility that holds a certificate of
276-10 convenience and necessity or a certificate of operating authority
276-11 shall:
276-12 (1) offer all basic local telecommunications services
276-13 to each customer in the utility's certificated area; and
276-14 (2) provide continuous and adequate service in that
276-15 area.
276-16 (b) The holder of a certificate of convenience and necessity
276-17 for an area has the obligations of a provider of last resort
276-18 regardless of whether another provider has a certificate of
276-19 operating authority for that area. (V.A.C.S. Art. 1446c-0, Sec.
276-20 3.258(a).)
276-21 Sec. 54.252. GROUNDS FOR REDUCTION OF SERVICE BY HOLDER OF
276-22 CERTIFICATE OF CONVENIENCE AND NECESSITY. (a) Unless the
276-23 commission issues a certificate that the present and future
276-24 convenience and necessity will not be adversely affected, the
276-25 holder of a certificate of convenience and necessity may not
276-26 discontinue, reduce, or impair service to any part of the holder's
276-27 certificated service area except for:
277-1 (1) nonpayment of charges;
277-2 (2) nonuse; or
277-3 (3) another similar reason that occurs in the usual
277-4 course of business.
277-5 (b) A discontinuance, reduction, or impairment of service
277-6 must be in compliance with and is subject to any condition or
277-7 restriction the commission prescribes. (V.A.C.S. Art. 1446c-0,
277-8 Secs. 3.258(b), (c).)
277-9 Sec. 54.253. DISCONTINUATION OF SERVICE BY CERTAIN
277-10 CERTIFICATE HOLDERS. (a) A telecommunications utility that holds
277-11 a certificate of operating authority or a service provider
277-12 certificate of operating authority may:
277-13 (1) cease operations in the utility's certificated
277-14 area; or
277-15 (2) discontinue an optional service that is not
277-16 essential to providing basic local telecommunications service.
277-17 (b) Before the telecommunications utility ceases operations
277-18 or discontinues an optional service, the utility, in the manner
277-19 required by the commission, must give notice of the intended action
277-20 to:
277-21 (1) the commission; and
277-22 (2) each affected customer.
277-23 (c) The telecommunications utility is entitled to
277-24 discontinue an optional service on or after the 61st day after the
277-25 date the utility gives the notice.
277-26 (d) The telecommunications utility may not cease operations
277-27 in its certificated area unless:
278-1 (1) another provider of basic local telecommunications
278-2 services has adequate facilities and capacity to serve the
278-3 customers in the certificated area; and
278-4 (2) the commission authorizes the utility to cease
278-5 operations.
278-6 (e) The commission may not authorize the telecommunications
278-7 utility to cease operations under Subsection (d) before the 61st
278-8 day after the date the utility gives the notice required by
278-9 Subsection (b). Unless the commission receives a complaint from an
278-10 affected person, the commission may enter an order under this
278-11 subsection administratively. (V.A.C.S. Art. 1446c-0, Sec. 3.2595.)
278-12 Sec. 54.254. REQUIRED REFUSAL OF SERVICE. A holder of a
278-13 certificate of convenience and necessity, a certificate of
278-14 operating authority, or a service provider certificate of operating
278-15 authority shall refuse to serve a customer in the holder's
278-16 certificated area if the holder is prohibited from providing the
278-17 service under Section 212.012 or 232.029, Local Government Code.
278-18 (V.A.C.S. Art. 1446c-0, Sec. 3.259.)
278-19 Sec. 54.255. TRANSFER OF CERTAIN CERTIFICATES. (a) A
278-20 telecommunications utility may sell, assign, or lease a certificate
278-21 of convenience and necessity or a certificate of operating
278-22 authority or a right obtained under such a certificate if the
278-23 commission determines that the purchaser, assignee, or lessee can
278-24 provide adequate service.
278-25 (b) The sale, assignment, or lease of a certificate or a
278-26 right is subject to conditions the commission prescribes.
278-27 (V.A.C.S. Art. 1446c-0, Sec. 3.260.)
279-1 Sec. 54.256. APPLICATION OF CONTRACTS. A contract approved
279-2 by the commission between telecommunications utilities that
279-3 designates areas and customers to be served by the utilities:
279-4 (1) is valid and enforceable; and
279-5 (2) shall be incorporated into the appropriate areas
279-6 of certification. (V.A.C.S. Art. 1446c-0, Sec. 3.256.)
279-7 Sec. 54.257. INTERFERENCE WITH ANOTHER TELECOMMUNICATIONS
279-8 UTILITY. If a telecommunications utility constructing or extending
279-9 the utility's lines, plant, or system interferes or attempts to
279-10 interfere with the operation of a line, plant, or system of another
279-11 utility, the commission by order may:
279-12 (1) prohibit the construction or extension; or
279-13 (2) prescribe terms for locating the affected lines,
279-14 plants, or systems. (V.A.C.S. Art. 1446c-0, Sec. 3.261.)
279-15 Sec. 54.258. MAPS. A public utility shall file with the
279-16 commission one or more maps that show each utility facility and
279-17 that separately illustrate each utility facility for transmission
279-18 or distribution of the utility's services on a date the commission
279-19 orders. (V.A.C.S. Art. 1446c-0, Sec. 3.253(b).)
279-20 Sec. 54.259. DISCRIMINATION BY PROPERTY OWNER PROHIBITED.
279-21 (a) If a telecommunications utility holds a consent, franchise, or
279-22 permit as determined to be the appropriate grants of authority by
279-23 the municipality and holds a certificate if required by this title,
279-24 a public or private property owner may not:
279-25 (1) prevent the utility from installing on the owner's
279-26 property a telecommunications service facility a tenant requests;
279-27 (2) interfere with the utility's installation on the
280-1 owner's property of a telecommunications service facility a tenant
280-2 requests;
280-3 (3) discriminate against such a utility regarding
280-4 installation, terms, or compensation of a telecommunications
280-5 service facility to a tenant on the owner's property;
280-6 (4) demand or accept an unreasonable payment of any
280-7 kind from a tenant or the utility for allowing the utility on or in
280-8 the owner's property; or
280-9 (5) discriminate in favor of or against a tenant in
280-10 any manner, including rental charge discrimination, because of the
280-11 utility from which the tenant receives a telecommunications
280-12 service.
280-13 (b) Subsection (a) does not apply to an institution of
280-14 higher education. In this subsection, "institution of higher
280-15 education" means:
280-16 (1) an institution of higher education as defined by
280-17 Section 61.003, Education Code; or
280-18 (2) a private or independent institution of higher
280-19 education as defined by Section 61.003, Education Code.
280-20 (c) Notwithstanding any other law, the commission has the
280-21 jurisdiction to enforce this section. (V.A.C.S. Art. 1446c-0,
280-22 Secs. 3.2555(c), (e), (g).)
280-23 Sec. 54.260. PROPERTY OWNER'S CONDITIONS. (a)
280-24 Notwithstanding Section 54.259, if a telecommunications utility
280-25 holds a municipal consent, franchise, or permit as determined to be
280-26 the appropriate grant of authority by the municipality and holds a
280-27 certificate if required by this title, a public or private property
281-1 owner may:
281-2 (1) impose a condition on the utility that is
281-3 reasonably necessary to protect:
281-4 (A) the safety, security, appearance, and
281-5 condition of the property; and
281-6 (B) the safety and convenience of other persons;
281-7 (2) impose a reasonable limitation on the time at
281-8 which the utility may have access to the property to install a
281-9 telecommunications service facility;
281-10 (3) impose a reasonable limitation on the number of
281-11 such utilities that have access to the owner's property, if the
281-12 owner can demonstrate a space constraint that requires the
281-13 limitation;
281-14 (4) require the utility to agree to indemnify the
281-15 owner for damage caused installing, operating, or removing a
281-16 facility;
281-17 (5) require the tenant or the utility to bear the
281-18 entire cost of installing, operating, or removing a facility; and
281-19 (6) require the utility to pay compensation that is
281-20 reasonable and nondiscriminatory among such telecommunications
281-21 utilities.
281-22 (b) Notwithstanding any other law, the commission has the
281-23 jurisdiction to enforce this section. (V.A.C.S. Art. 1446c-0,
281-24 Secs. 3.2555(d), (e).)
281-25 Sec. 54.261. SHARED TENANT SERVICES CONTRACT. Sections
281-26 54.259 and 54.260 do not require a public or private property owner
281-27 to enter into a contract with a telecommunications utility to
282-1 provide shared tenant services on a property. (V.A.C.S.
282-2 Art. 1446c-0, Sec. 3.2555(i).)
282-3 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES
282-4 SUBCHAPTER A. GENERAL PROVISIONS
282-5 Sec. 55.001. GENERAL STANDARD
282-6 Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS
282-7 Sec. 55.003. RULE OR STANDARD
282-8 Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE
282-9 CHANGE
282-10 Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
282-11 SERVICE PROHIBITED
282-12 Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION
282-13 Sec. 55.007. MINIMUM SERVICES
282-14 Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING
282-15 SERVICE
282-16 Sec. 55.009. INTRALATA CALLS
282-17 Sec. 55.010. BILLING FOR SERVICE TO THE STATE
282-18 (Sections 55.011-55.020 reserved for expansion)
282-19 SUBCHAPTER B. EXTENDED AREA SERVICE
282-20 Sec. 55.021. EXTENDED AREA SERVICE
282-21 Sec. 55.022. MANDATORY SERVICE
282-22 Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE
282-23 Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE
282-24 Sec. 55.025. HUNTING SERVICE
282-25 (Sections 55.026-55.040 reserved for expansion)
282-26 SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS
282-27 Sec. 55.041. DEFINITIONS
283-1 Sec. 55.042. CONTIGUOUS EXCHANGE
283-2 Sec. 55.043. SPLITTING EXCHANGES PROHIBITED
283-3 Sec. 55.044. EXEMPTION
283-4 Sec. 55.045. ELIGIBILITY TO PETITION
283-5 Sec. 55.046. PETITION REQUIREMENTS
283-6 Sec. 55.047. BALLOTING AND CONSIDERATION
283-7 Sec. 55.048. CHARGES
283-8 (Sections 55.049-55.080 reserved for expansion)
283-9 SUBCHAPTER D. OPERATOR SERVICE PROVIDERS
283-10 Sec. 55.081. DEFINITION
283-11 Sec. 55.082. APPLICABILITY
283-12 Sec. 55.083. RULES AND PROCEDURES
283-13 Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE
283-14 Sec. 55.085. CONNECTION ANNOUNCEMENT
283-15 Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL
283-16 EXCHANGE COMPANY OPERATOR
283-17 Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER
283-18 UTILITIES REQUIRED
283-19 Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED
283-20 Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON VIOLATION
283-21 (Sections 55.090-55.100 reserved for expansion)
283-22 SUBCHAPTER E. CALLER IDENTIFICATION SERVICE
283-23 Sec. 55.101. DEFINITIONS
283-24 Sec. 55.102. APPLICABILITY
283-25 Sec. 55.103. PROVISION OF SERVICE
283-26 Sec. 55.104. USE OF INFORMATION
283-27 Sec. 55.105. PER-CALL BLOCKING
284-1 Sec. 55.106. PER-LINE BLOCKING
284-2 Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY
284-3 Sec. 55.108. CALLER ID CONSUMER EDUCATION PANEL
284-4 Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS
284-5 Sec. 55.110. REPORT OF BLOCKING FAILURE
284-6 (Sections 55.111-55.120 reserved for expansion)
284-7 SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES
284-8 Sec. 55.121. DEFINITION
284-9 Sec. 55.122. EXEMPTIONS
284-10 Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS
284-11 UTILITY
284-12 Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING
284-13 Sec. 55.125. HOURS WHEN USE PROHIBITED
284-14 Sec. 55.126. DEVICE DISCONNECTION
284-15 Sec. 55.127. CONTENTS OF RECORDED MESSAGE
284-16 Sec. 55.128. DURATION OF RECORDED MESSAGE
284-17 Sec. 55.129. PERMIT REQUIRED
284-18 Sec. 55.130. PERMIT
284-19 Sec. 55.131. PERMIT FEE
284-20 Sec. 55.132. NOTIFICATION OF CHANGE
284-21 Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY
284-22 Sec. 55.134. COMPLAINTS AND ENFORCEMENT
284-23 Sec. 55.135. REVOCATION OF PERMIT
284-24 Sec. 55.136. DISCONNECTION OF SERVICE
284-25 Sec. 55.137. ADMINISTRATIVE PENALTY
284-26 Sec. 55.138. CRIMINAL PENALTY
284-27 (Sections 55.139-55.150 reserved for expansion)
285-1 SUBCHAPTER G. TELEPHONE SOLICITATION
285-2 Sec. 55.151. COMPLIANCE WITH REQUEST NOT TO BE CALLED
285-3 Sec. 55.152. NOTICE TO CONSUMERS
285-4 (Sections 55.153-55.170 reserved for expansion)
285-5 SUBCHAPTER H. PAY TELEPHONES
285-6 Sec. 55.171. DEFINITION
285-7 Sec. 55.172. LIMITATION
285-8 Sec. 55.173. REGISTRATION
285-9 Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS
285-10 Sec. 55.175. CHARGE FOR LOCAL CALLS
285-11 Sec. 55.176. CHARGE FOR 800-TYPE CALLS
285-12 Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR
285-13 OPERATOR-ASSISTED CALLS
285-14 Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS
285-15 Sec. 55.179. INFORMATION REQUIREMENTS
285-16 Sec. 55.180. VIOLATIONS
285-17 (Sections 55.181-55.200 reserved for expansion)
285-18 SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE
285-19 Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE
285-20 Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS
285-21 UTILITY
285-22 Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER
285-23 (Sections 55.204-55.250 reserved for expansion)
285-24 SUBCHAPTER J. TELECOMMUNICATIONS SERVICE BY CERTAIN PROVIDERS
285-25 Sec. 55.251. CHARGE FOR HOTEL OR MOTEL CALL
285-26 Sec. 55.252. 900 SERVICE USED BY PROBATIONERS OR PAROLEES
285-27 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES
286-1 SUBCHAPTER A. GENERAL PROVISIONS
286-2 Sec. 55.001. GENERAL STANDARD. A public utility shall
286-3 furnish service, instrumentalities, and facilities that are safe,
286-4 adequate, efficient, and reasonable. (V.A.C.S. Art. 1446c-0, Sec.
286-5 3.155(a).)
286-6 Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS. The
286-7 commission, on its own motion or on complaint and after reasonable
286-8 notice and hearing, may:
286-9 (1) adopt just and reasonable standards,
286-10 classifications, rules, or practices a public utility must follow
286-11 in furnishing a service;
286-12 (2) adopt adequate and reasonable standards for
286-13 measuring a condition, including quantity and quality, relating to
286-14 the furnishing of a service;
286-15 (3) adopt reasonable rules for examining, testing, and
286-16 measuring a service; and
286-17 (4) adopt or approve reasonable rules, specifications,
286-18 and standards to ensure the accuracy of equipment, including meters
286-19 and instruments, used to measure a service. (V.A.C.S.
286-20 Art. 1446c-0, Sec. 3.155(b).)
286-21 Sec. 55.003. RULE OR STANDARD. (a) A public utility may
286-22 not impose a rule except as provided by this title.
286-23 (b) A public utility may file with the commission a
286-24 standard, classification, rule, or practice the utility follows.
286-25 (c) The standard, classification, rule, or practice
286-26 continues in force until:
286-27 (1) amended by the utility; or
287-1 (2) changed by the commission as provided by this
287-2 subtitle. (V.A.C.S. Art. 1446c-0, Secs. 3.153 (part), 3.155(c).)
287-3 Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE CHANGE.
287-4 (a) To make a change in an incumbent local exchange company's
287-5 tariffed rules or practices that does not affect the company's
287-6 charges or rates, the company must file the proposed change with
287-7 the commission at least 35 days before the effective date of the
287-8 change. The commission may require the incumbent local exchange
287-9 company to provide to ratepayers appropriate notice as determined
287-10 by the commission.
287-11 (b) The commission, on complaint by an affected person or on
287-12 its own motion and after reasonable notice, may hold a hearing to
287-13 determine the propriety of a change proposed under this section.
287-14 Pending the hearing and decision, the commission may suspend the
287-15 change for not longer than 120 days after the date the change would
287-16 otherwise be effective. The commission shall approve, deny, or
287-17 modify the change before the period of suspension expires.
287-18 (c) In a proceeding under this section, the incumbent local
287-19 exchange company has the burden of proving the proposed change:
287-20 (1) is in the public interest; and
287-21 (2) complies with this title. (V.A.C.S. Art. 1446c-0,
287-22 Sec. 3.212.)
287-23 Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING
287-24 SERVICE PROHIBITED. In providing a service to persons in a
287-25 classification, a public utility may not:
287-26 (1) grant an unreasonable preference or advantage to a
287-27 person in the classification; or
288-1 (2) subject a person in the classification to an
288-2 unreasonable prejudice or disadvantage. (V.A.C.S. Art. 1446c-0,
288-3 Sec. 3.215 (part).)
288-4 Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION.
288-5 A public utility may not:
288-6 (1) discriminate against a person who sells or leases
288-7 equipment or performs services in competition with the public
288-8 utility; or
288-9 (2) engage in a practice that tends to restrict or
288-10 impair that competition. (V.A.C.S. Art. 1446c-0, Sec. 3.217.)
288-11 Sec. 55.007. MINIMUM SERVICES. (a) The commission shall
288-12 require a holder of a certificate of convenience and necessity or a
288-13 certificate of operating authority to provide at the applicable
288-14 tariff rate, if any, to each customer, regardless of race, national
288-15 origin, income, or residence in an urban or rural area:
288-16 (1) single-party service;
288-17 (2) tone-dialing service;
288-18 (3) basic custom calling features;
288-19 (4) equal access for an interLATA interexchange
288-20 carrier on a bona fide request; and
288-21 (5) digital switching capability in an exchange on
288-22 customer request, provided by a digital switch in the exchange or
288-23 by connection to a digital switch in another exchange.
288-24 (b) Notwithstanding Subsection (a), an electing incumbent
288-25 local exchange company serving more than 175,000 but fewer than
288-26 1,500,000 access lines on January 1, 1995, shall install a digital
288-27 switch in each central office that serves an exchange of fewer than
289-1 20,000 access lines.
289-2 (c) The commission may temporarily waive a requirement
289-3 imposed by Subsection (a) or (b) on a showing of good cause.
289-4 (d) The commission may not consider the cost of implementing
289-5 this section in determining whether an electing company is entitled
289-6 to:
289-7 (1) a rate increase under Chapter 58 or 59; or
289-8 (2) increased universal service funds under Subchapter
289-9 B, Chapter 56.
289-10 (e) A holder of a certificate of convenience and necessity
289-11 or a certificate of operating authority shall comply with
289-12 Subsection (a) not later than December 31, 2000. This subsection
289-13 expires September 1, 2003.
289-14 (f) An electing incumbent local exchange company subject to
289-15 Subsection (b) shall comply with that subsection not later than
289-16 December 31, 1998. This subsection expires September 1, 2001.
289-17 (V.A.C.S. Art. 1446c-0, Secs. 3.1555(a), (b), (c).)
289-18 Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING
289-19 SERVICE. The commission, after notice and hearing, may:
289-20 (1) order a public utility to provide specified
289-21 improvements in its service in a specified area if:
289-22 (A) service in the area is inadequate or
289-23 substantially inferior to service in a comparable area; and
289-24 (B) requiring the company to provide the
289-25 improved service is reasonable; or
289-26 (2) order two or more utilities to establish specified
289-27 facilities for interconnecting service. (V.A.C.S. Art. 1446c-0,
290-1 Sec. 3.262(a) (part).)
290-2 Sec. 55.009. INTRALATA CALLS. (a) If federal law prohibits
290-3 a local exchange company in this state from providing interLATA
290-4 telecommunications services, the local exchange companies in this
290-5 state designated or de facto authorized to receive a "0-plus" or
290-6 "1-plus" dialed intraLATA call are exclusively designated or
290-7 authorized to receive such a call.
290-8 (b) A telecommunications utility operating under a
290-9 certificate of operating authority or a service provider
290-10 certificate of operating authority is de facto authorized to
290-11 receive a "0-plus" or "1-plus" dialed intraLATA call on the date
290-12 the utility receives its certificate, to the extent the utility is
290-13 not restricted by Section 54.159.
290-14 (c) If federal law allows all local exchange companies to
290-15 provide interLATA telecommunications services, the commission shall
290-16 ensure that:
290-17 (1) a customer may designate a provider of the
290-18 customer's choice to carry the customer's "0-plus" and "1-plus"
290-19 dialed intraLATA calls; and
290-20 (2) equal access in the public network is implemented
290-21 to allow the provider to carry those calls. (V.A.C.S.
290-22 Art. 1446c-0, Sec. 3.219.)
290-23 Sec. 55.010. BILLING FOR SERVICE TO THE STATE. A
290-24 telecommunications utility providing service to the state,
290-25 including service to an agency in any branch of state government,
290-26 may not impose a fee, a penalty, interest, or any other charge for
290-27 delinquent payment of a bill for that service. (V.A.C.S.
291-1 Art. 1446c-0, Sec. 3.218.)
291-2 (Sections 55.011-55.020 reserved for expansion)
291-3 SUBCHAPTER B. EXTENDED AREA SERVICE
291-4 Sec. 55.021. EXTENDED AREA SERVICE. After notice and a
291-5 hearing, the commission may order one or more local exchange
291-6 companies that are dominant carriers to provide:
291-7 (1) mandatory extended area service in accordance with
291-8 Section 55.022; or
291-9 (2) optional extended area service in accordance with
291-10 Section 55.023. (V.A.C.S. Art. 1446c-0, Sec. 3.262(a) (part).)
291-11 Sec. 55.022. MANDATORY SERVICE. The commission may order
291-12 mandatory extended area service in a specified metropolitan area
291-13 if:
291-14 (1) there is a sufficient community of interest in the
291-15 area; and
291-16 (2) the company can reasonably provide the service.
291-17 (V.A.C.S. Art. 1446c-0, Sec. 3.262(a) (part).)
291-18 Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE. (a) The
291-19 commission may order optional extended area service in a specified
291-20 calling area if:
291-21 (1) each affected company and the representatives of
291-22 at least one political subdivision in the proposed calling area
291-23 agree to the service; and
291-24 (2) the proposed common calling area has a single,
291-25 continuous boundary.
291-26 (b) The commission may not adopt rules that diminish in any
291-27 manner the ability of an affected company or a political
292-1 subdivision to enter into joint agreements for optional extended
292-2 area service under this section.
292-3 (c) In this section, "political subdivision" means:
292-4 (1) a county;
292-5 (2) a municipality; or
292-6 (3) an unincorporated town or village that has 275 or
292-7 more access lines. (V.A.C.S. Art. 1446c-0, Secs. 3.262(a) (part),
292-8 (b).)
292-9 Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE. (a) An
292-10 incumbent local exchange company that provides mandatory two-way
292-11 extended area service to customers shall impose for that service a
292-12 separately stated monthly charge of $3.50 a line for a residential
292-13 customer and $7 a line for a business customer if, on September 1,
292-14 1995, the company:
292-15 (1) served more than 1,000,000 access lines in this
292-16 state; and
292-17 (2) imposed a separately stated monthly charge for
292-18 mandatory two-way extended area service of more than $3.50 a line
292-19 for a residential customer and more than $7 a line for a business
292-20 customer.
292-21 (b) The company shall recover all costs incurred and all
292-22 loss of revenue that results from imposition of the rates
292-23 prescribed by Subsection (a) in the manner prescribed by Section
292-24 55.048(c).
292-25 (c) The rate limitation prescribed by Subsection (a) does
292-26 not apply to a separately stated monthly charge for:
292-27 (1) extended area service in or into a metropolitan
293-1 exchange; or
293-2 (2) extended metropolitan service. (V.A.C.S.
293-3 Art. 1446c-0, Sec. 3.308.)
293-4 Sec. 55.025. HUNTING SERVICE. (a) A local exchange company
293-5 shall make available, at a reasonable tariffed rate, hunting
293-6 service from local exchange lines to extended metropolitan service
293-7 lines.
293-8 (b) The company may not require a customer to purchase
293-9 additional extended metropolitan service to obtain the hunting
293-10 service. (V.A.C.S. Art. 1446c-0, Sec. 3.311.)
293-11 (Sections 55.026-55.040 reserved for expansion)
293-12 SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS
293-13 Sec. 55.041. DEFINITIONS. In this subchapter, "metropolitan
293-14 exchange," "local calling area of a metropolitan exchange," and
293-15 "exchange" have the meanings and boundaries assigned by the
293-16 commission on September 1, 1993. (V.A.C.S. Art. 1446c-0, Sec.
293-17 3.304(b)(2) (part).)
293-18 Sec. 55.042. CONTIGUOUS EXCHANGE. The commission may expand
293-19 a toll-free local calling area into an exchange that is not in a
293-20 metropolitan exchange but is in a local calling area that is
293-21 contiguous to a metropolitan exchange that the commission
293-22 determines has a community of interest with the exchange for which
293-23 a petition is filed under this subchapter. (V.A.C.S. Art. 1446c-0,
293-24 Sec. 3.304(b)(2) (part).)
293-25 Sec. 55.043. SPLITTING EXCHANGES PROHIBITED.
293-26 Notwithstanding any other provision of this subchapter, the
293-27 commission may not split a petitioning or requested exchange in
294-1 establishing a toll-free local calling area. (V.A.C.S.
294-2 Art. 1446c-0, Sec. 3.304(b)(2) (part).)
294-3 Sec. 55.044. EXEMPTION. (a) The commission may not require
294-4 an incumbent local exchange company serving the petitioning or
294-5 requested exchange to expand the company's toll-free local calling
294-6 area under this subchapter if:
294-7 (1) the incumbent local exchange company has fewer
294-8 than 10,000 access lines;
294-9 (2) the petitioning or requested exchange is served by
294-10 a telephone cooperative corporation;
294-11 (3) extended area service or extended metropolitan
294-12 service is available between the exchanges;
294-13 (4) the petitioning or requested exchange is a
294-14 metropolitan exchange; or
294-15 (5) the commission determines that the company has
294-16 shown that to serve the area is not geographically or
294-17 technologically feasible.
294-18 (b) To promote the wide dispersion of pay telephones, the
294-19 commission may:
294-20 (1) exempt pay telephones from this subchapter; or
294-21 (2) change the rates charged for calls from pay
294-22 telephones. (V.A.C.S. Art. 1446c-0, Secs. 3.304(b)(1), (c).)
294-23 Sec. 55.045. ELIGIBILITY TO PETITION. The telephone
294-24 subscribers of an incumbent local exchange company exchange that
294-25 serves not more than 10,000 access lines may petition the
294-26 commission for expansion of the company's toll-free local calling
294-27 area if:
295-1 (1) the petitioning exchange's central switching
295-2 office is located within 22 miles, using vertical and horizontal
295-3 geographic coordinates, of the central switching office of the
295-4 exchange requested for expanded local calling service; or
295-5 (2) the petitioning exchange's central office is not
295-6 more than 50 miles from the central office of the exchange
295-7 requested for expanded local calling service and the exchanges
295-8 share a community of interest. (V.A.C.S. Art. 1446c-0, Sec.
295-9 3.304(a) (part).)
295-10 Sec. 55.046. PETITION REQUIREMENTS. (a) A petition under
295-11 this subchapter must be signed by a number of the exchange's
295-12 subscribers equal at least to the lesser of 100 of the exchange's
295-13 subscribers or five percent of the exchange's subscribers.
295-14 (b) An exchange that petitions under Section 55.045(2) must
295-15 demonstrate in the petition that the exchange shares a community of
295-16 interest with the requested exchange.
295-17 (c) For purposes of this section, the relationships between
295-18 exchanges that create a community of interest include:
295-19 (1) a relationship because of schools, hospitals,
295-20 local governments, or business centers; or
295-21 (2) other relationships that would make the
295-22 unavailability of expanded local calling service a hardship for the
295-23 residents of the area. (V.A.C.S. Art. 1446c-0, Sec. 3.304(a)
295-24 (part).)
295-25 Sec. 55.047. BALLOTING AND CONSIDERATION. (a) If the
295-26 commission receives a petition that complies with this subchapter,
295-27 the commission shall order the incumbent local exchange company to
296-1 provide ballots to the subscribers in the petitioning exchange.
296-2 (b) The commission shall consider the request for expansion
296-3 of the toll-free local calling area if at least 70 percent of the
296-4 subscribers who vote do so in favor of the expansion.
296-5 (c) The commission by rule shall provide for an expedited
296-6 hearing on the issue of expansion. (V.A.C.S. Art. 1446c-0, Sec.
296-7 3.304(a) (part).)
296-8 Sec. 55.048. CHARGES. (a) The incumbent local exchange
296-9 company shall recover all costs incurred and all loss of revenue
296-10 from an expansion of a toll-free local calling area under this
296-11 subchapter through a request other than a revenue requirement
296-12 showing by imposing a monthly fee under Subsection (b) or (c), or
296-13 both.
296-14 (b) The company may impose a monthly fee against each
296-15 residential and business customer in the petitioning exchange. The
296-16 fee may not exceed $3.50 a line for a residential customer and $7 a
296-17 line for a business customer unless the customer's toll-free local
296-18 calling area includes more than five exchanges. The company may
296-19 impose an additional monthly fee of $1.50 for each exchange in
296-20 excess of five. This subsection applies regardless of the number
296-21 of petitions required to obtain access to the exchanges. A company
296-22 may impose a fee under this subsection only until the company's
296-23 next general rate case.
296-24 (c) The company may impose a monthly fee against each of the
296-25 company's local exchange service customers in this state. This fee
296-26 is in addition to the company's local exchange rates.
296-27 (d) The company may not recover regulatory case expenses
297-1 under this subchapter by imposing a surcharge on the subscribers of
297-2 the petitioning exchange. (V.A.C.S. Art. 1446c-0, Sec. 3.304(a)
297-3 (part).)
297-4 (Sections 55.049-55.080 reserved for expansion)
297-5 SUBCHAPTER D. OPERATOR SERVICE PROVIDERS
297-6 Sec. 55.081. DEFINITION. In this subchapter, "operator
297-7 service" means a service using live operator or automated operator
297-8 functions to handle telephone service such as toll calling using
297-9 collect, third-number billing, and calling card services. The term
297-10 does not include a call for which the called party has arranged to
297-11 be billed (800 service). (V.A.C.S. Art. 1446c-0, Sec. 3.052(a).)
297-12 Sec. 55.082. APPLICABILITY. Except as provided by Section
297-13 55.088, this subchapter applies only to a telecommunications
297-14 utility that is not a dominant carrier. (V.A.C.S. Art. 1446c-0,
297-15 Sec. 3.052(h) (part).)
297-16 Sec. 55.083. RULES AND PROCEDURES. (a) The commission may
297-17 adopt rules and establish procedures to enforce and implement this
297-18 subchapter.
297-19 (b) A rule adopted under this subchapter must be
297-20 nondiscriminatory and designed to promote competition that
297-21 facilitates consumer choice. (V.A.C.S. Art. 1446c-0, Secs. 3.052(f)
297-22 (part), (h) (part).)
297-23 Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE.
297-24 (a) An operator service provider shall furnish each entity with
297-25 which it contracts to provide operator service a sticker, card, or
297-26 other form of information approved by the commission for each
297-27 telephone that:
298-1 (1) has access to the service; and
298-2 (2) is intended for use by the public.
298-3 (b) The commission may grant the owner of a telephone
298-4 approval for an alternative form of information.
298-5 (c) The information must state:
298-6 (1) the provider's name;
298-7 (2) that the operator service provider will provide
298-8 rate information on a caller's request;
298-9 (3) that a caller, on the caller's request, will be
298-10 informed of the method of access to the local exchange carrier
298-11 operator; and
298-12 (4) that a complaint about the service may be made to
298-13 the provider or to the commission at the designated telephone
298-14 number.
298-15 (d) The operator service provider shall by contract require
298-16 an entity receiving information to display the information on or
298-17 near each telephone for which the operator service provider is
298-18 required to furnish the information. (V.A.C.S. Art. 1446c-0, Sec.
298-19 3.052(c).)
298-20 Sec. 55.085. CONNECTION ANNOUNCEMENT. Before connecting a
298-21 call, the operator service provider shall:
298-22 (1) announce the provider's name; and
298-23 (2) at the caller's request, quote the rate and any
298-24 other fee or surcharge that applies to the call and is charged by
298-25 the provider. (V.A.C.S. Art. 1446c-0, Sec. 3.052(b).)
298-26 Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL
298-27 EXCHANGE COMPANY OPERATOR. (a) An operator service provider, on a
299-1 caller's request, shall inform the caller of the method of access
299-2 to the local exchange carrier operator serving the exchange from
299-3 which the call is made.
299-4 (b) A charge may not be made for information provided under
299-5 this section. (V.A.C.S. Art. 1446c-0, Sec. 3.052(d).)
299-6 Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER
299-7 UTILITIES REQUIRED. (a) The commission by rule shall require an
299-8 operator service provider to include in its contract with each
299-9 entity through which it provides operator service a provision that
299-10 requires each telephone subscribed to its service to allow access
299-11 to:
299-12 (1) the local exchange carrier operator serving the
299-13 exchange from which the call is made; and
299-14 (2) other telecommunications utilities.
299-15 (b) To prevent fraudulent use of its service, an operator
299-16 service provider or an entity through which it provides operator
299-17 service may block the access described by Subsection (a) by
299-18 obtaining a waiver for this purpose from the commission or the
299-19 Federal Communications Commission. The commission by rule shall
299-20 establish the procedure and criteria for obtaining a waiver from
299-21 the commission. (V.A.C.S. Art. 1446c-0, Sec. 3.052(e).)
299-22 Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED. (a) A
299-23 dominant or nondominant telecommunications utility that provides
299-24 operator service shall ensure that a caller has access to a live
299-25 operator at the beginning of a live or mechanized operator-assisted
299-26 call through a method designed to be easily and clearly
299-27 understandable and accessible to the caller.
300-1 (b) A telecommunications utility described by Subsection (a)
300-2 shall submit to the commission for review the method by which the
300-3 utility will provide access to a live operator.
300-4 (c) This section applies regardless of the method by which
300-5 the telecommunications utility provides operator service.
300-6 (d) This section does not apply to a telephone located in a
300-7 prison or jail facility. (V.A.C.S. Art. 1446c-0, Sec. 3.052(i).)
300-8 Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON
300-9 VIOLATION. (a) If the commission determines that an operator
300-10 service provider has violated or is about to violate this
300-11 subchapter, the commission, after notice and evidentiary hearing,
300-12 may take action to stop, correct, or prevent the violation.
300-13 (b) The commission may investigate a complaint that it
300-14 receives concerning an operator service. (V.A.C.S. Art. 1446c-0,
300-15 Sec. 3.052(g).)
300-16 (Sections 55.090-55.100 reserved for expansion)
300-17 SUBCHAPTER E. CALLER IDENTIFICATION SERVICE
300-18 Sec. 55.101. DEFINITIONS. In this subchapter:
300-19 (1) "Caller identification information" means any
300-20 information that may be used to identify the specific originating
300-21 number or originating location of a wire or electronic
300-22 communication transmitted by a telephone, including the telephone
300-23 listing number or the name of the customer from whose telephone a
300-24 telephone number is dialed.
300-25 (2) "Caller identification service" means a service
300-26 that provides caller identification information to a device that
300-27 can display the information.
301-1 (3) "Per-call blocking" means a telecommunications
301-2 service that prevents caller identification information from being
301-3 transmitted to a called party on an individual call when the
301-4 calling party affirmatively acts to prevent the transmission.
301-5 (4) "Per-line blocking" means a telecommunications
301-6 service that prevents caller identification information from being
301-7 transmitted to a called party on each call unless the calling party
301-8 affirmatively acts to permit the transmission. (V.A.C.S.
301-9 Art. 1446c-0, Secs. 3.302(h)(1), (2) (part), (3), (4).)
301-10 Sec. 55.102. APPLICABILITY. (a) This subchapter applies
301-11 only to the provision of caller identification service.
301-12 (b) This subchapter does not apply to:
301-13 (1) an identification service that is used in a
301-14 limited system, including a central office based PBX-type system;
301-15 (2) information that is used on a public agency's
301-16 emergency telephone line or on a line that receives the primary
301-17 emergency telephone number (911);
301-18 (3) information exchanged between telecommunications
301-19 utilities, enhanced service providers, or other entities that is
301-20 necessary for the setting up, processing, transmission, or billing
301-21 of telecommunications or related services;
301-22 (4) information provided in compliance with applicable
301-23 law or legal process; or
301-24 (5) an identification service provided in connection
301-25 with a 700, 800, or 900 access code telecommunications service.
301-26 (V.A.C.S. Art. 1446c-0, Secs. 3.302(a), (g).)
301-27 Sec. 55.103. PROVISION OF SERVICE. A telecommunications
302-1 utility or commercial mobile service provider may offer caller
302-2 identification services under this subchapter only if the utility
302-3 or provider obtains written authorization from the commission.
302-4 (V.A.C.S. Art. 1446c-0, Sec. 3.302(b), (h)(2) (part), (i).)
302-5 Sec. 55.104. USE OF INFORMATION. (a) A person may not use
302-6 a caller identification service to compile and sell specific local
302-7 call information without the affirmative approval of the
302-8 originating telephone customer.
302-9 (b) This section does not prohibit a provider of caller
302-10 identification service from:
302-11 (1) verifying network performance or testing the
302-12 caller identification service;
302-13 (2) compiling, using, and disclosing aggregate caller
302-14 identification information; or
302-15 (3) complying with applicable law or legal process.
302-16 (V.A.C.S. Art. 1446c-0, Sec. 3.302(f).)
302-17 Sec. 55.105. PER-CALL BLOCKING. The commission shall
302-18 require that a provider of caller identification service offer free
302-19 per-call blocking to each telephone subscriber in the specific area
302-20 in which the service is offered. (V.A.C.S. Art. 1446c-0, Sec.
302-21 3.302(c).)
302-22 Sec. 55.106. PER-LINE BLOCKING. (a) The commission shall
302-23 require that a provider of caller identification service offer free
302-24 per-line blocking to a particular customer if the commission
302-25 receives from the customer written certification that the customer
302-26 has a compelling need for per-line blocking.
302-27 (b) A provider who is ordered to offer per-line blocking
303-1 under this section shall notify the customer by mail of the date
303-2 the blocking will begin.
303-3 (c) If a customer removes and later reinstates the per-line
303-4 block, the provider may assess a service order charge in an amount
303-5 approved by the commission for the provider's administrative
303-6 expenses relating to the reinstatement.
303-7 (d) The commission may impose a fee or assessment on a
303-8 provider in an amount sufficient to cover the additional expenses
303-9 the commission incurs in implementing the customer certification
303-10 provisions of this section.
303-11 (e) Information received under this section by the
303-12 commission or by a provider is confidential and may be used only to
303-13 administer this section. (V.A.C.S. Art. 1446c-0, Secs. 3.302(d),
303-14 3.3025(a) (part).)
303-15 Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY. The
303-16 commission may prescribe in relation to blocking only a requirement
303-17 authorized by Sections 55.105 and 55.106. (V.A.C.S. Art. 1446c-0,
303-18 Sec. 3.302(e).)
303-19 Sec. 55.108. CALLER ID CONSUMER EDUCATION PANEL. (a) The
303-20 Caller ID Consumer Education Panel is composed of:
303-21 (1) one person appointed by the governor;
303-22 (2) one person appointed by the presiding officer of
303-23 the commission after the presiding officer consults with the Texas
303-24 Council on Family Violence; and
303-25 (3) one person appointed by the counsellor.
303-26 (b) The panel shall:
303-27 (1) meet at least quarterly;
304-1 (2) file an annual report with the commission
304-2 regarding:
304-3 (A) the level of effort and effectiveness of
304-4 consumer education materials; and
304-5 (B) the panel's recommendations for:
304-6 (i) increasing the safe use of caller ID
304-7 services and the privacy of the calling customer; and
304-8 (ii) decreasing the likelihood of harm
304-9 resulting from the use of caller ID services; and
304-10 (3) investigate whether educational caller ID
304-11 materials are distributed in as effective a manner as marketing
304-12 caller ID materials.
304-13 (c) A provider of caller ID services shall file with the
304-14 panel all caller ID materials as the materials become available.
304-15 (d) The panel is abolished and this section expires
304-16 September 1, 1999.
304-17 (e) In this section:
304-18 (1) "Caller ID service" has the meaning assigned by
304-19 Section 55.110.
304-20 (2) "Caller ID materials" means any disseminated
304-21 information relating to caller ID services, including
304-22 advertisements, educational material, training material, and audio
304-23 and video marketing devices. (V.A.C.S. Art. 1446c-0, Secs.
304-24 3.3025(b) (part), (c), (d), (e).)
304-25 Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS. The
304-26 commission may implement the recommendations of the Caller ID
304-27 Consumer Education Panel and interested parties to the extent
305-1 consistent with the public interest. (V.A.C.S. Art. 1446c-0, Sec.
305-2 3.3025(b) (part).)
305-3 Sec. 55.110. REPORT OF BLOCKING FAILURE. (a) A provider of
305-4 caller ID services who becomes aware of the failure of per-call or
305-5 per-line blocking to block identification of a customer shall
305-6 report that failure to the commission, the Caller ID Consumer
305-7 Education Panel, and the customer whose identification was not
305-8 blocked.
305-9 (b) The provider shall make a reasonable effort to notify
305-10 the customer within 24 hours after the provider becomes aware of
305-11 the failure. The provider is not required to notify the customer
305-12 if the customer reported the failure.
305-13 (c) In this section, "caller ID service" means a service
305-14 that permits the called party to determine the identity, telephone
305-15 number, or address of the calling party. The term does not include
305-16 911 services. (V.A.C.S. Art. 1446c-0, Secs. 3.3025(a) (part),
305-17 (d).)
305-18 (Sections 55.111-55.120 reserved for expansion)
305-19 SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES
305-20 Sec. 55.121. DEFINITION. In this subchapter, "automated
305-21 dial announcing device" means automated equipment used for
305-22 telephone solicitation or collection that can:
305-23 (1) store telephone numbers to be called or produce
305-24 numbers to be called through use of a random or sequential number
305-25 generator; and
305-26 (2) convey, alone or in conjunction with other
305-27 equipment, a prerecorded or synthesized voice message to the number
306-1 called without the use of a live operator. (V.A.C.S. Art. 1446c-0,
306-2 Sec. 3.651(1).)
306-3 Sec. 55.122. EXEMPTIONS. This subchapter does not apply to
306-4 the use of an automated dial announcing device:
306-5 (1) to make a call relating to an emergency or a
306-6 public service under a program developed or approved by the
306-7 emergency management coordinator of the county in which the call is
306-8 received; or
306-9 (2) by a public or private primary or secondary school
306-10 system to locate or account for a truant student. (V.A.C.S.
306-11 Art. 1446c-0, Sec. 3.652.)
306-12 Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS
306-13 UTILITY. A person may not use an automated dial announcing device
306-14 to make a telephone call in which the device plays a recorded
306-15 message when the connection is completed unless the person gives to
306-16 each telecommunications utility over whose system the device is to
306-17 be used written notice specifying the type of device to be used.
306-18 (V.A.C.S. Article 1446c-0, Sec. 3.653(a) (part).)
306-19 Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING. A person
306-20 may not use an automated dial announcing device for random number
306-21 dialing or to dial numbers determined by successively increasing or
306-22 decreasing integers if the person uses the device to make a
306-23 telephone call in which the device plays a recorded message when
306-24 the connection is completed. (V.A.C.S. Art. 1446c-0, Sec.
306-25 3.653(a) (part).)
306-26 Sec. 55.125. HOURS WHEN USE PROHIBITED. (a) A person may
306-27 not use an automated dial announcing device to make a telephone
307-1 solicitation call terminating in this state in which the device
307-2 plays a recorded message when the connection is completed if the
307-3 call is made:
307-4 (1) before noon or after 9 p.m. on a Sunday; or
307-5 (2) before 9 a.m. or after 9 p.m. on a weekday or a
307-6 Saturday.
307-7 (b) A person may not use an automated dial announcing device
307-8 to make a telephone collection call terminating in this state in
307-9 which the device plays a recorded message when the connection is
307-10 completed if the call is made at an hour at which collection calls
307-11 are prohibited under the federal Fair Debt Collection Practices Act
307-12 (15 U.S.C. Section 1692 et seq.). (V.A.C.S. Art. 1446c-0, Sec.
307-13 3.653(a) (part).)
307-14 Sec. 55.126. DEVICE DISCONNECTION. A person may not use an
307-15 automated dial announcing device to make a telephone call in which
307-16 the device plays a recorded message when the connection is
307-17 completed unless the device disconnects from the called person's
307-18 line not later than 30 seconds after the call is terminated by
307-19 either party. If the device cannot disconnect during that period,
307-20 a live operator must introduce the call and receive the called
307-21 person's oral consent before beginning a prerecorded or synthesized
307-22 voice message. (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
307-23 Sec. 55.127. CONTENTS OF RECORDED MESSAGE. (a) A person
307-24 may not use an automated dial announcing device to make a telephone
307-25 call in which the device plays a recorded message when the
307-26 connection is completed unless the recorded message states during
307-27 the first 30 seconds of the call:
308-1 (1) the nature of the call;
308-2 (2) the identity of the person, company, or
308-3 organization making the call; and
308-4 (3) the telephone number from which the call is made.
308-5 (b) In addition to the requirements prescribed by Subsection
308-6 (a), a call during which a cross-promotion or reference to a
308-7 pay-per-call information service is made must include a statement
308-8 of:
308-9 (1) the fact that a caller who makes a call to a
308-10 pay-per-call information service's telephone number will be charged
308-11 for that call;
308-12 (2) the amount of the flat-rate or cost-per-minute
308-13 charge the caller will incur or the amount of both if both charges
308-14 will be incurred; and
308-15 (3) the estimated amount of time required to receive
308-16 all the information offered by the service during a call.
308-17 (c) Subsection (a) does not apply to the use of a device if
308-18 the device is used:
308-19 (1) for debt collection purposes in compliance with
308-20 applicable federal law and regulations; and
308-21 (2) by a live operator for automated dialing or hold
308-22 announcement purposes.
308-23 (d) In this section, "pay-per-call information service"
308-24 means a service that routinely delivers, for a predetermined and
308-25 sometimes time-sensitive fee, a prerecorded or live message or
308-26 interactive program after the caller dials a specified 900 or 976
308-27 number. (V.A.C.S. Art. 1446c-0, Secs. 3.653(a) (part), (b), (c).)
309-1 Sec. 55.128. DURATION OF RECORDED MESSAGE. A person may not
309-2 use an automated dial announcing device to make for solicitation
309-3 purposes a telephone call in which the device plays a recorded
309-4 message when the connection is completed unless:
309-5 (1) the recorded message is shorter than one minute;
309-6 or
309-7 (2) the device has the technical capacity to:
309-8 (A) recognize a telephone answering device on
309-9 the called person's line; and
309-10 (B) terminate the call within one minute.
309-11 (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
309-12 Sec. 55.129. PERMIT REQUIRED. A person may not use an
309-13 automated dial announcing device to make a telephone call in which
309-14 the device plays a recorded message when the connection is
309-15 completed unless the person has a permit under Section 55.130.
309-16 (V.A.C.S. Art. 1446c-0, Sec. 3.653(a) (part).)
309-17 Sec. 55.130. PERMIT. (a) A person may not use an automated
309-18 dial announcing device without a permit issued by the commission.
309-19 (b) An applicant for an original permit must submit to the
309-20 commission an application on a form that:
309-21 (1) is prescribed by the commission; and
309-22 (2) contains:
309-23 (A) the telephone number of each automated dial
309-24 announcing device that the person will use; and
309-25 (B) the physical address from which each
309-26 automated dial announcing device will operate.
309-27 (c) An original permit is valid for one year and may be
310-1 renewed annually by filing with the commission the information
310-2 required by Subsection (b)(2).
310-3 (d) An application for an original permit or a filing
310-4 required for the renewal of the permit must be accompanied by the
310-5 appropriate fee prescribed by Section 55.131.
310-6 (e) In determining whether to deny an application for an
310-7 original permit or renewal of the permit, the commission shall
310-8 consider the compliance record of the owner or operator of the
310-9 automated dial announcing device and may deny the application based
310-10 on that record. (V.A.C.S. Art. 1446c-0, Secs. 3.655(a) (part), (b)
310-11 (part), (c).)
310-12 Sec. 55.131. PERMIT FEE. (a) The commission shall
310-13 prescribe a fee for an original permit or renewal of a permit.
310-14 (b) The amount of the original permit fee must be reasonable
310-15 and cover the enforcement cost to the commission but may not exceed
310-16 $500.
310-17 (c) The fee for renewal of a permit may not exceed $100.
310-18 (V.A.C.S. Art. 1446c-0, Sec. 3.655(a) (part).)
310-19 Sec. 55.132. NOTIFICATION OF CHANGE. (a) The owner or
310-20 operator of an automated dial announcing device shall notify the
310-21 commission if the telephone number of the device or the physical
310-22 address from which the device operates changes.
310-23 (b) The owner or operator shall give the notice by certified
310-24 mail not later than the 48th hour before the hour the device begins
310-25 operating with the new telephone number or at the new address.
310-26 (c) If the owner or operator of a device fails to give
310-27 notice as required by Subsection (b), the person's permit is
311-1 invalid. (V.A.C.S. Art. 1446c-0, Sec. 3.655(b) (part).)
311-2 Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY. The
311-3 commission shall provide to a local exchange company on request a
311-4 copy of a permit issued under this subchapter and of any change
311-5 relating to the permit. (V.A.C.S. Art. 1446c-0, Sec. 3.655(d).)
311-6 Sec. 55.134. COMPLAINTS AND ENFORCEMENT. (a) The
311-7 commission shall:
311-8 (1) investigate complaints relating to the use of an
311-9 automated dial announcing device; and
311-10 (2) enforce this subchapter.
311-11 (b) A local exchange company that receives a complaint
311-12 relating to the use of an automated dial announcing device shall
311-13 send the complaint to the commission. The commission by rule shall
311-14 prescribe the procedures and requirements for sending a complaint
311-15 to the commission. (V.A.C.S. Art. 1446c-0, Secs. 3.654(a),
311-16 3.655(e).)
311-17 Sec. 55.135. REVOCATION OF PERMIT. The commission may
311-18 revoke a person's permit if the person fails to comply with this
311-19 subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.657(a).)
311-20 Sec. 55.136. DISCONNECTION OF SERVICE. (a) If the
311-21 commission or a court determines that a person has violated this
311-22 subchapter, the commission or court shall require a
311-23 telecommunications utility to disconnect service to the person.
311-24 (b) The telecommunications utility may reconnect service to
311-25 the person only on a determination by the commission that the
311-26 person will comply with this subchapter.
311-27 (c) Not later than the third day before the date of the
312-1 disconnection, the telecommunications utility shall give notice to
312-2 the person using the device of its intent to disconnect service.
312-3 However, if the device is causing network congestion or blockage,
312-4 the notice may be given on the day before the date of
312-5 disconnection.
312-6 (d) A telecommunications utility, without an order by the
312-7 commission or a court, may disconnect or refuse to connect service
312-8 to a person using or intending to use an automated dial announcing
312-9 device if the utility determines that the device would cause or is
312-10 causing network harm. (V.A.C.S. Art. 1446c-0, Secs. 3.654(b),
312-11 (c).)
312-12 Sec. 55.137. ADMINISTRATIVE PENALTY. (a) The commission
312-13 may impose an administrative penalty against a person who owns or
312-14 operates an automated dial announcing device in violation of this
312-15 subchapter or a commission rule or order.
312-16 (b) The penalty for a violation may be in an amount not to
312-17 exceed $1,000 for each day or portion of a day during which the
312-18 device operates in violation of this subchapter or a commission
312-19 rule or order.
312-20 (c) The administrative penalty is civil in nature and is in
312-21 addition to any other penalty provided by law.
312-22 (d) The commission by rule shall prescribe the procedures
312-23 for assessing an administrative penalty under this section. The
312-24 procedures must require proper notice and hearing in accordance
312-25 with Chapter 2001, Government Code.
312-26 (e) A person may appeal the final order of the commission
312-27 under Chapter 2001, Government Code. The substantial evidence rule
313-1 applies on appeal. (V.A.C.S. Art. 1446c-0, Secs. 3.656(a), (b),
313-2 (c), (d).)
313-3 Sec. 55.138. CRIMINAL PENALTY. (a) A person commits an
313-4 offense if the person owns or operates an automated dial announcing
313-5 device that the person knows is operating in violation of this
313-6 subchapter.
313-7 (b) An offense under this section is a Class A misdemeanor.
313-8 (V.A.C.S. Art. 1446c-0, Sec. 3.657(b).)
313-9 (Sections 55.139-55.150 reserved for expansion)
313-10 SUBCHAPTER G. TELEPHONE SOLICITATION
313-11 Sec. 55.151. COMPLIANCE WITH REQUEST NOT TO BE CALLED. (a)
313-12 A telephone solicitor operating in this state who makes a consumer
313-13 telephone call subject to Section 37.02, Business & Commerce Code,
313-14 shall implement in-house systems and procedures so that every
313-15 effort is made by the solicitor not to call consumers who ask not
313-16 to be called again by the solicitor.
313-17 (b) The commission may enforce this section. (V.A.C.S.
313-18 Art. 1446c-0, Sec. 3.659.)
313-19 Sec. 55.152. NOTICE TO CONSUMERS. The commission by rule
313-20 shall require a local exchange company or telephone cooperative to:
313-21 (1) notify its customers of the provisions of:
313-22 (A) Chapter 37, Business & Commerce Code; and
313-23 (B) Section 55.151; and
313-24 (2) provide the notice by:
313-25 (A) inserting the notice annually in the billing
313-26 statement mailed to a customer; or
313-27 (B) publishing the notice in the consumer
314-1 information pages of its local telephone directory. (V.A.C.S.
314-2 Art. 1446c-0, Sec. 3.660.)
314-3 (Sections 55.153-55.170 reserved for expansion)
314-4 SUBCHAPTER H. PAY TELEPHONES
314-5 Sec. 55.171. DEFINITION. In this subchapter, "provider"
314-6 means an entity that provides pay telephone service, including:
314-7 (1) an incumbent local exchange company; and
314-8 (2) a subscriber to a customer-owned pay telephone
314-9 service. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(i).)
314-10 Sec. 55.172. LIMITATION. This subchapter prescribes the
314-11 limits of:
314-12 (1) the right of a provider to set the provider's
314-13 rates and charges for pay telephone services; and
314-14 (2) the commission's authority over the pay telephone
314-15 service rates of an incumbent local exchange company. (V.A.C.S.
314-16 Art. 1446c-0, Sec. 3.2625(a).)
314-17 Sec. 55.173. REGISTRATION. (a) A person may not provide
314-18 pay telephone service in this state unless the person is registered
314-19 with the commission.
314-20 (b) This section does not apply to a provider who holds a
314-21 certificate of convenience and necessity. (V.A.C.S. Art. 1446c-0,
314-22 Sec. 3.2625(f).)
314-23 Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS. A
314-24 provider may not charge a person making a call on a pay telephone
314-25 for:
314-26 (1) local directory assistance; or
314-27 (2) a call made under Chapter 771 or 772, Health and
315-1 Safety Code. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(b).)
315-2 Sec. 55.175. CHARGE FOR LOCAL CALLS. (a) The commission
315-3 shall establish the limit on the amount a provider may charge for a
315-4 pay telephone coin sent-paid call in the local exchange company's
315-5 toll-free calling area.
315-6 (b) The commission may establish a statewide ceiling on the
315-7 amount a provider may charge for a local pay telephone call that
315-8 is:
315-9 (1) collect;
315-10 (2) operator assisted; or
315-11 (3) paid by credit card or calling card.
315-12 (c) The commission may not establish the ceiling under
315-13 Subsection (b) at an amount that is less than the applicable local
315-14 rates for such a call imposed by any of the four largest
315-15 interexchange telecommunications carriers operating in this state.
315-16 (V.A.C.S. Art. 1446c-0, Sec. 3.2625(c).)
315-17 Sec. 55.176. CHARGE FOR 800-TYPE CALLS. (a) A provider may
315-18 charge at a pay telephone a fee of not more than 25 cents for
315-19 initiating an 800-type call.
315-20 (b) A provider may impose the fee only if:
315-21 (1) the pay telephone is registered with the
315-22 commission; and
315-23 (2) the provider certifies that the pay telephone
315-24 complies with commission rules regarding the provision of pay
315-25 telephone service.
315-26 (c) Subsection (b) does not apply to a local exchange
315-27 company pay telephone.
316-1 (d) A provider may not impose the fee if imposition is
316-2 inconsistent with federal law.
316-3 (e) A provider may not impose the fee for a:
316-4 (1) local call;
316-5 (2) 911 call;
316-6 (3) local directory assistance call; or
316-7 (4) call that is covered by the Telephone Operator
316-8 Consumer Services Improvement Act of 1990 (47 U.S.C. Section 226).
316-9 (f) A provider who imposes the fee must post on each pay
316-10 telephone notice that the fee will be charged. The provider must
316-11 post the notice:
316-12 (1) in plain sight of the user; and
316-13 (2) in a manner consistent with existing commission
316-14 requirements for posting information.
316-15 (g) The commission may not impose on a local exchange
316-16 company the duty or obligation to:
316-17 (1) record the use of pay telephone service;
316-18 (2) bill or collect for the use of the pay telephone;
316-19 or
316-20 (3) remit to the provider the fee authorized by this
316-21 section. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(d).)
316-22 Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR
316-23 OPERATOR-ASSISTED CALLS. (a) A provider may not impose for a
316-24 credit card, calling card, or live or automated operator-assisted
316-25 call a rate or charge that is greater than the authorized rates and
316-26 charges published on March 18, 1995, in the eight newspapers having
316-27 the largest circulation in this state.
317-1 (b) The published rates may not be changed.
317-2 (c) This section does not apply to a local exchange company.
317-3 Chapter 58 governs the pay telephone rates of an incumbent local
317-4 exchange company that elects incentive regulation under that
317-5 chapter. (V.A.C.S. Art. 1446c-0, Sec. 3.2625(e).)
317-6 Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS. (a) A
317-7 provider may not display the telephone number of a pay telephone
317-8 that cannot receive telephone calls.
317-9 (b) A provider shall place in a conspicuous location on each
317-10 pay telephone that cannot receive telephone calls a notice stating
317-11 in letters one-fourth inch high: "THIS TELEPHONE CANNOT RECEIVE
317-12 TELEPHONE CALLS."
317-13 (c) A provider that violates this section or a rule or order
317-14 adopted by the commission under this section is subject to a civil
317-15 penalty as provided by Section 15.028 unless the provider takes
317-16 corrective action to comply with this section or the rule or order
317-17 not later than the 14th day after the date the provider receives
317-18 written notice of the violation.
317-19 (d) The commission has jurisdiction over a provider to the
317-20 extent necessary to enforce this section regardless of whether a
317-21 provider is a telecommunications utility regulated under this
317-22 title.
317-23 (e) The commission may establish procedures to enforce this
317-24 section. (V.A.C.S. Art. 1446c-0, Sec. 3.305.)
317-25 Sec. 55.179. INFORMATION REQUIREMENTS. (a) The commission
317-26 by rule may prescribe the information that must be posted on a pay
317-27 telephone.
318-1 (b) A commission rule may not require a provider or an
318-2 affiliate of a provider to police compliance by another provider
318-3 with the commission's rules. (V.A.C.S. Art. 1446c-0, Sec.
318-4 3.2625(h).)
318-5 Sec. 55.180. VIOLATIONS. The commission may order the
318-6 disconnection of pay telephone service for not more than one year
318-7 for repeat violations of commission rules. (V.A.C.S. Art. 1446c-0,
318-8 Sec. 3.2625(g).)
318-9 (Sections 55.181-55.200 reserved for expansion)
318-10 SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE
318-11 Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE.
318-12 (a) Each company that provides local exchange telephone service in
318-13 overlapping certificated areas shall negotiate the terms of printed
318-14 directory listings and directory assistance in those areas.
318-15 (b) On complaint by the incumbent local exchange company or
318-16 the holder of a certificate of convenience and necessity, a
318-17 certificate of operating authority, or a service provider
318-18 certificate of operating authority, the commission may:
318-19 (1) resolve a dispute between the parties; and
318-20 (2) issue an order setting the terms of the directory
318-21 listings or directory assistance, if necessary.
318-22 (c) This section does not affect the authority of an
318-23 incumbent local exchange company to voluntarily conduct
318-24 negotiations with an applicant for a certificate of convenience and
318-25 necessity, a certificate of operating authority, or a service
318-26 provider certificate of operating authority. (V.A.C.S.
318-27 Art. 1446c-0, Sec. 3.2615.)
319-1 Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS
319-2 UTILITY. A telecommunications utility or an affiliate of that
319-3 utility that publishes a residential or business telephone
319-4 directory that is distributed to the public shall publish in the
319-5 directory the name of each state senator or representative who
319-6 represents all or part of the geographical area for which the
319-7 directory contains listings. (V.A.C.S. Art. 1446c-0, Sec. 3.310.)
319-8 Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER. (a)
319-9 A private for-profit publisher of a residential telephone directory
319-10 that is distributed to the public at minimal or no cost shall
319-11 include in the directory a listing of any toll-free and local
319-12 telephone numbers of:
319-13 (1) state agencies;
319-14 (2) state public services; and
319-15 (3) each state elected official who represents all or
319-16 part of the geographical area for which the directory contains
319-17 listings.
319-18 (b) The listing required by this section:
319-19 (1) must be:
319-20 (A) clearly identified; and
319-21 (B) located or clearly referenced at the front
319-22 of the directory before the main listing of residential and
319-23 business telephone numbers; and
319-24 (2) is not required to exceed a length equivalent to
319-25 two 8-1/2-inch by 11-inch pages, single-spaced in eight-point type.
319-26 (c) The commission by rule may specify:
319-27 (1) the format of the listing; and
320-1 (2) criteria for inclusion of agencies, services, and
320-2 officials.
320-3 (d) The commission, with the cooperation of other state
320-4 agencies, shall:
320-5 (1) compile relevant information to ensure accuracy of
320-6 information in the listing; and
320-7 (2) provide the information to a telecommunications
320-8 utility or telephone directory publisher within a reasonable time
320-9 after a request by the utility or publisher. (V.A.C.S.
320-10 Art. 1446c-0, Sec. 3.309.)
320-11 (Sections 55.204-55.250 reserved for expansion)
320-12 SUBCHAPTER J. TELECOMMUNICATIONS SERVICE BY CERTAIN PROVIDERS
320-13 Sec. 55.251. CHARGE FOR HOTEL OR MOTEL CALL. A hotel or
320-14 motel may not charge more than 50 cents for:
320-15 (1) a local telephone call;
320-16 (2) a credit card telephone call;
320-17 (3) a collect telephone call; or
320-18 (4) any other local telephone call for which
320-19 assistance from the hotel or motel operator is not required.
320-20 (V.A.C.S. Art. 1446c-0, Sec. 3.306.)
320-21 Sec. 55.252. 900 SERVICE USED BY PROBATIONERS OR PAROLEES.
320-22 (a) This section applies only to a telecommunications utility that
320-23 transports or provides an intrastate 900 service that is:
320-24 (1) covered by a contract authorized by Chapter 76,
320-25 Government Code, or Section 28, Article 42.18, Code of Criminal
320-26 Procedure; and
320-27 (2) used by a defendant under the supervision of a
321-1 community supervision and corrections department or the pardons and
321-2 paroles division of the Texas Department of Criminal Justice to:
321-3 (A) pay a fee or cost; or
321-4 (B) comply with telephone reporting
321-5 requirements.
321-6 (b) A telecommunications utility may adjust or authorize the
321-7 adjustment of an end-user's bill for 900 service described by
321-8 Subsection (a) only with the consent of the contracting community
321-9 supervision and corrections department or the contracting pardons
321-10 and paroles division of the Texas Department of Criminal Justice.
321-11 (V.A.C.S. Art. 1446c-0, Sec. 3.307.)
321-12 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE
321-13 AND UNIVERSAL SERVICE FUND
321-14 SUBCHAPTER A. GENERAL PROVISIONS
321-15 Sec. 56.001. DEFINITION
321-16 Sec. 56.002. CONFLICT OF PROVISIONS
321-17 (Sections 56.003-56.020 reserved for expansion)
321-18 SUBCHAPTER B. UNIVERSAL SERVICE FUND
321-19 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED
321-20 Sec. 56.022. UNIFORM CHARGE
321-21 Sec. 56.023. COMMISSION POWERS AND DUTIES
321-22 Sec. 56.024. REPORTS; CONFIDENTIALITY
321-23 Sec. 56.025. MAINTENANCE OF RATES AND EXPANSION OF FUND
321-24 FOR CERTAIN COMPANIES
321-25 Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS
321-26 (Sections 56.027-56.070 reserved for expansion)
321-27 SUBCHAPTER C. TEL-ASSISTANCE SERVICE PROGRAM
322-1 Sec. 56.071. TEL-ASSISTANCE SERVICE REQUIREMENTS
322-2 Sec. 56.072. CONSUMER ELIGIBILITY AND APPLICATION
322-3 Sec. 56.073. ELIGIBLE CONSUMERS
322-4 Sec. 56.074. PROGRAM BILLING
322-5 Sec. 56.075. SERVICES ELIGIBLE; LIMIT
322-6 Sec. 56.076. SERVICES PROHIBITED
322-7 Sec. 56.077. ADAPTIVE EQUIPMENT
322-8 Sec. 56.078. RECOVERY OF LOST REVENUE
322-9 (Sections 56.079-56.100 reserved for expansion)
322-10 SUBCHAPTER D. STATEWIDE TELECOMMUNICATIONS RELAY
322-11 ACCESS SERVICE
322-12 Sec. 56.101. PURPOSE
322-13 Sec. 56.102. TELECOMMUNICATIONS RELAY ACCESS SERVICE
322-14 Sec. 56.103. TELECOMMUNICATIONS RELAY ACCESS SERVICE
322-15 REQUIREMENTS
322-16 Sec. 56.104. TELECOMMUNICATIONS RELAY ACCESS SERVICE
322-17 CHARGES
322-18 Sec. 56.105. TRIAL SERVICE COSTS AND DESIGN INFORMATION
322-19 Sec. 56.106. TELECOMMUNICATIONS RELAY ACCESS SERVICE
322-20 ASSESSMENTS
322-21 Sec. 56.107. UNIVERSAL SERVICE FUND SURCHARGE
322-22 Sec. 56.108. SELECTION OF TELECOMMUNICATIONS RELAY ACCESS
322-23 SERVICE CARRIER
322-24 Sec. 56.109. COMPENSATION OF CARRIER
322-25 Sec. 56.110. ADVISORY COMMITTEE
322-26 Sec. 56.111. ADVISORY COMMITTEE DUTIES
322-27 Sec. 56.112. ADVISORY COMMITTEE SUPPORT AND COSTS
323-1 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE
323-2 AND UNIVERSAL SERVICE FUND
323-3 SUBCHAPTER A. GENERAL PROVISIONS
323-4 Sec. 56.001. DEFINITION. In this chapter, "department"
323-5 means the Texas Department of Human Services. (New.)
323-6 Sec. 56.002. CONFLICT OF PROVISIONS. If this chapter
323-7 conflicts with another provision of this title, this chapter
323-8 prevails. (V.A.C.S. Art. 1446c-0, Sec. 3.610.)
323-9 (Sections 56.003-56.020 reserved for expansion)
323-10 SUBCHAPTER B. UNIVERSAL SERVICE FUND
323-11 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
323-12 commission shall adopt and enforce rules requiring local exchange
323-13 companies to establish a universal service fund to:
323-14 (1) assist local exchange companies in providing basic
323-15 local telecommunications service at reasonable rates in high cost
323-16 rural areas;
323-17 (2) reimburse local exchange companies for revenue
323-18 lost by providing tel-assistance service under Subchapter C;
323-19 (3) reimburse the telecommunications carrier that
323-20 provides the statewide telecommunications relay access service
323-21 under Subchapter D; and
323-22 (4) reimburse the department and the commission for
323-23 costs incurred in implementing this chapter and Chapter 57.
323-24 (V.A.C.S. Art. 1446c-0, Sec. 3.608(a).)
323-25 Sec. 56.022. UNIFORM CHARGE. (a) The universal service
323-26 fund is funded by a statewide uniform charge payable by each
323-27 telecommunications provider that has access to the customer base.
324-1 (b) A telecommunications provider shall pay the charge in
324-2 accordance with procedures approved by the commission.
324-3 (c) The uniform charge is on services and at rates the
324-4 commission determines. In establishing the charge and the services
324-5 to which the charge will apply, the commission may not:
324-6 (1) grant an unreasonable preference or advantage to a
324-7 telecommunications provider; or
324-8 (2) subject a telecommunications provider to
324-9 unreasonable prejudice or disadvantage. (V.A.C.S. Art. 1446c-0,
324-10 Sec. 3.608(c).)
324-11 Sec. 56.023. COMMISSION POWERS AND DUTIES. (a) The
324-12 commission shall:
324-13 (1) in a manner that assures reasonable rates for
324-14 basic local telecommunications service, adopt eligibility criteria
324-15 and review procedures, including a method for administrative
324-16 review, the commission finds necessary to fund the universal
324-17 service fund and make distributions from that fund;
324-18 (2) determine which local exchange companies meet the
324-19 eligibility criteria;
324-20 (3) determine the amount of and approve a procedure
324-21 for reimbursement to local exchange companies of revenue lost in
324-22 providing tel-assistance service under Subchapter C;
324-23 (4) establish and collect fees from the universal
324-24 service fund necessary to recover the costs the department and the
324-25 commission incur in administering this chapter and Chapter 57; and
324-26 (5) approve procedures for the collection and
324-27 disbursal of the revenue of the universal service fund.
325-1 (b) The eligibility criteria must require that a local
325-2 exchange company, in compliance with the commission's quality of
325-3 service requirements:
325-4 (1) offer service to each consumer within the
325-5 company's certificated area; and
325-6 (2) render continuous and adequate service within the
325-7 company's certificated area.
325-8 (c) The commission shall adopt rules for the administration
325-9 of the universal service fund and may act as necessary and
325-10 convenient to administer the fund. (V.A.C.S. Art. 1446c-0, Secs.
325-11 3.608(d), (e), (f) (part).)
325-12 Sec. 56.024. REPORTS; CONFIDENTIALITY. (a) The commission
325-13 may require a local exchange company or another telecommunications
325-14 provider to provide a report or information necessary to assess
325-15 contributions to the universal service fund.
325-16 (b) A report or information is confidential and not subject
325-17 to disclosure under Chapter 552, Government Code. (V.A.C.S.
325-18 Art. 1446c-0, Sec. 3.608(f) (part).)
325-19 Sec. 56.025. MAINTENANCE OF RATES AND EXPANSION OF FUND FOR
325-20 CERTAIN COMPANIES. (a) In addition to the authority provided by
325-21 Section 56.021, for each local exchange company that serves fewer
325-22 than five million access lines, the commission:
325-23 (1) may adopt a mechanism necessary to maintain
325-24 reasonable rates for local exchange telephone service; and
325-25 (2) shall adopt rules to expand the universal service
325-26 fund in the circumstances prescribed by this section.
325-27 (b) The commission shall implement a mechanism through the
326-1 universal service fund to replace the reasonably projected
326-2 reduction in high cost assistance revenue caused by a commission
326-3 order, rule, or policy. This subsection does not apply to an order
326-4 entered in a proceeding related to an individual company's revenue
326-5 requirements.
326-6 (c) The commission shall implement a mechanism to replace
326-7 the reasonably projected change in revenue caused by a Federal
326-8 Communications Commission order, rule, or policy that changes:
326-9 (1) the federal universal service fund revenue of a
326-10 local exchange company; or
326-11 (2) costs or revenue assigned to the intrastate
326-12 jurisdiction.
326-13 (d) The commission shall implement a mechanism to replace
326-14 the reasonably projected reduction in contribution caused by a
326-15 change of commission policy regarding intraLATA "1-plus" dialing
326-16 access. In this subsection, "contribution" means the average
326-17 intraLATA long distance message telecommunications service revenue
326-18 per minute, including intraLATA toll pooling and associated
326-19 impacts, less the average message telecommunications service cost
326-20 per minute less the average contribution from switched access
326-21 multiplied by the projected change in intraLATA "1-plus" minutes of
326-22 use.
326-23 (e) The commission shall implement a mechanism to replace
326-24 the reasonably projected increase in costs or decrease in revenue
326-25 of the intrastate jurisdiction caused by another governmental
326-26 agency's order, rule, or policy.
326-27 (f) A mechanism implemented under Subsection (c), (d), or
327-1 (e) must be through:
327-2 (1) an increase in rates, if the increase would not
327-3 adversely affect universal service; or
327-4 (2) the universal service fund. (V.A.C.S.
327-5 Art. 1446c-0, Secs. 3.608(b)(1), (2), (3), (4), (5).)
327-6 Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS. (a) A
327-7 revenue requirement showing is not required for a disbursement from
327-8 the universal service fund under this subchapter.
327-9 (b) The commission shall make each disbursement from the
327-10 universal service fund promptly and efficiently so that a
327-11 telecommunications provider or local exchange company does not
327-12 experience an unnecessary cash-flow change as a result of a change
327-13 in governmental policy. (V.A.C.S. Art. 1446c-0, Sec. 3.608(b)(6).)
327-14 (Sections 56.027-56.070 reserved for expansion)
327-15 SUBCHAPTER C. TEL-ASSISTANCE SERVICE PROGRAM
327-16 Sec. 56.071. TEL-ASSISTANCE SERVICE REQUIREMENTS. (a) The
327-17 commission shall adopt and enforce rules requiring a local exchange
327-18 company to establish a telecommunications service assistance
327-19 program to provide a reduction in the cost of telecommunications
327-20 service to each eligible consumer in the company's certificated
327-21 area. The reduction must be a reduction on the consumer's telephone
327-22 bill.
327-23 (b) Except as provided by Section 56.075(b), the reduction
327-24 allowed by the program is 65 percent of the applicable tariff rate
327-25 for the service provided.
327-26 (c) The program is named "tel-assistance service."
327-27 (V.A.C.S. Art. 1446c-0, Secs. 3.601, 3.603(a) (part), (c).)
328-1 Sec. 56.072. CONSUMER ELIGIBILITY AND APPLICATION. (a) The
328-2 department shall develop procedures for taking an application for
328-3 certification of eligibility for the tel-assistance service program
328-4 and for determining eligibility for that program.
328-5 (b) To be eligible for the tel-assistance service program,
328-6 an applicant must:
328-7 (1) be a head of household and disabled, as determined
328-8 by the department; and
328-9 (2) have a household income at or below the poverty
328-10 level, as determined by the United States Office of Management and
328-11 Budget and reported annually in the Federal Register.
328-12 (c) The burden of proving eligibility for the tel-assistance
328-13 service program is on the consumer applying for the program.
328-14 (V.A.C.S. Art. 1446c-0, Sec. 3.602(a).)
328-15 Sec. 56.073. ELIGIBLE CONSUMERS. (a) Each six months, the
328-16 department shall provide to each local exchange company a list of
328-17 all persons eligible for the tel-assistance service program that
328-18 includes each person's:
328-19 (1) name;
328-20 (2) address; and
328-21 (3) if applicable, telephone number.
328-22 (b) From the list of eligible persons, a local exchange
328-23 company shall identify the consumers to whom the company provides
328-24 service who are eligible for the program. (V.A.C.S. Art. 1446c-0,
328-25 Sec. 3.602(b) (part).)
328-26 Sec. 56.074. PROGRAM BILLING. (a) A local exchange company
328-27 shall begin tel-assistance service program billing for an eligible
329-1 consumer not later than the 60th day after the date the company
329-2 receives the list the department provides under Section 56.073(a).
329-3 (b) The local exchange company shall continue tel-assistance
329-4 service program billing for a consumer until the department
329-5 notifies the company that the consumer is not eligible for the
329-6 program. (V.A.C.S. Art. 1446c-0, Sec. 3.602(b) (part).)
329-7 Sec. 56.075. SERVICES ELIGIBLE; LIMIT. (a) The reduction
329-8 provided under the tel-assistance service program applies only to:
329-9 (1) residential flat rate basic local exchange
329-10 service;
329-11 (2) residential local exchange access service; and
329-12 (3) residential local area calling.
329-13 (b) The reduction for local area calling is limited to an
329-14 amount such that together with the reduction for local exchange
329-15 access service the rate does not exceed the comparable reduced flat
329-16 rate for the service. (V.A.C.S. Art. 1446c-0, Sec. 3.603(a)
329-17 (part).)
329-18 Sec. 56.076. SERVICES PROHIBITED. (a) A local exchange
329-19 company may not provide to the dwelling of a consumer participating
329-20 in the tel-assistance service program a local voice service other
329-21 than a service described by Section 56.075.
329-22 (b) A local exchange company may not provide a consumer
329-23 participating in the tel-assistance service program with:
329-24 (1) single or party line optional extended area
329-25 service;
329-26 (2) optional extended area calling service;
329-27 (3) foreign zone service; or
330-1 (4) foreign exchange service. (V.A.C.S. Art. 1446c-0,
330-2 Sec. 3.603(b) (part).)
330-3 Sec. 56.077. ADAPTIVE EQUIPMENT. This subchapter does not
330-4 prohibit a person who is eligible for the tel-assistance service
330-5 program from obtaining or using telecommunications equipment
330-6 designed to help a person use a telecommunications service.
330-7 (V.A.C.S. Art. 1446c-0, Sec. 3.603(b) (part).)
330-8 Sec. 56.078. RECOVERY OF LOST REVENUE. A local exchange
330-9 company is entitled to recover from the universal service fund any
330-10 loss of revenue that results solely from the provision of
330-11 tel-assistance service. (V.A.C.S. Art. 1446c-0, Sec. 3.607.)
330-12 (Sections 56.079-56.100 reserved for expansion)
330-13 SUBCHAPTER D. STATEWIDE TELECOMMUNICATIONS RELAY
330-14 ACCESS SERVICE
330-15 Sec. 56.101. PURPOSE. The purpose of this subchapter is to
330-16 provide for the uniform and coordinated provision by one
330-17 telecommunications carrier of a statewide telecommunications relay
330-18 access service for persons with an impairment of hearing or speech.
330-19 (V.A.C.S. Art. 1446c-0, Sec. 3.604(a) (part).)
330-20 Sec. 56.102. TELECOMMUNICATIONS RELAY ACCESS SERVICE. (a)
330-21 The commission shall adopt and enforce rules establishing a
330-22 statewide telecommunications relay access service for the use of a
330-23 person with an impairment of hearing or speech.
330-24 (b) The commission rules shall provide that the service
330-25 must:
330-26 (1) use specialized communications equipment, such as
330-27 a telecommunications device for the deaf, and operator
331-1 translations; and
331-2 (2) meet the criteria provided by Sections 56.103,
331-3 56.104, and 56.105. (V.A.C.S. Art. 1446c-0, Secs. 3.604(a) (part),
331-4 (b) (part).)
331-5 Sec. 56.103. TELECOMMUNICATIONS RELAY ACCESS SERVICE
331-6 REQUIREMENTS. (a) The telecommunications relay access service
331-7 shall provide a person with an impairment of hearing or speech with
331-8 access to the telecommunications network in this state equivalent
331-9 to the access provided other customers.
331-10 (b) The service consists of:
331-11 (1) switching and transmission of the call;
331-12 (2) live or automated verbal and print translations of
331-13 communications between a person with an impairment of hearing or
331-14 speech who uses a telecommunications device for the deaf or a
331-15 similar automated device and a person who does not have such
331-16 equipment; and
331-17 (3) other service enhancements proposed by the carrier
331-18 and approved by the commission. (V.A.C.S. Art. 1446c-0, Sec.
331-19 3.604(b) (part).)
331-20 Sec. 56.104. TELECOMMUNICATIONS RELAY ACCESS SERVICE
331-21 CHARGES. (a) For a call made using the telecommunications relay
331-22 access service, the person calling or called:
331-23 (1) may not be charged for a call that originates and
331-24 terminates in the same local calling area; and
331-25 (2) shall pay one-half of the total charges
331-26 established by contract with the commission for intrastate
331-27 interexchange calls.
332-1 (b) Charges related to providing the service that, under
332-2 Subsection (a), are not charged to a person calling or called shall
332-3 be funded from the universal service fund, as specified by the
332-4 service provider's contract with the commission.
332-5 (c) A local exchange company may not impose an interexchange
332-6 carrier access charge on a call using the service that originates
332-7 and terminates in the same local calling area.
332-8 (d) A local exchange company shall provide billing and
332-9 collection services for the service at just and reasonable rates.
332-10 (V.A.C.S. Art. 1446c-0, Sec. 3.604(b) (part).)
332-11 Sec. 56.105. TRIAL SERVICE COSTS AND DESIGN INFORMATION. If
332-12 the commission orders a local exchange company to provide for a
332-13 trial telecommunications relay access service for persons with an
332-14 impairment of hearing or speech, all pertinent costs and design
332-15 information from the trial must be made available to the public.
332-16 (V.A.C.S. Art. 1446c-0, Sec. 3.604(b) (part).)
332-17 Sec. 56.106. TELECOMMUNICATIONS RELAY ACCESS SERVICE
332-18 ASSESSMENTS. (a) The commission shall set appropriate assessments
332-19 for all telecommunications utilities to fund the telecommunications
332-20 relay access service.
332-21 (b) In setting an assessment, the commission shall consider:
332-22 (1) the aggregate calling pattern of service users;
332-23 and
332-24 (2) any other factor the commission finds appropriate
332-25 and in the public interest.
332-26 (c) The commission shall:
332-27 (1) review the assessments annually; and
333-1 (2) adjust the assessments as appropriate. (V.A.C.S.
333-2 Art. 1446c-0, Sec. 3.604(d).)
333-3 Sec. 56.107. UNIVERSAL SERVICE FUND SURCHARGE. (a) A
333-4 telecommunications utility may recover the utility's universal
333-5 service fund assessment for the telecommunications relay access
333-6 service through a surcharge added to the utility customers' bills.
333-7 (b) The commission shall specify how each telecommunications
333-8 utility is to determine the amount of the surcharge.
333-9 (c) If a telecommunications utility imposes the surcharge,
333-10 the bill shall list the surcharge as the "universal service fund
333-11 surcharge." (V.A.C.S. Art. 1446c-0, Sec. 3.604(c).)
333-12 Sec. 56.108. SELECTION OF TELECOMMUNICATIONS RELAY ACCESS
333-13 SERVICE CARRIER. (a) The commission shall select one
333-14 telecommunications carrier to provide the statewide
333-15 telecommunications relay access service.
333-16 (b) The commission shall make a written award of the
333-17 contract to the telecommunications carrier whose proposal is the
333-18 most advantageous to this state, considering:
333-19 (1) price;
333-20 (2) the interests of the community of persons with an
333-21 impairment of hearing or speech in having access to a high quality
333-22 and technologically advanced telecommunications system; and
333-23 (3) any other factor listed in the commission's
333-24 request for proposals.
333-25 (c) The commission shall consider each proposal in a manner
333-26 that does not disclose the contents of the proposal to a
333-27 telecommunications carrier making a competing proposal.
334-1 (d) The commission's evaluation of a telecommunications
334-2 carrier's proposal shall include the:
334-3 (1) charges for the service;
334-4 (2) service enhancements proposed by the carrier;
334-5 (3) technological sophistication of the network
334-6 proposed by the carrier; and
334-7 (4) date proposed for beginning the service.
334-8 (V.A.C.S. Art. 1446c-0, Sec. 3.604(e).)
334-9 Sec. 56.109. COMPENSATION OF CARRIER. (a) The
334-10 telecommunications carrier that provides the telecommunications
334-11 relay access service shall be compensated at rates and on terms
334-12 provided by the carrier's contract with the commission.
334-13 (b) The compensation may include:
334-14 (1) a return on the investment required to provide the
334-15 service; and
334-16 (2) compensation for unbillable or uncollectible calls
334-17 placed through the service.
334-18 (c) Compensation for unbillable or uncollectible calls is
334-19 subject to a reasonable limitation determined by the commission.
334-20 (V.A.C.S. Art. 1446c-0, Sec. 3.604(f).)
334-21 Sec. 56.110. ADVISORY COMMITTEE. (a) An advisory committee
334-22 to assist the commission in administering this subchapter is
334-23 composed of the following persons appointed by the commission:
334-24 (1) two deaf persons recommended by the Texas
334-25 Association of the Deaf;
334-26 (2) one person with a hearing impairment recommended
334-27 by Self-Help for the Hard of Hearing;
335-1 (3) one person with a hearing impairment recommended
335-2 by the American Association of Retired Persons;
335-3 (4) one deaf and blind person recommended by the Texas
335-4 Deaf/Blind Association;
335-5 (5) one person with a speech impairment and one person
335-6 with a speech and hearing impairment recommended by the Coalition
335-7 of Texans with Disabilities;
335-8 (6) two representatives of telecommunications
335-9 utilities, one representing a nonlocal exchange utility and one
335-10 representing a local exchange company, chosen from a list of
335-11 candidates provided by the Texas Telephone Association;
335-12 (7) two persons, at least one of whom is deaf, with
335-13 experience in providing relay services recommended by the Texas
335-14 Commission for the Deaf and Hard of Hearing; and
335-15 (8) two public members recommended by organizations
335-16 representing consumers of telecommunications services.
335-17 (b) Members of the advisory committee serve two-year terms.
335-18 A member whose term has expired shall continue to serve until a
335-19 qualified replacement is appointed. (V.A.C.S. Art. 1446c-0, Secs.
335-20 3.604(g), (h) (part).)
335-21 Sec. 56.111. ADVISORY COMMITTEE DUTIES. The advisory
335-22 committee shall:
335-23 (1) monitor the establishment, administration, and
335-24 promotion of the statewide telecommunications relay access service;
335-25 and
335-26 (2) advise the commission in pursuing a service that
335-27 meets the needs of persons with an impairment of hearing or speech
336-1 in communicating with other telecommunications services users.
336-2 (V.A.C.S. Art. 1446c-0, Sec. 3.604(h) (part).)
336-3 Sec. 56.112. ADVISORY COMMITTEE SUPPORT AND COSTS. (a) The
336-4 commission shall provide to the advisory committee:
336-5 (1) clerical and staff support; and
336-6 (2) a secretary to record committee meetings.
336-7 (b) The commission's costs associated with the advisory
336-8 committee shall be reimbursed from the universal service fund.
336-9 (V.A.C.S. Art. 1446c-0, Sec. 3.604(h) (part).)
336-10 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES
336-11 SUBCHAPTER A. GENERAL PROVISIONS
336-12 Sec. 57.001. CONFLICT OF PROVISIONS
336-13 (Sections 57.002-57.020 reserved for expansion)
336-14 SUBCHAPTER B. DISTANCE LEARNING AND INFORMATION SHARING
336-15 Sec. 57.021. DEFINITIONS
336-16 Sec. 57.022. REDUCED RATES FOR DISTANCE LEARNING OR
336-17 INFORMATION SHARING SERVICES
336-18 Sec. 57.023. SERVICE AND RATE REQUIREMENTS
336-19 Sec. 57.024. TARIFF FILINGS
336-20 Sec. 57.025. CHANGES IN RATE PROGRAM
336-21 (Sections 57.026-57.040 reserved for expansion)
336-22 SUBCHAPTER C. TELECOMMUNICATIONS INFRASTRUCTURE FUND
336-23 Sec. 57.041. FINDINGS AND POLICY
336-24 Sec. 57.042. DEFINITIONS
336-25 Sec. 57.043. TELECOMMUNICATIONS INFRASTRUCTURE FUND AND
336-26 ACCOUNTS
336-27 Sec. 57.044. TELECOMMUNICATIONS INFRASTRUCTURE FUND BOARD
337-1 Sec. 57.045. POWERS AND DUTIES OF BOARD
337-2 Sec. 57.046. USE OF ACCOUNTS
337-3 Sec. 57.047. GRANT AND LOAN PROGRAM
337-4 Sec. 57.048. ASSESSMENTS AND COLLECTIONS
337-5 Sec. 57.049. ISSUANCE OF WARRANTS
337-6 Sec. 57.050. ASSISTANCE OF OTHER AGENCIES
337-7 Sec. 57.051. SUNSET PROVISION
337-8 (Sections 57.052-57.070 reserved for expansion)
337-9 SUBCHAPTER D. INTERACTIVE MULTIMEDIA COMMUNICATIONS
337-10 Sec. 57.071. DEFINITION
337-11 Sec. 57.072. RATES FOR INTERACTIVE MULTIMEDIA
337-12 COMMUNICATIONS
337-13 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES
337-14 SUBCHAPTER A. GENERAL PROVISIONS
337-15 Sec. 57.001. CONFLICT OF PROVISIONS. If this chapter
337-16 conflicts with another provision of this title, this chapter
337-17 prevails. (V.A.C.S. Art. 1446c-0, Sec. 3.610.)
337-18 (Sections 57.002-57.020 reserved for expansion)
337-19 SUBCHAPTER B. DISTANCE LEARNING AND INFORMATION SHARING
337-20 Sec. 57.021. DEFINITIONS. In this subchapter:
337-21 (1) "Distance learning" means an instruction,
337-22 learning, or training resource, including video, data, voice, or
337-23 electronic information, that is:
337-24 (A) used by an educational institution
337-25 predominantly for instruction, learning, or training; and
337-26 (B) transmitted from a site to one or more other
337-27 sites by a telecommunications service.
338-1 (2) "Educational institution" includes:
338-2 (A) an accredited primary or secondary school;
338-3 (B) an institution of higher education as
338-4 defined by Section 61.003, Education Code;
338-5 (C) a private institution of higher education
338-6 accredited by a recognized accrediting agency as defined by Section
338-7 61.003, Education Code;
338-8 (D) the Texas Education Agency and its
338-9 successors and assigns;
338-10 (E) a regional education service center
338-11 established and operated in accordance with Chapter 8, Education
338-12 Code; or
338-13 (F) the Texas Higher Education Coordinating
338-14 Board and its successors and assigns.
338-15 (3) "Library" means:
338-16 (A) a public library or regional library system
338-17 as defined by Section 441.122, Government Code; or
338-18 (B) a library operated by an institution of
338-19 higher education or a school district. (V.A.C.S. Art. 1446c-0,
338-20 Sec. 3.605(h).)
338-21 Sec. 57.022. REDUCED RATES FOR DISTANCE LEARNING OR
338-22 INFORMATION SHARING SERVICES. (a) The commission by rule shall
338-23 require a dominant carrier to file a tariff that includes a reduced
338-24 rate for a telecommunications service the commission finds is
338-25 directly related to:
338-26 (1) a distance learning activity that is or could be
338-27 conducted by an educational institution in this state; or
339-1 (2) an information sharing program that is or could be
339-2 conducted by a library in this state.
339-3 (b) The commission rules shall specify:
339-4 (1) each telecommunications service to which
339-5 Subsection (a) applies;
339-6 (2) the process for an educational institution or
339-7 library to qualify for a reduced rate;
339-8 (3) the date by which a dominant carrier is required
339-9 to file a tariff;
339-10 (4) guidelines and criteria that require the services
339-11 and reduced rates to further the goals prescribed by Section
339-12 57.023; and
339-13 (5) any other requirement or term that the commission
339-14 determines to be in the public interest.
339-15 (c) The commission is not required to determine the long run
339-16 incremental cost of providing a service before approving a reduced
339-17 rate for the service.
339-18 (d) Until cost determination rules are developed and the
339-19 rates established under this section are changed as necessary to
339-20 ensure proper cost recovery, the reduced rates established by the
339-21 commission shall be equal to 75 percent of the otherwise applicable
339-22 rate.
339-23 (e) After the commission develops cost determination rules
339-24 for telecommunications services generally, the commission shall
339-25 ensure that a reduced rate approved under this section:
339-26 (1) recovers service-specific long run incremental
339-27 costs; and
340-1 (2) avoids subsidizing an educational institution or a
340-2 library. (V.A.C.S. Art. 1446c-0, Secs. 3.605(a), (b), (e).)
340-3 Sec. 57.023. SERVICE AND RATE REQUIREMENTS. The services
340-4 and reduced rates must be designed to:
340-5 (1) encourage the development and offering of:
340-6 (A) distance learning activities by educational
340-7 institutions; and
340-8 (B) information sharing programs of libraries;
340-9 (2) meet the:
340-10 (A) distance learning needs identified by the
340-11 educational community; and
340-12 (B) information sharing needs identified by
340-13 libraries; and
340-14 (3) recover the long run incremental costs of
340-15 providing the services, to the extent those costs can be
340-16 identified, to avoid subsidizing an educational institution or a
340-17 library. (V.A.C.S. Art. 1446c-0, Sec. 3.605(d).)
340-18 Sec. 57.024. TARIFF FILINGS. A tariff filed by a dominant
340-19 carrier under Section 57.022:
340-20 (1) may concern the implementation of this subchapter
340-21 only;
340-22 (2) is not a rate change under Subchapter C, Chapter
340-23 53; and
340-24 (3) does not affect the carrier's other rates or
340-25 services. (V.A.C.S. Art. 1446c-0, Sec. 3.605(c).)
340-26 Sec. 57.025. CHANGES IN RATE PROGRAM. (a) An educational
340-27 institution, library, or dominant carrier may request the
341-1 commission to:
341-2 (1) provide for a reduced rate for a service that:
341-3 (A) is directly related to a distance learning
341-4 activity or an information sharing program; and
341-5 (B) is not covered by commission rules;
341-6 (2) change a rate;
341-7 (3) amend a tariff; or
341-8 (4) amend a commission rule.
341-9 (b) The commission shall take the action requested under
341-10 Subsection (a) if the commission determines the action is
341-11 appropriate. (V.A.C.S. Art. 1446c-0, Secs. 3.605(f), (g).)
341-12 (Sections 57.026-57.040 reserved for expansion)
341-13 SUBCHAPTER C. TELECOMMUNICATIONS INFRASTRUCTURE FUND
341-14 Sec. 57.041. FINDINGS AND POLICY. (a) The legislature
341-15 finds that commercial mobile service providers:
341-16 (1) benefit from the public telecommunications network
341-17 by the ability to originate and terminate calls that traverse the
341-18 mobile and cellular network; and
341-19 (2) will benefit by the advancement of the public
341-20 telecommunications network through projects funded under this
341-21 subchapter.
341-22 (b) It is the policy of this state that commercial mobile
341-23 service providers contribute an appropriate amount to the
341-24 telecommunications infrastructure fund. (V.A.C.S. Art. 1446c-0,
341-25 Sec. 3.606(b).)
341-26 Sec. 57.042. DEFINITIONS. In this subchapter:
341-27 (1) "Board" means the telecommunications
342-1 infrastructure fund board.
342-2 (2) "Commercial mobile service provider" means a
342-3 provider of commercial mobile service as defined by Section 332(d),
342-4 Communications Act of 1934 (47 U.S.C. Section 151 et seq.),
342-5 Federal Communications Commission rules, and the Omnibus Budget
342-6 Reconciliation Act of 1993 (Pub. L. No. 103-66).
342-7 (3) "Fund" means the telecommunications infrastructure
342-8 fund.
342-9 (4) "Institution of higher education" means:
342-10 (A) an institution of higher education as
342-11 defined by Section 61.003, Education Code; or
342-12 (B) a private or independent institution of
342-13 higher education as defined by Section 61.003, Education Code.
342-14 (5) "Library" means:
342-15 (A) a public library or regional library system
342-16 as those terms are defined by Section 441.122, Government Code; or
342-17 (B) a library operated by an institution of
342-18 higher education or a school district.
342-19 (6) "Public not-for-profit health care facility" means
342-20 a rural or regional hospital or other entity such as a rural health
342-21 clinic that:
342-22 (A) is supported by local or regional tax
342-23 revenue; or
342-24 (B) is a certified not-for-profit health
342-25 corporation, under federal law.
342-26 (7) "School district" includes an independent school
342-27 district, a common school district, and a rural high school
343-1 district.
343-2 (8) "Telemedicine":
343-3 (A) means medical services delivered by
343-4 telecommunications technologies to rural or underserved public
343-5 not-for-profit health care facilities or primary health care
343-6 facilities in collaboration with an academic health center and an
343-7 associated teaching hospital or tertiary center; and
343-8 (B) includes consultive services, diagnostic
343-9 services, interactive video consultation, teleradiology,
343-10 telepathology, and distance education for working health care
343-11 professionals. (V.A.C.S. Art. 1446c-0, Secs. 3.606(a)(1), (2), (3),
343-12 (4), (5), (7), (8), (9).)
343-13 Sec. 57.043. TELECOMMUNICATIONS INFRASTRUCTURE FUND AND
343-14 ACCOUNTS. (a) The telecommunications infrastructure fund is
343-15 composed of the telecommunications utilities account and the
343-16 commercial mobile service providers account.
343-17 (b) The telecommunications utilities account is financed by
343-18 an annual assessment on each telecommunications utility doing
343-19 business in this state. A telecommunications utility shall pay the
343-20 annual assessment according to the ratio that the annual taxable
343-21 telecommunications receipts reported by that telecommunications
343-22 utility under Chapter 151, Tax Code, bears to the total annual
343-23 taxable telecommunications receipts reported by all
343-24 telecommunications utilities under that chapter.
343-25 (c) The commercial mobile service providers account is
343-26 financed by an annual assessment on each commercial mobile service
343-27 provider doing business in this state. Each commercial mobile
344-1 service provider shall pay the annual assessment according to the
344-2 ratio that the annual taxable telecommunications receipts reported
344-3 by that provider under Chapter 151, Tax Code, bears to the total
344-4 annual taxable telecommunications receipts reported by all
344-5 commercial mobile service providers under that chapter.
344-6 (d) Money in the fund may be appropriated only for a use
344-7 consistent with the purposes of this subchapter. (V.A.C.S.
344-8 Art. 1446c-0, Secs. 3.606(j), (k), (n) (part).)
344-9 Sec. 57.044. TELECOMMUNICATIONS INFRASTRUCTURE FUND BOARD.
344-10 (a) The telecommunications infrastructure fund board consists of:
344-11 (1) three members appointed by the governor;
344-12 (2) three members appointed by the governor from a
344-13 list of individuals provided by the speaker of the house of
344-14 representatives; and
344-15 (3) three members appointed by the lieutenant
344-16 governor.
344-17 (b) The governor shall designate the presiding officer of
344-18 the board.
344-19 (c) The governor and the lieutenant governor, in making
344-20 appointments to the board, and the speaker of the house of
344-21 representatives, in compiling a list of recommended persons, shall
344-22 attempt to select members who are representative of, but not
344-23 limited to:
344-24 (1) urban and rural school districts;
344-25 (2) institutions of higher education;
344-26 (3) libraries; and
344-27 (4) the public.
345-1 (d) A person may not serve on the board if the person is
345-2 required to register as a lobbyist under Chapter 305, Government
345-3 Code, because of the person's activities for compensation on behalf
345-4 of a profession related to the operation of the board.
345-5 (e) Members of the board:
345-6 (1) serve without pay; and
345-7 (2) are entitled to reimbursement for their actual
345-8 expenses incurred in attending meetings of the board or attending
345-9 to other work of the board if approved by the presiding officer.
345-10 (f) Members of the board serve for staggered, six-year
345-11 terms, with three members' terms expiring on August 31 of each
345-12 odd-numbered year. (V.A.C.S. Art. 1446c-0, Secs. 3.606(c) (part),
345-13 (d), (e).)
345-14 Sec. 57.045. POWERS AND DUTIES OF BOARD. (a) The board
345-15 shall administer the fund and the two accounts in the fund.
345-16 (b) The board shall prepare an annual report that:
345-17 (1) details the revenues deposited to the credit of
345-18 the fund, including each account; and
345-19 (2) summarizes the grants and loans made from each
345-20 account.
345-21 (c) Not later than January 15 of each year, the board shall
345-22 submit the report for the preceding year to the governor and to
345-23 each standing committee in the senate and house of representatives
345-24 that has jurisdiction over public or higher education.
345-25 (d) The board may:
345-26 (1) enter into contracts with state agencies or
345-27 private entities necessary to perform the board's duties;
346-1 (2) employ personnel reasonably necessary to perform
346-2 duties delegated by the board;
346-3 (3) appoint one or more committees to assist the board
346-4 in performing the board's duties; and
346-5 (4) accept a gift or grant and use it for the purposes
346-6 of this subchapter. (V.A.C.S. Art. 1446c-0, Secs. 3.606(c) (part),
346-7 (g), (h), (i), (p).)
346-8 Sec. 57.046. USE OF ACCOUNTS. (a) The board shall use
346-9 money in the telecommunications utilities account to award grants
346-10 and loans in accordance with this subchapter to fund:
346-11 (1) purchases of equipment for public schools,
346-12 including computers, printers, computer labs, and video equipment;
346-13 and
346-14 (2) intracampus and intercampus wiring to enable those
346-15 public schools to use the equipment.
346-16 (b) The board shall use money in the commercial mobile
346-17 service providers account for any purpose authorized by this
346-18 subchapter, including:
346-19 (1) equipment purchases;
346-20 (2) wiring;
346-21 (3) material;
346-22 (4) program development;
346-23 (5) training;
346-24 (6) installation costs; and
346-25 (7) a statewide telecommunications network. (V.A.C.S.
346-26 Art. 1446c-0, Sec. 3.606(q).)
346-27 Sec. 57.047. GRANT AND LOAN PROGRAM. (a) The board may
347-1 award a grant to a project or proposal that:
347-2 (1) provides equipment and infrastructure necessary
347-3 for:
347-4 (A) distance learning;
347-5 (B) an information sharing program of a library;
347-6 or
347-7 (C) telemedicine services;
347-8 (2) develops and implements the initial or
347-9 prototypical delivery of a course or other distance learning
347-10 material;
347-11 (3) trains teachers, faculty, librarians, or
347-12 technicians in the use of distance learning or information sharing
347-13 materials and equipment;
347-14 (4) develops a curriculum or instructional material
347-15 specially suited for telecommunications delivery;
347-16 (5) provides electronic information; or
347-17 (6) establishes or carries out an information sharing
347-18 program.
347-19 (b) The board may award a loan to a project or proposal to
347-20 acquire equipment needed for distance learning and telemedicine
347-21 projects.
347-22 (c) In awarding a grant or loan under this subchapter, the
347-23 board shall give priority to a project or proposal that:
347-24 (1) represents collaborative efforts involving more
347-25 than one school, university, or library;
347-26 (2) contributes matching funds from another source;
347-27 (3) shows promise of becoming self-sustaining;
348-1 (4) helps users of information learn new ways to
348-2 acquire and use information through telecommunications;
348-3 (5) extends specific educational information and
348-4 knowledge services to a group not previously served, especially a
348-5 group in a rural or remote area;
348-6 (6) results in more efficient or effective learning
348-7 than through conventional teaching;
348-8 (7) improves the effectiveness and efficiency of
348-9 health care delivery; or
348-10 (8) takes advantage of distance learning opportunities
348-11 in a rural or urban school district with a:
348-12 (A) disproportionate number of at-risk youths;
348-13 or
348-14 (B) high dropout rate.
348-15 (d) In distributing money to public schools, the board
348-16 shall:
348-17 (1) consider the relative property wealth per student
348-18 of the school districts that receive the money; and
348-19 (2) recognize the unique needs of rural communities.
348-20 (e) A grant or loan awarded under this section is subject to
348-21 the limitations prescribed by Section 57.046. (V.A.C.S.
348-22 Art. 1446c-0, Secs. 3.606(r), (s), (t), (v).)
348-23 Sec. 57.048. ASSESSMENTS AND COLLECTIONS. (a) For each
348-24 fiscal year beginning before September 1, 2005, the comptroller
348-25 shall assess and collect an annual total of $75 million from
348-26 telecommunications utilities and an annual total of $75 million
348-27 from commercial mobile service providers.
349-1 (b) The comptroller shall assess and collect the money each
349-2 year without respect to whether the money previously collected and
349-3 deposited in either account has been disbursed or spent.
349-4 (c) The comptroller may require a telecommunications utility
349-5 or commercial mobile service provider to provide any report or
349-6 information necessary to fulfill the comptroller's duties under
349-7 this section. Information provided to the comptroller under this
349-8 section is confidential and exempt from disclosure under Chapter
349-9 552, Government Code.
349-10 (d) Money collected by the comptroller from a
349-11 telecommunications utility under this section shall be deposited to
349-12 the credit of the telecommunications utilities account in the fund.
349-13 (e) Money collected by the comptroller from a commercial
349-14 mobile service provider under this section shall be deposited to
349-15 the credit of the commercial mobile service providers account in
349-16 the fund. (V.A.C.S. Art. 1446c-0, Secs. 3.606(l), (m), (n)
349-17 (part).)
349-18 Sec. 57.049. ISSUANCE OF WARRANTS. From money appropriated
349-19 to the board, the comptroller shall issue warrants the board
349-20 requests in accordance with the purposes of this subchapter,
349-21 including warrants to grantees of the board in amounts the board
349-22 certifies to the comptroller. (V.A.C.S. Art. 1446c-0, Sec.
349-23 3.606(o).)
349-24 Sec. 57.050. ASSISTANCE OF OTHER AGENCIES. The following
349-25 agencies, in consultation with the board, shall adopt policies and
349-26 procedures that are designed to aid the board in achieving the
349-27 purposes of this subchapter:
350-1 (1) the Texas Higher Education Coordinating Board;
350-2 (2) the Texas Education Agency; and
350-3 (3) the Texas State Library and Archives Commission.
350-4 (V.A.C.S. Art. 1446c-0, Sec. 3.606(u).)
350-5 Sec. 57.051. SUNSET PROVISION. The board is subject to
350-6 Chapter 325, Government Code (Texas Sunset Act). Unless continued
350-7 in existence as provided by that chapter, the board is abolished
350-8 and this subchapter expires September 1, 2006. (V.A.C.S.
350-9 Art. 1446c-0, Sec. 3.606(f) (part).)
350-10 (Sections 57.052-57.070 reserved for expansion)
350-11 SUBCHAPTER D. INTERACTIVE MULTIMEDIA COMMUNICATIONS
350-12 Sec. 57.071. DEFINITION. In this subchapter, "interactive
350-13 multimedia communications" means real-time, two-way, interactive
350-14 voice, video, and data communications conducted over networks that
350-15 link geographically dispersed locations. (V.A.C.S. Art. 1446c-0,
350-16 Sec. 3.609(b).)
350-17 Sec. 57.072. RATES FOR INTERACTIVE MULTIMEDIA
350-18 COMMUNICATIONS. (a) The commission shall permit a local exchange
350-19 company that provides an interactive multimedia communications
350-20 service to establish, using sound ratemaking principles, rates
350-21 necessary to recover costs associated with providing the service.
350-22 (b) A local exchange company may not establish a rate under
350-23 Subsection (a) that is less than the local exchange company's long
350-24 run incremental costs of providing the interactive multimedia
350-25 communications service, unless the commission determines it to be
350-26 in the public interest to do so. (V.A.C.S. Art. 1446c-0, Sec.
350-27 3.609(a).)
351-1 CHAPTER 58. INCENTIVE REGULATION
351-2 SUBCHAPTER A. GENERAL PROVISIONS
351-3 Sec. 58.001. POLICY
351-4 Sec. 58.002. DEFINITION
351-5 (Sections 58.003-58.020 reserved for expansion)
351-6 SUBCHAPTER B. ELECTION OF INCENTIVE REGULATION
351-7 Sec. 58.021. ELECTION
351-8 Sec. 58.022. CHAPTER CONTROLS
351-9 Sec. 58.023. SERVICE CLASSIFICATION
351-10 Sec. 58.024. SERVICE RECLASSIFICATION
351-11 Sec. 58.025. COMPLAINT OR HEARING
351-12 Sec. 58.026. CONSUMER COMPLAINTS REGARDING TARIFFS
351-13 Sec. 58.027. CONSUMER COMPLAINTS REGARDING SERVICES;
351-14 ENFORCEMENT OF STANDARDS
351-15 Sec. 58.028. REVIEW AND REPORT OF EFFECTS OF ELECTION
351-16 (Sections 58.029-58.050 reserved for expansion)
351-17 SUBCHAPTER C. BASIC NETWORK SERVICES
351-18 Sec. 58.051. SERVICES INCLUDED
351-19 Sec. 58.052. REGULATION OF SERVICES
351-20 Sec. 58.053. INVESTMENT LIMITATION ON SERVICE STANDARDS
351-21 Sec. 58.054. RATES CAPPED
351-22 Sec. 58.055. RATE ADJUSTMENT BY COMPANY
351-23 Sec. 58.056. RATE ADJUSTMENT FOR CHANGES IN FCC SEPARATIONS
351-24 Sec. 58.057. RATE ADJUSTMENT FOR CERTAIN COMPANIES
351-25 Sec. 58.058. RATE GROUP RECLASSIFICATION
351-26 Sec. 58.059. COMMISSION RATE ADJUSTMENT PROCEDURE
351-27 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION
352-1 Sec. 58.061. EFFECT ON CERTAIN CHARGES
352-2 Sec. 58.062. SWITCHED ACCESS RATES
352-3 (Sections 58.063-58.100 reserved for expansion)
352-4 SUBCHAPTER D. DISCRETIONARY SERVICES
352-5 Sec. 58.101. SERVICE INCLUDED
352-6 Sec. 58.102. MAXIMUM PRICE
352-7 Sec. 58.103. PRICE FOR SERVICE
352-8 Sec. 58.104. USE OF CERTAIN REGULATORY TREATMENT
352-9 (Sections 58.105-58.150 reserved for expansion)
352-10 SUBCHAPTER E. COMPETITIVE SERVICES
352-11 Sec. 58.151. SERVICES INCLUDED
352-12 Sec. 58.152. PRICES
352-13 (Sections 58.153-58.200 reserved for expansion)
352-14 SUBCHAPTER F. GENERAL INFRASTRUCTURE COMMITMENT
352-15 Sec. 58.201. STATEMENT OF STATE GOAL
352-16 Sec. 58.202. POLICY GOALS FOR IMPLEMENTATION
352-17 Sec. 58.203. INFRASTRUCTURE GOALS OF ALL ELECTING COMPANIES
352-18 Sec. 58.204. ADDITIONAL INFRASTRUCTURE COMMITMENT OF CERTAIN
352-19 COMPANIES
352-20 Sec. 58.205. EXTENSION OR WAIVER OF INFRASTRUCTURE
352-21 REQUIREMENTS
352-22 Sec. 58.206. IMPLEMENTATION COSTS; INCREASE IN RATES AND
352-23 UNIVERSAL SERVICE FUNDS
352-24 (Sections 58.207-58.250 reserved for expansion)
352-25 SUBCHAPTER G. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
352-26 Sec. 58.251. INTENT AND GOAL OF SUBCHAPTER
352-27 Sec. 58.252. DEFINITIONS
353-1 Sec. 58.253. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES
353-2 Sec. 58.254. PRIORITIES
353-3 Sec. 58.255. CONTRACTS FOR PRIVATE NETWORK SERVICES
353-4 Sec. 58.256. PREFERRED RATE TREATMENT WARRANTED
353-5 Sec. 58.257. ELECTION OF RATE TREATMENT
353-6 Sec. 58.258. PRIVATE NETWORK SERVICES RATES AND TARIFFS
353-7 Sec. 58.259. TARIFF RATE FOR CERTAIN INTRALATA SERVICE
353-8 Sec. 58.260. POINT-TO-POINT 45 MEGABITS A SECOND INTRALATA
353-9 SERVICE
353-10 Sec. 58.261. BROADBAND DIGITAL SPECIAL ACCESS SERVICE
353-11 Sec. 58.262. EXPANDED INTERCONNECTION
353-12 Sec. 58.263. INTERNET ACCESS
353-13 Sec. 58.264. COMPLAINTS LIMITED
353-14 Sec. 58.265. INTERCONNECTION OF NETWORK SERVICES
353-15 Sec. 58.266. SHARING OR RESALE OF NETWORK SERVICES
353-16 Sec. 58.267. IMPLEMENTATION COSTS; INCREASE IN RATES AND
353-17 UNIVERSAL SERVICE FUNDS
353-18 CHAPTER 58. INCENTIVE REGULATION
353-19 SUBCHAPTER A. GENERAL PROVISIONS
353-20 Sec. 58.001. POLICY. Considering the status of competition
353-21 in the telecommunications industry, it is the policy of this state
353-22 to:
353-23 (1) provide a framework for an orderly transition from
353-24 the traditional regulation of return on invested capital to a fully
353-25 competitive telecommunications marketplace in which all
353-26 telecommunications providers compete on fair terms;
353-27 (2) preserve and enhance universal telecommunications
354-1 service at affordable rates;
354-2 (3) upgrade the telecommunications infrastructure of
354-3 this state;
354-4 (4) promote network interconnectivity; and
354-5 (5) promote diversity in the supply of
354-6 telecommunications services and innovative products and services
354-7 throughout the entire state, including urban and rural areas.
354-8 (V.A.C.S. Art. 1446c-0, Sec. 3.351.)
354-9 Sec. 58.002. DEFINITION. In this chapter, "electing
354-10 company" means an incumbent local exchange company that elects to
354-11 be subject to incentive regulation and to make the corresponding
354-12 infrastructure commitment under this chapter. (V.A.C.S.
354-13 Art. 1446c-0, Sec. 3.352(b)(1) (part).)
354-14 (Sections 58.003-58.020 reserved for expansion)
354-15 SUBCHAPTER B. ELECTION OF INCENTIVE REGULATION
354-16 Sec. 58.021. ELECTION. (a) An incumbent local exchange
354-17 company may elect to be subject to incentive regulation and to make
354-18 the corresponding infrastructure commitment under this chapter by
354-19 notifying the commission in writing of its election.
354-20 (b) The notice must include a statement that the company
354-21 agrees to:
354-22 (1) limit for four years any increase in a rate the
354-23 company charges for basic network services as prescribed by
354-24 Subchapter C; and
354-25 (2) fulfill the infrastructure commitment prescribed
354-26 by Subchapters F and G. (V.A.C.S. Art. 1446c-0, Sec. 3.352(a).)
354-27 Sec. 58.022. CHAPTER CONTROLS. This chapter governs the
355-1 regulation of an electing company's telecommunications services
355-2 regardless of whether the company is a dominant carrier. (V.A.C.S.
355-3 Art. 1446c-0, Sec. 3.352(c).)
355-4 Sec. 58.023. SERVICE CLASSIFICATION. On election, the
355-5 services provided by an electing company are classified into three
355-6 categories:
355-7 (1) basic network services governed by Subchapter C;
355-8 (2) discretionary services governed by Subchapter D;
355-9 and
355-10 (3) competitive services governed by Subchapter E.
355-11 (V.A.C.S. Art. 1446c-0, Sec. 3.352(b)(1).)
355-12 Sec. 58.024. SERVICE RECLASSIFICATION. (a) The commission
355-13 may reclassify a:
355-14 (1) basic network service as a discretionary or
355-15 competitive service; or
355-16 (2) discretionary service as a competitive service.
355-17 (b) The commission shall establish criteria for determining
355-18 whether a service should be reclassified. The criteria must include
355-19 consideration of the:
355-20 (1) availability of the service from other providers;
355-21 (2) proportion of the market that receives the
355-22 service;
355-23 (3) effect of the reclassification on service
355-24 subscribers; and
355-25 (4) nature of the service.
355-26 (c) The commission may not reclassify a service until each
355-27 competitive safeguard prescribed by Subchapters B-G, Chapter 60, is
356-1 fully implemented. (V.A.C.S. Art. 1446c-0, Secs. 3.352(b)(2),
356-2 3.355(c), 3.356(b), 3.357.)
356-3 Sec. 58.025. COMPLAINT OR HEARING. (a) An electing company
356-4 is not, under any circumstances, subject to a complaint, hearing,
356-5 or determination regarding the reasonableness of the company's:
356-6 (1) rates;
356-7 (2) overall revenues;
356-8 (3) return on invested capital; or
356-9 (4) net income.
356-10 (b) This section does not prohibit a complaint, hearing, or
356-11 determination on an electing company's implementation and
356-12 enforcement of a competitive safeguard required by Chapter 60.
356-13 (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
356-14 Sec. 58.026. CONSUMER COMPLAINTS REGARDING TARIFFS. (a)
356-15 This chapter does not restrict:
356-16 (1) a consumer's right to complain to the commission
356-17 about the application of an ambiguous tariff; or
356-18 (2) the commission's right to determine:
356-19 (A) the proper application of that tariff; or
356-20 (B) the proper rate if that tariff does not
356-21 apply.
356-22 (b) This section does not permit the commission to:
356-23 (1) lower a tariff rate except as specifically
356-24 provided by this title;
356-25 (2) change the commission's interpretation of a
356-26 tariff; or
356-27 (3) extend the application of a tariff to a new class
357-1 of customers. (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
357-2 Sec. 58.027. CONSUMER COMPLAINTS REGARDING SERVICES;
357-3 ENFORCEMENT OF STANDARDS. This chapter does not restrict:
357-4 (1) a consumer's right to complain to the commission
357-5 about quality of service; or
357-6 (2) the commission's right to enforce a quality of
357-7 service standard. (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
357-8 Sec. 58.028. REVIEW AND REPORT OF EFFECTS OF ELECTION. (a)
357-9 Not later than January 1, 2000, the commission shall begin a review
357-10 and evaluation of each company that elects under this chapter or
357-11 Chapter 59.
357-12 (b) The review must include an evaluation of the effects of
357-13 the election, including:
357-14 (1) consumer benefits;
357-15 (2) impact of competition;
357-16 (3) infrastructure investments; and
357-17 (4) quality of service.
357-18 (c) The commission shall file a report with the legislature
357-19 not later than January 1, 2001. The report must include the
357-20 commission's recommendations as to whether the incentive regulation
357-21 provided by this chapter and Chapter 59 should be extended,
357-22 modified, eliminated, or replaced with another form of regulation.
357-23 (d) This section expires September 1, 2001. (V.A.C.S.
357-24 Art. 1446c-0, Sec. 3.356(d) (part).)
357-25 (Sections 58.029-58.050 reserved for expansion)
357-26 SUBCHAPTER C. BASIC NETWORK SERVICES
357-27 Sec. 58.051. SERVICES INCLUDED. Unless reclassified under
358-1 Section 58.024, the following services are basic network services:
358-2 (1) flat rate residential and business local exchange
358-3 telephone service, including primary directory listings and the
358-4 receipt of a directory and any applicable mileage or zone charges;
358-5 (2) tone dialing service;
358-6 (3) lifeline and tel-assistance service;
358-7 (4) service connection for basic services;
358-8 (5) direct inward dialing service for basic services;
358-9 (6) private pay telephone access service;
358-10 (7) call trap and trace service;
358-11 (8) access to 911 service provided by a local
358-12 authority and access to dual party relay service;
358-13 (9) switched access service;
358-14 (10) interconnection to competitive providers;
358-15 (11) mandatory extended area service arrangements;
358-16 (12) mandatory extended metropolitan service or other
358-17 mandatory toll-free calling arrangements;
358-18 (13) interconnection for commercial mobile service
358-19 providers;
358-20 (14) directory assistance; and
358-21 (15) "1-plus" intraLATA message toll service.
358-22 (V.A.C.S. Art. 1446c-0, Sec. 3.353(a).)
358-23 Sec. 58.052. REGULATION OF SERVICES. (a) Except as
358-24 provided by Subchapter E, Chapter 52, basic network services of an
358-25 electing company are regulated:
358-26 (1) in accordance with this chapter; and
358-27 (2) to the extent not inconsistent with this chapter,
359-1 in accordance with:
359-2 (A) Subtitle A;
359-3 (B) Chapters 51, 54, 60, 62, and 63;
359-4 (C) Chapter 52, except for Subchapter F;
359-5 (D) Subchapters C, D, and E, Chapter 53;
359-6 (E) Chapter 55, except for:
359-7 (i) Subchapters F and G; and
359-8 (ii) Sections 55.001, 55.002, 55.003, and
359-9 55.004;
359-10 (F) Sections 53.001, 53.003, 53.004, 53.006,
359-11 53.065, 55.005, 55.006, 55.009, and 55.010; and
359-12 (G) commission rules and procedures.
359-13 (b) The commission must approve a change in the terms of the
359-14 tariff offering of a basic network service. (V.A.C.S.
359-15 Art. 1446c-0, Sec. 3.353(d).)
359-16 Sec. 58.053. INVESTMENT LIMITATION ON SERVICE STANDARDS.
359-17 (a) The commission may not raise a service standard applicable to
359-18 the provision of local exchange telephone service by an electing
359-19 company if the increased investment required to comply with the
359-20 raised standard in any year exceeds 10 percent of the company's
359-21 average annual intrastate additions in capital investment for the
359-22 most recent five-year period.
359-23 (b) In computing the average under Subsection (a), the
359-24 company shall exclude:
359-25 (1) extraordinary investments made during the
359-26 five-year period; and
359-27 (2) investments required by Section 58.203. (V.A.C.S.
360-1 Art. 1446c-0, Secs. 3.353(b) (part), 3.358(b) (part).)
360-2 Sec. 58.054. RATES CAPPED. (a) As a condition of election
360-3 under this chapter, an electing company shall commit to not
360-4 increasing a rate for a basic network service on or before the
360-5 fourth anniversary of its election date.
360-6 (b) The rates an electing company may charge on or before
360-7 that fourth anniversary are the rates charged by the company on
360-8 June 1, 1995, without regard to a proceeding pending under:
360-9 (1) Section 15.001;
360-10 (2) Subchapter D, Chapter 53; or
360-11 (3) Subchapter G, Chapter 2001, Government Code.
360-12 (V.A.C.S. Art. 1446c-0, Secs. 3.352(a) (part), 3.353(e) (part).)
360-13 Sec. 58.055. RATE ADJUSTMENT BY COMPANY. (a) An electing
360-14 company may increase a rate for a basic network service during the
360-15 four-year period prescribed by Section 58.054 only:
360-16 (1) with commission approval that the proposed change
360-17 is included in Section 58.056, 58.057, or 58.058; and
360-18 (2) as provided by Sections 58.056, 58.057, 58.058,
360-19 and 58.059.
360-20 (b) Notwithstanding Subchapter F, Chapter 60, an electing
360-21 company may, on its own initiative, decrease a rate for a basic
360-22 network service during the four-year period.
360-23 (c) The company may decrease the rate for switched access
360-24 service to an amount above the service's long run incremental cost.
360-25 (d) The company may decrease the rate for a basic local
360-26 telecommunications service other than switched access to an amount
360-27 above the service's appropriate cost. If the company has been
361-1 required to perform or has elected to perform a long run
361-2 incremental cost study, the appropriate cost for the service is the
361-3 service's long run incremental cost. (V.A.C.S. Art. 1446c-0, Secs.
361-4 3.353(b) (part), (c)(1).)
361-5 Sec. 58.056. RATE ADJUSTMENT FOR CHANGES IN FCC SEPARATIONS.
361-6 The commission, on motion of the electing company or on its own
361-7 motion, shall proportionally adjust rates for services to reflect
361-8 changes in Federal Communications Commission separations that
361-9 affect intrastate net income by at least 10 percent. (V.A.C.S.
361-10 Art. 1446c-0, Sec. 3.353(c)(2).)
361-11 Sec. 58.057. RATE ADJUSTMENT FOR CERTAIN COMPANIES. (a) An
361-12 electing company, after the 42nd month after the date the company
361-13 elects incentive regulation under this chapter, may file an
361-14 application for a commission review of the company's need for
361-15 changes in the rates of its services if the company:
361-16 (1) has fewer than five million access lines in this
361-17 state; and
361-18 (2) is complying with:
361-19 (A) the company's infrastructure commitment;
361-20 (B) each requirement relating to quality of
361-21 service; and
361-22 (C) each commission rule adopted under Chapter
361-23 60.
361-24 (b) The company's application may request that the
361-25 commission adjust rates, implement new pricing plans, restructure
361-26 rates, or rebalance revenues between services to recognize changed
361-27 market conditions and the effects of competitive entry.
362-1 (c) The commission may use an index and a productivity
362-2 offset in determining the requested changes.
362-3 (d) The commission may not:
362-4 (1) order an increase in the rate for residential
362-5 local exchange telephone service that would cause the rate to
362-6 increase by more than the United States Consumer Price Index in any
362-7 12-month period; or
362-8 (2) set the monthly rate for residential local
362-9 exchange telephone service in an amount that exceeds the nationwide
362-10 average rates for similar local exchange telephone services.
362-11 (V.A.C.S. Art. 1446c-0, Sec. 3.353(c)(3).)
362-12 Sec. 58.058. RATE GROUP RECLASSIFICATION. Notwithstanding
362-13 Subchapter B, the commission, on request of the electing company,
362-14 shall allow a rate group reclassification that results from access
362-15 line growth. (V.A.C.S. Art. 1446c-0, Sec. 3.353(c)(4).)
362-16 Sec. 58.059. COMMISSION RATE ADJUSTMENT PROCEDURE. (a) In
362-17 accordance with this section, an electing company may request and
362-18 the commission may authorize a rate adjustment under Section
362-19 58.056, 58.057, or 58.058.
362-20 (b) The electing company must provide to the commission
362-21 notice of its intent to adjust rates. The notice must be
362-22 accompanied by sufficient documentary evidence to demonstrate that
362-23 the rate adjustment is authorized under Section 58.056, 58.057, or
362-24 58.058. The commission by rule or order shall prescribe the
362-25 documentation required under this subsection.
362-26 (c) The electing company must also provide notice to its
362-27 customers after providing notice to the commission. The notice to
363-1 the customers must:
363-2 (1) within a reasonable period after notice to the
363-3 commission, be published once in a newspaper of general circulation
363-4 in the affected service area;
363-5 (2) be included in or printed on each affected
363-6 consumer's bill in the first billing that occurs after notice is
363-7 filed with the commission;
363-8 (3) have a title that includes the name of the company
363-9 and the words "NOTICE OF POSSIBLE RATE CHANGE"; and
363-10 (4) include:
363-11 (A) a statement that the consumer's rate may
363-12 change;
363-13 (B) an estimate of the amount of the annual
363-14 change for the typical residential, business, or access consumer if
363-15 the commission approves the rate change;
363-16 (C) a statement that a consumer who wants to
363-17 comment on the rate change or who wants additional information
363-18 regarding the rate change may call or write the commission and that
363-19 the information will be provided without cost to the consumer and
363-20 at the expense of the electing company; and
363-21 (D) the commission's telephone number and
363-22 address.
363-23 (d) The estimate of the amount of the annual change required
363-24 by Subsection (c)(4)(B) must be printed in a type style and size
363-25 that is distinct from and larger than the type style and size of
363-26 the body of the notice.
363-27 (e) The commission shall review the proposed rates to
364-1 determine if the rate adjustment is authorized under Section
364-2 58.056, 58.057, or 58.058.
364-3 (f) The rate adjustment takes effect on the 90th day after
364-4 the date the electing company completes the notice required by this
364-5 section unless the commission suspends the effective date under
364-6 Subsection (g).
364-7 (g) At any time before a rate adjustment is scheduled to
364-8 take effect, the commission, on its own motion or on complaint by
364-9 an affected party, may suspend the effective date of the rate
364-10 adjustment and conduct a hearing to review the proposed adjustment.
364-11 After the hearing, the commission may issue an order approving the
364-12 adjustment, or if it finds that the adjustment is not authorized
364-13 under Section 58.056, 58.057, or 58.058, issue an order modifying
364-14 or rejecting the adjustment. An order modifying or rejecting a
364-15 rate adjustment must specify:
364-16 (1) each reason why the proposed adjustment was not
364-17 authorized by Section 58.056, 58.057, or 58.058; and
364-18 (2) how the proposed adjustment may be changed so that
364-19 it is authorized.
364-20 (h) Except as provided by this section, a request for a
364-21 rate restructure must comply with the notice and hearing
364-22 requirements prescribed by Sections 53.101-53.106.
364-23 (i) An electing company that has not more than five percent
364-24 of the total access lines in this state may adopt as the cost for
364-25 a service the cost for the same or substantially similar service
364-26 offered by a larger incumbent local exchange company. The electing
364-27 company may adopt the larger company's cost only if the cost was
365-1 determined based on a long run incremental cost study. An electing
365-2 company that adopts a cost under this subsection is not required to
365-3 present its own long run incremental cost study to support the
365-4 adopted cost. (V.A.C.S. Art. 1446c-0, Sec. 3.354.)
365-5 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION. After
365-6 the four-year period prescribed by Section 58.054 expires, an
365-7 electing company may increase a rate for a basic network service
365-8 only:
365-9 (1) with commission approval subject to this title;
365-10 and
365-11 (2) to the extent consistent with achieving universal
365-12 affordable service. (V.A.C.S. Art. 1446c-0, Sec. 3.353(e) (part).)
365-13 Sec. 58.061. EFFECT ON CERTAIN CHARGES. This subchapter
365-14 does not affect a charge permitted under:
365-15 (1) Section 55.024;
365-16 (2) Subchapter C, Chapter 55; or
365-17 (3) Subchapter B, Chapter 56. (V.A.C.S. Art. 1446c-0,
365-18 Sec. 3.353(b) (part).)
365-19 Sec. 58.062. SWITCHED ACCESS RATES. Notwithstanding any
365-20 other provision of this title, the commission may not reduce an
365-21 electing company's rates for switched access services before the
365-22 expiration of the four-year period prescribed by Section 58.054.
365-23 (V.A.C.S. Art. 1446c-0, Sec. 3.352(d) (part).)
365-24 (Sections 58.063-58.100 reserved for expansion)
365-25 SUBCHAPTER D. DISCRETIONARY SERVICES
365-26 Sec. 58.101. SERVICE INCLUDED. Unless reclassified under
365-27 Section 58.024, the following services are discretionary services:
366-1 (1) "1-plus" intraLATA message toll services, if
366-2 intraLATA equal access is available;
366-3 (2) 0+ and 0- operator services;
366-4 (3) call waiting, call forwarding, and custom calling
366-5 features that are not classified as a competitive service under
366-6 Section 58.151;
366-7 (4) call return, caller identification, and call
366-8 control options that are not classified as a competitive service
366-9 under Section 58.151;
366-10 (5) central office based PBX-type services;
366-11 (6) billing and collection services;
366-12 (7) integrated services digital network (ISDN)
366-13 services;
366-14 (8) new services; and
366-15 (9) each service or function:
366-16 (A) for which pricing flexibility has not been
366-17 granted in a particular geographic market; and
366-18 (B) that is not classified as a basic network
366-19 service under Section 58.051 or a competitive service under Section
366-20 58.151. (V.A.C.S. Art. 1446c-0, Secs. 3.355(a), (b).)
366-21 Sec. 58.102. MAXIMUM PRICE. (a) The commission shall set
366-22 the maximum price an electing company may charge for a
366-23 discretionary service.
366-24 (b) The initial maximum price for a service is the price in
366-25 effect on September 1, 1995, without regard to a proceeding pending
366-26 under:
366-27 (1) Section 15.001;
367-1 (2) Subchapter D, Chapter 53; or
367-2 (3) Subchapter G, Chapter 2001, Government Code.
367-3 (c) The commission may not increase the initial maximum
367-4 price until after the proceedings required by Chapter 60.
367-5 (d) After the proceedings required by Chapter 60, the
367-6 commission, on its own motion or on application by the electing
367-7 company, may change the initial maximum price. However, the
367-8 commission may not increase the price more than 10 percent
367-9 annually. (V.A.C.S. Art. 1446c-0, Sec. 3.355(d) (part).)
367-10 Sec. 58.103. PRICE FOR SERVICE. (a) An electing company
367-11 may set the price for a discretionary service at any price that is:
367-12 (1) above the service's long run incremental cost; and
367-13 (2) at or below the service's maximum price set under
367-14 Section 58.102.
367-15 (b) The electing company may change the price within the
367-16 limits prescribed by Subsection (a). A price change may include
367-17 the use of pricing flexibility.
367-18 (c) The electing company shall notify the commission of each
367-19 change. (V.A.C.S. Art. 1446c-0, Sec. 3.355(d) (part).)
367-20 Sec. 58.104. USE OF CERTAIN REGULATORY TREATMENT. The
367-21 classification of a service as a discretionary service does not
367-22 preclude an electing company from using a regulatory treatment
367-23 authorized by or under Subchapters A-D, Chapter 52. (V.A.C.S.
367-24 Art. 1446c-0, Sec. 3.355(d) (part).)
367-25 (Sections 58.105-58.150 reserved for expansion)
367-26 SUBCHAPTER E. COMPETITIVE SERVICES
367-27 Sec. 58.151. SERVICES INCLUDED. The following services are
368-1 classified as competitive services:
368-2 (1) services described in the WATS tariff as the
368-3 tariff existed on January 1, 1995;
368-4 (2) 800 and foreign exchange services;
368-5 (3) private line service;
368-6 (4) special access service;
368-7 (5) services from public pay telephones;
368-8 (6) paging services and mobile services (IMTS);
368-9 (7) 911 premises equipment;
368-10 (8) speed dialing; and
368-11 (9) three-way calling. (V.A.C.S. Art. 1446c-0, Sec.
368-12 3.356(a) (part).)
368-13 Sec. 58.152. PRICES. (a) An electing company may set the
368-14 price for a competitive service at any level above the service's
368-15 long run incremental cost in accordance with the imputation rules
368-16 prescribed by or under Subchapter D, Chapter 60.
368-17 (b) Subject to the requirements of Sections 60.001 and
368-18 60.002, the company may use pricing flexibility for a competitive
368-19 service.
368-20 (c) Notwithstanding Subsection (a) or (b), the company may
368-21 not increase the price of a competitive service in a geographic
368-22 area in which that service or a functionally equivalent service is
368-23 not readily available from another provider. (V.A.C.S.
368-24 Art. 1446c-0, Secs. 3.356(a) (part), (c) (part).)
368-25 (Sections 58.153-58.200 reserved for expansion)
368-26 SUBCHAPTER F. GENERAL INFRASTRUCTURE COMMITMENT
368-27 Sec. 58.201. STATEMENT OF STATE GOAL. (a) It is the goal
369-1 of this state to facilitate and promote the deployment of an
369-2 advanced telecommunications infrastructure to spur economic
369-3 development throughout this state. This state should be among the
369-4 leaders in achieving this objective.
369-5 (b) The primary means of achieving this goal is through
369-6 encouraging private investment in this state's telecommunications
369-7 infrastructure by creating incentives for that investment and
369-8 promoting the development of competition.
369-9 (c) The best way to bring the benefits of an advanced
369-10 telecommunications network infrastructure to communities in this
369-11 state is through innovation and competition among all the state's
369-12 communications providers. Competition will provide residents of
369-13 this state with a choice of telecommunications providers and will
369-14 drive technology deployment, innovation, service quality, and
369-15 cost-based prices as competing firms try to satisfy customer needs.
369-16 (V.A.C.S. Art. 1446c-0, Sec. 3.358(a).)
369-17 Sec. 58.202. POLICY GOALS FOR IMPLEMENTATION. In
369-18 implementing this subchapter, the commission shall consider this
369-19 state's policy goals to:
369-20 (1) ensure the availability of the widest possible
369-21 range of competitive choices in the provision of telecommunications
369-22 services and facilities;
369-23 (2) foster competition and rely on market forces where
369-24 competition exists to determine the price, terms, and availability
369-25 of service;
369-26 (3) ensure the universal availability of basic local
369-27 telecommunications services at reasonable rates;
370-1 (4) encourage the continued development and deployment
370-2 of advanced and reliable capabilities and services in
370-3 telecommunications networks;
370-4 (5) ensure interconnection and interoperability, based
370-5 on uniform technical standards, among telecommunications carriers;
370-6 (6) eliminate unnecessary administrative procedures
370-7 that impose regulatory barriers to competition and ensure that
370-8 competitive entry is fostered on an economically rational basis;
370-9 (7) ensure consumer protection and protection against
370-10 anticompetitive conduct;
370-11 (8) regulate a provider of services only to the extent
370-12 the provider has market power to control the price of services to
370-13 customers;
370-14 (9) encourage cost-based pricing of telecommunications
370-15 services so that consumers pay a fair price for services they use;
370-16 and
370-17 (10) subject to Subchapter C, develop appropriate
370-18 quality of service standards for local exchange companies so as to
370-19 place this state among the leaders in deployment of an advanced
370-20 telecommunications infrastructure. (V.A.C.S. Art. 1446c-0,
370-21 Sec. 3.358(b) (part).)
370-22 Sec. 58.203. INFRASTRUCTURE GOALS OF ALL ELECTING COMPANIES.
370-23 (a) Recognizing that it will take time for competition to develop
370-24 in the local exchange market, the commission shall, in the absence
370-25 of competition, ensure that each electing company achieves the
370-26 infrastructure goals described by this section.
370-27 (b) Not later than December 31, 1996, an electing company
371-1 shall make available to each customer in the company's territory
371-2 access to end-to-end digital connectivity.
371-3 (c) Each new central office switch installed for an electing
371-4 company after September 1, 1995, must be digital or technically
371-5 equal to or superior to digital. In addition, a switch installed
371-6 after September 1, 1997, must, at a minimum, be capable of
371-7 providing integrated services digital network (ISDN) services in a
371-8 manner consistent with generally accepted national standards.
371-9 (d) Not later than January 1, 2000, 50 percent of the local
371-10 exchange access lines in each electing company's territory must be
371-11 served by a digital central office switch.
371-12 (e) Not later than January 1, 2000, an electing company's
371-13 public switched network backbone interoffice facilities must employ
371-14 broadband facilities capable of 45 or more megabits a second. The
371-15 company may employ facilities at a lower bandwidth if technology
371-16 permits the delivery of video signal at the lower bandwidth at a
371-17 quality level comparable to a television broadcast signal. The
371-18 requirements of this subsection do not apply to local loop
371-19 facilities. (V.A.C.S. Art. 1446c-0, Sec. 3.358(c).)
371-20 Sec. 58.204. ADDITIONAL INFRASTRUCTURE COMMITMENT OF CERTAIN
371-21 COMPANIES. (a) Not later than December 31, 1998, an electing
371-22 company serving more than one million but fewer than five million
371-23 access lines shall provide digital switching central offices in all
371-24 exchanges.
371-25 (b) Not later than January 1, 2000, an electing company
371-26 serving more than five million access lines shall:
371-27 (1) install Common Channel Signaling 7 capability in
372-1 each central office; and
372-2 (2) connect all of the company's serving central
372-3 offices to their respective LATA tandem central offices with
372-4 optical fiber or equivalent facilities. (V.A.C.S. Art. 1446c-0,
372-5 Sec. 3.358(d).)
372-6 Sec. 58.205. EXTENSION OR WAIVER OF INFRASTRUCTURE
372-7 REQUIREMENTS. (a) For an electing company that serves more than
372-8 one million but fewer than two million access lines, the commission
372-9 may temporarily extend a deadline prescribed by Section 58.203 if
372-10 the company demonstrates that the extension is in the public
372-11 interest.
372-12 (b) For an electing company that serves fewer than one
372-13 million access lines, the commission may waive a requirement
372-14 prescribed by Section 58.203 if the company demonstrates that the
372-15 investment is not viable economically.
372-16 (c) Before granting a waiver under Subsection (b), the
372-17 commission must consider the public benefits that would result from
372-18 compliance with the requirement. (V.A.C.S. Art. 1446c-0, Sec.
372-19 3.358(e).)
372-20 Sec. 58.206. IMPLEMENTATION COSTS; INCREASE IN RATES AND
372-21 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
372-22 of implementing Section 58.203 or 58.204 in determining whether an
372-23 electing company is entitled to:
372-24 (1) a rate increase under this chapter; or
372-25 (2) increased universal service funds under Subchapter
372-26 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.358(f).)
372-27 (Sections 58.207-58.250 reserved for expansion)
373-1 SUBCHAPTER G. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
373-2 Sec. 58.251. INTENT AND GOAL OF SUBCHAPTER. (a) It is the
373-3 intent of this subchapter to establish a telecommunications
373-4 infrastructure that interconnects the public entities described in
373-5 this subchapter. The interconnection of these entities requires
373-6 ubiquitous, broadband, digital services for voice, video, and data
373-7 in the local serving area. The ubiquitous nature of these
373-8 connections must allow individual networks of these entities to
373-9 interconnect and interoperate across the broadband digital service
373-10 infrastructure. The delivery of these advanced telecommunications
373-11 services requires collaborations and partnerships of public,
373-12 private, and commercial telecommunications service network
373-13 providers.
373-14 (b) The goal of this subchapter is to interconnect and
373-15 aggregate the connections to every entity described in this
373-16 subchapter, in the local serving area. It is further intended that
373-17 the infrastructure implemented under this subchapter connect each
373-18 entity that requests a service offered under this subchapter.
373-19 (V.A.C.S. Art. 1446c-0, Sec. 3.359(a).)
373-20 Sec. 58.252. DEFINITIONS. In this subchapter:
373-21 (1) "Educational institution" has the meaning assigned
373-22 by Section 57.021.
373-23 (2) "Library" has the meaning assigned by Section
373-24 57.042.
373-25 (3) "Private network services" means:
373-26 (A) broadband digital service that is capable of
373-27 providing transmission speeds of 45 megabits a second or greater
374-1 for customer applications; and
374-2 (B) other customized or packaged network
374-3 services.
374-4 (4) "Telemedicine center" means a facility that is
374-5 equipped to transmit, by video, data, or voice service, medical
374-6 information for the diagnosis or treatment of illness or disease
374-7 and that is:
374-8 (A) owned or operated by a public or
374-9 not-for-profit hospital, including an academic health center; or
374-10 (B) owned by one or more state-licensed health
374-11 care practitioners and operated on a nonprofit basis. (V.A.C.S.
374-12 Art. 1446c-0, Secs. 3.359(b)(1)(A) (part), (e).)
374-13 Sec. 58.253. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES.
374-14 (a) On customer request, an electing company shall provide private
374-15 network services to:
374-16 (1) an educational institution;
374-17 (2) a library;
374-18 (3) a nonprofit telemedicine center;
374-19 (4) a public or not-for-profit hospital;
374-20 (5) a project funded by the telecommunications
374-21 infrastructure fund under Subchapter C, Chapter 57; or
374-22 (6) a legally constituted consortium or group of
374-23 entities listed in this subsection.
374-24 (b) Except as provided by Section 58.266, the electing
374-25 company shall provide the private network services for the private
374-26 and sole use of the receiving entity. (V.A.C.S. Art. 1446c-0, Sec.
374-27 3.359(b)(1)(A) (part).)
375-1 Sec. 58.254. PRIORITIES. An electing company shall give
375-2 priority to serving:
375-3 (1) rural areas;
375-4 (2) areas designated as critically underserved either
375-5 medically or educationally; and
375-6 (3) educational institutions with high percentages of
375-7 economically disadvantaged students. (V.A.C.S. Art. 1446c-0, Sec.
375-8 3.359(b)(6).)
375-9 Sec. 58.255. CONTRACTS FOR PRIVATE NETWORK SERVICES. (a)
375-10 An electing company shall provide a private network service under a
375-11 customer specific contract.
375-12 (b) An electing company shall offer private network service
375-13 contracts under this subchapter at 105 percent of the long run
375-14 incremental cost of providing the private network service,
375-15 including installation.
375-16 (c) Each contract shall be filed with the commission.
375-17 Commission approval of a contract is not required.
375-18 (d) Subtitle D, Title 10, Government Code, does not apply to
375-19 a contract entered into under this subchapter. (V.A.C.S.
375-20 Art. 1446c-0, Secs. 3.359(b)(1)(B), (b)(1)(C), (f).)
375-21 Sec. 58.256. PREFERRED RATE TREATMENT WARRANTED. An entity
375-22 described by Section 58.253(a) warrants preferred rate treatment.
375-23 However, a rate charged for a service must cover the service's long
375-24 run incremental cost. (V.A.C.S. Art. 1446c-0, Sec.
375-25 3.359(b)(1)(H).)
375-26 Sec. 58.257. ELECTION OF RATE TREATMENT. An educational
375-27 institution or a library may elect the rate treatment provided by
376-1 this subchapter or the discount provided by Subchapter B, Chapter
376-2 57. (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(3).)
376-3 Sec. 58.258. PRIVATE NETWORK SERVICES RATES AND TARIFFS.
376-4 (a) Notwithstanding the pricing flexibility authorized by this
376-5 subtitle, an electing company's rates for private network services
376-6 may not be increased on or before the sixth anniversary of the
376-7 company's date of election. However, an electing company may
376-8 increase a rate in accordance with the provisions of a customer
376-9 specific contract.
376-10 (b) An electing company may not charge an entity described
376-11 by Section 58.253(a) a special construction or installation
376-12 charge. (V.A.C.S. Art. 1446c-0, Secs. 3.359(b)(2), (4).)
376-13 Sec. 58.259. TARIFF RATE FOR CERTAIN INTRALATA SERVICE. (a)
376-14 An electing company shall file a flat monthly tariff rate for
376-15 point-to-point intraLATA 1.544 megabits a second service for the
376-16 entities described by Section 58.253(a).
376-17 (b) The tariff rate may not be:
376-18 (1) distance sensitive; or
376-19 (2) higher than 105 percent of the service's statewide
376-20 average long run incremental cost, including installation.
376-21 (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(1)(D).)
376-22 Sec. 58.260. POINT-TO-POINT 45 MEGABITS A SECOND INTRALATA
376-23 SERVICE. (a) On request of an entity described by Section
376-24 58.253(a), an electing company shall provide to the entity
376-25 point-to-point 45 megabits a second intraLATA services.
376-26 (b) The service must be provided under a customer specific
376-27 contract except that any interoffice portion of the service must be
377-1 recovered on a statewide average basis that is not distance
377-2 sensitive.
377-3 (c) The rate for the service may not be higher than 105
377-4 percent of the service's long run incremental cost, including
377-5 installation. (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(1)(E).)
377-6 Sec. 58.261. BROADBAND DIGITAL SPECIAL ACCESS SERVICE. (a)
377-7 An electing company shall provide to an entity described by Section
377-8 58.253(a) broadband digital special access service to interexchange
377-9 carriers.
377-10 (b) The rate for the service may not be higher than 105
377-11 percent of the service's long run incremental cost, including
377-12 installation. (V.A.C.S. Art. 1446c-0, Sec. 3.359(b)(1)(F).)
377-13 Sec. 58.262. EXPANDED INTERCONNECTION. (a) On request of
377-14 an entity described by Section 58.253(a), an electing company shall
377-15 provide to the entity expanded interconnection (virtual
377-16 colocation).
377-17 (b) The company shall provide expanded interconnection:
377-18 (1) in accordance with commission rules adopted under
377-19 Subchapter H, Chapter 60; and
377-20 (2) at 105 percent of long run incremental cost,
377-21 including installation.
377-22 (c) An entity described by Section 58.253(a) is not required
377-23 to qualify for expanded interconnection if expanded interconnection
377-24 is ordered by the commission. (V.A.C.S. Art. 1446c-0,
377-25 Sec. 3.359(b)(1)(G).)
377-26 Sec. 58.263. INTERNET ACCESS. (a) This section applies
377-27 only to an educational institution or library in an exchange of an
378-1 electing company serving more than five million access lines in
378-2 which toll-free access to the Internet is not available.
378-3 (b) On request of the educational institution or library,
378-4 the electing company shall make available a toll-free connection or
378-5 toll-free dialing arrangement that the institution or library may
378-6 use to obtain access to the Internet in an exchange in which
378-7 toll-free access to the Internet is available.
378-8 (c) The electing company shall provide the connection or
378-9 dialing arrangement at no charge to the educational institution or
378-10 library until Internet access becomes available in the exchange of
378-11 the requesting educational institution or library.
378-12 (d) The electing company is not required to arrange for
378-13 Internet access or to pay Internet charges for the requesting
378-14 educational institution or library. (V.A.C.S. Art. 1446c-0, Sec.
378-15 3.359(b)(5).)
378-16 Sec. 58.264. COMPLAINTS LIMITED. (a) Notwithstanding any
378-17 other provision of this title, an electing company is subject to a
378-18 complaint under this subchapter only by an entity described by
378-19 Section 58.253(a).
378-20 (b) An entity may only complain that the company provided a
378-21 private network service under this subchapter preferentially to a
378-22 similarly situated customer. (V.A.C.S. Art. 1446c-0, Sec.
378-23 3.359(b)(1)(I).)
378-24 Sec. 58.265. INTERCONNECTION OF NETWORK SERVICES. The
378-25 private network services provided under this subchapter may be
378-26 interconnected with other similar networks for distance learning,
378-27 telemedicine, and information-sharing purposes. (V.A.C.S.
379-1 Art. 1446c-0, Sec. 3.359(c).)
379-2 Sec. 58.266. SHARING OR RESALE OF NETWORK SERVICES. (a) A
379-3 private network service may be used by and shared among the
379-4 entities described by Section 58.253(a) but may not be otherwise
379-5 shared or resold to other customers.
379-6 (b) A service provided under this subchapter may not be
379-7 required to be resold to another customer at a rate provided by
379-8 this subchapter.
379-9 (c) This section does not prohibit an otherwise permitted
379-10 resale of another service that an electing company may offer
379-11 through the use of the same facilities used to provide a private
379-12 network service offered under this subchapter. (V.A.C.S.
379-13 Art. 1446c-0, Sec. 3.359(d).)
379-14 Sec. 58.267. IMPLEMENTATION COSTS; INCREASE IN RATES AND
379-15 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
379-16 of implementing this subchapter in determining whether an electing
379-17 company is entitled to:
379-18 (1) a rate increase under this chapter; or
379-19 (2) increased universal service funds under Subchapter
379-20 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.359(g).)
379-21 CHAPTER 59. INFRASTRUCTURE PLAN
379-22 SUBCHAPTER A. GENERAL PROVISIONS
379-23 Sec. 59.001. POLICY
379-24 Sec. 59.002. DEFINITIONS
379-25 (Sections 59.003-59.020 reserved for expansion)
379-26 SUBCHAPTER B. INFRASTRUCTURE INCENTIVES
379-27 Sec. 59.021. ELECTION
380-1 Sec. 59.022. WITHDRAWAL OF ELECTION
380-2 Sec. 59.023. ELECTION UNDER CHAPTER 58
380-3 Sec. 59.024. RATE CHANGES
380-4 Sec. 59.025. SWITCHED ACCESS RATES
380-5 Sec. 59.026. COMPLAINT OR HEARING
380-6 Sec. 59.027. CONSUMER COMPLAINTS REGARDING TARIFFS
380-7 Sec. 59.028. CONSUMER COMPLAINTS REGARDING SERVICES; ENFORCEMENT
380-8 OF STANDARDS
380-9 Sec. 59.029. INVESTMENT LIMITATION ON SERVICE STANDARDS
380-10 (Sections 59.030-59.050 reserved for expansion)
380-11 SUBCHAPTER C. INFRASTRUCTURE COMMITMENT AND GOALS
380-12 Sec. 59.051. INFRASTRUCTURE COMMITMENT
380-13 Sec. 59.052. INFRASTRUCTURE GOALS
380-14 Sec. 59.053. WAIVER OF INFRASTRUCTURE REQUIREMENTS
380-15 Sec. 59.054. PROGRESS REPORT
380-16 Sec. 59.055. IMPLEMENTATION COSTS; INCREASE IN RATES AND
380-17 UNIVERSAL SERVICE FUNDS
380-18 (Sections 59.056-59.070 reserved for expansion)
380-19 SUBCHAPTER D. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
380-20 Sec. 59.071. DEFINITIONS
380-21 Sec. 59.072. PRIVATE NETWORK SERVICES FOR CERTAIN
380-22 ENTITIES
380-23 Sec. 59.073. INVESTMENT PRIORITIES
380-24 Sec. 59.074. CONTRACTS FOR PRIVATE NETWORK SERVICES
380-25 Sec. 59.075. PREFERRED RATE TREATMENT WARRANTED
380-26 Sec. 59.076. ELECTION OF RATE TREATMENT
380-27 Sec. 59.077. PRIVATE NETWORK SERVICES RATES AND TARIFFS
381-1 Sec. 59.078. PRIVATE LINE OR SPECIAL ACCESS RATES
381-2 Sec. 59.079. COMPLAINTS LIMITED
381-3 Sec. 59.080. INTERCONNECTION OF NETWORK SERVICES
381-4 Sec. 59.081. SHARING OR RESALE OF NETWORK SERVICES
381-5 Sec. 59.082. IMPLEMENTATION COSTS; INCREASE IN RATES AND
381-6 UNIVERSAL SERVICE FUNDS
381-7 CHAPTER 59. INFRASTRUCTURE PLAN
381-8 SUBCHAPTER A. GENERAL PROVISIONS
381-9 Sec. 59.001. POLICY. It is the policy of this state that an
381-10 incumbent local exchange company that does not elect to be
381-11 regulated under Chapter 58 should have incentives to deploy
381-12 infrastructure that will benefit the residents of this state while
381-13 maintaining reasonable local rates and universal service.
381-14 (V.A.C.S. Art. 1446c-0, Sec. 3.401.)
381-15 Sec. 59.002. DEFINITIONS. In this chapter:
381-16 (1) "Electing company" means an incumbent local
381-17 exchange company that elects for an infrastructure commitment and
381-18 corresponding regulation under this chapter.
381-19 (2) "Election date" means the date on which the
381-20 commission receives notice of election under Subchapter B.
381-21 (V.A.C.S. Art. 1446c-0, Sec. 3.402(h); New.)
381-22 (Sections 59.003-59.020 reserved for expansion)
381-23 SUBCHAPTER B. INFRASTRUCTURE INCENTIVES
381-24 Sec. 59.021. ELECTION. (a) An incumbent local exchange
381-25 company may elect to make an infrastructure commitment and to be
381-26 subject to corresponding regulation under this chapter if the
381-27 company:
382-1 (1) serves less than five percent of the access lines
382-2 in this state; and
382-3 (2) has not elected incentive regulation under Chapter
382-4 58.
382-5 (b) A company makes the election by notifying the commission
382-6 in writing of the company's election. (V.A.C.S. Art. 1446c-0, Sec.
382-7 3.402(a).)
382-8 Sec. 59.022. WITHDRAWAL OF ELECTION. (a) The commission
382-9 may allow an electing company to withdraw the company's election
382-10 under this chapter:
382-11 (1) on application by the company; and
382-12 (2) only for good cause.
382-13 (b) In this section, "good cause" includes only matters
382-14 beyond the control of the company. (V.A.C.S. Art. 1446c-0, Sec.
382-15 3.402(e).)
382-16 Sec. 59.023. ELECTION UNDER CHAPTER 58. (a) This chapter
382-17 does not prohibit a company electing under this chapter from
382-18 electing incentive regulation under Chapter 58.
382-19 (b) If a company makes an election under Chapter 58, the
382-20 infrastructure commitment made under this chapter offsets the
382-21 infrastructure commitment required in connection with the Chapter
382-22 58 election. (V.A.C.S. Art. 1446c-0, Sec. 3.402(f).)
382-23 Sec. 59.024. RATE CHANGES. (a) Except for the charges
382-24 permitted under Subchapter C, Chapter 55, Subchapter B, Chapter 56,
382-25 and Section 55.024, an electing company may not, on or before the
382-26 sixth anniversary of its election date, increase a rate previously
382-27 established for that company under this title unless the commission
383-1 approves the proposed change as authorized under Subsection (c) or
383-2 (d).
383-3 (b) For purposes of Subsection (a), the company's previously
383-4 established rates are the rates charged by the company on its
383-5 election date without regard to a proceeding pending under:
383-6 (1) Section 15.001;
383-7 (2) Subchapter D, Chapter 53; or
383-8 (3) Subchapter G, Chapter 2001, Government Code.
383-9 (c) The commission, on motion of the electing company or on
383-10 its own motion, shall adjust prices for services to reflect changes
383-11 in Federal Communications Commission separations that affect
383-12 intrastate net income by at least 10 percent.
383-13 (d) The commission, on request of the electing company,
383-14 shall allow a rate group reclassification that results from access
383-15 line growth.
383-16 (e) Section 58.059 applies to a rate change under this
383-17 section. (V.A.C.S. Art. 1446c-0, Secs. 3.402(b), (c), (g) (part).)
383-18 Sec. 59.025. SWITCHED ACCESS RATES. Notwithstanding any
383-19 other provision of this title, the commission may not reduce an
383-20 electing company's rates for switched access services before the
383-21 expiration of the six-year period prescribed by Section 59.024.
383-22 (V.A.C.S. Art. 1446c-0, Sec. 3.402(g) (part).)
383-23 Sec. 59.026. COMPLAINT OR HEARING. (a) On or before the
383-24 sixth anniversary of the company's election date, an electing
383-25 company is not, under any circumstances, subject to:
383-26 (1) a complaint or hearing regarding the
383-27 reasonableness of the company's:
384-1 (A) rates;
384-2 (B) overall revenues;
384-3 (C) return on invested capital; or
384-4 (D) net income; or
384-5 (2) a complaint that a rate is excessive.
384-6 (b) Subsection (a) applies only to a company that is in
384-7 compliance with the company's infrastructure commitment under this
384-8 chapter.
384-9 (c) This section does not prohibit a complaint, hearing, or
384-10 determination on an electing company's implementation of a
384-11 competitive safeguard required by Chapter 60. (V.A.C.S.
384-12 Art. 1446c-0, Sec. 3.402(d) (part).)
384-13 Sec. 59.027. CONSUMER COMPLAINTS REGARDING TARIFFS. (a)
384-14 This chapter does not restrict:
384-15 (1) a consumer's right to complain to the commission
384-16 about the application of an ambiguous tariff; or
384-17 (2) the commission's right to determine:
384-18 (A) the proper application of that tariff; or
384-19 (B) the proper tariff rate if that tariff does
384-20 not apply.
384-21 (b) This section does not permit the commission to:
384-22 (1) lower a tariff rate except as specifically
384-23 provided by this title;
384-24 (2) change the commission's interpretation of a
384-25 tariff; or
384-26 (3) extend the application of a tariff to a new class
384-27 of customers. (V.A.C.S. Art. 1446c-0, Sec. 3.402(d) (part).)
385-1 Sec. 59.028. CONSUMER COMPLAINTS REGARDING SERVICES;
385-2 ENFORCEMENT OF STANDARDS. This chapter does not restrict:
385-3 (1) a consumer's right to complain to the commission
385-4 about quality of service; or
385-5 (2) the commission's right to enforce a quality of
385-6 service standard. (V.A.C.S. Art. 1446c-0, Sec. 3.402(d) (part).)
385-7 Sec. 59.029. INVESTMENT LIMITATION ON SERVICE STANDARDS.
385-8 (a) The commission may not raise a service standard applicable to
385-9 the provision of local exchange telephone service by an electing
385-10 company if the increased investment required to comply with the
385-11 raised standard in any year exceeds 10 percent of the company's
385-12 average annual intrastate additions in capital investment for the
385-13 most recent five-year period.
385-14 (b) In computing the average under Subsection (a), the
385-15 electing company shall exclude:
385-16 (1) extraordinary investments made during the
385-17 five-year period; and
385-18 (2) investments required by Section 59.052. (V.A.C.S.
385-19 Art. 1446c-0, Secs. 3.402(d) (part), 3.403(b)(6).)
385-20 (Sections 59.030-59.050 reserved for expansion)
385-21 SUBCHAPTER C. INFRASTRUCTURE COMMITMENT AND GOALS
385-22 Sec. 59.051. INFRASTRUCTURE COMMITMENT. (a) An electing
385-23 company shall commit to make in this state, during the six years
385-24 after the election date, the telecommunications infrastructure
385-25 investment prescribed by this chapter.
385-26 (b) The company shall make the commitment to the governor
385-27 and the commission in writing. (V.A.C.S. Art. 1446c-0, Sec.
386-1 3.403(a).)
386-2 Sec. 59.052. INFRASTRUCTURE GOALS. (a) The commission
386-3 shall ensure that each electing company achieves the infrastructure
386-4 goals described by this section.
386-5 (b) Each new central office switch installed for an electing
386-6 company in this state after September 1, 1995, must be digital.
386-7 (c) An electing company shall make available to each
386-8 customer in the company's territory access to end-to-end digital
386-9 connectivity. In this subsection, "make available" has the meaning
386-10 assigned by 16 T.A.C. Section 23.69.
386-11 (d) In each electing company's territory, 50 percent of the
386-12 local exchange access lines must be served by a digital central
386-13 office switch.
386-14 (e) An electing company's public switched network backbone
386-15 interoffice facilities must employ broadband facilities that serve
386-16 at least 50 percent of the local exchange access lines and are
386-17 capable of 45 or more megabits a second. The company may employ
386-18 facilities at a lower bandwidth if technology permits the delivery
386-19 of video signal at the lower bandwidth at a quality level
386-20 comparable to a television broadcast signal. The requirements of
386-21 this subsection do not apply to local loop facilities.
386-22 (f) An electing company shall install Common Channel
386-23 Signaling 7 capability in each access tandem office.
386-24 (g) The infrastructure goals specified by Subsections
386-25 (c)-(f) must be achieved not later than January 1, 2000. (V.A.C.S.
386-26 Art. 1446c-0, Secs. 3.403(b)(1), (2), (3), (4), (5).)
386-27 Sec. 59.053. WAIVER OF INFRASTRUCTURE REQUIREMENTS. (a)
387-1 For an electing company that serves fewer than one million lines,
387-2 the commission may waive a requirement prescribed by Section 59.052
387-3 if the company demonstrates that the investment is not viable
387-4 economically.
387-5 (b) Before granting a waiver under Subsection (a), the
387-6 commission must consider the public benefits that would result from
387-7 compliance with the requirement. (V.A.C.S. Art. 1446c-0, Sec.
387-8 3.403(d).)
387-9 Sec. 59.054. PROGRESS REPORT. (a) On each anniversary of
387-10 the company's election date, an electing company shall file with
387-11 the commission a report on the company's progress on its
387-12 infrastructure commitment.
387-13 (b) The report must include a statement of:
387-14 (1) the institutions requesting service under
387-15 Subchapter D;
387-16 (2) the institutions served under Subchapter D;
387-17 (3) the investments and expenses for the previous
387-18 period and the total investments and expenses for all periods; and
387-19 (4) other information the commission considers
387-20 necessary. (V.A.C.S. Art. 1446c-0, Sec. 3.403(g).)
387-21 Sec. 59.055. IMPLEMENTATION COSTS; INCREASE IN RATES AND
387-22 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
387-23 of implementing Section 59.052 in determining whether an electing
387-24 company is entitled to:
387-25 (1) a rate increase under this chapter; or
387-26 (2) increased universal service funds under Subchapter
387-27 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.403(e) (part).)
388-1 (Sections 59.056-59.070 reserved for expansion)
388-2 SUBCHAPTER D. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
388-3 Sec. 59.071. DEFINITIONS. In this subchapter:
388-4 (1) "Educational institution" has the meaning assigned
388-5 by Section 57.021.
388-6 (2) "Library" has the meaning assigned by Section
388-7 57.042.
388-8 (3) "Private network services" means
388-9 telecommunications services provided to an entity described by
388-10 Section 59.072(a), including broadband services, customized
388-11 services, and packaged network services.
388-12 (4) "Telemedicine center" means a facility that is
388-13 equipped to transmit, by video or data service, medical information
388-14 for the diagnosis or treatment of illness or disease and that is:
388-15 (A) owned or operated by a public or
388-16 not-for-profit hospital; or
388-17 (B) owned by a state-licensed health care
388-18 practitioner and operated on a nonprofit basis. (V.A.C.S.
388-19 Art. 1446c-0, Secs. 3.403(f)(1) (part), (2); New.)
388-20 Sec. 59.072. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES.
388-21 (a) On customer request, an electing company shall provide private
388-22 network services to:
388-23 (1) an educational institution;
388-24 (2) a library;
388-25 (3) a telemedicine center; or
388-26 (4) a legally constituted consortium or group of
388-27 entities listed in this subsection.
389-1 (b) Except as provided by Section 59.081, the electing
389-2 company shall provide the private network services for the private
389-3 and sole use of the receiving entity. However, the company may
389-4 provide the services with a facility that is used to provide
389-5 another service to another customer.
389-6 (c) The customers listed in Subsection (a) are a special
389-7 class of customers for purposes of the private network for distance
389-8 learning, telemedicine, and information-sharing purposes.
389-9 (V.A.C.S. Art. 1446c-0, Secs. 3.403(c)(1), (12), (f)(1) (part).)
389-10 Sec. 59.073. INVESTMENT PRIORITIES. An electing company
389-11 shall give investment priority to serving:
389-12 (1) rural areas;
389-13 (2) areas designated as critically underserved
389-14 medically or educationally; and
389-15 (3) educational institutions with high percentages of
389-16 economically disadvantaged students. (V.A.C.S. Art. 1446c-0, Sec.
389-17 3.403(c)(2).)
389-18 Sec. 59.074. CONTRACTS FOR PRIVATE NETWORK SERVICES. (a)
389-19 An electing company shall provide a private network service under a
389-20 customer-specific contract.
389-21 (b) An electing company shall offer private network service
389-22 contracts under this subchapter at 110 percent of the long run
389-23 incremental cost of providing the private network service,
389-24 including installation costs.
389-25 (c) Each contract shall be filed with the commission.
389-26 Commission approval of a contract is not required. (V.A.C.S.
389-27 Art. 1446c-0, Secs. 3.403(c)(3), (4), (5).)
390-1 Sec. 59.075. PREFERRED RATE TREATMENT WARRANTED. The
390-2 classes of customers described by Section 59.072(a) warrant
390-3 preferred rate treatment. However, a rate charged for a service
390-4 must cover the service's long run incremental cost. (V.A.C.S.
390-5 Art. 1446c-0, Sec. 3.403(c)(6).)
390-6 Sec. 59.076. ELECTION OF RATE TREATMENT. An educational
390-7 institution or a library may elect the rate treatment provided by
390-8 this subchapter or the discount provided by Subchapter B, Chapter
390-9 57. (V.A.C.S. Art. 1446c-0, Sec. 3.403(c)(9).)
390-10 Sec. 59.077. PRIVATE NETWORK SERVICES RATES AND TARIFFS.
390-11 (a) Notwithstanding the pricing flexibility authorized by this
390-12 subtitle, an electing company's rates for private network services
390-13 may not be increased on or before the sixth anniversary of the
390-14 company's election date.
390-15 (b) An electing company may not assess an entity described
390-16 by Section 59.072(a) a tariffed special construction or
390-17 installation charge unless the company and the entity agree on the
390-18 assessment. (V.A.C.S. Art. 1446c-0, Secs. 3.403(c)(8), (10).)
390-19 Sec. 59.078. PRIVATE LINE OR SPECIAL ACCESS RATES. (a) On
390-20 request by an educational institution or a library, an electing
390-21 company shall provide 1.544 megabits a second private line or
390-22 special access service at 110 percent of the service's long run
390-23 incremental cost, including installation costs.
390-24 (b) The rate provided by Subsection (a) is in lieu of the
390-25 discount provided by Subchapter B, Chapter 57. (V.A.C.S.
390-26 Art. 1446c-0, Sec. 3.403(c)(11).)
390-27 Sec. 59.079. COMPLAINTS LIMITED. Notwithstanding any other
391-1 provision of this title, an electing company is subject to a
391-2 complaint under Subchapter C or this subchapter only by an entity
391-3 described by Section 59.072(a). (V.A.C.S. Art. 1446c-0, Sec.
391-4 3.403(c)(7).)
391-5 Sec. 59.080. INTERCONNECTION OF NETWORK SERVICES. The
391-6 private network services provided under this subchapter may be
391-7 interconnected with other similar networks for distance learning,
391-8 telemedicine, and information-sharing purposes. (V.A.C.S.
391-9 Art. 1446c-0, Sec. 3.403(c)(13).)
391-10 Sec. 59.081. SHARING OR RESALE OF NETWORK SERVICES. (a) A
391-11 private network service may be used and shared among the entities
391-12 described by Section 59.072(a) but may not be otherwise shared or
391-13 resold to other customers.
391-14 (b) A service provided under this subchapter may not be
391-15 required to be resold to other customers at a rate provided by this
391-16 subchapter.
391-17 (c) This section does not prohibit an otherwise permitted
391-18 resale of another service that an electing company may offer
391-19 through the use of the same facilities used to provide a private
391-20 network service offered under this subchapter. (V.A.C.S.
391-21 Art. 1446c-0, Sec. 3.403(c)(14).)
391-22 Sec. 59.082. IMPLEMENTATION COSTS; INCREASE IN RATES AND
391-23 UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
391-24 of implementing this subchapter in determining whether an electing
391-25 company is entitled to:
391-26 (1) a rate increase under this chapter; or
391-27 (2) increased universal service funds under Subchapter
392-1 B, Chapter 56. (V.A.C.S. Art. 1446c-0, Sec. 3.403(e) (part).)
392-2 CHAPTER 60. COMPETITIVE SAFEGUARDS
392-3 SUBCHAPTER A. GENERAL PROVISIONS
392-4 Sec. 60.001. FAIR COMPETITION
392-5 Sec. 60.002. EXCLUSIVE JURISDICTION; ENFORCEMENT
392-6 Sec. 60.003. COMMISSION AUTHORITY
392-7 Sec. 60.004. APPLICABILITY TO CERTAIN SMALLER INCUMBENT LOCAL
392-8 EXCHANGE COMPANIES; RULES
392-9 Sec. 60.0041. APPLICABILITY TO CERTAIN SMALLER INCUMBENT LOCAL
392-10 EXCHANGE COMPANIES
392-11 Sec. 60.005. APPLICABILITY TO CERTAIN LARGER INCUMBENT LOCAL
392-12 EXCHANGE COMPANIES; RULES
392-13 Sec. 60.006. BULLETIN BOARD SYSTEMS UNAFFECTED
392-14 (Sections 60.007-60.020 reserved for expansion)
392-15 SUBCHAPTER B. UNBUNDLING
392-16 Sec. 60.021. MINIMUM UNBUNDLING REQUIREMENT
392-17 Sec. 60.022. COMMISSION UNBUNDLING ORDERS
392-18 Sec. 60.023. ASSIGNMENT OF UNBUNDLED COMPONENT TO CATEGORY
392-19 OF SERVICE
392-20 (Sections 60.024-60.040 reserved for expansion)
392-21 SUBCHAPTER C. RESALE
392-22 Sec. 60.041. LOOP RESALE TARIFF
392-23 Sec. 60.042. PROHIBITED RESALE OR SHARING
392-24 Sec. 60.043. RESALE OBLIGATION
392-25 Sec. 60.044. ELIMINATION OF RESALE PROHIBITIONS
392-26 Sec. 60.045. RESALE OR SHARING ARRANGEMENTS UNAFFECTED
392-27 (Sections 60.046-60.060 reserved for expansion)
393-1 SUBCHAPTER D. IMPUTATION
393-2 Sec. 60.061. RULES
393-3 Sec. 60.062. EXCEPTION FOR CAPPED PRICE
393-4 Sec. 60.063. IMPUTATION FOR SWITCHED ACCESS
393-5 Sec. 60.064. RECOVERY OF COST OF PROVIDING SERVICE
393-6 Sec. 60.065. WAIVERS
393-7 (Sections 60.066-60.080 reserved for expansion)
393-8 SUBCHAPTER E. TELECOMMUNICATIONS NUMBER PORTABILITY
393-9 Sec. 60.081. DEFINITION
393-10 Sec. 60.082. PORTABILITY GUIDELINES
393-11 Sec. 60.083. INTERIM RETENTION OF CONSUMER NUMBERS
393-12 Sec. 60.084. RATES FOR INTERIM PORTABILITY MEASURES
393-13 (Sections 60.085-60.100 reserved for expansion)
393-14 SUBCHAPTER F. PRICING
393-15 Sec. 60.101. PRICING RULE
393-16 Sec. 60.102. ADOPTION OF COST STUDIES BY CERTAIN COMPANIES
393-17 (Sections 60.103-60.120 reserved for expansion)
393-18 SUBCHAPTER G. INTERCONNECTION
393-19 Sec. 60.121. DEFINITION
393-20 Sec. 60.122. EXCLUSIVE JURISDICTION
393-21 Sec. 60.123. INAPPLICABILITY OF SUBCHAPTER
393-22 Sec. 60.124. INTEROPERABLE NETWORKS REQUIRED
393-23 Sec. 60.125. DETERMINATION OF INTERCONNECTION RATES
393-24 Sec. 60.126. INTERCONNECTIVITY NEGOTIATIONS; DISPUTE
393-25 RESOLUTION
393-26 Sec. 60.127. ADOPTION OF APPROVED INTERCONNECTION RATES
393-27 Sec. 60.128. USE OF RATES RESTRICTED
394-1 (Sections 60.129-60.140 reserved for expansion)
394-2 SUBCHAPTER H. EXPANDED INTERCONNECTION
394-3 Sec. 60.141. EXPANDED INTERCONNECTION RULES
394-4 (Sections 60.142-60.160 reserved for expansion)
394-5 SUBCHAPTER I. LOCAL EXCHANGE COMPANY REQUIREMENTS
394-6 Sec. 60.161. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS
394-7 Sec. 60.162. EXPANDED INTERCONNECTION
394-8 Sec. 60.163. INFRASTRUCTURE SHARING
394-9 CHAPTER 60. COMPETITIVE SAFEGUARDS
394-10 SUBCHAPTER A. GENERAL PROVISIONS
394-11 Sec. 60.001. FAIR COMPETITION. To the extent necessary to
394-12 ensure that competition in telecommunications is fair to each
394-13 participant and to accelerate the improvement of telecommunications
394-14 in this state, the commission shall ensure that the rates and rules
394-15 of an incumbent local exchange company:
394-16 (1) are not unreasonably preferential, prejudicial, or
394-17 discriminatory; and
394-18 (2) are applied equitably and consistently. (V.A.C.S.
394-19 Art. 1446c-0, Sec. 3.451(a).)
394-20 Sec. 60.002. EXCLUSIVE JURISDICTION; ENFORCEMENT. (a) The
394-21 commission has exclusive jurisdiction to implement competitive
394-22 safeguards.
394-23 (b) Section 58.025 does not prevent the commission from
394-24 enforcing this chapter. (V.A.C.S. Art. 1446c-0, Secs. 3.451(b),
394-25 (c).)
394-26 Sec. 60.003. COMMISSION AUTHORITY. (a) The commission may:
394-27 (1) establish procedures with respect to a policy
395-1 stated in this subchapter or Subchapters B-H; and
395-2 (2) resolve a dispute that arises under a policy
395-3 described by Subdivision (1).
395-4 (b) The commission shall adopt procedures for a proceeding
395-5 under Subchapters B and C. A procedure may:
395-6 (1) limit discovery; and
395-7 (2) for purposes of cross-examination align any party,
395-8 other than the office, with another party that has a similar
395-9 position.
395-10 (c) In adopting a procedure under this section and in
395-11 resolving a dispute, the commission shall consider the action's
395-12 effect on:
395-13 (1) consumers;
395-14 (2) competitors; and
395-15 (3) the incumbent local exchange company.
395-16 (d) The commission, by order or rule, may not implement a
395-17 requirement that is contrary to a federal law or rule. (V.A.C.S.
395-18 Art. 1446c-0, Sec. 3.460.)
395-19 Sec. 60.004. APPLICABILITY TO CERTAIN SMALLER INCUMBENT
395-20 LOCAL EXCHANGE COMPANIES; RULES. (a) Subchapters B, C, and H may
395-21 be applied to an incumbent local exchange company that serves fewer
395-22 than 31,000 access lines only on a bona fide request from a
395-23 certificated telecommunications utility.
395-24 (b) In applying the rules adopted under Subchapters B, C,
395-25 and H to a company described by Subsection (a), the commission may
395-26 modify the rules in the public interest.
395-27 (c) This section takes effect September 1, 1998. (V.A.C.S.
396-1 Art. 1446c-0, Sec. 3.461 (part).)
396-2 Sec. 60.0041. APPLICABILITY TO CERTAIN SMALLER INCUMBENT
396-3 LOCAL EXCHANGE COMPANIES. (a) Subchapters B, C, E, G, and H do
396-4 not apply to an incumbent local exchange company that serves fewer
396-5 than 31,000 access lines.
396-6 (b) This section expires September 1, 1998. (V.A.C.S.
396-7 Art. 1446c-0, Sec. 3.461 (part).)
396-8 Sec. 60.005. APPLICABILITY TO CERTAIN LARGER INCUMBENT LOCAL
396-9 EXCHANGE COMPANIES; RULES. (a) Subchapters B, D, and F may be
396-10 applied to an incumbent local exchange company that, as of
396-11 September 1, 1995, has 31,000 or more access lines in this state
396-12 but fewer than 1,000,000 access lines in this state only on a bona
396-13 fide request from a holder of a certificate of operating authority
396-14 or a service provider certificate of operating authority.
396-15 (b) In applying the rules adopted under Subchapters B, D,
396-16 and F to a company described by Subsection (a), the commission may
396-17 modify the rules in the public interest. (V.A.C.S. Art. 1446c-0,
396-18 Sec. 3.462.)
396-19 Sec. 60.006. BULLETIN BOARD SYSTEMS UNAFFECTED. This
396-20 subtitle does not:
396-21 (1) require the commission to change the rate
396-22 treatment established by the commission in Docket No. 8387 for a
396-23 bulletin board system in a residence;
396-24 (2) regulate or tax a bulletin board system or
396-25 Internet service provider that provides only enhanced or
396-26 information services and that does not provide a telecommunications
396-27 service; or
397-1 (3) require a change in a rate charged to an entity
397-2 described by Subdivision (2) under a tariff in effect on September
397-3 1, 1995. (V.A.C.S. Art. 1446c-0, Sec. 3.459(c).)
397-4 (Sections 60.007-60.020 reserved for expansion)
397-5 SUBCHAPTER B. UNBUNDLING
397-6 Sec. 60.021. MINIMUM UNBUNDLING REQUIREMENT. At a minimum,
397-7 an incumbent local exchange company shall unbundle its network to
397-8 the extent the Federal Communications Commission orders. (V.A.C.S.
397-9 Art. 1446c-0, Sec. 3.452(a).)
397-10 Sec. 60.022. COMMISSION UNBUNDLING ORDERS. (a) The
397-11 commission may adopt an order relating to the issue of unbundling
397-12 of local exchange company services in addition to the unbundling
397-13 required by Section 60.021.
397-14 (b) Before ordering further unbundling, the commission must
397-15 consider the public interest and competitive merits of further
397-16 unbundling.
397-17 (c) On the request of a party, the commission shall proceed
397-18 by evidentiary hearing. If a request for a hearing is not made,
397-19 the commission may proceed by rulemaking. (V.A.C.S. Art. 1446c-0,
397-20 Secs. 3.452(b), (c).)
397-21 Sec. 60.023. ASSIGNMENT OF UNBUNDLED COMPONENT TO CATEGORY
397-22 OF SERVICE. The commission may assign an unbundled component to
397-23 the appropriate category of services under Chapter 58 according to
397-24 the purposes and intents of the categories. (V.A.C.S.
397-25 Art. 1446c-0, Sec. 3.452(d).)
397-26 (Sections 60.024-60.040 reserved for expansion)
398-1 SUBCHAPTER C. RESALE
398-2 Sec. 60.041. LOOP RESALE TARIFF. (a) An incumbent local
398-3 exchange company that on September 1, 1995, serves 1,000,000 or
398-4 more access lines or that on or before September 1, 1995, elects
398-5 regulation under Chapter 58 shall file a usage sensitive loop
398-6 resale tariff.
398-7 (b) An incumbent local exchange company shall file a usage
398-8 sensitive loop resale tariff not later than the 60th day after the
398-9 date a certificate of operating authority or a service provider
398-10 certificate of operating authority is granted under Chapter 54 if
398-11 the company:
398-12 (1) serves fewer than 1,000,000 access lines; and
398-13 (2) is not an electing company under Chapter 58.
398-14 (c) The commission shall conduct an appropriate proceeding
398-15 to determine the rates and terms of the resale tariff not later
398-16 than the 180th day after the date the tariff is filed.
398-17 (d) The commission may not approve a usage sensitive rate
398-18 unless the rate recovers:
398-19 (1) the total long run incremental cost of the loop on
398-20 an unseparated basis; and
398-21 (2) an appropriate contribution to joint and common
398-22 costs.
398-23 (e) Except as provided by Section 60.044, a person may not
398-24 purchase from the resale tariff unless the person is the holder of:
398-25 (1) a certificate of convenience and necessity;
398-26 (2) a certificate of operating authority; or
398-27 (3) a service provider certificate of operating
399-1 authority.
399-2 (f) In this section, "loop resale" means the purchase of the
399-3 local distribution channel or loop facility from the incumbent
399-4 local exchange company to resell to end user customers. (V.A.C.S.
399-5 Art. 1446c-0, Secs. 3.453(a), (b), (c).)
399-6 Sec. 60.042. PROHIBITED RESALE OR SHARING. A provider of
399-7 telecommunications service may not impose a restriction on the
399-8 resale or sharing of a service:
399-9 (1) for which the provider is not a dominant provider;
399-10 or
399-11 (2) entitled to regulatory treatment as a competitive
399-12 service under Subchapter E, Chapter 58, if the provider is a
399-13 company electing regulation under Chapter 58. (V.A.C.S.
399-14 Art. 1446c-0, Sec. 3.453(d).)
399-15 Sec. 60.043. RESALE OBLIGATION. A holder of a certificate
399-16 of operating authority or a service provider certificate of
399-17 operating authority shall permit a local exchange company to resell
399-18 the holder's loop facilities at the holder's regularly published
399-19 rates if the local exchange company:
399-20 (1) does not have loop facilities; and
399-21 (2) has a request for service. (V.A.C.S.
399-22 Art. 1446c-0, Sec. 3.453(e).)
399-23 Sec. 60.044. ELIMINATION OF RESALE PROHIBITIONS. (a)
399-24 Except as provided by Subsections (c) and (d), the commission shall
399-25 eliminate all resale prohibitions in the tariffs of an electing
399-26 company on the:
399-27 (1) completion of the commission's costing and pricing
400-1 rulemaking;
400-2 (2) completion of rate rebalancing of the incumbent
400-3 local exchange company rates under Subchapter F; and
400-4 (3) removal of all prohibitions on an incumbent local
400-5 exchange company's provision of interLATA services.
400-6 (b) Except as provided by Subsections (c) and (d), the
400-7 commission shall eliminate all resale prohibitions in the tariffs
400-8 of an electing company that has 1,000,000 access lines or more on
400-9 removal of all prohibitions on the company's provision of interLATA
400-10 service.
400-11 (c) After the resale prohibitions are eliminated under this
400-12 section:
400-13 (1) the commission shall continue to prohibit the
400-14 resale of local exchange or directory assistance flat rate services
400-15 as a substitute for usage sensitive services; and
400-16 (2) residence service may not be resold to a business
400-17 customer.
400-18 (d) A service or function may be offered for resale only to
400-19 the same class of customer to which the incumbent local exchange
400-20 company sells the service if the commission finds that:
400-21 (1) as a result of the costing and pricing proceeding
400-22 the rate for the service or function will be less than the cost of
400-23 providing the service or function; and
400-24 (2) the difference in rate and cost will not be
400-25 recovered from the universal service fund. (V.A.C.S.
400-26 Art. 1446c-0, Sec. 3.453(f).)
400-27 Sec. 60.045. RESALE OR SHARING ARRANGEMENTS UNAFFECTED.
401-1 This subchapter does not change a resale or sharing arrangement
401-2 permitted in an incumbent local exchange company tariff that:
401-3 (1) existed on September 1, 1995; or
401-4 (2) was filed on or before May 1, 1995, by an
401-5 incumbent local exchange company that serves more than 5,000,000
401-6 access lines in this state. (V.A.C.S. Art. 1446c-0, Sec.
401-7 3.453(g).)
401-8 (Sections 60.046-60.060 reserved for expansion)
401-9 SUBCHAPTER D. IMPUTATION
401-10 Sec. 60.061. RULES. (a) The commission shall adopt rules
401-11 governing imputation of the price of a service.
401-12 (b) Imputation is a regulatory policy the commission shall
401-13 apply to prevent an incumbent local exchange company from selling a
401-14 service or function to another telecommunications utility at a
401-15 price that is higher than the rate the incumbent local exchange
401-16 company implicitly includes in services it provides to the
401-17 company's retail customers.
401-18 (c) The commission may require imputation only of the price
401-19 of a service that is:
401-20 (1) not generally available from a source other than
401-21 the incumbent local exchange company; and
401-22 (2) necessary for the competitor to provide a
401-23 competing service.
401-24 (d) The commission may require imputation only on a
401-25 service-by-service basis and may not require imputation on a
401-26 rate-element-by-element basis.
401-27 (e) For a service for which the commission may require
402-1 imputation under Subsection (c) and that is provided under a
402-2 customer specific contract, the commission:
402-3 (1) may require imputation only on a
402-4 service-by-service basis within the contract; and
402-5 (2) may not require imputation on a
402-6 rate-element-by-element basis. (V.A.C.S. Art. 1446c-0, Secs.
402-7 3.454(a), (b), (c), (f), (g).)
402-8 Sec. 60.062. EXCEPTION FOR CAPPED PRICE. The commission may
402-9 not require imputation of the price to a local exchange telephone
402-10 service while the price is capped under Chapter 58 or 59.
402-11 (V.A.C.S. Art. 1446c-0, Sec. 3.454(d).)
402-12 Sec. 60.063. IMPUTATION FOR SWITCHED ACCESS. The commission
402-13 shall impute the price of switched access service to the price of
402-14 each service for which switched access service is a component until
402-15 switched access service is competitively available. (V.A.C.S.
402-16 Art. 1446c-0, Sec. 3.454(e).)
402-17 Sec. 60.064. RECOVERY OF COST OF PROVIDING SERVICE. (a) An
402-18 incumbent local exchange company shall demonstrate that the price
402-19 it charges for retail service recovers the cost of providing the
402-20 service.
402-21 (b) For purposes of this section, the cost of providing the
402-22 service is the sum of:
402-23 (1) each specifically tariffed premium rate for each
402-24 noncompetitive service or service function, or each element of a
402-25 noncompetitive service or service function, or the functional
402-26 equivalent, that is used to provide the service;
402-27 (2) the total service long run incremental cost of the
403-1 competitive services or service functions that are used;
403-2 (3) each cost, not reflected in Subdivision (1) or
403-3 (2), that is specifically associated with providing the service or
403-4 group of services; and
403-5 (4) each cost or surcharge associated with an explicit
403-6 subsidy applied to all providers of the service to promote
403-7 universal service. (V.A.C.S. Art. 1446c-0, Sec. 3.454(h).)
403-8 Sec. 60.065. WAIVERS. If the commission determines that a
403-9 waiver is in the public interest, the commission may waive an
403-10 imputation requirement for a public interest service such as:
403-11 (1) 9-1-1 service; or
403-12 (2) dual party relay service. (V.A.C.S. Art. 1446c-0,
403-13 Sec. 3.454(i).)
403-14 (Sections 60.066-60.080 reserved for expansion)
403-15 SUBCHAPTER E. TELECOMMUNICATIONS NUMBER PORTABILITY
403-16 Sec. 60.081. DEFINITION. In this subchapter,
403-17 "telecommunications number portability" means the ability of a
403-18 telecommunications services user who is changing from one
403-19 telecommunications service provider to another provider to retain a
403-20 telephone number, to the extent technically feasible, without
403-21 impairing the quality, reliability, or convenience of service.
403-22 (V.A.C.S. Art. 1446c-0, Sec. 3.455(b).)
403-23 Sec. 60.082. PORTABILITY GUIDELINES. (a) Because a uniform
403-24 national number plan is valuable and necessary to this state, the
403-25 commission by rule shall adopt guidelines governing
403-26 telecommunications number portability and the assignment of
403-27 telephone numbers in a competitively neutral manner.
404-1 (b) The rules may not be inconsistent with the rules and
404-2 regulations of the Federal Communications Commission regarding
404-3 telecommunications number portability. (V.A.C.S. Art. 1446c-0,
404-4 Sec. 3.455(a).)
404-5 Sec. 60.083. INTERIM RETENTION OF CONSUMER NUMBERS. As an
404-6 interim measure, the commission shall adopt reasonable mechanisms,
404-7 including, at minimum, the use of call forwarding and direct inward
404-8 dialing, to allow consumers to retain their telephone numbers.
404-9 (V.A.C.S. Art. 1446c-0, Sec. 3.455(c) (part).)
404-10 Sec. 60.084. RATES FOR INTERIM PORTABILITY MEASURES. (a)
404-11 An incumbent local exchange company with 1,000,000 or more access
404-12 lines shall file tariffs, and the commission shall determine
404-13 reasonable rates to be charged by the company for:
404-14 (1) call forwarding;
404-15 (2) direct inward dialing; and
404-16 (3) any other mechanism the commission determines
404-17 should be used as an interim telecommunications number portability
404-18 measure by a new entrant.
404-19 (b) An incumbent local exchange company with fewer than
404-20 1,000,000 access lines that serves an area in which a certificate
404-21 of operating authority or a service provider certificate of
404-22 operating authority has been granted shall, not later than the 60th
404-23 day after the date of a bona fide request, file tariffs in
404-24 accordance with Subsection (a).
404-25 (c) Not later than the 60th day after the date a company
404-26 files tariffs under Subsection (b), the commission shall determine
404-27 reasonable rates in accordance with Subsection (a). (V.A.C.S.
405-1 Art. 1446c-0, Sec. 3.455(c) (part).)
405-2 (Sections 60.085-60.100 reserved for expansion)
405-3 SUBCHAPTER F. PRICING
405-4 Sec. 60.101. PRICING RULE. (a) The commission shall adopt
405-5 a pricing rule.
405-6 (b) In adopting the pricing rule, the commission shall:
405-7 (1) ensure that each price for a monopoly service
405-8 remains affordable;
405-9 (2) ensure that each price for competitive service is
405-10 not:
405-11 (A) unreasonably preferential, prejudicial, or
405-12 discriminatory;
405-13 (B) directly or indirectly subsidized by a
405-14 noncompetitive service; or
405-15 (C) predatory or anticompetitive; and
405-16 (3) require that each service recover the appropriate
405-17 costs, including joint and common costs, of each facility and
405-18 function used to provide the service. (V.A.C.S. Art. 1446c-0,
405-19 Secs. 3.457(a)(1) (part), (b).)
405-20 Sec. 60.102. ADOPTION OF COST STUDIES BY CERTAIN COMPANIES.
405-21 The commission shall allow an incumbent local exchange company that
405-22 is not a Tier 1 local exchange company on September 1, 1995, to
405-23 adopt, at that company's option, the cost studies approved by the
405-24 commission for a Tier 1 local exchange company. (V.A.C.S.
405-25 Art. 1446c-0, Sec. 3.457(c).)
405-26 (Sections 60.103-60.120 reserved for expansion)
406-1 SUBCHAPTER G. INTERCONNECTION
406-2 Sec. 60.121. DEFINITION. In this subchapter,
406-3 "interconnection" means, for calls that originate and terminate in
406-4 this state, the termination of local intraexchange traffic of
406-5 another local exchange company or holder of a service provider
406-6 certificate of operating authority within the local calling area of
406-7 the terminating local exchange company or certificate holder.
406-8 (V.A.C.S. Art. 1446c-0, Sec. 3.458(a) (part).)
406-9 Sec. 60.122. EXCLUSIVE JURISDICTION. The commission has
406-10 exclusive jurisdiction to determine rates and terms for
406-11 interconnection for a holder of a certificate of convenience and
406-12 necessity, a certificate of operating authority, or a service
406-13 provider certificate of operating authority. (V.A.C.S.
406-14 Art. 1446c-0, Sec. 3.458(h).)
406-15 Sec. 60.123. INAPPLICABILITY OF SUBCHAPTER. This subchapter
406-16 does not apply to a rate for the existing termination of cellular
406-17 or interexchange traffic. (V.A.C.S. Art. 1446c-0, Sec. 3.458(a)
406-18 (part).)
406-19 Sec. 60.124. INTEROPERABLE NETWORKS REQUIRED. (a) The
406-20 commission shall require each telecommunications provider to
406-21 maintain interoperable networks.
406-22 (b) The commission may:
406-23 (1) adopt rules, including generic rules that are
406-24 responsive to changes in federal law or a development in the local
406-25 exchange market; and
406-26 (2) set policies governing interconnection
406-27 arrangements. (V.A.C.S. Art. 1446c-0, Secs. 3.458(b) (part), (f).)
407-1 Sec. 60.125. DETERMINATION OF INTERCONNECTION RATES. (a)
407-2 Telecommunications providers shall negotiate network
407-3 interconnectivity, charges, and terms.
407-4 (b) If interconnectivity, charges, and terms are
407-5 successfully negotiated, the commission shall approve the
407-6 interconnection rates.
407-7 (c) If telecommunications providers do not enter into a
407-8 mutually agreed compensation rate under this section, each provider
407-9 shall reciprocally terminate the other provider's traffic at no
407-10 charge for the first nine months after the date the first call is
407-11 terminated between the providers.
407-12 (d) During the nine-month period prescribed by Subsection
407-13 (c), the commission shall complete a proceeding to establish
407-14 reciprocal interconnection rates and terms. The commission shall
407-15 establish reciprocal interconnection rates and terms based solely
407-16 on the commission proceeding.
407-17 (e) In establishing the initial interconnection rate, the
407-18 commission may not require cost studies from the new entrant.
407-19 (f) On or after the third anniversary of the date the first
407-20 call is terminated between the providers, the commission, on
407-21 receipt of a complaint, may require cost studies by a new entrant
407-22 to establish interconnection rates. (V.A.C.S. Art. 1446c-0, Secs.
407-23 3.458(b) (part), (c), (d).)
407-24 Sec. 60.126. INTERCONNECTIVITY NEGOTIATIONS; DISPUTE
407-25 RESOLUTION. The commission may resolve a dispute filed by a party
407-26 to a negotiation under Section 60.125(a). (V.A.C.S. Art. 1446c-0,
407-27 Sec. 3.458(b) (part).)
408-1 Sec. 60.127. ADOPTION OF APPROVED INTERCONNECTION RATES.
408-2 (a) An incumbent local exchange company may adopt the
408-3 interconnection rates the commission approves for a larger
408-4 incumbent local exchange company without additional cost
408-5 justification.
408-6 (b) If an incumbent local exchange company does not adopt
408-7 the interconnection rates of a larger company or negotiates under
408-8 Section 60.125(a), the company is governed by Sections
408-9 60.125(c)-(f).
408-10 (c) If the incumbent local exchange company adopts the
408-11 interconnection rates of another incumbent local exchange company,
408-12 the new entrant may adopt those rates as the new entrant's
408-13 interconnection rates.
408-14 (d) If the incumbent local exchange company elects to file
408-15 its own tariff, the new entrant must also file its own
408-16 interconnection tariff. (V.A.C.S. Art. 1446c-0, Sec. 3.458(e).)
408-17 Sec. 60.128. USE OF RATES RESTRICTED. The commission may
408-18 not use interconnection rates under this subchapter as a basis to
408-19 alter interconnection rates for other services. (V.A.C.S.
408-20 Art. 1446c-0, Sec. 3.458(g).)
408-21 (Sections 60.129-60.140 reserved for expansion)
408-22 SUBCHAPTER H. EXPANDED INTERCONNECTION
408-23 Sec. 60.141. EXPANDED INTERCONNECTION RULES. The commission
408-24 shall adopt rules for expanded interconnection that:
408-25 (1) are consistent with the rules and regulations of
408-26 the Federal Communications Commission relating to expanded
408-27 interconnection;
409-1 (2) treat intrastate private line services as special
409-2 access service; and
409-3 (3) provide that if an incumbent local exchange
409-4 company is required to provide expanded interconnection to another
409-5 local exchange company, the second local exchange company shall in
409-6 a similar manner provide expanded interconnection to the first
409-7 company. (V.A.C.S. Art. 1446c-0, Sec. 3.456(a).)
409-8 (Sections 60.142-60.160 reserved for expansion)
409-9 SUBCHAPTER I. LOCAL EXCHANGE COMPANY REQUIREMENTS
409-10 Sec. 60.161. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS.
409-11 An incumbent local exchange company may not unreasonably:
409-12 (1) discriminate against another provider by refusing
409-13 access to the local exchange;
409-14 (2) refuse or delay an interconnection to another
409-15 provider;
409-16 (3) degrade the quality of access the company provides
409-17 to another provider;
409-18 (4) impair the speed, quality, or efficiency of a line
409-19 used by another provider;
409-20 (5) fail to fully disclose in a timely manner on
409-21 request all available information necessary to design equipment
409-22 that will meet the specifications of the local exchange network; or
409-23 (6) refuse or delay access by a person to another
409-24 provider. (V.A.C.S. Art. 1446c-0, Sec. 3.459(a).)
409-25 Sec. 60.162. EXPANDED INTERCONNECTION. This subchapter does
409-26 not require an incumbent local exchange company to provide expanded
409-27 interconnection as that term is defined by the Federal
410-1 Communications Commission. (V.A.C.S. Art. 1446c-0, Sec. 3.459(b).)
410-2 Sec. 60.163. INFRASTRUCTURE SHARING. (a) The commission
410-3 shall adopt rules that require a local exchange company to share
410-4 public switched network infrastructure and technology with a
410-5 requesting local exchange company that lacks economies of scale or
410-6 scope, to enable the requesting company to provide
410-7 telecommunications services in each geographic area for which the
410-8 requesting company is designated as the sole carrier of last
410-9 resort.
410-10 (b) The rules governing the sharing:
410-11 (1) may not require a local exchange company to make a
410-12 decision that is uneconomic or adverse to the public;
410-13 (2) shall permit, but may not require, joint ownership
410-14 and operation of public switched network infrastructure and
410-15 services by or among the local exchange companies that share
410-16 infrastructure; and
410-17 (3) shall establish conditions that promote
410-18 cooperation between local exchange companies. (V.A.C.S.
410-19 Art. 1446c-0, Sec. 3.463.)
410-20 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
410-21 SUBCHAPTER A. GENERAL PROVISIONS
410-22 Sec. 61.001. DEFINITIONS
410-23 (Sections 61.002-61.020 reserved for expansion)
410-24 SUBCHAPTER B. PROVISION OF INFORMATION TECHNOLOGY SERVICES
410-25 Sec. 61.021. PROVISION OF CERTAIN SERVICES OR PRODUCTS
410-26 PROHIBITED
410-27 Sec. 61.022. PERMISSIBLE SERVICES AND PRODUCTS
411-1 Sec. 61.023. SEPARATE AFFILIATE REQUIREMENTS
411-2 Sec. 61.024. ARM'S-LENGTH TRANSACTIONS
411-3 Sec. 61.025. CONTRACTS AND RECORDS
411-4 Sec. 61.026. JOINT OWNERSHIP OR USE PROHIBITED
411-5 (Sections 61.027-61.040 reserved for expansion)
411-6 SUBCHAPTER C. ADDITIONAL COMPETITIVE SAFEGUARDS
411-7 Sec. 61.041. PROHIBITED DISCRIMINATION
411-8 Sec. 61.042. SUBSIDIZATION OF SERVICES PROHIBITED
411-9 Sec. 61.043. PERMISSIBLE INVESTMENT
411-10 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
411-11 SUBCHAPTER A. GENERAL PROVISIONS
411-12 Sec. 61.001. DEFINITIONS. In this chapter:
411-13 (1) "Management consulting" means the development,
411-14 refinement, and coordination of a strategy to support a client's
411-15 business direction, positively affect business performance, and
411-16 improve an operating result, in a field such as business planning,
411-17 operations, information technology, marketing, finance, and human
411-18 resources.
411-19 (2) "Process management" means the ongoing
411-20 responsibility for direction and operation of a business process in
411-21 an enterprise in a field such as administration, finance, human
411-22 resources, operations, sales, or marketing.
411-23 (3) "Systems development" means the creation,
411-24 migration, or improvement of a computer system, including hardware
411-25 and software, to:
411-26 (A) meet a specific business need; or
411-27 (B) take advantage of a change in information
412-1 technology.
412-2 (4) "Systems integration" means the acquisition,
412-3 installation, and integration of hardware, software,
412-4 communications, and related support components or services.
412-5 (5) "Systems management" means the ongoing management
412-6 and operation of information technology components, ranging from
412-7 specialized system applications to an enterprise's entire
412-8 information technology function, including related facilities and
412-9 personnel. (V.A.C.S. Art. 1446c-0, Sec. 3.581.)
412-10 (Sections 61.002-61.020 reserved for expansion)
412-11 SUBCHAPTER B. PROVISION OF INFORMATION
412-12 TECHNOLOGY SERVICES
412-13 Sec. 61.021. PROVISION OF CERTAIN SERVICES OR PRODUCTS
412-14 PROHIBITED. (a) A local exchange company that serves more than
412-15 five million access lines in this state may not provide the
412-16 following customized business services or products to a customer
412-17 who has 50 or more access lines in this state:
412-18 (1) management consulting, except for consulting
412-19 related exclusively to telecommunications;
412-20 (2) information technology process or systems
412-21 development;
412-22 (3) information technology process or systems
412-23 integration; or
412-24 (4) information technology process or systems
412-25 management.
412-26 (b) This section does not apply to a service or product
412-27 provided on September 1, 1995. (V.A.C.S. Art. 1446c-0, Sec.
413-1 3.582(a).)
413-2 Sec. 61.022. PERMISSIBLE SERVICES AND PRODUCTS. Section
413-3 61.021 does not prohibit:
413-4 (1) an affiliate of the local exchange company from
413-5 providing a service or product described by that section in
413-6 accordance with this subchapter and Subchapter C; or
413-7 (2) a local exchange company from:
413-8 (A) providing a service or product described by
413-9 Section 61.021 to an affiliate if:
413-10 (i) the company is not providing a service
413-11 or product described by that section to a nonaffiliated third
413-12 party; and
413-13 (ii) there is not an affiliate of the
413-14 company engaged in providing a service or product described by that
413-15 section to a nonaffiliated third party;
413-16 (B) providing mass market and consumer market
413-17 products and services directly to a customer that:
413-18 (i) has fewer than 50 access lines in this
413-19 state; and
413-20 (ii) uses or relies on the use of
413-21 information services, information systems, or information
413-22 technology or processes;
413-23 (C) selling or leasing billing and collection
413-24 services, local area networks, wide area networks, or other
413-25 telecommunications services; or
413-26 (D) providing to itself a service or product
413-27 described by Section 61.021. (V.A.C.S. Art. 1446c-0, Secs.
414-1 3.582(b), (c) (part).)
414-2 Sec. 61.023. SEPARATE AFFILIATE REQUIREMENTS. (a) A local
414-3 exchange company's affiliate that provides a service or product
414-4 described by Section 61.021:
414-5 (1) shall:
414-6 (A) operate independently from the local
414-7 exchange company in providing the service or product; and
414-8 (B) maintain the affiliate's own books of
414-9 accounts; and
414-10 (2) may not have an officer, director, or employee in
414-11 common with the local exchange company.
414-12 (b) Notwithstanding Subsection (a)(2), an officer of a
414-13 corporate parent or holding company may serve as a director of the
414-14 local exchange company and as a director of another subsidiary of
414-15 the parent if the subsidiary existed on September 1, 1995.
414-16 (V.A.C.S. Art. 1446c-0, Sec. 3.583(a) (part).)
414-17 Sec. 61.024. ARM'S-LENGTH TRANSACTIONS. A local exchange
414-18 company and an affiliate shall conduct at arm's length each
414-19 transaction regarding the acquisition from the affiliate of a
414-20 service or product described by Section 61.021. (V.A.C.S.
414-21 Art. 1446c-0, Sec. 3.583(b).)
414-22 Sec. 61.025. CONTRACTS AND RECORDS. (a) A local exchange
414-23 company shall maintain and keep available for inspection by the
414-24 commission copies of each contract or arrangement between the
414-25 company and an affiliate that relates to the company's acquisition
414-26 from the affiliate of a service or product described by Section
414-27 61.021.
415-1 (b) The local exchange company's records must show each cash
415-2 or noncash transaction with the affiliate for the service or
415-3 product, including each payment for a good, service, or property
415-4 right. (V.A.C.S. Art. 1446c-0, Sec. 3.583(c).)
415-5 Sec. 61.026. JOINT OWNERSHIP OR USE PROHIBITED. A local
415-6 exchange company and an affiliate engaged in providing a service or
415-7 product described by Section 61.021 may not:
415-8 (1) own property jointly; or
415-9 (2) share in the use of property. (V.A.C.S.
415-10 Art. 1446c-0, Sec. 3.583(d).)
415-11 (Sections 61.027-61.040 reserved for expansion)
415-12 SUBCHAPTER C. ADDITIONAL COMPETITIVE SAFEGUARDS
415-13 Sec. 61.041. PROHIBITED DISCRIMINATION. A local exchange
415-14 company may not discriminate between an affiliate that provides a
415-15 service or product described by Section 61.021 and another person
415-16 in:
415-17 (1) providing or procuring a good, a service, a
415-18 facility, or information; or
415-19 (2) establishing a standard. (V.A.C.S. Art. 1446c-0,
415-20 Sec. 3.584(a).)
415-21 Sec. 61.042. SUBSIDIZATION OF SERVICES PROHIBITED. A local
415-22 exchange company or the company's affiliate may not subsidize the
415-23 provision of a service or product described by Section 61.021 with
415-24 revenue from:
415-25 (1) a local exchange telephone service; or
415-26 (2) an access service provided by the local exchange
415-27 company. (V.A.C.S. Art. 1446c-0, Sec. 3.584(b).)
416-1 Sec. 61.043. PERMISSIBLE INVESTMENT. This subchapter does
416-2 not prohibit a local exchange company's affiliate from investing a
416-3 dividend or profit derived from a local exchange company or
416-4 developing a service or product described by Section 61.021 for the
416-5 local exchange company if the investment or development complies
416-6 with Subchapter B. (V.A.C.S. Art. 1446c-0, Sec. 3.584(c).)
416-7 CHAPTER 62. BROADCASTER SAFEGUARDS
416-8 SUBCHAPTER A. GENERAL PROVISIONS
416-9 Sec. 62.001. APPLICABILITY OF CHAPTER
416-10 Sec. 62.002. DEFINITIONS
416-11 (Sections 62.003-62.020 reserved for expansion)
416-12 SUBCHAPTER B. CUSTOMER PROPRIETARY NETWORK INFORMATION
416-13 Sec. 62.021. DEFINITIONS
416-14 Sec. 62.022. USE OF SPECIFIC CUSTOMER PROPRIETARY NETWORK
416-15 INFORMATION
416-16 Sec. 62.023. RULES
416-17 (Sections 62.024-62.040 reserved for expansion)
416-18 SUBCHAPTER C. ADVERTISING
416-19 Sec. 62.041. DEFINITION
416-20 Sec. 62.042. APPLICABILITY OF SUBCHAPTER
416-21 Sec. 62.043. ADVERTISING AGENCY SERVICES PROHIBITED
416-22 Sec. 62.044. ADVERTISING ACTIVITIES OF AFFILIATE
416-23 Sec. 62.045. JOINT MARKETING PROHIBITED
416-24 Sec. 62.046. CHARITABLE TELEPHONE SOLICITATION
416-25 Sec. 62.047. WAIVER
416-26 (Sections 62.048-62.070 reserved for expansion)
416-27 SUBCHAPTER D. AUDIO AND VIDEO PROGRAMMING
417-1 Sec. 62.071. APPLICABILITY OF SUBCHAPTER
417-2 Sec. 62.072. AUDIO OR VIDEO PROGRAMMING PROHIBITED
417-3 Sec. 62.073. RELATIONSHIP BETWEEN EXCHANGE COMPANY AND
417-4 AFFILIATE THAT PROVIDES AUDIO OR VIDEO
417-5 PROGRAMMING
417-6 Sec. 62.074. REGULATION OF EXCHANGE COMPANY DEALINGS WITH
417-7 SEPARATE AFFILIATE
417-8 Sec. 62.075. BILLING OR COLLECTION SERVICES FOR NONAFFILIATED
417-9 PROGRAMMER
417-10 Sec. 62.076. COMPLIANCE AUDIT
417-11 Sec. 62.077. WAIVER
417-12 Sec. 62.078. LIMITATION OF JURISDICTION
417-13 (Sections 62.079-62.100 reserved for expansion)
417-14 SUBCHAPTER E. VIDEO CARRIAGE
417-15 Sec. 62.101. APPLICABILITY OF SUBCHAPTER
417-16 Sec. 62.102. RATE FOR BROADCAST STATION ACCESS TO
417-17 TELECOMMUNICATIONS SERVICES
417-18 Sec. 62.103. DUTIES OF LOCAL EXCHANGE COMPANY
417-19 Sec. 62.104. BROADCAST STATION ACCESS THROUGH
417-20 TELECOMMUNICATIONS SERVICES
417-21 Sec. 62.105. RETRANSMISSION CONSENT
417-22 Sec. 62.106. WAIVER
417-23 Sec. 62.107. LIMITATION OF JURISDICTION
417-24 Sec. 62.108. EXPIRATION
417-25 (Sections 62.109-62.130 reserved for expansion)
417-26 SUBCHAPTER F. AUDIO CARRIAGE
417-27 Sec. 62.131. APPLICABILITY OF SUBCHAPTER
418-1 Sec. 62.132. BROADCAST STATION ACCESS THROUGH
418-2 TELECOMMUNICATIONS SERVICES
418-3 Sec. 62.133. RETRANSMISSION CONSENT
418-4 Sec. 62.134. WAIVER
418-5 Sec. 62.135. LIMITATION OF JURISDICTION
418-6 Sec. 62.136. EXPIRATION
418-7 CHAPTER 62. BROADCASTER SAFEGUARDS
418-8 SUBCHAPTER A. GENERAL PROVISIONS
418-9 Sec. 62.001. APPLICABILITY OF CHAPTER. This chapter does
418-10 not apply to a cable company. (V.A.C.S. Art. 1446c-0, Sec. 3.506.)
418-11 Sec. 62.002. DEFINITIONS. In this chapter:
418-12 (1) "Audio programming":
418-13 (A) means programming:
418-14 (i) provided by an amplitude modulation or
418-15 frequency modulation broadcast radio station; or
418-16 (ii) generally considered comparable to
418-17 programming described by Subparagraph (i); and
418-18 (B) does not include an audio-related service
418-19 offered by an incumbent local exchange company on September 1,
418-20 1995.
418-21 (2) "Video programming" means programming provided by
418-22 or generally considered comparable to programming provided by a
418-23 television broadcast station as defined by Section 602,
418-24 Communications Act of 1934 (47 U.S.C. Section 522). (V.A.C.S.
418-25 Art. 1446c-0, Sec. 3.502(a).)
418-26 (Sections 62.003-62.020 reserved for expansion)
419-1 SUBCHAPTER B. CUSTOMER PROPRIETARY NETWORK INFORMATION
419-2 Sec. 62.021. DEFINITIONS. In this subchapter:
419-3 (1) "Specific customer proprietary network
419-4 information" means information, other than subscriber list
419-5 information:
419-6 (A) that concerns the customer and is available
419-7 to the telecommunications utility because of the customer's use of
419-8 the telecommunications utility service;
419-9 (B) that is contained in the bills relating to
419-10 telecommunications services received by a customer of a
419-11 telecommunications utility; or
419-12 (C) that:
419-13 (i) is made available to a
419-14 telecommunications utility by a customer of the utility, other than
419-15 a wireless telecommunications provider, solely because of the
419-16 utility-customer relationship; and
419-17 (ii) relates to the quantity, technical
419-18 configuration, type, destination, or amount of use of voice or data
419-19 telecommunications services to which the customer subscribes.
419-20 (2) "Subscriber list information" means information:
419-21 (A) that identifies the listed name of a
419-22 telecommunications utility subscriber or the subscriber's telephone
419-23 number, address, or primary advertising classification; and
419-24 (B) that the telecommunications utility or an
419-25 affiliate has published or accepted for publication. (V.A.C.S.
419-26 Art. 1446c-0, Sec. 3.501(a).)
419-27 Sec. 62.022. USE OF SPECIFIC CUSTOMER PROPRIETARY NETWORK
420-1 INFORMATION. (a) A telecommunications utility may not use
420-2 specific customer proprietary network information for a commercial
420-3 purpose other than the sale or provision of, or billing or
420-4 collection for, telecommunications or enhanced services.
420-5 (b) This section does not prohibit:
420-6 (1) the use of specific customer proprietary network
420-7 information with the customer's consent; or
420-8 (2) the provision of specific customer proprietary
420-9 network information to an affiliate telecommunications provider.
420-10 (c) Subsection (a) has no effect to the extent it is
420-11 preempted by an action of the Federal Communications Commission.
420-12 (V.A.C.S. Art. 1446c-0, Sec. 3.501(b).)
420-13 Sec. 62.023. RULES. (a) The commission shall adopt rules
420-14 that are consistent with rules on the use of specific customer
420-15 proprietary network information adopted by the Federal
420-16 Communications Commission.
420-17 (b) Rules adopted under Subsection (a) shall:
420-18 (1) require each telecommunications utility annually
420-19 to notify, by means approved by the commission, each subscriber of
420-20 the subscriber's right to reject the utility's use of specific
420-21 customer proprietary network information for marketing other
420-22 services; and
420-23 (2) require a telecommunications utility that makes
420-24 nonproprietary aggregate customer proprietary network information
420-25 available to its affiliates to make the information available to
420-26 nonaffiliated entities on the same terms.
420-27 (c) If the Federal Communications Commission adopts rules
421-1 regarding customer proprietary network information that no longer
421-2 preempt this state's authority to adopt inconsistent rules, the
421-3 commission shall conduct a proceeding to determine the appropriate
421-4 use of customer proprietary network information by a
421-5 telecommunications utility. A rule, policy, or order adopted by
421-6 the commission on customer proprietary network information may not
421-7 be discriminatory in its application to telecommunications
421-8 utilities.
421-9 (d) A commission rule governing customer proprietary network
421-10 information may not apply to an incumbent local exchange company
421-11 that has 100,000 or fewer access lines in service in this state if
421-12 the rule is more burdensome to the company than the customer
421-13 proprietary network information rules of the Federal Communications
421-14 Commission. This prohibition does not apply to a rule regarding a
421-15 use of customer proprietary network information that is not related
421-16 to a telecommunications service or product. (V.A.C.S.
421-17 Art. 1446c-0, Secs. 3.501(c), (d).)
421-18 (Sections 62.024-62.040 reserved for expansion)
421-19 SUBCHAPTER C. ADVERTISING
421-20 Sec. 62.041. DEFINITION. In this subchapter, "advertising
421-21 agency services" includes:
421-22 (1) advertising development;
421-23 (2) advertising purchase;
421-24 (3) advertising consultation;
421-25 (4) advertising copy writing;
421-26 (5) advertising research; and
421-27 (6) other functions generally performed by a general
422-1 advertising agency. (V.A.C.S. Art. 1446c-0, Sec. 3.503(a).)
422-2 Sec. 62.042. APPLICABILITY OF SUBCHAPTER. This subchapter
422-3 does not apply to an incumbent local exchange company that has
422-4 100,000 or fewer access lines in service in this state. (V.A.C.S.
422-5 Art. 1446c-0, Sec. 3.503(f).)
422-6 Sec. 62.043. ADVERTISING AGENCY SERVICES PROHIBITED. (a)
422-7 An incumbent local exchange company may not sell an advertising
422-8 agency service to a nonaffiliate in this state.
422-9 (b) Subsection (a) does not prohibit a local exchange
422-10 company from:
422-11 (1) promoting or selling a telecommunications service
422-12 or telecommunications equipment, including:
422-13 (A) voice service or equipment;
422-14 (B) data service or equipment;
422-15 (C) video dial tone service or equipment;
422-16 (D) video or audio programming service or
422-17 equipment;
422-18 (E) cellular service or equipment;
422-19 (F) interactive media service or equipment;
422-20 (G) software service or equipment; or
422-21 (H) another related service or piece of
422-22 equipment; or
422-23 (2) enhancing or promoting the use of the
422-24 telecommunications network. (V.A.C.S. Art. 1446c-0, Sec.
422-25 3.503(b).)
422-26 Sec. 62.044. ADVERTISING ACTIVITIES OF AFFILIATE. (a) A
422-27 separate corporate affiliate of an incumbent local exchange company
423-1 may engage in advertising agency activities. In conducting an
423-2 advertising agency activity, the affiliate shall comply with this
423-3 section.
423-4 (b) The affiliate shall prepare financial statements that
423-5 are not consolidated with the financial statements of the incumbent
423-6 local exchange company. Financial statements and consolidated tax
423-7 returns that consolidate the operation of the separate corporate
423-8 affiliate with a parent company and the parent company's other
423-9 subsidiaries may be prepared.
423-10 (c) The affiliate shall:
423-11 (1) maintain, in accordance with generally accepted
423-12 accounting principles, books, records, and accounts that are
423-13 separate from the books, records, and accounts of the incumbent
423-14 local exchange company; and
423-15 (2) maintain a corporate identity separate from the
423-16 incumbent local exchange company.
423-17 (d) The affiliate may not:
423-18 (1) incur debt in a manner that, on the affiliate's
423-19 default, would permit a creditor to have recourse against an asset
423-20 of the incumbent local exchange company;
423-21 (2) use a name, trademark, or service mark of the
423-22 incumbent local exchange company, unless the name, trademark, or
423-23 service mark is used in common with the parent, affiliate, or owner
423-24 of the incumbent local exchange company; or
423-25 (3) have a director, officer, or employee in common
423-26 with the incumbent local exchange company. (V.A.C.S. Art. 1446c-0,
423-27 Sec. 3.503(c).)
424-1 Sec. 62.045. JOINT MARKETING PROHIBITED. (a) Except as
424-2 permitted by Section 62.043, an incumbent local exchange company
424-3 that has an affiliate that provides advertising agency services on
424-4 behalf of a nonaffiliate in this state may not jointly market the
424-5 affiliate's advertising agency services in connection with a
424-6 telecommunications service or telecommunications equipment the
424-7 incumbent local exchange company provides.
424-8 (b) This section does not apply to advertising in a
424-9 telephone directory disseminated in any form. (V.A.C.S.
424-10 Art. 1446c-0, Sec. 3.503(d).)
424-11 Sec. 62.046. CHARITABLE TELEPHONE SOLICITATION. This
424-12 subchapter does not prohibit an incumbent local exchange company
424-13 from providing a telephone solicitation service for a charitable
424-14 organization. (V.A.C.S. Art. 1446c-0, Sec. 3.503(e).)
424-15 Sec. 62.047. WAIVER. (a) A company may petition the
424-16 commission for a waiver from a requirement this subchapter imposes
424-17 on the company.
424-18 (b) The commission shall grant the waiver if the waiver is
424-19 in the public interest, after considering whether there is a need
424-20 for the requirement in the affected market.
424-21 (c) The commission may revoke a waiver granted under this
424-22 section if:
424-23 (1) conditions under which the waiver was granted have
424-24 materially changed; and
424-25 (2) the revocation is in the public interest.
424-26 (V.A.C.S. Art. 1446c-0, Sec. 3.503(g).)
424-27 (Sections 62.048-62.070 reserved for expansion)
425-1 SUBCHAPTER D. AUDIO AND VIDEO PROGRAMMING
425-2 Sec. 62.071. APPLICABILITY OF SUBCHAPTER. This subchapter
425-3 does not apply to an incumbent local exchange company that has
425-4 100,000 or fewer access lines in service in this state. (V.A.C.S.
425-5 Art. 1446c-0, Sec. 3.502(h).)
425-6 Sec. 62.072. AUDIO OR VIDEO PROGRAMMING PROHIBITED. (a) An
425-7 incumbent local exchange company may not provide audio or video
425-8 programming in this state.
425-9 (b) This section does not prohibit a separate corporate
425-10 affiliate of an incumbent local exchange company from providing
425-11 audio or video programming. (V.A.C.S. Art. 1446c-0, Sec.
425-12 3.502(b).)
425-13 Sec. 62.073. RELATIONSHIP BETWEEN EXCHANGE COMPANY AND
425-14 AFFILIATE THAT PROVIDES AUDIO OR VIDEO PROGRAMMING. (a) This
425-15 section applies only to an incumbent local exchange company's
425-16 separate corporate affiliate that provides audio or video
425-17 programming.
425-18 (b) For a telecommunications service the affiliate obtains
425-19 from the incumbent local exchange company, the affiliate shall pay:
425-20 (1) a tariffed rate;
425-21 (2) the fair market value of the service, if the
425-22 service is not provided under a tariff; or
425-23 (3) the service's long run incremental cost, if:
425-24 (A) the service is not provided under a tariff;
425-25 and
425-26 (B) the service:
425-27 (i) does not have a fair market value; or
426-1 (ii) has a fair market value that is less
426-2 than the service's long run incremental cost.
426-3 (c) In making a transaction with the incumbent local
426-4 exchange company to purchase, use, rent, or access information,
426-5 services, space, or devices that are not telecommunications
426-6 services, the affiliate shall act in a manner consistent with the
426-7 affiliate transaction rules of the Federal Communications
426-8 Commission. The subject of a transaction described by this
426-9 subsection may not be valued at less than the greater of the
426-10 subject's net book value or fair market value, whichever is
426-11 applicable.
426-12 (d) The affiliate shall prepare financial statements that
426-13 are not consolidated with those of the incumbent local exchange
426-14 company. Financial statements and consolidated tax returns that
426-15 consolidate the operation of the separate corporate affiliate with
426-16 a parent company and the parent company's other subsidiaries may be
426-17 prepared.
426-18 (e) The affiliate shall:
426-19 (1) maintain, in accordance with generally accepted
426-20 accounting principles, books, records, and accounts that are
426-21 separate from the books, records, and accounts of the incumbent
426-22 local exchange company;
426-23 (2) perform its marketing and sales functions and
426-24 operation in compliance with open network architecture and the
426-25 affiliate transaction rules of the Federal Communications
426-26 Commission; and
426-27 (3) maintain a corporate identity separate from the
427-1 incumbent local exchange company.
427-2 (f) The affiliate may not:
427-3 (1) incur debt in a manner that, on the affiliate's
427-4 default, would permit a creditor to have recourse against an asset
427-5 of the incumbent local exchange company;
427-6 (2) use a name, trademark, or service mark of the
427-7 incumbent local exchange company, unless the name, trademark, or
427-8 service mark is used in common with the parent, affiliate, or owner
427-9 of the incumbent local exchange company; or
427-10 (3) have a director, officer, or employee in common
427-11 with the incumbent local exchange company. (V.A.C.S. Art. 1446c-0,
427-12 Sec. 3.502(c).)
427-13 Sec. 62.074. REGULATION OF EXCHANGE COMPANY DEALINGS WITH
427-14 SEPARATE AFFILIATE. (a) This section applies only to an incumbent
427-15 local exchange company's separate corporate affiliate that provides
427-16 audio or video programming.
427-17 (b) An incumbent local exchange company may not:
427-18 (1) develop a rate for a telecommunications service or
427-19 provide a telecommunications service to benefit primarily the
427-20 company's separate affiliate for the affiliate's video or audio
427-21 programming unless the rate or service is available to any
427-22 purchaser without discrimination;
427-23 (2) provide a telecommunications service for the
427-24 separate affiliate's audio or video programming in an unreasonably
427-25 preferential manner;
427-26 (3) transfer an asset to the separate affiliate for
427-27 less than the amount for which the asset is available to a third
428-1 party in an arm's-length transaction;
428-2 (4) have a director, officer, or employee in common
428-3 with the separate affiliate;
428-4 (5) own property in common with the separate
428-5 affiliate; or
428-6 (6) enter into a customer-specific contract with the
428-7 separate affiliate to provide tariffed telecommunications services
428-8 unless substantially the same contract terms are generally
428-9 available to nonaffiliated interests.
428-10 (c) An incumbent local exchange company shall:
428-11 (1) maintain and file with the commission copies of
428-12 each contract or arrangement between the company and the separate
428-13 affiliate and report the contract amount for each cash or noncash
428-14 transaction with the separate affiliate, including payments for:
428-15 (A) the cost of a good, service, property right,
428-16 or other item; or
428-17 (B) interest expense;
428-18 (2) value an asset the company transfers to the
428-19 separate affiliate at the greater of the asset's net book value or
428-20 fair market value;
428-21 (3) value an asset the separate affiliate transfers to
428-22 the company at the lesser of the asset's net book value or fair
428-23 market value except in an instance in which Federal Communications
428-24 Commission regulations or commission rules permit:
428-25 (A) in-arrears payment for a tariffed
428-26 telecommunications service; or
428-27 (B) an affiliate to invest a dividend or profit
429-1 derived from an incumbent local exchange company;
429-2 (4) comply with applicable Federal Communications
429-3 Commission cost and other accounting rules; and
429-4 (5) if the company offers telecommunications equipment
429-5 or services to an audio or video programmer, provide the equipment
429-6 or services:
429-7 (A) at just and reasonable rates that, if
429-8 commission rules require the provision to be under a tariff, are
429-9 tariffed on nondiscriminatory terms; and
429-10 (B) on similar terms to all video or audio
429-11 programmers, if the equipment or services are not subject to
429-12 regulation. (V.A.C.S. Art. 1446c-0, Sec. 3.502(d).)
429-13 Sec. 62.075. BILLING OR COLLECTION SERVICES FOR
429-14 NONAFFILIATED PROGRAMMER. (a) An incumbent local exchange company
429-15 that offers billing or collection service to a nonaffiliated audio
429-16 or video programmer shall provide the service on nondiscriminatory
429-17 terms.
429-18 (b) This section does not require an incumbent local
429-19 exchange company to offer billing or collection service to a
429-20 nonaffiliated programmer.
429-21 (c) An incumbent local exchange company may exclude a class
429-22 of programmers from the company's billing or collection service.
429-23 (V.A.C.S. Art. 1446c-0, Sec. 3.502(e).)
429-24 Sec. 62.076. COMPLIANCE AUDIT. (a) An incumbent local
429-25 exchange company shall have a compliance audit performed every
429-26 three years to determine whether the incumbent local exchange
429-27 company, during the preceding three years, complied with the
430-1 requirements this subchapter imposes on the company.
430-2 (b) An independent accounting firm:
430-3 (1) must conduct the audit; and
430-4 (2) shall file the audit report with the commission.
430-5 (c) If the audit report concludes that the incumbent local
430-6 exchange company is not in compliance with this subchapter, the
430-7 commission shall take appropriate action against the company.
430-8 (d) The audit report is confidential commercial or financial
430-9 information for the purposes of Chapter 552, Government Code.
430-10 (V.A.C.S. Art. 1446c-0, Sec. 3.502(f).)
430-11 Sec. 62.077. WAIVER. (a) A company may petition the
430-12 commission for a waiver from a requirement this subchapter imposes
430-13 on the company.
430-14 (b) The commission shall grant the waiver if the waiver is
430-15 in the public interest, after considering whether there is a need
430-16 for the requirement in the affected market.
430-17 (c) The commission may revoke a waiver granted under this
430-18 section if:
430-19 (1) conditions under which the waiver was granted have
430-20 materially changed; and
430-21 (2) the revocation is in the public interest.
430-22 (V.A.C.S. Art. 1446c-0, Sec. 3.502(i).)
430-23 Sec. 62.078. LIMITATION OF JURISDICTION. Except as
430-24 otherwise specifically provided by this title, the commission's
430-25 jurisdiction over an incumbent local exchange company's affiliate
430-26 that is an audio or video programmer is limited to the specific
430-27 requirements of this subchapter. (V.A.C.S. Art. 1446c-0, Sec.
431-1 3.502(g).)
431-2 (Sections 62.079-62.100 reserved for expansion)
431-3 SUBCHAPTER E. VIDEO CARRIAGE
431-4 Sec. 62.101. APPLICABILITY OF SUBCHAPTER. This subchapter
431-5 does not apply to:
431-6 (1) an incumbent local exchange company that has
431-7 100,000 or fewer access lines in service in this state; or
431-8 (2) a programmer on the video dial tone platform of an
431-9 incumbent local exchange company described by Subdivision (1).
431-10 (V.A.C.S. Art. 1446c-0, Sec. 3.504(e).)
431-11 Sec. 62.102. RATE FOR BROADCAST STATION ACCESS TO
431-12 TELECOMMUNICATIONS SERVICES. Unless the company is a programmer
431-13 subject to Section 62.104, an incumbent local exchange company that
431-14 provides a telecommunications service used to transmit video
431-15 programming directly to a subscriber or used to enable a customer
431-16 to access video programming shall give a local full-power broadcast
431-17 station licensed by the Federal Communications Commission access to
431-18 the telecommunications service at a tariffed rate, to the extent
431-19 capacity permits. If the service is not provided under a tariff,
431-20 the company shall provide the service on terms similar to those on
431-21 which the service is provided to other video programmers that
431-22 provide similar programming. (V.A.C.S. Art. 1446c-0, Sec. 3.504(a)
431-23 (part).)
431-24 Sec. 62.103. DUTIES OF LOCAL EXCHANGE COMPANY. (a) An
431-25 incumbent local exchange company shall transmit without material
431-26 degradation the signals a local broadcast station delivers. The
431-27 transmission quality offered the station may not be less than the
432-1 quality made available to another video programmer.
432-2 (b) An incumbent local exchange company that provides a
432-3 telecommunications service used to transmit video programming
432-4 directly to a subscriber or used to enable a customer to access
432-5 video programming may not:
432-6 (1) discriminate unreasonably among programming
432-7 providers regarding transmission of their signals; or
432-8 (2) delete, change, or alter a copyright
432-9 identification transmitted as part of the programming signal.
432-10 (c) An incumbent local exchange company described by
432-11 Subsection (b) that provides a video dial tone service with a level
432-12 one gateway, as that term is defined by the Federal Communications
432-13 Commission, shall make available to programmers a menu or
432-14 programming guide on which a programmer may display a listing of
432-15 the stations the programmer is required to carry under Section
432-16 62.104. (V.A.C.S. Art. 1446c-0, Secs. 3.504(a) (part), (b).)
432-17 Sec. 62.104. BROADCAST STATION ACCESS THROUGH
432-18 TELECOMMUNICATIONS SERVICES. (a) As permitted by federal law and
432-19 Federal Communications Commission rules and orders, a programmer
432-20 shall make available to subscribers local full-power television
432-21 stations licensed by the Federal Communications Commission if:
432-22 (1) the programmer is operating as a common channel
432-23 manager;
432-24 (2) for a commercial purpose, the programmer purchases
432-25 50 or more analog channels on a local exchange video dial tone
432-26 level one platform over which video programming is made available
432-27 to subscribers; and
433-1 (3) the television stations grant retransmission
433-2 consent.
433-3 (b) The programmer shall make available up to six television
433-4 stations under this section. If the programmer is in a market that
433-5 contains a county with a population of more than one million, the
433-6 programmer shall make available up to nine television stations
433-7 under this section.
433-8 (c) The programmer shall select the television stations the
433-9 programmer makes available to subscribers under this section.
433-10 (d) This title does not require a programmer or incumbent
433-11 local exchange company to provide valuable consideration in
433-12 exchange for carriage under this section. (V.A.C.S. Art. 1446c-0,
433-13 Secs. 3.504(c), (d) (part).)
433-14 Sec. 62.105. RETRANSMISSION CONSENT. A television station
433-15 licensed by the Federal Communications Commission that seeks
433-16 carriage under Section 62.104 shall grant consent for programming
433-17 retransmission to the programmer and the incumbent local exchange
433-18 company. (V.A.C.S. Art. 1446c-0, Sec. 3.504(d) (part).)
433-19 Sec. 62.106. WAIVER. (a) A company may petition the
433-20 commission for a waiver from a requirement this subchapter imposes
433-21 on the company.
433-22 (b) The commission shall grant the waiver if the waiver is
433-23 in the public interest, after considering whether there is a need
433-24 for the requirement in the affected market.
433-25 (c) The commission may revoke a waiver granted under this
433-26 section if:
433-27 (1) conditions under which the waiver was granted have
434-1 materially changed; and
434-2 (2) the revocation is in the public interest.
434-3 (V.A.C.S. Art. 1446c-0, Sec. 3.504(f).)
434-4 Sec. 62.107. LIMITATION OF JURISDICTION. Except as
434-5 otherwise specifically provided by this title, the commission's
434-6 jurisdiction over an incumbent local exchange company's affiliate
434-7 that is a video programmer is limited to the specific requirements
434-8 of this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.504(g).)
434-9 Sec. 62.108. EXPIRATION. This subchapter expires August 31,
434-10 1999. (V.A.C.S. Art. 1446c-0, Sec. 3.504(h).)
434-11 (Sections 62.109-62.130 reserved for expansion)
434-12 SUBCHAPTER F. AUDIO CARRIAGE
434-13 Sec. 62.131. APPLICABILITY OF SUBCHAPTER. This subchapter
434-14 does not apply to:
434-15 (1) an incumbent local exchange company that has
434-16 100,000 or fewer access lines in service in this state; or
434-17 (2) a programmer on the video dial tone platform of an
434-18 incumbent local exchange company described by Subdivision (1).
434-19 (V.A.C.S. Art. 1446c-0, Sec. 3.505(c).)
434-20 Sec. 62.132. BROADCAST STATION ACCESS THROUGH
434-21 TELECOMMUNICATIONS SERVICES. (a) As permitted by federal law and
434-22 Federal Communications Commission rules and orders, and as
434-23 consistent with technical specifications, a programmer shall make
434-24 available to subscribers local radio stations licensed by the
434-25 Federal Communications Commission if:
434-26 (1) the programmer is operating as a common channel
434-27 manager;
435-1 (2) for a commercial purpose, the programmer makes 12
435-2 or more channels of audio programming available to subscribers on
435-3 an incumbent local exchange company's level one video dial tone
435-4 platform;
435-5 (3) the available audio programming is similar to a
435-6 broadcast of a radio station licensed by the Federal Communications
435-7 Commission; and
435-8 (4) the radio stations grant retransmission consent.
435-9 (b) The programmer is not required to make available more
435-10 than one-third of the programmer's analog audio channels to radio
435-11 stations.
435-12 (c) The programmer shall select the radio stations the
435-13 programmer makes available to subscribers under this section.
435-14 (d) This title does not require a programmer or incumbent
435-15 local exchange company to provide valuable consideration in
435-16 exchange for carriage under this section. (V.A.C.S. Art. 1446c-0,
435-17 Secs. 3.505(a), (b) (part).)
435-18 Sec. 62.133. RETRANSMISSION CONSENT. A local radio station
435-19 licensed by the Federal Communications Commission that seeks
435-20 carriage under Section 62.132 shall grant consent for programming
435-21 retransmission to the programmer and the incumbent local exchange
435-22 company. (V.A.C.S. Art. 1446c-0, Sec. 3.505(b) (part).)
435-23 Sec. 62.134. WAIVER. (a) A company may petition the
435-24 commission for a waiver from a requirement this subchapter imposes
435-25 on the company.
435-26 (b) The commission shall grant the waiver if the waiver is
435-27 in the public interest, after considering whether there is a need
436-1 for the requirement in the affected market.
436-2 (c) The commission may revoke a waiver granted under this
436-3 section if:
436-4 (1) conditions under which the waiver was granted have
436-5 materially changed; and
436-6 (2) the revocation is in the public interest.
436-7 (V.A.C.S. Art. 1446c-0, Sec. 3.505(d).)
436-8 Sec. 62.135. LIMITATION OF JURISDICTION. Except as
436-9 otherwise specifically provided by this title, the commission's
436-10 jurisdiction over an incumbent local exchange company's affiliate
436-11 that is an audio programmer is limited to the specific requirements
436-12 of this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 3.505(e).)
436-13 Sec. 62.136. EXPIRATION. This subchapter expires August 31,
436-14 1999. (V.A.C.S. Art. 1446c-0, Sec. 3.505(f).)
436-15 CHAPTER 63. ELECTRONIC PUBLISHING
436-16 SUBCHAPTER A. GENERAL PROVISIONS
436-17 Sec. 63.001. GENERAL DEFINITIONS
436-18 Sec. 63.002. ELECTRONIC PUBLISHING DEFINED
436-19 Sec. 63.003. INCUMBENT LOCAL EXCHANGE COMPANY DEFINED
436-20 Sec. 63.004. CERTAIN SERVICES NOT PROHIBITED
436-21 Sec. 63.005. INVESTMENT OF DIVIDENDS
436-22 Sec. 63.006. JOINT VIOLATIONS
436-23 Sec. 63.007. PRIVATE COMPLAINT; APPLICATION FOR ORDER
436-24 Sec. 63.008. PRIVATE SUIT FOR INJUNCTION
436-25 Sec. 63.009. PRIVATE SUIT FOR DAMAGES
436-26 Sec. 63.010. APPLICABILITY OF ANTITRUST LAWS
436-27 Sec. 63.011. APPLICABILITY OF CHAPTER
437-1 (Sections 63.012-63.030 reserved for expansion)
437-2 SUBCHAPTER B. ELECTRONIC PUBLISHING SAFEGUARDS
437-3 Sec. 63.031. PUBLICATION BY BASIC TELEPHONE SERVICE
437-4 PROHIBITED
437-5 Sec. 63.032. SEPARATED AFFILIATE OR JOINT VENTURE
437-6 REQUIREMENTS
437-7 Sec. 63.033. INCUMBENT LOCAL EXCHANGE COMPANY
437-8 REQUIREMENTS
437-9 Sec. 63.034. COMPLIANCE REVIEW AND REPORT
437-10 Sec. 63.035. SERVICES TO ELECTRONIC PUBLISHER
437-11 Sec. 63.036. INFORMATION PROVIDED
437-12 Sec. 63.037. CUSTOMER PROPRIETARY NETWORK INFORMATION
437-13 Sec. 63.038. PROHIBITED JOINT ACTIVITIES
437-14 Sec. 63.039. PERMITTED JOINT MARKETING OR REFERRAL
437-15 ACTIVITIES
437-16 Sec. 63.040. ELECTRONIC PUBLISHING TEAMING OR BUSINESS
437-17 ARRANGEMENTS
437-18 Sec. 63.041. JOINT VENTURE PARTICIPATION
437-19 Sec. 63.042. OTHER ELECTRONIC PUBLISHERS
437-20 (Sections 63.043-63.060 reserved for expansion)
437-21 SUBCHAPTER C. ELECTRONIC PUBLISHING TRANSACTIONS
437-22 Sec. 63.061. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN INCUMBENT
437-23 LOCAL EXCHANGE COMPANY AND AFFILIATE
437-24 GENERALLY
437-25 Sec. 63.062. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN INCUMBENT
437-26 LOCAL EXCHANGE COMPANY AND SEPARATED
437-27 AFFILIATE
438-1 Sec. 63.063. EXCEPTION
438-2 CHAPTER 63. ELECTRONIC PUBLISHING
438-3 SUBCHAPTER A. GENERAL PROVISIONS
438-4 Sec. 63.001. GENERAL DEFINITIONS. In this chapter:
438-5 (1) "Affiliate" means an entity, other than a
438-6 separated affiliate, that, directly or indirectly, is:
438-7 (A) under common ownership or control with an
438-8 incumbent local exchange company;
438-9 (B) owned or controlled by an incumbent local
438-10 exchange company; or
438-11 (C) the owner or in control of an incumbent
438-12 local exchange company.
438-13 (2) "Basic telephone service" means a wireline
438-14 telephone exchange facility or service provided by an incumbent
438-15 local exchange company in a telephone exchange area, other than a:
438-16 (A) competitive wireline telephone exchange
438-17 service provided in a telephone exchange area in which another
438-18 entity provides a wireline telephone exchange service that was
438-19 provided on January 1, 1984; or
438-20 (B) commercial mobile service provided by an
438-21 affiliate that the Federal Communications Commission requires to be
438-22 a corporate entity separate from the local exchange company.
438-23 (3) "Basic telephone service information" means:
438-24 (A) an incumbent local exchange company's
438-25 network or customer information; and
438-26 (B) information acquired by an incumbent local
438-27 exchange company as a result of its provision of basic telephone
439-1 service.
439-2 (4) "Control" has the meaning assigned by:
439-3 (A) 17 C.F.R. Section 240.12b--2 as adopted by
439-4 the Securities and Exchange Commission under the Securities
439-5 Exchange Act of 1934 (15 U.S.C. Section 78a et seq.); or
439-6 (B) a successor to that section.
439-7 (5) "Electronic publishing joint venture" means a
439-8 joint venture owned by an incumbent local exchange company or
439-9 affiliate that provides electronic publishing disseminated by the
439-10 basic telephone service of:
439-11 (A) the incumbent local exchange company; or
439-12 (B) an affiliate of the incumbent local exchange
439-13 company.
439-14 (6) "Entity" means an organization and includes a
439-15 corporation, partnership, sole proprietorship, association, or
439-16 joint venture.
439-17 (7) "Inbound telemarketing" means marketing property,
439-18 goods, or services by telephone to a customer or potential customer
439-19 who initiates the call.
439-20 (8) "Modification of final judgment" means the order
439-21 entered August 24, 1982, in the antitrust action styled United
439-22 States v. Western Electric, Civil Action No. 82-0192, in the United
439-23 States District Court for the District of Columbia, and includes
439-24 any judgment or order with respect to that action issued on or
439-25 after August 24, 1982.
439-26 (9) "Own" means to have the:
439-27 (A) equivalent of a direct or indirect equity
440-1 interest of more than 10 percent of an entity; or
440-2 (B) right to more than 10 percent of the gross
440-3 revenues of an entity under a revenue sharing or royalty agreement.
440-4 (10) "Separated affiliate" means a corporation that:
440-5 (A) does not own or control an incumbent local
440-6 exchange company;
440-7 (B) is not owned or controlled by an incumbent
440-8 local exchange company; and
440-9 (C) is under common ownership or control with an
440-10 incumbent local exchange company and provides electronic publishing
440-11 that is disseminated by the basic telephone service of:
440-12 (i) the incumbent local exchange company;
440-13 or
440-14 (ii) an affiliate of the incumbent local
440-15 exchange company. (V.A.C.S. Art. 1446c-0, Secs. 3.551(1), (2),
440-16 (3), (4), (6), (7), (8), (9), (10); New.)
440-17 Sec. 63.002. ELECTRONIC PUBLISHING DEFINED. (a) In this
440-18 chapter, "electronic publishing" means the use of an incumbent
440-19 local exchange company's basic telephone service to disseminate,
440-20 provide, publish, or sell to a nonaffiliated entity or person:
440-21 (1) news;
440-22 (2) entertainment other than an interactive game;
440-23 (3) business, financial, legal, consumer, or credit
440-24 material;
440-25 (4) an editorial;
440-26 (5) a column;
440-27 (6) sports reporting;
441-1 (7) a feature;
441-2 (8) advertising;
441-3 (9) a photograph or image;
441-4 (10) archival or research material;
441-5 (11) a legal notice or public record;
441-6 (12) scientific, educational, instructional,
441-7 technical, professional, trade, or other literary material; or
441-8 (13) other similar information.
441-9 (b) In this chapter, "electronic publishing" does not
441-10 include providing the following network services:
441-11 (1) information access, as that term is defined by the
441-12 modification of final judgment;
441-13 (2) transmission of information as a common carrier;
441-14 (3) transmission of information as part of a gateway
441-15 to an information service that does not involve the generation or
441-16 alteration of the content of information, including data
441-17 transmission, address translation, protocol conversion, billing
441-18 management, introductory information content, or navigational
441-19 systems that enable users to access electronic publishing services
441-20 and that do not affect the presentation of those electronic
441-21 publishing services to users;
441-22 (4) a voice storage and retrieval service, including
441-23 voice messaging and electronic mail service;
441-24 (5) level two gateway services as those services are
441-25 defined by the Federal Communications Commission's Second Report
441-26 and Order, Recommendation to Congress and Second Further Notice of
441-27 Proposed Rulemaking in CC Docket No. 87-266 dated August 14, 1992
442-1 (7 FCC Record 5781 (1992));
442-2 (6) a data processing service that does not involve
442-3 the generation or alteration of the content of information;
442-4 (7) a transaction processing system that does not
442-5 involve the generation or alteration of the content of information;
442-6 (8) electronic billing or advertising of a regulated
442-7 telecommunications service of an incumbent local exchange company;
442-8 (9) language translation;
442-9 (10) conversion of information from one format to
442-10 another;
442-11 (11) information necessary for the management,
442-12 control, or operation of a telephone company telecommunications
442-13 system;
442-14 (12) directory assistance that:
442-15 (A) provides names, addresses, and telephone
442-16 numbers; and
442-17 (B) does not include advertising;
442-18 (13) a caller identification service;
442-19 (14) repairing and provisioning a database for a
442-20 telephone company operation;
442-21 (15) credit card and billing validation for a
442-22 telephone company operation;
442-23 (16) a 911-E or another emergency assistance database;
442-24 (17) another network service of a type that:
442-25 (A) is similar to the network services listed in
442-26 this subsection; and
442-27 (B) does not involve the generation or
443-1 alteration of the content of information;
443-2 (18) an upgrade to a network service listed in this
443-3 subsection that does not involve the generation or alteration of
443-4 the content of information;
443-5 (19) full motion video entertainment on demand; or
443-6 (20) video programming, as defined by Section 602,
443-7 Communications Act of 1934 (47 U.S.C. Section 522). (V.A.C.S.
443-8 Art. 1446c-0, Sec. 3.551(5).)
443-9 Sec. 63.003. INCUMBENT LOCAL EXCHANGE COMPANY DEFINED.
443-10 (a) Except as provided by Subsection (b), in this chapter,
443-11 "incumbent local exchange company" means:
443-12 (1) a corporation that:
443-13 (A) serves more than five million access lines
443-14 in this state; and
443-15 (B) is subject to the modification of final
443-16 judgment;
443-17 (2) an entity owned or controlled by a corporation
443-18 described by Subdivision (1); or
443-19 (3) a successor or assign of a corporation described
443-20 by Subdivision (1).
443-21 (b) In this chapter "incumbent local exchange company" does
443-22 not include an electronic publishing joint venture that is:
443-23 (1) owned by a corporation or entity described by
443-24 Subsection (a); and
443-25 (2) permitted by Section 63.039, 63.040, or 63.041.
443-26 (V.A.C.S. Art. 1446c-0, Sec. 3.551(11).)
443-27 Sec. 63.004. CERTAIN SERVICES NOT PROHIBITED. This chapter
444-1 does not prohibit:
444-2 (1) a separated affiliate or electronic publishing
444-3 joint venture from providing in any area electronic publishing or
444-4 another service; or
444-5 (2) an incumbent local exchange company or affiliate
444-6 from providing:
444-7 (A) a service other than electronic publishing
444-8 in any area; or
444-9 (B) electronic publishing that is not
444-10 disseminated by the basic telephone service of:
444-11 (i) the company; or
444-12 (ii) an affiliate of the company.
444-13 (V.A.C.S. Art. 1446c-0, Secs. 3.552(b), (c).)
444-14 Sec. 63.005. INVESTMENT OF DIVIDENDS. This chapter does not
444-15 prohibit an affiliate from investing a dividend derived from an
444-16 incumbent local exchange company in its separated affiliate.
444-17 (V.A.C.S. Art. 1446c-0, Sec. 3.557 (part).)
444-18 Sec. 63.006. JOINT VIOLATIONS. An incumbent local exchange
444-19 company, an affiliate, or a separated affiliate may not act jointly
444-20 with another entity to knowingly and wilfully violate or evade a
444-21 requirement of this chapter. (V.A.C.S. Art. 1446c-0, Sec. 3.556.)
444-22 Sec. 63.007. PRIVATE COMPLAINT; APPLICATION FOR ORDER. (a)
444-23 A person may file with the commission a complaint that an act or
444-24 practice of an incumbent local exchange company, affiliate, or
444-25 separated affiliate violates this chapter.
444-26 (b) A person may apply to the commission for the commission
444-27 to order an incumbent local exchange company, affiliate, or
445-1 separated affiliate to cease and desist from an act or practice
445-2 that violates this chapter. (V.A.C.S. Art. 1446c-0, Secs.
445-3 3.563(a) (part), (b) (part).)
445-4 Sec. 63.008. PRIVATE SUIT FOR INJUNCTION. A person may
445-5 bring suit in district court for an injunction to compel an
445-6 incumbent local exchange company, affiliate, or separated affiliate
445-7 to discontinue a violation of this chapter or to comply with a
445-8 requirement of this chapter. (V.A.C.S. Art. 1446c-0, Sec. 3.563(b)
445-9 (part).)
445-10 Sec. 63.009. PRIVATE SUIT FOR DAMAGES. (a) A person may
445-11 bring suit to recover damages that result from a violation of this
445-12 chapter.
445-13 (b) An incumbent local exchange company, affiliate, or
445-14 separated affiliate is liable for damages if the incumbent local
445-15 exchange company violates this chapter or causes a violation of
445-16 this chapter.
445-17 (c) The incumbent local exchange company is liable to a
445-18 person injured by a violation of this chapter caused by the company
445-19 for:
445-20 (1) the amount of the damages that result from the
445-21 violation; and
445-22 (2) reasonable attorney's fees.
445-23 (d) The court shall determine and award attorney's fees in
445-24 each case in which damages are awarded. The attorney's fees shall
445-25 be taxed and collected as part of the costs of the suit.
445-26 (e) The court may not award damages for a violation:
445-27 (1) discovered by a compliance review under Section
446-1 63.034; and
446-2 (2) corrected before the 91st day after the date of
446-3 its discovery. (V.A.C.S. Art. 1446c-0, Sec. 3.563(a) (part).)
446-4 Sec. 63.010. APPLICABILITY OF ANTITRUST LAWS. This chapter
446-5 does not modify, impair, or supersede the applicability of
446-6 antitrust laws. (V.A.C.S. Art. 1446c-0, Sec. 3.564.)
446-7 Sec. 63.011. APPLICABILITY OF CHAPTER. This chapter does
446-8 not apply to conduct that occurs after June 30, 2001. (V.A.C.S.
446-9 Art. 1446c-0, Sec. 3.566.)
446-10 (Sections 63.012-63.030 reserved for expansion)
446-11 SUBCHAPTER B. ELECTRONIC PUBLISHING SAFEGUARDS
446-12 Sec. 63.031. PUBLICATION BY BASIC TELEPHONE SERVICE
446-13 PROHIBITED. An incumbent local exchange company or affiliate may
446-14 not provide electronic publishing disseminated by the basic
446-15 telephone service of:
446-16 (1) the incumbent local exchange company; or
446-17 (2) an affiliate of the incumbent local exchange
446-18 company. (V.A.C.S. Art. 1446c-0, Sec. 3.552(a).)
446-19 Sec. 63.032. SEPARATED AFFILIATE OR JOINT VENTURE
446-20 REQUIREMENTS. (a) A separated affiliate or electronic publishing
446-21 joint venture shall maintain books, records, and accounts that:
446-22 (1) are separate from the books, records, and accounts
446-23 of the incumbent local exchange company and any affiliate; and
446-24 (2) record, in accordance with generally accepted
446-25 accounting principles, all direct and indirect transactions with
446-26 the incumbent local exchange company.
446-27 (b) A separated affiliate or electronic publishing joint
447-1 venture shall prepare financial statements that are not
447-2 consolidated with the financial statements of the incumbent local
447-3 exchange company or an affiliate. Additional consolidated
447-4 statements may be prepared.
447-5 (c) A separated affiliate or electronic publishing joint
447-6 venture shall file annual reports with the commission. The reports
447-7 must be in a form substantially equivalent to the Form 10-K
447-8 required by federal Securities and Exchange Commission regulations.
447-9 (d) A separated affiliate or electronic publishing joint
447-10 venture may not hire:
447-11 (1) as a corporate officer, a sales or marketing
447-12 manager whose responsibilities at the separated affiliate or
447-13 electronic publishing joint venture include a geographic area in
447-14 which the incumbent local exchange company provides basic telephone
447-15 service;
447-16 (2) network operations personnel whose
447-17 responsibilities at the separated affiliate or electronic
447-18 publishing joint venture require dealing directly with the
447-19 incumbent local exchange company; or
447-20 (3) a person who was employed by the incumbent local
447-21 exchange company during the year preceding the date of hire.
447-22 (e) Subsection (d)(3) does not apply to a person who is
447-23 subject to a collective bargaining agreement under which the person
447-24 has a right to be employed by a separated affiliate or electronic
447-25 publishing joint venture of the local exchange company.
447-26 (f) A separated affiliate or electronic publishing joint
447-27 venture may not:
448-1 (1) incur debt in a manner that, on default, would
448-2 permit a creditor to have recourse against an asset of the
448-3 incumbent local exchange company;
448-4 (2) provide a wireline telephone exchange service in a
448-5 telephone exchange area in which an incumbent local exchange
448-6 company with which it is under common ownership or control provides
448-7 basic telephone exchange service, unless the service is provided by
448-8 resale; or
448-9 (3) use a name, trademark, or service mark of an
448-10 incumbent local exchange company unless the name, trademark, or
448-11 service mark is used in common with the entity that owns or
448-12 controls the incumbent local exchange company. (V.A.C.S.
448-13 Art. 1446c-0, Sec. 3.553 (part).)
448-14 Sec. 63.033. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS.
448-15 (a) This section applies only to an incumbent local exchange
448-16 company that is under common ownership or control with a separated
448-17 affiliate or electronic publishing joint venture.
448-18 (b) An incumbent local exchange company shall:
448-19 (1) carry out each transaction with a separated
448-20 affiliate in a manner:
448-21 (A) equivalent to the manner that unrelated
448-22 parties would carry out an independent transaction; and
448-23 (B) able to be audited in accordance with
448-24 generally accepted auditing standards;
448-25 (2) carry out a transaction with a separated affiliate
448-26 that involves the transfer of personnel, assets, or anything of
448-27 value, in accordance with a written contract or tariff that is
449-1 filed with the commission and made available to the public;
449-2 (3) value an asset the company transfers to a
449-3 separated affiliate at the greater of the asset's net book cost or
449-4 fair market value;
449-5 (4) value an asset the company's separated affiliate
449-6 transfers to the company at the lesser of the asset's net book cost
449-7 or fair market value; and
449-8 (5) comply fully with applicable accounting rules of
449-9 the Federal Communications Commission and the commission, including
449-10 rules on cost allocation.
449-11 (c) An incumbent local exchange company may not directly or
449-12 indirectly provide anything of monetary value to a separated
449-13 affiliate unless the item is provided in exchange for consideration
449-14 valued in an amount at least equal to the greater of the item's net
449-15 book cost or fair market value. This subsection does not apply to
449-16 an affiliate's investment of a dividend or profit derived from an
449-17 incumbent local exchange company.
449-18 (d) An incumbent local exchange company may not:
449-19 (1) provide a separated affiliate a facility, a
449-20 service, or basic telephone service information unless the company
449-21 makes the facility, service, or information available to
449-22 nonaffiliated entities on request and on the same terms;
449-23 (2) provide debt or equity financing directly or
449-24 indirectly to a separated affiliate, except in an instance in which
449-25 Federal Communications Commission regulations or commission rules
449-26 permit:
449-27 (A) in-arrears payment for a tariffed
450-1 telecommunications service; or
450-2 (B) an affiliate to invest a dividend or profit
450-3 derived from an incumbent local exchange company;
450-4 (3) discriminate in the presentation or provision of a
450-5 gateway for electronic publishing services or an electronic
450-6 directory of information services that is provided over the
450-7 company's basic telephone service;
450-8 (4) have a director, officer, or employee in common
450-9 with a separated affiliate;
450-10 (5) own property in common with a separated affiliate;
450-11 (6) hire or train personnel for a separated affiliate;
450-12 (7) purchase, install, or maintain equipment for a
450-13 separated affiliate, except for telephone service that the company
450-14 provides under tariff or contract subject to this chapter; or
450-15 (8) perform a research or development activity for a
450-16 separated affiliate. (V.A.C.S. Art. 1446c-0, Secs. 3.554(a)
450-17 (part), (g), (h).)
450-18 Sec. 63.034. COMPLIANCE REVIEW AND REPORT. (a) A separated
450-19 affiliate or an electronic publishing joint venture annually shall
450-20 have a compliance review performed to determine whether the
450-21 separated affiliate or joint venture, during the preceding calendar
450-22 year, complied with the requirements this chapter imposes on the
450-23 separated affiliate or joint venture.
450-24 (b) An incumbent local exchange company that is under common
450-25 ownership or control with a separated affiliate or electronic
450-26 publishing joint venture annually shall have a compliance review
450-27 performed to determine whether the company, during the preceding
451-1 calendar year, complied with the requirements this chapter imposes
451-2 on the company.
451-3 (c) An independent entity that is subject to professional,
451-4 legal, and ethical obligations must conduct the compliance review.
451-5 (d) The compliance review must be performed each year
451-6 before:
451-7 (1) March 31; or
451-8 (2) another date prescribed by the commission.
451-9 (e) An entity subject to a compliance review under
451-10 Subsection (a) or (b) shall maintain the results of the entity's
451-11 compliance review for five years subject to review by a lawful
451-12 authority.
451-13 (f) Before the 91st day after the date an entity subject to
451-14 a compliance review under Subsection (a) or (b) receives the
451-15 results of a compliance review under this section, the entity
451-16 shall:
451-17 (1) file with the commission a report of any
451-18 exceptions or corrective actions; and
451-19 (2) allow any person to inspect and copy the report.
451-20 (g) The right of a person to inspect and copy the report is
451-21 subject to reasonable safeguards to protect proprietary information
451-22 in the report from being used for a purpose other than to enforce
451-23 this chapter or to pursue a remedy under this chapter. (V.A.C.S.
451-24 Art. 1446c-0, Secs. 3.553 (part), 3.554(a) (part).)
451-25 Sec. 63.035. SERVICES TO ELECTRONIC PUBLISHER. (a) This
451-26 section applies only to an incumbent local exchange company that is
451-27 under common ownership and control with a separated affiliate or an
452-1 electronic publishing joint venture.
452-2 (b) If the incumbent local exchange company provides a
452-3 facility or service for telecommunication, transmission, billing
452-4 and collection, or expanded interconnection to an electronic
452-5 publisher, including a separated affiliate, for use in connection
452-6 with the provision of electronic publishing disseminated by the
452-7 basic telephone service of the incumbent local exchange company or
452-8 an affiliate of the incumbent local exchange company, the incumbent
452-9 local exchange company shall provide to any electronic publisher on
452-10 request the same type of facility or service. The facility or
452-11 service must be:
452-12 (1) provided on the same terms as provided to another
452-13 electronic publisher or as required by the Federal Communications
452-14 Commission or the commission; and
452-15 (2) unbundled and individually tariffed to the
452-16 smallest extent technically feasible and economically reasonable.
452-17 (c) The incumbent local exchange company shall provide
452-18 network access and interconnection for basic telephone service to
452-19 an electronic publisher:
452-20 (1) at any technically feasible and economically
452-21 reasonable point in the incumbent local exchange company's network;
452-22 and
452-23 (2) at a just and reasonable rate that:
452-24 (A) is tariffed if rates for the service are
452-25 subject to regulation; and
452-26 (B) is not higher on a per unit basis than the
452-27 rate charged for the service to another electronic publisher or a
453-1 separated affiliate engaged in electronic publishing.
453-2 (d) If the price for network access or interconnection for
453-3 basic telephone service is not subject to regulation, the incumbent
453-4 local exchange company shall provide the service to an electronic
453-5 publisher on the same terms under which a separated affiliate
453-6 receives the service.
453-7 (e) If a tariff is not required for a basic telephone
453-8 service used by an electronic publisher, the incumbent local
453-9 exchange company shall provide an electronic publisher with the
453-10 service on the same terms under which a separated affiliate
453-11 receives the service. (V.A.C.S. Art. 1446c-0, Secs. 3.554(b), (c),
453-12 (d), (e).)
453-13 Sec. 63.036. INFORMATION PROVIDED. (a) An incumbent local
453-14 exchange company under common ownership or control with a separated
453-15 affiliate or an electronic publishing joint venture shall give to
453-16 each affected electronic publisher reasonable advance notification
453-17 of information that:
453-18 (1) is necessary for an interconnected electronic
453-19 publisher to transmit or route information;
453-20 (2) is necessary to ensure the interoperability of an
453-21 electronic publisher's network with the exchange company's network;
453-22 or
453-23 (3) relates to a change in basic telephone service
453-24 network design or a technical standard that may affect the
453-25 provision of electronic publishing.
453-26 (b) The notification must be given to each electronic
453-27 publisher at the same time and on the same terms. (V.A.C.S.
454-1 Art. 1446c-0, Sec. 3.554(f).)
454-2 Sec. 63.037. CUSTOMER PROPRIETARY NETWORK INFORMATION. In
454-3 accordance with Subchapter B, Chapter 62, an incumbent local
454-4 exchange company or an affiliate may not provide an electronic
454-5 publisher, including a separated affiliate or electronic publishing
454-6 joint venture, with customer proprietary network information for
454-7 use with or in connection with providing electronic publishing
454-8 disseminated by the basic telephone service of the incumbent local
454-9 exchange company or an affiliate of the incumbent local exchange
454-10 company unless the exchange company or affiliate makes the
454-11 information available to all electronic publishers on the same
454-12 terms. (V.A.C.S. Art. 1446c-0, Sec. 3.555.)
454-13 Sec. 63.038. PROHIBITED JOINT ACTIVITIES. Except as
454-14 provided by Sections 63.039-63.041, an incumbent local exchange
454-15 company may not engage in any:
454-16 (1) promotion, marketing, sales, or advertising for or
454-17 with a separated affiliate; or
454-18 (2) promotion, marketing, sales, or advertising for or
454-19 with an affiliate if the activity is related to electronic
454-20 publishing. (V.A.C.S. Art. 1446c-0, Sec. 3.558.)
454-21 Sec. 63.039. PERMITTED JOINT MARKETING OR REFERRAL
454-22 ACTIVITIES. (a) An incumbent local exchange company may provide
454-23 an inbound telemarketing or referral service related to the
454-24 provision of electronic publishing for:
454-25 (1) a separated affiliate;
454-26 (2) an electronic publishing joint venture;
454-27 (3) an affiliate; or
455-1 (4) a nonaffiliated electronic publisher.
455-2 (b) To ensure that the company's method of providing the
455-3 service or the company's price structure does not competitively
455-4 disadvantage an electronic publisher, regardless of the publisher's
455-5 size or whether the publisher uses a telemarketing service of the
455-6 company, an incumbent local exchange company that provides an
455-7 inbound telemarketing or referral service to a separated affiliate,
455-8 electronic publishing joint venture, or affiliate shall make the
455-9 service available to all electronic publishers:
455-10 (1) on request;
455-11 (2) on nondiscriminatory terms;
455-12 (3) at compensatory prices; and
455-13 (4) subject to rules of the commission. (V.A.C.S.
455-14 Art. 1446c-0, Sec. 3.559(a).)
455-15 Sec. 63.040. ELECTRONIC PUBLISHING TEAMING OR BUSINESS
455-16 ARRANGEMENTS. (a) An incumbent local exchange company may engage
455-17 in a nondiscriminatory teaming or business arrangement to engage in
455-18 electronic publishing with a separated affiliate or with another
455-19 electronic publisher.
455-20 (b) An incumbent local exchange company engaged in a teaming
455-21 or business arrangement under Subsection (a) may not own the
455-22 teaming or business arrangement.
455-23 (c) An incumbent local exchange company engaged in a teaming
455-24 or business arrangement under Subsection (a) may provide only
455-25 facilities, services, and basic telephone service information
455-26 authorized by this chapter. (V.A.C.S. Art. 1446c-0, Sec.
455-27 3.559(b).)
456-1 Sec. 63.041. JOINT VENTURE PARTICIPATION. (a) Except as
456-2 provided by Subsection (b), an incumbent local exchange company or
456-3 affiliate may participate on a nonexclusive basis in an electronic
456-4 publishing joint venture to provide electronic publishing services
456-5 with an entity that is not:
456-6 (1) an incumbent local exchange company;
456-7 (2) an affiliate; or
456-8 (3) a separated affiliate.
456-9 (b) An incumbent local exchange company or affiliate may not
456-10 participate in an electronic publishing joint venture if the
456-11 company or affiliate has:
456-12 (1) a direct or indirect equity interest in the
456-13 venture, or the equivalent, of more than 50 percent; or
456-14 (2) the right to more than 50 percent of the gross
456-15 revenues of the venture under a revenue sharing or royalty
456-16 agreement.
456-17 (c) Officers and employees of an incumbent local exchange
456-18 company or affiliate that participates in an electronic publishing
456-19 joint venture may not have more than 50 percent of the voting
456-20 control over the venture.
456-21 (d) The commission for good cause shown may authorize an
456-22 incumbent local exchange company or affiliate to have a larger
456-23 percentage of equity interest, revenue share, or voting control
456-24 than that prescribed by Subsection (b) or (c) for a joint venture
456-25 between the company and a small, local, electronic publisher. The
456-26 larger percentage may not exceed 80 percent.
456-27 (e) An incumbent local exchange company that participates in
457-1 an electronic publishing joint venture may provide promotion,
457-2 marketing, sales, or advertising personnel or services to the joint
457-3 venture. (V.A.C.S. Art. 1446c-0, Sec. 3.559(c).)
457-4 Sec. 63.042. OTHER ELECTRONIC PUBLISHERS. (a) Except as
457-5 provided by Section 63.041:
457-6 (1) an incumbent local exchange company may not have
457-7 an officer, employee, property, or facility in common with an
457-8 entity whose principal business is publishing if the business
457-9 includes electronic publishing; and
457-10 (2) an officer or employee of an incumbent local
457-11 exchange company may not serve as a director of an entity whose
457-12 principal business is publishing if the business includes
457-13 electronic publishing.
457-14 (b) For the purposes of Subsection (a), an incumbent local
457-15 exchange company or affiliate that owns an electronic publishing
457-16 joint venture is not considered engaged in the electronic
457-17 publishing business solely because of that ownership.
457-18 (c) Except as provided by Section 63.041, an incumbent local
457-19 exchange company may not:
457-20 (1) market or sell for an entity that engages in
457-21 electronic publishing;
457-22 (2) provide a facility, service, or basic telephone
457-23 service information to an entity that engages in electronic
457-24 publishing, for use with or in connection with the provision of
457-25 electronic publishing that is disseminated by the basic telephone
457-26 service of the incumbent local exchange company or an affiliate of
457-27 the incumbent local exchange company, unless an equivalent
458-1 facility, service, or information is made available on equivalent
458-2 terms to all other entities; or
458-3 (3) hire personnel, purchase, or carry out production
458-4 for an entity that engages in electronic publishing. (V.A.C.S.
458-5 Art. 1446c-0, Sec. 3.562.)
458-6 (Sections 63.043-63.060 reserved for expansion)
458-7 SUBCHAPTER C. ELECTRONIC PUBLISHING TRANSACTIONS
458-8 Sec. 63.061. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN
458-9 INCUMBENT LOCAL EXCHANGE COMPANY AND AFFILIATE GENERALLY. (a) If
458-10 related to the provision of electronic publishing, the provision of
458-11 a facility, a service, or basic telephone service information by an
458-12 incumbent local exchange company to an affiliate or the transfer of
458-13 an asset, including personnel or something of commercial or
458-14 competitive value, from an incumbent local exchange company to an
458-15 affiliate shall be:
458-16 (1) recorded in the books and records of the incumbent
458-17 local exchange company and the affiliate;
458-18 (2) able to be audited in accordance with generally
458-19 accepted auditing standards; and
458-20 (3) done in accordance with a written contract or
458-21 tariff filed with the commission.
458-22 (b) A transfer of an asset directly related to the provision
458-23 of electronic publishing from an incumbent local exchange company
458-24 to an affiliate shall be valued at the greater of the asset's net
458-25 book cost or fair market value.
458-26 (c) A transfer of an asset related to the provision of
458-27 electronic publishing from an affiliate to the incumbent local
459-1 exchange company shall be valued at the lesser of the asset's net
459-2 book cost or fair market value.
459-3 (d) An incumbent local exchange company may not directly or
459-4 indirectly provide to a separated affiliate a facility, a service,
459-5 or basic telephone service information related to the provision of
459-6 electronic publishing unless the facility, service, or information
459-7 is made available to nonaffiliated companies on the same terms.
459-8 (V.A.C.S. Art. 1446c-0, Sec. 3.560.)
459-9 Sec. 63.062. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN
459-10 INCUMBENT LOCAL EXCHANGE COMPANY AND SEPARATED AFFILIATE. (a) If
459-11 an incumbent local exchange company provides to an affiliate a
459-12 facility, a service, or basic telephone service information subject
459-13 to Section 63.061(a) or transfers to an affiliate an asset subject
459-14 to that section and the affiliate provides the facility, service,
459-15 or information to a separated affiliate or transfers the asset to a
459-16 separated affiliate, the transaction shall be:
459-17 (1) recorded in the books and records of each entity;
459-18 (2) able to be audited in accordance with generally
459-19 accepted auditing standards; and
459-20 (3) done in accordance with a written contract or
459-21 tariff filed with the commission.
459-22 (b) A transfer of an asset directly related to the provision
459-23 of electronic publishing from an incumbent local exchange company
459-24 to an affiliate as described by Section 63.061 and then transferred
459-25 to a separated affiliate shall be valued at the greater of the
459-26 asset's net book cost or fair market value.
459-27 (c) A transfer of an asset related to the provision of
460-1 electronic publishing from a separated affiliate to an affiliate
460-2 and then transferred to the incumbent local exchange company as
460-3 described by Section 63.061 shall be valued at the lesser of the
460-4 asset's net book cost or fair market value.
460-5 (d) An affiliate may not provide directly or indirectly to a
460-6 separated affiliate a facility, a service, or basic telephone
460-7 service information related to the provision of electronic
460-8 publishing unless the facility, service, or information is made
460-9 available to nonaffiliated companies on the same terms. (V.A.C.S.
460-10 Art. 1446c-0, Sec. 3.561.)
460-11 Sec. 63.063. EXCEPTION. This subchapter does not apply to
460-12 an investment described by Section 63.005. (V.A.C.S. Art. 1446c-0,
460-13 Sec. 3.557 (part).)
460-14 (Chapters 64-100 reserved for expansion)
460-15 TITLE 3. GAS REGULATION
460-16 SUBTITLE A. GAS UTILITY REGULATORY ACT
460-17 CHAPTER 101. GENERAL PROVISIONS AND OFFICE OF
460-18 PUBLIC UTILITY COUNSEL
460-19 SUBCHAPTER A. GENERAL PROVISIONS
460-20 Sec. 101.001. SHORT TITLE
460-21 Sec. 101.002. PURPOSE AND FINDINGS
460-22 Sec. 101.003. DEFINITIONS
460-23 Sec. 101.004. PERSON DETERMINED TO BE AFFILIATE
460-24 Sec. 101.005. ADMINISTRATIVE PROCEDURE
460-25 Sec. 101.006. CUMULATIVE EFFECT; APPLICATION TO GAS
460-26 UTILITIES
460-27 Sec. 101.007. LIBERAL CONSTRUCTION
461-1 Sec. 101.008. CONSTRUCTION WITH FEDERAL AUTHORITY
461-2 (Sections 101.009-101.050 reserved for expansion)
461-3 SUBCHAPTER B. OFFICE OF PUBLIC UTILITY COUNSEL
461-4 Sec. 101.051. OFFICE OF PUBLIC UTILITY COUNSEL
461-5 Sec. 101.052. OFFICE POWERS AND DUTIES
461-6 Sec. 101.053. PROHIBITED ACTS
461-7 Sec. 101.054. PERSONNEL
461-8 CHAPTER 101. GENERAL PROVISIONS AND OFFICE OF
461-9 PUBLIC UTILITY COUNSEL
461-10 SUBCHAPTER A. GENERAL PROVISIONS
461-11 Sec. 101.001. SHORT TITLE. This subtitle may be cited as
461-12 the Gas Utility Regulatory Act. (V.A.C.S. Art. 1446e, Sec. 1.01.)
461-13 Sec. 101.002. PURPOSE AND FINDINGS. (a) This subtitle is
461-14 enacted to protect the public interest inherent in the rates and
461-15 services of gas utilities. The purpose of this subtitle is to
461-16 establish a comprehensive and adequate regulatory system for gas
461-17 utilities to assure rates, operations, and services that are just
461-18 and reasonable to the consumers and to the utilities.
461-19 (b) Gas utilities are by definition monopolies in the areas
461-20 they serve. As a result, the normal forces of competition that
461-21 regulate prices in a free enterprise society do not operate. Public
461-22 agencies regulate utility rates, operations, and services as a
461-23 substitute for competition. (V.A.C.S. Art. 1446e, Sec. 1.02.)
461-24 Sec. 101.003. DEFINITIONS. In this subtitle:
461-25 (1) "Affected person" means:
461-26 (A) a gas utility affected by an action of a
461-27 regulatory authority;
462-1 (B) a person whose utility service or rates are
462-2 affected by a proceeding before a regulatory authority; or
462-3 (C) a person who:
462-4 (i) is a competitor of a gas utility with
462-5 respect to a service performed by the utility; or
462-6 (ii) wants to enter into competition with
462-7 a gas utility.
462-8 (2) "Affiliate" means:
462-9 (A) a person who directly or indirectly owns or
462-10 holds at least five percent of the voting securities of a gas
462-11 utility;
462-12 (B) a person in a chain of successive ownership
462-13 of at least five percent of the voting securities of a gas utility;
462-14 (C) a corporation that has at least five percent
462-15 of its voting securities owned or controlled, directly or
462-16 indirectly, by a gas utility;
462-17 (D) a corporation that has at least five percent
462-18 of its voting securities owned or controlled, directly or
462-19 indirectly, by:
462-20 (i) a person who directly or indirectly
462-21 owns or controls at least five percent of the voting securities of
462-22 a gas utility; or
462-23 (ii) a person in a chain of successive
462-24 ownership of at least five percent of the voting securities of a
462-25 gas utility;
462-26 (E) a person who is an officer or director of a
462-27 gas utility or of a corporation in a chain of successive ownership
463-1 of at least five percent of the voting securities of a gas utility;
463-2 or
463-3 (F) a person determined to be an affiliate under
463-4 Section 101.004.
463-5 (3) "Allocation" means the division among
463-6 municipalities or among municipalities and unincorporated areas of
463-7 the plant, revenues, expenses, taxes, and reserves of a gas utility
463-8 used to provide gas utility service in a municipality or for a
463-9 municipality and unincorporated areas.
463-10 (4) "Corporation" means a domestic or foreign
463-11 corporation, joint-stock company, or association, and each lessee,
463-12 assignee, trustee, receiver, or other successor in interest of the
463-13 corporation, company, or association, that has any of the powers or
463-14 privileges of a corporation not possessed by an individual or
463-15 partnership. The term does not include a municipal corporation,
463-16 except as expressly provided by this subtitle.
463-17 (5) "Counsellor" means the chief executive of the
463-18 Office of Public Utility Counsel.
463-19 (6) "Facilities" means all of the plant and equipment
463-20 of a gas utility, and includes the tangible and intangible
463-21 property, without limitation, owned, operated, leased, licensed,
463-22 used, controlled, or supplied for, by, or in connection with the
463-23 business of the gas utility.
463-24 (7) "Gas utility" includes a person or river authority
463-25 that owns or operates for compensation in this state equipment or
463-26 facilities to transmit or distribute combustible hydrocarbon
463-27 natural gas or synthetic natural gas for sale or resale in a manner
464-1 not subject to the jurisdiction of the Federal Energy Regulatory
464-2 Commission under the Natural Gas Act (15 U.S.C. Section 717 et
464-3 seq.). The term includes a lessee, trustee, or receiver of a gas
464-4 utility. The term does not include:
464-5 (A) a municipal corporation;
464-6 (B) a person or river authority to the extent
464-7 the person or river authority:
464-8 (i) produces, gathers, transports, or
464-9 sells natural gas or synthetic natural gas under Section 121.004 or
464-10 121.005;
464-11 (ii) distributes or sells liquefied
464-12 petroleum gas; or
464-13 (iii) transports, delivers, or sells
464-14 natural gas for fuel for irrigation wells or any other direct
464-15 agricultural use;
464-16 (C) a person to the extent the person:
464-17 (i) sells natural gas for use as vehicle
464-18 fuel;
464-19 (ii) sells natural gas to a person who
464-20 later sells the natural gas for use as vehicle fuel; or
464-21 (iii) owns or operates equipment or
464-22 facilities to sell or transport natural gas for ultimate use as
464-23 vehicle fuel; or
464-24 (D) a person not otherwise a gas utility who
464-25 furnishes gas or gas service only to itself, its employees, or its
464-26 tenants as an incident of employment or tenancy, if the gas or gas
464-27 service is not resold to or used by others.
465-1 (8) "Municipally owned utility" means a utility owned,
465-2 operated, and controlled by a municipality or by a nonprofit
465-3 corporation the directors of which are appointed by one or more
465-4 municipalities.
465-5 (9) "Order" means all or a part of a final disposition
465-6 by a regulatory authority in a matter other than rulemaking,
465-7 without regard to whether the disposition is affirmative or
465-8 negative or injunctive or declaratory. The term includes the
465-9 setting of a rate.
465-10 (10) "Person" includes an individual, a partnership of
465-11 two or more persons having a joint or common interest, a mutual or
465-12 cooperative association, and a corporation.
465-13 (11) "Proceeding" means a hearing, investigation,
465-14 inquiry, or other procedure for finding facts or making a decision
465-15 under this subtitle. The term includes a denial of relief or
465-16 dismissal of a complaint.
465-17 (12) "Rate" means:
465-18 (A) any compensation, tariff, charge, fare,
465-19 toll, rental, or classification that is directly or indirectly
465-20 demanded, observed, charged, or collected by a gas utility for a
465-21 service, product, or commodity described in the definition of gas
465-22 utility in this section; and
465-23 (B) a rule, regulation, practice, or contract
465-24 affecting the compensation, tariff, charge, fare, toll, rental, or
465-25 classification.
465-26 (13) "Regulatory authority" means either the railroad
465-27 commission or the governing body of a municipality, in accordance
466-1 with the context.
466-2 (14) "Service" has its broadest and most inclusive
466-3 meaning. The term includes any act performed, anything supplied,
466-4 and any facilities used or supplied by a gas utility in the
466-5 performance of the utility's duties under this subtitle to its
466-6 patrons, employees, other gas utilities, and the public. The term
466-7 also includes the interchange of facilities between two or more gas
466-8 utilities.
466-9 (15) "State agency" has the meaning assigned by
466-10 Section 572.002, Government Code, to the extent the state agency
466-11 must obtain the approval described by Section 31.401(a), Natural
466-12 Resources Code.
466-13 (16) "Test year" means the most recent 12 months,
466-14 beginning on the first day of a calendar or fiscal year quarter,
466-15 for which operating data for a gas utility are available.
466-16 (V.A.C.S. Art. 1446e, Secs. 1.03(1), (3), (4), (6), (7), (8)
466-17 (part), (9), (10), (11), (12), (13), (14), (15), (16), (17).)
466-18 Sec. 101.004. PERSON DETERMINED TO BE AFFILIATE. (a) The
466-19 railroad commission may determine that a person is an affiliate for
466-20 purposes of this subtitle if the railroad commission after notice
466-21 and hearing finds that the person:
466-22 (1) actually exercises substantial influence or
466-23 control over the policies and actions of a gas utility;
466-24 (2) is a person over which a gas utility exercises the
466-25 control described by Subdivision (1);
466-26 (3) is under common control with a gas utility; or
466-27 (4) actually exercises substantial influence over the
467-1 policies and actions of a gas utility in conjuction with one or
467-2 more persons with whom the person is related by ownership or blood
467-3 relationship, or by action in concert, that together they are
467-4 affiliated with the gas utility within the meaning of this section
467-5 even though neither person may qualify as an affiliate
467-6 individually.
467-7 (b) For purposes of Subsection (a)(3), "common control with
467-8 a gas utility" means the direct or indirect possession of the power
467-9 to direct or cause the direction of the management and policies of
467-10 another, without regard to whether that power is established
467-11 through ownership or voting of securities or by any other direct or
467-12 indirect means. (V.A.C.S. Art. 1446e, Sec. 1.03(8) (part).)
467-13 Sec. 101.005. ADMINISTRATIVE PROCEDURE. Chapter 2001,
467-14 Government Code, applies to a proceeding under this subtitle except
467-15 to the extent inconsistent with this subtitle. (V.A.C.S.
467-16 Art. 1446e, Sec. 1.04.)
467-17 Sec. 101.006. CUMULATIVE EFFECT; APPLICATION TO GAS
467-18 UTILITIES. (a) This subtitle is cumulative of laws existing on
467-19 September 1, 1983, relating to the jurisdiction, power, or
467-20 authority of the railroad commission over a gas utility, and,
467-21 except as specifically in conflict with this subtitle, that
467-22 jurisdiction, power, and authority are not limited by this
467-23 subtitle.
467-24 (b) This subtitle applies to all gas utilities, including a
467-25 gas utility that is under the jurisdiction, power, or authority of
467-26 the railroad commission in accordance with a law other than this
467-27 subtitle. (V.A.C.S. Art. 1446e, Sec. 2.01(c).)
468-1 Sec. 101.007. LIBERAL CONSTRUCTION. This subtitle shall be
468-2 construed liberally to promote the effectiveness and efficiency of
468-3 regulation of gas utilities to the extent that this construction
468-4 preserves the validity of this subtitle and its provisions.
468-5 (V.A.C.S. Art. 1446e, Sec. 10.04 (part).)
468-6 Sec. 101.008. CONSTRUCTION WITH FEDERAL AUTHORITY. This
468-7 subtitle shall be construed to apply so as not to conflict with any
468-8 authority of the United States. (V.A.C.S. Art. 1446e, Sec. 10.04
468-9 (part).)
468-10 (Sections 101.009-101.050 reserved for expansion)
468-11 SUBCHAPTER B. OFFICE OF PUBLIC UTILITY COUNSEL
468-12 Sec. 101.051. OFFICE OF PUBLIC UTILITY COUNSEL. The
468-13 independent office of public utility counsel represents the
468-14 interests of residential consumers. (V.A.C.S. Art. 1446e, Sec.
468-15 9.07(a).)
468-16 Sec. 101.052. OFFICE POWERS AND DUTIES. (a) The office:
468-17 (1) may appear or intervene as a party or otherwise
468-18 represent residential consumers, as a class, in appeals to the
468-19 railroad commission only at the written request of an affected
468-20 municipality's governing body;
468-21 (2) may initiate or intervene as a matter of right or
468-22 otherwise appear in a judicial proceeding that involves an action
468-23 taken by the railroad commission in a proceeding in which the
468-24 office was a party;
468-25 (3) is entitled to the same access as a party, other
468-26 than railroad commission staff, to records gathered by the railroad
468-27 commission under Section 102.203;
469-1 (4) is entitled to discovery of any nonprivileged
469-2 matter that is relevant to the subject matter of a proceeding or
469-3 petition before the railroad commission;
469-4 (5) may represent an individual residential consumer
469-5 with respect to the consumer's disputed complaint concerning
469-6 utility services that is unresolved before the railroad commission;
469-7 and
469-8 (6) may recommend legislation to the legislature that
469-9 the office determines would positively affect the interests of
469-10 residential consumers.
469-11 (b) The office may represent only as a class the residential
469-12 consumers of a municipality that makes a request under Subsection
469-13 (a)(1).
469-14 (c) This section does not limit the authority of the
469-15 railroad commission to represent residential consumers.
469-16 (d) The appearance of the counsellor in a proceeding does
469-17 not preclude the appearance of other parties on behalf of
469-18 residential consumers. The counsellor may not be grouped with any
469-19 other party. (V.A.C.S. Art. 1446e, Secs. 9.07(f), (g), (h).)
469-20 Sec. 101.053. PROHIBITED ACTS. (a) The counsellor may not:
469-21 (1) have a direct or indirect interest in a gas
469-22 utility company regulated under this subtitle; or
469-23 (2) provide legal services directly or indirectly to
469-24 or be employed in any capacity by a gas utility company regulated
469-25 under this subtitle, its parent, or its subsidiary companies,
469-26 corporations, or cooperatives.
469-27 (b) The prohibition under Subsection (a) applies during the
470-1 period of the counsellor's service and until the first anniversary
470-2 of the date the counsellor ceases to serve as counsellor.
470-3 (c) This section does not prohibit a person from otherwise
470-4 engaging in the private practice of law after the person ceases to
470-5 serve as counsellor. (V.A.C.S. Art. 1446e, Sec. 9.07(e).)
470-6 Sec. 101.054. PERSONNEL. (a) The counsellor may employ
470-7 lawyers, economists, engineers, consultants, statisticians,
470-8 accountants, clerical staff, and other employees as the counsellor
470-9 determines necessary to carry out this subchapter.
470-10 (b) An employee receives compensation as prescribed by the
470-11 legislature from the assessment imposed by Subchapter A, Chapter
470-12 16. (V.A.C.S. Art. 1446e, Sec. 9.07(c).)
470-13 CHAPTER 102. JURISDICTION AND POWERS OF
470-14 RAILROAD COMMISSION AND OTHER REGULATORY AUTHORITIES
470-15 SUBCHAPTER A. GENERAL POWERS OF RAILROAD COMMISSION
470-16 Sec. 102.001. RAILROAD COMMISSION JURISDICTION
470-17 Sec. 102.002. LIMITATION ON RAILROAD COMMISSION
470-18 JURISDICTION
470-19 Sec. 102.003. RAILROAD COMMISSION POWERS RELATING
470-20 TO REPORTS
470-21 Sec. 102.004. REPORT OF SUBSTANTIAL INTEREST
470-22 Sec. 102.005. ASSISTANCE TO MUNICIPALITY
470-23 (Sections 102.006-102.050 reserved for expansion)
470-24 SUBCHAPTER B. RESTRICTIONS ON CERTAIN TRANSACTIONS
470-25 Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS;
470-26 RAILROAD COMMISSION CONSIDERATION
470-27 Sec. 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
471-1 UTILITY
471-2 Sec. 102.053. REPORT OF LOAN TO STOCKHOLDERS
471-3 Sec. 102.054. APPROVAL OF CONVEYANCE OF GAS RESERVE RIGHTS
471-4 (Sections 102.055-102.100 reserved for expansion)
471-5 SUBCHAPTER C. RECORDS
471-6 Sec. 102.101. RECORDS OF GAS UTILITY
471-7 Sec. 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
471-8 STATE
471-9 Sec. 102.103. COMMUNICATIONS WITH REGULATORY AUTHORITY
471-10 Sec. 102.104. JURISDICTION OVER AFFILIATE
471-11 (Sections 102.105-102.150 reserved for expansion)
471-12 SUBCHAPTER D. REQUIRED REPORTS AND FILINGS
471-13 Sec. 102.151. SCHEDULE FILINGS
471-14 Sec. 102.152. DEPRECIATION ACCOUNT
471-15 Sec. 102.153. ACCOUNTS OF PROFITS AND LOSSES
471-16 Sec. 102.154. REPORT OF CERTAIN EXPENSES
471-17 (Sections 102.155-102.200 reserved for expansion)
471-18 SUBCHAPTER E. AUDITS AND INSPECTIONS
471-19 Sec. 102.201. INQUIRY INTO MANAGEMENT AND AFFAIRS
471-20 Sec. 102.202. AUDIT OF ACCOUNTS
471-21 Sec. 102.203. INSPECTION
471-22 Sec. 102.204. EXAMINATIONS UNDER OATH
471-23 Sec. 102.205. ENTERING PREMISES OF GAS UTILITY
471-24 Sec. 102.206. PRODUCTION OF OUT-OF-STATE RECORDS
471-25 (Sections 102.207-102.250 reserved for expansion)
472-1 SUBCHAPTER F. GENERAL PROVISIONS RELATING TO PROCEEDINGS
472-2 BEFORE REGULATORY AUTHORITY
472-3 Sec. 102.251. RECORD OF PROCEEDING
472-4 Sec. 102.252. RIGHT TO BE HEARD
472-5 CHAPTER 102. JURISDICTION AND POWERS OF
472-6 RAILROAD COMMISSION AND OTHER REGULATORY AUTHORITIES
472-7 SUBCHAPTER A. GENERAL POWERS OF RAILROAD COMMISSION
472-8 Sec. 102.001. RAILROAD COMMISSION JURISDICTION. (a) The
472-9 railroad commission has exclusive original jurisdiction over the
472-10 rates and services of a gas utility distributing natural gas or
472-11 synthetic natural gas in areas outside a municipality. The
472-12 railroad commission also has exclusive original jurisdiction over
472-13 the rates and services of a gas utility that transmits, transports,
472-14 delivers, or sells natural gas or synthetic natural gas to a gas
472-15 utility that distributes the gas to the public.
472-16 (b) The railroad commission has exclusive appellate
472-17 jurisdiction to review an order or ordinance of a municipality as
472-18 provided by this subtitle. (V.A.C.S. Art. 1446e, Sec. 2.01(b).)
472-19 Sec. 102.002. LIMITATION ON RAILROAD COMMISSION
472-20 JURISDICTION. Except as otherwise provided by this subtitle, this
472-21 subtitle does not authorize the railroad commission to:
472-22 (1) regulate or supervise a rate or service of a
472-23 municipally owned utility; or
472-24 (2) affect the jurisdiction, power, or duty of a
472-25 municipality that has elected to regulate and supervise a gas
472-26 utility in the municipality. (V.A.C.S. Art. 1446e, Sec. 2.02.)
472-27 Sec. 102.003. RAILROAD COMMISSION POWERS RELATING TO
473-1 REPORTS. The railroad commission may:
473-2 (1) require a gas utility to report to the railroad
473-3 commission information relating to the gas utility and an affiliate
473-4 inside or outside this state as useful in administering this
473-5 subtitle;
473-6 (2) establish the form for a report;
473-7 (3) determine the time for a report and the frequency
473-8 with which the report is to be made;
473-9 (4) require that a report be made under oath;
473-10 (5) require the filing with the railroad commission of
473-11 a copy of:
473-12 (A) a contract or arrangement between a gas
473-13 utility and an affiliate;
473-14 (B) a report filed with a federal agency or a
473-15 governmental agency or body of another state; and
473-16 (C) an annual report that shows each payment of
473-17 compensation, other than salary or wages subject to federal income
473-18 tax withholding:
473-19 (i) to residents of this state;
473-20 (ii) with respect to legal,
473-21 administrative, or legislative matters in this state; or
473-22 (iii) for representation before the
473-23 legislature of this state or any governmental agency or body; and
473-24 (6) require that a contract or arrangement described
473-25 by Subdivision (5)(A) that is not in writing be reduced to writing
473-26 and filed with the railroad commission. (V.A.C.S. Art. 1446e, Sec.
473-27 4.02.)
474-1 Sec. 102.004. REPORT OF SUBSTANTIAL INTEREST. The railroad
474-2 commission may require disclosure of the identity and respective
474-3 interests of each owner of at least one percent of the voting
474-4 securities of a gas utility or its affiliate. (V.A.C.S.
474-5 Art. 1446e, Sec. 7.02.)
474-6 Sec. 102.005. ASSISTANCE TO MUNICIPALITY. On request of a
474-7 municipality, the railroad commission may advise and assist the
474-8 municipality with respect to a question or proceeding arising under
474-9 this subtitle. Assistance provided by the railroad commission may
474-10 include aid to a municipality on a matter pending before the
474-11 railroad commission, a court, or the municipality's governing body,
474-12 such as making a staff member available as a witness or otherwise
474-13 providing evidence. (V.A.C.S. Art. 1446e, Sec. 3.04.)
474-14 (Sections 102.006-102.050 reserved for expansion)
474-15 SUBCHAPTER B. RESTRICTIONS ON CERTAIN TRANSACTIONS
474-16 Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS; RAILROAD
474-17 COMMISSION CONSIDERATION. (a) Unless a gas utility reports the
474-18 transaction to the railroad commission within a reasonable time,
474-19 the gas utility may not:
474-20 (1) sell, acquire, or lease a plant as an operating
474-21 unit or system in this state for a total consideration of more than
474-22 $100,000; or
474-23 (2) merge or consolidate with another gas utility
474-24 operating in this state.
474-25 (b) On the filing of a report with the railroad commission,
474-26 the railroad commission shall investigate the transaction described
474-27 by Subsection (a), with or without a public hearing, to determine
475-1 whether the action is consistent with the public interest. In
475-2 reaching its determination, the railroad commission shall consider
475-3 the reasonable value of the property, facilities, or securities to
475-4 be acquired, disposed of, merged, or consolidated.
475-5 (c) If the railroad commission finds that a transaction is
475-6 not in the public interest, the railroad commission shall take the
475-7 effect of the transaction into consideration in ratemaking
475-8 proceedings and disallow the effect of the transaction if the
475-9 transaction will unreasonably affect rates or service.
475-10 (d) This section does not apply to:
475-11 (1) the purchase of a unit of property for
475-12 replacement; or
475-13 (2) an addition to the facilities of a gas utility by
475-14 construction. (V.A.C.S. Art. 1446e, Sec. 6.01.)
475-15 Sec. 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
475-16 UTILITY. A gas utility may not purchase voting stock in another
475-17 gas utility doing business in this state unless the utility reports
475-18 the purchase to the railroad commission. (V.A.C.S. Art. 1446e,
475-19 Sec. 6.02.)
475-20 Sec. 102.053. REPORT OF LOAN TO STOCKHOLDERS. A gas utility
475-21 may not loan money, stocks, bonds, notes, or other evidence of
475-22 indebtedness to a person who directly or indirectly owns or holds
475-23 any stock of the gas utility unless the gas utility reports the
475-24 transaction to the railroad commission within a reasonable time.
475-25 (V.A.C.S. Art. 1446e, Sec. 6.03.)
475-26 Sec. 102.054. APPROVAL OF CONVEYANCE OF GAS RESERVE RIGHTS.
475-27 A gas utility may not sell, convey, bank, or assign rights to a gas
476-1 reserve to a utility or an interstate pipeline without the prior
476-2 approval of the railroad commission. (V.A.C.S. Art. 1446e, Sec.
476-3 6.04.)
476-4 (Sections 102.055-102.100 reserved for expansion)
476-5 SUBCHAPTER C. RECORDS
476-6 Sec. 102.101. RECORDS OF GAS UTILITY. (a) Each gas utility
476-7 shall keep and provide to the regulatory authority, in the manner
476-8 and form prescribed by the railroad commission, uniform accounts of
476-9 all business transacted by the gas utility.
476-10 (b) The railroad commission may prescribe the form of books,
476-11 accounts, records, and memoranda to be kept by a gas utility,
476-12 including:
476-13 (1) the books, accounts, records, and memoranda of:
476-14 (A) the provision of and capacity for service;
476-15 and
476-16 (B) the receipt and expenditure of money; and
476-17 (2) any other form, record, and memorandum that the
476-18 railroad commission considers necessary to carry out this subtitle.
476-19 (c) For a gas utility subject to regulation by a federal
476-20 regulatory agency, compliance with the system of accounts
476-21 prescribed for the particular class of utilities by the federal
476-22 agency may be considered sufficient compliance with the system
476-23 prescribed by the railroad commission. The railroad commission may
476-24 prescribe the form of books, accounts, records, and memoranda
476-25 covering information in addition to that required by the federal
476-26 agency. The system of accounts and the form of books, accounts,
476-27 records, and memoranda prescribed by the railroad commission for a
477-1 gas utility or class of utilities may not be inconsistent with the
477-2 systems and forms established by a federal agency for that gas
477-3 utility or class of utilities.
477-4 (d) Each gas utility shall:
477-5 (1) keep and provide its books, accounts, records, and
477-6 memoranda accurately and faithfully in the manner and form
477-7 prescribed by the railroad commission; and
477-8 (2) comply with the directions of the regulatory
477-9 authority relating to the books, accounts, records, and memoranda.
477-10 (e) In this section, "gas utility" includes a municipally
477-11 owned utility. (V.A.C.S. Art. 1446e, Secs. 4.01(a), (d) (part),
477-12 (f).)
477-13 Sec. 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
477-14 STATE. (a) Each gas utility shall maintain an office in this
477-15 state in a county in which some part of the utility's property is
477-16 located. The gas utility shall keep in this office all books,
477-17 accounts, records, and memoranda required by the railroad
477-18 commission to be kept in this state.
477-19 (b) A book, account, record, or memorandum required by the
477-20 regulatory authority to be kept in this state may not be removed
477-21 from this state except as prescribed by the railroad commission.
477-22 (V.A.C.S. Art. 1446e, Sec. 4.07.)
477-23 Sec. 102.103. COMMUNICATIONS WITH REGULATORY AUTHORITY. (a)
477-24 The regulatory authority shall adopt rules governing communications
477-25 with the regulatory authority or a member or employee of the
477-26 regulatory authority by:
477-27 (1) a gas utility;
478-1 (2) an affiliate; or
478-2 (3) a representative of a gas utility or affiliate.
478-3 (b) A record of a communication must contain:
478-4 (1) the name of the person contacting the regulatory
478-5 authority or member or employee of the regulatory authority;
478-6 (2) the name of the business entity represented;
478-7 (3) a brief description of the subject matter of the
478-8 communication; and
478-9 (4) the action, if any, requested by the gas utility,
478-10 affiliate, or representative.
478-11 (c) Records compiled under Subsection (b) shall be available
478-12 to the public monthly. (V.A.C.S. Art. 1446e, Sec. 4.08.)
478-13 Sec. 102.104. JURISDICTION OVER AFFILIATE. The railroad
478-14 commission has jurisdiction over an affiliate that has a
478-15 transaction with a gas utility under the railroad commission's
478-16 jurisdiction to the extent of access to an account or a record of
478-17 the affiliate relating to the transaction, including an account or
478-18 a record of joint or general expenses, any portion of which may be
478-19 applicable to the transaction. (V.A.C.S. Art. 1446e, Sec. 7.01.)
478-20 (Sections 102.105-102.150 reserved for expansion)
478-21 SUBCHAPTER D. REQUIRED REPORTS AND FILINGS
478-22 Sec. 102.151. SCHEDULE FILINGS. (a) A gas utility shall
478-23 file with each regulatory authority schedules showing all rates
478-24 that are:
478-25 (1) subject to the regulatory authority's original or
478-26 appellate jurisdiction; and
478-27 (2) in effect for a gas utility service, product, or
479-1 commodity offered by the gas utility.
479-2 (b) The gas utility shall file as a part of the schedules
479-3 required under Subsection (a) each rule or regulation that relates
479-4 to or affects:
479-5 (1) a rate of the gas utility; or
479-6 (2) a gas utility service, product, or commodity
479-7 furnished by the gas utility. (V.A.C.S. Art. 1446e, Sec. 4.06.)
479-8 Sec. 102.152. DEPRECIATION ACCOUNT. The railroad commission
479-9 shall require each gas utility or municipally owned utility to
479-10 carry a proper and adequate depreciation account in accordance
479-11 with:
479-12 (1) the rates and methods prescribed by the railroad
479-13 commission under Section 104.054; and
479-14 (2) any other rule the railroad commission adopts.
479-15 (V.A.C.S. Art. 1446e, Secs. 4.01(b) (part), (f).)
479-16 Sec. 102.153. ACCOUNTS OF PROFITS AND LOSSES. A gas utility
479-17 or municipally owned utility shall keep separate accounts showing
479-18 profits or losses from the sale or lease of merchandise, including
479-19 an appliance, a fixture, or equipment. (V.A.C.S. Art. 1446e, Secs.
479-20 4.01(c) (part), (f).)
479-21 Sec. 102.154. REPORT OF CERTAIN EXPENSES. A regulatory
479-22 authority may require a gas utility to annually report the
479-23 utility's expenditures for:
479-24 (1) business gifts and entertainment; and
479-25 (2) advertising or public relations, including
479-26 expenditures for institutional and consumption-inducing purposes.
479-27 (V.A.C.S. Art. 1446e, Sec. 4.04 (part).)
480-1 (Sections 102.155-102.200 reserved for expansion)
480-2 SUBCHAPTER E. AUDITS AND INSPECTIONS
480-3 Sec. 102.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A
480-4 regulatory authority may inquire into the management and affairs of
480-5 each gas utility and shall keep itself informed as to the manner
480-6 and method in which each gas utility is managed and its affairs are
480-7 conducted. (V.A.C.S. Art. 1446e, Sec. 4.03(c).)
480-8 Sec. 102.202. AUDIT OF ACCOUNTS. A regulatory authority may
480-9 require the examination and audit of the accounts of a gas or
480-10 municipally owned utility. (V.A.C.S. Art. 1446e, Secs. 4.01(d)
480-11 (part), (f).)
480-12 Sec. 102.203. INSPECTION. At a reasonable time for a
480-13 reasonable purpose, a regulatory authority and, to the extent
480-14 authorized by the regulatory authority, its counsel, agent, or
480-15 employee may:
480-16 (1) inspect and obtain copies of the papers, books,
480-17 accounts, documents, and other business records of a gas utility
480-18 within its jurisdiction; and
480-19 (2) inspect the plant, equipment, and other property
480-20 of a gas utility within its jurisdiction. (V.A.C.S. Art. 1446e,
480-21 Sec. 4.03(a) (part).)
480-22 Sec. 102.204. EXAMINATIONS UNDER OATH. In connection with
480-23 an investigation taken under Section 102.203, the regulatory
480-24 authority may:
480-25 (1) examine under oath an officer, agent, or employee
480-26 of a gas utility; or
480-27 (2) authorize the person conducting the action to make
481-1 the examination under oath. (V.A.C.S. Art. 1446e, Sec. 4.03(a)
481-2 (part).)
481-3 Sec. 102.205. ENTERING PREMISES OF GAS UTILITY. (a) A
481-4 member, agent, or employee of a regulatory authority may enter the
481-5 premises occupied by a gas utility to conduct an inspection,
481-6 examination, or test or to exercise any other authority provided by
481-7 this subtitle.
481-8 (b) A member, agent, or employee of the regulatory authority
481-9 may act under this section only during reasonable hours and after
481-10 reasonable notice to the gas utility.
481-11 (c) A gas utility is entitled to be represented when an
481-12 inspection, examination, or test is conducted on its premises. The
481-13 gas utility is entitled to a reasonable time to secure a
481-14 representative before the inspection, examination, or test begins.
481-15 (V.A.C.S. Art. 1446e, Secs. 4.03(b), 4.10(a) (part).)
481-16 Sec. 102.206. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A
481-17 regulatory authority may require, by order or subpoena served on a
481-18 gas utility, the production, at the time and place in this state
481-19 that the regulatory authority designates, of any books, accounts,
481-20 papers, or records kept by that gas utility outside this state or,
481-21 if ordered by the railroad commission, verified copies of the
481-22 books, accounts, papers, or records.
481-23 (b) A gas utility that fails or refuses to comply with an
481-24 order or subpoena under this section violates this subtitle.
481-25 (V.A.C.S. Art. 1446e, Sec. 4.03(a) (part).)
482-1 (Sections 102.207-102.250 reserved for expansion)
482-2 SUBCHAPTER F. GENERAL PROVISIONS RELATING TO PROCEEDINGS
482-3 BEFORE REGULATORY AUTHORITY
482-4 Sec. 102.251. RECORD OF PROCEEDING. The regulatory
482-5 authority shall keep a record of each proceeding before the
482-6 authority. (V.A.C.S. Art. 1446e, Sec. 10.02 (part).)
482-7 Sec. 102.252. RIGHT TO BE HEARD. Each party to a proceeding
482-8 before a regulatory authority is entitled to be heard by attorney
482-9 or in person. (V.A.C.S. Art. 1446e, Sec. 10.02 (part).)
482-10 CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
482-11 SUBCHAPTER A. GENERAL PROVISIONS
482-12 Sec. 103.001. MUNICIPAL JURISDICTION
482-13 Sec. 103.002. FRANCHISES
482-14 (Sections 103.003-103.020 reserved for expansion)
482-15 SUBCHAPTER B. RATE DETERMINATION
482-16 Sec. 103.021. MUNICIPAL PROCEEDINGS
482-17 Sec. 103.022. RATE ASSISTANCE AND COST REIMBURSEMENT
482-18 Sec. 103.023. MUNICIPAL STANDING
482-19 Sec. 103.024. JUDICIAL REVIEW
482-20 (Sections 103.025-103.050 reserved for expansion)
482-21 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
482-22 Sec. 103.051. APPEAL BY PARTY
482-23 Sec. 103.052. APPEAL BY RESIDENTS
482-24 Sec. 103.053. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY
482-25 Sec. 103.054. FILING OF APPEAL
482-26 Sec. 103.055. HEARING AND ORDER
482-27 Sec. 103.056. APPLICABILITY OF RATES
483-1 CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
483-2 SUBCHAPTER A. GENERAL PROVISIONS
483-3 Sec. 103.001. MUNICIPAL JURISDICTION. To provide fair,
483-4 just, and reasonable rates and adequate and efficient services, the
483-5 governing body of a municipality has exclusive original
483-6 jurisdiction over the rates, operations, and services of a gas
483-7 utility within the municipality, subject to the limitations imposed
483-8 by this subtitle. (V.A.C.S. Art. 1446e, Sec. 2.01(a).)
483-9 Sec. 103.002. FRANCHISES. (a) This subtitle does not
483-10 restrict the rights and powers of a municipality to grant or refuse
483-11 a franchise to use the streets and alleys in the municipality or to
483-12 make a statutory charge for that use.
483-13 (b) A municipality that performs a regulatory function under
483-14 this subtitle may make each charge that is authorized by:
483-15 (1) this subtitle; or
483-16 (2) the applicable franchise agreement.
483-17 (c) A franchise agreement may not limit or interfere with a
483-18 power conferred on the railroad commission by this subtitle.
483-19 (V.A.C.S. Art. 1446e, Sec. 3.01.)
483-20 (Sections 103.003-103.020 reserved for expansion)
483-21 SUBCHAPTER B. RATE DETERMINATION
483-22 Sec. 103.021. MUNICIPAL PROCEEDINGS. (a) A municipality
483-23 regulating a gas utility under this subtitle shall require the
483-24 utility to submit information as necessary to make a reasonable
483-25 determination of rate base, expenses, investment, and rate of
483-26 return in the municipality.
483-27 (b) A municipality shall make a determination under
484-1 Subsection (a) using the procedures and requirements prescribed by
484-2 this subtitle.
484-3 (c) A municipality shall retain personnel necessary to make
484-4 the determination of reasonable rates. (V.A.C.S. Art. 1446e, Sec.
484-5 3.02.)
484-6 Sec. 103.022. RATE ASSISTANCE AND COST REIMBURSEMENT. (a)
484-7 The governing body of a municipality participating in or conducting
484-8 a ratemaking proceeding may engage rate consultants, accountants,
484-9 auditors, attorneys, and engineers to:
484-10 (1) conduct investigations, present evidence, and
484-11 advise and represent the governing body; and
484-12 (2) assist the governing body with litigation or a gas
484-13 utility ratemaking proceeding before a regulatory authority or
484-14 court.
484-15 (b) The gas utility in the ratemaking proceeding shall
484-16 reimburse the governing body of the municipality for the reasonable
484-17 cost of the services of a person engaged under Subsection (a) to
484-18 the extent the applicable regulatory authority determines
484-19 reasonable. (V.A.C.S. Art. 1446e, Sec. 3.03(a).)
484-20 Sec. 103.023. MUNICIPAL STANDING. (a) A municipality has
484-21 standing in each case before the railroad commission that relates
484-22 to a gas utility's rates and services in the municipality.
484-23 (b) A municipality's standing is subject to the right of the
484-24 railroad commission to consolidate that municipality with another
484-25 party on an issue of common interest. (V.A.C.S. Art. 1446e, Sec.
484-26 3.03(b) (part).)
484-27 Sec. 103.024. JUDICIAL REVIEW. A municipality is entitled
485-1 to judicial review of a railroad commission order relating to a gas
485-2 utility's rates and services in a municipality as provided by
485-3 Section 106.001. (V.A.C.S. Art. 1446e, Sec. 3.03(b) (part).)
485-4 (Sections 103.025-103.050 reserved for expansion)
485-5 SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
485-6 Sec. 103.051. APPEAL BY PARTY. A party to a rate proceeding
485-7 before a municipality's governing body may appeal the governing
485-8 body's decision to the railroad commission. (V.A.C.S. Art. 1446e,
485-9 Sec. 3.05(a).)
485-10 Sec. 103.052. APPEAL BY RESIDENTS. The residents of a
485-11 municipality may appeal to the railroad commission the decision of
485-12 the municipality's governing body in a rate proceeding by filing
485-13 with the railroad commission a petition for review signed by a
485-14 number of qualified voters of the municipality equal to at least
485-15 the lesser of 20,000 or 10 percent of the qualified voters of the
485-16 municipality. (V.A.C.S. Art. 1446e, Sec. 3.05(b).)
485-17 Sec. 103.053. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY.
485-18 (a) The ratepayers of a municipally owned utility who are outside
485-19 the municipality may appeal to the railroad commission an action of
485-20 the municipality's governing body affecting the municipally owned
485-21 utility's rates by filing with the railroad commission a petition
485-22 for review signed by a number of ratepayers served by the utility
485-23 outside the municipality equal to at least the lesser of 10,000 or
485-24 five percent of those ratepayers.
485-25 (b) A petition for review is properly signed if signed by a
485-26 person or the spouse of a person in whose name residential utility
485-27 service is carried.
486-1 (c) For purposes of this section, each person who receives a
486-2 separate bill is a ratepayer. A person who receives more than one
486-3 bill may not be counted as more than one ratepayer. (V.A.C.S.
486-4 Art. 1446e, Sec. 3.05(c).)
486-5 Sec. 103.054. FILING OF APPEAL. (a) An appeal under this
486-6 subchapter is initiated by filing a petition for review with the
486-7 railroad commission and serving a copy of the petition on each
486-8 party to the original rate proceeding.
486-9 (b) The appeal must be initiated not later than the 30th day
486-10 after the date of the final decision by the governing body of the
486-11 municipality. (V.A.C.S. Art. 1446e, Sec. 3.05(d).)
486-12 Sec. 103.055. HEARING AND ORDER. (a) An appeal under this
486-13 subchapter is de novo and based on the test year presented to the
486-14 municipality adjusted for known changes and conditions that are
486-15 measurable with reasonable accuracy.
486-16 (b) The railroad commission shall enter a final order
486-17 establishing the rates the railroad commission determines the
486-18 municipality should have set in the ordinance to which the appeal
486-19 applies.
486-20 (c) If the railroad commission fails to enter a final order
486-21 within 185 days after the date the appeal is perfected, the rates
486-22 proposed by the gas utility are considered to be approved by the
486-23 railroad commission and take effect on the expiration of the
486-24 185-day period. (V.A.C.S. Art. 1446e, Sec. 3.05(e) (part).)
486-25 Sec. 103.056. APPLICABILITY OF RATES. Temporary or
486-26 permanent rates set by the railroad commission are prospective and
486-27 observed from the date of the applicable railroad commission order,
487-1 except an interim rate order necessary to provide a gas utility the
487-2 opportunity to avoid confiscation during the period beginning on
487-3 the date a petition for review is filed with the railroad
487-4 commission and ending on the date of a final order establishing
487-5 rates. (V.A.C.S. Art. 1446e, Sec. 3.05(e) (part).)
487-6 CHAPTER 104. RATES AND SERVICES
487-7 SUBCHAPTER A. GENERAL PROVISIONS
487-8 Sec. 104.001. AUTHORIZATION TO ESTABLISH AND REGULATE
487-9 RATES
487-10 Sec. 104.002. COMPLIANCE WITH SUBTITLE
487-11 Sec. 104.003. JUST AND REASONABLE RATES
487-12 Sec. 104.004. UNREASONABLE PREFERENCE OR PREJUDICE PROHIBITED
487-13 Sec. 104.005. EQUALITY OF RATES AND SERVICES
487-14 Sec. 104.006. RATES FOR AREA NOT IN MUNICIPALITY
487-15 Sec. 104.007. DISCRIMINATION AND RESTRICTION ON COMPETITION
487-16 Sec. 104.008. BURDEN OF PROOF
487-17 (Sections 104.009-104.050 reserved for expansion)
487-18 SUBCHAPTER B. COMPUTATION OF RATES
487-19 Sec. 104.051. ESTABLISHING OVERALL REVENUES
487-20 Sec. 104.052. ESTABLISHING FAIR RATE OF RETURN
487-21 Sec. 104.053. COMPONENTS OF ADJUSTED VALUE OF INVESTED
487-22 CAPITAL
487-23 Sec. 104.054. DEPRECIATION, AMORTIZATION, AND DEPLETION
487-24 Sec. 104.055. NET INCOME; ALLOWABLE EXPENSES
487-25 Sec. 104.056. TREATMENT OF CERTAIN TAX BENEFITS
487-26 Sec. 104.057. CONSIDERATION OF CERTAIN EXPENSES
487-27 Sec. 104.058. CONSIDERATION OF PROFIT OR LOSS FROM SALE
488-1 OR LEASE OF MERCHANDISE
488-2 (Sections 104.059-104.100 reserved for expansion)
488-3 SUBCHAPTER C. RATE CHANGES PROPOSED BY UTILITY
488-4 Sec. 104.101. DEFINITION
488-5 Sec. 104.102. STATEMENT OF INTENT TO INCREASE RATES
488-6 Sec. 104.103. NOTICE OF INTENT TO INCREASE RATES
488-7 Sec. 104.104. EARLY EFFECTIVE DATE OF RATE INCREASE
488-8 Sec. 104.105. DETERMINATION OF PROPRIETY OF RATE CHANGE;
488-9 HEARING
488-10 Sec. 104.106. PREFERENCE TO HEARING
488-11 Sec. 104.107. RATE SUSPENSION; DEADLINE
488-12 Sec. 104.108. TEMPORARY RATES
488-13 Sec. 104.109. BONDED RATES
488-14 Sec. 104.110. ESTABLISHMENT OF FINAL RATES
488-15 Sec. 104.111. APPROVAL OF DECREASE IN RATES
488-16 (Sections 104.112-104.150 reserved for expansion)
488-17 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
488-18 Sec. 104.151. UNREASONABLE OR VIOLATIVE EXISTING RATES
488-19 Sec. 104.152. INVESTIGATING COSTS OF OBTAINING SERVICE
488-20 FROM ANOTHER SOURCE
488-21 (Sections 104.153-104.200 reserved for expansion)
488-22 SUBCHAPTER E. RATES FOR GOVERNMENTAL ENTITIES
488-23 Sec. 104.201. TRANSPORTATION RATES BETWEEN GAS UTILITY OR
488-24 MUNICIPALLY OWNED UTILITY AND STATE AGENCY
488-25 Sec. 104.202. EXCLUDED EXPENSES
488-26 Sec. 104.203. PAYMENT IN LIEU OF TAX
488-27 (Sections 104.204-104.250 reserved for expansion)
489-1 SUBCHAPTER F. SERVICES
489-2 Sec. 104.251. GENERAL STANDARD
489-3 Sec. 104.252. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
489-4 STANDARDS
489-5 Sec. 104.253. RULE OR STANDARD
489-6 Sec. 104.254. SERVICE
489-7 Sec. 104.255. BILLING
489-8 Sec. 104.256. EXAMINATION AND TEST OF INSTRUMENT OR EQUIPMENT;
489-9 INSPECTION
489-10 Sec. 104.257. INSPECTION FOR CONSUMER
489-11 CHAPTER 104. RATES AND SERVICES
489-12 SUBCHAPTER A. GENERAL PROVISIONS
489-13 Sec. 104.001. AUTHORIZATION TO ESTABLISH AND REGULATE RATES.
489-14 (a) The railroad commission is vested with all the authority and
489-15 power of this state to ensure compliance with the obligations of
489-16 gas utilities in this subtitle.
489-17 (b) The regulatory authority may establish and regulate
489-18 rates of a gas utility and may adopt rules for determining:
489-19 (1) the classification of customers and services; and
489-20 (2) the applicability of rates.
489-21 (c) A rule or order of the regulatory authority may not
489-22 conflict with a ruling of a federal regulatory body. (V.A.C.S.
489-23 Art. 1446e, Sec. 5.01.)
489-24 Sec. 104.002. COMPLIANCE WITH SUBTITLE. A gas utility may
489-25 not:
489-26 (1) charge, collect, or receive a rate for utility
489-27 service except as provided by this subtitle; or
490-1 (2) impose a rule or regulation except as provided by
490-2 this subtitle. (V.A.C.S. Art. 1446e, Sec. 4.05.)
490-3 Sec. 104.003. JUST AND REASONABLE RATES. (a) The
490-4 regulatory authority shall ensure that each rate a gas utility or
490-5 two or more gas utilities jointly make, demand, or receive is just
490-6 and reasonable. A rate may not be unreasonably preferential,
490-7 prejudicial, or discriminatory but must be sufficient, equitable,
490-8 and consistent in application to each class of consumer. In
490-9 establishing a gas utility's rates, the railroad commission may
490-10 treat as a single class two or more municipalities that a gas
490-11 utility serves if the commission considers that treatment to be
490-12 appropriate.
490-13 (b) A rate for a pipeline-to-pipeline transaction or to a
490-14 transportation, industrial, or similar large volume contract
490-15 customer is considered to be just and reasonable and otherwise to
490-16 comply with this section and shall be approved by the regulatory
490-17 authority if:
490-18 (1) neither the gas utility nor the customer had an
490-19 unfair advantage during the negotiations;
490-20 (2) the rate is substantially the same as the rate
490-21 between the gas utility and at least two of those customers under
490-22 the same or similar conditions of service; or
490-23 (3) competition does or did exist with another gas
490-24 utility, another supplier of natural gas, or a supplier of an
490-25 alternative form of energy.
490-26 (c) Subsection (b) does not apply:
490-27 (1) if a complaint is filed with the railroad
491-1 commission by a transmission pipeline purchaser of gas sold or
491-2 transported under the pipeline-to-pipeline or transportation rate;
491-3 or
491-4 (2) to a direct sale for resale to a gas distribution
491-5 utility at a city gate.
491-6 (d) The reasonableness of gas purchase costs included in a
491-7 city gate rate proposed to be charged for a sale for resale to a
491-8 gas distribution utility at a city gate may be reviewed at a city
491-9 gate rate proceeding even though the costs have been previously
491-10 approved as a rate for other parties under Subsection (b).
491-11 (e) Subsection (b)(1) does not apply to a rate charged or
491-12 offered to be charged to an affiliated pipeline utility. (V.A.C.S.
491-13 Art. 1446e, Secs. 5.02(a), (b), (d), (f).)
491-14 Sec. 104.004. UNREASONABLE PREFERENCE OR PREJUDICE
491-15 PROHIBITED. A gas utility may not:
491-16 (1) grant an unreasonable preference or advantage
491-17 concerning rates or services to a person in a classification;
491-18 (2) subject a person in a classification to an
491-19 unreasonable prejudice or disadvantage concerning rates or
491-20 services; or
491-21 (3) establish or maintain an unreasonable difference
491-22 concerning rates of services between localities or between classes
491-23 of service. (V.A.C.S. Art. 1446e, Sec. 5.10.)
491-24 Sec. 104.005. EQUALITY OF RATES AND SERVICES. (a) A gas
491-25 utility may not directly or indirectly charge, demand, collect, or
491-26 receive from a person a greater or lesser compensation for a
491-27 service provided or to be provided by the utility than the
492-1 compensation prescribed by the applicable schedule of rates filed
492-2 under Section 102.151.
492-3 (b) A person may not knowingly receive or accept a service
492-4 from a gas utility for a compensation greater or less than the
492-5 compensation prescribed by the schedules. A rate charged and
492-6 collected by a gas utility on September 1, 1983, may be continued
492-7 until schedules are filed.
492-8 (c) After notice and hearing, the railroad commission may,
492-9 in the public interest, order a gas utility to refund with interest
492-10 compensation received in violation of this section.
492-11 (d) This subtitle does not prevent a cooperative corporation
492-12 from returning to its members net earnings resulting from its
492-13 operations in proportion to the members' purchases from or through
492-14 the corporation. (V.A.C.S. Art. 1446e, Sec. 5.11.)
492-15 Sec. 104.006. RATES FOR AREA NOT IN MUNICIPALITY. Without
492-16 the approval of the railroad commission, a gas utility's rates for
492-17 an area not in a municipality may not exceed 115 percent of the
492-18 average of all rates for similar services for all municipalities
492-19 served by the same utility in the same county as that area.
492-20 (V.A.C.S. Art. 1446e, Sec. 5.09.)
492-21 Sec. 104.007. DISCRIMINATION AND RESTRICTION ON COMPETITION.
492-22 A gas utility may not:
492-23 (1) discriminate against a person who sells or leases
492-24 equipment or performs services in competition with the gas utility;
492-25 or
492-26 (2) engage in a practice that tends to restrict or
492-27 impair that competition. (V.A.C.S. Art. 1446e, Sec. 5.12.)
493-1 Sec. 104.008. BURDEN OF PROOF. In a proceeding involving a
493-2 proposed rate change, the gas utility has the burden of proving
493-3 that:
493-4 (1) the rate change is just and reasonable, if the
493-5 utility proposes the change; or
493-6 (2) an existing rate is just and reasonable, if the
493-7 proposal is to reduce the rate. (V.A.C.S. Art. 1446e, Sec.
493-8 5.04(b).)
493-9 (Sections 104.009-104.050 reserved for expansion)
493-10 SUBCHAPTER B. COMPUTATION OF RATES
493-11 Sec. 104.051. ESTABLISHING OVERALL REVENUES. In
493-12 establishing a gas utility's rates, the regulatory authority shall
493-13 establish the utility's overall revenues at an amount that will
493-14 permit the utility a reasonable opportunity to earn a reasonable
493-15 return on the utility's invested capital used and useful in
493-16 providing service to the public in excess of its reasonable and
493-17 necessary operating expenses. (V.A.C.S. Art. 1446e, Sec. 5.03
493-18 (part).)
493-19 Sec. 104.052. ESTABLISHING FAIR RATE OF RETURN. The
493-20 regulatory authority may not establish a rate that yields more than
493-21 a fair return on the adjusted value of the invested capital used
493-22 and useful in providing service to the public. (V.A.C.S.
493-23 Art. 1446e, Sec. 5.04(a).)
493-24 Sec. 104.053. COMPONENTS OF ADJUSTED VALUE OF INVESTED
493-25 CAPITAL. (a) Gas utility rates shall be based on the adjusted
493-26 value of invested capital used and useful to the utility in
493-27 providing service and that adjusted value shall be computed on the
494-1 basis of a reasonable balance between:
494-2 (1) original cost, less depreciation; and
494-3 (2) current cost, less an adjustment for present age
494-4 and condition.
494-5 (b) The regulatory authority may determine a reasonable
494-6 balance that reflects:
494-7 (1) not less than 60 percent nor more than 75 percent
494-8 of the original cost of the property at the time the property was
494-9 dedicated to public use, whether by the gas utility that is the
494-10 present owner or by a predecessor, less depreciation; and
494-11 (2) not less than 25 percent nor more than 40 percent
494-12 of the current cost less an adjustment for present age and
494-13 condition.
494-14 (c) In determining a reasonable balance, the regulatory
494-15 authority may consider inflation, deflation, quality of service
494-16 being provided, growth rate of the service area, and need for the
494-17 gas utility to attract new capital.
494-18 (d) Construction work in progress, at cost as recorded on
494-19 the gas utility's books, may be included as part of the adjusted
494-20 value of invested capital used by and useful to the utility in
494-21 providing service, as necessary to the financial integrity of the
494-22 utility.
494-23 (e) Costs of facilities, revenues, expenses, taxes, and
494-24 reserves shall be separated or allocated as prescribed by the
494-25 regulatory authority.
494-26 (f) In this section, "original cost" means the actual money
494-27 cost or the actual money value of consideration paid other than
495-1 money. (V.A.C.S. Art. 1446e, Sec. 5.05.)
495-2 Sec. 104.054. DEPRECIATION, AMORTIZATION, AND DEPLETION.
495-3 (a) The railroad commission shall establish proper and adequate
495-4 rates and methods of depreciation, amortization, or depletion for
495-5 each class of property of a gas utility or municipally owned
495-6 utility.
495-7 (b) The rates and methods established under this section and
495-8 the depreciation account required under Section 102.152 shall be
495-9 used uniformly and consistently throughout rate-setting and appeal
495-10 proceedings. (V.A.C.S. Art. 1446e, Secs. 4.01(b) (part), (f).)
495-11 Sec. 104.055. NET INCOME; ALLOWABLE EXPENSES. (a) Net
495-12 income shall be used to establish just and reasonable rates. For
495-13 that purpose, "net income" means the total revenues of the gas
495-14 utility from gas utility service less all reasonable and necessary
495-15 expenses related to that gas utility service. The regulatory
495-16 authority shall determine those revenues and expenses in a manner
495-17 consistent with this subchapter.
495-18 (b) In establishing a gas utility's rates, the regulatory
495-19 authority may not allow a gas utility's payment to an affiliate for
495-20 the cost of a service, property, right, or other item or for an
495-21 interest expense to be included as capital cost or as expense
495-22 related to gas utility service except to the extent that the
495-23 regulatory authority finds the payment is reasonable and necessary
495-24 for each item or class of items as determined by the regulatory
495-25 authority. That finding must include:
495-26 (1) a specific finding of the reasonableness and
495-27 necessity of each item or class of items allowed; and
496-1 (2) a finding that the price to the gas utility is not
496-2 higher than the prices charged by the supplying affiliate to its
496-3 other affiliates or divisions or to a nonaffiliated person for the
496-4 same item or class of items.
496-5 (c) If an expense is allowed to be included in utility
496-6 rates, or an investment is included in the utility rate base, the
496-7 related income tax deduction or benefit shall be included in the
496-8 computation of income tax expense to reduce the rates. If an
496-9 expense is disallowed or not included in utility rates, or an
496-10 investment is not included in the utility rate base, the related
496-11 income tax deduction or benefit may not be included in the
496-12 computation of income tax expense to reduce the rates. The income
496-13 tax expense shall be computed using the statutory income tax rates.
496-14 (d) The regulatory authority may adopt reasonable rules
496-15 complying with this section with respect to including and excluding
496-16 certain expenses in computing the rates to be established.
496-17 (e) This section is not intended to increase gas utility
496-18 rates to the customer arising from a cause other than utility
496-19 service. Utility rates may include only expenses arising from
496-20 providing utility service. (V.A.C.S. Art. 1446e, Sec. 5.06.)
496-21 Sec. 104.056. TREATMENT OF CERTAIN TAX BENEFITS. (a) In
496-22 determining the allocation of tax savings derived from liberalized
496-23 depreciation and amortization, the investment tax credit, and the
496-24 application of similar methods, the regulatory authority shall:
496-25 (1) balance equitably the interests of present and
496-26 future customers; and
496-27 (2) apportion accordingly the benefits between
497-1 consumers and the gas utility or municipally owned utility.
497-2 (b) If a gas utility or municipally owned utility retains a
497-3 portion of the investment tax credit, that portion shall be
497-4 deducted from the original cost of the facilities or other addition
497-5 to the rate base to which the credit applied to the extent allowed
497-6 by the Internal Revenue Code. (V.A.C.S. Art. 1446e, Secs. 4.01(e),
497-7 (f).)
497-8 Sec. 104.057. CONSIDERATION OF CERTAIN EXPENSES. (a) In
497-9 establishing a gas utility's rates, the regulatory authority may
497-10 not allow as a cost or expense an expenditure:
497-11 (1) described by Section 102.154 that the regulatory
497-12 authority determines to be not in the public interest; or
497-13 (2) for legislative advocacy.
497-14 (b) The regulatory authority may allow as a cost or expense
497-15 reasonable charitable or civic contributions not to exceed the
497-16 amount approved by the regulatory authority. (V.A.C.S. Art. 1446e,
497-17 Sec. 4.04 (part).)
497-18 Sec. 104.058. CONSIDERATION OF PROFIT OR LOSS FROM SALE OR
497-19 LEASE OF MERCHANDISE. In establishing a gas utility's or
497-20 municipally owned utility's rates, the regulatory authority may not
497-21 consider a profit or loss that results from the sale or lease of
497-22 merchandise, including appliances, fixtures, or equipment, to the
497-23 extent that merchandise is not integral to providing utility
497-24 service. (V.A.C.S. Art. 1446e, Secs. 4.01(c) (part), (f).)
497-25 (Sections 104.059-104.100 reserved for expansion)
497-26 SUBCHAPTER C. RATE CHANGES PROPOSED BY UTILITY
497-27 Sec. 104.101. DEFINITION. In this subchapter, "major
498-1 change" means an increase in rates that would increase the
498-2 aggregate revenues of the applicant more than the greater of
498-3 $100,000 or 2-1/2 percent. The term does not include an increase
498-4 in rates that the regulatory authority allows to go into effect or
498-5 the gas utility makes under an order of the regulatory authority
498-6 after hearings held with public notice. (V.A.C.S. Art. 1446e, Sec.
498-7 5.08(b) (part).)
498-8 Sec. 104.102. STATEMENT OF INTENT TO INCREASE RATES. (a) A
498-9 gas utility may not increase its rates unless the utility files a
498-10 statement of its intent with the regulatory authority that has
498-11 original jurisdiction over those rates at least 35 days before the
498-12 effective date of the proposed increase.
498-13 (b) The gas utility shall also mail or deliver a copy of the
498-14 statement of intent to the appropriate officer of each affected
498-15 municipality.
498-16 (c) The statement of intent must include:
498-17 (1) proposed revisions of tariffs and schedules; and
498-18 (2) a detailed statement of:
498-19 (A) each proposed increase;
498-20 (B) the effect the proposed increase is expected
498-21 to have on the revenues of the utility;
498-22 (C) each class and number of utility consumers
498-23 affected; and
498-24 (D) any other information required by the
498-25 regulatory authority's rules and regulations. (V.A.C.S.
498-26 Art. 1446e, Sec. 5.08(a) (part).)
498-27 Sec. 104.103. NOTICE OF INTENT TO INCREASE RATES. (a) The
499-1 gas utility shall:
499-2 (1) publish, in conspicuous form, notice to the public
499-3 of the proposed increase once each week for four successive weeks
499-4 in a newspaper having general circulation in each county containing
499-5 territory affected by the proposed increase; and
499-6 (2) provide notice of the proposed increase to any
499-7 other affected person as required by the regulatory authority's
499-8 rules.
499-9 (b) Instead of publishing newspaper notice, a gas utility
499-10 may provide notice to the public in an area outside the affected
499-11 municipality or in a municipality with a population of less than
499-12 2,500 by:
499-13 (1) mailing the notice by United States mail, postage
499-14 prepaid, to the billing address of each directly affected customer;
499-15 or
499-16 (2) including the notice, in conspicuous form, in the
499-17 bill of each directly affected customer. (V.A.C.S. Art. 1446e,
499-18 Sec. 5.08(a) (part).)
499-19 Sec. 104.104. EARLY EFFECTIVE DATE OF RATE INCREASE. (a)
499-20 For good cause shown, the regulatory authority may allow a rate
499-21 increase, other than a major change, to take effect:
499-22 (1) before the end of the 35-day period prescribed by
499-23 Section 104.102; and
499-24 (2) under conditions the regulatory authority
499-25 prescribes, subject to suspension as provided by this subchapter.
499-26 (b) The gas utility shall immediately revise its schedules
499-27 to include the increase. (V.A.C.S. Art. 1446e, Sec. 5.08(b)
500-1 (part).)
500-2 Sec. 104.105. DETERMINATION OF PROPRIETY OF RATE CHANGE;
500-3 HEARING. (a) If a schedule modifying or increasing rates is filed
500-4 with a regulatory authority, the regulatory authority shall, on
500-5 complaint by an affected person, or may, on its own motion, not
500-6 later than the 30th day after the effective date of the increase,
500-7 enter on a hearing to determine the propriety of the increase.
500-8 (b) The regulatory authority shall hold a hearing in every
500-9 case in which the increase constitutes a major change. The
500-10 regulatory authority may, however, use an informal proceeding if
500-11 the regulatory authority does not receive a complaint before the
500-12 expiration of 45 days after the date notice of the increase is
500-13 filed.
500-14 (c) The regulatory authority shall give reasonable notice of
500-15 the hearing, including notice to the governing body of each
500-16 affected municipality and county. The gas utility is not required
500-17 to provide a formal answer or file any other formal pleading in
500-18 response to the notice, and the absence of an answer does not
500-19 affect an order for a hearing. (V.A.C.S. Art. 1446e, Sec.
500-20 5.08(c).)
500-21 Sec. 104.106. PREFERENCE TO HEARING. The regulatory
500-22 authority shall:
500-23 (1) give preference to the hearing under this
500-24 subchapter and to deciding questions arising under this subchapter
500-25 over any other question pending before it; and
500-26 (2) decide the questions as quickly as possible.
500-27 (V.A.C.S. Art. 1446e, Sec. 5.08(d) (part).)
501-1 Sec. 104.107. RATE SUSPENSION; DEADLINE. (a) Pending the
501-2 hearing and a decision:
501-3 (1) the local regulatory authority, after delivering
501-4 to the gas utility a written statement of the regulatory
501-5 authority's reasons, may suspend the operation of the schedule for
501-6 not longer than 90 days after the date the schedule would
501-7 otherwise be effective; and
501-8 (2) the railroad commission may suspend the operation
501-9 of the schedule for not longer than 150 days after the date the
501-10 schedule would otherwise be effective.
501-11 (b) If the regulatory authority does not make a final
501-12 determination concerning a schedule of rates before expiration of
501-13 the applicable suspension period, the regulatory authority is
501-14 considered to have approved the schedule. This approval is subject
501-15 to the authority of the regulatory authority thereafter to continue
501-16 a hearing in progress. (V.A.C.S. Art. 1446e, Sec. 5.08(d) (part).)
501-17 Sec. 104.108. TEMPORARY RATES. (a) The regulatory
501-18 authority may establish temporary rates to be in effect during the
501-19 applicable suspension period under Section 104.107.
501-20 (b) If the regulatory authority does not establish temporary
501-21 rates, the rates in effect when the suspended schedule was filed
501-22 continue in effect during the suspension period. (V.A.C.S.
501-23 Art. 1446e, Sec. 5.08(d) (part).)
501-24 Sec. 104.109. BONDED RATES. (a) A gas utility may put a
501-25 changed rate into effect by filing a bond with the regulatory
501-26 authority if the regulatory authority fails to make a final
501-27 determination within 90 days from the date the proposed increase
502-1 would otherwise be effective.
502-2 (b) The bonded rate may not exceed the proposed rate.
502-3 (c) The bond must be:
502-4 (1) payable to the regulatory authority in an amount,
502-5 in a form, and with a surety approved by the regulatory authority;
502-6 and
502-7 (2) conditioned on refund.
502-8 (d) The gas utility shall refund or credit against future
502-9 bills:
502-10 (1) money collected under the bonded rates in excess
502-11 of the rate finally ordered; and
502-12 (2) interest on that money, at the current interest
502-13 rate as determined by the regulatory authority. (V.A.C.S.
502-14 Art. 1446e, Sec. 5.08(e).)
502-15 Sec. 104.110. ESTABLISHMENT OF FINAL RATES. (a) If, after
502-16 hearing, the regulatory authority finds the rates are unreasonable
502-17 or in violation of law, the regulatory authority shall:
502-18 (1) enter an order establishing the rates the gas
502-19 utility shall charge or apply for the service in question; and
502-20 (2) serve a copy of the order on the gas utility.
502-21 (b) The rates established in the order shall be observed
502-22 thereafter until changed as provided by this subtitle. (V.A.C.S.
502-23 Art. 1446e, Sec. 5.08(f).)
502-24 Sec. 104.111. APPROVAL OF DECREASE IN RATES.
502-25 Notwithstanding any other provision in this subtitle, the
502-26 regulatory authority may without reference to the cost of service
502-27 standard prescribed by Section 104.051, administratively approve a
503-1 decrease in rates proposed by the applicant and agreed on by each
503-2 party directly affected, unless the regulatory authority determines
503-3 that the proposed decrease is not in the public interest.
503-4 (V.A.C.S. Art. 1446e, Secs. 5.02(e), 5.03(b).)
503-5 (Sections 104.112-104.150 reserved for expansion)
503-6 SUBCHAPTER D. RATE CHANGES PROPOSED BY COMMISSION
503-7 Sec. 104.151. UNREASONABLE OR VIOLATIVE EXISTING RATES. (a)
503-8 If the regulatory authority, on its own motion or on complaint by
503-9 an affected person, after reasonable notice and hearing, finds that
503-10 the existing rates of a gas utility for a service are unreasonable
503-11 or in violation of law, the regulatory authority shall:
503-12 (1) enter an order establishing the just and
503-13 reasonable rates to be observed thereafter, including maximum or
503-14 minimum rates; and
503-15 (2) serve a copy of the order on the gas utility.
503-16 (b) The rates set under Subsection (a) constitute the legal
503-17 rates of the gas utility until changed as provided by this
503-18 subtitle. (V.A.C.S. Art. 1446e, Sec. 5.07(a).)
503-19 Sec. 104.152. INVESTIGATING COSTS OF OBTAINING SERVICE FROM
503-20 ANOTHER SOURCE. If a gas utility does not produce the service that
503-21 it distributes, transmits, or furnishes to the public for
503-22 compensation but obtains the service from another source, the
503-23 regulatory authority may investigate the cost of that production in
503-24 an investigation of the reasonableness of the gas utility's rates.
503-25 (V.A.C.S. Art. 1446e, Sec. 5.07(b).)
503-26 (Sections 104.153-104.200 reserved for expansion)
503-27 SUBCHAPTER E. RATES FOR GOVERNMENTAL ENTITIES
504-1 Sec. 104.201. TRANSPORTATION RATES BETWEEN GAS UTILITY OR
504-2 MUNICIPALLY OWNED UTILITY AND STATE AGENCY. (a) Notwithstanding
504-3 Section 104.003(b), absent a contract for transportation service
504-4 between a state agency and a gas utility or municipally owned
504-5 utility, the railroad commission, not later than the 210th day
504-6 after the date either party files a request to set a transportation
504-7 rate, shall establish the transportation rate for the state agency.
504-8 The commission has exclusive original jurisdiction to establish a
504-9 transportation rate for a state agency under this section.
504-10 (b) The railroad commission shall base its determination of
504-11 the transportation rate under Subsection (a) on the cost of
504-12 providing the transportation service for both the distribution
504-13 system and the transmission system, as applicable, of the gas
504-14 utility or municipally owned utility.
504-15 (c) The railroad commission may order temporary rates under
504-16 Subsection (a) as provided for under the commission's appellate
504-17 jurisdiction. (V.A.C.S. Art. 1446e, Sec. 5.02(c).)
504-18 Sec. 104.202. EXCLUDED EXPENSES. (a) The rates that a gas
504-19 utility or municipally owned utility charges a state agency may not
504-20 include an amount representing a gross receipts assessment,
504-21 regulatory assessment, or similar expense of the utility.
504-22 (b) An expense under Subsection (a) that is reasonable and
504-23 is not recovered from a state agency under this section may be
504-24 recovered from other customers of the gas utility or municipally
504-25 owned utility. (V.A.C.S. Art. 1446e, Sec. 5.061.)
504-26 Sec. 104.203. PAYMENT IN LIEU OF TAX. (a) A payment made
504-27 in lieu of a tax by a municipally owned utility to the municipality
505-1 by which the utility is owned may not be considered an expense of
505-2 operation in establishing the utility's rate for providing utility
505-3 service to a school district or hospital district.
505-4 (b) A rate a municipally owned utility receives from a
505-5 school district or hospital district may not be used to make or to
505-6 cover the cost of making payments in lieu of taxes to the
505-7 municipality that owns the utility. (V.A.C.S. Art. 1446e, Sec.
505-8 5.13.)
505-9 (Sections 104.204-104.250 reserved for expansion)
505-10 SUBCHAPTER F. SERVICES
505-11 Sec. 104.251. GENERAL STANDARD. A gas utility shall furnish
505-12 service, instrumentalities, and facilities that are safe, adequate,
505-13 efficient, and reasonable. (V.A.C.S. Art. 1446e, Sec. 4.09(a).)
505-14 Sec. 104.252. AUTHORITY OF REGULATORY AUTHORITY CONCERNING
505-15 STANDARDS. A regulatory authority, on its own motion or on
505-16 complaint and after reasonable notice and hearing, may:
505-17 (1) adopt just and reasonable standards,
505-18 classifications, regulations, or practices a gas utility must
505-19 follow in furnishing a service;
505-20 (2) adopt adequate and reasonable standards for
505-21 measuring a condition, including quantity, quality, and pressure
505-22 relating to the furnishing of a service;
505-23 (3) adopt reasonable regulations for examining,
505-24 testing, and measuring a service; and
505-25 (4) adopt or approve reasonable rules, regulations,
505-26 specifications, and standards to ensure the accuracy of equipment,
505-27 including meters and instruments, used to measure a service.
506-1 (V.A.C.S. Art. 1446e, Sec. 4.09(b).)
506-2 Sec. 104.253. RULE OR STANDARD. (a) A gas utility may file
506-3 with the regulatory authority a standard, classification,
506-4 regulation, or practice the utility follows.
506-5 (b) The standard, classification, regulation, or practice
506-6 continues in force until:
506-7 (1) amended by the utility; or
506-8 (2) changed by the regulatory authority as provided by
506-9 this subtitle. (V.A.C.S. Art. 1446e, Sec. 4.09(c).)
506-10 Sec. 104.254. SERVICE. A gas utility or municipally owned
506-11 utility may not refuse to provide service to a state agency if
506-12 pipeline capacity is available on an existing facility of the
506-13 utility. (V.A.C.S. Art. 1446e, Sec. 4.09(d).)
506-14 Sec. 104.255. BILLING. (a) A gas utility or municipally
506-15 owned utility may not bill or otherwise require the state or a
506-16 state agency or institution to pay for service before the service
506-17 is provided.
506-18 (b) The railroad commission shall adopt rules concerning
506-19 payment of bills by the state or a state agency to a gas utility or
506-20 municipally owned utility. The rules must be consistent with
506-21 Chapter 2251, Government Code.
506-22 (c) This subtitle does not prohibit a gas utility or
506-23 municipally owned utility from entering into an agreement with the
506-24 state or a state agency to establish a level or average monthly
506-25 service billing plan. An agreement under this subsection must
506-26 require reconciliation of the leveled or equalized bills quarterly.
506-27 (V.A.C.S. Art. 1446e, Secs. 10.05, 10.06.)
507-1 Sec. 104.256. EXAMINATION AND TEST OF INSTRUMENT OR
507-2 EQUIPMENT; INSPECTION. (a) A regulatory authority may:
507-3 (1) examine and test equipment, including meters and
507-4 instruments, used to measure service of a gas utility; and
507-5 (2) set up and use on the premises occupied by a gas
507-6 utility an apparatus or appliance necessary for the examination or
507-7 test.
507-8 (b) The gas utility is entitled to be represented at an
507-9 examination, test, or inspection made under this section.
507-10 (c) The gas utility and its officers and employees shall
507-11 facilitate the examination, test, or inspection by giving
507-12 reasonable aid to the regulatory authority and to any person
507-13 designated by the regulatory authority for the performance of those
507-14 duties. (V.A.C.S. Art. 1446e, Sec. 4.10(a) (part).)
507-15 Sec. 104.257. INSPECTION FOR CONSUMER. (a) A consumer may
507-16 have a meter or other measuring device tested by a gas utility:
507-17 (1) once without charge, after a reasonable period of
507-18 presumed accuracy that the regulatory authority establishes by
507-19 rule; and
507-20 (2) at a shorter interval on payment of a reasonable
507-21 fee established by the regulatory authority.
507-22 (b) The regulatory authority shall establish reasonable fees
507-23 to be paid for other examining or testing of a measuring device on
507-24 the request of a consumer.
507-25 (c) If the consumer requests the test under Subsection
507-26 (a)(2) and the measuring device is found unreasonably defective or
507-27 incorrect to the substantial disadvantage of the consumer, the fee
508-1 the consumer paid at the time of the request shall be refunded.
508-2 (V.A.C.S. Art. 1446e, Sec. 4.10(b).)
508-3 CHAPTER 105. JUDICIAL REVIEW; ENFORCEMENT AND PENALTIES
508-4 SUBCHAPTER A. JUDICIAL REVIEW
508-5 Sec. 105.001. RIGHT TO JUDICIAL REVIEW
508-6 Sec. 105.002. JUDICIAL STAY OR SUSPENSION
508-7 (Sections 105.003-105.020 reserved for expansion)
508-8 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
508-9 Sec. 105.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE
508-10 Sec. 105.022. CONTEMPT
508-11 Sec. 105.023. CIVIL PENALTY AGAINST GAS UTILITY OR AFFILIATE
508-12 Sec. 105.024. OFFENSE
508-13 Sec. 105.025. PLACE FOR SUIT
508-14 Sec. 105.026. PENALTIES CUMULATIVE
508-15 Sec. 105.027. DISPOSITION OF FINES AND PENALTIES
508-16 (Sections 105.028-105.050 reserved for expansion)
508-17 SUBCHAPTER C. COMPLAINTS
508-18 Sec. 105.051. COMPLAINT BY AFFECTED PERSON
508-19 CHAPTER 105. JUDICIAL REVIEW; ENFORCEMENT AND PENALTIES
508-20 SUBCHAPTER A. JUDICIAL REVIEW
508-21 Sec. 105.001. RIGHT TO JUDICIAL REVIEW. (a) Any party to a
508-22 proceeding before the railroad commission is entitled to judicial
508-23 review under the substantial evidence rule.
508-24 (b) The issue of confiscation is determined by a
508-25 preponderance of the evidence. (V.A.C.S. Art. 1446e, Sec. 8.01.)
508-26 Sec. 105.002. JUDICIAL STAY OR SUSPENSION. While an appeal
508-27 of an order, ruling, or decision of a regulatory authority is
509-1 pending, the district court, court of appeals, or supreme court, as
509-2 appropriate, may stay or suspend all or part of the operation of
509-3 the order, ruling, or decision. In granting or refusing a stay or
509-4 suspension, the court shall act in accordance with the practice of
509-5 a court exercising equity jurisdiction. (V.A.C.S. Art. 1446e, Sec.
509-6 10.03.)
509-7 (Sections 105.003-105.020 reserved for expansion)
509-8 SUBCHAPTER B. ENFORCEMENT AND PENALTIES
509-9 Sec. 105.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE. (a)
509-10 The attorney general, on the request of the railroad commission,
509-11 shall apply in the name of the commission for an order under
509-12 Subsection (b) if the commission determines that a gas utility or
509-13 other person is:
509-14 (1) engaging in or about to engage in an act that
509-15 violates this subtitle or an order or rule of the commission
509-16 entered or adopted under this subtitle; or
509-17 (2) failing to comply with the requirements of this
509-18 subtitle or a rule or order of the commission.
509-19 (b) A court, in an action under this section, may:
509-20 (1) prohibit the commencement or continuation of an
509-21 act that violates this subtitle or an order or rule of the
509-22 commission entered or adopted under this subtitle; or
509-23 (2) require compliance with a provision of this
509-24 subtitle or an order or rule of the commission.
509-25 (c) The remedy under this section is in addition to any
509-26 other remedy provided under this subtitle. (V.A.C.S. Art. 1446e,
509-27 Sec. 9.01.)
510-1 Sec. 105.022. CONTEMPT. The railroad commission may file an
510-2 action for contempt against a person who:
510-3 (1) fails to comply with a lawful order of the
510-4 commission;
510-5 (2) fails to comply with a subpoena or subpoena duces
510-6 tecum; or
510-7 (3) refuses to testify about a matter on which the
510-8 person may be lawfully interrogated. (V.A.C.S. Art. 1446e, Sec.
510-9 9.04.)
510-10 Sec. 105.023. CIVIL PENALTY AGAINST GAS UTILITY OR
510-11 AFFILIATE. (a) A gas utility or affiliate is subject to a civil
510-12 penalty if the gas utility or affiliate knowingly violates this
510-13 subtitle, fails to perform a duty imposed on it, or fails,
510-14 neglects, or refuses to obey an order, rule, direction, or
510-15 requirement of the railroad commission or a decree or judgment of a
510-16 court.
510-17 (b) A civil penalty under this section shall be in an amount
510-18 of not less than $1,000 and not more than $5,000 for each
510-19 violation.
510-20 (c) A gas utility or affiliate commits a separate violation
510-21 each day it continues to violate Subsection (a).
510-22 (d) The attorney general shall file in the name of the
510-23 railroad commission a suit on the attorney general's own initiative
510-24 or at the request of the commission to recover the civil penalty
510-25 under this section. (V.A.C.S. Art. 1446e, Sec. 9.02.)
510-26 Sec. 105.024. OFFENSE. (a) A person commits an offense if
510-27 the person knowingly violates this subtitle.
511-1 (b) An offense under this section is a felony of the third
511-2 degree. (V.A.C.S. Art. 1446e, Sec. 9.03(a).)
511-3 Sec. 105.025. PLACE FOR SUIT. A suit for an injunction or a
511-4 penalty under this subtitle may be brought in:
511-5 (1) Travis County;
511-6 (2) a county in which the violation is alleged to have
511-7 occurred; or
511-8 (3) a county in which a defendant resides. (V.A.C.S.
511-9 Art. 1446e, Sec. 9.06.)
511-10 Sec. 105.026. PENALTIES CUMULATIVE. (a) A penalty that
511-11 accrues under this subtitle is cumulative of any other penalty.
511-12 (b) A suit for the recovery of a penalty does not bar or
511-13 affect the recovery of any other penalty or bar a criminal
511-14 prosecution against any person, including a gas utility or officer,
511-15 director, agent, or employee of a gas utility. (V.A.C.S.
511-16 Art. 1446e, Sec. 9.03(b).)
511-17 Sec. 105.027. DISPOSITION OF FINES AND PENALTIES. A fine or
511-18 penalty collected under this subtitle, other than a fine or penalty
511-19 collected in a criminal proceeding, shall be paid to the railroad
511-20 commission. (V.A.C.S. Art. 1446e, Sec. 9.05.)
511-21 (Sections 105.028-105.050 reserved for expansion)
511-22 SUBCHAPTER C. COMPLAINTS
511-23 Sec. 105.051. COMPLAINT BY AFFECTED PERSON. An affected
511-24 person may complain to the regulatory authority in writing setting
511-25 forth an act or omission by a gas utility in violation or claimed
511-26 violation of a law that the regulatory authority has jurisdiction
511-27 to administer or of an order, ordinance, or rule of the regulatory
512-1 authority. (V.A.C.S. Art. 1446e, Sec. 10.01.)
512-2 (Chapters 106-120 reserved for expansion)
512-3 SUBTITLE B. REGULATION OF TRANSPORTATION AND USE
512-4 CHAPTER 121. GAS PIPELINES
512-5 SUBCHAPTER A. GAS UTILITY DEFINED
512-6 Sec. 121.001. DEFINITION OF GAS UTILITY
512-7 Sec. 121.002. AFFILIATE OF GAS UTILITY EXCLUDED
512-8 Sec. 121.003. AGRICULTURAL SERVICE EXCLUDED
512-9 Sec. 121.004. TRANSPORTATION OF GAS SOLELY FOR INTERSTATE
512-10 COMMERCE EXCLUDED
512-11 Sec. 121.005. TRANSPORTATION OF GAS IN VICINITY OF PLACE
512-12 OF PRODUCTION EXCLUDED
512-13 Sec. 121.006. VEHICLE FUEL EXCLUDED
512-14 (Sections 121.007-121.050 reserved for expansion)
512-15 SUBCHAPTER B. PUBLIC POLICY
512-16 Sec. 121.051. GAS UTILITY: PUBLIC INTEREST AND JURISDICTION
512-17 OF RAILROAD COMMISSION
512-18 Sec. 121.052. PIPELINES: MONOPOLIES SUBJECT TO RAILROAD
512-19 COMMISSION
512-20 (Sections 121.053-121.100 reserved for expansion)
512-21 SUBCHAPTER C. DUTIES OF GAS UTILITIES AND PIPELINES
512-22 Sec. 121.101. MAINTENANCE OF OFFICE AND RECORDS IN THIS
512-23 STATE
512-24 Sec. 121.102. OPERATOR'S REPORT
512-25 Sec. 121.103. DUTY TO SERVE CERTAIN USERS EXTINGUISHED
512-26 Sec. 121.104. DISCRIMINATION IN SERVICE AND CHARGES
512-27 PROHIBITED
513-1 (Sections 121.105-121.150 reserved for expansion)
513-2 SUBCHAPTER D. REGULATION BY RAILROAD COMMISSION
513-3 Sec. 121.151. RAILROAD COMMISSION REGULATION OF GAS
513-4 PIPELINES
513-5 Sec. 121.152. INITIATION OF REGULATORY PROCEEDING
513-6 Sec. 121.153. RAILROAD COMMISSION REVIEW OF GAS
513-7 PIPELINE ORDERS AND AGREEMENTS
513-8 Sec. 121.154. REFUND OF EXCESS CHARGES
513-9 Sec. 121.155. RATE REDUCTION OR DETERMINATION BY MUNICIPALITY
513-10 AND APPEAL
513-11 Sec. 121.156. RAILROAD COMMISSION REPORT
513-12 Sec. 121.157. RAILROAD COMMISSION EMPLOYEES
513-13 Sec. 121.158. PAYMENT FROM THE GENERAL REVENUE FUND
513-14 (Sections 121.159-121.200 reserved for expansion)
513-15 SUBCHAPTER E. PIPELINE SAFETY
513-16 Sec. 121.201. SAFETY RULES: RAILROAD COMMISSION POWER
513-17 Sec. 121.202. MUNICIPAL AND COUNTY AUTHORITY
513-18 Sec. 121.203. ENFORCEMENT: INJUNCTION
513-19 Sec. 121.204. CIVIL PENALTY
513-20 Sec. 121.205. SETTLEMENT BY ATTORNEY GENERAL
513-21 Sec. 121.206. ADMINISTRATIVE PENALTY FOR VIOLATION OF
513-22 PIPELINE SAFETY STANDARD OR RULE
513-23 Sec. 121.207. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
513-24 ASSESSMENT PROCEDURE
513-25 Sec. 121.208. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
513-26 PAYMENT OF PENALTY
513-27 Sec. 121.209. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
514-1 REFUND OF PAYMENT OR RELEASE OF BOND
514-2 Sec. 121.210. RECOVERY BY ATTORNEY GENERAL
514-3 (Sections 121.211-121.250 reserved for expansion)
514-4 SUBCHAPTER F. GAS SAFETY
514-5 Sec. 121.251. RAILROAD COMMISSION TO INVESTIGATE USE OF
514-6 GAS MALODORANTS
514-7 Sec. 121.252. REGULATION OF USE OF MALODORANTS
514-8 Sec. 121.253. INTERSTATE TRANSPORTATION OF GAS EXCLUDED
514-9 (Sections 121.254-121.300 reserved for expansion)
514-10 SUBCHAPTER G. ENFORCEMENT REMEDIES
514-11 Sec. 121.301. RECEIVERSHIP
514-12 Sec. 121.302. CIVIL PENALTY
514-13 Sec. 121.303. PENALTY RECOVERABLE BY VICTIM OF
514-14 DISCRIMINATION
514-15 Sec. 121.304. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
514-16 PENALTY
514-17 Sec. 121.305. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
514-18 PENALTY: ASSESSMENT PROCEDURE
514-19 Sec. 121.306. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
514-20 PENALTY: PAYMENT OF PENALTY
514-21 Sec. 121.307. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
514-22 PENALTY: APPEALS
514-23 Sec. 121.308. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
514-24 PENALTY: REFUND OF PAYMENT OR RELEASE OF
514-25 BOND
514-26 Sec. 121.309. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
514-27 PENALTY: RECOVERY
515-1 Sec. 121.310. CRIMINAL PENALTY
515-2 (Sections 121.311-121.400 reserved for expansion)
515-3 SUBCHAPTER H. APPEALS
515-4 Sec. 121.401. APPEAL TO COURT
515-5 Sec. 121.402. APPEAL: BURDEN AND STANDARD OF PROOF
515-6 Sec. 121.403. APPEAL FROM TRIAL COURT
515-7 CHAPTER 121. GAS PIPELINES
515-8 SUBCHAPTER A. GAS UTILITY DEFINED
515-9 Sec. 121.001. DEFINITION OF GAS UTILITY. (a) In this
515-10 chapter, "gas utility" means a person who owns, manages, operates,
515-11 leases, or controls in this state property or equipment or a
515-12 pipeline, plant, facility, franchise, license, or permit for a
515-13 business that:
515-14 (1) transports, conveys, distributes, or delivers
515-15 natural gas:
515-16 (A) for public use or service for compensation;
515-17 (B) for sale to municipalities or persons
515-18 engaged in distributing or selling natural gas to the public, in a
515-19 situation described by Subdivision (3);
515-20 (C) for sale or delivery to a person operating
515-21 under a franchise or contract with a political subdivision of this
515-22 state; or
515-23 (D) for sale or delivery to the public for
515-24 domestic or other use;
515-25 (2) owns, operates, or manages a pipeline:
515-26 (A) that is for transporting or carrying natural
515-27 gas, whether for public hire or not; and
516-1 (B) for which the right-of-way has been or is
516-2 hereafter acquired by exercising the right of eminent domain; or
516-3 (3) produces or purchases natural gas and transports
516-4 or causes the transportation of natural gas by a pipeline to or
516-5 near the limits of a municipality in which the gas is received and
516-6 distributed or sold to the public by another gas utility or by the
516-7 municipality in a situation in which the business is the only or
516-8 practically the only agency of supply of natural gas to the gas
516-9 utility or municipality.
516-10 (b) In this subchapter, "person" means an individual,
516-11 company, or private corporation and includes a lessee, trustee, or
516-12 receiver of an individual, company, or private corporation.
516-13 (V.A.C.S. Art. 6050, Secs. 1 (part), (a), (b), (c) (part).)
516-14 Sec. 121.002. AFFILIATE OF GAS UTILITY EXCLUDED. A person
516-15 is not a gas utility solely because the person is an affiliate of a
516-16 gas utility. (V.A.C.S. Art. 6050, Sec. 1(d).)
516-17 Sec. 121.003. AGRICULTURAL SERVICE EXCLUDED. (a) A person
516-18 who sells, transports, or delivers natural gas for a direct use in
516-19 an agricultural activity or sells, transports, delivers, or
516-20 otherwise makes available natural gas for fuel, either directly or
516-21 indirectly, to an owner of an irrigation well is not because of one
516-22 or more of these acts a gas utility, so as to make the person
516-23 subject to the jurisdiction, control, and regulation of the
516-24 railroad commission as a gas utility.
516-25 (b) In order for a person furnishing natural gas to qualify
516-26 for the exemption under Subsection (a), the person to whom the gas
516-27 was furnished under Subsection (a) shall use the gas exclusively to
517-1 pump water for farm and other agricultural purposes. (V.A.C.S.
517-2 Art. 6050, Secs. 2, 3 (part).)
517-3 Sec. 121.004. TRANSPORTATION OF GAS SOLELY FOR INTERSTATE
517-4 COMMERCE EXCLUDED. Except as provided by Section 121.001(a)(2), a
517-5 person is not a gas utility if the person certifies to the railroad
517-6 commission that the person transports natural or synthetic gas, for
517-7 sale, for hire, or otherwise, solely in, or in the vicinity of, the
517-8 field or fields where the gas is produced, to another person for
517-9 transportation or sale in interstate commerce. (V.A.C.S.
517-10 Art. 6050, Sec. 4(a) (part).)
517-11 Sec. 121.005. TRANSPORTATION OF GAS IN VICINITY OF PLACE OF
517-12 PRODUCTION EXCLUDED. (a) Except as provided by Section
517-13 121.001(a)(2), a person is not a gas utility if the person
517-14 certifies to the railroad commission that the person transports
517-15 natural or synthetic gas, for sale, for hire, or otherwise, solely:
517-16 (1) in, or in the vicinity of, the field or fields
517-17 where the gas is produced to a gas processing plant or treating
517-18 facility;
517-19 (2) from the outlet of a gas processing plant or
517-20 treating facility described by Subdivision (1) to a person:
517-21 (A) at, or in the vicinity of, the plant or
517-22 treating facility; or
517-23 (B) described by Subdivision (3) or Section
517-24 121.004; or
517-25 (3) to another person in, or in the vicinity of, the
517-26 field or fields where the gas is produced for transportation or
517-27 sale in intrastate commerce.
518-1 (b) A person is not a gas utility because the person
518-2 delivers or sells gas:
518-3 (1) for lease use, compressor fuel, processing plant
518-4 fuel, or a similar use;
518-5 (2) under a lease or right-of-way agreement;
518-6 (3) in, or in the vicinity of, the field where the gas
518-7 is produced; or
518-8 (4) at a processing plant outlet.
518-9 (c) Subsection (b) does not exclude as a gas utility a
518-10 pipeline that:
518-11 (1) transmits or distributes to end users of gas,
518-12 other than:
518-13 (A) those described by Subsection (b); or
518-14 (B) a person who qualifies for the exemption
518-15 provided by Section 121.003; or
518-16 (2) makes city-gate deliveries for local distribution.
518-17 (V.A.C.S. Art. 6050, Secs. 4(a) (part), (b).)
518-18 Sec. 121.006. VEHICLE FUEL EXCLUDED. A person is not a gas
518-19 utility to the extent that the person:
518-20 (1) sells natural gas for use as vehicle fuel;
518-21 (2) sells natural gas to a person who later sells the
518-22 natural gas for use as vehicle fuel; or
518-23 (3) owns or operates equipment or facilities to sell
518-24 or transport the natural gas for ultimate use as vehicle fuel.
518-25 (V.A.C.S. Art. 6050, Sec. 5.)
518-26 (Sections 121.007-121.050 reserved for expansion)
518-27 SUBCHAPTER B. PUBLIC POLICY
519-1 Sec. 121.051. GAS UTILITY: PUBLIC INTEREST AND JURISDICTION
519-2 OF RAILROAD COMMISSION. (a) A gas utility, including a business
519-3 described by Section 121.001(a)(3), is affected with a public
519-4 interest.
519-5 (b) A business described by Section 121.001(a)(3) is a
519-6 virtual monopoly.
519-7 (c) A business described by Section 121.001(a)(3) and the
519-8 property of the business used in this state is subject to the
519-9 jurisdiction, control, and regulation of the railroad commission as
519-10 provided by this chapter. (V.A.C.S. Art. 6050, Secs. 1(c) (part),
519-11 (e).)
519-12 Sec. 121.052. PIPELINES: MONOPOLIES SUBJECT TO RAILROAD
519-13 COMMISSION. (a) The operation of a pipeline for buying, selling,
519-14 transporting, producing, or otherwise dealing in natural gas is a
519-15 business which in its nature and according to the established
519-16 method of conducting the business is a monopoly.
519-17 (b) A business described by this section may not be
519-18 conducted unless the gas pipeline used in connection with the
519-19 business is subject to the jurisdiction conferred by this chapter
519-20 on the railroad commission.
519-21 (c) The attorney general shall enforce this section by
519-22 injunction or other remedy. (V.A.C.S. Art. 6051.)
519-23 (Sections 121.053-121.100 reserved for expansion)
519-24 SUBCHAPTER C. DUTIES OF GAS UTILITIES AND PIPELINES
519-25 Sec. 121.101. MAINTENANCE OF OFFICE AND RECORDS IN THIS
519-26 STATE. (a) A gas utility shall maintain an office in this state
519-27 in a county in which some part of the gas utility's property is
520-1 located. The gas utility shall keep in this office all books,
520-2 accounts, papers, records, vouchers, and receipts that the railroad
520-3 commission requires.
520-4 (b) A book, account, paper, record, receipt, voucher, or
520-5 other item of information required by the railroad commission to be
520-6 kept in this state may not be removed from this state except as
520-7 prescribed by the railroad commission. (V.A.C.S. Art. 6052.)
520-8 Sec. 121.102. OPERATOR'S REPORT. The railroad commission
520-9 may require a person or corporation that owns, controls, or
520-10 operates a pipeline subject to this chapter to make to the
520-11 commission a sworn report of any matter relating to the business of
520-12 the person or corporation that the commission determines to be
520-13 pertinent, including:
520-14 (1) the total quantity of gas distributed by the
520-15 pipelines;
520-16 (2) the total quantity of gas held in storage;
520-17 (3) the source of supply of gas;
520-18 (4) the number of wells from which the person or
520-19 corporation draws its supply;
520-20 (5) the amount of pipeline pressure maintained; and
520-21 (6) the amount and character and description of the
520-22 equipment used. (V.A.C.S. Art. 6056.)
520-23 Sec. 121.103. DUTY TO SERVE CERTAIN USERS EXTINGUISHED. (a)
520-24 A gas utility that provides gas to a customer does not have an
520-25 obligation to serve the customer or to maintain the gas supply or
520-26 physical capacity to serve the customer if the customer:
520-27 (1) is a transportation, industrial, or other similar
521-1 large-volume contract customer;
521-2 (2) is an end-use customer of the gas utility;
521-3 (3) reduces or ceases the purchase of natural gas or
521-4 natural gas service from the gas utility; and
521-5 (4) purchases natural gas or natural gas service from
521-6 another supplier or purchases an alternate form of energy.
521-7 (b) Subsection (a) does not apply to the extent that:
521-8 (1) the customer continues to purchase natural gas or
521-9 natural gas service of any class from the gas utility; or
521-10 (2) the gas utility has a written contract to provide
521-11 natural gas or natural gas service of any class to the customer.
521-12 (c) This section does not prevent the railroad commission
521-13 from requiring a gas utility to comply with an order of the
521-14 railroad commission in apportioning gas under a curtailment plan
521-15 and order. (V.A.C.S. Art. 6053, Sec. 1(c).)
521-16 Sec. 121.104. DISCRIMINATION IN SERVICE AND CHARGES
521-17 PROHIBITED. (a) A pipeline gas utility may not:
521-18 (1) discriminate in favor of or against any person or
521-19 place in:
521-20 (A) apportioning the supply of natural gas; or
521-21 (B) charging for natural gas; or
521-22 (2) directly or indirectly charge, demand, collect, or
521-23 receive from anyone a greater or lesser compensation for a service
521-24 provided than the compensation charged, demanded, or received from
521-25 another for a similar and contemporaneous service.
521-26 (b) This section does not limit the right of the railroad
521-27 commission to prescribe:
522-1 (1) different rates and rules for the use of natural
522-2 gas for manufacturing and similar purposes; or
522-3 (2) rates and rules for service from or to other or
522-4 different places. (V.A.C.S. Arts. 6057, 6057a.)
522-5 (Sections 121.105-121.150 reserved for expansion)
522-6 SUBCHAPTER D. REGULATION BY RAILROAD COMMISSION
522-7 Sec. 121.151. RAILROAD COMMISSION REGULATION OF GAS
522-8 PIPELINES. The railroad commission shall:
522-9 (1) establish and enforce the adequate and reasonable
522-10 price of gas and fair and reasonable rates of charges and rules for
522-11 transporting, producing, distributing, buying, selling, and
522-12 delivering gas by pipelines subject to this chapter in this state;
522-13 (2) establish fair and equitable rules for the full
522-14 control and supervision of the pipelines subject to this chapter
522-15 and all their holdings pertaining to the gas business in all their
522-16 relations to the public, as the railroad commission determines to
522-17 be proper;
522-18 (3) establish a fair and equitable division of the
522-19 proceeds of the sale of gas between the companies transporting or
522-20 producing the gas and the companies distributing or selling it;
522-21 (4) prescribe and enforce rules for the government and
522-22 control of pipelines subject to this chapter in respect to their
522-23 pipelines and producing, receiving, transporting, and distributing
522-24 facilities;
522-25 (5) regulate and apportion the supply of gas between
522-26 municipalities and between municipalities and corporations; and
522-27 (6) prescribe fair and reasonable rules requiring
523-1 pipelines subject to this chapter to augment their supply of gas,
523-2 when:
523-3 (A) the supply of gas controlled by any gas
523-4 pipeline is inadequate; and
523-5 (B) the railroad commission determines that
523-6 augmentation is practicable. (V.A.C.S. Art. 6053, Sec. 1(a)
523-7 (part).)
523-8 Sec. 121.152. INITIATION OF REGULATORY PROCEEDING. The
523-9 railroad commission shall exercise power under Section 121.151:
523-10 (1) on:
523-11 (A) its own motion;
523-12 (B) the petition of a person or county
523-13 commissioner's precinct showing a substantial interest in the
523-14 subject;
523-15 (C) the petition of the attorney general; or
523-16 (D) the petition of a district or county
523-17 attorney of a county in which any portion of a business subject to
523-18 this chapter is conducted; and
523-19 (2) after notice has been given. (V.A.C.S. Art. 6053,
523-20 Sec. 1(a) (part).)
523-21 Sec. 121.153. RAILROAD COMMISSION REVIEW OF GAS PIPELINE
523-22 ORDERS AND AGREEMENTS. The railroad commission, after notice to a
523-23 person or corporation owning, controlling, or operating a pipeline
523-24 subject to this chapter and after a hearing, may review, revise,
523-25 and regulate an order or agreement that is made by the person or
523-26 corporation and establishes a price, rate, rule, regulation, or
523-27 condition of service. (V.A.C.S. Art. 6054.)
524-1 Sec. 121.154. REFUND OF EXCESS CHARGES. (a) On a complaint
524-2 against a person or corporation owning or operating a pipeline
524-3 business subject to this chapter filed by any person authorized by
524-4 Section 121.152 to file a petition and complaint and sustained in
524-5 whole or in part by the railroad commission, each customer of the
524-6 pipeline is entitled to reparation for or reimbursement of a rate
524-7 or charge made or adopted by the pipeline for a purpose relating to
524-8 the operation of that business, including a rate or charge for gas,
524-9 service, or meter rental, or in the event of an inadequate supply
524-10 of gas or inadequate service in any respect.
524-11 (b) The amount recoverable under Subsection (a) is the
524-12 amount paid after the filing of the complaint in excess of the
524-13 proper rate or charge of the pipeline as finally determined by the
524-14 railroad commission. (V.A.C.S. Art. 6055.)
524-15 Sec. 121.155. RATE REDUCTION OR DETERMINATION BY
524-16 MUNICIPALITY AND APPEAL. A gas utility the rates of which have
524-17 been reduced by a municipality may appeal the municipal order,
524-18 decision, regulation, or ordinance to the railroad commission. The
524-19 appeal is initiated by filing with the railroad commission in the
524-20 manner and on the conditions that the railroad commission may
524-21 direct a petition for review and a bond. The appeal is de novo.
524-22 The railroad commission shall set a hearing and may make any order
524-23 or decision in relation to the matter appealed that the commission
524-24 considers just and reasonable. To change a rate, rental, or
524-25 charge, a gas utility that is a local distributing company or
524-26 concern and the rates of which have been established by a
524-27 municipality must submit an application to the municipality in
525-1 which the utility is located. The municipality shall make a
525-2 determination on an application not later than the 60th day after
525-3 the date the application is filed. If the municipality rejects the
525-4 application or fails or refuses to act on the application on or
525-5 before the deadline prescribed by this section, the gas utility may
525-6 appeal to the railroad commission as provided by this section. The
525-7 railroad commission shall make a determination on the appeal not
525-8 later than the 60th day after the date the appeal is filed unless
525-9 the gas utility agrees in writing to a longer period. The rates
525-10 established by the municipality remain in effect until changed by
525-11 the railroad commission. (V.A.C.S. Art. 6058.)
525-12 Sec. 121.156. RAILROAD COMMISSION REPORT. (a) On December
525-13 1 of each year, the railroad commission shall report to the
525-14 governor, fully and in detail, on:
525-15 (1) the proceedings of the railroad commission with
525-16 respect to gas utilities;
525-17 (2) the receipts and sources of gross income taxes;
525-18 and
525-19 (3) the amount and nature of expenditures made under
525-20 and in accordance with this chapter, including the names, titles,
525-21 nature of employment, and salaries of and payments made to each
525-22 person employed under the terms of this chapter with a statement of
525-23 the travel and other expenses incurred by each of those persons and
525-24 approved by the railroad commission.
525-25 (b) The governor shall send the report to the legislature at
525-26 the first legislative session after the governor receives the
525-27 report. (V.A.C.S. Art. 6061.)
526-1 Sec. 121.157. RAILROAD COMMISSION EMPLOYEES. (a) The
526-2 railroad commission may employ or appoint persons as necessary to:
526-3 (1) inspect and audit records or receipts,
526-4 disbursements, vouchers, prices, payrolls, time cards, and books;
526-5 (2) inspect the property and records of a gas utility
526-6 subject to this chapter; and
526-7 (3) perform other services as directed by, or under
526-8 the authority of, the railroad commission.
526-9 (b) The railroad commission shall set the amount of
526-10 compensation for persons employed by the railroad commission.
526-11 (c) The chief supervisor of the oil and gas division of the
526-12 railroad commission shall assist the railroad commission in the
526-13 performance of the railroad commission's duties under this chapter,
526-14 as directed by, and under the rules of, the railroad commission.
526-15 (V.A.C.S. Arts. 6064, 6065.)
526-16 Sec. 121.158. PAYMENT FROM THE GENERAL REVENUE FUND. All
526-17 expenses, including witness fees and mileage, employee wages and
526-18 fees, and the salary and expenses of the chief supervisor of the
526-19 oil and gas division of the railroad commission incurred by or
526-20 under authority of the railroad commission or a railroad
526-21 commissioner in administering and enforcing, or exercising a power
526-22 under, this chapter shall be paid from the general revenue fund.
526-23 (V.A.C.S. Art. 6066 (part).)
526-24 (Sections 121.159-121.200 reserved for expansion)
526-25 SUBCHAPTER E. PIPELINE SAFETY
526-26 Sec. 121.201. SAFETY RULES: RAILROAD COMMISSION POWER. (a)
526-27 The railroad commission by rule may:
527-1 (1) adopt safety standards for the transportation of
527-2 gas and for gas pipeline facilities;
527-3 (2) require record maintenance and reports;
527-4 (3) inspect records and facilities to determine
527-5 compliance with adopted safety standards; and
527-6 (4) make certifications and reports and take any other
527-7 requisite action in accordance with Chapter 601, Title 49, United
527-8 States Code (49 U.S.C. Section 60101 et seq.), or a succeeding law.
527-9 (b) The power granted by Subsection (a) does not apply to
527-10 the transportation of gas or to gas facilities subject to the
527-11 exclusive control of the United States but applies to the
527-12 transportation of gas and gas pipeline facilities in this state to
527-13 the maximum degree permissible under Chapter 601, Title 49, United
527-14 States Code (49 U.S.C. Section 60101 et seq.), or a succeeding law.
527-15 (c) A term that is used in this section and defined by
527-16 Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
527-17 et seq.), or a succeeding law has the meaning assigned by that
527-18 chapter or the succeeding law. (V.A.C.S. Art. 6053-1, Subsecs.
527-19 (A), (B).)
527-20 Sec. 121.202. MUNICIPAL AND COUNTY AUTHORITY. (a) A
527-21 municipality or a county may not adopt or enforce an ordinance that
527-22 establishes a safety standard or practice applicable to a facility
527-23 that is regulated under this subchapter, another state law, or a
527-24 federal law.
527-25 (b) Except as provided by Subsection (a), this subchapter
527-26 does not reduce, limit, or impair:
527-27 (1) a power vested by law in:
528-1 (A) a county in relation to a county road; or
528-2 (B) a municipality; or
528-3 (2) the ability of a municipality to:
528-4 (A) adopt an ordinance that establishes
528-5 conditions for mapping, inventorying, installing, or relocating
528-6 pipelines over, under, along, or across a public street or alley or
528-7 private residential area in the boundaries of the municipality; or
528-8 (B) establish conditions for mapping or taking
528-9 an inventory in an area in a municipality's extraterritorial
528-10 jurisdiction. (V.A.C.S. Art. 6053-1, Subsec. (D).)
528-11 Sec. 121.203. ENFORCEMENT: INJUNCTION. The attorney
528-12 general, on behalf of the railroad commission, is entitled to
528-13 injunctive relief to restrain a violation of a safety standard
528-14 adopted under this subchapter, including an injunction that
528-15 restrains the transportation of gas or the operation of a pipeline
528-16 facility. (V.A.C.S. Art. 6053-1, Subsec. (C) (part).)
528-17 Sec. 121.204. CIVIL PENALTY. Each day of each violation of
528-18 a safety standard adopted under this subchapter is subject to a
528-19 civil penalty of not more than $25,000, except that the maximum
528-20 penalty that may be assessed for any related series of violations
528-21 may not exceed $500,000. The penalty is payable to the state.
528-22 (V.A.C.S. Art. 6053-1, Subsec. (C) (part).)
528-23 Sec. 121.205. SETTLEMENT BY ATTORNEY GENERAL. A civil
528-24 penalty under Section 121.204 may be compromised by the attorney
528-25 general who in determining a compromise shall consider:
528-26 (1) the appropriateness of the penalty in relation to
528-27 the size of the business of the person charged;
529-1 (2) the gravity of the violation; and
529-2 (3) the good faith of the person charged in attempting
529-3 to achieve compliance after notification of the violation.
529-4 (V.A.C.S. Art. 6053-1, Subsec. (C) (part).)
529-5 Sec. 121.206. ADMINISTRATIVE PENALTY FOR VIOLATION OF
529-6 PIPELINE SAFETY STANDARD OR RULE. (a) The railroad commission may
529-7 assess an administrative penalty against a person who violates
529-8 Section 121.201 or a safety standard or rule relating to the
529-9 transportation of gas and gas pipeline facilities adopted under
529-10 that section.
529-11 (b) The penalty for each violation may not exceed $10,000.
529-12 Each day a violation continues may be considered a separate
529-13 violation for the purpose of penalty assessment.
529-14 (c) In determining the amount of the penalty, the railroad
529-15 commission shall consider:
529-16 (1) the person's history of previous violations of
529-17 Section 121.201 or a safety standard or rule relating to the
529-18 transportation of gas and gas pipeline facilities adopted under
529-19 that section;
529-20 (2) the seriousness of the violation; and
529-21 (3) any hazard to the health or safety of the public.
529-22 (V.A.C.S. Art. 6053-2, Secs. (a), (b), (c).)
529-23 Sec. 121.207. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
529-24 ASSESSMENT PROCEDURE. (a) An administrative penalty may be
529-25 assessed only after a person charged under Section 121.206 has been
529-26 given an opportunity for a public hearing.
529-27 (b) If a public hearing is held, the railroad commission
530-1 shall make findings of fact and shall issue a written decision as
530-2 to the occurrence of the violation and the penalty amount warranted
530-3 by the violation, incorporating, if appropriate, an order requiring
530-4 that the penalty be paid.
530-5 (c) If appropriate, the railroad commission shall
530-6 consolidate the hearings with other proceedings under Section
530-7 121.206.
530-8 (d) If a person charged under Section 121.206 fails to take
530-9 advantage of the opportunity for a public hearing, an
530-10 administrative penalty may be assessed by the railroad commission
530-11 after it has determined:
530-12 (1) that a violation occurred; and
530-13 (2) the penalty amount warranted by the violation.
530-14 (e) After assessing an administrative penalty, the railroad
530-15 commission shall issue an order requiring the penalty to be paid.
530-16 (f) Not later than the 30th day after the date an order is
530-17 issued finding that a violation described under Section 121.206
530-18 occurred, the railroad commission shall inform the person found in
530-19 violation of the amount of the penalty. (V.A.C.S. Art. 6053-2,
530-20 Secs. (d), (e), (f), (g), (h), (i).)
530-21 Sec. 121.208. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
530-22 PAYMENT OF PENALTY. Not later than the 30th day after the date the
530-23 railroad commission's decision or order imposing an administrative
530-24 penalty becomes final as provided by Section 2001.144, Government
530-25 Code, the person charged with the violation shall:
530-26 (1) pay the penalty in full; or
530-27 (2) if the person seeks judicial review of either the
531-1 amount of the penalty or the fact of the violation, or both:
531-2 (A) pay the penalty to the railroad commission
531-3 for placement in an escrow account; or
531-4 (B) give to the railroad commission a
531-5 supersedeas bond in a form approved by the railroad commission for
531-6 the amount of the penalty that is effective until all judicial
531-7 review of the order or decision is final. (V.A.C.S. Art. 6053-2,
531-8 Sec. (j).)
531-9 Sec. 121.209. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
531-10 REFUND OF PAYMENT OR RELEASE OF BOND. If through judicial review
531-11 of a decision or order regarding an administrative penalty it is
531-12 determined that a violation did not occur or that the amount of the
531-13 penalty should be reduced or not assessed, the railroad commission
531-14 shall, not later than the 30th day after the date of that
531-15 determination:
531-16 (1) remit the appropriate amount to the person, with
531-17 accrued interest if the utility paid the penalty to the railroad
531-18 commission; or
531-19 (2) execute a release of the bond if the utility
531-20 posted a supersedeas bond. (V.A.C.S. Art. 6053-2, Sec. (k).)
531-21 Sec. 121.210. RECOVERY BY ATTORNEY GENERAL. An
531-22 administrative penalty owed under Sections 121.206-121.208 may be
531-23 recovered in a civil action brought by the attorney general at the
531-24 request of the railroad commission. (V.A.C.S. Art. 6053-2, Sec.
531-25 (m).)
531-26 (Sections 121.211-121.250 reserved for expansion)
531-27 SUBCHAPTER F. GAS SAFETY
532-1 Sec. 121.251. RAILROAD COMMISSION TO INVESTIGATE USE OF GAS
532-2 MALODORANTS. The railroad commission shall investigate the use of
532-3 malodorants by a person, firm, or corporation in the business of:
532-4 (1) handling, storing, selling, or distributing
532-5 natural or liquefied petroleum gases, including butane and other
532-6 odorless gases, for private or commercial uses; or
532-7 (2) supplying these products to a public building or
532-8 the general public. (V.A.C.S. Art. 6053, Sec. 2 (part).)
532-9 Sec. 121.252. REGULATION OF USE OF MALODORANTS. (a) The
532-10 railroad commission, by rule as necessary to carry out the purposes
532-11 of this section, may:
532-12 (1) require a person, firm, or corporation subject to
532-13 Section 121.251 to odorize the gas by using a malodorant agent that
532-14 indicates the presence of gas by a distinctive odor;
532-15 (2) regulate the method of the use of malodorants; and
532-16 (3) direct and approve the use of containers and
532-17 other equipment used in connection with malodorants.
532-18 (b) A required malodorant agent must be:
532-19 (1) nontoxic and noncorrosive; and
532-20 (2) not harmful to leather diaphragms in gas
532-21 equipment. (V.A.C.S. Art. 6053, Sec. 2 (part).)
532-22 Sec. 121.253. INTERSTATE TRANSPORTATION OF GAS EXCLUDED.
532-23 This subchapter does not apply to gas transported out of this
532-24 state. (V.A.C.S. Art. 6053, Sec. 2 (part).)
532-25 (Sections 121.254-121.300 reserved for expansion)
532-26 SUBCHAPTER G. ENFORCEMENT REMEDIES
532-27 Sec. 121.301. RECEIVERSHIP. (a) On application of the
533-1 railroad commission, a court having jurisdiction to appoint a
533-2 receiver may appoint a receiver to control and manage, under the
533-3 direction of the court, the property of a pipeline subject to this
533-4 chapter if the person or corporation owning, operating, or
533-5 controlling the pipeline violates this chapter or a rule of the
533-6 railroad commission.
533-7 (b) The railroad commission may apply for a receivership
533-8 only if the railroad commission determines that the public interest
533-9 requires a receivership.
533-10 (c) The grounds for the appointment of a receiver under this
533-11 section are in addition to any other ground provided by law.
533-12 (V.A.C.S. Art. 6063.)
533-13 Sec. 121.302. CIVIL PENALTY. (a) A gas utility is subject
533-14 to a civil penalty if the gas utility:
533-15 (1) violates this chapter;
533-16 (2) fails to perform a duty imposed by this chapter;
533-17 or
533-18 (3) fails to comply with an order of the railroad
533-19 commission if the order is not stayed or suspended by a court
533-20 order. A penalty under this section is payable to the state and
533-21 shall be not less than $100 and not more than $1,000 for each
533-22 violation or failure.
533-23 (b) Each violation and each day that the failure continues
533-24 is subject to a separate penalty. (V.A.C.S. Art. 6062 (part).)
533-25 Sec. 121.303. PENALTY RECOVERABLE BY VICTIM OF
533-26 DISCRIMINATION. (a) A penalty of not less than $100 and not more
533-27 than $1,000 for each violation is recoverable by any person against
534-1 whom discrimination prohibited by Section 121.104 is committed.
534-2 (b) A suit to collect a penalty under this section must be
534-3 brought in the name of and for the benefit of the person aggrieved.
534-4 (c) A person who recovers a penalty under this section is
534-5 also entitled to reasonable attorney's fees.
534-6 (d) The penalty under this section is in addition to a
534-7 penalty under Section 121.302. (V.A.C.S. Art. 6062 (part).)
534-8 Sec. 121.304. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
534-9 PENALTY. (a) The railroad commission may assess an administrative
534-10 penalty against a gas utility that violates this chapter, fails to
534-11 perform a duty imposed by this chapter, or fails to comply with an
534-12 order of the railroad commission issued under this chapter and
534-13 applicable to the gas utility if the violation:
534-14 (1) results in pollution of the air or water of this
534-15 state; or
534-16 (2) poses a threat to the public safety.
534-17 (b) The penalty for each violation or failure may not exceed
534-18 $10,000 a day. Each day a violation continues may be considered a
534-19 separate violation for purposes of penalty assessment.
534-20 (c) In determining the amount of the penalty, the railroad
534-21 commission shall consider:
534-22 (1) the gas utility's history of previous violations
534-23 of this chapter;
534-24 (2) the seriousness of the violation; and
534-25 (3) any hazard to the health or safety of the public.
534-26 (V.A.C.S. Art. 6062A, Secs. (a), (b), (c).)
534-27 Sec. 121.305. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
535-1 PENALTY: ASSESSMENT PROCEDURE. (a) An administrative penalty may
535-2 be assessed under Section 121.304 only after a gas utility charged
535-3 under Section 121.304 has been given an opportunity for a public
535-4 hearing.
535-5 (b) If a public hearing is held, the railroad commission
535-6 shall make findings of fact and shall issue a written decision as
535-7 to the occurrence of the violation and the penalty amount warranted
535-8 by the violation, incorporating, if appropriate, an order requiring
535-9 that the penalty be paid.
535-10 (c) If appropriate, the railroad commission shall
535-11 consolidate the hearings with other proceedings under Section
535-12 121.304.
535-13 (d) If a gas utility charged under Section 121.304 fails to
535-14 take advantage of the opportunity for a public hearing, an
535-15 administrative penalty may be assessed by the railroad commission
535-16 after it has determined:
535-17 (1) that a violation occurred; and
535-18 (2) the penalty amount warranted by the violation.
535-19 (e) After assessing an administrative penalty, the railroad
535-20 commission shall issue an order requiring the penalty to be paid.
535-21 (f) Not later than the 30th day after the date an order is
535-22 issued finding that a violation described under Section 121.304
535-23 occurred, the railroad commission shall inform the gas utility
535-24 found in violation of the amount of the penalty. (V.A.C.S.
535-25 Art. 6062A, Secs. (d), (e), (f), (g), (h), (i).)
535-26 Sec. 121.306. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
535-27 PENALTY: PAYMENT OF PENALTY. (a) Not later than the 30th day
536-1 after the date the railroad commission's decision or order imposing
536-2 an administrative penalty becomes final as provided by Section
536-3 2001.144, Government Code, the gas utility charged with the
536-4 violation shall:
536-5 (1) pay the penalty in full; or
536-6 (2) if the gas utility seeks judicial review of either
536-7 the amount of the penalty or the fact of the violation, or both:
536-8 (A) pay the penalty to the railroad commission
536-9 for placement in an escrow account; or
536-10 (B) except as provided by Subsection (b), give
536-11 to the railroad commission a supersedeas bond, in the amount of the
536-12 penalty and in the form approved by the railroad commission, to
536-13 stay the collection of the penalty until all judicial review of the
536-14 order or decision is final.
536-15 (b) If the gas utility is appealing a second or subsequent
536-16 decision or order assessing an administrative penalty against the
536-17 gas utility, regardless of the finality of judicial review of any
536-18 previous decision or order, the railroad commission may, but is not
536-19 required to, accept a supersedeas bond. (V.A.C.S. Art. 6062A, Sec.
536-20 (j).)
536-21 Sec. 121.307. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
536-22 PENALTY: APPEALS. (a) The district courts of Travis County have
536-23 exclusive jurisdiction of the appeal of an order or decision of the
536-24 railroad commission assessing an administrative penalty under
536-25 Section 121.304.
536-26 (b) Subchapter G, Chapter 2001, Government Code, and the
536-27 substantial evidence rule apply to an appeal under this section.
537-1 (V.A.C.S. Art. 6062A, Sec. (n).)
537-2 Sec. 121.308. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
537-3 PENALTY: REFUND OF PAYMENT OR RELEASE OF BOND. If through
537-4 judicial review of a decision or order regarding an administrative
537-5 penalty it is determined that a violation did not occur or that the
537-6 amount of the penalty should be reduced or not assessed, the
537-7 railroad commission shall, not later than the 30th day after the
537-8 date of that determination:
537-9 (1) remit the appropriate amount to the gas utility
537-10 with accrued interest if the utility paid the penalty to the
537-11 railroad commission; or
537-12 (2) execute a release of the bond if the utility
537-13 posted a supersedeas bond. (V.A.C.S. Art. 6062A, Sec. (k).)
537-14 Sec. 121.309. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
537-15 PENALTY: RECOVERY. An administrative penalty owed under Sections
537-16 121.304-121.308 may be recovered in a civil action brought by the
537-17 attorney general at the request of the railroad commission.
537-18 (V.A.C.S. Art. 6062A, Sec. (m).)
537-19 Sec. 121.310. CRIMINAL PENALTY. (a) A person commits an
537-20 offense if:
537-21 (1) the person is an owner, officer, director, agent,
537-22 or employee of a person or corporation owning, operating, or
537-23 controlling a pipeline of a gas utility; and
537-24 (2) the person wilfully violates this chapter or
537-25 Chapter 122.
537-26 (b) An offense under this section is punishable by a fine of
537-27 not less than $50 and not more than $1,000. In addition to the
538-1 fine, the offense may be punishable by confinement in jail for not
538-2 less than 10 days nor more than six months. (V.A.C.S. Art. 6057b.)
538-3 (Sections 121.311-121.400 reserved for expansion)
538-4 SUBCHAPTER H. APPEALS
538-5 Sec. 121.401. APPEAL TO COURT. (a) A gas utility or other
538-6 party at interest may appeal to a court a decision of any rate,
538-7 classification, rule, charge, order, or act adopted by the railroad
538-8 commission by filing a petition against the railroad commission as
538-9 defendant and specifying each particular reason for objection.
538-10 (b) An action under this section is tried and determined as
538-11 are other civil causes in the court except as provided by Section
538-12 121.402. (V.A.C.S. Art. 6059 (part).)
538-13 Sec. 121.402. APPEAL: BURDEN AND STANDARD OF PROOF. In a
538-14 trial under this subchapter, the burden of proof is on the
538-15 plaintiff, who must show by clear and satisfactory evidence that
538-16 the rate, rule, order, classification, act, or charge that is the
538-17 subject of the complaint is unreasonable and unjust to the
538-18 plaintiff. (V.A.C.S. Art. 6059 (part).)
538-19 Sec. 121.403. APPEAL FROM TRIAL COURT. An appeal from an
538-20 action under Section 121.402:
538-21 (1) is at once returnable to the appellate court; and
538-22 (2) has precedence in the appellate court over each
538-23 other pending cause of a different character. (V.A.C.S. Art. 6059
538-24 (part).)
538-25 CHAPTER 122. GAS UTILITY PIPELINE TAX
538-26 SUBCHAPTER A. DEFINITIONS
538-27 Sec. 122.001. DEFINITIONS
539-1 (Sections 122.002-122.050 reserved for expansion)
539-2 SUBCHAPTER B. TAX IMPOSED
539-3 Sec. 122.051. TAX IMPOSED; RATE
539-4 Sec. 122.052. DEDUCTION OF CERTAIN COSTS
539-5 (Sections 122.053-122.100 reserved for expansion)
539-6 SUBCHAPTER C. PAYMENTS, REPORTS, AND RECORDS
539-7 Sec. 122.101. TAX PAYMENT
539-8 Sec. 122.102. REPORT
539-9 Sec. 122.103. PAYMENT AND REPORT DEADLINE
539-10 Sec. 122.104. RECORDS
539-11 (Sections 122.105-122.150 reserved for expansion)
539-12 SUBCHAPTER D. ADMINISTRATION
539-13 Sec. 122.151. ADMINISTRATION BY RAILROAD COMMISSION
539-14 Sec. 122.152. EXAMINATION OF RECORDS AND PERSON DOING
539-15 BUSINESS IN THIS STATE
539-16 (Sections 122.153-122.200 reserved for expansion)
539-17 SUBCHAPTER E. PENALTIES AND INTEREST
539-18 Sec. 122.201. PENALTY FOR FAILURE TO REPORT TAX
539-19 Sec. 122.202. PENALTY FOR FAILURE TO PAY TAX
539-20 Sec. 122.203. PENALTY FOR FAILURE TO REPORT AND PAY TAX
539-21 Sec. 122.204. MINIMUM PENALTY
539-22 Sec. 122.205. INTEREST
539-23 CHAPTER 122. GAS UTILITY PIPELINE TAX
539-24 SUBCHAPTER A. DEFINITIONS
539-25 Sec. 122.001. DEFINITIONS. In this chapter:
539-26 (1) "Gas utility" has the meaning assigned by Section
539-27 121.001(a)(2) and includes a person without regard to whether the
540-1 person acquired a part of the right-of-way for the pipeline by
540-2 eminent domain.
540-3 (2) "Gross income" includes all gross receipts the gas
540-4 utility received from activities described by Section 121.001(a)(2)
540-5 that are performed in this state, other than an activity excluded
540-6 by Chapter 121 from the activities that make a person a gas utility
540-7 for purposes of that chapter, and excludes the amount of the
540-8 deduction allowed by Section 122.052. (V.A.C.S. Art. 6060, Secs.
540-9 (1)(a) (part), (c) (part).)
540-10 (Sections 122.002-122.050 reserved for expansion)
540-11 SUBCHAPTER B. TAX IMPOSED
540-12 Sec. 122.051. TAX IMPOSED; RATE. (a) A tax is imposed on
540-13 each gas utility.
540-14 (b) The gas utility tax is imposed at the rate of one-half
540-15 of one percent of the gross income of the gas utility. (V.A.C.S.
540-16 Art. 6060, Secs. 1(a) (part), (b).)
540-17 Sec. 122.052. DEDUCTION OF CERTAIN COSTS. A gas utility is
540-18 entitled to deduct from the utility's gross receipts the amount of
540-19 the cost paid to another person by the utility for purchasing,
540-20 treating, or storing natural gas or for gathering or transporting
540-21 natural gas to the utility's facilities. (V.A.C.S. Art. 6060, Sec.
540-22 1(c) (part).)
540-23 (Sections 122.053-122.100 reserved for expansion)
540-24 SUBCHAPTER C. PAYMENTS, REPORTS, AND RECORDS
540-25 Sec. 122.101. TAX PAYMENT. (a) A gas utility on whom a tax
540-26 is imposed by this chapter during a calendar quarter shall pay the
540-27 tax to the railroad commission.
541-1 (b) A gas utility shall make the tax payment payable to the
541-2 comptroller. (V.A.C.S. Art. 6060, Sec. 2(a) (part).)
541-3 Sec. 122.102. REPORT. (a) A gas utility on whom a tax is
541-4 imposed by this chapter during a calendar quarter shall include
541-5 with the tax payment a report to the railroad commission that
541-6 includes a statement of:
541-7 (1) all activity subject to the tax during the period
541-8 covered by the report; and
541-9 (2) the gross income from that activity.
541-10 (b) The president, secretary, or general manager of a gas
541-11 utility that is a corporation or an owner of a gas utility that is
541-12 not a corporation must verify the truth and accuracy of the report.
541-13 (V.A.C.S. Art. 6060, Secs. 2(a) (part), (b).)
541-14 Sec. 122.103. PAYMENT AND REPORT DEADLINE. A tax payment
541-15 and report under this chapter for a calendar quarter are due on or
541-16 before the 20th day of the second month of the succeeding quarter.
541-17 (V.A.C.S. Art. 6060, Sec. 2(a) (part).)
541-18 Sec. 122.104. RECORDS. A person on whom a tax is imposed by
541-19 this chapter shall maintain until the fourth anniversary of the
541-20 date the tax report and payment for a calendar quarter are due
541-21 records sufficient to:
541-22 (1) document the person's tax report; and
541-23 (2) establish the amount of the tax imposed.
541-24 (V.A.C.S. Art. 6060, Sec. 3(b).)
541-25 (Sections 122.105-122.150 reserved for expansion)
541-26 SUBCHAPTER D. ADMINISTRATION
541-27 Sec. 122.151. ADMINISTRATION BY RAILROAD COMMISSION. The
542-1 railroad commission:
542-2 (1) shall administer and collect the taxes imposed by
542-3 this chapter; and
542-4 (2) may adopt rules necessary to administer this
542-5 chapter and to collect and enforce the taxes. (V.A.C.S. Art. 6060,
542-6 Sec. 3(a).)
542-7 Sec. 122.152. EXAMINATION OF RECORDS AND PERSON DOING
542-8 BUSINESS IN THIS STATE. To enforce this chapter, the railroad
542-9 commission may examine:
542-10 (1) a book, record, or paper of a person permitted to
542-11 do business in this state, including an agent of the person, at an
542-12 office of the person or agent in the United States; and
542-13 (2) an officer or employee of a person described by
542-14 Subdivision (1) under oath. (V.A.C.S. Art. 6060, Sec. 3(c).)
542-15 (Sections 122.153-122.200 reserved for expansion)
542-16 SUBCHAPTER E. PENALTIES AND INTEREST
542-17 Sec. 122.201. PENALTY FOR FAILURE TO REPORT TAX. A person
542-18 who is required to report a tax imposed by this chapter and fails
542-19 to report as required by Sections 122.102 and 122.103 shall pay:
542-20 (1) a penalty of five percent of the amount of the tax
542-21 due with the report; and
542-22 (2) if the report is not made before the 31st day
542-23 after the date the report is initially required to be made, an
542-24 additional penalty of five percent of the amount of the tax due
542-25 with the report. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
542-26 Sec. 122.202. PENALTY FOR FAILURE TO PAY TAX. A person who
542-27 is required to pay a tax imposed by this chapter and fails to pay
543-1 the tax as required by Sections 122.101 and 122.103 shall pay:
543-2 (1) a penalty of five percent of the amount of the tax
543-3 due and unpaid; and
543-4 (2) if the tax is not paid before the 31st day after
543-5 the date the tax payment is initially required to be made, an
543-6 additional penalty of five percent of the amount of the tax due and
543-7 unpaid. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
543-8 Sec. 122.203. PENALTY FOR FAILURE TO REPORT AND PAY TAX. If
543-9 a person fails to make the report and to pay the tax for a
543-10 reporting period, only the penalty and additional penalty under
543-11 Section 122.201, as applicable, for failure to make the report is
543-12 imposed. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
543-13 Sec. 122.204. MINIMUM PENALTY. If the amount of a penalty
543-14 or additional penalty computed as provided by this subchapter is
543-15 less than $5, the amount of the penalty or additional penalty is
543-16 $5. (V.A.C.S. Art. 6060, Sec. 4(a) (part).)
543-17 Sec. 122.205. INTEREST. A tax imposed by this chapter that
543-18 becomes delinquent draws interest at the rate of 12 percent a year
543-19 beginning on the 60th day after the date the tax becomes delinquent
543-20 and continues to draw interest until the date the tax is paid.
543-21 (V.A.C.S. Art. 6060, Sec. 4(b).)
543-22 CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
543-23 SUBCHAPTER A. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
543-24 Sec. 123.001. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
543-25 Sec. 123.002. EXCEPTION
543-26 (Sections 123.003-123.020 reserved for expansion)
543-27 SUBCHAPTER B. AGRICULTURE GAS USERS ACT
544-1 Sec. 123.021. SHORT TITLE
544-2 Sec. 123.022. DEFINITIONS
544-3 Sec. 123.023. CONTRACT FOR NATURAL GAS
544-4 Sec. 123.024. EXCEPTION
544-5 CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
544-6 SUBCHAPTER A. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
544-7 Sec. 123.001. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES.
544-8 A person, firm, corporation, partnership, association, or
544-9 cooperative who sells natural gas for irrigation may not reduce the
544-10 supply of natural gas for an agricultural purpose, including
544-11 irrigation pumping or crop drying, if that person or entity:
544-12 (1) sells and distributes natural gas in a
544-13 municipality; or
544-14 (2) delivers gas to the boundary of a municipality for
544-15 resale in the municipality. (V.A.C.S. Art. 6066f (part).)
544-16 Sec. 123.002. EXCEPTION. This subchapter does not apply to
544-17 the extent that the supply of natural gas is required to maintain
544-18 natural gas service for:
544-19 (1) use by residential users or hospitals; or
544-20 (2) an analogous use that is vital to public health
544-21 and safety. (V.A.C.S. Art. 6066f (part).)
544-22 (Sections 123.003-123.020 reserved for expansion)
544-23 SUBCHAPTER B. AGRICULTURE GAS USERS ACT
544-24 Sec. 123.021. SHORT TITLE. This subchapter may be cited as
544-25 the Agriculture Gas Users Act. (V.A.C.S. Art. 6066g, Sec. 1.)
544-26 Sec. 123.022. DEFINITIONS. In this subchapter:
544-27 (1) "Agriculture energy user" means a person who
545-1 purchases or uses natural gas for fuel for an irrigation well.
545-2 (2) "Corporation" means a domestic or foreign
545-3 corporation or association, and each lessee, assignee, trustee,
545-4 receiver, or other successor in interest of the corporation or
545-5 association, that has any of the powers or privileges of a
545-6 corporation not possessed by an individual or partnership.
545-7 (3) "Person" includes an individual, a partnership of
545-8 two or more persons having a joint or common interest, a mutual or
545-9 cooperative association, and a corporation.
545-10 (4) "Supplier" means a person who furnishes natural
545-11 gas to an agriculture energy user. (V.A.C.S. Art. 6066g, Sec. 2.)
545-12 Sec. 123.023. CONTRACT FOR NATURAL GAS. (a) A supplier and
545-13 an agriculture energy user may by contract establish a price and
545-14 other terms of service for the furnishing of natural gas.
545-15 (b) A contract under this section must be negotiated in good
545-16 faith and the result of arm's-length bargaining between the
545-17 parties.
545-18 (c) Each party shall provide information and maintain
545-19 records as reasonably necessary for the contract.
545-20 (d) A price charged to an agriculture energy user under the
545-21 contract may not exceed the price charged to a majority of the
545-22 supplier's commercial users or other similar large-volume users.
545-23 (V.A.C.S. Art. 6066g, Sec. 3.)
545-24 Sec. 123.024. EXCEPTION. This subchapter does not apply to
545-25 a transaction between an agriculture energy user and a supplier who
545-26 does not deliver gas to a municipality unless:
545-27 (1) the parties agree the subchapter applies to the
546-1 transaction; and
546-2 (2) the contract states the subchapter applies to the
546-3 transaction. (V.A.C.S. Art. 6066g, Sec. 4.)
546-4 CHAPTER 124. SUBMETERING TO MOBILE HOME PARKS
546-5 AND APARTMENT HOUSES
546-6 Sec. 124.001. DEFINITIONS
546-7 Sec. 124.002. SUBMETERING
546-8 CHAPTER 124. SUBMETERING TO MOBILE HOME PARKS
546-9 AND APARTMENT HOUSES
546-10 Sec. 124.001. DEFINITIONS. In this chapter:
546-11 (1) "Apartment house" means one or more buildings
546-12 containing more than five dwelling units each of which is rented
546-13 primarily for nontransient use with rent paid at intervals of one
546-14 week or longer. The term includes a rented or owner-occupied
546-15 residential condominium.
546-16 (2) "Dwelling unit" means:
546-17 (A) one or more rooms that are suitable for
546-18 occupancy as a residence and that contain kitchen and bathroom
546-19 facilities; or
546-20 (B) a mobile home in a mobile home park.
546-21 (V.A.C.S. Art. 6053, Sec. 1a(a).)
546-22 Sec. 124.002. SUBMETERING. (a) The railroad commission
546-23 shall adopt rules under which an owner, operator, or manager of a
546-24 mobile home park or apartment house may purchase natural gas
546-25 through a master meter for delivery to a dwelling unit in the
546-26 mobile home park or apartment house using individual submeters to
546-27 allocate fairly the cost of the gas consumption of each dwelling
547-1 unit.
547-2 (b) In addition to other appropriate safeguards for a
547-3 resident of a mobile home park or apartment house, the rules must
547-4 provide that the owner, operator, or manager of the mobile home
547-5 park or apartment house:
547-6 (1) may not deliver natural gas for sale or resale for
547-7 profit; and
547-8 (2) shall maintain adequate records relating to that
547-9 submetering and make those records available for inspection by the
547-10 resident during reasonable business hours. (V.A.C.S. Art. 6053,
547-11 Sec. 1a(b).)
547-12 (Chapters 125-160 reserved for expansion)
547-13 TITLE 4. DELIVERY OF UTILITY SERVICES
547-14 SUBTITLE A. UTILITY CORPORATIONS AND OTHER PROVIDERS
547-15 CHAPTER 161. ELECTRIC COOPERATIVE CORPORATIONS
547-16 SUBCHAPTER A. GENERAL PROVISIONS
547-17 Sec. 161.001. SHORT TITLE
547-18 Sec. 161.002. DEFINITIONS
547-19 Sec. 161.003. CONSTRUCTION OF CHAPTER
547-20 Sec. 161.004. CERTAIN CORPORATE NAMES PROHIBITED
547-21 (Sections 161.005-161.050 reserved for expansion)
547-22 SUBCHAPTER B. CREATION AND OPERATION OF ELECTRIC COOPERATIVES
547-23 Sec. 161.051. INCORPORATORS
547-24 Sec. 161.052. DURATION OF CORPORATION
547-25 Sec. 161.053. NAME OF ELECTRIC COOPERATIVE
547-26 Sec. 161.054. ARTICLES OF INCORPORATION
547-27 Sec. 161.055. FILING AND RECORDING OF ARTICLES OF
548-1 INCORPORATION
548-2 Sec. 161.056. REVIVAL OF ARTICLES OF INCORPORATION
548-3 Sec. 161.057. ORGANIZATIONAL MEETING
548-4 Sec. 161.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATION
548-5 Sec. 161.059. NONPROFIT OPERATION
548-6 Sec. 161.060. MEMBERS NOT LIABLE FOR DEBTS OF ELECTRIC
548-7 COOPERATIVE
548-8 Sec. 161.061. LICENSE FEE
548-9 Sec. 161.062. EXEMPTION FROM EXCISE TAXES
548-10 Sec. 161.063. EXEMPTION FROM APPLICATION OF SECURITIES ACT
548-11 Sec. 161.064. BYLAWS
548-12 Sec. 161.065. MEMBERSHIP
548-13 Sec. 161.066. CERTIFICATE OF MEMBERSHIP
548-14 Sec. 161.067. MEETINGS OF MEMBERS
548-15 Sec. 161.068. NOTICE OF MEMBERS' MEETING
548-16 Sec. 161.069. QUORUM OF MEMBERS
548-17 Sec. 161.070. VOTING BY MEMBERS
548-18 Sec. 161.071. BOARD OF DIRECTORS
548-19 Sec. 161.072. ELECTION OF DIRECTORS; VACANCIES
548-20 Sec. 161.073. COMPENSATION OF DIRECTORS
548-21 Sec. 161.074. QUORUM OF DIRECTORS
548-22 Sec. 161.075. BOARD MEETINGS
548-23 Sec. 161.076. OFFICERS, AGENTS, AND EMPLOYEES
548-24 Sec. 161.077. EXECUTIVE COMMITTEE
548-25 Sec. 161.078. INDEMNIFICATION
548-26 Sec. 161.079. APPLICABILITY OF CHAPTER TO CORPORATIONS
548-27 ORGANIZED UNDER OTHER LAW
549-1 (Sections 161.080-161.120 reserved for expansion)
549-2 SUBCHAPTER C. POWERS OF ELECTRIC COOPERATIVE
549-3 Sec. 161.121. GENERAL POWERS
549-4 Sec. 161.122. PROVISION OF RURAL ELECTRIFICATION
549-5 Sec. 161.123. POWERS RELATING TO PROVISION OF ELECTRIC
549-6 ENERGY
549-7 Sec. 161.124. PROVISION OF ELECTRIC ENERGY TO CERTAIN
549-8 NONMEMBER ENTITIES
549-9 Sec. 161.125. EMINENT DOMAIN
549-10 (Sections 161.126-161.150 reserved for expansion)
549-11 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
549-12 Sec. 161.151. AMENDMENT OF ARTICLES OF INCORPORATION
549-13 Sec. 161.152. ARTICLES OF AMENDMENT
549-14 (Sections 161.153-161.200 reserved for expansion)
549-15 SUBCHAPTER E. CONSOLIDATION OF ELECTRIC COOPERATIVES
549-16 Sec. 161.201. CONSOLIDATION
549-17 Sec. 161.202. ARTICLES OF CONSOLIDATION
549-18 (Sections 161.203-161.250 reserved for expansion)
549-19 SUBCHAPTER F. DISSOLUTION
549-20 Sec. 161.251. DISSOLUTION
549-21 Sec. 161.252. EXISTENCE FOLLOWING DISSOLUTION
549-22 Sec. 161.253. DISTRIBUTION OF NET ASSETS ON DISSOLUTION
549-23 Sec. 161.254. DISSOLUTION OF DEFECTIVELY INCORPORATED
549-24 ELECTRIC COOPERATIVE
549-25 CHAPTER 161. ELECTRIC COOPERATIVE CORPORATIONS
549-26 SUBCHAPTER A. GENERAL PROVISIONS
549-27 Sec. 161.001. SHORT TITLE. This chapter may be cited as the
550-1 Electric Cooperative Corporation Act. (V.A.C.S. Art. 1528b, Sec.
550-2 1.)
550-3 Sec. 161.002. DEFINITIONS. In this chapter:
550-4 (1) "Acquire" means and includes construct, acquire by
550-5 purchase, lease, devise, or gift, or other mode of acquisition.
550-6 (2) "Board" means the board of directors of an
550-7 electric cooperative.
550-8 (3) "Central station service" means electric service
550-9 provided by a municipally owned electric system or by an electric
550-10 corporation described by Subchapter A, Chapter 181.
550-11 (4) "Electric cooperative" means a corporation that is
550-12 organized under this chapter or that becomes subject to this
550-13 chapter as provided by this chapter.
550-14 (5) "Member" means:
550-15 (A) an incorporator of an electric cooperative;
550-16 or
550-17 (B) a person admitted to membership in the
550-18 electric cooperative as provided by Section 161.065.
550-19 (6) "Obligation" includes a bond, note, debenture,
550-20 interim certificate or receipt, or other evidence of indebtedness
550-21 issued by an electric cooperative.
550-22 (7) "Rural area" means an area, including both farm
550-23 and nonfarm population of the area, that is not located in:
550-24 (A) a municipality having a population greater
550-25 than 1,500; or
550-26 (B) an unincorporated city, town, village, or
550-27 borough having a population greater than 1,500. (V.A.C.S.
551-1 Art. 1528b, Secs. 2(1), (2), (3), (6), (7), (8), 3 (part).)
551-2 Sec. 161.003. CONSTRUCTION OF CHAPTER. This chapter shall
551-3 be liberally construed. The enumeration of a purpose, power,
551-4 method, or thing does not exclude similar purposes, powers,
551-5 methods, or things. (V.A.C.S. Art. 1528b, Sec. 34.)
551-6 Sec. 161.004. CERTAIN CORPORATE NAMES PROHIBITED. A
551-7 corporation organized under the laws of this state or authorized to
551-8 do business in this state may not use the words "electric
551-9 cooperative" in the corporation's name unless the corporation is
551-10 organized under this chapter. (V.A.C.S. Art. 1528b, Sec. 7.)
551-11 (Sections 161.005-161.050 reserved for expansion)
551-12 SUBCHAPTER B. CREATION AND OPERATION OF ELECTRIC COOPERATIVES
551-13 Sec. 161.051. INCORPORATORS. (a) Three or more individuals
551-14 may act as incorporators of an electric cooperative by executing
551-15 articles of incorporation as provided by this chapter.
551-16 (b) An incorporator must:
551-17 (1) be at least 21 years of age; and
551-18 (2) reside in this state. (V.A.C.S. Art. 1528b, Sec.
551-19 5.)
551-20 Sec. 161.052. DURATION OF CORPORATION. An electric
551-21 cooperative may be created as a perpetual corporation. (V.A.C.S.
551-22 Art. 1528b, Secs. 4 (part), 6(a) (part).)
551-23 Sec. 161.053. NAME OF ELECTRIC COOPERATIVE. The name of an
551-24 electric cooperative must:
551-25 (1) include the words "Electric Cooperative";
551-26 (2) include the term "Corporation," "Incorporated,"
551-27 "Inc.," "Association," or "Company"; and
552-1 (3) be distinct from the name of any other corporation
552-2 organized under the laws of this state. (V.A.C.S. Art. 1528b, Sec.
552-3 6(a) (part).)
552-4 Sec. 161.054. ARTICLES OF INCORPORATION. (a) The articles
552-5 of incorporation of an electric cooperative must state:
552-6 (1) the name of the cooperative;
552-7 (2) the purpose for which the cooperative is formed;
552-8 (3) the name and address of each incorporator;
552-9 (4) the number of directors;
552-10 (5) the address of the cooperative's principal office
552-11 and the name and address of its agent on whom process may be
552-12 served;
552-13 (6) the duration of the cooperative;
552-14 (7) the terms under which a person is admitted to
552-15 membership and retains membership in the cooperative, unless the
552-16 articles expressly state that the determination of membership
552-17 matters is reserved to the directors by the bylaws; and
552-18 (8) any provisions that the incorporators include for
552-19 the regulation of the business and the conduct of the affairs of
552-20 the cooperative.
552-21 (b) The articles of incorporation do not need to state any
552-22 of the corporate powers enumerated in this chapter. (V.A.C.S.
552-23 Art. 1528b, Secs. 6(a) (part), (b).)
552-24 Sec. 161.055. FILING AND RECORDING OF ARTICLES OF
552-25 INCORPORATION. (a) The secretary of state shall receive articles
552-26 of incorporation of an electric cooperative if the incorporators of
552-27 the cooperative:
553-1 (1) apply for filing the articles;
553-2 (2) furnish satisfactory evidence of compliance with
553-3 this chapter to the secretary of state; and
553-4 (3) pay a fee of $10.
553-5 (b) The secretary of state shall:
553-6 (1) file the articles of incorporation in the
553-7 secretary's office;
553-8 (2) record the articles at length in a book to be kept
553-9 for that purpose;
553-10 (3) retain the original articles of incorporation on
553-11 file in the secretary's office; and
553-12 (4) issue a certificate showing the recording of the
553-13 articles of incorporation and the electric cooperative's authority
553-14 to do business under the articles.
553-15 (c) A copy of the articles of incorporation or of the record
553-16 of the articles, certified under the state seal, is evidence of the
553-17 creation of the electric cooperative.
553-18 (d) The existence of the electric cooperative dates from the
553-19 filing of the articles in the office of the secretary of state.
553-20 The certificate of the secretary of state is evidence of that
553-21 filing. (V.A.C.S. Art. 1528b, Secs. 8, 29 (part).)
553-22 Sec. 161.056. REVIVAL OF ARTICLES OF INCORPORATION. (a) If
553-23 the articles of incorporation of an electric cooperative expire by
553-24 limitation, the cooperative, with the consent of a majority of its
553-25 members, may revive the articles by filing:
553-26 (1) new articles of incorporation under this chapter;
553-27 and
554-1 (2) a certified copy of the expired original articles.
554-2 (b) An electric cooperative that revives its articles of
554-3 incorporation has all the privileges, immunities, and rights of
554-4 property exercised and held by the cooperative at the time the
554-5 original articles expired.
554-6 (c) New articles of incorporation filed under this section
554-7 must recite the privileges, immunities, and rights of property
554-8 exercised and held by the cooperative at the time the original
554-9 articles expired. (V.A.C.S. Art. 1528b, Sec. 9.)
554-10 Sec. 161.057. ORGANIZATIONAL MEETING. (a) After the
554-11 certificate of incorporation is issued, the incorporators of an
554-12 electric cooperative shall meet to adopt bylaws, elect officers,
554-13 and transact other business that properly comes before the meeting.
554-14 (b) A majority of the incorporators shall call the
554-15 organizational meeting.
554-16 (c) The incorporators calling the organizational meeting
554-17 shall give at least three days' notice of the meeting by mail to
554-18 each incorporator. The notice must state the time and place of the
554-19 meeting. The notice may be waived in writing. (V.A.C.S.
554-20 Art. 1528b, Sec. 10.)
554-21 Sec. 161.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATION.
554-22 (a) An electric cooperative that files defective articles of
554-23 incorporation or fails to take an action necessary to perfect its
554-24 corporate organization may:
554-25 (1) file corrected articles of incorporation or amend
554-26 the original articles; and
554-27 (2) take any action necessary to correct the defect.
555-1 (b) An action taken under this section is valid and binding
555-2 on any person concerned. (V.A.C.S. Art. 1528b, Sec. 32.)
555-3 Sec. 161.059. NONPROFIT OPERATION. (a) An electric
555-4 cooperative shall operate without profit to its members.
555-5 (b) The rates, fees, rents, and other charges for electric
555-6 energy and other facilities, supplies, equipment, or services
555-7 furnished by the cooperative must be sufficient at all times to:
555-8 (1) pay all operating and maintenance expenses
555-9 necessary or desirable for the prudent conduct of its business;
555-10 (2) pay the principal of and interest on the
555-11 obligations issued or assumed by the cooperative in performing the
555-12 purpose for which the cooperative was organized; and
555-13 (3) create reserves.
555-14 (c) The cooperative shall devote its revenues:
555-15 (1) first to the payment of operating and maintenance
555-16 expenses and the principal and interest on outstanding obligations;
555-17 and
555-18 (2) then to the reserves prescribed by the board for
555-19 improvement, new construction, depreciation, and contingencies.
555-20 (d) The cooperative shall periodically return revenues not
555-21 required for the purposes prescribed by Subsection (c) to the
555-22 members in proportion to the amount of business done with each
555-23 member during the applicable period. The cooperative may return
555-24 revenues:
555-25 (1) in cash, by abatement of current charges for
555-26 electric energy, or in another manner determined by the board; or
555-27 (2) through a general rate reduction to members.
556-1 (V.A.C.S. Art. 1528b, Sec. 25.)
556-2 Sec. 161.060. MEMBERS NOT LIABLE FOR DEBTS OF ELECTRIC
556-3 COOPERATIVE. A member is not liable for a debt of an electric
556-4 cooperative except for:
556-5 (1) a debt contracted between the member and the
556-6 cooperative; or
556-7 (2) an amount not to exceed the unpaid amount of the
556-8 member's membership fee. (V.A.C.S. Art. 1528b, Sec. 16 (part).)
556-9 Sec. 161.061. LICENSE FEE. Not later than May 1 of each
556-10 year, each electric cooperative shall pay to the secretary of
556-11 state a license fee of $10. (V.A.C.S. Art. 1528b, Sec. 30
556-12 (part).)
556-13 Sec. 161.062. EXEMPTION FROM EXCISE TAXES. An electric
556-14 cooperative is exempt from all excise taxes but is exempt from the
556-15 franchise tax imposed by Chapter 171, Tax Code, only if the
556-16 cooperative is exempted by that chapter. (V.A.C.S. Art. 1528b,
556-17 Sec. 30 (part).)
556-18 Sec. 161.063. EXEMPTION FROM APPLICATION OF SECURITIES ACT.
556-19 The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
556-20 Statutes) does not apply to:
556-21 (1) an obligation issued to secure a debt of an
556-22 electric cooperative to the United States; or
556-23 (2) the issuance of a membership certificate by an
556-24 electric cooperative. (V.A.C.S. Art. 1528b, Sec. 31.)
556-25 Sec. 161.064. BYLAWS. (a) The board may adopt, amend, or
556-26 repeal the bylaws of the cooperative.
556-27 (b) The bylaws may contain any provision for the regulation
557-1 and management of the affairs of the electric cooperative that is
557-2 consistent with the articles of incorporation. (V.A.C.S.
557-3 Art. 1528b, Secs. 4 (part), 11.)
557-4 Sec. 161.065. MEMBERSHIP. (a) A person is eligible to
557-5 become a member of an electric cooperative if the person has a
557-6 dwelling, structure, apparatus, or point of delivery at which the
557-7 person does not receive central station service from another source
557-8 and that is located in an area in which the cooperative is
557-9 authorized to provide electric energy, and the person:
557-10 (1) uses or agrees to use electric energy or the
557-11 facilities, supplies, equipment, or services furnished by the
557-12 cooperative at the dwelling, structure, apparatus, or point of
557-13 delivery; or
557-14 (2) is an incorporator of the cooperative.
557-15 (b) An electric cooperative may become a member of another
557-16 electric cooperative and may fully use the facilities and services
557-17 of that cooperative.
557-18 (c) Membership in an electric cooperative is not
557-19 transferable. (V.A.C.S. Art. 1528b, Secs. 12, 16 (part).)
557-20 Sec. 161.066. CERTIFICATE OF MEMBERSHIP. (a) An electric
557-21 cooperative shall issue a certificate of membership to a member who
557-22 pays the member's membership fee in full.
557-23 (b) A certificate of membership is not transferable.
557-24 (c) A certificate of membership shall be surrendered to the
557-25 cooperative on the resignation, expulsion, or death of the member.
557-26 (V.A.C.S. Art. 1528b, Sec. 16 (part).)
557-27 Sec. 161.067. MEETINGS OF MEMBERS. (a) An electric
558-1 cooperative may hold a meeting of its members at a place provided
558-2 in the bylaws. If the bylaws do not provide for a place for a
558-3 meeting, the cooperative shall hold the meeting in the principal
558-4 office of the cooperative in this state.
558-5 (b) An electric cooperative shall hold an annual meeting of
558-6 its members at the time provided in the bylaws. Failure to hold
558-7 the annual meeting at the designated time does not result in
558-8 forfeiture or dissolution of the cooperative.
558-9 (c) A special meeting of the members may be called by:
558-10 (1) the president;
558-11 (2) the board;
558-12 (3) a majority of the directors;
558-13 (4) the members by a petition signed by at least 10
558-14 percent of the members; or
558-15 (5) an officer or other person as provided by the
558-16 articles of incorporation or bylaws. (V.A.C.S. Art. 1528b, Sec.
558-17 13.)
558-18 Sec. 161.068. NOTICE OF MEMBERS' MEETING. (a) Written
558-19 notice of each meeting of the members shall be delivered to each
558-20 member of record, either personally or by mail, not earlier than
558-21 the 30th day or later than the 10th day before the date of the
558-22 meeting. The notice must be delivered by or at the direction of
558-23 the president, the secretary, or the officers or other persons
558-24 calling the meeting.
558-25 (b) The notice must state the time and place of the meeting
558-26 and, in the case of a special meeting, each purpose for which the
558-27 meeting is called.
559-1 (c) A member may waive notice of meetings in writing.
559-2 (d) A notice that is mailed is considered to be delivered
559-3 when the notice is deposited in the United States mail in a sealed
559-4 envelope with postage prepaid addressed to the member at the
559-5 member's address as it appears on the records of the electric
559-6 cooperative. (V.A.C.S. Art. 1528b, Sec. 14.)
559-7 Sec. 161.069. QUORUM OF MEMBERS. Unless otherwise provided
559-8 by the articles of incorporation, a quorum for the transaction of
559-9 business at a meeting of the members of an electric cooperative is
559-10 a majority of the members present in person or represented by
559-11 proxy. If voting by mail is provided for in the bylaws, members
559-12 voting by mail are counted as present for purposes of determining
559-13 whether a quorum is present. (V.A.C.S. Art. 1528b, Sec. 17.)
559-14 Sec. 161.070. VOTING BY MEMBERS. Each member present at a
559-15 meeting of the members is entitled to one vote on each matter
559-16 submitted to a vote at the meeting. The bylaws may provide for
559-17 voting by proxy or by mail. (V.A.C.S. Art. 1528b, Sec. 15.)
559-18 Sec. 161.071. BOARD OF DIRECTORS. (a) A board of at least
559-19 three directors shall manage the business and affairs of an
559-20 electric cooperative. Each director must be a member of the
559-21 cooperative. The bylaws may prescribe additional qualifications
559-22 for directors.
559-23 (b) The board may exercise any power of an electric
559-24 cooperative not conferred on the members by this chapter or by the
559-25 cooperative's articles of incorporation or bylaws. (V.A.C.S.
559-26 Art. 1528b, Secs. 6(a) (part), 18, 19 (part).)
559-27 Sec. 161.072. ELECTION OF DIRECTORS; VACANCIES. (a) The
560-1 incorporators of an electric cooperative named in the articles of
560-2 incorporation shall serve as directors until the first annual
560-3 meeting of the members, and until their successors are elected and
560-4 qualify. Subsequently, the directors shall be elected by the
560-5 members at each annual meeting or as otherwise provided by the
560-6 bylaws.
560-7 (b) A vacancy on the board shall be filled as provided by
560-8 the bylaws. A person selected to fill a vacancy serves until the
560-9 next regular election of directors. (V.A.C.S. Art. 1528b, Secs.
560-10 6(a) (part), 19 (part), 20.)
560-11 Sec. 161.073. COMPENSATION OF DIRECTORS. A director of an
560-12 electric cooperative is entitled to the compensation and
560-13 reimbursement for expenses actually and necessarily incurred by the
560-14 director as provided by the bylaws. (V.A.C.S. Art. 1528b, Sec. 19
560-15 (part).)
560-16 Sec. 161.074. QUORUM OF DIRECTORS. (a) A majority of the
560-17 directors is a quorum unless the articles of incorporation or the
560-18 bylaws provide that a greater number of the directors is a quorum.
560-19 (b) A majority of the directors present at a meeting at
560-20 which a quorum is present may exercise the board's authority unless
560-21 the articles of incorporation or the bylaws require a greater
560-22 number of directors to exercise the board's authority. (V.A.C.S.
560-23 Art. 1528b, Sec. 21.)
560-24 Sec. 161.075. BOARD MEETINGS. (a) The board shall hold a
560-25 regular or special board meeting at the place and on the notice
560-26 prescribed by the bylaws.
560-27 (b) The attendance of a director at a board meeting
561-1 constitutes a waiver of notice of the meeting unless the director
561-2 attends the meeting for the express purpose of objecting to the
561-3 transaction of business at the meeting because the meeting is not
561-4 lawfully called or convened.
561-5 (c) A notice or waiver of notice of a board meeting is not
561-6 required to specify the business to be transacted at the meeting or
561-7 the purpose of the meeting. (V.A.C.S. Art. 1528b, Sec. 22.)
561-8 Sec. 161.076. OFFICERS, AGENTS, AND EMPLOYEES. (a) The
561-9 board shall elect from the board's membership a president, a vice
561-10 president, a secretary, and a treasurer. The terms of office,
561-11 powers, duties, and compensation of the officers elected under this
561-12 subsection shall be provided for by the bylaws.
561-13 (b) The same person may hold the offices of secretary and of
561-14 treasurer.
561-15 (c) The board may appoint other officers, agents, and
561-16 employees as the board considers necessary and shall prescribe the
561-17 powers, duties, and compensation of those persons.
561-18 (d) The board may remove an officer, agent, or employee
561-19 elected or appointed by the board if the board determines that the
561-20 removal will serve the best interests of the cooperative.
561-21 (V.A.C.S. Art. 1528b, Secs. 4 (part), 23.)
561-22 Sec. 161.077. EXECUTIVE COMMITTEE. (a) The bylaws of an
561-23 electric cooperative may authorize the board to elect an executive
561-24 committee from the board's membership.
561-25 (b) The board may delegate to the executive committee the
561-26 management of the current and ordinary business of the cooperative
561-27 and other duties as prescribed by the bylaws.
562-1 (c) The designation of an executive committee and the
562-2 delegation of authority to the committee does not relieve the board
562-3 or any director of a responsibility imposed on the board or the
562-4 director by this chapter. (V.A.C.S. Art. 1528b, Sec. 24.)
562-5 Sec. 161.078. INDEMNIFICATION. An electric cooperative may
562-6 indemnify and provide indemnity insurance in the same manner and to
562-7 the same extent as a nonprofit corporation under Article 2.22A,
562-8 Texas Non-Profit Corporation Act (Article 1396-2.22A, Vernon's
562-9 Texas Civil Statutes). (V.A.C.S. Art. 1528b, Sec. 19A.)
562-10 Sec. 161.079. APPLICABILITY OF CHAPTER TO CORPORATIONS
562-11 ORGANIZED UNDER OTHER LAW. A cooperative or nonprofit corporation
562-12 or association organized under any other law of this state for the
562-13 purpose of engaging in rural electrification may, by a majority
562-14 vote of the members present in person or represented by proxy at a
562-15 meeting called for that purpose, amend its articles of
562-16 incorporation to comply with this chapter. (V.A.C.S. Art. 1528b,
562-17 Sec. 33.)
562-18 (Sections 161.080-161.120 reserved for expansion)
562-19 SUBCHAPTER C. POWERS OF ELECTRIC COOPERATIVE
562-20 Sec. 161.121. GENERAL POWERS. An electric cooperative may:
562-21 (1) sue and be sued in its corporate name;
562-22 (2) adopt and alter a corporate seal and use the seal
562-23 or a facsimile of the seal as required by law;
562-24 (3) acquire, own, hold, maintain, exchange, or use
562-25 property or an interest in property, including plants, buildings,
562-26 works, machinery, supplies, equipment, apparatus, and transmission
562-27 and distribution lines or systems that are necessary, convenient,
563-1 or useful;
563-2 (4) dispose of, mortgage, or lease as lessor any of
563-3 its property or assets;
563-4 (5) borrow money and otherwise contract indebtedness,
563-5 issue obligations for its indebtedness, and secure the payment of
563-6 indebtedness by mortgage, pledge, or deed of trust on any or all of
563-7 its property or revenue;
563-8 (6) accept gifts or grants of money, services, or
563-9 property;
563-10 (7) make any contracts necessary or convenient for the
563-11 exercise of the powers granted by this chapter;
563-12 (8) conduct its business and have offices inside or
563-13 outside this state;
563-14 (9) adopt and amend bylaws not inconsistent with the
563-15 articles of incorporation for the administration and regulation of
563-16 the affairs of the cooperative; and
563-17 (10) perform any other acts for the cooperative or its
563-18 members or for another electric cooperative or its members, and
563-19 exercise any other power, that may be appropriate to accomplish the
563-20 purpose for which the cooperative is organized. (V.A.C.S.
563-21 Art. 1528b, Sec. 4 (part).)
563-22 Sec. 161.122. PROVISION OF RURAL ELECTRIFICATION. An
563-23 electric cooperative may engage in rural electrification by:
563-24 (1) furnishing electric energy to any person for
563-25 delivery to a dwelling, structure, apparatus, or point of delivery
563-26 that is:
563-27 (A) located in a rural area; and
564-1 (B) not receiving central station service, even
564-2 if the person is receiving central station service at other points
564-3 of delivery;
564-4 (2) furnishing electric energy to a person desiring
564-5 that service in a municipality or unincorporated city or town,
564-6 rural or nonrural, served by the cooperative and in which central
564-7 station service was not available at the time the cooperative began
564-8 furnishing electric energy to the residents of the municipality or
564-9 unincorporated city or town;
564-10 (3) assisting in the wiring of the premises of persons
564-11 in rural areas or the acquisition, supply, or installation of
564-12 electrical or plumbing equipment in those premises; or
564-13 (4) furnishing electric energy, wiring facilities, or
564-14 electrical or plumbing equipment or service to another electric
564-15 cooperative or to the members of another electric cooperative.
564-16 (V.A.C.S. Art. 1528b, Sec. 3 (part).)
564-17 Sec. 161.123. POWERS RELATING TO PROVISION OF ELECTRIC
564-18 ENERGY. An electric cooperative may:
564-19 (1) generate, acquire, and accumulate electric energy
564-20 and transmit, distribute, sell, furnish, and dispose of that
564-21 electric energy to its members only;
564-22 (2) assist its members only to wire their premises and
564-23 install in those premises electrical and plumbing fixtures,
564-24 machinery, supplies, apparatus, and equipment of any kind, and in
564-25 connection with those activities:
564-26 (A) acquire, lease, sell, distribute, install,
564-27 and repair electrical and plumbing fixtures, machinery, supplies,
565-1 apparatus, and equipment of any kind; and
565-2 (B) receive, acquire, endorse, pledge, and
565-3 dispose of notes, bonds, and other evidences of indebtedness;
565-4 (3) furnish to other electric cooperatives or their
565-5 members electric energy, wiring facilities, electrical and plumbing
565-6 equipment, and services that are convenient or useful; and
565-7 (4) establish, regulate, and collect rates, fees,
565-8 rents, or other charges for electric energy or other facilities,
565-9 supplies, equipment, or services furnished by the electric
565-10 cooperative. (V.A.C.S. Art. 1528b, Sec. 4 (part).)
565-11 Sec. 161.124. PROVISION OF ELECTRIC ENERGY TO CERTAIN
565-12 NONMEMBER ENTITIES. An electric cooperative may generate, acquire,
565-13 and accumulate electric energy and transmit, distribute, sell,
565-14 furnish, and dispose of that electric energy to any of the
565-15 following that is engaged in the generation, transmission, or
565-16 distribution of electricity:
565-17 (1) a corporation, association, or firm;
565-18 (2) the United States;
565-19 (3) this state or a political subdivision of this
565-20 state; or
565-21 (4) a municipal power agency or political subdivision
565-22 of this state that is a co-owner with the electric cooperative of
565-23 an electric generation facility. (V.A.C.S. Art. 1528b, Sec. 4A
565-24 (part).)
565-25 Sec. 161.125. EMINENT DOMAIN. An electric cooperative may
565-26 exercise the power of eminent domain in the manner provided by
565-27 state law for acquiring private property for public use. The power
566-1 does not apply to state property or property of a political
566-2 subdivision in this state. (V.A.C.S. Art. 1528b, Sec. 4 (part).)
566-3 (Sections 161.126-161.150 reserved for expansion)
566-4 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
566-5 Sec. 161.151. AMENDMENT OF ARTICLES OF INCORPORATION. (a)
566-6 An electric cooperative may amend its articles of incorporation by
566-7 a majority vote of the members of the cooperative present in person
566-8 or represented by proxy at a regular meeting or at a special
566-9 meeting of its members called for that purpose as provided by the
566-10 bylaws.
566-11 (b) Notice of the meeting to members must state the general
566-12 nature of each proposed amendment to be presented and voted on at
566-13 the meeting. Valid action may not be taken at the meeting unless
566-14 at least five percent of the members of the electric cooperative
566-15 either attend the meeting in person or are represented at the
566-16 meeting by proxy.
566-17 (c) The power to amend the articles of incorporation
566-18 includes the power to accomplish any desired change in the articles
566-19 of incorporation and to include any purpose, power, or provision
566-20 that is permitted to be included in original articles of
566-21 incorporation executed at the time the amendment is made.
566-22 (V.A.C.S. Art. 1528b, Sec. 26 (part).)
566-23 Sec. 161.152. ARTICLES OF AMENDMENT. (a) Articles of
566-24 amendment of an electric cooperative must be:
566-25 (1) signed by the president or vice president and
566-26 attested by the secretary, certifying to the amendment and its
566-27 lawful adoption; and
567-1 (2) executed, acknowledged, filed, and recorded in the
567-2 same manner as the original articles of incorporation.
567-3 (b) An amendment takes effect when the secretary of state
567-4 accepts the articles of amendment for filing and recording and
567-5 issues a certificate of amendment. The certificate of amendment is
567-6 evidence of the filing of the amendment.
567-7 (c) The secretary of state shall charge and collect a fee of
567-8 $2.50 for filing articles of amendment and issuing a certificate of
567-9 amendment. (V.A.C.S. Art. 1528b, Secs. 26 (part), 29 (part).)
567-10 (Sections 161.153-161.200 reserved for expansion)
567-11 SUBCHAPTER E. CONSOLIDATION OF ELECTRIC COOPERATIVES
567-12 Sec. 161.201. CONSOLIDATION. (a) Two or more electric
567-13 cooperatives may enter into an agreement to consolidate the
567-14 cooperatives. The agreement must state:
567-15 (1) the terms of the consolidation;
567-16 (2) the name of the proposed consolidated cooperative;
567-17 (3) the number of directors of the proposed
567-18 consolidated cooperative;
567-19 (4) the time of the annual meeting and election; and
567-20 (5) the names of at least three persons to be
567-21 directors until the first annual meeting.
567-22 (b) A consolidation agreement may be approved only on the
567-23 votes of a majority of the members of each electric cooperative
567-24 present in person or represented by proxy at a regular meeting or
567-25 at a special meeting of its members called for that purpose.
567-26 (V.A.C.S. Art. 1528b, Sec. 27(a) (part).)
567-27 Sec. 161.202. ARTICLES OF CONSOLIDATION. (a) The articles
568-1 of consolidation must:
568-2 (1) conform substantially to original articles of
568-3 incorporation of an electric cooperative; and
568-4 (2) be executed, acknowledged, filed, and recorded in
568-5 the same manner as original articles of incorporation.
568-6 (b) The directors named in the consolidation agreement shall
568-7 as incorporators sign and acknowledge the articles of
568-8 consolidation.
568-9 (c) The secretary of state shall charge and collect a fee of
568-10 $10 for filing articles of consolidation and issuing a certificate
568-11 of consolidation.
568-12 (d) When the secretary of state accepts the articles of
568-13 consolidation for filing and recording and issues a certificate of
568-14 consolidation, the proposed consolidated electric cooperative
568-15 described in the articles under its designated name exists as a
568-16 body corporate, with all the powers of an electric cooperative
568-17 originally organized under this chapter. (V.A.C.S. Art. 1528b,
568-18 Secs. 27(a) (part), (b), 29 (part).)
568-19 (Sections 161.203-161.250 reserved for expansion)
568-20 SUBCHAPTER F. DISSOLUTION
568-21 Sec. 161.251. DISSOLUTION. (a) An electric cooperative may
568-22 be dissolved by a majority vote of its members present in person or
568-23 represented by proxy at a regular meeting or at a special meeting
568-24 of its members called for that purpose.
568-25 (b) A certificate of dissolution must be:
568-26 (1) signed by the president or vice president and
568-27 attested by the secretary, certifying to the dissolution and
569-1 stating that the officers have been authorized by a vote of the
569-2 members under Subsection (a) to execute and file the certificate;
569-3 and
569-4 (2) executed, acknowledged, filed, and recorded in the
569-5 same manner as original articles of incorporation of an electric
569-6 cooperative.
569-7 (c) The cooperative is dissolved when the secretary of state
569-8 accepts the certificate of dissolution for filing and recording and
569-9 issues a certificate of dissolution.
569-10 (d) The secretary of state shall charge and collect a fee of
569-11 $2.50 for filing articles of dissolution. (V.A.C.S. Art. 1528b,
569-12 Secs. 28(a), 29 (part).)
569-13 Sec. 161.252. EXISTENCE FOLLOWING DISSOLUTION. (a) A
569-14 dissolved electric cooperative continues to exist to:
569-15 (1) satisfy existing liabilities or obligations;
569-16 (2) collect or liquidate its assets; and
569-17 (3) take any other action required to adjust and wind
569-18 up its business and affairs.
569-19 (b) A dissolved electric cooperative may sue and be sued in
569-20 its corporate name. (V.A.C.S. Art. 1528b, Sec. 28(b) (part).)
569-21 Sec. 161.253. DISTRIBUTION OF NET ASSETS ON DISSOLUTION.
569-22 Assets of a dissolved electric cooperative that remain after all
569-23 liabilities or obligations of the cooperative have been satisfied
569-24 shall be distributed pro rata to the members of the cooperative who
569-25 were members when the certificate of dissolution was filed.
569-26 (V.A.C.S. Art. 1528b, Sec. 28(b) (part).)
569-27 Sec. 161.254. DISSOLUTION OF DEFECTIVELY INCORPORATED
570-1 ELECTRIC COOPERATIVE. (a) An electric cooperative that purports
570-2 to have been incorporated or reincorporated under this chapter but
570-3 that has not complied with a requirement for legal corporate
570-4 existence may file a certificate of dissolution in the same manner
570-5 as a validly incorporated electric cooperative.
570-6 (b) The certificate of dissolution may be authorized by a
570-7 majority of the incorporators or directors at a meeting called by
570-8 an incorporator and held at the principal office of the cooperative
570-9 named in the articles of incorporation.
570-10 (c) The incorporator calling the meeting must give at least
570-11 10 days' notice of the meeting by mail to the last known post
570-12 office address of each incorporator or director. (V.A.C.S.
570-13 Art. 1528b, Sec. 28(c).)
570-14 CHAPTER 162. TELEPHONE COOPERATIVE CORPORATIONS
570-15 SUBCHAPTER A. GENERAL PROVISIONS
570-16 Sec. 162.001. SHORT TITLE
570-17 Sec. 162.002. PURPOSE
570-18 Sec. 162.003. DEFINITIONS
570-19 Sec. 162.004. CERTAIN CORPORATE NAMES PROHIBITED
570-20 Sec. 162.005. EFFECT OF RECORDING CERTAIN MORTGAGES
570-21 EXECUTED BY TELEPHONE COOPERATIVES
570-22 Sec. 162.006. CONSTRUCTION STANDARDS
570-23 (Sections 162.007-162.050 reserved for expansion)
570-24 SUBCHAPTER B. CREATION AND OPERATION OF TELEPHONE
570-25 COOPERATIVES
570-26 Sec. 162.051. INCORPORATORS
570-27 Sec. 162.052. DURATION OF CORPORATION
571-1 Sec. 162.053. NAME OF TELEPHONE COOPERATIVE
571-2 Sec. 162.054. ARTICLES OF INCORPORATION
571-3 Sec. 162.055. FILING AND RECORDING OF ARTICLES OF
571-4 INCORPORATION
571-5 Sec. 162.056. REVIVAL OF ARTICLES OF INCORPORATION
571-6 Sec. 162.057. ORGANIZATIONAL MEETING
571-7 Sec. 162.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATIONS
571-8 Sec. 162.059. NONPROFIT OPERATION
571-9 Sec. 162.060. MEMBERS NOT LIABLE FOR DEBTS OF TELEPHONE
571-10 COOPERATIVE
571-11 Sec. 162.061. LICENSE FEE
571-12 Sec. 162.062. EXEMPTION FROM EXCISE TAXES
571-13 Sec. 162.063. EXEMPTION FROM APPLICATION OF SECURITIES
571-14 ACT
571-15 Sec. 162.064. BYLAWS
571-16 Sec. 162.065. MEMBERSHIP
571-17 Sec. 162.066. PATRONS
571-18 Sec. 162.067. MEETINGS OF MEMBERS
571-19 Sec. 162.068. NOTICE OF MEMBERS' MEETING
571-20 Sec. 162.069. WAIVER OF NOTICE
571-21 Sec. 162.070. MEMBERS' MEETING: QUORUM AND VOTING
571-22 Sec. 162.071. BOARD OF DIRECTORS
571-23 Sec. 162.072. ELECTION OF DIRECTORS; TERMS
571-24 Sec. 162.073. COMPENSATION OF DIRECTORS
571-25 Sec. 162.074. INSURANCE FOR DIRECTORS
571-26 Sec. 162.075. BOARD MEETINGS; QUORUM
571-27 Sec. 162.076. DISTRICTS
572-1 Sec. 162.077. OFFICERS, AGENTS, AND EMPLOYEES
572-2 Sec. 162.078. EXECUTIVE COMMITTEE
572-3 Sec. 162.079. INDEMNIFICATION
572-4 Sec. 162.080. CHANGE OF LOCATION OF PRINCIPAL OFFICE
572-5 Sec. 162.081. DIRECTOR, OFFICER, OR MEMBER ACTING AS
572-6 NOTARY
572-7 Sec. 162.082. APPLICABILITY TO CORPORATIONS ORGANIZED
572-8 UNDER OTHER LAW
572-9 (Sections 162.083-162.120 reserved for expansion)
572-10 SUBCHAPTER C. POWERS OF TELEPHONE COOPERATIVE
572-11 Sec. 162.121. GENERAL POWERS
572-12 Sec. 162.122. POWERS RELATING TO PROVISION OF
572-13 COMMUNICATION SERVICE
572-14 Sec. 162.123. CONNECTION AND INTERCONNECTION OF FACILITIES
572-15 Sec. 162.124. EMINENT DOMAIN
572-16 Sec. 162.125. ENCUMBRANCE AND DISPOSITION OF PROPERTY
572-17 WITHOUT MEMBERS' AUTHORIZATION
572-18 Sec. 162.126. ENCUMBRANCE, LEASE, AND DISPOSITION OF
572-19 PROPERTY WITH MEMBERS' AUTHORIZATION
572-20 (Sections 162.127-162.150 reserved for expansion)
572-21 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
572-22 Sec. 162.151. AMENDMENT OF ARTICLES OF INCORPORATION
572-23 Sec. 162.152. PRESENTATION AND APPROVAL OF PROPOSED
572-24 AMENDMENT
572-25 Sec. 162.153. ARTICLES OF AMENDMENT
572-26 Sec. 162.154. FILING OF ARTICLES OF AMENDMENT
572-27 (Sections 162.155-162.200 reserved for expansion)
573-1 SUBCHAPTER E. CONSOLIDATION OR MERGER OF TELEPHONE
573-2 COOPERATIVES
573-3 Sec. 162.201. CONSOLIDATION
573-4 Sec. 162.202. ARTICLES OF CONSOLIDATION
573-5 Sec. 162.203. MERGER
573-6 Sec. 162.204. ARTICLES OF MERGER
573-7 Sec. 162.205. EFFECT OF CONSOLIDATION OR MERGER
573-8 (Sections 162.206-162.250 reserved for expansion)
573-9 SUBCHAPTER F. CONVERSION OF CORPORATION INTO TELEPHONE
573-10 COOPERATIVE
573-11 Sec. 162.251. CONVERSION OF CORPORATION INTO TELEPHONE
573-12 COOPERATIVE
573-13 Sec. 162.252. ARTICLES OF CONVERSION
573-14 Sec. 162.253. CONSOLIDATION AND CONVERSION OF
573-15 CORPORATIONS INTO TELEPHONE COOPERATIVE
573-16 Sec. 162.254. ARTICLES OF CONSOLIDATION AND CONVERSION
573-17 (Sections 162.255-162.300 reserved for expansion)
573-18 SUBCHAPTER G. DISSOLUTION
573-19 Sec. 162.301. DISSOLUTION
573-20 Sec. 162.302. EXISTENCE FOLLOWING DISSOLUTION
573-21 Sec. 162.303. DISTRIBUTION OF NET ASSETS ON DISSOLUTION
573-22 Sec. 162.304. DISSOLUTION OF DEFECTIVELY INCORPORATED TELEPHONE
573-23 COOPERATIVE
573-24 CHAPTER 162. TELEPHONE COOPERATIVE CORPORATIONS
573-25 SUBCHAPTER A. GENERAL PROVISIONS
573-26 Sec. 162.001. SHORT TITLE. This chapter may be cited as the
573-27 Telephone Cooperative Act. (V.A.C.S. Art. 1528c, Sec. 1.)
574-1 Sec. 162.002. PURPOSE. A cooperative, nonprofit corporation
574-2 may be organized under this chapter to furnish communication
574-3 service to the widest practicable number of users of that service.
574-4 (V.A.C.S. Art. 1528c, Sec. 3.)
574-5 Sec. 162.003. DEFINITIONS. In this chapter:
574-6 (1) "Board" means the board of directors of a
574-7 telephone cooperative.
574-8 (2) "Communication service" means:
574-9 (A) the transmission or reception of
574-10 information, signals, or messages by any means, including by wire,
574-11 radio, cellular radio, microwave, or fiber optics; and
574-12 (B) the provision of lines, facilities, and
574-13 systems used in the transmission or reception described by
574-14 Paragraph (A).
574-15 (3) "Member" means:
574-16 (A) an incorporator of a telephone cooperative;
574-17 or
574-18 (B) a person admitted to membership in a
574-19 telephone cooperative as provided by Section 162.065.
574-20 (4) "Patron" means a member who is eligible to receive
574-21 patronage dividends or to earn capital credits as a result of
574-22 purchasing certain services from a telephone cooperative as
574-23 provided by Section 162.066.
574-24 (5) "Telephone cooperative" means a corporation that
574-25 is organized under this chapter or that becomes subject to this
574-26 chapter as provided by this chapter. (V.A.C.S. Art. 1528c, Secs.
574-27 2(1), (2), (3), (6), (8).)
575-1 Sec. 162.004. CERTAIN CORPORATE NAMES PROHIBITED. A
575-2 corporation organized under the laws of this state or authorized to
575-3 do business in this state may not use the words "telephone
575-4 cooperative" in the corporation's name unless the corporation is
575-5 organized under this chapter. (V.A.C.S. Art. 1528c, Sec. 6(a)
575-6 (part).)
575-7 Sec. 162.005. EFFECT OF RECORDING CERTAIN MORTGAGES EXECUTED
575-8 BY TELEPHONE COOPERATIVES. (a) An instrument executed by a
575-9 telephone cooperative or a foreign corporation doing business in
575-10 this state under this chapter that affects real and personal
575-11 property and that is recorded in the real property records of any
575-12 county in which the property is located or is to be located has the
575-13 same effect as if the instrument were also recorded as provided by
575-14 law in the proper office in that county as a mortgage of personal
575-15 property.
575-16 (b) All after-acquired property of a telephone cooperative
575-17 or foreign corporation doing business in this state under this
575-18 chapter described by or referred to as being pledged in an
575-19 instrument to which Subsection (a) applies becomes subject to the
575-20 lien described by the instrument immediately when the cooperative
575-21 or corporation acquires the property, without regard to whether the
575-22 property existed at the time the instrument was executed. The
575-23 execution of the instrument constitutes notice and otherwise has
575-24 the same effect with respect to after-acquired property to which
575-25 this subsection applies as it has under the laws relating to
575-26 recordation with respect to property that is owned by the
575-27 cooperative or foreign corporation at the time the instrument is
576-1 executed and that is described in the instrument as being pledged
576-2 by the instrument.
576-3 (c) After a lien on personal property under an instrument to
576-4 which Subsection (a) applies is recorded, the lien continues in
576-5 existence and of record for the period specified in the instrument
576-6 without:
576-7 (1) the refiling of the instrument; or
576-8 (2) the filing of any renewal certificate, affidavit,
576-9 or other supplemental information required by a law relating to the
576-10 renewal, maintenance, or extension of a lien on personal property.
576-11 (V.A.C.S. Art. 1528c, Sec. 25.)
576-12 Sec. 162.006. CONSTRUCTION STANDARDS. A telephone
576-13 cooperative that constructs communication lines or facilities must
576-14 at a minimum comply with the standards of the National Electrical
576-15 Safety Code in effect at the time of construction. (V.A.C.S.
576-16 Art. 1528c, Sec. 26.)
576-17 (Sections 162.007-162.050 reserved for expansion)
576-18 SUBCHAPTER B. CREATION AND OPERATION OF TELEPHONE COOPERATIVES
576-19 Sec. 162.051. INCORPORATORS. (a) Three or more individuals
576-20 may act as incorporators of a telephone cooperative by executing
576-21 articles of incorporation as provided by this chapter.
576-22 (b) An incorporator must:
576-23 (1) be at least 21 years of age; and
576-24 (2) reside in this state. (V.A.C.S. Art. 1528c, Sec.
576-25 5.)
576-26 Sec. 162.052. DURATION OF CORPORATION. A telephone
576-27 cooperative may be created as a perpetual corporation. (V.A.C.S.
577-1 Art. 1528c, Secs. 4 (part), 6(a) (part).)
577-2 Sec. 162.053. NAME OF TELEPHONE COOPERATIVE. The name of a
577-3 telephone cooperative must:
577-4 (1) include the words "telephone" and "cooperative"
577-5 and the abbreviation "Inc."; and
577-6 (2) be distinct from the name of any other corporation
577-7 organized under the laws of or authorized to do business in this
577-8 state. (V.A.C.S. Art. 1528c, Sec. 6(a) (part).)
577-9 Sec. 162.054. ARTICLES OF INCORPORATION. (a) The articles
577-10 of incorporation of a telephone cooperative must:
577-11 (1) state that the articles are executed under this
577-12 chapter;
577-13 (2) be signed by each incorporator and acknowledged by
577-14 at least two incorporators; and
577-15 (3) state:
577-16 (A) the name of the cooperative;
577-17 (B) the purpose for which the cooperative is
577-18 formed;
577-19 (C) the name and address of each incorporator;
577-20 (D) the number of directors;
577-21 (E) the address of the cooperative's principal
577-22 office and the name and address of its agent on whom process may be
577-23 served;
577-24 (F) the duration of the cooperative;
577-25 (G) the terms under which a person is admitted
577-26 to membership and retains membership in the cooperative, unless the
577-27 articles expressly state that the determination of membership
578-1 matters is reserved to the directors by the bylaws; and
578-2 (H) any provisions that the incorporators
578-3 include for the regulation of the business and the conduct of the
578-4 affairs of the cooperative.
578-5 (b) The articles of incorporation do not need to state any
578-6 of the corporate powers enumerated in this chapter. (V.A.C.S.
578-7 Art. 1528c, Secs. 6(a) (part), (b).)
578-8 Sec. 162.055. FILING AND RECORDING OF ARTICLES OF
578-9 INCORPORATION. (a) The secretary of state shall receive articles
578-10 of incorporation of a telephone cooperative if the incorporators of
578-11 the cooperative:
578-12 (1) apply for filing the articles;
578-13 (2) furnish satisfactory evidence of compliance with
578-14 this chapter to the secretary of state; and
578-15 (3) pay a fee of $25.
578-16 (b) The secretary of state shall:
578-17 (1) file the articles of incorporation in the
578-18 secretary's office;
578-19 (2) record the articles at length in a book to be kept
578-20 for that purpose;
578-21 (3) retain the original articles of incorporation on
578-22 file in the secretary's office; and
578-23 (4) issue a certificate showing the recording of the
578-24 articles of incorporation and the telephone cooperative's authority
578-25 to do business under the articles.
578-26 (c) A copy of the articles of incorporation or of the record
578-27 of the articles, certified under the state seal, is evidence of the
579-1 creation of the telephone cooperative.
579-2 (d) The existence of the telephone cooperative dates from
579-3 the filing of the articles in the office of the secretary of state.
579-4 The certificate of the secretary of state is evidence of that
579-5 filing. (V.A.C.S. Art. 1528c, Secs. 7, 28 (part).)
579-6 Sec. 162.056. REVIVAL OF ARTICLES OF INCORPORATION. (a) If
579-7 the articles of incorporation of a telephone cooperative expire by
579-8 limitation, the cooperative, with the consent of a majority of its
579-9 members, may revive the articles by filing:
579-10 (1) new articles of incorporation under this chapter;
579-11 and
579-12 (2) a certified copy of the expired original articles.
579-13 (b) A telephone cooperative that revives its articles of
579-14 incorporation has all the privileges, immunities, and rights of
579-15 property exercised and held by the cooperative at the time the
579-16 original articles expired.
579-17 (c) New articles of incorporation filed under this section
579-18 must recite the privileges, immunities, and rights of property
579-19 exercised and held by the cooperative at the time the original
579-20 articles expired. (V.A.C.S. Art. 1528c, Sec. 8.)
579-21 Sec. 162.057. ORGANIZATIONAL MEETING. (a) After the
579-22 certificate of incorporation is issued, the incorporators of a
579-23 telephone cooperative shall meet to adopt bylaws, elect officers,
579-24 and transact other business that properly comes before the meeting.
579-25 (b) A majority of the incorporators shall call the
579-26 organizational meeting.
579-27 (c) The incorporators calling the organizational meeting
580-1 shall give at least three days' notice of the meeting by mail to
580-2 each incorporator. The notice must state the time and place of the
580-3 meeting. The notice may be waived in writing. (V.A.C.S.
580-4 Art. 1528c, Sec. 9.)
580-5 Sec. 162.058. PERFECTING DEFECTIVELY ORGANIZED CORPORATIONS.
580-6 (a) A telephone cooperative that files defective articles of
580-7 incorporation or fails to take an action necessary to perfect its
580-8 corporate organization may:
580-9 (1) file corrected articles of incorporation or amend
580-10 the original articles; and
580-11 (2) take any action necessary to correct the defect.
580-12 (b) An action taken under this section is valid and binding
580-13 on any person concerned. (V.A.C.S. Art. 1528c, Sec. 32.)
580-14 Sec. 162.059. NONPROFIT OPERATION. (a) A telephone
580-15 cooperative shall be operated on a nonprofit basis for the mutual
580-16 benefit of its members and patrons.
580-17 (b) A cooperative's bylaws and its contracts with members
580-18 and patrons must contain appropriate provisions relating to the
580-19 disposition of revenues and receipts to establish and maintain the
580-20 cooperative's nonprofit and cooperative character. (V.A.C.S.
580-21 Art. 1528c, Sec. 22.)
580-22 Sec. 162.060. MEMBERS NOT LIABLE FOR DEBTS OF TELEPHONE
580-23 COOPERATIVE. A member is not liable for a debt of a telephone
580-24 cooperative, and the member's property is not subject to execution
580-25 for that debt. (V.A.C.S. Art. 1528c, Sec. 24.)
580-26 Sec. 162.061. LICENSE FEE. Not later than July 1 of each
580-27 year, each telephone cooperative doing business in this state shall
581-1 pay to the secretary of state a fee of $10. (V.A.C.S. Art. 1528c,
581-2 Sec. 29 (part).)
581-3 Sec. 162.062. EXEMPTION FROM EXCISE TAXES. A telephone
581-4 cooperative doing business in this state is exempt from all excise
581-5 taxes but is exempt from the franchise tax imposed by Chapter 171,
581-6 Tax Code, only if the cooperative is exempted by that chapter.
581-7 (V.A.C.S. Art. 1528c, Sec. 29 (part).)
581-8 Sec. 162.063. EXEMPTION FROM APPLICATION OF SECURITIES ACT.
581-9 The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
581-10 Statutes) does not apply to:
581-11 (1) a note, bond, or other evidence of indebtedness
581-12 issued by a telephone cooperative doing business in this state to
581-13 the United States;
581-14 (2) an instrument executed to secure a debt of a
581-15 telephone cooperative to the United States; or
581-16 (3) the issuance of a membership certificate by a
581-17 telephone cooperative or a foreign corporation doing business in
581-18 this state under this chapter. (V.A.C.S. Art. 1528c, Sec. 31.)
581-19 Sec. 162.064. BYLAWS. (a) The board shall adopt the
581-20 initial bylaws of a telephone cooperative to be adopted following:
581-21 (1) an incorporation;
581-22 (2) a consolidation; or
581-23 (3) an amendment by an existing cooperative,
581-24 corporation, or association of its articles of incorporation as
581-25 provided by Section 162.082.
581-26 (b) After the initial bylaws are adopted, the members may
581-27 adopt, amend, or repeal the bylaws by the affirmative vote of a
582-1 majority of those members voting on the question at a meeting of
582-2 the members.
582-3 (c) The bylaws may contain any provision for the regulation
582-4 and management of the affairs of the telephone cooperative that is
582-5 consistent with the articles of incorporation. (V.A.C.S.
582-6 Art. 1528c, Sec. 10.)
582-7 Sec. 162.065. MEMBERSHIP. (a) Each incorporator of a
582-8 telephone cooperative is a member of the cooperative. A person
582-9 other than an incorporator may become a member of a telephone
582-10 cooperative only if the person agrees to use communication service
582-11 furnished by the cooperative when that service is made available
582-12 through the cooperative's facilities. The bylaws may prescribe
582-13 additional qualifications and limitations with respect to
582-14 membership.
582-15 (b) Membership in a telephone cooperative is evidenced by a
582-16 certificate of membership. A membership certificate must contain
582-17 the provisions, consistent with this chapter and the articles of
582-18 incorporation, that are prescribed by the cooperative's bylaws. A
582-19 certificate may be transferred only as provided by the bylaws.
582-20 (c) A telephone cooperative may become a member of another
582-21 telephone cooperative and may fully use the facilities and services
582-22 of that cooperative. (V.A.C.S. Art. 1528c, Sec. 11(a).)
582-23 Sec. 162.066. PATRONS. (a) A member is a patron of a
582-24 telephone cooperative if the member purchases local
582-25 telecommunications service or toll telecommunications service or
582-26 pays end user access charges in the ordinary course of business of
582-27 the cooperative.
583-1 (b) The use of interexchange access, payment of
583-2 interexchange access fees or settlements, or purchase of equipment
583-3 does not qualify a member or other person as a patron. (V.A.C.S.
583-4 Art. 1528c, Sec. 11(b).)
583-5 Sec. 162.067. MEETINGS OF MEMBERS. (a) A telephone
583-6 cooperative shall hold an annual meeting of members at the time and
583-7 place provided by the bylaws. Failure to hold the annual meeting
583-8 at the designated time does not result in forfeiture or dissolution
583-9 of the cooperative.
583-10 (b) A special meeting of the members may be called by:
583-11 (1) the president;
583-12 (2) the board;
583-13 (3) any three directors; or
583-14 (4) the lesser of:
583-15 (A) 200 members; or
583-16 (B) 10 percent of all the members. (V.A.C.S.
583-17 Art. 1528c, Secs. 12(a), (b).)
583-18 Sec. 162.068. NOTICE OF MEMBERS' MEETING. (a) Except as
583-19 otherwise provided by this chapter, written notice of each meeting
583-20 of the members shall be given to each member, either personally or
583-21 by mail, not earlier than the 25th day or later than the 10th day
583-22 before the date of the meeting.
583-23 (b) The notice must state the time and place of the meeting
583-24 and, in the case of a special meeting, each purpose for which the
583-25 meeting is called.
583-26 (c) A notice that is mailed is considered to have been given
583-27 when the notice is deposited in the United States mail with postage
584-1 prepaid addressed to the member at the member's address as it
584-2 appears on the records of the telephone cooperative. (V.A.C.S.
584-3 Art. 1528c, Sec. 12(c).)
584-4 Sec. 162.069. WAIVER OF NOTICE. A person entitled to notice
584-5 of a meeting may waive notice in writing either before or after the
584-6 meeting. If a person entitled to notice of a meeting attends the
584-7 meeting, the person's attendance constitutes a waiver of notice of
584-8 the meeting, unless the person participates in the meeting solely
584-9 to object to the transaction of business because the meeting is not
584-10 legally called or convened. (V.A.C.S. Art. 1528c, Sec. 13.)
584-11 Sec. 162.070. MEMBERS' MEETING: QUORUM AND VOTING. (a)
584-12 Unless the bylaws prescribe a greater percentage or number of
584-13 members for a quorum, a quorum at a meeting of the members of a
584-14 telephone cooperative is the personal presence of:
584-15 (1) 10 percent of all members, if the cooperative has
584-16 500 or fewer members; or
584-17 (2) the greater of 50 members or two percent of all
584-18 members, if the cooperative has more than 500 members.
584-19 (b) If fewer than a quorum are present at a meeting, a
584-20 majority of the members present in person may adjourn the meeting
584-21 from time to time without further notice.
584-22 (c) Each member present at a meeting of the members is
584-23 entitled to one vote on each matter submitted to a vote at the
584-24 meeting. Voting must be in person unless the bylaws provide for
584-25 voting by mail. (V.A.C.S. Art. 1528c, Secs. 12(d), (e).)
584-26 Sec. 162.071. BOARD OF DIRECTORS. (a) A board of at least
584-27 five directors shall manage the business of a telephone
585-1 cooperative. Each director must be a member of the cooperative.
585-2 The bylaws must prescribe the number of directors and their
585-3 qualifications other than those prescribed by this chapter.
585-4 (b) The board may exercise any power of a telephone
585-5 cooperative not conferred on the members by this chapter or by the
585-6 cooperative's articles of incorporation or bylaws. (V.A.C.S.
585-7 Art. 1528c, Secs. 6(a) (part), 14(a) (part), (e).)
585-8 Sec. 162.072. ELECTION OF DIRECTORS; TERMS. (a) The
585-9 incorporators of a telephone cooperative named in the articles of
585-10 incorporation shall serve as directors and hold office until the
585-11 first annual meeting of the members and until their successors are
585-12 elected and qualify.
585-13 (b) At each annual meeting or, in the case of failure to
585-14 hold the annual meeting as specified in the bylaws, at a special
585-15 meeting called for that purpose, the members shall elect directors
585-16 to hold office until the next annual members' meeting, except as
585-17 otherwise provided by this chapter. Except as provided by
585-18 Subsection (e), each director holds office for the term for which
585-19 the person is elected and until the person's successor is elected
585-20 and qualifies.
585-21 (c) Instead of electing all the directors annually, the
585-22 bylaws may provide that the directors, other than those named in
585-23 the articles of incorporation to serve until the first annual
585-24 meeting of the members, are elected by the members for a term of
585-25 two years or three years. The terms must be set so that:
585-26 (1) one-half of the directors, as nearly as possible,
585-27 are elected annually, if a two-year term is provided; or
586-1 (2) one-third of the directors, as nearly as possible,
586-2 are elected annually, if a three-year term is provided.
586-3 (d) After the implementation of two-year or three-year terms
586-4 for directors, as directors' terms expire, the members shall elect
586-5 their successors to serve until the second or third succeeding
586-6 annual meeting after their election, as appropriate.
586-7 (e) The bylaws must prescribe the manner of electing a
586-8 successor to a director who resigns, dies, or otherwise becomes
586-9 incapable of acting. The bylaws may provide for the removal of a
586-10 director from office and for the election of the director's
586-11 successor. (V.A.C.S. Art. 1528c, Secs. 6(a) (part), 14(a) (part),
586-12 (b), (c).)
586-13 Sec. 162.073. COMPENSATION OF DIRECTORS. (a) A director
586-14 may not receive a salary for services as a director. Except in an
586-15 emergency, a director may not receive a salary for services in a
586-16 capacity other than director without the approval of the members.
586-17 (b) The bylaws may:
586-18 (1) prescribe a fixed fee for attendance at each board
586-19 meeting, committee meeting, industry-related conference approved by
586-20 the board, or training program; and
586-21 (2) provide for reimbursement of actual expenses of
586-22 attendance or a reasonable per diem. (V.A.C.S. Art. 1528c, Sec.
586-23 14(a) (part).)
586-24 Sec. 162.074. INSURANCE FOR DIRECTORS. A telephone
586-25 cooperative may provide liability, accident, life, and health
586-26 insurance coverage for a director who chooses to have that
586-27 coverage. (V.A.C.S. Art. 1528c, Sec. 14(a) (part).)
587-1 Sec. 162.075. BOARD MEETINGS; QUORUM. (a) The bylaws shall
587-2 prescribe the manner of holding board meetings.
587-3 (b) A majority of the directors is a quorum. (V.A.C.S.
587-4 Art. 1528c, Secs. 14(a) (part), (d).)
587-5 Sec. 162.076. DISTRICTS. (a) The bylaws may provide for
587-6 the territory served or to be served by a telephone cooperative to
587-7 be divided into two or more districts for any purpose, including
587-8 the nomination and election of directors and the election and
587-9 functioning of district delegates.
587-10 (b) The bylaws must prescribe:
587-11 (1) the boundaries of each district or the manner of
587-12 establishing a district's boundaries;
587-13 (2) the manner of changing a district's boundaries;
587-14 and
587-15 (3) the manner in which each district functions.
587-16 (c) District delegates may nominate and elect directors. A
587-17 district delegate must be a member.
587-18 (d) A member may not vote by proxy or by mail at a district
587-19 meeting.
587-20 (e) A district delegate may not vote by proxy or by mail at
587-21 any meeting. (V.A.C.S. Art. 1528c, Sec. 15.)
587-22 Sec. 162.077. OFFICERS, AGENTS, AND EMPLOYEES. (a) The
587-23 board of a telephone cooperative shall annually elect from the
587-24 board's membership a president, a vice president, a secretary, and
587-25 a treasurer.
587-26 (b) An officer who ceases to be a director ceases to hold
587-27 office.
588-1 (c) The same person may hold the offices of secretary and of
588-2 treasurer.
588-3 (d) The board may also elect or appoint other officers,
588-4 agents, or employees as the board considers appropriate and shall
588-5 prescribe the powers and duties of those persons.
588-6 (e) An officer may be removed from office and a successor
588-7 elected in the manner prescribed by the bylaws. (V.A.C.S.
588-8 Art. 1528c, Sec. 16.)
588-9 Sec. 162.078. EXECUTIVE COMMITTEE. (a) The bylaws of a
588-10 telephone cooperative may authorize the board to elect an executive
588-11 committee from the board's membership.
588-12 (b) The board may delegate to the executive committee the
588-13 management of the current and ordinary business of the cooperative
588-14 and other duties as prescribed by the bylaws.
588-15 (c) The designation of an executive committee and the
588-16 delegation of authority to the committee does not relieve the board
588-17 or any director of a responsibility imposed on the board or the
588-18 director by this chapter. (V.A.C.S. Art. 1528c, Sec. 17.)
588-19 Sec. 162.079. INDEMNIFICATION. Article 2.22A, Texas
588-20 Non-Profit Corporation Act (Article 1396-2.22A, Vernon's Texas
588-21 Civil Statutes), applies to a telephone cooperative in the same
588-22 manner as if the cooperative were formed under the Texas Non-Profit
588-23 Corporation Act. (V.A.C.S. Art. 1528c, Sec. 4A.)
588-24 Sec. 162.080. CHANGE OF LOCATION OF PRINCIPAL OFFICE.
588-25 (a) A telephone cooperative may, with the authorization of the
588-26 board or the members, change the location of its principal office
588-27 by filing a certificate reciting the change of principal office
589-1 with the secretary of state.
589-2 (b) The cooperative's president or vice president must
589-3 execute and acknowledge the certificate under the cooperative's
589-4 seal as attested by the secretary.
589-5 (c) The secretary of state shall charge and collect a fee of
589-6 $5 for filing a certificate of change of principal office.
589-7 (V.A.C.S. Art. 1528c, Secs. 19, 28 (part).)
589-8 Sec. 162.081. DIRECTOR, OFFICER, OR MEMBER ACTING AS NOTARY.
589-9 A person who is an officer, director, or member of a telephone
589-10 cooperative and who is authorized to take acknowledgments under
589-11 state law is not disqualified because of the person's association
589-12 with the cooperative from taking an acknowledgment of an instrument
589-13 executed in favor of the cooperative or to which the cooperative is
589-14 a party. (V.A.C.S. Art. 1528c, Sec. 27.)
589-15 Sec. 162.082. APPLICABILITY TO CORPORATIONS ORGANIZED UNDER
589-16 OTHER LAW. A cooperative or nonprofit corporation or association
589-17 organized under any other law of this state for the purpose of
589-18 furnishing communication service may, by a majority vote of the
589-19 members present in person at a meeting called for that purpose,
589-20 amend its articles of incorporation to comply with this chapter.
589-21 (V.A.C.S. Art. 1528c, Sec. 33.)
589-22 (Sections 162.083-162.120 reserved for expansion)
589-23 SUBCHAPTER C. POWERS OF TELEPHONE COOPERATIVE
589-24 Sec. 162.121. GENERAL POWERS. A telephone cooperative may:
589-25 (1) sue and be sued in its corporate name;
589-26 (2) adopt and alter a corporate seal and use the seal
589-27 or a facsimile of the seal as required by law;
590-1 (3) construct, acquire, lease, improve, install,
590-2 equip, maintain, and operate, and, subject to Sections 162.125 and
590-3 162.126, dispose of, lease, or encumber, communication lines,
590-4 facilities or systems, lands, structures, plants and equipment,
590-5 exchanges, and other property, considered appropriate to
590-6 accomplish the purpose for which the cooperative is organized;
590-7 (4) issue membership certificates as provided by this
590-8 chapter;
590-9 (5) borrow money and otherwise contract indebtedness,
590-10 issue or guarantee notes, bonds, and other evidences of
590-11 indebtedness, and secure the payment of indebtedness by pledge or
590-12 other encumbrance on any or all of its property or revenue;
590-13 (6) conduct its business and exercise its powers
590-14 inside or outside this state;
590-15 (7) adopt, amend, and repeal bylaws;
590-16 (8) make any contracts appropriate for the full
590-17 exercise of the powers granted by this chapter; and
590-18 (9) perform any other acts and exercise any other
590-19 power that may be appropriate to accomplish the purpose for which
590-20 the cooperative is organized. (V.A.C.S. Art. 1528c, Sec. 4
590-21 (part).)
590-22 Sec. 162.122. POWERS RELATING TO PROVISION OF COMMUNICATION
590-23 SERVICE. (a) A telephone cooperative may:
590-24 (1) furnish and improve communication service to its
590-25 members, to governmental agencies and political subdivisions, to
590-26 any number of subscribers of other communication systems through
590-27 interconnection of facilities, and to any number of users through
591-1 pay stations;
591-2 (2) connect and interconnect its communication lines,
591-3 facilities, or systems with other communication lines, facilities,
591-4 or systems;
591-5 (3) make its facilities available to persons
591-6 furnishing communication service inside or outside this state; and
591-7 (4) construct, maintain, and operate a communication
591-8 line along, on, under, or across publicly owned land or a public
591-9 thoroughfare, subject to the same restrictions and obligations that
591-10 apply to an electric transmission cooperative under Subchapter C,
591-11 Chapter 181.
591-12 (b) A telephone cooperative that acquires communication
591-13 facilities may continue to furnish service to a person who is
591-14 already receiving service from those facilities without requiring
591-15 the person to become a member, but the person may become a member
591-16 on the terms prescribed by the bylaws. (V.A.C.S. Art. 1528c, Sec.
591-17 4 (part).)
591-18 Sec. 162.123. CONNECTION AND INTERCONNECTION OF FACILITIES.
591-19 A telephone cooperative doing business in this state may require a
591-20 person furnishing communication service to the public in this state
591-21 to interconnect that person's lines, facilities, or systems with,
591-22 or otherwise make available those lines, facilities, or systems to,
591-23 the cooperative's communication lines, facilities, or systems to
591-24 provide a continuous line of communication for the cooperative's
591-25 subscribers. (V.A.C.S. Art. 1528c, Sec. 30 (part).)
591-26 Sec. 162.124. EMINENT DOMAIN. A telephone cooperative may
591-27 exercise the power of eminent domain in the manner provided by
592-1 state law for the exercise of that power by other corporations
592-2 constructing or operating communication lines, facilities, or
592-3 systems. (V.A.C.S. Art. 1528c, Sec. 4 (part).)
592-4 Sec. 162.125. ENCUMBRANCE AND DISPOSITION OF PROPERTY
592-5 WITHOUT MEMBERS' AUTHORIZATION. (a) The board of a telephone
592-6 cooperative may, without authorization of the members, authorize
592-7 the execution and delivery of a mortgage or deed of trust of or the
592-8 encumbering of any property of the cooperative, including property
592-9 to be acquired and the revenues from property of the cooperative,
592-10 to secure any indebtedness of the cooperative to the United States
592-11 or any lending institution licensed by the United States or a
592-12 state.
592-13 (b) A mortgage or deed of trust described by Subsection (a)
592-14 is exempt from a tax for recording the instrument. (V.A.C.S.
592-15 Art. 1528c, Sec. 23(a).)
592-16 Sec. 162.126. ENCUMBRANCE, LEASE, AND DISPOSITION OF
592-17 PROPERTY WITH MEMBERS' AUTHORIZATION. (a) Except as provided by
592-18 Section 162.125, a telephone cooperative may not dispose of, lease,
592-19 or encumber all or a major portion of its property unless the
592-20 disposition, lease, or encumbrance is authorized by the affirmative
592-21 vote of at least two-thirds of all the members of the cooperative.
592-22 (b) The board may, on the authorization of two-thirds of all
592-23 the members of the cooperative at a members' meeting, dispose of or
592-24 lease all or a major portion of its property to:
592-25 (1) another telephone cooperative;
592-26 (2) a foreign corporation doing business in this state
592-27 under this chapter; or
593-1 (3) the holder of a note, bond, or other evidence of
593-2 indebtedness issued to the United States or to a lending
593-3 institution licensed by the United States or a state.
593-4 (c) The notice of a meeting at which a disposition or lease
593-5 under Subsection (b) is to be considered must state the proposed
593-6 action. (V.A.C.S. Art. 1528c, Sec. 23(b).)
593-7 (Sections 162.127-162.150 reserved for expansion)
593-8 SUBCHAPTER D. AMENDMENT OF ARTICLES OF INCORPORATION
593-9 Sec. 162.151. AMENDMENT OF ARTICLES OF INCORPORATION. A
593-10 telephone cooperative may amend its articles of incorporation in
593-11 accordance with this subchapter. (V.A.C.S. Art. 1528c, Sec. 18
593-12 (part).)
593-13 Sec. 162.152. PRESENTATION AND APPROVAL OF PROPOSED
593-14 AMENDMENT. (a) A proposed amendment to the articles of
593-15 incorporation must be presented to a meeting of the members. The
593-16 notice of the meeting must state the proposed amendment or must
593-17 have the proposed amendment attached to it.
593-18 (b) A proposed amendment, with any changes, may be approved
593-19 only on the affirmative vote of at least two-thirds of the members
593-20 voting on the question at the meeting. (V.A.C.S. Art. 1528c, Sec.
593-21 18 (part).)
593-22 Sec. 162.153. ARTICLES OF AMENDMENT. (a) The president or
593-23 vice president, on behalf of the telephone cooperative, shall
593-24 execute and acknowledge the approved articles of amendment. The
593-25 cooperative's seal must be affixed to the articles of amendment and
593-26 attested by its secretary.
593-27 (b) The articles of amendment must state:
594-1 (1) that the articles of amendment are executed under
594-2 this chapter;
594-3 (2) the name of the telephone cooperative;
594-4 (3) the address of the cooperative's principal office;
594-5 and
594-6 (4) the amendment to the articles of incorporation.
594-7 (c) The president or vice president executing the articles
594-8 of amendment shall make and attach to the articles an affidavit
594-9 stating that the cooperative complied with this subchapter with
594-10 respect to the amendment set forth in the articles. (V.A.C.S.
594-11 Art. 1528c, Sec. 18 (part).)
594-12 Sec. 162.154. FILING OF ARTICLES OF AMENDMENT. (a)
594-13 Articles of amendment shall be filed with the secretary of state in
594-14 the same manner as the original articles of incorporation.
594-15 (b) The secretary of state shall charge and collect a fee of
594-16 $25 for filing articles of amendment. (V.A.C.S. Art. 1528c, Secs.
594-17 18 (part), 28 (part).)
594-18 (Sections 162.155-162.200 reserved for expansion)
594-19 SUBCHAPTER E. CONSOLIDATION OR MERGER OF TELEPHONE
594-20 COOPERATIVES
594-21 Sec. 162.201. CONSOLIDATION. (a) Two or more telephone
594-22 cooperatives may enter into an agreement to consolidate the
594-23 cooperatives. The agreement must state:
594-24 (1) the terms of the consolidation;
594-25 (2) the name of the proposed consolidated cooperative;
594-26 (3) the number of directors of the proposed
594-27 consolidated cooperative;
595-1 (4) the time of the annual meeting and election; and
595-2 (5) the names of at least five persons to be directors
595-3 until the first annual meeting.
595-4 (b) A consolidation agreement may be approved only on the
595-5 votes of a majority of the members of each telephone cooperative at
595-6 a regular meeting or at a special meeting of its members called for
595-7 that purpose.
595-8 (c) Telephone cooperatives may not consolidate for the
595-9 purpose of duplicating the facilities of another communication
595-10 company where the other communication company is giving or is
595-11 willing to give reasonably adequate communication service.
595-12 (V.A.C.S. Art. 1528c, Secs. 20(a) (part), (b) (part).)
595-13 Sec. 162.202. ARTICLES OF CONSOLIDATION. (a) The articles
595-14 of consolidation must:
595-15 (1) conform substantially to original articles of
595-16 incorporation of a telephone cooperative; and
595-17 (2) be executed, acknowledged, filed, and recorded in
595-18 the same manner as original articles of incorporation.
595-19 (b) The directors named in the consolidation agreement shall
595-20 as incorporators sign and acknowledge the articles of
595-21 consolidation.
595-22 (c) The secretary of state shall charge and collect a fee of
595-23 $50 for filing articles of consolidation.
595-24 (d) When the secretary of state accepts the articles of
595-25 consolidation for filing and recording and issues a certificate of
595-26 consolidation, the proposed consolidated telephone cooperative
595-27 described in the articles under its designated name exists as a
596-1 body corporate, with all the powers of a telephone cooperative
596-2 originally organized under this chapter. (V.A.C.S. Art. 1528c,
596-3 Secs. 20(a) (part), (b) (part), 28 (part).)
596-4 Sec. 162.203. MERGER. (a) One or more telephone
596-5 cooperatives may merge into another cooperative as provided by this
596-6 section and Section 162.204.
596-7 (b) The proposition for the merger and proposed articles of
596-8 merger must be submitted at a meeting of the members of each
596-9 merging cooperative and the surviving cooperative. A copy of the
596-10 proposed articles of merger must be attached to the notice of each
596-11 meeting.
596-12 (c) A proposed merger and proposed articles of merger, with
596-13 any amendments, may be approved only on the affirmative vote of at
596-14 least two-thirds of the members of each cooperative voting on the
596-15 proposed merger and articles. (V.A.C.S. Art. 1528c, Secs. 20A(a),
596-16 (b), (c) (part).)
596-17 Sec. 162.204. ARTICLES OF MERGER. (a) The president or
596-18 vice president of each telephone cooperative, on behalf of the
596-19 telephone cooperative, shall execute and acknowledge the approved
596-20 articles of merger. The cooperative's seal must be affixed to the
596-21 articles of merger and attested by its secretary.
596-22 (b) The articles of merger must state:
596-23 (1) that they are executed under this chapter;
596-24 (2) the name of each merging cooperative and the
596-25 address of its principal office;
596-26 (3) the name of the surviving cooperative and the
596-27 address of its principal office;
597-1 (4) that each merging cooperative and the surviving
597-2 cooperative agree to the merger;
597-3 (5) the name and address of each director of the
597-4 surviving cooperative;
597-5 (6) the terms of the merger and the manner in which
597-6 the merger will be carried out, including the manner in which
597-7 members of the merging cooperatives become or may become members of
597-8 the surviving cooperative;
597-9 (7) the duration of the surviving cooperative; and
597-10 (8) the purpose for which the surviving cooperative is
597-11 formed.
597-12 (c) The articles of merger may contain any provision
597-13 consistent with this chapter considered appropriate for the conduct
597-14 of the business of the surviving cooperative. The president or
597-15 vice president of each cooperative executing the articles of merger
597-16 shall make and attach to the articles an affidavit stating that the
597-17 cooperative complied with this subchapter with respect to the
597-18 articles.
597-19 (d) The original and a copy of the articles of merger shall
597-20 be delivered to the secretary of state. If the secretary of state
597-21 finds that the articles conform to law, the secretary of state, on
597-22 payment of a fee of $50, shall:
597-23 (1) file and record the articles of merger;
597-24 (2) issue a certificate of merger; and
597-25 (3) attach to the certificate of merger the copy of
597-26 the articles of merger and deliver the certificate and attached
597-27 copy to the surviving cooperative or its representative. (V.A.C.S.
598-1 Art. 1528c, Secs. 20A(c) (part), (d), (e), (f), 28 (part).)
598-2 Sec. 162.205. EFFECT OF CONSOLIDATION OR MERGER. (a) In a
598-3 consolidation the existence of each telephone cooperative ceases
598-4 and the articles of consolidation are considered to be the articles
598-5 of incorporation of the new cooperative. In a merger the separate
598-6 existence of each merging telephone cooperative ceases and the
598-7 articles of incorporation of the surviving cooperative are
598-8 considered to be amended to the extent, if any, that amendment is
598-9 provided for in the articles of merger.
598-10 (b) All the rights, privileges, immunities, property, and
598-11 applications for membership of each of the consolidating or merging
598-12 cooperatives are transferred to and vested in the new or surviving
598-13 cooperative, except that this chapter does not relieve a
598-14 cooperative of the obligation to comply with the applicable
598-15 provisions of Title 2.
598-16 (c) The new or surviving cooperative is liable for all the
598-17 liabilities and obligations of the consolidating or merging
598-18 cooperatives. A claim existing or action or proceeding pending by
598-19 or against a consolidating or merging cooperative may be prosecuted
598-20 as if the consolidation or merger had not taken place, and the new
598-21 or surviving cooperative may be substituted in the place of the
598-22 consolidating or merging cooperative. The consolidation or merger
598-23 does not impair the rights of creditors of or liens on the
598-24 property of a consolidating or merging cooperative. (V.A.C.S.
598-25 Art. 1528c, Sec. 20B.)
598-26 (Sections 162.206-162.250 reserved for expansion)
598-27 SUBCHAPTER F. CONVERSION OF CORPORATION INTO TELEPHONE
599-1 COOPERATIVE
599-2 Sec. 162.251. CONVERSION OF CORPORATION INTO TELEPHONE
599-3 COOPERATIVE. (a) A corporation organized under the laws of this
599-4 state that furnishes or is authorized to furnish communication
599-5 service may be converted into a telephone cooperative in accordance
599-6 with this subchapter. On conversion, the corporation is subject to
599-7 this chapter as if it had been originally organized under this
599-8 chapter.
599-9 (b) The proposition for the conversion and proposed articles
599-10 of conversion must be submitted at a meeting of the members or
599-11 stockholders of the corporation or, in the case of a corporation
599-12 that does not have members or stockholders, at a meeting of the
599-13 incorporators of the corporation. A copy of the proposed articles
599-14 of conversion must be attached to the notice of the meeting.
599-15 (c) A proposed conversion and proposed articles of
599-16 conversion, with any amendments, may be approved only on the
599-17 affirmative vote of:
599-18 (1) at least two-thirds of the members of the
599-19 corporation voting on the proposed conversion and articles;
599-20 (2) the holders of at least two-thirds of the shares
599-21 of the capital stock of the corporation represented at the meeting
599-22 and voting on the proposition and articles, if the corporation is a
599-23 stock corporation; or
599-24 (3) at least two-thirds of the corporation's
599-25 incorporators, if the corporation does not have members or
599-26 outstanding shares of capital stock. (V.A.C.S. Art. 1528c, Secs.
599-27 20C(a), (b), (c) (part).)
600-1 Sec. 162.252. ARTICLES OF CONVERSION. (a) The president or
600-2 vice president, on behalf of the corporation, shall execute and
600-3 acknowledge the approved articles of conversion. The
600-4 corporation's seal must be affixed to the articles and attested by
600-5 its secretary.
600-6 (b) The articles of conversion must state:
600-7 (1) that they are executed under this chapter;
600-8 (2) the name of the corporation and the address of its
600-9 principal office before its conversion into a telephone
600-10 cooperative;
600-11 (3) the law under which the corporation was organized;
600-12 (4) that the corporation elects to become a
600-13 cooperative, nonprofit corporation subject to this chapter;
600-14 (5) the corporation's name as a cooperative;
600-15 (6) the address of the principal office of the
600-16 cooperative;
600-17 (7) the name and address of each director of the
600-18 cooperative;
600-19 (8) the manner in which a member, stockholder, or
600-20 incorporator of the corporation becomes or may become a member of
600-21 the cooperative;
600-22 (9) the duration of the cooperative; and
600-23 (10) the purpose for which the cooperative is formed.
600-24 (c) The articles of conversion may contain any provision
600-25 consistent with this chapter considered appropriate for the conduct
600-26 of the business of the cooperative. The president or vice
600-27 president executing the articles of conversion shall make and
601-1 attach to the articles an affidavit stating that the corporation
601-2 complied with this section with respect to the articles. The
601-3 articles of conversion are considered to be the articles of
601-4 incorporation of the cooperative.
601-5 (d) The original and a copy of the articles of conversion
601-6 shall be delivered to the secretary of state. If the secretary of
601-7 state finds that the articles conform to law, the secretary of
601-8 state, on payment of a fee of $50, shall:
601-9 (1) file and record the articles of conversion;
601-10 (2) issue a certificate of conversion; and
601-11 (3) attach to the certificate of conversion the copy
601-12 of the articles of conversion and deliver the certificate and
601-13 attached copy to the cooperative or its representative. (V.A.C.S.
601-14 Art. 1528c, Secs. 20C(c) (part), (d), (e), (f), 28 (part).)
601-15 Sec. 162.253. CONSOLIDATION AND CONVERSION OF CORPORATIONS
601-16 INTO TELEPHONE COOPERATIVE. (a) Two or more corporations
601-17 organized under the laws of this state that furnish or are
601-18 authorized to furnish communication service may, if otherwise
601-19 permitted to consolidate under state law, consolidate and convert
601-20 into a telephone cooperative in accordance with this subchapter.
601-21 On consolidation and conversion, the new cooperative is subject to
601-22 this chapter as if it had been originally organized under this
601-23 chapter.
601-24 (b) The proposition for the consolidation and conversion and
601-25 the proposed articles of consolidation and conversion, with any
601-26 amendments, must be approved by each corporation in accordance
601-27 with:
602-1 (1) the law under which it was organized; and
602-2 (2) Sections 162.251 and 162.252. (V.A.C.S.
602-3 Art. 1528c, Secs. 20D(a), (b).)
602-4 Sec. 162.254. ARTICLES OF CONSOLIDATION AND CONVERSION. (a)
602-5 The approved articles of consolidation and conversion:
602-6 (1) shall be executed, acknowledged, and sealed as
602-7 prescribed by Section 162.252 and by the law under which the
602-8 consolidating and converting corporations were organized;
602-9 (2) must:
602-10 (A) state that they are executed under this
602-11 chapter and the law under which the corporations were organized and
602-12 that each consolidating corporation elects that the new corporation
602-13 be a cooperative; and
602-14 (B) contain all other information required by
602-15 the law under which the corporations were organized; and
602-16 (3) may contain any provision consistent with this
602-17 chapter considered appropriate for the conduct of the business of
602-18 the cooperative.
602-19 (b) The president or vice president executing the articles
602-20 of consolidation and conversion shall make and attach to the
602-21 articles an affidavit stating that the corporations complied with
602-22 this section and Section 162.253 and with the applicable provisions
602-23 of the law under which the consolidating corporations were
602-24 organized with respect to the articles. The articles of
602-25 consolidation and conversion are considered to be the articles of
602-26 incorporation of the cooperative and shall be filed in accordance
602-27 with the provisions both of this chapter and of the law under which
603-1 the consolidating corporations were organized.
603-2 (c) The original and a copy of the articles of consolidation
603-3 and conversion shall be delivered to the secretary of state. If
603-4 the secretary of state finds that the articles conform to law, the
603-5 secretary of state, on payment of a fee of $50, shall:
603-6 (1) file and record the articles of consolidation and
603-7 conversion;
603-8 (2) issue a certificate of consolidation and
603-9 conversion; and
603-10 (3) attach to the certificate the copy of the articles
603-11 and deliver the certificate and attached copy to the cooperative or
603-12 its representative. (V.A.C.S. Art. 1528c, Secs. 20D(c), (d), 28
603-13 (part).)
603-14 (Sections 162.255-162.300 reserved for expansion)
603-15 SUBCHAPTER G. DISSOLUTION
603-16 Sec. 162.301. DISSOLUTION. (a) A telephone cooperative may
603-17 be dissolved by a two-thirds vote of all the members of the
603-18 cooperative. The vote must be taken at a regular meeting or at a
603-19 special meeting of its members called for that purpose. Votes must
603-20 be cast in person.
603-21 (b) A certificate of dissolution must be:
603-22 (1) signed by the president or vice president and
603-23 attested by the secretary, certifying to the dissolution and
603-24 stating that the officers have been authorized by a vote of the
603-25 members under Subsection (a) to execute and file the certificate;
603-26 and
603-27 (2) executed, acknowledged, filed, and recorded in the
604-1 same manner as original articles of incorporation of a telephone
604-2 cooperative.
604-3 (c) The cooperative is dissolved when the secretary of state
604-4 accepts the certificate of dissolution for filing and recording and
604-5 issues a certificate of dissolution.
604-6 (d) The secretary of state shall charge and collect:
604-7 (1) a fee of $5 for filing a certificate of election
604-8 to dissolve; and
604-9 (2) a fee of $5 for filing articles of dissolution.
604-10 (V.A.C.S. Art. 1528c, Secs. 21(a), 28 (part).)
604-11 Sec. 162.302. EXISTENCE FOLLOWING DISSOLUTION. (a) A
604-12 dissolved telephone cooperative continues to exist to:
604-13 (1) satisfy existing liabilities or obligations;
604-14 (2) collect or liquidate its assets; and
604-15 (3) take any other action required to adjust and wind
604-16 up its business and affairs.
604-17 (b) A dissolved telephone cooperative may sue and be sued in
604-18 its corporate name. (V.A.C.S. Art. 1528c, Sec. 21(b) (part).)
604-19 Sec. 162.303. DISTRIBUTION OF NET ASSETS ON DISSOLUTION.
604-20 Assets of a dissolved telephone cooperative that remain after all
604-21 liabilities or obligations of the cooperative have been satisfied
604-22 shall be distributed as follows:
604-23 (1) first, to patrons for the pro rata return of
604-24 amounts standing to their credit because of their patronage; and
604-25 (2) second, to members for the pro rata repayment of
604-26 membership fees. (V.A.C.S. Art. 1528c, Sec. 21(b) (part).)
604-27 Sec. 162.304. DISSOLUTION OF DEFECTIVELY INCORPORATED
605-1 TELEPHONE COOPERATIVE. (a) A telephone cooperative that purports
605-2 to have been incorporated or reincorporated under this chapter but
605-3 that has not complied with a requirement for legal corporate
605-4 existence may file a certificate of dissolution in the same manner
605-5 as a validly incorporated telephone cooperative.
605-6 (b) The certificate of dissolution may be authorized by a
605-7 majority of the incorporators or directors at a meeting called by
605-8 an incorporator and held at the principal office of the cooperative
605-9 named in the articles of incorporation.
605-10 (c) The incorporator calling the meeting must give at least
605-11 ten days' notice of the meeting by mail to the last known post
605-12 office address of each incorporator or director. (V.A.C.S.
605-13 Art. 1528c, Sec. 21(c).)
605-14 CHAPTER 163. JOINT POWERS AGENCIES
605-15 SUBCHAPTER A. GENERAL PROVISIONS
605-16 Sec. 163.001. DEFINITIONS
605-17 (Sections 163.002-163.010 reserved for expansion)
605-18 SUBCHAPTER B. COOPERATION BY PUBLIC AND PRIVATE ENTITIES
605-19 Sec. 163.011. EFFECT OF SUBCHAPTER
605-20 Sec. 163.012. AUTHORITY TO MAKE AGREEMENTS
605-21 Sec. 163.013. GENERAL RIGHTS, POWERS, AND DUTIES OF ENTITIES
605-22 Sec. 163.014. USE OF EMINENT DOMAIN
605-23 Sec. 163.015. TAXATION
605-24 Sec. 163.016. INSURANCE
605-25 (Sections 163.017-163.050 reserved for expansion)
605-26 SUBCHAPTER C. MUNICIPAL POWER AGENCIES
605-27 Sec. 163.051. DEFINITIONS
606-1 Sec. 163.052. CONSTRUCTION
606-2 Sec. 163.053. CONFLICTS WITH OTHER LAW
606-3 Sec. 163.054. CREATION OF AGENCY
606-4 Sec. 163.055. RE-CREATION OF AGENCY
606-5 Sec. 163.056. NOTICE
606-6 Sec. 163.057. CONTENTS OF CONCURRENT ORDINANCE
606-7 Sec. 163.058. ELECTION
606-8 Sec. 163.059. BOARD OF DIRECTORS
606-9 Sec. 163.060. POWERS
606-10 Sec. 163.061. CONSTRUCTION CONTRACTS
606-11 Sec. 163.062. SALE OR EXCHANGE OF ELECTRIC ENERGY
606-12 Sec. 163.063. RATES AND CHARGES
606-13 Sec. 163.064. REVENUE BONDS
606-14 Sec. 163.065. REFUNDING BONDS
606-15 Sec. 163.066. ISSUANCE, FORM, AND PROVISIONS OF BONDS
606-16 Sec. 163.067. NONNEGOTIABLE PURCHASE MONEY NOTES
606-17 Sec. 163.068. BOND ANTICIPATION NOTES
606-18 (Sections 163.069-163.100 reserved for expansion)
606-19 SUBCHAPTER D. AGENCY RECEIVING POWER THROUGH
606-20 INTERSTATE SYSTEM
606-21 Sec. 163.101. CREATION
606-22 Sec. 163.102. POWERS
606-23 (Sections 163.103-163.120 reserved for expansion)
606-24 SUBCHAPTER E. ELECTRIC COOPERATIVE CORPORATIONS
606-25 Sec. 163.121. CREATION
606-26 Sec. 163.122. APPLICATION OF OPEN MEETINGS LAW
606-27 Sec. 163.123. AUTHORITY OF PUBLIC UTILITY COMMISSION
607-1 Sec. 163.124. POWER TO ISSUE CERTAIN BONDS OR SECURITIES
607-2 CHAPTER 163. JOINT POWERS AGENCIES
607-3 SUBCHAPTER A. GENERAL PROVISIONS
607-4 Sec. 163.001. DEFINITIONS. In this chapter:
607-5 (1) "Electric facility" means a facility necessary or
607-6 incidental to generating or transmitting electric power and energy,
607-7 including:
607-8 (A) a generating unit or plant or a plant site;
607-9 (B) transmission lines;
607-10 (C) a right-of-way or other right relating to a
607-11 facility; and
607-12 (D) property and equipment.
607-13 (2) "Entity" means a person who engages in the
607-14 authorized generation, transmission, or distribution of electric
607-15 energy for sale to the public.
607-16 (3) "Private entity" means an entity that is not a
607-17 public entity.
607-18 (4) "Public entity" means an entity that is an agency
607-19 or political subdivision of this state. (V.A.C.S. Art. 1435a, Sec.
607-20 2.)
607-21 (Sections 163.002-163.010 reserved for expansion)
607-22 SUBCHAPTER B. COOPERATION BY PUBLIC AND PRIVATE ENTITIES
607-23 Sec. 163.011. EFFECT OF SUBCHAPTER. This subchapter does
607-24 not affect:
607-25 (1) the statutory purposes prescribed by state law
607-26 relating to creating, establishing, or operating an entity that
607-27 co-owns a facility;
608-1 (2) an entity's rights or powers in effect on August
608-2 27, 1973, relating to the generation, transmission, distribution,
608-3 or sale of electric power and energy; or
608-4 (3) a contract in effect on August 27, 1973.
608-5 (V.A.C.S. Art. 1435a, Secs. 1 (part), 5.)
608-6 Sec. 163.012. AUTHORITY TO MAKE AGREEMENTS. Public and
608-7 private entities may by agreement jointly plan, finance, acquire,
608-8 construct, own, operate, and maintain electric facilities to:
608-9 (1) achieve economies of scale in providing electric
608-10 energy to the public;
608-11 (2) promote the economic development of this state and
608-12 its natural resources; and
608-13 (3) meet the state's future power needs. (V.A.C.S.
608-14 Art. 1435a, Secs. 1 (part), 3 (part).)
608-15 Sec. 163.013. GENERAL RIGHTS, POWERS, AND DUTIES OF
608-16 ENTITIES. (a) A participating entity may:
608-17 (1) use its means and assets to plan, acquire,
608-18 construct, own, operate, and maintain its interest in an electric
608-19 facility;
608-20 (2) issue bonds and other securities to raise money
608-21 for a purpose described by Subdivision (1) in the same manner and
608-22 to the same extent and subject to the same conditions as would be
608-23 applicable if the entity had sole ownership of the electric
608-24 facility;
608-25 (3) acquire, for the use and benefit of each
608-26 participating entity, land, easements, and property for an electric
608-27 facility by purchase or by exercising the power of eminent domain;
609-1 and
609-2 (4) transfer or otherwise convey the acquired land,
609-3 property, or property interest or otherwise cause the land,
609-4 property, or interest to become vested in other participating
609-5 entities to the extent to which and in the manner in which the
609-6 participating entities agree.
609-7 (b) Each participating entity is a cotenant or co-owner of
609-8 the electric facility and in relation to the entity's undivided
609-9 interest in the facility has each right, privilege, exemption,
609-10 power, duty, and liability the entity would have had if the entity
609-11 had sole ownership. (V.A.C.S. Art. 1435a, Secs. 1 (part), 3
609-12 (part), 4(1), 4(2) (part).)
609-13 Sec. 163.014. USE OF EMINENT DOMAIN. (a) A participating
609-14 entity has the power of eminent domain to be exercised as provided
609-15 by this section.
609-16 (b) The use of eminent domain authority by a participating
609-17 entity is governed by the law relating to an eminent domain
609-18 proceeding involving a municipality in this state.
609-19 (c) A participating entity may acquire a fee title to the
609-20 condemned real property.
609-21 (d) A participating entity may not use eminent domain
609-22 authority to acquire:
609-23 (1) an interest in an electric facility that belongs
609-24 to another entity; or
609-25 (2) an interest in real property to drill, mine, or
609-26 produce from that property oil, gas, geothermal resources,
609-27 geothermal/geopressured resources, or lignite, coal, sulphur,
610-1 uranium, plutonium, or other minerals that belong to another person
610-2 regardless of whether the material is in place or is in the process
610-3 of being drilled, mined, or produced.
610-4 (e) Subsection (d) does not affect the authority of a
610-5 participating entity to acquire full title to real property for a
610-6 plant site and any related surface installation or equipment,
610-7 including a cooling reservoir. (V.A.C.S. Art. 1435a, Sec. 4(2)
610-8 (part).)
610-9 Sec. 163.015. TAXATION. (a) A participating private entity
610-10 shall render for ad valorem taxation its undivided fractional
610-11 interest in a jointly owned electric facility. An ad valorem or
610-12 similar tax shall be imposed separately against the undivided
610-13 interest of the participating private entity.
610-14 (b) A tax or assessment, including an excise tax or sales
610-15 and use tax, attributable to a property or service bought, sold,
610-16 leased, or used to construct, maintain, repair, or operate a
610-17 jointly owned electric facility shall be imposed separately against
610-18 each participating entity in proportion to the entity's respective
610-19 undivided interest in the facility.
610-20 (c) A participating entity is not liable for a tax or
610-21 assessment attributable to another participating entity under
610-22 Subsection (a) or (b).
610-23 (d) A participating entity is entitled to each
610-24 constitutional or statutory ad valorem or other tax exemption
610-25 attributable to the jointly owned electric facility or to a
610-26 property or service bought, sold, leased, or used to construct,
610-27 maintain, repair, or operate the facility to the extent the entity
611-1 would have been exempt from the tax if the entity's undivided
611-2 interest were an entire interest in the facility or in the property
611-3 or service. The entity is entitled to any applicable exemption
611-4 certificate or statement provided by law to claim or prove the
611-5 exemption. (V.A.C.S. Art. 1435a, Sec. 4(3).)
611-6 Sec. 163.016. INSURANCE. A participating entity may:
611-7 (1) contract for insurance, including specialized
611-8 insurance for property and risks relating to the ownership,
611-9 operation, and maintenance of electric facilities;
611-10 (2) contract for insurance for the use and benefit of
611-11 each of the other participating entities as though the insurance
611-12 was for the sole benefit of the contracting entity; and
611-13 (3) cause the rights of the other participating
611-14 entities to be protected under the contract in accordance with each
611-15 entity's undivided interest or entitlement under any applicable
611-16 agreement between the entities. (V.A.C.S. Art. 1435a, Sec. 4(4).)
611-17 (Sections 163.017-163.050 reserved for expansion)
611-18 SUBCHAPTER C. MUNICIPAL POWER AGENCIES
611-19 Sec. 163.051. DEFINITIONS. In this subchapter:
611-20 (1) "Agency" means a municipal power agency created
611-21 under this subchapter.
611-22 (2) "Bond" includes a note, but does not include a
611-23 nonnegotiable purchase money note issued under Section 163.067.
611-24 (3) "Concurrent ordinance" means an ordinance or order
611-25 adopted under this subchapter by two or more public entities that
611-26 relates to the creation or re-creation of a municipal power agency.
611-27 (4) "Obligations" means revenue bonds or notes.
612-1 (V.A.C.S. Art. 1435a, Secs. 4a(c) (part), (j) (part); New.)
612-2 Sec. 163.052. CONSTRUCTION. This subchapter shall be
612-3 liberally construed to carry out its purpose. (V.A.C.S.
612-4 Art. 1435a, Sec. 4a(s) (part).)
612-5 Sec. 163.053. CONFLICTS WITH OTHER LAW. This subchapter
612-6 prevails to the extent of a conflict between this subchapter and
612-7 any other law, including:
612-8 (1) a law regulating the affairs of a municipal
612-9 corporation; or
612-10 (2) a home-rule charter provision. (V.A.C.S.
612-11 Art. 1435a, Sec. 4a(s) (part).)
612-12 Sec. 163.054. CREATION OF AGENCY. (a) Public entities may
612-13 create an agency by concurrent ordinances subject to voter
612-14 approval.
612-15 (b) A public entity may join in the creation of an agency
612-16 under this subchapter only if on May 8, 1975, and at the time the
612-17 concurrent ordinance is adopted, the entity was engaged in the
612-18 authorized generation of electric energy for sale to the public.
612-19 This subsection does not prohibit a public entity from disposing of
612-20 its electric generating capabilities after creation of the agency.
612-21 (c) An agency is a:
612-22 (1) separate municipal corporation;
612-23 (2) political subdivision of this state; and
612-24 (3) political entity and corporate body.
612-25 (d) An agency may not impose a tax but has all the other
612-26 powers relating to municipally owned utilities and provided by law
612-27 to a municipality that owns a public utility. (V.A.C.S.
613-1 Art. 1435a, Secs. 4a(a) (part); (b) (part).)
613-2 Sec. 163.055. RE-CREATION OF AGENCY. (a) The public
613-3 entities that create an agency may by concurrent ordinances
613-4 re-create the agency by adding or deleting, or both, a public
613-5 entity.
613-6 (b) The public entities may not re-create an agency if the
613-7 re-creation will impair an agency obligation.
613-8 (c) Re-creation by adding a public entity is subject to
613-9 voter approval in accordance with Section 163.058. (V.A.C.S.
613-10 Art. 1435a, Sec. 4a(b) (part).)
613-11 Sec. 163.056. NOTICE. (a) The governing body of each
613-12 public entity shall publish notice of its intention to create an
613-13 agency once a week for two consecutive weeks.
613-14 (b) The first publication must appear before the 14th day
613-15 before the date set for passage of the concurrent ordinance.
613-16 (c) The notice must state:
613-17 (1) the date, time, and location at which the
613-18 governing body proposes to enact the concurrent ordinance; and
613-19 (2) that an agency will be created on the date on
613-20 which the concurrent ordinances take effect. (V.A.C.S. Art. 1435a,
613-21 Sec. 4a(a) (part).)
613-22 Sec. 163.057. CONTENTS OF CONCURRENT ORDINANCE. A
613-23 concurrent ordinance creating an agency under Section 163.054 or
613-24 re-creating an agency under Section 163.055 must, as adopted by
613-25 each public entity:
613-26 (1) contain identical provisions;
613-27 (2) define the boundaries of the agency to include the
614-1 territory within the boundaries of each participating public
614-2 entity;
614-3 (3) designate the name of the agency; and
614-4 (4) designate the number, place, initial term, and
614-5 manner of appointment of directors in accordance with Section
614-6 163.059. (V.A.C.S. Art. 1435a, Secs. 4a(c) (part), (d) (part), (e)
614-7 (part).)
614-8 Sec. 163.058. ELECTION. (a) An agency may not be created
614-9 unless the creation is approved by a majority of the qualified
614-10 voters of each public entity creating the agency at an election
614-11 called and held for that purpose.
614-12 (b) An agency may not be re-created by addition of a public
614-13 entity unless the re-creation is approved by a majority of the
614-14 qualified voters of the additional public entity at an election
614-15 called and held for that purpose.
614-16 (c) Notice of an election under this section shall be given
614-17 in accordance with Article 704, Revised Statutes. The election
614-18 shall be called and held in accordance with:
614-19 (1) the Election Code;
614-20 (2) Chapter 1, Title 22, Revised Statutes; and
614-21 (3) this subchapter. (V.A.C.S. Art. 1435a, Secs.
614-22 4a(a) (part), (b) (part).)
614-23 Sec. 163.059. BOARD OF DIRECTORS. (a) The agency shall be
614-24 governed by a board of directors. The board is responsible for the
614-25 management, operation, and control of the property belonging to the
614-26 agency.
614-27 (b) The board must include at least four directors. Each
615-1 director must be appointed by place by the governing bodies of the
615-2 participating public entities. Each participating public entity is
615-3 entitled to appoint at least one director.
615-4 (c) Directors must serve staggered terms. Successor
615-5 directors are appointed in the same manner as the original
615-6 appointees.
615-7 (d) To qualify to serve as a director, a person must be a
615-8 qualified voter and reside in the boundaries of the appointing
615-9 public entity when the person takes the constitutional oath of
615-10 office.
615-11 (e) An employee, officer, or member of the governing body of
615-12 a public entity may serve as a director but may not have a personal
615-13 interest in a contract executed by the agency other than as an
615-14 employee, officer, or member of the governing body of the public
615-15 entity.
615-16 (f) Directors serve without compensation. (V.A.C.S.
615-17 Art. 1435a, Secs. 4a(d) (part), (e) (part), (f) (part).)
615-18 Sec. 163.060. POWERS. (a) An agency may not engage in any
615-19 utility business other than the generation, transmission, and sale
615-20 or exchange of electric energy to:
615-21 (1) a participating public entity; or
615-22 (2) a private entity that owns jointly with the agency
615-23 an electric generating facility in this state.
615-24 (b) The agency may:
615-25 (1) perform any act necessary to the full exercise of
615-26 the agency's powers;
615-27 (2) enter into a contract, lease, or agreement with or
616-1 accept a grant or loan from a:
616-2 (A) department or agency of the United States;
616-3 (B) department, agency, or political subdivision
616-4 of this state; or
616-5 (C) public or private person;
616-6 (3) sell, lease, convey, or otherwise dispose of any
616-7 right, interest, or property the agency considers to be unnecessary
616-8 for the efficient maintenance or operation of its electric
616-9 facilities;
616-10 (4) use the uniform system of accounts prescribed for
616-11 utilities and licenses by the Federal Energy Regulatory Commission;
616-12 and
616-13 (5) adopt rules to govern the operation of the agency
616-14 and its employees, facilities, and service. (V.A.C.S. Art. 1435a,
616-15 Secs. 4a(a) (part), (f) (part), (o) (part), (p).)
616-16 Sec. 163.061. CONSTRUCTION CONTRACTS. (a) Except as
616-17 provided by Subsection (c), an agency may award a contract for
616-18 construction of an improvement that involves the expenditure of
616-19 more than $20,000 only on the basis of competitive bids.
616-20 (b) The agency shall publish notice of intent to receive
616-21 bids once a week for two consecutive weeks in a newspaper of
616-22 general circulation in this state. The first publication must
616-23 appear before the 14th day before the date bids are to be received.
616-24 (c) An entity that has joint ownership of the improvement to
616-25 be constructed or that is an agent of a joint owner shall award a
616-26 contract using the entity's contracting procedures. (V.A.C.S.
616-27 Art. 1435a, Sec. 4a(o) (part).)
617-1 Sec. 163.062. SALE OR EXCHANGE OF ELECTRIC ENERGY. (a) An
617-2 agency may participate through appropriate contracts in power
617-3 pooling and power exchange agreements with other entities through
617-4 direct or indirect system interconnections.
617-5 (b) An entity that participates with an agency under this
617-6 section may:
617-7 (1) purchase electric energy from the agency;
617-8 (2) sell or dispose of electric energy to the agency;
617-9 or
617-10 (3) exchange electric energy with the agency.
617-11 (c) An entity payment for electric energy purchased from the
617-12 agency is an operating expense of the entity's electric system.
617-13 (d) An agency contract to sell or exchange electric energy
617-14 may require the purchaser to pay for the electric energy regardless
617-15 of whether the electric energy is produced or delivered. (V.A.C.S.
617-16 Art. 1435a, Secs. 4a(f) (part), (g) (part), (o) (part).)
617-17 Sec. 163.063. RATES AND CHARGES. (a) An agency may
617-18 establish and maintain rates and charges for electric power and
617-19 energy the agency delivers, transmits, or exchanges. The rates and
617-20 charges must:
617-21 (1) be reasonable and in accordance with prudent
617-22 utility practices;
617-23 (2) be based on periodic cost of service studies and
617-24 subject to modification, unless such a basis for rates and charges
617-25 is waived by the purchaser by contract; and
617-26 (3) be developed to recover the agency's cost of
617-27 producing and transmitting the electric power and energy, as
618-1 applicable, which cost must include the amortization of capital
618-2 investment.
618-3 (b) Notwithstanding Subsection (a), this state reserves its
618-4 power to regulate an agency's rates and charges for electric energy
618-5 supplied by the agency's facilities.
618-6 (c) Until obligations issued under this subchapter have been
618-7 paid and discharged, with all interest on the obligations, interest
618-8 on unpaid interest installments on the obligations, and other
618-9 connected and incurred costs or expenses, this state pledges to and
618-10 agrees with the purchasers and successive holders of the
618-11 obligations that it will not:
618-12 (1) limit or alter the power of an agency to establish
618-13 and collect rates and charges under this section sufficient to pay:
618-14 (A) necessary operational and maintenance
618-15 expenses;
618-16 (B) interest and principal on obligations issued
618-17 by the agency;
618-18 (C) sinking funds and reserve fund payments; and
618-19 (D) other charges necessary to fulfill the terms
618-20 of any agreement; or
618-21 (2) take any action that will impair the rights or
618-22 remedies of the holders of the obligations. (V.A.C.S. Art. 1435a,
618-23 Secs. 4a(g) (part), (h).)
618-24 Sec. 163.064. REVENUE BONDS. (a) The agency may issue
618-25 revenue bonds to accomplish the purposes of the agency.
618-26 (b) The agency may pledge to the payment of the obligations
618-27 the revenues of all or part of its electric facilities, including
619-1 facilities acquired after the obligations are issued. However,
619-2 operating and maintenance expenses, including salaries and labor,
619-3 materials, and repairs of electric facilities necessary to render
619-4 efficient service constitute a first lien on and charge against the
619-5 pledged revenue.
619-6 (c) The agency may set aside from the proceeds from the sale
619-7 of the obligations amounts for payment into the interest and
619-8 sinking fund and reserve fund, and for interest and operating
619-9 expenses during construction and development, as specified in the
619-10 proceedings authorizing the obligations.
619-11 (d) Obligation proceeds may be invested, pending their use,
619-12 in securities, interest-bearing certificates, or time deposits as
619-13 specified in the authorizing proceedings.
619-14 (e) Agency obligations are authorized investments for:
619-15 (1) a bank;
619-16 (2) a savings bank;
619-17 (3) a trust company;
619-18 (4) a savings and loan association; and
619-19 (5) an insurance company.
619-20 (f) The obligations, when accompanied by all appurtenant,
619-21 unmatured coupons and to the extent of the lesser of their face
619-22 value or market value, are eligible to secure the deposit of public
619-23 funds of this state, a political subdivision of this state, and any
619-24 other political corporation of this state. (V.A.C.S. Art. 1435a,
619-25 Secs. 4a(i), (j) (part), (k), (n).)
619-26 Sec. 163.065. REFUNDING BONDS. The agency may issue
619-27 refunding bonds. (V.A.C.S. Art. 1435a, Sec. 4a(m) (part).)
620-1 Sec. 163.066. ISSUANCE, FORM, AND PROVISIONS OF BONDS. (a)
620-2 Agency bonds that are payable from agency revenues or anticipated
620-3 bond proceeds and the records relating to their issuance must be
620-4 submitted to the attorney general for examination before delivery.
620-5 (b) The bonds:
620-6 (1) must mature serially or otherwise not more than 50
620-7 years after the date of issuance;
620-8 (2) may be made redeemable before maturity at the time
620-9 and at the price or prices set by the agency; and
620-10 (3) may be sold at public or private sale under the
620-11 terms and for the price the agency determines to be in the best
620-12 interest of the agency.
620-13 (c) The bonds must be signed by the presiding officer or
620-14 assistant presiding officer of the agency, be attested by the
620-15 secretary, and bear the seal of the agency. The signatures may be
620-16 printed on the bonds if authorized by the agency, and the seal may
620-17 be impressed or printed on the bonds. The agency may adopt or use
620-18 for any purpose the signature of an individual who has been an
620-19 officer of the agency, regardless of whether the individual has
620-20 ceased to be an officer at the time the bonds are delivered to the
620-21 purchaser. (V.A.C.S. Art. 1435a, Secs. 4a(l) (part), (q) (part),
620-22 (r) (part).)
620-23 Sec. 163.067. NONNEGOTIABLE PURCHASE MONEY NOTES. (a) The
620-24 agency may issue nonnegotiable purchase money notes to acquire land
620-25 or fuel resources.
620-26 (b) Nonnegotiable purchase money notes are:
620-27 (1) payable in installments;
621-1 (2) secured by the property acquired with the notes or
621-2 other collateral the agency substitutes; and
621-3 (3) not a security or agency obligation.
621-4 (c) Nonnegotiable purchase money notes may be further
621-5 secured by a promise to issue bonds or bond anticipation notes to
621-6 pay the purchase money notes. (V.A.C.S. Art. 1435a, Sec. 4a(r)
621-7 (part).)
621-8 Sec. 163.068. BOND ANTICIPATION NOTES. (a) The agency may
621-9 issue bond anticipation notes:
621-10 (1) for any purpose for which the agency may issue
621-11 bonds; or
621-12 (2) to refund previously issued bond anticipation
621-13 notes or nonnegotiable purchase money notes.
621-14 (b) Bond anticipation notes are subject to the limitations
621-15 and conditions prescribed by this subchapter for bonds.
621-16 (c) The agency may contract with purchasers of bond
621-17 anticipation notes that the proceeds of one or more series of bonds
621-18 will be used to pay or refund the notes. (V.A.C.S. Art. 1435a,
621-19 Sec. 4a(r) (part).)
621-20 (Sections 163.069-163.100 reserved for expansion)
621-21 SUBCHAPTER D. AGENCY RECEIVING POWER THROUGH
621-22 INTERSTATE SYSTEM
621-23 Sec. 163.101. CREATION. (a) Notwithstanding Section
621-24 163.054, two or more public entities may create a municipal power
621-25 agency governed by Subchapter C if the entities:
621-26 (1) are municipalities;
621-27 (2) are engaged in the distribution and sale of
622-1 electric energy to the public; and
622-2 (3) receive a major portion of their power through or
622-3 from an interstate electric system.
622-4 (b) The entities must comply with the provisions of
622-5 Subchapter C relating to the creation of a municipal power agency,
622-6 including the concurrent ordinance and election provisions.
622-7 (V.A.C.S. Art. 1435a, Sec. 4b (part).)
622-8 Sec. 163.102. POWERS. (a) An agency created under this
622-9 subchapter may:
622-10 (1) generate and transmit electric power and energy
622-11 inside and outside this state;
622-12 (2) sell, purchase, or exchange electric power and
622-13 energy with entities inside or outside this state; and
622-14 (3) construct or acquire new steam electric generating
622-15 facilities, but only if the facilities are owned jointly by the
622-16 agency and one or more private entities.
622-17 (b) This section does not authorize an agency created under
622-18 this subchapter to engage in the distribution and retail sale of
622-19 electric power and energy. (V.A.C.S. Art. 1435a, Sec. 4b (part).)
622-20 (Sections 163.103-163.120 reserved for expansion)
622-21 SUBCHAPTER E. ELECTRIC COOPERATIVE CORPORATIONS
622-22 Sec. 163.121. CREATION. An electric cooperative corporation
622-23 may join one or more public entities to create a joint powers
622-24 agency as if the corporation were also a public entity. (V.A.C.S.
622-25 Art. 1435a, Sec. 4c(a).)
622-26 Sec. 163.122. APPLICATION OF OPEN MEETINGS LAW. A joint
622-27 powers agency created under this subchapter is a governmental body
623-1 subject to Chapter 551, Government Code. (V.A.C.S. Art. 1435a,
623-2 Sec. 4c(c).)
623-3 Sec. 163.123. AUTHORITY OF PUBLIC UTILITY COMMISSION. A
623-4 joint powers agency created under this subchapter is:
623-5 (1) subject to all applicable provisions of Title 2;
623-6 and
623-7 (2) under the jurisdiction of the Public Utility
623-8 Commission of Texas as provided by Title 2. (V.A.C.S. Art. 1435a,
623-9 Sec. 4c(b).)
623-10 Sec. 163.124. POWER TO ISSUE CERTAIN BONDS OR SECURITIES.
623-11 This subchapter does not authorize an electric cooperative
623-12 corporation to issue bonds or other securities that are tax exempt
623-13 under federal law. (V.A.C.S. Art. 1435a, Sec. 4c(d).)
623-14 CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES
623-15 BY PUBLIC ENTITIES
623-16 Sec. 164.001. JOINT OWNERSHIP OF ELECTRIC UTILITY FACILITIES
623-17 AUTHORIZED
623-18 Sec. 164.002. PUBLIC PURPOSE
623-19 Sec. 164.003. APPROVAL OF AGREEMENT BY ATTORNEY
623-20 GENERAL
623-21 Sec. 164.004. INCREASE IN OWNERSHIP SHARES
623-22 Sec. 164.005. CONTRACTUAL OBLIGATIONS AS LIEN ON
623-23 SYSTEM REVENUE
623-24 Sec. 164.006. CONSTRUCTION WITH OTHER LAWS
623-25 CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES
623-26 BY PUBLIC ENTITIES
623-27 Sec. 164.001. JOINT OWNERSHIP OF ELECTRIC UTILITY FACILITIES
624-1 AUTHORIZED. (a) Political subdivisions may join together to
624-2 finance, construct, complete, acquire, or operate electric utility
624-3 facilities so that the facilities or an undivided interest in the
624-4 facilities is jointly owned by the political subdivisions as
624-5 cotenants or co-owners.
624-6 (b) The ownership shares in the facilities are those
624-7 approved by the governing bodies of the political subdivisions, as
624-8 set forth in an agreement authorized by the governing bodies.
624-9 (V.A.C.S. Art. 1435b, Sec. 1 (part).)
624-10 Sec. 164.002. PUBLIC PURPOSE. The exercise by a political
624-11 subdivision of the authority granted by this chapter, including the
624-12 exercise of the power to issue bonds, notes, or other obligations
624-13 to accomplish the purposes of this chapter, and the performance of
624-14 an agreement entered into under this chapter are considered to be
624-15 additional public purposes of the political subdivision, without
624-16 regard to any express or implied limitation on the authority or
624-17 purposes of the political subdivision under any other general or
624-18 special law or charter provision. (V.A.C.S. Art. 1435b, Sec. 3
624-19 (part).)
624-20 Sec. 164.003. APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.
624-21 (a) An agreement between political subdivisions establishing an
624-22 interest in electric utility facilities that is executed under this
624-23 chapter shall be submitted to the attorney general in connection
624-24 with any proceeding to finance the contractual obligation by the
624-25 issuance of bonds.
624-26 (b) An agreement submitted under Subsection (a) is
624-27 incontestable on approval as to legality by the attorney general.
625-1 (V.A.C.S. Art. 1435b, Sec. 1 (part).)
625-2 Sec. 164.004. INCREASE IN OWNERSHIP SHARES. (a) An
625-3 agreement under this chapter may provide for a political
625-4 subdivision to increase its present or future ownership share of
625-5 the electric utility facilities by installment purchase payments
625-6 and for another political subdivision that is a party to the
625-7 agreement to transfer, in consideration of those payments, any
625-8 portion of its present or future ownership share of the facilities
625-9 to the purchasing political subdivision.
625-10 (b) A payment made by a political subdivision to acquire an
625-11 ownership interest is not treated as a maintenance and operating
625-12 expense but is treated as a capital cost as if the political
625-13 subdivision had issued bonds to construct or acquire the ownership
625-14 interest, unless otherwise specified in the agreement. (V.A.C.S.
625-15 Art. 1435b, Sec. 1 (part).)
625-16 Sec. 164.005. CONTRACTUAL OBLIGATIONS AS LIEN ON SYSTEM
625-17 REVENUE. (a) If the electric utility facilities financed,
625-18 acquired, constructed, or completed are a part of a utility system
625-19 of a political subdivision, the obligation to make the contract
625-20 payments to acquire an ownership interest is a lien on the revenue
625-21 of the system on a parity with the outstanding bonds of the system
625-22 to the extent permitted in the ordinance or resolution authorizing
625-23 or the deed of trust or indenture securing the payment of the
625-24 outstanding bonds.
625-25 (b) If the ordinance or resolution authorizing or the deed
625-26 of trust or trust indenture securing the revenue bonds of a utility
625-27 system provides for the subsequent issuance of additional bonds or
626-1 the creation of a contractual obligation described by Section
626-2 164.004 and provides that the payments to be made for the security
626-3 or payment of the subsequent bonds or contractual obligation are to
626-4 be on a parity with the previously issued bonds or bonds then to be
626-5 issued, the political subdivision may, subject to any conditions
626-6 contained in that ordinance, resolution, deed of trust, or trust
626-7 indenture, authorize, issue, and sell additional bonds or incur the
626-8 contractual obligation in a different series payable from the
626-9 entire revenue of the utility system on a parity with the
626-10 previously issued bonds or bonds then to be issued and secured by a
626-11 lien on the revenue of the system on a parity with the lien
626-12 securing the previously issued bonds or bonds then to be issued.
626-13 This subsection applies without regard to whether the previously
626-14 issued bonds:
626-15 (1) were issued before August 29, 1977; or
626-16 (2) are an original issue or a refunding issue.
626-17 (c) A political subdivision may pledge the revenue of a
626-18 utility system to pay contract payments to acquire an ownership
626-19 interest in an electric utility facility under this chapter.
626-20 (d) In this section, "utility system" includes a combined
626-21 utility system. (V.A.C.S. Art. 1435b, Sec. 2.)
626-22 Sec. 164.006. CONSTRUCTION WITH OTHER LAWS. To provide full
626-23 authority for the execution of an agreement under this chapter,
626-24 this chapter applies to a municipality as if this chapter were
626-25 originally contained in Chapter 10, Title 28, Revised Statutes.
626-26 This chapter prevails over any charter provision or general or
626-27 special law. (V.A.C.S. Art. 1435b, Sec. 3 (part).)
627-1 (Chapters 165-180 reserved for expansion)
627-2 SUBTITLE B. PROVISIONS REGULATING DELIVERY OF SERVICES
627-3 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES
627-4 SUBCHAPTER A. POWERS AND DUTIES OF GAS AND ELECTRIC CORPORATIONS
627-5 Sec. 181.001. DEFINITIONS
627-6 Sec. 181.002. CORPORATE POWERS
627-7 Sec. 181.003. AUTHORITY TO BORROW MONEY, ISSUE STOCK, OR MORTGAGE
627-8 PROPERTY
627-9 Sec. 181.004. CONDEMNATION OF PROPERTY
627-10 Sec. 181.005. AUTHORITY TO LAY AND MAINTAIN LINES
627-11 Sec. 181.006. CONSENT REQUIRED IN MUNICIPALITY
627-12 Sec. 181.007. AUTHORITY TO HOLD LAND OR OTHER
627-13 PROPERTY
627-14 Sec. 181.008. AUTHORITY RELATING TO TRANSPORT OR SALE
627-15 Sec. 181.009. DISCRIMINATION PROHIBITED
627-16 (Sections 181.010-181.020 reserved for expansion)
627-17 SUBCHAPTER B. PROVISIONS APPLYING TO GAS UTILITIES
627-18 Sec. 181.021. DEFINITIONS
627-19 Sec. 181.022. AUTHORITY TO LAY AND MAINTAIN GAS FACILITY
627-20 Sec. 181.023. CONSENT REQUIRED IN MUNICIPALITY
627-21 Sec. 181.024. NOTICE TO STATE OR COUNTY
627-22 Sec. 181.025. RELOCATION OF GAS FACILITY TO ALLOW CHANGE TO
627-23 TRAFFIC LANE
627-24 Sec. 181.026. EFFECT OF MUNICIPAL INCORPORATION ON GAS
627-25 FACILITY PREVIOUSLY LAID
627-26 (Sections 181.027-181.040 reserved for expansion)
627-27 SUBCHAPTER C. PROVISIONS APPLYING TO ELECTRIC UTILITIES
628-1 Sec. 181.041. DEFINITIONS
628-2 Sec. 181.042. AUTHORITY TO CONSTRUCT, MAINTAIN, AND OPERATE
628-3 LINES
628-4 Sec. 181.043. CONSENT REQUIRED IN MUNICIPALITY
628-5 Sec. 181.044. NOTICE TO STATE OR COUNTY
628-6 Sec. 181.045. STANDARDS FOR CONSTRUCTION, OPERATION, AND
628-7 MAINTENANCE OF LINES
628-8 Sec. 181.046. RELOCATION OF LINE TO ALLOW ROAD OR DITCH
628-9 IMPROVEMENT
628-10 Sec. 181.047. EFFECT OF MUNICIPAL INCORPORATION ON LINE
628-11 PREVIOUSLY CONSTRUCTED
628-12 (Sections 181.048-181.060 reserved for expansion)
628-13 SUBCHAPTER D. PROVISIONS APPLYING TO TELEGRAPH COMPANIES
628-14 Sec. 181.061. DEFINITION
628-15 Sec. 181.062. TELEGRAPH CONNECTIONS
628-16 Sec. 181.063. EXCEPTIONS
628-17 Sec. 181.064. HEARING AND DETERMINATION
628-18 Sec. 181.065. PENALTY
628-19 Sec. 181.066. APPEAL
628-20 (Sections 181.067-181.080 reserved for expansion)
628-21 SUBCHAPTER E. PROVISIONS APPLYING TO TELEPHONE AND
628-22 TELEGRAPH CORPORATIONS
628-23 Sec. 181.081. DEFINITIONS
628-24 Sec. 181.082. AUTHORITY TO INSTALL FACILITY IN
628-25 RELATION TO PUBLIC PROPERTY
628-26 Sec. 181.083. AUTHORITY TO CONSTRUCT LINE ON
628-27 PRIVATE PROPERTY
629-1 Sec. 181.084. APPROPRIATION OR CONDEMNATION OF LAND
629-2 Sec. 181.085. PROHIBITION ON LAND CONTRACT EXCLUDING ANOTHER
629-3 TELEGRAPH UTILITY
629-4 Sec. 181.086. LINES IN OR OUTSIDE STATE
629-5 Sec. 181.087. USE OF ANOTHER'S TELEGRAPH LINE
629-6 Sec. 181.088. CONSOLIDATION OF UTILITIES
629-7 Sec. 181.089. MUNICIPAL REGULATION
629-8 (Sections 181.090-181.100 reserved for expansion)
629-9 SUBCHAPTER F. PROVISIONS APPLYING TO COMMUNITY ANTENNA AND
629-10 CABLE TELEVISION UTILITIES
629-11 Sec. 181.101. DEFINITIONS
629-12 Sec. 181.102. AUTHORITY TO INSTALL AND MAINTAIN EQUIPMENT
629-13 Sec. 181.103. NOTICE TO STATE OR COUNTY
629-14 Sec. 181.104. RELOCATION OF EQUIPMENT TO ALLOW CHANGE TO
629-15 TRAFFIC LANE
629-16 (Sections 181.105-181.900 reserved for expansion)
629-17 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
629-18 Sec. 181.901. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
629-19 PROTECT UTILITY
629-20 Sec. 181.902. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
629-21 PREVENT USE OR WASTE OF UTILITY
629-22 COMMODITY OR SERVICE
629-23 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES
629-24 SUBCHAPTER A. POWERS AND DUTIES OF GAS AND ELECTRIC CORPORATIONS
629-25 Sec. 181.001. DEFINITIONS. In this chapter:
629-26 (1) "Corporation" includes partnerships and other
629-27 combinations composed exclusively of corporations or in which a
630-1 corporation is a general partner.
630-2 (2) "Electric corporation" means an electric current
630-3 and power corporation. (V.A.C.S. Art. 1435 (part); (New).)
630-4 Sec. 181.002. CORPORATE POWERS. A gas or electric
630-5 corporation has the powers and rights of a corporation organized
630-6 for profit in this state whenever those powers and duties may be
630-7 applicable. (V.A.C.S. Art. 1437 (part).)
630-8 Sec. 181.003. AUTHORITY TO BORROW MONEY, ISSUE STOCK, OR
630-9 MORTGAGE PROPERTY. A gas or electric corporation has the right to:
630-10 (1) borrow money;
630-11 (2) issue stock, including preferred stock; or
630-12 (3) mortgage a franchise or other property of the
630-13 corporation to secure a debt contracted for any purpose of the
630-14 corporation. (V.A.C.S. Art. 1437 (part).)
630-15 Sec. 181.004. CONDEMNATION OF PROPERTY. A gas or electric
630-16 corporation has the right and power to enter on, condemn, and
630-17 appropriate the land, right-of-way, easement, or other property of
630-18 any person or corporation. (V.A.C.S. Art. 1436 (part).)
630-19 Sec. 181.005. AUTHORITY TO LAY AND MAINTAIN LINES. A gas
630-20 corporation has the right to lay and maintain lines over and across
630-21 a public road, a railroad, railroad right-of-way, an interurban
630-22 railroad, a street railroad, a canal or stream, or a municipal
630-23 street or alley. (V.A.C.S. Art. 1436 (part).)
630-24 Sec. 181.006. CONSENT REQUIRED IN MUNICIPALITY. A gas
630-25 corporation may exercise authority under Section 181.005 in
630-26 relation to a municipal street or alley with the consent of and
630-27 subject to the direction of the governing body of the municipality.
631-1 (V.A.C.S. Art. 1436 (part).)
631-2 Sec. 181.007. AUTHORITY TO HOLD LAND OR OTHER PROPERTY. A
631-3 gas or electric corporation has the power to own, hold, or use
631-4 land, a right-of-way, an easement, a franchise, or a building or
631-5 other structure as necessary for the purpose of the corporation.
631-6 (V.A.C.S. Art. 1435 (part).)
631-7 Sec. 181.008. AUTHORITY RELATING TO TRANSPORT OR SALE. (a)
631-8 A gas or electric corporation has the power to generate, make,
631-9 manufacture, transport, and sell gas, electric current, and power
631-10 to an individual, the public, or a municipality for any purpose.
631-11 (b) A gas or electric corporation may:
631-12 (1) impose reasonable charges for an action taken
631-13 under Subsection (a); and
631-14 (2) construct, maintain, and operate power plants and
631-15 substations and any machinery, apparatus, pipe, pole, wire, device,
631-16 or arrangements as necessary to operate its lines in this state.
631-17 (V.A.C.S. Art. 1435 (part).)
631-18 Sec. 181.009. DISCRIMINATION PROHIBITED. A gas or electric
631-19 corporation may not discriminate against a person, corporation,
631-20 firm, association, or location in:
631-21 (1) charging for gas, electric current, or power; or
631-22 (2) providing service under similar circumstances.
631-23 (V.A.C.S. Arts. 1435 (part), 1438.)
631-24 (Sections 181.010-181.020 reserved for expansion)
631-25 SUBCHAPTER B. PROVISIONS APPLYING TO GAS UTILITIES
631-26 Sec. 181.021. DEFINITIONS. In this subchapter:
631-27 (1) "Gas facility" means a pipe, main, conductor, or
632-1 other facility or fixture used to carry gas.
632-2 (2) "Gas utility" means a person, firm, corporation,
632-3 or municipality engaged in the business of transporting or
632-4 distributing gas for public consumption. (V.A.C.S. Art. 1436b,
632-5 Secs. 1 (part), 2 (part).)
632-6 Sec. 181.022. AUTHORITY TO LAY AND MAINTAIN GAS FACILITY. A
632-7 gas utility has the right to lay and maintain a gas facility
632-8 through, under, along, across, or over a public highway, a public
632-9 road, a public street or alley, or public water. (V.A.C.S. Art.
632-10 1436b, Sec. 1 (part).)
632-11 Sec. 181.023. CONSENT REQUIRED IN MUNICIPALITY. A gas
632-12 utility may exercise authority under Section 181.022 in a
632-13 municipality with the consent of and subject to the direction of
632-14 the governing body of the municipality. (V.A.C.S. Art. 1436b, Sec.
632-15 1 (part).)
632-16 Sec. 181.024. NOTICE TO STATE OR COUNTY. (a) A gas utility
632-17 proposing under this subchapter to locate a gas facility in the
632-18 right-of-way of a state highway or a county road not in a
632-19 municipality shall give notice of the proposal to:
632-20 (1) the Texas Transportation Commission if the
632-21 proposal relates to a state highway; or
632-22 (2) the commissioners court of the county if the
632-23 proposal relates to a county road.
632-24 (b) On receipt of the notice, the Texas Transportation
632-25 Commission or the commissioners court may designate the location in
632-26 the right-of-way where the gas utility may place the gas facility.
632-27 (V.A.C.S. Art. 1436b, Sec. 1 (part).)
633-1 Sec. 181.025. RELOCATION OF GAS FACILITY TO ALLOW CHANGE TO
633-2 TRAFFIC LANE. (a) The authority of the Texas Transportation
633-3 Commission under this section is limited to a gas facility on a
633-4 state highway not in a municipality. The authority of the
633-5 commissioners court under this section is limited to a gas facility
633-6 on a county road not in a municipality.
633-7 (b) The Texas Transportation Commission or the commissioners
633-8 court of a county may require a gas utility to relocate the
633-9 utility's gas facility, at the utility's own expense, to allow the
633-10 widening or other changing of a traffic lane.
633-11 (c) To impose a requirement under this section, the Texas
633-12 Transportation Commission or the commissioners court, as
633-13 appropriate, must give to the gas utility 30 days' written notice
633-14 of the requirement. The notice must identify the gas facility to
633-15 be relocated and indicate the location on the new right-of-way
633-16 where the gas utility may place the facility.
633-17 (d) The gas utility shall replace the grade and surface of
633-18 the highway or road at the utility's own expense. (V.A.C.S.
633-19 Art. 1436b, Sec. 1 (part).)
633-20 Sec. 181.026. EFFECT OF MUNICIPAL INCORPORATION ON GAS
633-21 FACILITY PREVIOUSLY LAID. A gas utility having a gas facility
633-22 located in an area that becomes incorporated after the facility is
633-23 in place may continue to exercise in that area the authority
633-24 granted by this subchapter until the 10th anniversary of the date
633-25 of the incorporation without the consent of but subject to the
633-26 direction of the governing body of the municipality. (V.A.C.S.
633-27 Art. 1436b, Sec. 2.)
634-1 (Sections 181.027-181.040 reserved for expansion)
634-2 SUBCHAPTER C. PROVISIONS APPLYING TO ELECTRIC UTILITIES
634-3 Sec. 181.041. DEFINITIONS. In this subchapter:
634-4 (1) "Electric utility" means:
634-5 (A) an electric cooperative organized under
634-6 Chapter 161;
634-7 (B) a corporation or river authority, if the
634-8 river authority is created by a statute of this state:
634-9 (i) that generates, transmits, or
634-10 distributes electric energy in this state; and
634-11 (ii) whose operations are subject to the
634-12 judicial and legislative processes of this state; or
634-13 (C) a municipal electric utility.
634-14 (2) "Municipal electric utility" means a municipality
634-15 in this state that owns and operates an electric generating plant
634-16 or that operates electric transmission lines or an electric
634-17 distribution system. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a
634-18 (part).)
634-19 Sec. 181.042. AUTHORITY TO CONSTRUCT, MAINTAIN, AND OPERATE
634-20 LINES. An electric utility has the right to construct, maintain,
634-21 and operate lines over, under, across, on, or along a state
634-22 highway, a county road, a municipal street or alley, or other
634-23 public property in a municipality. (V.A.C.S. Art. 1436a, Secs. 1
634-24 (part), 1a (part).)
634-25 Sec. 181.043. CONSENT REQUIRED IN MUNICIPALITY. (a) An
634-26 electric utility may exercise authority under Section 181.042 in a
634-27 municipality with the consent of and subject to the direction of
635-1 the governing body of the municipality.
635-2 (b) Subsection (a) does not apply to a municipal electric
635-3 utility exercising authority under Section 181.042 in its municipal
635-4 territory. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a (part).)
635-5 Sec. 181.044. NOTICE TO STATE OR COUNTY. (a) An electric
635-6 utility proposing under this subchapter to construct a line along
635-7 the right-of-way of a state highway or a county road not in a
635-8 municipality shall give notice of the proposal to:
635-9 (1) the Texas Transportation Commission if the
635-10 proposal relates to a state highway; or
635-11 (2) the commissioners court of the county if the
635-12 proposal relates to a county road.
635-13 (b) On receipt of the notice, the Texas Transportation
635-14 Commission or the commissioners court may designate the location
635-15 along the right-of-way where the electric utility may construct the
635-16 line. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a (part).)
635-17 Sec. 181.045. STANDARDS FOR CONSTRUCTION, OPERATION, AND
635-18 MAINTENANCE OF LINES. (a) A municipal electric utility shall
635-19 construct, operate, and maintain its lines for the transmission and
635-20 distribution of electric energy along highways and at other places
635-21 in accordance with the national electrical safety code. With
635-22 regard to clearances, an electric utility that is not a municipal
635-23 electric utility shall construct, operate, and maintain its lines
635-24 for the transmission and distribution of electric energy along
635-25 highways and at other places in accordance with the national
635-26 electrical safety code.
635-27 (b) Regardless of Subsection (a), an electric utility shall:
636-1 (1) use single pole construction for a line along a
636-2 highway or county road;
636-3 (2) construct a transmission line that crosses a
636-4 highway or road so that the line is at least 22 feet above the
636-5 surface of the traffic lane; and
636-6 (3) construct a line that is above a railroad track or
636-7 railroad siding so that the line is at least 22 feet above the
636-8 surface of the track or siding.
636-9 (c) Subsection (a) does not apply to a line in a
636-10 municipality to the extent an ordinance or regulation applying in
636-11 the municipality provides differently than the national electrical
636-12 safety code.
636-13 (d) In this section, "national electrical safety code" means
636-14 the National Electrical Safety Code, as published in March 1948 by
636-15 the National Bureau of Standards, Handbook 30, as revised by
636-16 Handbook 81, published by the National Bureau of Standards in
636-17 November 1961. (V.A.C.S. Art. 1436a, Secs. 1 (part), 1a (part).)
636-18 Sec. 181.046. RELOCATION OF LINE TO ALLOW ROAD OR DITCH
636-19 IMPROVEMENT. (a) The authority of the Texas Transportation
636-20 Commission under this section is limited to a line on a state
636-21 highway not in a municipality. The authority of the commissioners
636-22 court under this section is limited to a line on a county road not
636-23 in a municipality.
636-24 (b) The Texas Transportation Commission or the commissioners
636-25 court of a county may require an electric utility to relocate a
636-26 line of the utility, at the utility's own expense, to allow the:
636-27 (1) widening of a right-of-way;
637-1 (2) changing of a traffic lane;
637-2 (3) improving of a road bed; or
637-3 (4) improving of a drainage ditch located on a
637-4 right-of-way.
637-5 (c) To impose a requirement under this section, the Texas
637-6 Transportation Commission or the commissioners court, as
637-7 appropriate, must give to the electric utility 30 days' written
637-8 notice of the requirement. The notice must identify the line to be
637-9 relocated and indicate the location on the new right-of-way where
637-10 the electric utility may place the line. (V.A.C.S. Art. 1436a,
637-11 Secs. 1 (part), 1a (part).)
637-12 Sec. 181.047. EFFECT OF MUNICIPAL INCORPORATION ON LINE
637-13 PREVIOUSLY CONSTRUCTED. (a) An electric utility that owns a line
637-14 on a state highway or county road in a city or town that, at the
637-15 time of the construction of the line, is unincorporated but that
637-16 later incorporates as a municipality may continue to exercise in
637-17 the municipality the authority granted by Section 181.042 until the
637-18 10th anniversary of the date of the incorporation.
637-19 (b) After that period, to continue to exercise the authority
637-20 in the municipality the electric utility must have the consent of
637-21 the governing body of the municipality.
637-22 (c) The governing body of the municipality may require the
637-23 electric utility to relocate a pole or line, at the utility's own
637-24 expense, to allow the widening or straightening of a street. To
637-25 impose a requirement under this subsection, the governing body of
637-26 the municipality must give to the electric utility 30 days' notice.
637-27 The notice must indicate the new location for the pole or line
638-1 along the right-of-way of the street.
638-2 (d) This section does not prohibit a municipality from
638-3 imposing a tax or special charge for the use of a street as
638-4 authorized by Subchapter B, Chapter 182, Tax Code. (V.A.C.S.
638-5 Art. 1436a, Secs. 1 (part), 1a (part).)
638-6 (Sections 181.048-181.060 reserved for expansion)
638-7 SUBCHAPTER D. PROVISIONS APPLYING TO TELEGRAPH COMPANIES
638-8 Sec. 181.061. DEFINITION. In this subchapter, "telegraph
638-9 company" includes a person, firm, corporation, or association
638-10 engaged in the business of accepting and transmitting messages to
638-11 and from different locations in this state through use of a
638-12 telegraph. (V.A.C.S. Art. 1428 (part).)
638-13 Sec. 181.062. TELEGRAPH CONNECTIONS. A telegraph company
638-14 engaged in business at the same location or in the same
638-15 municipality as another telegraph company shall provide:
638-16 (1) means through which a message may be transferred
638-17 to the lines of the other telegraph company at common locations and
638-18 transmitted to the message's final destination; and
638-19 (2) facilities to assure the transfer of a message in
638-20 compliance with this section. (V.A.C.S. Art. 1428 (part).)
638-21 Sec. 181.063. EXCEPTIONS. (a) A telegraph company is not
638-22 required to transfer a message to another line if:
638-23 (1) the message originated on the company's line; and
638-24 (2) the company can deliver the message directly to
638-25 its intended recipient on the company's lines.
638-26 (b) A telegraph company is not required to receive a message
638-27 from another's line and transmit the message to its final
639-1 destination if the message originated at a location on the
639-2 company's lines. (V.A.C.S. Art. 1429.)
639-3 Sec. 181.064. HEARING AND DETERMINATION. (a) The governing
639-4 body of a municipality or, for an unincorporated area, the
639-5 commissioners court of the county, shall on its own motion or on
639-6 application of at least 100 residents:
639-7 (1) hear evidence as the governing body or
639-8 commissioners court considers necessary; and
639-9 (2) determine whether a connection between different
639-10 lines or other arrangements for transfer of messages is:
639-11 (A) necessary for public convenience; and
639-12 (B) just to the telegraph companies.
639-13 (b) After conducting a hearing and making the determinations
639-14 required by Subsection (a), the governing body or commissioners
639-15 court shall issue an order that:
639-16 (1) includes the findings of the governing body or
639-17 commissioners court;
639-18 (2) specifies the conditions under which the
639-19 arrangements for transfer of messages will be made; and
639-20 (3) specifies the proportion of expense to be paid by
639-21 the owner or operator of each line. (V.A.C.S. Art. 1430.)
639-22 Sec. 181.065. PENALTY. (a) A telegraph company shall
639-23 comply with an order of a municipality's governing body or a
639-24 commissioners court requiring the company to arrange for transfer
639-25 of messages.
639-26 (b) A telegraph company that fails to comply with an order
639-27 is subject to a penalty of $10 for each day of noncompliance,
640-1 payable to the state. The county or district attorney may bring
640-2 suit to recover the penalty.
640-3 (c) A penalty may not be imposed against a telegraph company
640-4 for noncompliance with an order if:
640-5 (1) the company is prevented from making a connection
640-6 through the fault or omission of another company; and
640-7 (2) the fault or omission causes the company's failure
640-8 to connect. (V.A.C.S. Art. 1431.)
640-9 Sec. 181.066. APPEAL. (a) A telegraph company ordered to
640-10 transfer messages under this subchapter has the right to appeal to
640-11 the court having jurisdiction over the matter.
640-12 (b) If the court finds that the telegraph company had
640-13 reasonable grounds for bringing the appeal, the court shall suspend
640-14 any penalty imposed under this subchapter until the appeal is
640-15 finally determined. (V.A.C.S. Art. 1432.)
640-16 (Sections 181.067-181.080 reserved for expansion)
640-17 SUBCHAPTER E. PROVISIONS APPLYING TO TELEPHONE AND
640-18 TELEGRAPH CORPORATIONS
640-19 Sec. 181.081. DEFINITIONS. In this subchapter:
640-20 (1) "Facility" means a pole, pier, abutment, wire, or
640-21 other fixture related to a telephone or magnetic telegraph line.
640-22 (2) "Telegraph corporation" means a corporation
640-23 created to construct and maintain magnetic telegraph lines.
640-24 (3) "Telephone corporation" means a corporation
640-25 created to construct and maintain telephone lines. (V.A.C.S. Arts.
640-26 1416 (part), 1417 (part), 1422 (part).)
640-27 Sec. 181.082. AUTHORITY TO INSTALL FACILITY IN RELATION TO
641-1 PUBLIC PROPERTY. A telephone or telegraph corporation may install
641-2 a facility of the corporation along, on, or across a public road, a
641-3 public street, or public water in a manner that does not
641-4 inconvenience the public in the use of the road, street, or water.
641-5 (V.A.C.S. Art. 1416 (part).)
641-6 Sec. 181.083. AUTHORITY TO CONSTRUCT LINE ON PRIVATE
641-7 PROPERTY. A telephone or telegraph corporation may enter land in
641-8 which a private person or a corporation owns a fee or lesser estate
641-9 to:
641-10 (1) make a preliminary survey or examination to
641-11 prepare for the construction of a telephone or telegraph line;
641-12 (2) change the location of a part of a telephone or
641-13 telegraph line as necessary; or
641-14 (3) construct or repair a telephone or telegraph line.
641-15 (V.A.C.S. Art. 1417 (part).)
641-16 Sec. 181.084. APPROPRIATION OR CONDEMNATION OF LAND. A
641-17 telephone or telegraph corporation has the right to:
641-18 (1) appropriate as much land owned by a private person
641-19 or a corporation as is necessary to construct a facility; or
641-20 (2) condemn land to acquire a right-of-way or other
641-21 interest in the land for the use of the telephone or telegraph
641-22 corporation. (V.A.C.S. Art. 1417 (part).)
641-23 Sec. 181.085. PROHIBITION ON LAND CONTRACT EXCLUDING ANOTHER
641-24 TELEGRAPH UTILITY. A telegraph corporation may not contract with
641-25 an owner of land for the right to construct and maintain a
641-26 telegraph line over the land to the exclusion of the line of
641-27 another telegraph corporation. (V.A.C.S. Art. 1418.)
642-1 Sec. 181.086. LINES IN OR OUTSIDE STATE. A telegraph
642-2 corporation may construct, own, use, or maintain a telegraph line
642-3 in or outside this state. (V.A.C.S. Art. 1419.)
642-4 Sec. 181.087. USE OF ANOTHER'S TELEGRAPH LINE. (a) A
642-5 telegraph corporation may:
642-6 (1) lease the telegraph line of another telegraph
642-7 corporation;
642-8 (2) as the result of a lease or purchase, attach to
642-9 its telegraph line the telegraph line of another telegraph
642-10 corporation; or
642-11 (3) join with any other corporation or association
642-12 to construct, lease, own, use, or maintain a telegraph
642-13 line.
642-14 (b) An action under Subsection (a)(3) must be taken in
642-15 accordance with an agreement made by the directors or managers of
642-16 the telegraph corporations. (V.A.C.S. Art. 1420.)
642-17 Sec. 181.088. CONSOLIDATION OF UTILITIES. (a) A telephone
642-18 or telegraph corporation organized under the law of this state may
642-19 consolidate or otherwise unite with one or more other companies
642-20 organized under the law of a state or the United States if the
642-21 union or consolidation:
642-22 (1) is approved, at a regular meeting of the
642-23 corporation's stockholders, by a vote of persons holding a majority
642-24 of the shares of stock of the corporation; and
642-25 (2) is done with the consent of each other company.
642-26 (b) The company resulting from the consolidation or other
642-27 union may hold, use, and enjoy the rights and privileges given by
643-1 the law of this state to, and has the same liabilities of, a
643-2 company separately organized under the law of this state relating
643-3 to corporations. (V.A.C.S. Art. 1421.)
643-4 Sec. 181.089. MUNICIPAL REGULATION. (a) The appropriate
643-5 authorities of a municipality through which a line of a telephone
643-6 or telegraph corporation is to pass may adopt, by ordinance or
643-7 another method, regulations governing the corporation that specify
643-8 the:
643-9 (1) location of the facilities of the corporation;
643-10 (2) kind of posts that must be used by the
643-11 corporation; or
643-12 (3) height at which the wires of the corporation must
643-13 be placed.
643-14 (b) After the construction of the telephone or telegraph
643-15 line, the appropriate authorities of the municipality, after giving
643-16 the corporation or its agents an opportunity to be heard, may
643-17 direct any change in:
643-18 (1) the construction or location of the facilities; or
643-19 (2) the height at which the corporation must locate
643-20 the wires. (V.A.C.S. Art. 1422 (part).)
643-21 (Sections 181.090-181.100 reserved for expansion)
643-22 SUBCHAPTER F. PROVISIONS APPLYING TO COMMUNITY ANTENNA AND
643-23 CABLE TELEVISION UTILITIES
643-24 Sec. 181.101. DEFINITIONS. In this subchapter:
643-25 (1) "Equipment" means a line, wire, cable, pipe,
643-26 conduit, conductor, pole, or other facility for the transmission of
643-27 community antenna or cable television service.
644-1 (2) "Person" means an individual, firm, or
644-2 corporation. (V.A.C.S. Art. 9021, Sec. 1.)
644-3 Sec. 181.102. AUTHORITY TO INSTALL AND MAINTAIN EQUIPMENT.
644-4 (a) In an unincorporated area, a person in the business of
644-5 providing community antenna or cable television service to the
644-6 public may install and maintain equipment through, under, along,
644-7 across, or over a utility easement, a public road, an alley, or a
644-8 body of public water in accordance with this subchapter.
644-9 (b) The installation and maintenance of the equipment must
644-10 be done in a way that does not unduly inconvenience the public
644-11 using the affected property. (V.A.C.S. Art. 9021, Secs. 2, 3.)
644-12 Sec. 181.103. NOTICE TO STATE OR COUNTY. (a) A person
644-13 proposing to install equipment under Section 181.102 in the
644-14 right-of-way of a state highway or a county road shall give notice
644-15 of the proposal to:
644-16 (1) the Texas Department of Transportation if the
644-17 proposal relates to a state highway; or
644-18 (2) the commissioners court of the county if the
644-19 proposal relates to a county road.
644-20 (b) On receipt of the notice, the department or
644-21 commissioners court may designate the location in the right-of-way
644-22 where the person may install the equipment, if the equipment is not
644-23 to be installed on an existing facility. (V.A.C.S. Art. 9021,
644-24 Secs. 4(a), (b).)
644-25 Sec. 181.104. RELOCATION OF EQUIPMENT TO ALLOW CHANGE TO
644-26 TRAFFIC LANE. (a) The authority of the Texas Department of
644-27 Transportation under this section is limited to equipment installed
645-1 in connection with a state highway. The authority of the
645-2 commissioners court under this section is limited to equipment
645-3 installed in connection with a county road.
645-4 (b) The Texas Department of Transportation or the
645-5 commissioners court of a county may require a person who has
645-6 installed equipment in the right-of-way of a state highway or
645-7 county road to relocate the person's equipment to allow the
645-8 widening or other changing of a traffic lane.
645-9 (c) To impose a requirement under this section, the Texas
645-10 Department of Transportation or the commissioners court, as
645-11 appropriate, must give to the person written notice of the
645-12 requirement not later than the 45th day before the date the
645-13 relocation is to be made. The notice must identify the equipment
645-14 to be relocated and indicate the location in the right-of-way where
645-15 the person may reinstall the equipment.
645-16 (d) The person shall pay the cost of repairing a state
645-17 highway or county road damaged by the relocation. (V.A.C.S.
645-18 Art. 9021, Sec. 4(c).)
645-19 (Sections 181.105-181.900 reserved for expansion)
645-20 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
645-21 Sec. 181.901. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
645-22 PROTECT UTILITY. (a) The governing body of a general-law
645-23 municipality may adopt an ordinance that applies to a utility using
645-24 the streets and public grounds of the municipality and that
645-25 protects the utility:
645-26 (1) in the free enjoyment of the utility's rights and
645-27 privileges; and
646-1 (2) from interference with the utility's property and
646-2 franchises.
646-3 (b) In this section, "utility" means a person, company, or
646-4 corporation engaged in furnishing water, gas, telephone, light,
646-5 power, or sewage service to the public. (V.A.C.S. Art. 1120
646-6 (part); New.)
646-7 Sec. 181.902. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO
646-8 PREVENT USE OR WASTE OF UTILITY COMMODITY OR SERVICE. (a) The
646-9 governing body of a general-law municipality may adopt an ordinance
646-10 that prevents the free or unauthorized use or the waste of a
646-11 commodity or service furnished by a utility that uses the streets
646-12 and public grounds of the municipality.
646-13 (b) In this section, "utility" has the meaning assigned to
646-14 the term by Section 181.901. (V.A.C.S. Art. 1120 (part); New.)
646-15 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS
646-16 SUBCHAPTER A. PAYMENT DATE OF UTILITY BILL
646-17 FOR ELDERLY INDIVIDUAL
646-18 Sec. 182.001. DEFINITIONS
646-19 Sec. 182.002. DELAY OF BILL PAYMENT DATE FOR ELDERLY
646-20 INDIVIDUAL
646-21 Sec. 182.003. REQUEST FOR DELAY
646-22 Sec. 182.004. PROOF OF AGE
646-23 Sec. 182.005. CERTAIN UTILITIES NOT AFFECTED
646-24 (Sections 182.006-182.050 reserved for expansion)
646-25 SUBCHAPTER B. CONFIDENTIALITY OF CUSTOMER INFORMATION
646-26 Sec. 182.051. DEFINITIONS
646-27 Sec. 182.052. CONFIDENTIALITY OF PERSONAL INFORMATION
647-1 Sec. 182.053. FEE
647-2 Sec. 182.054. EXCEPTIONS
647-3 Sec. 182.055. NO CIVIL LIABILITY FROM VIOLATION
647-4 (Sections 182.056-182.100 reserved for expansion)
647-5 SUBCHAPTER C. TESTING OF METERS
647-6 Sec. 182.101. DEFINITIONS
647-7 Sec. 182.102. TESTING OF METER
647-8 Sec. 182.103. UTILITY REPRESENTATIVE; NOTICE
647-9 Sec. 182.104. OFFENSE
647-10 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS
647-11 SUBCHAPTER A. PAYMENT DATE OF UTILITY BILL
647-12 FOR ELDERLY INDIVIDUAL
647-13 Sec. 182.001. DEFINITIONS. In this subchapter:
647-14 (1) "Elderly individual" means an individual who is 60
647-15 years of age or older.
647-16 (2) "Utility" means an electric, gas, water, or
647-17 telephone utility operated by a public or private entity.
647-18 (V.A.C.S. Art. 1446c-2, Sec. 1.)
647-19 Sec. 182.002. DELAY OF BILL PAYMENT DATE FOR ELDERLY
647-20 INDIVIDUAL. (a) On request by an elderly individual, a utility
647-21 shall delay without penalty the payment date of a bill for
647-22 providing utility service to that individual until the 25th day
647-23 after the date the bill is issued.
647-24 (b) This subchapter applies only to an elderly individual
647-25 who:
647-26 (1) is a residential customer; and
647-27 (2) occupies the entire premises for which a delay is
648-1 requested. (V.A.C.S. Art. 1446c-2, Secs. 2(a), (d).)
648-2 Sec. 182.003. REQUEST FOR DELAY. An elderly individual may
648-3 request that the utility implement the delay under Section 182.002
648-4 for:
648-5 (1) the most recent utility bill; or
648-6 (2) the most recent utility bill and each subsequent
648-7 utility bill. (V.A.C.S. Art. 1446c-2, Sec. 2(b).)
648-8 Sec. 182.004. PROOF OF AGE. A utility may require an
648-9 individual requesting a delay under this subchapter to present
648-10 reasonable proof that the individual is 60 years of age or older.
648-11 (V.A.C.S. Art. 1446c-2, Sec. 2(c).)
648-12 Sec. 182.005. CERTAIN UTILITIES NOT AFFECTED. This
648-13 subchapter does not apply to a utility that:
648-14 (1) does not assess a late payment charge on a
648-15 residential customer;
648-16 (2) does not suspend service before the 26th day after
648-17 the date of the bill for which collection action is taken; and
648-18 (3) is regulated under Title 2. (V.A.C.S.
648-19 Art. 1446c-2, Sec. 2(e).)
648-20 (Sections 182.006-182.050 reserved for expansion)
648-21 SUBCHAPTER B. CONFIDENTIALITY OF CUSTOMER INFORMATION
648-22 Sec. 182.051. DEFINITIONS. In this subchapter:
648-23 (1) "Consumer reporting agency" means a person who,
648-24 for a monetary fee or payment of dues, or on a cooperative
648-25 nonprofit basis, regularly engages in the practice of assembling or
648-26 evaluating consumer credit information or other information
648-27 relating to consumers in order to furnish a consumer report to a
649-1 third party.
649-2 (2) "Governmental body" has the meaning assigned by
649-3 Section 552.003, Government Code.
649-4 (3) "Government-operated utility" means a governmental
649-5 body or an entity governed by a governmental body that, for
649-6 compensation, provides water, wastewater, sewer, gas, garbage,
649-7 electricity, or drainage service.
649-8 (4) "Personal information" means an individual's
649-9 address, telephone number, or social security number. (V.A.C.S.
649-10 Art. 1446h, Sec. 1.)
649-11 Sec. 182.052. CONFIDENTIALITY OF PERSONAL INFORMATION. (a)
649-12 Except as provided by Section 182.054, a government-operated
649-13 utility may not disclose personal information in a customer's
649-14 account record if the customer requests that the
649-15 government-operated utility keep the information confidential.
649-16 (b) A customer may request confidentiality by delivering to
649-17 the government-operated utility an appropriately marked form
649-18 provided under Subsection (c)(3) or any other written request for
649-19 confidentiality.
649-20 (c) A government-operated utility shall include with a bill
649-21 sent to each customer:
649-22 (1) a notice of the customer's right to request
649-23 confidentiality under this subchapter;
649-24 (2) a statement of the amount of any fee applicable to
649-25 the request; and
649-26 (3) a form by which the customer may request
649-27 confidentiality by marking an appropriate box on the form and
650-1 returning it to the government-operated utility.
650-2 (d) A customer may rescind a request for confidentiality by
650-3 providing the government-operated utility written permission to
650-4 disclose personal information. (V.A.C.S. Art. 1446h, Secs. 2, 4.)
650-5 Sec. 182.053. FEE. A government-operated utility may charge
650-6 each customer who requests confidentiality under this subchapter a
650-7 fee not to exceed the administrative cost of complying with the
650-8 request of confidentiality. (V.A.C.S. Art. 1446h, Sec. 3.)
650-9 Sec. 182.054. EXCEPTIONS. This subchapter does not prohibit
650-10 a government-operated utility from disclosing personal information
650-11 in a customer's account record to:
650-12 (1) an official or employee of the state, a political
650-13 subdivision of the state, or the United States acting in an
650-14 official capacity;
650-15 (2) an employee of a utility acting in connection with
650-16 the employee's duties;
650-17 (3) a consumer reporting agency;
650-18 (4) a contractor or subcontractor approved by and
650-19 providing services to the utility, the state, a political
650-20 subdivision of the state, or the United States;
650-21 (5) a person for whom the customer has contractually
650-22 waived confidentiality for personal information; or
650-23 (6) another entity that provides water, wastewater,
650-24 sewer, gas, garbage, electricity, or drainage service for
650-25 compensation. (V.A.C.S. Art. 1446h, Sec. 5.)
650-26 Sec. 182.055. NO CIVIL LIABILITY FROM VIOLATION. A
650-27 government-operated utility or an officer or employee of a
651-1 government-operated utility is immune from civil liability for a
651-2 violation of this subchapter. (V.A.C.S. Art. 1446h, Sec. 6.)
651-3 (Sections 182.056-182.100 reserved for expansion)
651-4 SUBCHAPTER C. TESTING OF METERS
651-5 Sec. 182.101. DEFINITIONS. In this subchapter:
651-6 (1) "Consumer" means a person who obtains electricity
651-7 or gas from a utility.
651-8 (2) "Gas" includes natural gas and artificial gas.
651-9 (3) "Meter" means an instrument or machine used to
651-10 measure and record the use of electricity or gas.
651-11 (4) "Test" includes, in reference to the testing of a
651-12 meter and as necessary to the reading and examination of a meter,
651-13 the authority to break the seal.
651-14 (5) "Utility" means a person, other than a
651-15 governmental entity, who provides for compensation electricity or
651-16 gas for consumption in a municipality. (V.A.C.S. Art. 1124a,
651-17 Secs. 1 (part), 2, 3; New.)
651-18 Sec. 182.102. TESTING OF METER. (a) On complaint by a
651-19 consumer to the governing body of a municipality, an agent or
651-20 employee of the municipality shall examine, read, and test a meter
651-21 that is installed by the utility furnishing the electricity or gas.
651-22 (b) On demand by a consumer to the governing body of a
651-23 municipality, the governing body shall provide the consumer with a
651-24 detailed report stating the results of the examination, reading,
651-25 and test, including:
651-26 (1) whether the meter is in good condition;
651-27 (2) whether the meter functions properly; and
652-1 (3) the amount of electricity or gas used during a
652-2 period designated by the consumer in the demand, not to exceed one
652-3 year. (V.A.C.S. Art. 1124a, Secs. 1 (part), 4.)
652-4 Sec. 182.103. UTILITY REPRESENTATIVE; NOTICE. A utility
652-5 representative may be present during a meter test. The
652-6 municipality shall provide notice to a utility regarding the
652-7 testing of a meter not later than the third day before the date the
652-8 meter test is conducted. (V.A.C.S. Art. 1124a, Sec. 1 (part).)
652-9 Sec. 182.104. OFFENSE. (a) A utility or other person
652-10 commits an offense if the utility or other person fails or refuses
652-11 to allow an agent or employee of a municipality to examine a meter.
652-12 (b) An offense under this section is a misdemeanor
652-13 punishable by a fine not to exceed $200.
652-14 (c) Each day a utility or other person refuses to allow an
652-15 agent or employee of a municipality to examine a meter is a
652-16 separate offense. (V.A.C.S. Art. 1124a, Sec. 5.)
652-17 CHAPTER 183. UTILITY DEPOSITS
652-18 Sec. 183.001. DEFINITIONS
652-19 Sec. 183.002. INTEREST ON DEPOSIT
652-20 Sec. 183.003. RATE OF INTEREST
652-21 Sec. 183.004. INTEREST PAYMENT TO DEPOSITOR
652-22 Sec. 183.005. RETURN OF DEPOSIT
652-23 Sec. 183.006. CRIMINAL PENALTY
652-24 CHAPTER 183. UTILITY DEPOSITS
652-25 Sec. 183.001. DEFINITIONS. In this chapter:
652-26 (1) "Commission" means the Public Utility Commission
652-27 of Texas.
653-1 (2) "Utility" means a person, firm, company,
653-2 corporation, receiver, or trustee who furnishes water, electric,
653-3 gas, or telephone service. (V.A.C.S. Arts. 1440 (part), 1440a
653-4 (part); New.)
653-5 Sec. 183.002. INTEREST ON DEPOSIT. A utility that requires
653-6 the user of a service to pay a money deposit as a condition to
653-7 furnishing the service shall pay interest on the deposit from the
653-8 time the deposit is made. (V.A.C.S. Arts. 1440 (part), 1440a
653-9 (part).)
653-10 Sec. 183.003. RATE OF INTEREST. (a) The commission each
653-11 December 1, or the next regular workday if December 1 is a
653-12 Saturday, Sunday, or legal holiday, shall set the annual interest
653-13 rate for the next calendar year on deposits governed by this
653-14 chapter.
653-15 (b) The commission may not set the rate at an amount that
653-16 exceeds the lesser of:
653-17 (1) 85 percent of the average rate paid over the
653-18 previous 12-month period on United States treasury bills with a
653-19 12-month maturity date; or
653-20 (2) 12 percent.
653-21 (c) The commission may not set the rate at an amount that is
653-22 less than six percent. (V.A.C.S. Arts. 1440 (part), 1440a (part).)
653-23 Sec. 183.004. INTEREST PAYMENT TO DEPOSITOR. A utility
653-24 shall pay interest on the deposit to the depositor or the
653-25 depositor's heirs or assigns annually on demand or sooner if the
653-26 service is discontinued. (V.A.C.S. Arts. 1440 (part), 1440a
653-27 (part).)
654-1 Sec. 183.005. RETURN OF DEPOSIT. (a) When the service is
654-2 discontinued, the utility shall return the deposit and any unpaid
654-3 interest on the deposit to the depositor or the depositor's heirs
654-4 or legal representatives.
654-5 (b) The utility company may deduct from the amount returned
654-6 under Subsection (a) any payments due for the services. (V.A.C.S.
654-7 Arts. 1440 (part), 1440a (part).)
654-8 Sec. 183.006. CRIMINAL PENALTY. (a) A person commits an
654-9 offense if the person violates this chapter.
654-10 (b) An offense under this section is punishable by:
654-11 (1) a fine of not less than $25 and not more than
654-12 $200;
654-13 (2) confinement in jail for not less than six months
654-14 and not more than one year; or
654-15 (3) both the fine and confinement. (V.A.C.S.
654-16 Art. 1440a (part).)
654-17 CHAPTER 184. ELECTRIC AND WATER METERING
654-18 SUBCHAPTER A. GENERAL PROVISIONS
654-19 Sec. 184.001. DEFINITION
654-20 (Sections 184.002-184.010 reserved for expansion)
654-21 SUBCHAPTER B. METERING IN APARTMENTS, CONDOMINIUMS,
654-22 AND MOBILE HOME PARKS
654-23 Sec. 184.011. DEFINITIONS
654-24 Sec. 184.012. NEW CONSTRUCTION OR CONVERSION
654-25 Sec. 184.013. SUBMETERING
654-26 Sec. 184.014. RULES
654-27 (Sections 184.015-184.030 reserved for expansion)
655-1 SUBCHAPTER C. METERING IN RECREATIONAL VEHICLE PARKS
655-2 Sec. 184.031. DEFINITIONS
655-3 Sec. 184.032. METERED SALE UNDER COMMISSION RULES
655-4 Sec. 184.033. METERED SALE UNDER THIS CHAPTER
655-5 Sec. 184.034. COMPUTATION OF CHARGES
655-6 Sec. 184.035. REFUND OF SURCHARGES
655-7 (Sections 184.036-184.050 reserved for expansion)
655-8 SUBCHAPTER D. CENTRAL SYSTEM UTILITIES
655-9 Sec. 184.051. DEFINITIONS
655-10 Sec. 184.052. RULES
655-11 (Sections 184.053-184.070 reserved for expansion)
655-12 SUBCHAPTER E. LIABILITY FOR RULE VIOLATION
655-13 Sec. 184.071. LIABILITY
655-14 CHAPTER 184. ELECTRIC AND WATER METERING
655-15 SUBCHAPTER A. GENERAL PROVISIONS
655-16 Sec. 184.001. DEFINITION. In this chapter, "commission"
655-17 means the Public Utility Commission of Texas. (New.)
655-18 (Sections 184.002-184.010 reserved for expansion)
655-19 SUBCHAPTER B. METERING IN APARTMENTS, CONDOMINIUMS,
655-20 AND MOBILE HOME PARKS
655-21 Sec. 184.011. DEFINITIONS. In this subchapter:
655-22 (1) "Apartment house" means one or more buildings
655-23 containing more than five dwelling units each of which is rented
655-24 primarily for nontransient use with rent paid at intervals of one
655-25 week or longer. The term includes a rented or owner-occupied
655-26 residential condominium.
655-27 (2) "Dwelling unit" means:
656-1 (A) one or more rooms that are suitable for
656-2 occupancy as a residence and that contain kitchen and bathroom
656-3 facilities; or
656-4 (B) a mobile home in a mobile home park.
656-5 (V.A.C.S. Art. 1446d, Sec. 1.)
656-6 Sec. 184.012. NEW CONSTRUCTION OR CONVERSION. (a) A
656-7 political subdivision may not authorize the construction or
656-8 occupancy of a new apartment house, including the conversion of
656-9 property to a condominium, unless the construction plan provides
656-10 for the measurement of the quantity of electricity consumed by the
656-11 occupants of each dwelling unit of the apartment house, either by
656-12 individual metering by the utility company or by submetering by the
656-13 owner.
656-14 (b) This section does not prohibit a political subdivision
656-15 from issuing a permit to a nonprofit organization for construction
656-16 of a new apartment house for occupancy by low-income elderly
656-17 tenants if the nonprofit organization establishes, by submitting
656-18 engineering and cost data and a sworn statement, that all cost
656-19 savings will be passed on to the low-income elderly tenants.
656-20 (V.A.C.S. Art. 1446d, Secs. 2(a), (b).)
656-21 Sec. 184.013. SUBMETERING. (a) The owner of an apartment
656-22 house or mobile home park may submeter each dwelling unit in the
656-23 apartment house or mobile home park to measure the quantity of
656-24 electricity consumed by the occupants of the dwelling unit.
656-25 (b) Electric submetering equipment is subject to:
656-26 (1) the same rules adopted by the commission for
656-27 accuracy, testing, and recordkeeping of meters installed by
657-1 electric utilities; and
657-2 (2) the meter testing requirements of Subchapter C,
657-3 Chapter 38.
657-4 (c) If not more than 90 days before the date an owner,
657-5 operator, or manager of an apartment house installs individual
657-6 meters or submeters in the apartment house the owner, operator, or
657-7 manager increases rental rates and the increase in rental rates is
657-8 attributable to the increased cost of utilities, the owner,
657-9 operator, or manager, on installation of the meters or submeters,
657-10 shall:
657-11 (1) immediately reduce the rental rate by the amount
657-12 of the increase attributable to the increased cost of utilities;
657-13 and
657-14 (2) refund the amount of the increased rent:
657-15 (A) collected in the 90-day period preceding the
657-16 installation of the meters or submeters; and
657-17 (B) attributable to the cost of increased
657-18 utilities. (V.A.C.S. Art. 1446d, Secs. 2(c), 3 (part), 4.)
657-19 Sec. 184.014. RULES. (a) The commission shall adopt rules
657-20 under which an owner, operator, or manager of an apartment house or
657-21 mobile home park for which electricity is not individually metered
657-22 may install submetering equipment to allocate fairly the cost of
657-23 the electrical consumption of each dwelling unit in the apartment
657-24 house or mobile home park.
657-25 (b) In addition to other appropriate safeguards for a tenant
657-26 of an apartment house or mobile home park, a rule adopted under
657-27 Subsection (a) must provide that:
658-1 (1) the apartment house owner or a mobile home park
658-2 owner may not charge a tenant more than the cost per kilowatt hour
658-3 charged by the utility to the owner; and
658-4 (2) the apartment house owner shall maintain adequate
658-5 records relating to submetering and make those records available
658-6 for inspection by the tenant during reasonable business hours.
658-7 (c) A rule adopted under this section has the same effect as
658-8 a rule adopted under Title 2, and a utility company and the owner,
658-9 operator, or manager of an apartment house subject to this
658-10 subchapter is subject to enforcement under Sections 15.021, 15.022,
658-11 15.028, 15.029, 15.030, 15.031, 15.032, and 15.033. (V.A.C.S.
658-12 Art. 1446d, Sec. 3 (part).)
658-13 (Sections 184.015-184.030 reserved for expansion)
658-14 SUBCHAPTER C. METERING IN RECREATIONAL VEHICLE PARKS
658-15 Sec. 184.031. DEFINITIONS. In this subchapter:
658-16 (1) "Recreational vehicle" has the meaning assigned by
658-17 Section 522.004(b), Transportation Code.
658-18 (2) "Supplying utility" means the electric utility
658-19 from which a recreational vehicle park owner purchases electricity
658-20 consumed at the recreational vehicle park. (V.A.C.S. Art. 1446d-2,
658-21 Sec. 1.)
658-22 Sec. 184.032. METERED SALE UNDER COMMISSION RULES. The
658-23 metered sale of electricity by a recreational vehicle park owner in
658-24 compliance with submetering rules adopted by the commission under
658-25 Title 2 does not constitute the provision of electric service for
658-26 compensation. (V.A.C.S. Art. 1446d-2, Sec. 2 (part).)
658-27 Sec. 184.033. METERED SALE UNDER THIS CHAPTER.
659-1 Notwithstanding any provision of Title 2, the metered sale of
659-2 electricity by a recreational vehicle park owner does not
659-3 constitute the provision of electric service for compensation if:
659-4 (1) the electricity is consumed in a recreational
659-5 vehicle that is located in a recreational vehicle park;
659-6 (2) the owner can show that the owner does not
659-7 annually recover from recreational vehicle occupants through
659-8 metered charges more than the supplying utility charges the owner
659-9 for electricity that is submetered, taking into account fuel
659-10 refunds;
659-11 (3) the owner establishes a fiscal year for the
659-12 purposes of this subchapter and maintains for at least three years
659-13 records of:
659-14 (A) bills received from the supplying utility;
659-15 (B) charges made to recreational vehicle
659-16 occupants; and
659-17 (C) consumption records for each fiscal year;
659-18 (4) the owner charges for electricity using a fixed
659-19 rate per kilowatt hour for each fiscal year computed at the
659-20 beginning of the fiscal year in the manner provided by Section
659-21 184.034; and
659-22 (5) the owner complies with the refund requirements of
659-23 Section 184.035. (V.A.C.S. Art. 1446d-2, Sec. 2 (part).)
659-24 Sec. 184.034. COMPUTATION OF CHARGES. (a) For the purposes
659-25 of computing the charge for electricity under Section 184.033(4),
659-26 the recreational vehicle park owner shall divide the amount charged
659-27 the owner by the supplying utility for the preceding fiscal year by
660-1 the total number of kilowatt hours consumed by occupants visiting
660-2 the park in the preceding fiscal year and round the quotient to the
660-3 nearest cent.
660-4 (b) If since or during the preceding fiscal year the
660-5 supplying utility increases its rates, the owner may recompute the
660-6 preceding fiscal year's charges by the utility using the current
660-7 rates charged by the utility.
660-8 (c) If since or during the preceding fiscal year the
660-9 supplying utility decreases its rates, the owner shall recompute
660-10 the preceding fiscal year's charges by the utility using the
660-11 current rates charged by the utility.
660-12 (d) An owner may not:
660-13 (1) include a charge by the supplying utility for
660-14 electricity used in a common area or office of the recreational
660-15 vehicle park in computing the amounts under Subsection (b) or (c);
660-16 or
660-17 (2) recover that charge through a metered charge to a
660-18 recreational vehicle occupant. (V.A.C.S. Art. 1446d-2, Sec. 2
660-19 (part).)
660-20 Sec. 184.035. REFUND OF SURCHARGES. A recreational vehicle
660-21 park owner who determines at the end of a fiscal year that the
660-22 owner has collected more than the amount charged by the supplying
660-23 utility shall refund the excess amount to occupants visiting the
660-24 park in the succeeding fiscal year. (V.A.C.S. Art. 1446d-2, Sec. 2
660-25 (part).)
660-26 (Sections 184.036-184.050 reserved for expansion)
661-1 SUBCHAPTER D. CENTRAL SYSTEM UTILITIES
661-2 Sec. 184.051. DEFINITIONS. In this subchapter:
661-3 (1) "Apartment house" means one or more buildings
661-4 containing two or more dwelling units rented primarily for
661-5 nontransient use with rent paid at intervals of one week or longer.
661-6 (2) "Apartment house owner" means the legal
661-7 titleholder of an apartment house or an individual, firm, or
661-8 corporation purporting to be the landlord of tenants in the
661-9 apartment house.
661-10 (3) "Central system utilities" means electricity and
661-11 water consumed by and wastewater services related to a central air
661-12 conditioning system, central heating system, central hot water
661-13 system, or central chilled water system in an apartment house. The
661-14 term does not include utilities directly consumed in a dwelling
661-15 unit.
661-16 (4) "Customer" means an individual, firm, or
661-17 corporation in whose name a master meter is connected by a utility.
661-18 (5) "Dwelling unit" means one or more rooms that are
661-19 suitable for occupancy as a residence and that contain kitchen and
661-20 bathroom facilities.
661-21 (6) "Nonsubmetered master metered utility service"
661-22 means an electric utility service that is master metered for an
661-23 apartment house but is not submetered.
661-24 (7) "Tenant" means a person who is entitled to occupy
661-25 a dwelling unit in an apartment house to the exclusion of others
661-26 and who is obligated to pay for the occupancy under a written or
661-27 oral rental agreement.
662-1 (8) "Utility" means a public, private, or member-owned
662-2 utility that provides electricity, water, or wastewater service to
662-3 an apartment house served by a master meter. (V.A.C.S. Art. 1446f,
662-4 Sec. 1.)
662-5 Sec. 184.052. RULES. (a) The commission shall adopt rules
662-6 governing billing systems or methods used by an apartment house
662-7 owner to prorate or allocate among tenants central system utility
662-8 costs or nonsubmetered master metered utility service costs.
662-9 (b) In addition to other appropriate safeguards for a tenant
662-10 of an apartment house, a rule adopted under this section must
662-11 require that:
662-12 (1) a rental agreement contain:
662-13 (A) a clear written description of the method of
662-14 computing the allocation of central system utilities or
662-15 nonsubmetered master metered utilities for the apartment house; and
662-16 (B) a statement of the average apartment unit
662-17 monthly bill for all apartment units for any allocation of central
662-18 system utilities' costs or nonsubmetered master metered utility
662-19 service costs for the previous calendar year; and
662-20 (2) the apartment house owner:
662-21 (A) not impose a charge on a tenant in excess of
662-22 the actual charge imposed on the owner for utility consumption by
662-23 the apartment house; and
662-24 (B) maintain adequate records, including utility
662-25 bills and records concerning the central system utility or
662-26 nonsubmetered master metered utility service consumption of the
662-27 apartment house, the charges assessed by the utility, and the
663-1 allocation of central system utilities' costs or nonsubmetered
663-2 master metered utility service costs to the tenants and make the
663-3 records available for inspection by the tenants during normal
663-4 business hours.
663-5 (c) A rule adopted under this section has the same effect as
663-6 a rule adopted under Title 2, and an owner, operator, or manager of
663-7 an apartment house subject to this subchapter is subject to
663-8 enforcement under Sections 15.021, 15.022, 15.028, 15.029, 15.030,
663-9 15.031, 15.032, and 15.033. (V.A.C.S. Art. 1446f, Sec. 2.)
663-10 (Sections 184.053-184.070 reserved for expansion)
663-11 SUBCHAPTER E. LIABILITY FOR RULE VIOLATION
663-12 Sec. 184.071. LIABILITY. (a) A landlord who violates a
663-13 commission rule relating to submetering of electric utilities
663-14 consumed exclusively in a tenant's dwelling unit or a rule relating
663-15 to the allocation of central system utility costs or nonsubmetered
663-16 master metered electric utility costs is liable to the tenant for:
663-17 (1) three times the amount of any overcharge;
663-18 (2) a civil penalty equal to one month's rent;
663-19 (3) reasonable attorney's fees; and
663-20 (4) court costs.
663-21 (b) A landlord is not liable for the civil penalty provided
663-22 by Subsection (a)(2) if the landlord proves that the landlord's
663-23 violation of the rule was an unintentional mistake made in good
663-24 faith. (V.A.C.S. Art. 1446g.)
663-25 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES
663-26 Sec. 185.001. DEFINITIONS
663-27 Sec. 185.002. COMPLIANCE
664-1 Sec. 185.003. ADOPTION OF STANDARDS
664-2 Sec. 185.004. USE OF NATIONAL STANDARDS
664-3 Sec. 185.005. REVIEW OF STANDARDS
664-4 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES
664-5 Sec. 185.001. DEFINITIONS. In this chapter:
664-6 (1) "Commission" means the Public Utility Commission
664-7 of Texas.
664-8 (2) "Solar energy device" means a solar energy
664-9 collector or solar energy system that provides for the collection
664-10 of solar energy or the subsequent use of that energy as thermal,
664-11 mechanical, or electrical energy. (V.A.C.S. Art. 1446c-1, Sec. 1.)
664-12 Sec. 185.002. COMPLIANCE. A person who rates, labels, or
664-13 certifies the performance of a solar energy device in this state
664-14 shall comply with the standards adopted by the commission under
664-15 this chapter. (V.A.C.S. Art. 1446c-1, Sec. 5.)
664-16 Sec. 185.003. ADOPTION OF STANDARDS. (a) The commission
664-17 shall study and adopt standards for rating solar energy devices.
664-18 The standards shall be used in performance labeling and
664-19 certification of solar energy devices in this state.
664-20 (b) The commission shall examine rating standards and
664-21 certification programs used by other states and by industry in
664-22 adopting standards under this section.
664-23 (c) The commission shall adopt the standards that the
664-24 commission finds are the most widely used unless the commission
664-25 finds that those standards are not suitable for use in this state.
664-26 If the commission finds that a widely used standard is not
664-27 suitable, the commission may amend the standard or adopt a standard
665-1 that the commission finds suitable. (V.A.C.S. Art. 1446c-1, Sec.
665-2 2.)
665-3 Sec. 185.004. USE OF NATIONAL STANDARDS. If national
665-4 standards for rating and certifying solar energy devices are
665-5 developed by a federal agency in conjunction with the states and
665-6 industry, the commission shall adopt those national standards as
665-7 the standards for use in this state. (V.A.C.S. Art. 1446c-1, Sec.
665-8 4.)
665-9 Sec. 185.005. REVIEW OF STANDARDS. The commission shall
665-10 periodically review the standards adopted under this chapter and
665-11 shall amend those standards as necessary to ensure that the
665-12 standards are:
665-13 (1) appropriate in view of current technology; and
665-14 (2) the same as or similar to the standards widely
665-15 used by other states and by industry. (V.A.C.S. Art. 1446c-1, Sec.
665-16 3.)
665-17 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY
665-18 AND INTEGRITY OF UTILITY SERVICE
665-19 SUBCHAPTER A. CONTINUITY OF UTILITY SERVICE
665-20 Sec. 186.001. DEFINITION
665-21 Sec. 186.002. POLICY
665-22 Sec. 186.003. ENFORCEMENT BY EXECUTIVE DEPARTMENT
665-23 Sec. 186.004. UNLAWFUL PICKETING, THREATS, OR
665-24 INTIMIDATION
665-25 Sec. 186.005. RESTRAINING ORDER
665-26 Sec. 186.006. EMPLOYEE RIGHTS
665-27 (Sections 186.007-186.020 reserved for expansion)
666-1 SUBCHAPTER B. MANIPULATION OF SERVICE FOR CERTAIN LAW
666-2 ENFORCEMENT PURPOSES
666-3 Sec. 186.021. EMERGENCY INVOLVING HOSTAGE OR ARMED SUSPECT
666-4 (Sections 186.022-186.030 reserved for expansion)
666-5 SUBCHAPTER C. FRAUDULENT OBTAINING OF SERVICE
666-6 Sec. 186.031. DEFINITIONS
666-7 Sec. 186.032. FRAUDULENTLY OBTAINING TELECOMMUNICATIONS
666-8 SERVICES
666-9 Sec. 186.033. DISPOSITION OF CERTAIN EQUIPMENT
666-10 (Sections 186.034-186.040 reserved for expansion)
666-11 SUBCHAPTER D. AVAILABILITY OF EMERGENCY TELEPHONE SERVICE
666-12 Sec. 186.041. DEFINITIONS
666-13 Sec. 186.042. OBSTRUCTION OF EMERGENCY TELEPHONE CALL;
666-14 PENALTY
666-15 Sec. 186.043. FALSIFICATION OF EMERGENCY TELEPHONE CALL;
666-16 PENALTY
666-17 Sec. 186.044. NOTICE OF CERTAIN OFFENSES REQUIRED
666-18 Sec. 186.045. FAILURE TO PROVIDE NOTICE; PENALTY
666-19 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY
666-20 AND INTEGRITY OF UTILITY SERVICE
666-21 SUBCHAPTER A. CONTINUITY OF UTILITY SERVICE
666-22 Sec. 186.001. DEFINITION. In this subchapter, "public
666-23 utility" means a private corporation that does business in this
666-24 state and has the right of eminent domain, a municipality, or a
666-25 state agency, authority, or subdivision engaged in the business of:
666-26 (1) generating, transmitting, or distributing electric
666-27 energy to the public;
667-1 (2) producing, transmitting, or distributing natural
667-2 or artificial gas to the public; or
667-3 (3) furnishing water to the public. (V.A.C.S.
667-4 Art. 1446a, Sec. 2.)
667-5 Sec. 186.002. POLICY. (a) Continuous service by a public
667-6 utility is essential to the life, health, and safety of the public.
667-7 A person's wilful interruption of that service is a public calamity
667-8 that cannot be endured.
667-9 (b) A public utility is dedicated to public service. The
667-10 primary duty of a public utility, including its management and
667-11 employees, is to maintain continuous and adequate service at all
667-12 times to protect the safety and health of the public against the
667-13 danger inherent in the interruption of service.
667-14 (c) Each court and administrative agency of this state
667-15 shall:
667-16 (1) recognize the policy stated in this section; and
667-17 (2) interpret and apply this subchapter in accordance
667-18 with that policy. (V.A.C.S. Art. 1446a, Sec. 1.)
667-19 Sec. 186.003. ENFORCEMENT BY EXECUTIVE DEPARTMENT. In
667-20 accordance with Section 186.002, the governor, and the department
667-21 of the executive branch of government under the governor's
667-22 direction, shall exercise all power available under the
667-23 constitution and laws of this state to protect the public from
667-24 dangers incident to an interruption in water, electric, or gas
667-25 utility service in this state that occurs because of a violation of
667-26 this subchapter. (V.A.C.S. Art. 1446a, Sec. 6.)
667-27 Sec. 186.004. UNLAWFUL PICKETING, THREATS, OR INTIMIDATION.
668-1 (a) A person may not:
668-2 (1) picket the plant, premises, or other property of a
668-3 public utility with intent to disrupt the service of that utility
668-4 or to prevent the maintenance of that service; or
668-5 (2) engage in picketing that has the effect of
668-6 disrupting the service of a public utility or preventing the
668-7 maintenance of that service.
668-8 (b) A person may not:
668-9 (1) intimidate, threaten, or harass an employee of a
668-10 public utility with intent to disrupt the service of the utility or
668-11 prevent the maintenance of that service; or
668-12 (2) intimidate, threaten, or harass an employee of a
668-13 public utility if that conduct has the effect of disrupting the
668-14 service of the utility or preventing the maintenance of that
668-15 service. (V.A.C.S. Art. 1446a, Sec. 3.)
668-16 Sec. 186.005. RESTRAINING ORDER. (a) A district court
668-17 shall immediately inquire into the matter if a public utility
668-18 presents a verified petition to the court:
668-19 (1) alleging that in the judicial district of the
668-20 court a person is violating or threatening to violate Section
668-21 186.004 and that the violation or threatened violation will
668-22 interfere with the maintenance of adequate water, electric, or gas
668-23 service; and
668-24 (2) describing the acts committed in violation of
668-25 Section 186.004, or the threatened acts that, if committed, will
668-26 violate Section 186.004.
668-27 (b) If it appears that there is a violation or threatened
669-1 violation of Section 186.004, the court shall immediately issue an
669-2 order restraining the person, the person's agent, and any other
669-3 person acting with them from committing an act prohibited by that
669-4 section.
669-5 (c) A restraining order issued under this section is
669-6 effective when the petitioner files with the clerk of the court a
669-7 good and sufficient bond in an amount set by the court to cover
669-8 court costs that may reasonably accrue in connection with the case.
669-9 A judgment rendered in the case may not be superseded pending
669-10 appeal.
669-11 (d) Venue for a suit under this section is in any judicial
669-12 district in which the violation or threat to violate occurs.
669-13 (V.A.C.S. Art. 1446a, Sec. 4.)
669-14 Sec. 186.006. EMPLOYEE RIGHTS. This subchapter does not
669-15 limit the right of an employee of a public utility to:
669-16 (1) quit work and leave the employer's premises at any
669-17 time the employee chooses; or
669-18 (2) refuse to report for work when the employee does
669-19 not want to report. (V.A.C.S. Art. 1446a, Sec. 7.)
669-20 (Sections 186.007-186.020 reserved for expansion)
669-21 SUBCHAPTER B. MANIPULATION OF SERVICE FOR CERTAIN LAW
669-22 ENFORCEMENT PURPOSES
669-23 Sec. 186.021. EMERGENCY INVOLVING HOSTAGE OR ARMED SUSPECT.
669-24 (a) In an emergency in which the supervising law enforcement
669-25 official having jurisdiction in the geographical area has probable
669-26 cause to believe that an armed and barricaded suspect or a person
669-27 holding a hostage is committing a crime, the supervising law
670-1 enforcement official may order a designated telephone company
670-2 security official to cut or otherwise control telephone lines to
670-3 prevent telephone communication by the armed suspect or the hostage
670-4 holder with a person other than a peace officer or person
670-5 authorized by a peace officer.
670-6 (b) The serving telephone company in the geographical area
670-7 of a law enforcement unit shall designate a telephone company
670-8 security official and an alternate to provide all required
670-9 assistance to law enforcement officials to carry out this section.
670-10 (c) Good faith reliance on an order given by a supervising
670-11 law enforcement official under this section is a complete defense
670-12 to a civil or criminal action brought against a telephone company
670-13 or the company's director, officer, agent, or employee as a result
670-14 of compliance with the order. (V.A.C.S. Art. 1432b.)
670-15 (Sections 186.022-186.030 reserved for expansion)
670-16 SUBCHAPTER C. FRAUDULENT OBTAINING OF SERVICE
670-17 Sec. 186.031. DEFINITIONS. In this subchapter:
670-18 (1) "Publish" means to communicate information to
670-19 another by any means.
670-20 (2) "Telecommunications service" means the
670-21 transmission of a message or other information by a public utility,
670-22 including a telephone or telegraph company. (V.A.C.S. Art. 1446b,
670-23 Sec. 1.)
670-24 Sec. 186.032. FRAUDULENTLY OBTAINING TELECOMMUNICATIONS
670-25 SERVICES. (a) A person commits an offense if:
670-26 (1) knowing that another will use the published
670-27 information to avoid payment of a charge for telecommunications
671-1 service, the person publishes:
671-2 (A) an existing, cancelled, revoked, or
671-3 nonexistent telephone number;
671-4 (B) a credit number or other credit device; or
671-5 (C) a method of numbering or coding that is used
671-6 in issuing telephone numbers or credit devices, including credit
671-7 numbers; or
671-8 (2) the person makes or possesses equipment
671-9 specifically designed to be used fraudulently to avoid charges for
671-10 telecommunications service.
671-11 (b) An offense under this section is a misdemeanor
671-12 punishable by a fine of not more than $500, by confinement in jail
671-13 for not more than 60 days, or by both, unless the person has been
671-14 previously convicted of an offense under this section. A second or
671-15 subsequent offense is a felony punishable by a fine of not more
671-16 than $5,000, by imprisonment in the penitentiary for not less than
671-17 two years and not more than five years, or by both.
671-18 (c) This section does not apply to an employee of a public
671-19 utility who provides telecommunications service while acting in the
671-20 course of employment. (V.A.C.S. Art. 1446b, Secs. 2, 4.)
671-21 Sec. 186.033. DISPOSITION OF CERTAIN EQUIPMENT. (a) A
671-22 peace officer may seize equipment described by Section
671-23 186.032(a)(2) under a warrant or incident to a lawful arrest.
671-24 (b) If the person who possessed equipment seized under
671-25 Subsection (a) is convicted under Section 186.032, the court
671-26 entering the judgment of conviction shall order the sheriff to
671-27 destroy the equipment. (V.A.C.S. Art. 1446b, Sec. 3.)
672-1 (Sections 186.034-186.040 reserved for expansion)
672-2 SUBCHAPTER D. AVAILABILITY OF EMERGENCY TELEPHONE SERVICE
672-3 Sec. 186.041. DEFINITIONS. In this subchapter:
672-4 (1) "Emergency" means a situation in which property or
672-5 human life is in jeopardy and the prompt summoning of aid is
672-6 essential.
672-7 (2) "Party line" means a subscriber's telephone
672-8 circuit, consisting of two or more main telephone stations
672-9 connected with the circuit, each station with a distinctive ring or
672-10 telephone number. (V.A.C.S. Art. 1432a, Sec. 3.)
672-11 Sec. 186.042. OBSTRUCTION OF EMERGENCY TELEPHONE CALL;
672-12 PENALTY. (a) A person commits an offense if:
672-13 (1) the person wilfully refuses to relinquish a party
672-14 line immediately on being informed that the line is needed for an
672-15 emergency call described by Subdivision (2); and
672-16 (2) the party line is needed for an emergency call:
672-17 (A) to a fire or police department; or
672-18 (B) for medical aid or an ambulance service.
672-19 (b) An offense under this section is a misdemeanor
672-20 punishable by:
672-21 (1) a fine of not less than $25 and not more than
672-22 $500;
672-23 (2) confinement in the county jail for not more than
672-24 one month; or
672-25 (3) both fine and confinement. (V.A.C.S. Art. 1432a,
672-26 Sec. 1.)
672-27 Sec. 186.043. FALSIFICATION OF EMERGENCY TELEPHONE CALL;
673-1 PENALTY. (a) A person commits an offense if the person secures
673-2 the use of a party line by falsely stating that the line is needed
673-3 for an emergency call:
673-4 (1) to a fire or police department; or
673-5 (2) for medical aid or an ambulance service.
673-6 (b) An offense under this section is a misdemeanor
673-7 punishable by:
673-8 (1) a fine of not less than $25 and not more than
673-9 $500;
673-10 (2) confinement in the county jail for not more than
673-11 one month; or
673-12 (3) both fine and confinement. (V.A.C.S. Art. 1432a,
673-13 Sec. 2.)
673-14 Sec. 186.044. NOTICE OF CERTAIN OFFENSES REQUIRED. (a) A
673-15 telephone directory distributed to the public in this state that
673-16 lists the telephone numbers of an exchange located in this state
673-17 must contain a notice explaining the offenses under Sections
673-18 186.042 and 186.043. The notice must be:
673-19 (1) printed in type not smaller than the smallest type
673-20 on the same page; and
673-21 (2) preceded by the word "warning" printed in type at
673-22 least as large as the largest type on the same page.
673-23 (b) At least once each year, a person providing telephone
673-24 service shall enclose in the telephone bill mailed to each person
673-25 who uses a party line telephone a notice of Sections 186.042 and
673-26 186.043.
673-27 (c) This section does not apply to a directory, commonly
674-1 known as a classified directory, that is distributed solely for
674-2 business advertising purposes. (V.A.C.S. Art. 1432a, Sec. 4
674-3 (part).)
674-4 Sec. 186.045. FAILURE TO PROVIDE NOTICE; PENALTY. (a) A
674-5 person providing telephone service commits an offense if the
674-6 person:
674-7 (1) distributes copies of a telephone directory
674-8 subject to Section 186.044(a) from which the notice required by
674-9 that section is wilfully omitted; or
674-10 (2) wilfully fails to enclose in telephone bills the
674-11 notice required by Section 186.044(b).
674-12 (b) An offense under this section is a misdemeanor
674-13 punishable by a fine of not less than $25 and not more than $500.
674-14 (V.A.C.S. Art. 1432a, Sec. 4 (part).)
674-15 SECTION 2. CONFORMING AMENDMENT. Title 4, Water Code, is
674-16 amended by adding Chapter 67 to read as follows:
674-17 CHAPTER 67. WATER SUPPLY OR SEWER SERVICE CORPORATIONS
674-18 Sec. 67.001. DEFINITIONS. In this chapter:
674-19 (1) "Board" means the board of directors of a
674-20 corporation.
674-21 (2) "Corporation" means a water supply or sewer
674-22 service corporation operating under this chapter.
674-23 (3) "Director" means a member of the board of
674-24 directors. (New.)
674-25 Sec. 67.002. PURPOSE OF CORPORATION. A corporation may be
674-26 organized under this chapter to provide:
674-27 (1) water supply, sewer service, or both for a
675-1 municipality, a private corporation, an individual, or a military
675-2 camp or base; or
675-3 (2) flood control and a drainage system for a
675-4 political subdivision or for another person. (V.A.C.S. Art. 1434a,
675-5 Sec. 1 (part).)
675-6 Sec. 67.003. CREATION OF CORPORATION. (a) Three or more
675-7 individuals who are citizens of this state may form a corporation
675-8 by making an application to the secretary of state in the same
675-9 manner as provided by law for an application for a private
675-10 corporation.
675-11 (b) The application for charter must include the number of
675-12 directors and the name of each director.
675-13 (c) The name designated for the corporation must include the
675-14 words "Water Supply Corporation." (V.A.C.S. Art. 1434a, Secs. 1
675-15 (part), 3(a) (part).)
675-16 Sec. 67.004. APPLICATION OF TEXAS NON-PROFIT CORPORATION
675-17 ACT. To the extent it does not conflict with this chapter, the
675-18 Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
675-19 Vernon's Texas Civil Statutes) applies to a corporation created
675-20 under:
675-21 (1) this chapter; or
675-22 (2) Chapter 76, Acts of the 43rd Legislature, 1st
675-23 Called Session, 1933 (Article 1434a, Vernon's Texas Civil
675-24 Statutes). (V.A.C.S. Art. 1434a, Sec. 2(d).)
675-25 Sec. 67.005. DIRECTORS. (a) A corporation may not have
675-26 more than 21 directors.
675-27 (b) The corporation may increase the number of directors by
676-1 amendment to the bylaws but may not exceed the limit imposed by
676-2 Subsection (a).
676-3 (c) The bylaws of the corporation may provide that directors
676-4 serve staggered terms of approximately two or three years.
676-5 (d) At the first annual meeting of the shareholders, the
676-6 directors shall be divided into two or three classes according to
676-7 the length of the terms the directors serve. The classification of
676-8 directors may not take effect before that meeting.
676-9 (e) The division of the directors and the corresponding
676-10 terms must be set so that:
676-11 (1) one-half of the directors, as nearly as possible,
676-12 are elected annually, if a two-year term is provided; or
676-13 (2) one-third of the directors, as nearly as possible,
676-14 are elected annually, if a three-year term is provided.
676-15 (f) After the implementation of two-year or three-year terms
676-16 for directors, as directors' terms expire, the members shall elect
676-17 their successors to serve until the second or third succeeding
676-18 annual meeting after their election, as appropriate. (V.A.C.S.
676-19 Art. 1434a, Secs. 3(a) (part), (b).)
676-20 Sec. 67.006. OFFICERS. (a) The board shall elect a
676-21 president, a vice president, and a secretary-treasurer following
676-22 the issuance of a charter and after each annual meeting of the
676-23 membership or shareholders.
676-24 (b) The board may require a bond of an officer for faithful
676-25 performance of the officer's duties.
676-26 (c) The salary of an officer of the corporation other than
676-27 secretary-treasurer or a manager employed under Section 67.012 may
677-1 not exceed $5,000 a year. The board shall set the
677-2 secretary-treasurer's salary at an amount commensurate with the
677-3 secretary-treasurer's duties. (V.A.C.S. Art. 1434a, Sec. 5
677-4 (part).)
677-5 Sec. 67.007. ANNUAL MEETING. The annual meeting of the
677-6 members or shareholders of the corporation must be held between
677-7 January 1 and May 1 at a time specified by the bylaws or the board.
677-8 (V.A.C.S. Art. 1434a, Sec. 5 (part).)
677-9 Sec. 67.008. DISTRIBUTION OF PROFITS. (a) The
677-10 incorporators may provide in the charter of the corporation that a
677-11 dividend will not be paid on the stock and that all profits of the
677-12 corporation will be paid annually to political subdivisions or
677-13 other persons that have transacted business with the corporation
677-14 during the previous year.
677-15 (b) The corporation shall distribute any profits under
677-16 Subsection (a) in direct proportion to the amount of business the
677-17 corporation transacts with each entity during that year.
677-18 (c) The corporation may not make a distribution under
677-19 Subsection (a) if the corporation has unpaid indebtedness.
677-20 (d) A corporation may allocate to a sinking fund an amount
677-21 of the annual profits as determined necessary by the board for
677-22 maintenance, operation, and replacements. (V.A.C.S. Art. 1434a,
677-23 Sec. 1 (part).)
677-24 Sec. 67.009. FACILITIES. A corporation may construct,
677-25 acquire, lease, improve, or maintain a facility, plant, equipment,
677-26 or appliance helpful or necessary to provide more adequate sewer
677-27 service, flood control, or drainage for a political subdivision.
678-1 (V.A.C.S. Art. 1434a, Sec. 2(c).)
678-2 Sec. 67.010. POWER TO CONTRACT WITH OTHER ENTITIES. (a) A
678-3 corporation may enter into a contract with any political
678-4 subdivision, federal agency, or other entity for the acquisition,
678-5 construction, or maintenance of a project or improvement for an
678-6 authorized purpose.
678-7 (b) A corporation may obtain money from any political
678-8 subdivision of this state, federal agency, or other entity to
678-9 finance the acquisition or construction of a project or improvement
678-10 for an authorized purpose.
678-11 (c) A corporation may encumber the project or improvement
678-12 and may encumber any revenue derived from the operation of the
678-13 project or improvement. The corporation may issue bonds, notes, or
678-14 warrants to secure payment of funds received. Indebtedness
678-15 authorized by this subsection is a charge only on specifically
678-16 encumbered property and revenues and is not a general obligation of
678-17 indebtedness of the corporation.
678-18 (d) A political subdivision may contract with a corporation
678-19 under Section 402.014, Local Government Code, to carry out this
678-20 chapter. (V.A.C.S. Art. 1434a, Secs. 2(a), (b).)
678-21 Sec. 67.011. POWERS OF CORPORATION IN CERTAIN COUNTIES. In
678-22 a county with a population of less than 2 million, a corporation
678-23 may:
678-24 (1) own, hold, lease, or otherwise acquire water
678-25 wells, springs, or other sources of water supply;
678-26 (2) build, operate, and maintain pipelines to
678-27 transport water or wastewater;
679-1 (3) build and operate plants and equipment necessary
679-2 to distribute water or to treat and dispose of wastewater; and
679-3 (4) sell water or provide wastewater services to a
679-4 political subdivision, a private corporation, or an individual.
679-5 (V.A.C.S. Art. 1434a, Sec. 4 (part).)
679-6 Sec. 67.012. USE OF MANAGER. The board may employ a manager
679-7 to handle the business of the corporation under the direction of
679-8 the board. The board shall set the salary for the manager.
679-9 (V.A.C.S. Art. 1434a, Sec. 6.)
679-10 Sec. 67.013. USE OF COUNSEL. The board may employ and
679-11 compensate counsel to represent the corporation as the board
679-12 determines is necessary. (V.A.C.S. Art. 1434a, Sec. 7.)
679-13 Sec. 67.014. DEPOSITORY OF FUNDS. (a) The board shall
679-14 select as depository for the funds of the corporation a bank in
679-15 this state that is insured by the Federal Deposit Insurance
679-16 Corporation and require from the depository a bond in an amount the
679-17 board finds necessary to protect the corporation.
679-18 (b) Funds allocated by the board to a sinking fund for
679-19 replacement, amortization of debts, and the payment of interest
679-20 that are not required to be spent in the year in which deposited
679-21 shall be:
679-22 (1) invested in bonds or other evidence of
679-23 indebtedness of the United States;
679-24 (2) placed with the depository in an interest-bearing
679-25 savings account; or
679-26 (3) invested in shares or share accounts in a savings
679-27 and loan association insured by the Federal Deposit Insurance
680-1 Corporation. (V.A.C.S. Art. 1434a, Sec. 8, as amended Acts 57th
680-2 Leg., R.S., Ch. 81; Acts 57th Leg., 1st C.S., Ch. 54.)
680-3 Sec. 67.015. EXEMPTION FROM SECURITIES ACT. The Securities
680-4 Act (Article 581-1 et seq., Vernon's Texas Civil Statutes) does not
680-5 apply to:
680-6 (1) a note, bond, or other evidence of indebtedness
680-7 issued by a corporation doing business in this state to the United
680-8 States;
680-9 (2) an instrument executed to secure a debt of a
680-10 corporation to the United States; or
680-11 (3) the issuance of a membership certificate or stock
680-12 certificate of a corporation. (V.A.C.S. Art. 1434a, Sec. 9.)
680-13 Sec. 67.016. TRANSFER OR CANCELLATION OF RIGHT OF
680-14 PARTICIPATION. (a) A person or entity that owns any stock of, is
680-15 a member of, or has some other right of participation in a
680-16 corporation may not sell or transfer that right of participation to
680-17 another person or entity except:
680-18 (1) by will to a person who is related to the testator
680-19 within the second degree by consanguinity;
680-20 (2) by transfer without compensation to a person who
680-21 is related to the owner of the stock or other interest within the
680-22 second degree by consanguinity; or
680-23 (3) by transfer without compensation or by sale to the
680-24 corporation.
680-25 (b) Subsection (a) does not apply to a person or entity that
680-26 transfers the right of participation to another person or entity as
680-27 part of the conveyance of real estate from which the right of
681-1 participation arose.
681-2 (c) The transfer of a right of participation under this
681-3 section does not entitle the transferee to water or sewer service
681-4 unless each condition for water or sewer service is met as provided
681-5 in the corporation's published rates, charges, and conditions of
681-6 service. A transfer and service application must be completed on
681-7 the corporation's standardized forms and filed with the
681-8 corporation's office in a timely manner. The conditions of service
681-9 may not require a personal appearance in the office of the
681-10 corporation if the transferee accepts in writing the rates,
681-11 charges, and conditions of service.
681-12 (d) The corporation may make water or sewer service provided
681-13 as a result of a right of participation in the corporation
681-14 conditional on ownership of the real estate designated to receive
681-15 service and from which the right of participation arises.
681-16 (e) The corporation may cancel a person's or other entity's
681-17 right of participation if the person or entity fails to:
681-18 (1) meet the conditions for water or sewer service
681-19 prescribed by the corporation's published rates, charges, and
681-20 conditions of service; or
681-21 (2) comply with any other condition placed on the
681-22 receipt of water or sewer service under the right of participation.
681-23 (f) Consistent with Subsection (a), the corporation may
681-24 reassign a canceled right of participation to a person or entity
681-25 that has legal title to the real estate from which the canceled
681-26 right of participation arose and for which water or sewer service
681-27 is requested.
682-1 (g) Notwithstanding Subsection (a), the corporation shall
682-2 reassign a canceled right of participation to a person or entity
682-3 that acquires the real estate from which the right of participation
682-4 arose through judicial or nonjudicial foreclosure. The corporation
682-5 may require proof of ownership resulting from the foreclosure.
682-6 (h) Service provided following a transfer under Subsection
682-7 (f) or (g) is made subject to compliance with the conditions for
682-8 water or sewer service prescribed by the corporation's published
682-9 rates, charges, and conditions of service. (V.A.C.S. Art. 1434a,
682-10 Sec. 9A.)
682-11 Sec. 67.017. VOLUNTARY CONTRIBUTIONS ON BEHALF OF EMERGENCY
682-12 SERVICES. (a) A corporation may as part of its billing process
682-13 collect from its customers a voluntary contribution, including a
682-14 voluntary membership or subscription fee, on behalf of a volunteer
682-15 fire department or an emergency medical service.
682-16 (b) A corporation that collects contributions under this
682-17 section shall provide each customer at the time that the customer
682-18 first subscribes to the water or sewer service, and at least
682-19 annually thereafter, a written statement:
682-20 (1) describing the procedure by which the customer may
682-21 make a contribution with the customer's bill payment;
682-22 (2) designating the volunteer fire department or
682-23 emergency medical service to which the corporation will deliver the
682-24 contribution;
682-25 (3) informing the customer that a contribution is
682-26 voluntary; and
682-27 (4) describing the deductibility status of the
683-1 contribution under federal income tax law.
683-2 (c) A billing by the corporation that includes a voluntary
683-3 contribution under this section must clearly state that the
683-4 contribution is voluntary and that it may be deducted from the
683-5 billed amount.
683-6 (d) The corporation shall promptly deliver contributions
683-7 that it collects under this section to the designated volunteer
683-8 fire department or emergency medical service, except that the
683-9 corporation may keep from the contributions an amount equal to the
683-10 lesser of:
683-11 (1) the corporation's expenses in administering the
683-12 contribution program; or
683-13 (2) five percent of the amount collected as
683-14 contributions. (V.A.C.S. Art. 1434a, Sec. 4A.)
683-15 SECTION 3. CONFORMING AMENDMENT. Chapter 402, Local
683-16 Government Code, is amended by adding Subchapter F to read as
683-17 follows:
683-18 SUBCHAPTER F. MUNICIPAL WATER CORPORATIONS
683-19 AND MUNICIPAL WATER SYSTEMS
683-20 Sec. 402.101. MUNICIPAL WATER CONTRACTS. The governing body
683-21 of a municipality in which there is a water corporation may
683-22 contract with the corporation to supply water to a street, alley,
683-23 lot, square, or public place in a municipality. (V.A.C.S.
683-24 Art. 1434.)
683-25 Sec. 402.102. EMINENT DOMAIN BY MUNICIPAL SEWER PROVIDERS.
683-26 (a) A corporation incorporated in this state for the purpose of
683-27 owning, constructing, or maintaining a sewer system in a
684-1 municipality may by eminent domain condemn private property to:
684-2 (1) construct and maintain sewer pipes, mains and
684-3 laterals, and connections; and
684-4 (2) maintain vats, filtration pipes, and other pipes
684-5 for the final disposition of sewage.
684-6 (b) A corporation may exercise a power described by
684-7 Subsection (a) only if:
684-8 (1) the use of private property is necessary for the
684-9 successful operation of the sewer system; and
684-10 (2) the sewer system is beneficial to the public use,
684-11 health, or convenience.
684-12 (c) The power of eminent domain may not be used under this
684-13 section in the boundaries of a municipality unless permitted or
684-14 required by the municipality granting a franchise to the
684-15 corporation seeking the right of condemnation. (V.A.C.S.
684-16 Art. 1439.)
684-17 Sec. 402.103. RIGHTS OF WATER CORPORATION PROVIDING SERVICE
684-18 TO MUNICIPALITY; EMINENT DOMAIN. (a) A water corporation in a
684-19 municipality may sell and furnish water required by a municipality
684-20 for a public or private building or for any other purpose.
684-21 (b) A water corporation may lay water system pipes, mains,
684-22 or conductors through a street, alley, lane, or square of a
684-23 municipality if the governing body of the municipality consents,
684-24 subject to any regulation by the governing body.
684-25 (c) If necessary to preserve the public health, a water
684-26 corporation incorporated under state law to construct waterworks or
684-27 to furnish water supply to a municipality may exercise the power of
685-1 eminent domain to condemn private property necessary to construct a
685-2 supply reservoir or standpipe for water work. (V.A.C.S. Art. 1433
685-3 (part).)
685-4 Sec. 402.104. LOCATION OF WATER LINES OUTSIDE MUNICIPAL
685-5 BOUNDARIES. (a) A water corporation or municipality may lay water
685-6 system pipes, mains, conductors, or other fixtures through, under,
685-7 along, across, or over a public road, a public street, or a public
685-8 waterway not in a municipality in a manner that does not
685-9 inconvenience the public using the road, street, or waterway.
685-10 (b) A water corporation or municipality proposing under this
685-11 subchapter to build a water line along the right-of-way of a state
685-12 highway or county road not in a municipality shall give notice of
685-13 the proposal to:
685-14 (1) the Texas Transportation Commission, if the
685-15 proposal relates to a state highway; or
685-16 (2) the commissioners court of the county if the
685-17 proposal relates to a county road.
685-18 (c) On receipt of notice under Subsection (b), the Texas
685-19 Transportation Commission or commissioners court may designate the
685-20 location in the right-of-way where the corporation or municipality
685-21 may construct the water line. (V.A.C.S. Arts. 1433 (part), 1433a
685-22 (part).)
685-23 Sec. 402.105. RELOCATION OF WATER LINE TO ALLOW CHANGE TO
685-24 TRAFFIC LANE. (a) The authority of the Texas Transportation
685-25 Commission under this section is limited to a water line on a state
685-26 highway not in a municipality. The authority of the commissioners
685-27 court under this section is limited to a water line on a county
686-1 road not in a municipality.
686-2 (b) The Texas Transportation Commission or the commissioners
686-3 court of a county may require a water corporation or municipality
686-4 to relocate the corporation's or municipality's water line at the
686-5 corporation's or municipality's own expense to allow the widening
686-6 or other changing of a traffic lane.
686-7 (c) To impose a requirement under this section, the Texas
686-8 Transportation Commission or the commissioners court, as
686-9 appropriate, must give to the water corporation or municipality 30
686-10 days' written notice of the requirement. The notice must identify
686-11 the water line to be relocated and indicate the location on the new
686-12 right-of-way where the corporation or municipality may place the
686-13 line. (V.A.C.S. Arts. 1433 (part), 1433a (part).)
686-14 SECTION 4. CONFORMING AMENDMENT. Subchapter Z, Chapter 402,
686-15 Local Government Code, is amended by adding Section 402.906 to read
686-16 as follows:
686-17 Sec. 402.906. MUNICIPAL UTILITY PLANTS. (a) This section
686-18 applies only to a general-law municipality that owns a utility
686-19 plant that provides utility service.
686-20 (b) The governing body of a municipality may:
686-21 (1) by ordinance regulate the rates and compensation
686-22 charged the public by the municipality for utility service;
686-23 (2) establish and operate a plant to manufacture,
686-24 generate, or produce utility service; and
686-25 (3) sell and distribute utility service to the public
686-26 in the municipality's boundaries.
686-27 (c) In this section, "utility service" means the provision
687-1 of water, sewer service, gas, electric energy, or a substance used
687-2 for lighting, heat, or power. (V.A.C.S. Art. 1123.)
687-3 SECTION 5. CONFORMING AMENDMENT. Chapter 91, Natural
687-4 Resources Code, is amended by adding Subchapter H to read as
687-5 follows:
687-6 SUBCHAPTER H. UNDERGROUND STORAGE FACILITIES FOR NATURAL GAS
687-7 Sec. 91.251. DEFINITIONS. In this subchapter:
687-8 (1) "Intrastate gas pipeline facility" has the meaning
687-9 assigned by the United States Department of Transportation under
687-10 Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
687-11 et seq.), and its subsequent amendments.
687-12 (2) "Natural gas" means any gaseous material composed
687-13 primarily of methane in either its original or its manufactured
687-14 state.
687-15 (3) "Natural gas underground storage" means the
687-16 storage of natural gas beneath the surface of the earth in a
687-17 formation, stratum, or reservoir.
687-18 (4) "Storage facility" has the meaning assigned by
687-19 Section 91.173. (V.A.C.S. Art. 6053-3, Secs. 1, 4(f) (part).)
687-20 Sec. 91.252. COMMISSION JURISDICTION. (a) The commission
687-21 has jurisdiction over:
687-22 (1) natural gas underground storage; and
687-23 (2) surface and subsurface equipment and facilities
687-24 used for natural gas underground storage.
687-25 (b) This subchapter does not apply to a storage facility
687-26 that is:
687-27 (1) part of an interstate gas pipeline facility as
688-1 defined by the United States Department of Transportation; and
688-2 (2) subject to federal minimum standards adopted under
688-3 Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
688-4 et seq.), and its subsequent amendments. (V.A.C.S. Art. 6053-3,
688-5 Secs. 2, 3.)
688-6 Sec. 91.253. COMMISSION ENFORCEMENT. (a) In addition to
688-7 other authority specifically granted to the commission under this
688-8 subchapter, the commission may enforce this subchapter or a rule
688-9 adopted or an order or permit issued under this subchapter as
688-10 provided by Section 91.207.
688-11 (b) Section 91.003 does not apply to this subchapter.
688-12 (V.A.C.S. Art. 6053-3, Sec. 10; New.)
688-13 Sec. 91.254. INSPECTION; EXAMINATION; CREDENTIALS. (a) The
688-14 commission may inspect a storage facility for compliance with the
688-15 safety standards and practices and the recordkeeping requirements
688-16 adopted under Sections 91.255, 91.257, and 91.258.
688-17 (b) To conduct an inspection under this section, a
688-18 commissioner or a designated commission employee or agent may enter
688-19 property on which a storage facility is located at a reasonable
688-20 time and in a reasonable manner to examine:
688-21 (1) the facility and any related buildings or
688-22 equipment; and
688-23 (2) the records required to be maintained at the
688-24 storage facility under Section 91.258.
688-25 (c) A commissioner or a commission employee or agent may not
688-26 enter the premises of a storage facility having personnel on the
688-27 premises of the facility unless proper credentials are first
689-1 presented to the person at the facility who is in charge of the
689-2 property. (V.A.C.S. Art. 6053-3, Sec. 6.)
689-3 Sec. 91.255. SAFETY STANDARDS AND PRACTICES. (a) The
689-4 commission by rule shall adopt safety standards and practices for
689-5 natural gas underground storage and storage facilities. The
689-6 standards and practices must:
689-7 (1) require the installation and periodic testing of
689-8 safety devices;
689-9 (2) establish emergency notification procedures for
689-10 the operator of a facility in the event of a release of a hazardous
689-11 substance that poses a substantial risk to the public;
689-12 (3) establish fire prevention and response procedures;
689-13 (4) require training for the employees of the storage
689-14 facility on the safe operation of the storage facility; and
689-15 (5) establish any other safety standard or practice
689-16 that is reasonable and necessary for underground natural gas
689-17 storage and the safe construction, operation, and maintenance of a
689-18 storage facility.
689-19 (b) The commission may adopt different standards and
689-20 practices for different types of storage facilities and may
689-21 distinguish among natural gas underground storage in salt dome
689-22 caverns, depleted reservoirs, and embedded salt formations.
689-23 (c) The commission may grant an exception to a standard or
689-24 practice adopted under this section in a permit or amended permit
689-25 issued to a storage facility if the exception will not constitute
689-26 an unreasonable danger to the public.
689-27 (d) The commission may impose an additional standard or
690-1 practice in a permit or amended permit issued to a storage
690-2 facility.
690-3 (e) A safety standard or practice adopted by the commission
690-4 for a storage facility that is part of an intrastate gas pipeline
690-5 facility must be compatible with federal minimum standards.
690-6 (f) The commission shall require that records of safety
690-7 device tests required by Subsection (a)(1) be:
690-8 (1) filed with the commission; or
690-9 (2) maintained by the owner or operator and made
690-10 available for inspection by the commission. (V.A.C.S. Art. 6053-3,
690-11 Secs. 4(a), (b), (c), (d), (f) (part).)
690-12 Sec. 91.256. LIMITATION ON POWERS OF MUNICIPALITIES AND
690-13 COUNTIES. A municipality or county may not adopt or enforce an
690-14 ordinance that establishes a safety standard or practice applicable
690-15 to a storage facility that is subject to regulation under this
690-16 subchapter, another state law, or a federal law. (V.A.C.S.
690-17 Art. 6053-3, Sec. 11.)
690-18 Sec. 91.257. SAFETY PROCEDURE MANUAL. The commission may
690-19 require the owner or operator of a storage facility to prepare a
690-20 safety procedure manual for each storage facility and to:
690-21 (1) file a copy of the manual with the commission; or
690-22 (2) make the manual available for inspection under
690-23 Section 91.254. (V.A.C.S. Art. 6053-3, Sec. 4(e).)
690-24 Sec. 91.258. RECORDS; REPORTS. (a) An owner or operator of
690-25 a storage facility shall:
690-26 (1) maintain records and make reports relating to
690-27 construction, operation, or maintenance of the facility as required
691-1 by commission rule; and
691-2 (2) provide any other information required by the
691-3 commission relating to construction, operation, or maintenance of
691-4 the facility.
691-5 (b) The commission may provide forms for reports required
691-6 under Subsection (a). (V.A.C.S. Art. 6053-3, Sec. 5.)
691-7 Sec. 91.259. DAMAGE TO STORAGE FACILITY; DISABLING A SAFETY
691-8 DEVICE. A person may not:
691-9 (1) intentionally damage or destroy a storage
691-10 facility; or
691-11 (2) disable a safety device in a storage facility
691-12 except to:
691-13 (A) repair, maintain, test, or replace the
691-14 device; or
691-15 (B) conduct other activities that are reasonably
691-16 necessary for the safe operation of the storage facility.
691-17 (V.A.C.S. Art. 6053-3, Sec. 7.)
691-18 Sec. 91.260. INJUNCTION; CIVIL PENALTY. (a) The attorney
691-19 general, at the request of the commission, shall bring a civil
691-20 action against a person who has violated or is violating this
691-21 subchapter or a rule adopted or an order or permit issued under
691-22 this subchapter for:
691-23 (1) injunctive relief to restrain the person from the
691-24 violation;
691-25 (2) the assessment and recovery of a civil penalty for
691-26 a violation; or
691-27 (3) both injunctive relief and a civil penalty.
692-1 (b) A civil penalty assessed under this section may not
692-2 exceed $25,000 for each violation.
692-3 (c) Each day of a continuing violation may be considered a
692-4 separate violation for the purpose of penalty assessment.
692-5 (d) The maximum penalty assessed for a related series of
692-6 violations may not exceed $500,000. (V.A.C.S. Art. 6053-3, Sec.
692-7 8.)
692-8 Sec. 91.261. ADMINISTRATIVE PENALTY. (a) The commission
692-9 may assess, as provided by this section and Sections 91.262,
692-10 91.263, and 91.264, an administrative penalty against a person who
692-11 violates this subchapter or a rule adopted or an order or permit
692-12 issued under this subchapter.
692-13 (b) Except as provided by Subsection (c), the penalty for
692-14 each violation may be in an amount not to exceed $10,000. The
692-15 maximum penalty assessed under this subsection for a related series
692-16 of violations may not exceed $200,000.
692-17 (c) The penalty for each violation of Section 91.259 may be
692-18 in an amount not to exceed $25,000. The maximum penalty assessed
692-19 under this subsection for a continuing violation may not exceed
692-20 $300,000.
692-21 (d) Each day a violation continues or occurs may be
692-22 considered a separate violation for the purpose of penalty
692-23 assessment under Subsection (b) or (c).
692-24 (e) In determining the amount of the penalty, the commission
692-25 shall consider:
692-26 (1) the seriousness of the violation, including the
692-27 nature, circumstances, extent, and gravity of the prohibited act
693-1 and the hazard or potential hazard created to the health, safety,
693-2 or economic welfare of the public;
693-3 (2) the economic harm to property or the environment
693-4 caused by the violation;
693-5 (3) the history of previous violations;
693-6 (4) the amount necessary to deter future violations;
693-7 (5) efforts to correct the violation; and
693-8 (6) any other matter that justice may require.
693-9 (V.A.C.S. Art. 6053-3, Secs. 9(a), (b), (c), (d).)
693-10 Sec. 91.262. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
693-11 (a) An administrative penalty may be assessed only after the
693-12 person charged under Section 91.261 has been given an opportunity
693-13 for a public hearing. If a public hearing is held, the commission
693-14 shall make findings of fact and issue a written decision as to the
693-15 occurrence of the violation and the penalty amount warranted by the
693-16 violation, incorporating, if appropriate, an order requiring that
693-17 the penalty be paid. If appropriate, the commission shall
693-18 consolidate the hearing with other proceedings.
693-19 (b) If a person charged under Section 91.261 fails to take
693-20 advantage of the opportunity for a public hearing, a penalty may be
693-21 assessed by the commission after it has determined that a violation
693-22 occurred and the penalty amount warranted by the violation. The
693-23 commission shall then issue an order requiring the penalty to be
693-24 paid.
693-25 (c) The commission shall give notice of the commission's
693-26 order to the person charged with the violation as provided by
693-27 Chapter 2001, Government Code. The notice must include a statement
694-1 of the right of the person to judicial review of the order.
694-2 (V.A.C.S. Art. 6053-3, Secs. 9(e), (f), (g), (h), (i), (j).)
694-3 Sec. 91.263. PAYMENT OF ADMINISTRATIVE PENALTY. (a) Not
694-4 later than the 30th day after the date on which the commission's
694-5 order imposing an administrative penalty becomes final as provided
694-6 by Section 2001.144, Government Code, the person charged with the
694-7 violation shall:
694-8 (1) pay the amount of the penalty;
694-9 (2) pay the amount of the penalty and file a petition
694-10 for judicial review contesting:
694-11 (A) the amount of the penalty;
694-12 (B) the fact of the violation; or
694-13 (C) both the amount of the penalty and the fact
694-14 of the violation; or
694-15 (3) without paying the amount of the penalty, file a
694-16 petition for judicial review contesting:
694-17 (A) the amount of the penalty;
694-18 (B) the fact of the violation; or
694-19 (C) both the amount of the penalty and the fact
694-20 of the violation.
694-21 (b) Within the 30-day period, a person who acts under
694-22 Subsection (a)(3) may:
694-23 (1) stay the enforcement of the penalty by:
694-24 (A) paying the amount of the penalty to the
694-25 court for placement in an escrow account; or
694-26 (B) giving to the court a supersedeas bond in a
694-27 form approved by the court that is effective until all judicial
695-1 review of the order or decision is final; or
695-2 (2) request the court to stay enforcement of the
695-3 penalty by:
695-4 (A) filing with the court a sworn affidavit
695-5 stating that the person is financially unable to pay the amount of
695-6 the penalty and is financially unable to give the supersedeas bond;
695-7 and
695-8 (B) delivering a copy of the affidavit to the
695-9 commission.
695-10 (c) If the commission receives a copy of an affidavit under
695-11 Subsection (b), the commission may file a contest to the affidavit
695-12 with the court not later than the fifth day after the date the copy
695-13 is received. The court shall hold a hearing on the facts alleged
695-14 in the affidavit as soon as practicable. The person who files an
695-15 affidavit has the burden of proving that the person is financially
695-16 unable to pay the amount of the penalty and to give a supersedeas
695-17 bond.
695-18 (d) If the person does not pay the amount of the penalty and
695-19 the penalty is not stayed, the commission may refer the matter to
695-20 the attorney general for enforcement. (V.A.C.S. Art. 6053-3, Secs.
695-21 9(k), (l), (m), (n).)
695-22 Sec. 91.264. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY. (a)
695-23 Judicial review of a commission order imposing an administrative
695-24 penalty is:
695-25 (1) instituted by filing a petition as provided by
695-26 Subchapter G, Chapter 2001, Government Code; and
695-27 (2) under the substantial evidence rule.
696-1 (b) If the person paid the amount of the penalty and that
696-2 amount is reduced or is not assessed by the court, the court shall
696-3 order that the appropriate amount plus accrued interest be remitted
696-4 to the person. The rate of interest is the rate charged on loans
696-5 to depository institutions by the New York Federal Reserve Bank and
696-6 shall be paid for the period beginning on the date the penalty is
696-7 paid and ending on the date the penalty is remitted. If the person
696-8 gave a supersedeas bond, the court shall order the release of the
696-9 bond:
696-10 (1) without further action by the person if the
696-11 penalty is not assessed by the court; or
696-12 (2) on payment of the penalty in the amount determined
696-13 by the court.
696-14 (c) A penalty collected under this section shall be
696-15 deposited to the credit of the oil-field cleanup fund account.
696-16 (V.A.C.S. Art. 6053-3, Secs. 9(o), (p), (q).)
696-17 SECTION 6. CONFORMING AMENDMENT. Chapter 111, Natural
696-18 Resources Code, is amended by adding Subchapter J to read as
696-19 follows:
696-20 SUBCHAPTER J. WELL WASTEWATER CORPORATION
696-21 Sec. 111.401. DEFINITION. In this subchapter, "well
696-22 wastewater" means water containing salt or other substances
696-23 produced during drilling or operating oil and other types of wells.
696-24 (V.A.C.S. Art. 1508 (part); New.)
696-25 Sec. 111.402. CREATION OF WELL WASTEWATER CORPORATION. A
696-26 well wastewater corporation may be created to gather, store, and
696-27 impound well wastewater and to prevent the flow of the well
697-1 wastewater into a stream when the stream may be used for
697-2 irrigation. (V.A.C.S. Art. 1508 (part).)
697-3 Sec. 111.403. CORPORATION POWERS. In addition to the
697-4 general powers conferred to a private corporation, a well
697-5 wastewater corporation may acquire, own, and operate a ditch,
697-6 canal, pipeline, levee, or reservoir, and an associated appliance
697-7 as appropriate to gather, impound, or store well wastewater and to
697-8 protect a reservoir from inflow or damage by surface water.
697-9 (V.A.C.S. Art. 1509.)
697-10 Sec. 111.404. CONDEMNATION. (a) A well wastewater
697-11 corporation may condemn land or a property right necessary for a
697-12 purpose of the corporation.
697-13 (b) A well wastewater corporation's ditch, canal, or
697-14 pipeline may cross under a highway, canal, pipeline, railroad, or
697-15 tram or logging road if the use of the highway, canal, pipeline,
697-16 railroad, or tram or logging road is not impaired except for the
697-17 time necessary to construct the crossing.
697-18 (c) Without the consent of the appropriate authority, a well
697-19 wastewater corporation's ditch, canal, or pipeline may not:
697-20 (1) pass through a cemetery;
697-21 (2) pass under a residence or public building; or
697-22 (3) cross a street or alley of a municipality.
697-23 (V.A.C.S. Art. 1510.)
697-24 Sec. 111.405. SERVICE TO WELL WASTEWATER PRODUCERS. (a) A
697-25 well wastewater corporation shall serve all well wastewater
697-26 producers in the area in which the corporation operates to the
697-27 extent the corporation has adequate facilities to gather, impound,
698-1 and store well wastewater.
698-2 (b) A well wastewater corporation:
698-3 (1) shall serve a well wastewater producer in
698-4 proportion to the needs of all of the producers in the area;
698-5 (2) shall charge a fair and reasonable fee for its
698-6 services; and
698-7 (3) may not discriminate between different producers
698-8 under similar conditions. (V.A.C.S. Art. 1511.)
698-9 Sec. 111.406. OWNERSHIP OF STOCK. A corporation interested
698-10 in the proper disposition of well wastewater may purchase, own, or
698-11 vote stock in a well wastewater corporation. (V.A.C.S.
698-12 Art. 1512.)
698-13 SECTION 7. CONFORMING AMENDMENT. Subtitle D, Title 3,
698-14 Natural Resources Code, is amended by adding Chapter 115 to read as
698-15 follows:
698-16 CHAPTER 115. REGULATION OF CERTAIN TRANSPORTERS
698-17 OF OIL OR PETROLEUM PRODUCTS
698-18 SUBCHAPTER A. GENERAL PROVISIONS
698-19 Sec. 115.001. DEFINITIONS. In this chapter:
698-20 (1) "Commission" means the Railroad Commission of
698-21 Texas.
698-22 (2) "Commission order" includes a rule or order
698-23 adopted by the commission under the oil and gas conservation
698-24 statutes of this state, including this title and Subtitle B, Title
698-25 3, Utilities Code.
698-26 (3) "Gas" includes natural gas, bradenhead gas,
698-27 casinghead gas, or gas produced from an oil or gas well.
699-1 (4) "Manifest" includes a document issued by a shipper
699-2 that covers oil or a petroleum product transported by motor
699-3 vehicle.
699-4 (5) "Oil" includes crude petroleum oil:
699-5 (A) in its natural state as produced; or
699-6 (B) from which only the basic sediment and water
699-7 have been removed.
699-8 (6) "Person" includes an individual, corporation,
699-9 association, partnership, receiver, trustee, guardian, executor,
699-10 administrator, or representative.
699-11 (7) "Petroleum product" includes:
699-12 (A) refined crude oil;
699-13 (B) crude tops;
699-14 (C) topped crude;
699-15 (D) processed crude petroleum;
699-16 (E) residue from crude petroleum;
699-17 (F) cracking stock;
699-18 (G) uncracked fuel oil;
699-19 (H) fuel oil;
699-20 (I) treated crude oil;
699-21 (J) residuum;
699-22 (K) gas oil;
699-23 (L) casinghead gasoline;
699-24 (M) natural gas gasoline;
699-25 (N) naphtha;
699-26 (O) distillate;
699-27 (P) gasoline;
700-1 (Q) kerosene;
700-2 (R) benzine;
700-3 (S) wash oil;
700-4 (T) waste oil;
700-5 (U) blended gasoline;
700-6 (V) lubricating oil;
700-7 (W) blends or mixtures of petroleum; or
700-8 (X) any other liquid petroleum product or
700-9 byproduct derived from crude petroleum oil or gas.
700-10 (8) "Shipping papers" includes:
700-11 (A) a bill of lading that covers oil or a
700-12 petroleum product transported by railway;
700-13 (B) a manifest; or
700-14 (C) a document that covers oil or a petroleum
700-15 product transported by pipeline, boat, or barge.
700-16 (9) "Tender" means a permit or certificate of
700-17 clearance for the transportation of oil or a petroleum product that
700-18 is approved and issued or registered under the authority of the
700-19 commission.
700-20 (10) "Unlawful gas" includes gas produced or
700-21 transported in violation of a law of this state or commission
700-22 order.
700-23 (11) "Unlawful petroleum product" includes a petroleum
700-24 product:
700-25 (A) any part of which was processed or derived
700-26 in whole or in part from:
700-27 (i) unlawful oil;
701-1 (ii) a product of unlawful oil; or
701-2 (iii) unlawful gas; or
701-3 (B) transported in violation of a law of this
701-4 state or commission order. (V.A.C.S. Art. 6066a, Secs. 1(a), (b),
701-5 (c), (e), (f), (g) (part), (h) (part), (i), (j) (part), 2(b)
701-6 (part).)
701-7 Sec. 115.002. EXCEPTION. This chapter does not apply to the
701-8 retail purchase of a petroleum product if that product is:
701-9 (1) contained in the ordinary equipment of a motor
701-10 vehicle; and
701-11 (2) used only to operate the motor vehicle in which it
701-12 is contained. (V.A.C.S. Art. 6066a, Sec. 13.)
701-13 Sec. 115.003. DEFINITION OF UNLAWFUL OIL; PRESUMPTION. (a)
701-14 For purposes of this chapter, oil is unlawful if the oil is:
701-15 (1) produced in this state from a well in excess of
701-16 the amount allowed by a commission order or otherwise in violation
701-17 of a law of this state or commission order; or
701-18 (2) transported in violation of a law of this state or
701-19 commission order.
701-20 (b) It is presumed that oil is "unlawful oil" for purposes
701-21 of this chapter if the oil is retained in storage for more than six
701-22 years without being used, consumed, or moved into regular
701-23 commercial channels.
701-24 (c) The presumption under Subsection (b) may be rebutted by
701-25 proof that the oil:
701-26 (1) was produced from a well within the production
701-27 allowable then applying to that well;
702-1 (2) was not produced in violation of a law of this
702-2 state or commission order; and
702-3 (3) if transported from the lease from which it was
702-4 produced, was not transported in violation of a law of this state
702-5 or commission order. (V.A.C.S. Art. 6066a, Secs. 1(d), 2(b)
702-6 (part).)
702-7 (Sections 115.004-115.010 reserved for expansion
702-8 SUBCHAPTER B. TENDERS AND MANIFESTS
702-9 Sec. 115.011. TENDER REQUIREMENTS. The commission by order
702-10 may require that a tender be obtained before oil or a petroleum
702-11 product may be transported or received for transportation by
702-12 pipeline, railway, boat, or barge. (V.A.C.S. Art. 6066a, Sec. 2(a)
702-13 (part), Sec. 4(c) (part).)
702-14 Sec. 115.012. TENDER; APPLICATION REQUIREMENTS. (a) The
702-15 commission by order shall prescribe the form of a tender and a
702-16 tender application.
702-17 (b) The form must show:
702-18 (1) the name and address of the shipper or other
702-19 person who tenders oil or a petroleum product for transportation;
702-20 (2) the name and address of the transporter if the
702-21 commission order requires the transporter to be designated;
702-22 (3) the quantity and classification of each commodity
702-23 authorized to be transported;
702-24 (4) each location at which delivery is to be made to
702-25 the transporter; and
702-26 (5) other related information as prescribed by
702-27 commission order.
703-1 (c) Each tender must:
703-2 (1) bear a date and serial number;
703-3 (2) state the expiration date of the tender; and
703-4 (3) be executed by an agent authorized by the
703-5 commission to deny, approve, or register tenders.
703-6 (d) An agent may not approve or register a tender for the
703-7 transportation of unlawful oil or an unlawful petroleum product.
703-8 (V.A.C.S. Art. 6066a, Sec. 1(g) (part).)
703-9 Sec. 115.013. ACTION ON TENDER APPLICATION. (a) If an
703-10 agent of the commission rejects an application for a tender, the
703-11 agent shall return a copy of the application to the applicant with
703-12 the reasons for the rejection indicated on the copy.
703-13 (b) A person whose tender application is not acted on before
703-14 the 21st day after the date on which the application is filed is
703-15 entitled to judicial review in the manner provided by Section
703-16 115.014 for the appeal of a rejection of a tender application.
703-17 (V.A.C.S. Art. 6066a, Sec. 9 (part).)
703-18 Sec. 115.014. JUDICIAL REVIEW. (a) A person whose tender
703-19 application is rejected may appeal that action by filing a petition
703-20 against the commission in a district court of Travis County for
703-21 review of the agent's decision.
703-22 (b) The clerk of the court shall issue to the commission a
703-23 notice setting forth briefly the cause of action stated in the
703-24 petition. The court may not enter an order on the petition until
703-25 the court conducts a hearing. The court must conduct the hearing
703-26 not later than the fifth day after the date of issuance of the
703-27 notice.
704-1 (c) The court may sustain, modify, or overrule the agent's
704-2 decision and may issue a restraining order or injunction as
704-3 warranted by the facts.
704-4 (d) A person dissatisfied with the decision of the district
704-5 court may appeal to the court of appeals. (V.A.C.S. Art. 6066a,
704-6 Sec. 9 (part).)
704-7 Sec. 115.015. TRANSFER UNDER TENDER. (a) A person who
704-8 obtains a tender may not transport or deliver, or cause or permit
704-9 to be transported or delivered, any more or any different commodity
704-10 than that authorized by the tender.
704-11 (b) A connecting carrier or consignee who receives oil or a
704-12 petroleum product from another transporter by pipeline, railway,
704-13 boat, or barge under authority of shipping papers executed by the
704-14 initial transporter that bear the date and serial number of a
704-15 tender issued to that initial transporter is considered to receive
704-16 the oil or petroleum product by authority of that tender if the
704-17 commission order provides that a connecting carrier or consignee
704-18 may rely on the shipping papers. (V.A.C.S. Art. 6066a, Secs. 2(a)
704-19 (part), 4(c) (part).)
704-20 Sec. 115.016. ISSUANCE OF MANIFEST. (a) A person who
704-21 obtains a tender required under this subchapter shall sign and
704-22 issue a manifest to the operator of each motor vehicle used to
704-23 transport the oil or petroleum product that is covered by the
704-24 tender.
704-25 (b) The person shall issue a separate manifest for each load
704-26 carried by the motor vehicle. (V.A.C.S. Art. 6066a, Sec. 2(a)
704-27 (part).)
705-1 Sec. 115.017. FORM OF MANIFEST. (a) The commission by
705-2 order may prescribe the form of a manifest.
705-3 (b) A manifest must:
705-4 (1) bear a certificate signed by the shipper that
705-5 states the amount of oil or petroleum products to be transported
705-6 and specifies each petroleum product to be transported; and
705-7 (2) include, if required by commission order:
705-8 (A) the date and serial number of the tender
705-9 that authorizes the transportation or a seal, number, or other
705-10 evidence of the tender, if a tender is required;
705-11 (B) the amount and classification of each
705-12 petroleum product to be transported;
705-13 (C) the name and address of the transporter, the
705-14 name and address of the shipper, and the name and address of the
705-15 consignee, if known;
705-16 (D) the name and address of the operator of the
705-17 motor vehicle;
705-18 (E) the license plate number of the motor
705-19 vehicle;
705-20 (F) the date, time, and place at which the motor
705-21 vehicle was loaded and the destination, if known, of the load; and
705-22 (G) other related information as required by
705-23 commission order.
705-24 (c) If the form of the manifest is not prescribed by
705-25 commission order, each shipper required to issue a manifest to a
705-26 transporter shall use a form of manifest that is:
705-27 (1) commonly used in commercial transactions; or
706-1 (2) required by another state agency to accompany the
706-2 movement of gasoline. (V.A.C.S. Art. 6066a, Secs. 1(h) (part),
706-3 2(a) (part).)
706-4 Sec. 115.018. TRANSFER UNDER MANIFEST; RESTRICTIONS. (a) A
706-5 person authorized to transport oil or a petroleum product on a
706-6 manifest issued by a shipper may not receive:
706-7 (1) a commodity for transportation that is different
706-8 from the commodity described in the manifest; or
706-9 (2) oil or a petroleum product in an amount exceeding
706-10 the amount authorized by the manifest.
706-11 (b) A person authorized to transport oil or a petroleum
706-12 product by a shipper-issued manifest that bears on its face the
706-13 date and serial number of the tender may rely on the manifest
706-14 delivered to that person and each consignee or person to whom the
706-15 transporter delivers oil or a petroleum product covered by that
706-16 manifest may rely on the manifest as authority to receive the
706-17 commodity delivered if the manifest:
706-18 (1) appears to be valid on its face;
706-19 (2) is signed by the shipper; and
706-20 (3) bears the certificate of the shipper that the
706-21 transportation of the oil or petroleum product is authorized by the
706-22 tender.
706-23 (c) If the commission by order prohibits the transportation
706-24 of oil or a petroleum product by motor vehicle without a manifest
706-25 that shows the date and serial number of a tender authorizing the
706-26 transportation, a person may not ship or transport or cause to be
706-27 shipped or transported by motor vehicle oil or a petroleum product
707-1 unless the person furnishes the manifest to the operator of the
707-2 motor vehicle. The person transporting the oil or petroleum
707-3 product shall maintain the manifest in the vehicle at all times
707-4 during the shipment. If the person to whom the tender is issued is
707-5 the operator of the motor vehicle and the tender identifies the
707-6 motor vehicle by license number and covers one load, the person may
707-7 carry the tender in the vehicle in lieu of a manifest. (V.A.C.S.
707-8 Art. 6066a, Secs. 2(a) (part), (b) (part).)
707-9 Sec. 115.019. RECEIPT REQUIRED. A person who transports oil
707-10 or a petroleum product by motor vehicle under conditions that
707-11 require a tender or manifest shall obtain a receipt from each
707-12 person to whom any part of the oil or petroleum product is
707-13 delivered. The receipt must be on the reverse side of the tender
707-14 or manifest and must indicate:
707-15 (1) the number of gallons of oil or of each petroleum
707-16 product delivered;
707-17 (2) the date of delivery; and
707-18 (3) the signature and address of the purchaser or
707-19 consignee of the oil or petroleum product. (V.A.C.S. Art. 6066a,
707-20 Sec. 2(c) (part).)
707-21 Sec. 115.020. RECORDS; INSPECTION. (a) A person who
707-22 transports by motor vehicle and delivers oil or a petroleum product
707-23 shall keep in this state for two years each tender or manifest
707-24 issued to the person, together with the receipts and endorsements
707-25 on the tender or manifest.
707-26 (b) A tender or manifest is at all times subject to
707-27 inspection by the commission or an agent or inspector of the
708-1 commission. (V.A.C.S. Art. 6066a, Sec. 2(c) (part).)
708-2 (Sections 115.021-115.030 reserved for expansion
708-3 SUBCHAPTER C. FORFEITURE OF UNLAWFUL OIL OR PETROLEUM PRODUCT
708-4 Sec. 115.031. FORFEITURE AUTHORIZED. Unlawful oil and
708-5 unlawful petroleum products, regardless of the date of production
708-6 or manufacture, are declared to be a nuisance and shall be
708-7 forfeited to this state as provided by this subchapter.
708-8 (V.A.C.S. Art. 6066a, Sec. 10(a) (part).)
708-9 Sec. 115.032. REPORT TO ATTORNEY GENERAL. On the discovery
708-10 of unlawful oil or an unlawful petroleum product, a member of the
708-11 commission, an agent or employee of the commission, or a peace
708-12 officer shall immediately file with the attorney general a report
708-13 that describes the unlawful oil or unlawful petroleum product. The
708-14 report must state the ownership, party in possession, amount,
708-15 location, and classification of the oil or petroleum product.
708-16 (V.A.C.S. Art. 6066a, Sec. 10(a) (part).)
708-17 Sec. 115.033. ACTION IN REM. (a) If the attorney general
708-18 is advised of the presence of unlawful oil or an unlawful petroleum
708-19 product, the attorney general shall bring an action in rem in the
708-20 name of the state in Travis County or in the county in which the
708-21 oil or petroleum product is located against the unlawful oil or
708-22 petroleum product and against each person who owns, claims, or is
708-23 in possession of the oil or petroleum product.
708-24 (b) If it appears to the court from an examination of the
708-25 petition or after hearing evidence on the petition at a preliminary
708-26 hearing that the unlawful oil or petroleum product mentioned in the
708-27 petition is in danger of being removed, wasted, lost, or destroyed,
709-1 the court shall:
709-2 (1) issue restraining orders or injunctive relief,
709-3 either mandatory or prohibitive;
709-4 (2) appoint a receiver to take charge of the oil or
709-5 petroleum product; or
709-6 (3) direct the sheriff of the county in which the
709-7 unlawful oil or petroleum product is located to seize and impound
709-8 the oil or petroleum product pending further orders of the court.
709-9 (c) A party to the action may demand a trial by jury on any
709-10 issue of fact raised by the pleadings, and the case shall proceed
709-11 to trial in the manner provided for other civil cases. (V.A.C.S.
709-12 Art. 6066a, Secs. 10(b), (c) (part).)
709-13 Sec. 115.034. FORFEITURE SALE. (a) If, on the trial of the
709-14 action, the oil or petroleum product in controversy is found to be
709-15 unlawful, the court shall render judgment forfeiting the oil or
709-16 petroleum product to this state. The court shall issue an order of
709-17 sale directing the sheriff or a constable of the county in which
709-18 the oil or petroleum product is located to seize and sell the oil
709-19 or petroleum product in the same manner as personal property is
709-20 sold under execution. The court may order the oil or petroleum
709-21 product sold in whole or in part.
709-22 (b) The sale shall be conducted at the courthouse door of
709-23 the county in which the oil or petroleum product is located.
709-24 (c) The court shall apply the money realized from the sale
709-25 first to the payment of the costs of the action and expenses
709-26 incident to the sale of the oil or petroleum product. The court
709-27 may then use not more than one-half of the money to compensate a
710-1 person for expenses incurred in storing the unlawful oil or
710-2 petroleum product. Any balance remaining shall be remitted to the
710-3 comptroller.
710-4 (d) The officers of the court shall receive the same fees
710-5 provided by law for other civil actions. The sheriff who executes
710-6 the sale shall issue a bill of sale or certificate to the purchaser
710-7 of the oil or petroleum product, and the commission, on
710-8 presentation of that certificate of clearance, shall issue a
710-9 tender, if a tender is required, permitting the purchaser of the
710-10 oil or petroleum product to move the oil or petroleum product into
710-11 commerce. (V.A.C.S. Art. 6066a, Secs. 10(c) (part), (d).)
710-12 (Sections 115.035-115.040 reserved for expansion
710-13 SUBCHAPTER D. ENFORCEMENT AND PENALTIES
710-14 Sec. 115.041. ENFORCEMENT; ARRESTS. (a) To enforce this
710-15 chapter, an agent of the commission or a peace officer of this
710-16 state who has probable cause and reasonable grounds to believe that
710-17 a motor vehicle is transporting unlawful oil or an unlawful
710-18 petroleum product may stop the vehicle to take samples of the cargo
710-19 and to inspect the shipping papers.
710-20 (b) If, on examination of the motor vehicle, the agent or
710-21 officer finds that the vehicle is transporting unlawful oil or an
710-22 unlawful petroleum product or is transporting oil or a petroleum
710-23 product without a required tender, the agent or officer, with or
710-24 without a warrant, shall arrest the operator of the vehicle and
710-25 file a complaint against the operator under this chapter.
710-26 (c) In a criminal action under this chapter, the agent or
710-27 officer is not entitled to a fee for executing a warrant of arrest
711-1 or capias or for making an arrest with or without a warrant.
711-2 (V.A.C.S. Art. 6066a, Sec. 3.)
711-3 Sec. 115.042. PUBLICATION OF COMMISSION ORDER PRIOR TO
711-4 ENFORCEMENT. A criminal action may not be maintained against a
711-5 person involving the violation of a rule or order that the
711-6 commission adopts, modifies, or amends until the commission
711-7 publishes a complete copy of the rule or order. (V.A.C.S.
711-8 Art. 6066a, Sec. 5 (part).)
711-9 Sec. 115.043. CERTIFICATE AS EVIDENCE. (a) A certificate
711-10 that sets forth the terms of a commission order and states that the
711-11 order has been adopted and published and was in effect on a
711-12 specified date or during a specified period is prima facie evidence
711-13 of those facts if the certificate is:
711-14 (1) made under the seal of the commission; and
711-15 (2) executed by a member or the secretary of the
711-16 commission.
711-17 (b) The certificate is admissible in evidence in any civil
711-18 or criminal action that involves the order without further proof of
711-19 the adoption, publication, or contents of the order. (V.A.C.S.
711-20 Art. 6066a, Sec. 6.)
711-21 Sec. 115.044. SERVICE OF PROCESS. (a) In an action or
711-22 proceeding that involves the enforcement of this chapter or a
711-23 commission order, a Texas Ranger or agent of the commission may
711-24 serve any judicial process, warrant, subpoena, or writ as directed
711-25 by the court issuing the process and shall serve the process in the
711-26 same manner as a peace officer.
711-27 (b) The ranger or agent may serve the process, warrant, or
712-1 subpoena anywhere in this state although it may be directed to the
712-2 sheriff or a constable of a particular county.
712-3 (c) The ranger or agent shall make the same return as any
712-4 other officer, sign the return, and add under the name the title
712-5 "State Ranger" or "Agent, Railroad Commission of Texas," as
712-6 appropriate, which is sufficient to make the writ valid if the writ
712-7 is otherwise properly prepared.
712-8 (d) A Texas Ranger or agent of the commission is not
712-9 entitled to a fee in addition to that person's regular compensation
712-10 for a service provided under this section. (V.A.C.S. Art. 6066a,
712-11 Sec. 7.)
712-12 Sec. 115.045. PLEADING; PROOF. (a) In a complaint,
712-13 information, or indictment that alleges a violation of a commission
712-14 order, it is unnecessary to set forth fully the terms of the order
712-15 and sufficient to allege the substance of the order or the
712-16 pertinent terms of the order that are alleged to have been
712-17 violated.
712-18 (b) In a criminal action filed under this chapter, a
712-19 certificate executed by a member or the secretary of the commission
712-20 that shows the amount of allowable oil that may be produced per day
712-21 or during a stated period from an oil well, proof of production
712-22 from which is involved in the criminal action, is admissible and is
712-23 prima facie evidence of the facts stated in the certificate.
712-24 (c) This section does not limit the power of the commission
712-25 to adopt rules or orders under the oil and gas conservation
712-26 statutes of this state, including this title and Subtitle B, Title
712-27 3, Utilities Code. (V.A.C.S. Art. 6066a, Secs. 8(a), (b), (d).)
713-1 Sec. 115.046. VENUE. A criminal action maintained under
713-2 this chapter must be brought in:
713-3 (1) the county in which the oil or petroleum product
713-4 involved in the criminal action is received or delivered; or
713-5 (2) any county in or through which that oil or
713-6 petroleum product is transported. (V.A.C.S. Art. 6066a, Sec.
713-7 8(c).)
713-8 Sec. 115.047. PENALTIES. (a) A person commits an offense
713-9 if the person is the operator of a motor vehicle that transports
713-10 oil or a petroleum product and the person:
713-11 (1) intentionally fails to stop the vehicle on the
713-12 command of an agent of the commission or peace officer; or
713-13 (2) intentionally fails to permit inspection by the
713-14 agent or officer of the contents of or the shipping papers
713-15 accompanying the vehicle.
713-16 (b) A person commits an offense if the person:
713-17 (1) knowingly violates Section 115.011, 115.015(a),
713-18 115.016, 115.018, 115.019, or 115.020;
713-19 (2) knowingly ships or transports or causes to be
713-20 shipped or transported unlawful oil or an unlawful petroleum
713-21 product by motor vehicle over a public highway in this state;
713-22 (3) knowingly ships or transports or causes to be
713-23 shipped or transported by motor vehicle oil or a petroleum product
713-24 without the authority of a tender if a tender is required by a
713-25 commission order; or
713-26 (4) if a tender is required by a commission order,
713-27 knowingly receives from a motor vehicle or knowingly delivers to a
714-1 motor vehicle oil or a petroleum product that is not covered by a
714-2 tender authorizing the transportation of the oil or petroleum
714-3 product.
714-4 (c) A person commits an offense if the person:
714-5 (1) knowingly ships or transports or causes or permits
714-6 to be shipped or transported by pipeline, railway, boat, or barge
714-7 unlawful oil or an unlawful petroleum product;
714-8 (2) knowingly receives or delivers for transportation
714-9 by pipeline, railway, boat, or barge unlawful oil or an unlawful
714-10 petroleum product;
714-11 (3) knowingly ships or transports or causes or permits
714-12 to be shipped or transported by pipeline, railway, boat, or barge
714-13 oil or a petroleum product without authority of a tender if a
714-14 tender is required by a commission order; or
714-15 (4) knowingly receives or delivers by pipeline,
714-16 railway, boat, or barge oil or a petroleum product without
714-17 authority of a tender if a tender is required by a commission
714-18 order.
714-19 (d) An offense under this section is punishable by a fine of
714-20 not less than $50 or more than $200. (V.A.C.S. Art. 6066a, Secs.
714-21 4(a), (b), (d).)
714-22 SECTION 8. CONFORMING AMENDMENT. Subchapter D, Chapter 54,
714-23 Water Code, is amended by adding Section 54.2051 to read as
714-24 follows:
714-25 Sec. 54.2051. SERVICE CONNECTIONS TO CERTAIN DWELLING UNITS.
714-26 (a) If the tenant of an individually metered dwelling unit applies
714-27 to a district for utility service for that unit, the district may
715-1 not require that the service be connected in the name of the
715-2 landlord or owner of the unit.
715-3 (b) This section does not apply to a dwelling unit that is
715-4 located in a building that:
715-5 (1) contains two or more dwelling units; and
715-6 (2) is served by a master meter or demand meter.
715-7 (c) In this section, "individually metered dwelling unit"
715-8 means one or more rooms:
715-9 (1) rented for use as a permanent residence under a
715-10 single verbal or written rental agreement; and
715-11 (2) served by a utility meter that belongs to the
715-12 district and measures service only for that unit. (V.A.C.S.
715-13 Art. 1446d-1.)
715-14 SECTION 9. REPEALER. The following Acts and articles as
715-15 compiled in Vernon's Texas Civil Statutes are repealed: 1120;
715-16 1123; 1124a; 1416; 1417; 1418; 1419; 1420; 1421; 1422; 1426; 1427;
715-17 1428; 1429; 1430; 1431; 1432; 1432a; 1432b; 1433; 1433a; 1434;
715-18 1434a; 1435; 1435a; 1435a-1; 1435b; 1436; 1436a; 1436b; 1437; 1438;
715-19 1439; 1440; 1440a; 1446a, Secs. 1, 3, 4, 6, 7, and 8; 1446b;
715-20 1446c-0; 1446c-1; 1446c-2; 1446d; 1446d-1; 1446d-2; 1446e; 1446f;
715-21 1446g; 1446h; 1508; 1509; 1510; 1511; 1512; 1528b; 1528c; 2372q-1;
715-22 6050; 6051; 6052; 6053; 6053-1; 6053-2; 6053-3; 6054; 6055; 6056;
715-23 6057; 6057a; 6057b; 6058; 6059; 6060; 6061; 6062; 6062A; 6063;
715-24 6064; 6065; 6066; 6066a; 6066f; 6066g; and 9021.
715-25 SECTION 10. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
715-26 This Act is enacted under Section 43, Article III, Texas
715-27 Constitution. This Act is intended as a recodification only, and
716-1 no substantive change in law is intended by this Act.
716-2 SECTION 11. EFFECTIVE DATE. This Act takes effect September
716-3 1, 1997.
716-4 SECTION 12. EMERGENCY. The importance of this legislation
716-5 and the crowded condition of the calendars in both houses create an
716-6 emergency and an imperative public necessity that the
716-7 constitutional rule requiring bills to be read on three several
716-8 days in each house be suspended, and this rule is hereby suspended.