UTILITIES CODE
CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND OTHER
REGULATORY AUTHORITIES
SUBCHAPTER A. GENERAL POWERS OF COMMISSION
§ 14.001. POWER TO REGULATE AND SUPERVISE. The
commission has the general power to regulate and supervise the
business of each public utility within its jurisdiction and to do
anything specifically designated or implied by this title that is
necessary and convenient to the exercise of that power and
jurisdiction.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.002. RULES. The commission shall adopt and enforce
rules reasonably required in the exercise of its powers and
jurisdiction.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.003. COMMISSION POWERS RELATING TO REPORTS. The
commission may:
(1) require a public utility to report to the
commission information relating to:
(A) the utility; and
(B) a transaction between the utility and an
affiliate inside or outside this state, to the extent that the
transaction is subject to the commission's jurisdiction;
(2) establish the form for a report;
(3) determine the time for a report and the frequency
with which the report is to be made;
(4) require that a report be made under oath;
(5) require the filing with the commission of a copy
of:
(A) a contract or arrangement between a public
utility and an affiliate;
(B) a report filed with a federal agency or a
governmental agency or body of another state; and
(C) an annual report that shows each payment of
compensation, other than salary or wages subject to federal income
tax withholding:
(i) to residents of this state;
(ii) with respect to legal, administrative,
or legislative matters in this state; or
(iii) for representation before the
legislature of this state or any governmental agency or body; and
(6) require that a contract or arrangement described
by Subdivision (5)(A) that is not in writing be reduced to writing
and filed with the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.004. REPORT OF SUBSTANTIAL INTEREST. The
commission may require disclosure of the identity and respective
interests of each owner of at least one percent of the voting
securities of a public utility or its affiliate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION
OF SERVICES TO ELDERLY AND DISABLED. The commission may establish
criteria and guidelines with the utility industry relating to
industry procedures used in terminating services to the elderly and
disabled.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF
EMPLOYMENT; PRESUMPTION OF REASONABLENESS. The commission may
not interfere with employee wages and benefits, working conditions,
or other terms or conditions of employment that are the product of a
collective bargaining agreement recognized under federal law. An
employee wage rate or benefit that is the product of the collective
bargaining is presumed to be reasonable.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.007. ASSISTANCE TO MUNICIPALITY. On request by the
governing body of a municipality, the commission may provide
commission employees as necessary to advise and consult with the
municipality on a pending matter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.008. MUNICIPAL FRANCHISES. (a) This title does
not restrict the rights and powers of a municipality to grant or
refuse a franchise to use the streets and alleys in the municipality
or to make a statutory charge for that use.
(b) A franchise agreement may not limit or interfere with a
power conferred on the commission by this title.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. PRACTICE AND PROCEDURE
§ 14.051. PROCEDURAL POWERS. The commission may:
(1) call and hold a hearing;
(2) administer an oath;
(3) receive evidence at a hearing;
(4) issue a subpoena to compel the attendance of a
witness or the production of a document; and
(5) make findings of fact and decisions to administer
this title or a rule, order, or other action of the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.052. RULES. (a) The commission shall adopt and
enforce rules governing practice and procedure before the
commission and, as applicable, practice and procedure before the
utility division of the State Office of Administrative Hearings.
(b) The commission shall adopt rules that authorize an
administrative law judge to:
(1) limit the amount of time that a party may have to
present its case;
(2) limit the number of requests for information that
a party may make in a contested case;
(3) require a party to a contested case to identify
contested issues and facts before the hearing begins;
(4) limit cross-examination to only those issues and
facts identified before the hearing and to any new issues that may
arise as a result of the discovery process; and
(5) group parties, other than the office, that have
the same position on an issue to facilitate cross-examination on
that issue.
(c) A rule adopted under Subsection (b)(5) must permit each
party in a group to present that party's witnesses for
cross-examination during the hearing.
(d) A rule adopted under this section must ensure that each
party receives due process.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.053. POWERS AND DUTIES OF STATE OFFICE OF
ADMINISTRATIVE HEARINGS. (a) The utility division of the State
Office of Administrative Hearings shall conduct each hearing in a
contested case that is not conducted by one or more commissioners.
(b) The commission may delegate to the utility division of
the State Office of Administrative Hearings the authority to make a
final decision and to issue findings of fact, conclusions of law,
and other necessary orders in a proceeding in which there is not a
contested issue of fact or law.
(c) The commission by rule shall define the procedures by
which it delegates final decision-making authority under
Subsection (b).
(d) For review purposes an administrative law judge's final
decision under Subsection (b) has the same effect as a final
decision of the commission unless a commissioner requests formal
review of the decision.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.054. SETTLEMENTS. (a) The commission by rule
shall adopt procedures governing the use of settlements to resolve
contested cases.
(b) Rules adopted under this section must ensure that:
(1) each party retains the right to:
(A) a full hearing before the commission on
issues that remain in dispute; and
(B) judicial review of issues that remain in
dispute;
(2) an issue of fact raised by a nonsettling party may
not be waived by a settlement or stipulation of the other parties;
and
(3) a nonsettling party may use an issue of fact raised
by that party as the basis for judicial review.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.055. RECORD OF PROCEEDINGS. The regulatory
authority shall keep a record of each proceeding before the
authority.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.056. RIGHT TO BE HEARD. Each party to a proceeding
before a regulatory authority is entitled to be heard by attorney or
in person.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND
EXHIBITS; PUBLIC RECORDS. (a) A commission order must be in
writing and contain detailed findings of the facts on which it is
passed.
(b) The commission shall retain a copy of the transcript and
the exhibits in any matter in which the commission issues an order.
(c) Subject to Chapter 552, Government Code, each file
pertaining to a matter that was at any time pending before the
commission or to a record, report, or inspection required by
Section 14.003, 14.151, 14.152, 14.153, 14.201, or 14.203-14.207 or
by Subtitle B or C is public information.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.058. FEES FOR ELECTRONIC ACCESS TO
INFORMATION. The fees charged by the commission for electronic
access to information that is stored in the system established by
the commission using funds from the Texas Public Finance Authority
and approved by the Department of Information Resources shall be
established:
(1) by the commission in consultation with the General
Services Commission; and
(2) in an amount reasonable and necessary to retire
the debt to the Texas Public Finance Authority associated with
establishing the electronic access system.
Added by Acts 1999, 76th Leg., ch. 62, § 18.01(a), eff. Sept. 1,
1999.
SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS
§ 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION
CONSIDERATION. (a) Unless a public utility reports the
transaction to the commission within a reasonable time, the public
utility may not:
(1) sell, acquire, or lease a plant as an operating
unit or system in this state for a total consideration of more than
$100,000; or
(2) merge or consolidate with another public utility
operating in this state.
(b) A public utility shall report to the commission within a
reasonable time each transaction that involves the sale of at least
50 percent of the stock of the utility. On the filing of a report
with the commission, the commission shall investigate the
transaction, with or without a public hearing, to determine whether
the action is consistent with the public interest. In reaching its
determination, the commission shall consider:
(1) the reasonable value of the property, facilities,
or securities to be acquired, disposed of, merged, transferred, or
consolidated;
(2) whether the transaction will:
(A) adversely affect the health or safety of
customers or employees;
(B) result in the transfer of jobs of citizens of
this state to workers domiciled outside this state; or
(C) result in the decline of service;
(3) whether the public utility will receive
consideration equal to the reasonable value of the assets when it
sells, leases, or transfers assets; and
(4) whether the transaction is consistent with the
public interest.
(c) If the commission finds that a transaction is not in the
public interest, the commission shall take the effect of the
transaction into consideration in ratemaking proceedings and
disallow the effect of the transaction if the transaction will
unreasonably affect rates or service.
(d) This section does not apply to:
(1) the purchase of a unit of property for
replacement;
(2) an addition to the facilities of a public utility
by construction; or
(3) transactions that facilitate unbundling, asset
valuation, minimization of ownership or control of generation
assets, or other purposes consistent with Chapter 39.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts1999, 76th Leg., ch. 405, § 9, eff. Sept. 1, 1999.
§ 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC
UTILITY. A public utility may not purchase voting stock in another
public utility doing business in this state unless the utility
reports the purchase to the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.103. REPORT OF LOAN TO STOCKHOLDERS. A public
utility may not loan money, stocks, bonds, notes, or other evidence
of indebtedness to a person who directly or indirectly owns or holds
any stock of the public utility unless the public utility reports
the transaction to the commission within a reasonable time.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. RECORDS
§ 14.151. RECORDS OF PUBLIC UTILITY. (a) Each public
utility shall keep and provide to the regulatory authority, in the
manner and form prescribed by the commission, uniform accounts of
all business transacted by the utility.
(b) The commission may prescribe the form of books,
accounts, records, and memoranda to be kept by a public utility,
including:
(1) the books, accounts, records, and memoranda of:
(A) the provision of and capacity for service;
and
(B) the receipt and expenditure of money; and
(2) any other form, record, and memorandum that the
commission considers necessary to carry out this title.
(c) For a public utility subject to regulation by a federal
regulatory agency, compliance with the system of accounts
prescribed for the particular class of utilities by the federal
agency may be considered sufficient compliance with the system
prescribed by the commission. The commission may prescribe the
form of books, accounts, records, and memoranda covering
information in addition to that required by the federal agency. The
system of accounts and the form of books, accounts, records, and
memoranda prescribed by the commission for a public utility or
class of utilities may not be inconsistent with the systems and
forms established by a federal agency for that public utility or
class of utilities.
(d) Each public utility shall:
(1) keep and provide its books, accounts, records, and
memoranda accurately in the manner and form prescribed by the
commission; and
(2) comply with the directions of the regulatory
authority relating to the books, accounts, records, and memoranda.
(e) In this section, "public utility" includes a
municipally owned utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS
STATE. (a) Each public utility shall maintain an office in this
state in a county in which some part of the utility's property is
located. The utility shall keep in this office all books, accounts,
records, and memoranda required by the commission to be kept in this
state.
(b) A book, account, record, or memorandum required by the
regulatory authority to be kept in this state may not be removed
from this state, except as:
(1) provided by Section 52.255; and
(2) prescribed by the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.153. COMMUNICATIONS WITH REGULATORY
AUTHORITY. (a) The regulatory authority shall adopt rules
governing communications with the regulatory authority or a member
or employee of the regulatory authority by:
(1) a public utility;
(2) an affiliate; or
(3) a representative of a public utility or affiliate.
(b) A record of a communication must contain:
(1) the name of the person contacting the regulatory
authority or member or employee of the regulatory authority;
(2) the name of the business entity represented;
(3) a brief description of the subject matter of the
communication; and
(4) the action, if any, requested by the public
utility, affiliate, or representative.
(c) Records compiled under Subsection (b) shall be
available to the public monthly.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.154. JURISDICTION OVER AFFILIATE. (a) The
commission has jurisdiction over an affiliate that has a
transaction with a public utility under the commission's
jurisdiction to the extent of access to a record of the affiliate
relating to the transaction, including a record of joint or general
expenses, any portion of which may be applicable to the
transaction.
(b) A record obtained by the commission relating to sale of
electrical energy at wholesale by an affiliate to the public
utility is confidential and is not subject to disclosure under
Chapter 552, Government Code.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER E. AUDITS AND INSPECTIONS
§ 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A
regulatory authority may inquire into the management and affairs of
each public utility and shall keep itself informed as to the manner
and method in which each public utility is managed and its affairs
are conducted.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.202. MANAGEMENT AUDITS BY COMMISSION. (a) The
commission shall:
(1) inquire into the management of the business of
each public utility under its jurisdiction;
(2) keep itself informed as to the manner and method in
which the utility's business is managed; and
(3) obtain from the public utility any information
necessary to enable the commission to perform a management audit.
(b) The commission may audit a utility under its
jurisdiction as frequently as needed. Six months after an audit,
the utility shall report to the commission on the status of the
implementation of the recommendations of the audit and shall file
subsequent reports at times the commission considers appropriate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.203. AUDIT OF ACCOUNTS. A regulatory authority may
require the examination and audit of the accounts of a public or
municipally owned utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.204. INSPECTION. (a) A regulatory authority and,
to the extent authorized by the regulatory authority, its counsel,
agent, or employee, may:
(1) inspect and obtain copies of the papers, books,
accounts, documents, and other business records of a public utility
within its jurisdiction; and
(2) inspect the plant, equipment, and other property
of a public utility within its jurisdiction.
(b) An action under this section must be conducted at a
reasonable time for a reasonable purpose.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.205. EXAMINATIONS UNDER OATH. In connection with
an action taken under Section 14.204, the regulatory authority may:
(1) examine under oath an officer, agent, or employee
of a public utility; or
(2) authorize the person conducting the action to make
the examination under oath.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.206. ENTERING PREMISES OF PUBLIC UTILITY. (a) A
member, agent, or employee of a regulatory authority may enter the
premises occupied by a public utility to conduct an inspection,
examination, or test or to exercise any other authority provided by
this title.
(b) A member, agent, or employee of the regulatory authority
may act under this section only during reasonable hours and after
reasonable notice to the public utility.
(c) A public utility is entitled to be represented when an
inspection, examination, or test is conducted on its premises. The
utility is entitled to a reasonable time to secure a representative
before the inspection, examination, or test begins.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 14.207. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A
regulatory authority may require, by order or subpoena served on a
public utility, the production, at the time and place in this state
that the regulatory authority designates, of any books, accounts,
papers, or records kept by that public utility outside this state
or, if ordered by the commission, verified copies of the books,
accounts, papers, or records.
(b) A public utility that fails or refuses to comply with an
order or subpoena under this section violates this title.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
