UTILITIES CODE
CHAPTER 52. COMMISSION JURISDICTION
SUBCHAPTER A. GENERAL POWERS AND DUTIES OF COMMISSION
§ 52.001. POLICY. (a) It is the policy of this state
to protect the public interest in having adequate and efficient
telecommunications service available to each resident of this state
at just, fair, and reasonable rates.
(b) The telecommunications industry, through technical
advancements, federal legislative, judicial, and administrative
actions, and the formulation of new telecommunications
enterprises, has become and will continue to be in many and growing
areas a competitive industry that does not lend itself to
traditional public utility regulatory rules, policies, and
principles. As a result, the public interest requires that rules,
policies, and principles be formulated and applied to:
(1) protect the public interest; and
(2) provide equal opportunity to each
telecommunications utility in a competitive marketplace.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.002. AUTHORITY TO REGULATE. (a) To carry out the
public policy stated by Section 52.001 and to regulate rates,
operations, and services so that the rates are just, fair, and
reasonable and the services are adequate and efficient, the
commission has exclusive original jurisdiction over the business
and property of a telecommunications utility in this state subject
to the limitations imposed by this title.
(b) The commission's regulatory authority as to a
telecommunications utility other than a public utility is only as
prescribed by this title.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.003. COOPERATION WITH OTHER REGULATORY
AUTHORITIES. In regulating the rates, operations, and services of
a telecommunications utility providing service in a municipality
located on the state line adjacent to a municipality in an adjoining
state, the commission may cooperate with the utility regulatory
commission of the adjoining state or of the federal government and
may hold a joint hearing or make a joint investigation with that
commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.004. COMMISSION MAY ESTABLISH SEPARATE
MARKETS. (a) The commission may establish separate
telecommunications markets in this state if the commission
determines that the public interest will be served. The commission
shall hold hearings and require evidence as necessary to:
(1) carry out the public purpose of this chapter; and
(2) determine the need and effect of establishing
separate markets.
(b) A provider determined to be a dominant carrier as to a
particular telecommunications service in a market may not be
presumed to be a dominant carrier of a different telecommunications
service in that market.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.005. MINIMUM REQUIREMENTS FOR DOMINANT
CARRIERS. The commission shall impose as minimum requirements for
a dominant carrier the same requirements imposed by Subchapter C,
except Section 52.107.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.006. COMMISSION TO REPORT TO
LEGISLATURE. (a) Before January 15 of each odd-numbered year,
the commission shall report to the legislature on:
(1) the scope of competition in regulated
telecommunications markets; and
(2) the effect of competition on customers in both
competitive and noncompetitive markets, with a specific focus on
rural markets.
(b) The report shall include:
(1) an assessment of the effect of competition on the
rates and availability of telecommunications services for
residential and business customers;
(2) a summary of commission action over the preceding
two years that reflects changes in the scope of competition in
regulated telecommunications markets; and
(3) recommendations for legislation the commission
determines is appropriate to promote the public interest in the
context of a partially competitive telecommunications market.
(c) The commission, in its assessment under Subsection
(b)(1), shall specifically address any effects on universal
service.
(d) A telecommunications utility shall cooperate with the
commission as necessary for the commission to satisfy the
requirements of this section.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. INCUMBENT LOCAL EXCHANGE COMPANIES
§ 52.051. POLICY. In adopting rules and establishing
procedures under this subchapter, the commission shall:
(1) attempt to balance the public interest in a
technologically advanced telecommunications system providing a
wide range of new and innovative services with traditional
regulatory concerns for:
(A) preserving universal service;
(B) prohibiting anticompetitive practices; and
(C) preventing the subsidization of competitive
services with revenues from regulated monopoly services; and
(2) incorporate an appropriate mix of regulatory and
market mechanisms reflecting the level and nature of competition in
the marketplace.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.052. APPLICABILITY. This subchapter does not
apply to basic local telecommunications service, including local
measured service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.053. CERTAIN RATES PROHIBITED. A rate established
under this subchapter may not be:
(1) unreasonably preferential, prejudicial, or
discriminatory;
(2) subsidized either directly or indirectly by a
regulated monopoly service; or
(3) predatory or anticompetitive.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.054. RULES AND PROCEDURES FOR INCUMBENT LOCAL
EXCHANGE COMPANIES. (a) To carry out the public policy stated in
Section 52.001, notwithstanding any other provision of this title,
the commission may adopt rules and establish procedures applicable
to incumbent local exchange companies to:
(1) determine the level of competition in a specific
telecommunications market or submarket; and
(2) provide appropriate regulatory treatment to allow
an incumbent local exchange company to respond to significant
competitive challenges.
(b) This section does not change the burden of proof on an
incumbent local exchange company under Sections 53.003, 53.006,
53.051, 53.052, 53.053, 53.054, 53.055, 53.057, 53.058, 53.060, and
53.062.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.055. HEARING TO DETERMINE LEVEL OF COMPETITION. In
determining the level of competition in a specific market or
submarket, the commission shall hold an evidentiary hearing to
consider:
(1) the number and size of telecommunications
utilities or other persons providing the same, equivalent, or
substitutable service;
(2) the extent to which the same, equivalent, or
substitutable service is available;
(3) the ability of a customer to obtain the same,
equivalent, or substitutable service at comparable rates and terms;
(4) the ability of a telecommunications utility or
other person to make the same, equivalent, or substitutable service
readily available at comparable rates and terms;
(5) the existence of a significant barrier to the
entry or exit of a provider of the service; and
(6) other relevant information the commission
determines is appropriate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.056. SPECIFICALLY AUTHORIZED REGULATORY
TREATMENTS. The regulatory treatments the commission may
implement under Section 52.054 include:
(1) approval of a range of rates for a specific
service;
(2) approval of a customer-specific contract for a
specific service; and
(3) the detariffing of rates.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.057. CUSTOMER-SPECIFIC CONTRACTS. (a) The
commission shall approve a customer-specific contract that meets
the requirements of Subsection (b) to provide:
(1) central office based PBX-type services for a
system of 200 stations or more;
(2) billing and collection services;
(3) high-speed private line services of 1.544 megabits
or greater; or
(4) customized services.
(b) The commission shall approve a contract for a service
described by Subsection (a) if:
(1) the contract is filed before the 30th day before
the date the service contracted for is initiated;
(2) the contract is accompanied by an affidavit from
the person or entity contracting for the service stating that the
person or entity considered acquiring the same, equivalent, or
substitutable service by bid or quotation from a source other than
the incumbent local exchange company;
(3) the incumbent local exchange company recovers the
appropriate costs of providing the service; and
(4) approval of the contract is in the public
interest.
(c) The commission shall approve or deny a contract under
this section not later than the 30th day after the date the contract
is filed, unless the commission for good cause extends the
effective date for an additional 35 days.
(d) An incumbent local exchange company may not price
similar services provided under contracts governed by this section
in an unreasonably discriminatory manner.
(e) This section and Section 52.056(2) do not apply to:
(1) message telecommunications service;
(2) switched access service for an interexchange
carrier; or
(3) wide area telecommunications service.
(f) In this section, "similar services" means services
that:
(1) are provided at or near the same point in time;
(2) have the same characteristics; and
(3) are provided under the same or similar
circumstances.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.058. GENERAL PROVISIONS RELATING TO NEW OR
EXPERIMENTAL SERVICES OR PROMOTIONAL RATES. (a) To encourage the
rapid introduction of new or experimental services or promotional
rates, the commission shall adopt rules and establish procedures
that allow:
(1) the expedited introduction of new or experimental
services or promotional rates;
(2) the establishment and adjustment of rates; and
(3) the withdrawal of those services or promotional
rates.
(b) The rules and procedures described by Subsection (a)
must include rules and procedures to allow the governing body of a
municipality served by an incumbent local exchange company having
more than 500,000 access lines in this state to make requests to the
commission for new or experimental services or promotional rates.
(c) A rate established or adjusted at the request of a
municipality may not:
(1) result in higher rates for ratepayers outside the
municipal boundaries; or
(2) include a rate for incumbent local exchange
company interexchange service or interexchange carrier access
service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts1999, 76th Leg., ch. 1212, § 7, eff. Sept. 1, 1999.
§ 52.0583. NEW SERVICES. (a) An incumbent local
exchange company may introduce a new service 10 days after
providing an informational notice to the commission, to the office,
and to any person who holds a certificate of operating authority in
the incumbent local exchange company's certificated area or areas
or who has an effective interconnection agreement with the
incumbent local exchange company.
(b) An incumbent local exchange company shall price each new
service at or above the service's long run incremental cost. The
commission shall allow a company serving fewer than one million
access lines in this state to establish a service's long run
incremental cost by adopting, at that company's option, the cost
studies of a larger company for that service that have been accepted
by the commission.
(c) An affected person, the office on behalf of residential
or small commercial customers, or the commission may file a
complaint at the commission challenging whether the pricing by an
incumbent local exchange company of a new service is in compliance
with Subsection (b).
(d) If a complaint is filed under Subsection (c), the
incumbent local exchange company has the burden of proving that the
company set the price for the new service in accordance with the
applicable provisions of this subchapter. If the complaint is
finally resolved in favor of the complainant, the company:
(1) shall, not later than the 10th day after the date
the complaint is finally resolved, amend the price of the service as
necessary to comply with the final resolution; or
(2) may, at the company's option, discontinue the
service.
(e) A company electing incentive regulation under Chapter
58 or 59 may introduce new services only in accordance with the
applicable provisions of Chapter 58 or 59.
Added by Acts 1999, 76th Leg., ch. 1212, § 8, eff. Sept. 1, 1999.
§ 52.0584. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
PROMOTIONAL OFFERINGS. (a) Notwithstanding any other provision
of this title, an incumbent local exchange company may exercise
pricing flexibility in accordance with this section, including the
packaging of any regulated service such as basic local
telecommunications service with any other regulated or unregulated
service or any service of an affiliate. The company may exercise
pricing flexibility 10 days after providing an informational notice
to the commission, to the office, and to any person who holds a
certificate of operating authority in the incumbent local exchange
company's certificated area or areas or who has an effective
interconnection agreement with the incumbent local exchange
company. Pricing flexibility includes all pricing arrangements
included in the definition of "pricing flexibility" prescribed by
Section 51.002 and includes packaging of any regulated service with
any unregulated service or any service of an affiliate.
(b) An incumbent local exchange company, at the company's
option, shall price each regulated service offered separately or as
part of a package under Subsection (a) at either the service's
tariffed rate or at a rate not lower than the service's long run
incremental cost. The commission shall allow a company serving
fewer than one million access lines in this state to establish a
service's long run incremental cost by adopting, at that company's
option, the cost studies of a larger company for that service that
have been accepted by the commission.
(c) An affected person, the office on behalf of residential
or small commercial customers, or the commission may file a
complaint alleging that an incumbent local exchange company has
priced a regulated service in a manner that does not meet the
pricing standards of this subchapter. The complaint must be filed
before the 31st day after the date the company implements the rate.
(d) A company electing incentive regulation under Chapter
58 or 59 may use pricing and packaging flexibility and introduce
customer promotional offerings only in accordance with the
applicable provisions of Chapter 58 or 59.
Added by Acts 1999, 76th Leg., ch. 1212, § 8, eff. Sept. 1, 1999.
§ 52.0585. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
incumbent local exchange company may offer a promotion for a
regulated service for not more than 90 days in any 12-month period.
(b) The company shall file with the commission a promotional
offering that consists of:
(1) waiver of installation charges or service order
charges, or both, for not more than 90 days in a 12-month period; or
(2) a temporary discount of not more than 25 percent
from the tariffed rate for not more than 60 days in a 12-month
period.
(c) An incumbent local exchange company is not required to
obtain commission approval to make a promotional offering described
by Subsection (b).
(d) An incumbent local exchange company may offer a
promotion of any regulated service as part of a package of services
consisting of any regulated service with any other regulated or
unregulated service or any service of an affiliate.
Added by Acts 1999, 76th Leg., ch. 1212, § 8, eff. Sept. 1, 1999.
§ 52.059. RATES TO COVER APPROPRIATE COSTS. (a) The
commission by rule shall adopt standards necessary to ensure that a
rate established under this subchapter covers appropriate costs as
determined by the commission.
(b) Until standards are set under Subsection (a), the
commission shall use a costing methodology that is in the public
interest to determine whether a rate established under this
subchapter covers appropriate costs.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.060. ADMINISTRATIVE FEE OR ASSESSMENT. The
commission may prescribe and collect a fee or assessment from local
exchange companies necessary to recover the cost to the commission
and to the office of activities carried out and services provided
under this subchapter and Section 52.006.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. TELECOMMUNICATIONS UTILITIES THAT ARE NOT DOMINANT
CARRIERS
§ 52.101. APPLICABILITY. This subchapter applies only
to a telecommunications utility that is not:
(1) a dominant carrier; or
(2) the holder of a certificate of operating authority
or a service provider certificate of operating authority.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.102. LIMITED REGULATORY AUTHORITY. (a) Except as
otherwise provided by this subchapter, Subchapters D and K, Chapter
55, and Section 55.011, the commission has only the following
jurisdiction over a telecommunications utility subject to this
subchapter:
(1) to require registration under Section 52.103;
(2) to conduct an investigation under Section 52.104;
(3) to require the filing of reports as the commission
periodically directs;
(4) to require the maintenance of statewide average
rates or prices of telecommunications service;
(5) to require a telecommunications utility that had
more than six percent of the total intrastate access minutes of use
as measured for the most recent 12-month period to pass switched
access rate reductions under this title to customers as required by
Section 52.112;
(6) to require access to telecommunications service
under Section 52.105; and
(7) to require the quality of telecommunications
service provided to be adequate under Section 52.106.
(b) The authority provided by Subsection (a)(5) expires on
the date on which Section 52.112 expires.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts1999, 76th Leg., ch. 62, § 18.04(a), eff. Sept. 1, 1999;
Acts1999, 76th Leg., ch. 1212, § 9, eff. Sept. 1, 1999.
§ 52.103. REGISTRATION REQUIRED. (a) A
telecommunications utility shall register with the commission not
later than the 30th day after the date the utility commences service
to the public.
(b) A telecommunications utility that registers under
Subsection (a) shall file with the commission a description of:
(1) the location and type of service provided;
(2) the price to the public of that service; and
(3) other registration information the commission
directs.
(c) An interexchange telecommunications utility doing
business in this state shall maintain on file with the commission
tariffs or lists governing the terms of providing its services.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.104. COMMISSION MAY INVESTIGATE. (a) The
commission may investigate as necessary to determine the effect and
scope of competition in the telecommunications industry. The
investigation may include:
(1) identifying dominant carriers in the local
telecommunications and intraLATA interexchange telecommunications
industry; and
(2) defining the telecommunications market or
markets.
(b) In conducting an investigation under this section, the
commission may:
(1) hold a hearing;
(2) issue a subpoena to compel the attendance of a
witness or the production of a document; and
(3) 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.
§ 52.105. ACCESS TO CERTAIN SERVICES
REQUIRED. (a) The commission may require that each local
exchange area have access to local and interexchange
telecommunications service, except as otherwise provided by this
section.
(b) The commission shall allow a telecommunications utility
to discontinue service to a local exchange area if:
(1) comparable service is available in the area; and
(2) discontinuing the service is not contrary to the
public interest.
(c) This section does not authorize the commission to
require a telecommunications utility to initiate service to a local
exchange area to which the telecommunications utility:
(1) did not provide service during the preceding
12-month period; and
(2) has not provided service previously for a
cumulative period of at least one year.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.106. QUALITY OF SERVICE REQUIRED. The commission
may require the quality of telecommunications service provided in a
local exchange in which the commission determines that service has
deteriorated and become unreliable to be adequate to protect the
public interest and the interests of customers of that exchange.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.107. PREDATORY PRICING. (a) The commission may
enter an order necessary to protect the public interest if the
commission finds by a preponderance of the evidence after notice
and hearing that an interexchange telecommunications utility has:
(1) engaged in predatory pricing; or
(2) attempted to engage in predatory pricing.
(b) A hearing held by the commission under Subsection (a)
must be based on a complaint from another interexchange
telecommunications utility.
(c) An order entered under Subsection (a) may include the
imposition on a specific service of the commission's full
regulatory authority under:
(1) this chapter;
(2) Chapters 14, 15, 51, 53, and 54; and
(3) Subchapters A, D, and H, Chapter 55.
(d) This section applies only to an interexchange
telecommunications utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.108. OTHER PROHIBITED PRACTICES. The commission
may enter any order necessary to protect the public interest if the
commission finds after notice and hearing that a telecommunications
utility has:
(1) failed to maintain statewide average rates;
(2) abandoned interexchange message
telecommunications service to a local exchange area in a manner
contrary to the public interest;
(3) engaged in a pattern of preferential or
discriminatory activities prohibited by Section 53.003, 55.005, or
55.006; or
(4) failed to pass switched access rate reductions to
customers under Chapter 56 or other law, as required by Section
52.112.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts1999, 76th Leg., ch. 1212, § 10, eff. Sept. 1, 1999.
§ 52.109. AVAILABILITY OF SERVICE. (a) The commission
may require a telecommunications utility that provides a service to
make that service available in an exchange served by the
telecommunications utility within a reasonable time after receipt
of a bona fide request for the service in that exchange.
(b) A telecommunications utility may not be required to
extend a service to an area if:
(1) the local exchange company is unable to provide
the required access or other service; or
(2) extending the service would, after consideration
of the public interest to be served, impose unreasonable costs on or
require unreasonable investments by the telecommunications
utility.
(c) The commission may require from a telecommunications
utility or a local exchange company information necessary to
enforce this section.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.110. BURDEN OF PROOF. (a) In a proceeding before
the commission in which it is alleged that a telecommunications
utility engaged in conduct in violation of Section 52.107, 52.108,
52.109, or 52.112, the burden of proof is on:
(1) a telecommunications utility complaining of
conduct committed against it in violation of this subchapter; or
(2) except as provided by Subsection (b), the
responding telecommunications utility if the proceedings are:
(A) brought by a customer or customer
representative who is not a telecommunications utility; or
(B) initiated by the commission.
(b) The commission may impose the burden of proof on the
complaining party in a proceeding described by Subsection (a)(2) if
the commission determines that placing the burden of proof on the
complaining party is in the public interest.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts1999, 76th Leg., ch. 1212, § 11, eff. Sept. 1, 1999.
§ 52.111. COMMISSION MAY EXEMPT. The commission may
exempt from a requirement of this subchapter a telecommunications
utility that:
(1) does not have a significant effect on the public
interest, as determined by the commission; or
(2) relies solely on the facilities of others to
complete long distance calls, if the commission determines that the
exemption is in the public interest.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.112. REDUCTION PASS-THROUGH REQUIRED. (a) Each
telecommunications utility that had more than six percent of the
total intrastate access minutes of use as measured for the most
recent 12-month period shall pass through to customers switched
access rate reductions under this title. The residential customer
class shall receive not less than a proportionate share of the
reductions.
(b) Within six months following each reduction in
intrastate switched access rates under this title, each
telecommunications utility subject to this section shall file with
the commission a sworn affidavit confirming that the utility has
reduced the per minute rates it charges under its basic rate
schedule to reflect the per minute reduction in intrastate switched
access rates.
(c) This section expires on the second anniversary of the
date incumbent local exchange companies doing business in the state
are no longer prohibited by federal law from offering interLATA and
interstate long distance service.
Added by Acts 1999, 76th Leg., ch. 1212, § 12, eff. Sept. 1,
1999.
SUBCHAPTER D. CERTIFICATE HOLDERS
§ 52.151. APPLICABILITY. This subchapter applies only
to a telecommunications utility that holds a certificate of
operating authority or a service provider certificate of operating
authority.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.152. LIMITED REGULATORY AUTHORITY. Except as
otherwise specifically provided by this title, the commission has
only the following authority over a telecommunications utility
subject to this subchapter:
(1) to enforce this title under Subchapter B, Chapter
15;
(2) to assert jurisdiction over a specific service
under Subchapter E;
(3) to require co-carriage reciprocity; and
(4) to regulate condemnation and building access.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.153. BOOKS AND RECORDS. The commission may
prescribe forms of books, accounts, records, and memoranda to be
kept by a telecommunications utility, but only as necessary to
enforce the limited jurisdiction over those companies that this
title provides to the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.154. COMMISSION MAY NOT OVERBURDEN. The
commission may not, by a rule or regulatory practice adopted under
this chapter, impose on a telecommunications utility a greater
regulatory burden than is imposed on a holder of a certificate of
convenience and necessity serving the same area.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.155. PROHIBITION OF EXCESSIVE ACCESS
CHARGES. (a) A telecommunications utility that holds a
certificate of operating authority or a service provider
certificate of operating authority may not charge a higher amount
for originating or terminating intrastate switched access than the
prevailing rates charged by the holder of the certificate of
convenience and necessity in whose territory the call originated or
terminated unless:
(1) the commission specifically approves the higher
rate; or
(2) subject to commission review, the
telecommunications utility establishes statewide average composite
originating and terminating intrastate switched access rates based
on a reasonable approximation of traffic originating and
terminating between all holders of certificates of convenience and
necessity in this state.
(b) Notwithstanding any other provision of this title, the
commission has all jurisdiction necessary to enforce this section.
Added by Acts 1999, 76th Leg., ch. 1212, § 13, eff. Sept. 1,
1999.
SUBCHAPTER E. DEREGULATION OF SERVICE
§ 52.201. DEREGULATION OF SERVICE. Notwithstanding any
other provision of this title, the commission may deregulate the
price of a service in a geographic market if, after notice and
hearing, the commission determines that:
(1) the incumbent local exchange company is not
dominant for the service in that geographic market; or
(2) the holder of a certificate of operating authority
who is a dominant carrier is no longer dominant for the service in
that geographic market.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.202. DETERMINATION OF GEOGRAPHIC MARKET. In
determining the geographic market under Section 52.201, the
commission shall consider the economic and technical conditions of
the market.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.203. MARKET POWER TEST. (a) To determine whether
an incumbent local exchange company or holder of a certificate of
operating authority who is a dominant carrier is no longer dominant
for a service in a geographic market, the commission must find that:
(1) there is an effective competitive alternative;
and
(2) the incumbent local exchange company or
certificate holder does not have market power sufficient to
control, in a manner that is adverse to the public interest, the
price of the service in the geographic area.
(b) To determine whether the incumbent local exchange
company or certificate holder is dominant for a service in the
geographic area, the commission shall consider:
(1) the number and size of telecommunications
utilities or other persons who provide the same, equivalent, or
substitutable service in the relevant market;
(2) the extent to which the service is available in the
relevant market;
(3) the ability of customers in the relevant market to
obtain the same, equivalent, or substitutable service at comparable
rates and on comparable terms;
(4) the ability of a telecommunications utility or
other person to make the same, equivalent, or substitutable service
readily available in the relevant market at comparable rates and on
comparable terms;
(5) the proportion of the relevant market that is
being provided the service by a telecommunications utility other
than the incumbent local exchange company or holder of a
certificate of operating authority who is a dominant carrier; and
(6) other relevant information the commission
considers necessary.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.204. RATE FOR DEREGULATED SERVICE. If the price of
a service in a geographic market is deregulated under this
subchapter, the incumbent local exchange company or holder of a
certificate of operating authority may set the rate for the service
at any level higher than the service's long run incremental cost.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.205. INVESTIGATION OF COMPETITION. (a) On
request of an incumbent local exchange company or holder of a
certificate of operating authority who is a dominant carrier made
in conjunction with an application under this subchapter, the
commission shall investigate to determine the effect and scope of
competition in the geographic and service markets at issue.
(b) The commission has the power necessary and convenient to
conduct the investigation. In conducting an investigation, the
commission may:
(1) hold a hearing;
(2) issue a subpoena to compel the attendance of a
witness and the production of a document; and
(3) make findings of fact and decisions with respect
to the markets.
(c) A party to a proceeding may use, in an application for
pricing flexibility, the results of an investigation conducted
under this section.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.206. REREGULATION OF MARKET. The commission, on
its own motion or on a complaint that the commission considers to
have merit, may assert regulation over a service in a geographic
market if:
(1) the incumbent local exchange company or holder of
a certificate of operating authority who was previously a dominant
carrier is found to again be dominant for the service in that
geographic market; or
(2) the provider of services under a certificate of
operating authority or service provider certificate of operating
authority is found to be dominant for the service in that geographic
market.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.207. REPORTS; CONFIDENTIAL INFORMATION. (a) In
conjunction with the commission's authority to collect and compile
information, the commission may collect a report from a holder of a:
(1) certificate of operating authority; or
(2) service provider certificate of operating
authority.
(b) The commission shall maintain the confidentiality of
information contained in a report collected under this section that
is claimed to be confidential for competitive purposes. The
confidential information is exempt from disclosure under Chapter
552, Government Code.
(c) To protect the confidential information, the commission
shall aggregate the information to the maximum extent possible
considering the purpose of the proceeding.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER F. REQUIRED REPORTS AND FILINGS; RECORDS
§ 52.251. TARIFF FILINGS. (a) A public utility shall
file with the commission a tariff showing each rate that is:
(1) subject to the commission's jurisdiction; and
(2) in effect for a utility service, product, or
commodity offered by the utility.
(b) The public utility shall file as a part of the tariff
required under Subsection (a) each rule that relates to or affects:
(1) a rate of the utility; or
(2) a utility service, product, or commodity furnished
by the utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.252. DEPRECIATION ACCOUNT. The commission shall
require each public utility to carry a proper and adequate
depreciation account in accordance with:
(1) the rates and methods prescribed by the commission
under Section 53.056; and
(2) any other rule the commission adopts.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.253. ACCOUNTS OF PROFITS AND LOSSES. A public
utility shall keep separate accounts showing profits or losses from
the sale or lease of merchandise, including an appliance, a
fixture, or equipment.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.254. REPORT OF CERTAIN EXPENSES. The commission
may require a public utility to annually report the utility's
expenditures for:
(1) business gifts and entertainment; and
(2) advertising or public relations, including
expenditures for institutional and consumption-inducing purposes.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.255. AVAILABILITY OF RECORDS. Notwithstanding
Section 14.152, a book, account, record, or memorandum of a public
utility may be removed from this state if the book, account, record,
or memorandum is returned to this state for any commission
inspection authorized by this title.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 52.256. PLAN AND REPORT OF WORKFORCE DIVERSITY AND
OTHER BUSINESS PRACTICES. (a) In this section, "small business"
and "historically underutilized business" have the meanings
assigned by Section 481.191, Government Code.
(b) Before January 1, 2000, each telecommunications utility
shall develop and submit to the commission a comprehensive
five-year plan to enhance diversity of its workforce in all
occupational categories and for increasing opportunities for small
and historically underutilized businesses. The plan must consist
of:
(1) the telecommunications utility's performance with
regard to workforce diversity and contracting with small and
historically underutilized businesses;
(2) initiatives that the telecommunications utility
will pursue in these areas over the period of the plan;
(3) a listing of programs and activities the
telecommunications utility will undertake to achieve each of these
initiatives; and
(4) a listing of the business partnership initiatives
the telecommunications utility will undertake to facilitate small
and historically underutilized business entry into the
telecommunications market, taking into account opportunities for
contracting and joint ventures.
(c) Each telecommunications utility shall submit an annual
report to the commission and the legislature relating to its
efforts to improve workforce diversity and contracting
opportunities for small and historically underutilized businesses.
The report must include:
(1) the diversity of the telecommunications utility's
workforce as of the time of the report;
(2) the telecommunications utility's level of
contracting with small and historically underutilized businesses;
(3) the specific progress made under the plan under
Subsection (b);
(4) the specific initiatives, programs, and
activities undertaken under the plan during the preceding year;
(5) an assessment of the success of each of those
initiatives, programs, and activities;
(6) the extent to which the telecommunications utility
has carried out its initiatives to facilitate opportunities for
contracts or joint ventures with small and historically
underutilized businesses; and
(7) the initiatives, programs, and activities the
telecommunications utility will pursue during the next year to
increase the diversity of its workforce and contracting
opportunities for small and historically underutilized businesses.
Added by Acts 1999, 76th Leg., ch. 1212, § 14, eff. Sept. 1,
1999.
