UTILITIES CODE
CHAPTER 102. JURISDICTION AND POWERS OF RAILROAD COMMISSION AND
OTHER REGULATORY AUTHORITIES
SUBCHAPTER A. GENERAL POWERS OF RAILROAD COMMISSION
§ 102.001. RAILROAD COMMISSION JURISDICTION. (a) The
railroad commission has exclusive original jurisdiction over the
rates and services of a gas utility:
(1) that distributes natural gas or synthetic natural
gas in:
(A) areas outside a municipality; and
(B) areas inside a municipality that surrenders
its jurisdiction to the railroad commission under Section 103.003;
and
(2) that transmits, transports, delivers, or sells
natural gas or synthetic natural gas to a gas utility that
distributes the gas to the public.
(b) The railroad commission has exclusive appellate
jurisdiction to review an order or ordinance of a municipality
exercising exclusive original jurisdiction as provided by this
subtitle.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 1233, § 63, eff. Sept. 1, 2001.
§ 102.002. LIMITATION ON RAILROAD COMMISSION
JURISDICTION. Except as otherwise provided by this subtitle, this
subtitle does not authorize the railroad commission to:
(1) regulate or supervise a rate or service of a
municipally owned utility; or
(2) affect the jurisdiction, power, or duty of a
municipality that has elected to regulate and supervise a gas
utility in the municipality.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.003. RAILROAD COMMISSION POWERS RELATING TO
REPORTS. The railroad commission may:
(1) require a gas utility to report to the railroad
commission information relating to the gas utility and an affiliate
inside or outside this state as useful in administering this
subtitle;
(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 railroad commission of
a copy of:
(A) a contract or arrangement between a gas
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 railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.004. REPORT OF SUBSTANTIAL INTEREST. The
railroad commission may require disclosure of the identity and
respective interests of each owner of at least one percent of the
voting securities of a gas utility or its affiliate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.005. ASSISTANCE TO MUNICIPALITY. On request of a
municipality, the railroad commission may advise and assist the
municipality with respect to a question or proceeding arising under
this subtitle. Assistance provided by the railroad commission may
include aid to a municipality on a matter pending before the
railroad commission, a court, or the municipality's governing body,
such as making a staff member available as a witness or otherwise
providing evidence.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.006. ADMINISTRATIVE HEARINGS IN CONTESTED
CASES. (a) The railroad commission by rule shall provide for
administrative hearings in contested cases to be conducted by one
or more members of the railroad commission, by railroad commission
hearings examiners, or by the utility division of the State Office
of Administrative Hearings. The rules must provide for a railroad
commission hearings examiner or the utility division of the State
Office of Administrative Hearings to conduct each hearing in a
contested case that is not conducted by one or more members of the
railroad commission. A hearing must be conducted in accordance
with the rules and procedures adopted by the railroad commission.
(b) The railroad commission may delegate to a railroad
commission hearings examiner or 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 railroad commission by rule shall define the
procedures by which it delegates final decision-making authority
under Subsection (b) to a railroad commission hearings examiner or
to the utility division of the State Office of Administrative
Hearings.
(d) For purposes of judicial review, the final decision of a
railroad commission hearings examiner or an administrative law
judge of the State Office of Administrative Hearings in a matter
delegated under Subsection (b) has the same effect as a final
decision of the railroad commission unless a member of the
commission requests formal review of the decision.
(e) The State Office of Administrative Hearings shall
charge the railroad commission a fixed annual rate for hearings
conducted by the office under this section only if the legislature
appropriates money for that purpose. If the legislature does not
appropriate money for the payment of a fixed annual rate under this
section, the State Office of Administrative Hearings shall charge
the railroad commission an hourly rate of not more than $90 per hour
for hearings conducted by the office under this section.
Added by Acts 2001, 77th Leg., ch. 1233, § 64, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 200, § 3, eff. Sept.
1, 2003.
SUBCHAPTER B. RESTRICTIONS ON CERTAIN TRANSACTIONS
§ 102.051. REPORT OF CERTAIN TRANSACTIONS; RAILROAD
COMMISSION CONSIDERATION. (a) Unless a gas utility reports the
transaction to the railroad commission within a reasonable time,
the gas 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
$1 million; or
(2) merge or consolidate with another gas utility
operating in this state.
(b) On the filing of a report with the railroad commission,
the railroad commission shall investigate the transaction
described by Subsection (a), with or without a public hearing, to
determine whether the action is consistent with the public
interest. In reaching its determination, the railroad commission
shall consider the reasonable value of the property, facilities, or
securities to be acquired, disposed of, merged, or consolidated.
(c) If the railroad commission finds that a transaction is
not in the public interest, the railroad 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; or
(2) an addition to the facilities of a gas utility by
construction.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 32, § 1, eff. Sept. 1, 1999.
§ 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
UTILITY. A gas utility may not purchase voting stock in another
gas utility doing business in this state unless the utility reports
the purchase to the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.053. REPORT OF LOAN TO STOCKHOLDERS. A gas
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 gas utility unless the gas utility reports the
transaction to the railroad commission within a reasonable time.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. RECORDS
§ 102.101. RECORDS OF GAS UTILITY. (a) Each gas
utility shall keep and provide to the regulatory authority, in the
manner and form prescribed by the railroad commission, uniform
accounts of all business transacted by the gas utility.
(b) The railroad commission may prescribe the form of books,
accounts, records, and memoranda to be kept by a gas 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
railroad commission considers necessary to carry out this subtitle.
(c) For a gas 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 railroad commission. The railroad 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 railroad commission for a
gas utility or class of utilities may not be inconsistent with the
systems and forms established by a federal agency for that gas
utility or class of utilities.
(d) Each gas utility shall:
(1) keep and provide its books, accounts, records, and
memoranda accurately and faithfully in the manner and form
prescribed by the railroad commission; and
(2) comply with the directions of the regulatory
authority relating to the books, accounts, records, and memoranda.
(e) In this section, "gas utility" includes a municipally
owned utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
STATE. (a) Each gas utility shall maintain an office in this
state in a county in which some part of the utility's property is
located. The gas utility shall keep in this office all books,
accounts, records, and memoranda required by the railroad
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 prescribed by the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.103. 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 gas utility;
(2) an affiliate; or
(3) a representative of a gas 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 gas 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.
§ 102.104. JURISDICTION OVER AFFILIATE. The railroad
commission has jurisdiction over an affiliate that has a
transaction with a gas utility under the railroad commission's
jurisdiction to the extent of access to an account or a record of
the affiliate relating to the transaction, including an account or
a record of joint or general expenses, any portion of which may be
applicable to the transaction.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. REQUIRED REPORTS AND FILINGS
§ 102.151. SCHEDULE FILINGS. (a) A gas utility shall
file with each regulatory authority schedules showing all rates
that are:
(1) subject to the regulatory authority's original or
appellate jurisdiction; and
(2) in effect for a gas utility service, product, or
commodity offered by the gas utility.
(b) The gas utility shall file as a part of the schedules
required under Subsection (a) each rule or regulation that relates
to or affects:
(1) a rate of the gas utility; or
(2) a gas utility service, product, or commodity
furnished by the gas utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.152. DEPRECIATION ACCOUNT. The railroad
commission shall require each gas utility or municipally owned
utility to carry a proper and adequate depreciation account in
accordance with:
(1) the rates and methods prescribed by the railroad
commission under Section 104.054; and
(2) any other rule the railroad commission adopts.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.153. ACCOUNTS OF PROFITS AND LOSSES. A gas
utility or municipally owned 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.
§ 102.154. REPORT OF CERTAIN EXPENSES. A regulatory
authority may require a gas 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.
SUBCHAPTER E. AUDITS AND INSPECTIONS
§ 102.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A
regulatory authority may inquire into the management and affairs of
each gas utility and shall keep itself informed as to the manner and
method in which each gas utility is managed and its affairs are
conducted.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.202. AUDIT OF ACCOUNTS. A regulatory authority
may require the examination and audit of the accounts of a gas or
municipally owned utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.203. INSPECTION. At a reasonable time for a
reasonable purpose, 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 gas utility
within its jurisdiction; and
(2) inspect the plant, equipment, and other property
of a gas utility within its jurisdiction.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.204. EXAMINATIONS UNDER OATH. In connection with
an investigation taken under Section 102.203, the regulatory
authority may:
(1) examine under oath an officer, agent, or employee
of a gas 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.
§ 102.205. ENTERING PREMISES OF GAS UTILITY. (a) A
member, agent, or employee of a regulatory authority may enter the
premises occupied by a gas utility to conduct an inspection,
examination, or test or to exercise any other authority provided by
this subtitle.
(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 gas utility.
(c) A gas utility is entitled to be represented when an
inspection, examination, or test is conducted on its premises. The
gas 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.
§ 102.206. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A
regulatory authority may require, by order or subpoena served on a
gas 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 gas utility outside this state or,
if ordered by the railroad commission, verified copies of the
books, accounts, papers, or records.
(b) A gas utility that fails or refuses to comply with an
order or subpoena under this section violates this subtitle.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER F. GENERAL PROVISIONS RELATING TO PROCEEDINGS BEFORE
REGULATORY AUTHORITY
§ 102.251. RECORD OF PROCEEDING. The regulatory
authority shall keep a record of each proceeding before the
authority.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 102.252. 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.
