UTILITIES CODE
CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
SUBCHAPTER A. GENERAL PROVISIONS
§ 103.001. MUNICIPAL JURISDICTION. To provide fair,
just, and reasonable rates and adequate and efficient services, the
governing body of a municipality has exclusive original
jurisdiction over the rates, operations, and services of a gas
utility within the municipality, subject to the limitations imposed
by this subtitle, unless the municipality surrenders its
jurisdiction to the railroad commission under Section 103.003.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 1233, § 65, eff. Sept. 1, 2001.
§ 103.002. FRANCHISES. (a) This subtitle 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 municipality that performs a regulatory function
under this subtitle may make each charge that is authorized by:
(1) this subtitle; or
(2) the applicable franchise agreement.
(c) A franchise agreement may not limit or interfere with a
power conferred on the railroad commission by this subtitle.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.003. SURRENDER OF MUNICIPAL JURISDICTION TO
RAILROAD COMMISSION; REINSTATEMENT OF JURISDICTION. (a) A
municipality may elect to have the railroad commission exercise
exclusive original jurisdiction over gas utility rates,
operations, and services in the municipality by ordinance or by
submitting the question of the surrender of its jurisdiction to the
voters at a municipal election.
(b) The governing body of a municipality shall submit at a
municipal election the question of surrendering its jurisdiction to
the railroad commission if the governing body receives a petition
signed by a number of qualified voters of the municipality equal to
at least the lesser of 20,000 or 10 percent of the number of voters
voting in the last preceding general election in the municipality.
(c) A municipality may not elect to surrender its
jurisdiction while a case involving the municipality is pending.
(d) A municipality that surrenders its jurisdiction to the
railroad commission may reinstate its jurisdiction. The provisions
of this section governing the surrender of jurisdiction apply to
the reinstatement of jurisdiction.
Added by Acts 2001, 77th Leg., ch. 1233, § 66, eff. Sept. 1,
2001.
SUBCHAPTER B. RATE DETERMINATION
§ 103.021. MUNICIPAL PROCEEDINGS. (a) A municipality
regulating a gas utility under this subtitle shall require the
utility to submit information as necessary to make a reasonable
determination of rate base, expenses, investment, and rate of
return in the municipality.
(b) A municipality shall make a determination under
Subsection (a) using the procedures and requirements prescribed by
this subtitle.
(c) A municipality shall retain personnel necessary to make
the determination of reasonable rates.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.022. RATE ASSISTANCE AND COST
REIMBURSEMENT. (a) The governing body of a municipality
participating in or conducting a ratemaking proceeding may engage
rate consultants, accountants, auditors, attorneys, and engineers
to:
(1) conduct investigations, present evidence, and
advise and represent the governing body; and
(2) assist the governing body with litigation or a gas
utility ratemaking proceeding before a regulatory authority or
court.
(b) The gas utility in the ratemaking proceeding shall
reimburse the governing body of the municipality for the reasonable
cost of the services of a person engaged under Subsection (a) to the
extent the applicable regulatory authority determines reasonable.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.023. MUNICIPAL STANDING. (a) A municipality has
standing in each case before the railroad commission that relates
to a gas utility's rates and services in the municipality.
(b) A municipality's standing is subject to the right of the
railroad commission to consolidate that municipality with another
party on an issue of common interest.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.024. JUDICIAL REVIEW. A municipality is entitled
to judicial review of a railroad commission order relating to a gas
utility's rates and services in a municipality as provided by
Section 105.001.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
§ 103.051. APPEAL BY PARTY. A party to a rate
proceeding before a municipality's governing body may appeal the
governing body's decision to the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.052. APPEAL BY RESIDENTS. The residents of a
municipality may appeal to the railroad commission the decision of
the municipality's governing body in a rate proceeding by filing
with the railroad commission a petition for review signed by a
number of qualified voters of the municipality equal to at least the
lesser of 20,000 or 10 percent of the qualified voters of the
municipality.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.053. APPEAL BY RATEPAYERS OUTSIDE
MUNICIPALITY. (a) The ratepayers of a municipally owned utility
who are outside the municipality may appeal to the railroad
commission an action of the municipality's governing body affecting
the municipally owned utility's rates by filing with the railroad
commission a petition for review signed by a number of ratepayers
served by the utility outside the municipality equal to at least the
lesser of 10,000 or five percent of those ratepayers.
(b) A petition for review is properly signed if signed by a
person or the spouse of a person in whose name residential utility
service is carried.
(c) For purposes of this section, each person who receives a
separate bill is a ratepayer. A person who receives more than one
bill may not be counted as more than one ratepayer.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.054. FILING OF APPEAL. (a) An appeal under this
subchapter is initiated by filing a petition for review with the
railroad commission and serving a copy of the petition on each party
to the original rate proceeding.
(b) The appeal must be initiated not later than the 30th day
after the date of the final decision by the governing body of the
municipality.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.055. HEARING AND ORDER. (a) An appeal under this
subchapter is de novo and based on the test year presented to the
municipality adjusted for known changes and conditions that are
measurable with reasonable accuracy.
(b) The railroad commission shall enter a final order
establishing the rates the railroad commission determines the
municipality should have set in the ordinance to which the appeal
applies.
(c) If the railroad commission fails to enter a final order
within 185 days after the date the appeal is perfected, the rates
proposed by the gas utility are considered to be approved by the
railroad commission and take effect on the expiration of the
185-day period.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 103.056. APPLICABILITY OF RATES. Temporary or
permanent rates set by the railroad commission are prospective and
observed from the date of the applicable railroad commission order,
except an interim rate order necessary to provide a gas utility the
opportunity to avoid confiscation during the period beginning on
the date a petition for review is filed with the railroad commission
and ending on the date of a final order establishing rates.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
