CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND OTHER REGULATORY AUTHORITIES
UTILITIES CODE
TITLE 2. PUBLIC UTILITY REGULATORY ACT
SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES
CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND OTHER
REGULATORY AUTHORITIES
SUBCHAPTER A. GENERAL POWERS OF COMMISSION
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 14.0025. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE
RESOLUTION. (a) The commission shall develop and implement a
policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter 2008,
Government Code, for the adoption of commission rules; and
(2) appropriate alternative dispute resolution procedures under
Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative dispute
resolution must conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy adopted under
Subsection (a);
(2) serve as a resource for any training needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Added by Acts 2005, 79th Leg., Ch.
797, Sec. 5, eff. September 1, 2005.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER B. PRACTICE AND PROCEDURE
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 14.055. RECORD OF PROCEEDINGS. The regulatory authority
shall keep a record of each proceeding before the authority.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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 comptroller; 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, Sec. 18.01(a), eff. Sept.
1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.115, eff. September 1, 2007.
Sec. 14.059. TECHNOLOGY POLICY. The commission shall implement
a policy requiring the commission to use appropriate
technological solutions to improve the commission's ability to
perform its functions. The policy must ensure that the public is
able to interact with the commission on the Internet.
Added by Acts 2005, 79th Leg., Ch.
797, Sec. 6, eff. September 1, 2005.
SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 405, Sec. 9, eff. Sept. 1,
1999.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER D. RECORDS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER E. AUDITS AND INSPECTIONS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.