CHAPTER 52. COMMISSION JURISDICTION
UTILITIES CODE
TITLE 2. PUBLIC UTILITY REGULATORY ACT
SUBTITLE C. TELECOMMUNICATIONS UTILITIES
CHAPTER 52. COMMISSION JURISDICTION
SUBCHAPTER A. GENERAL POWERS AND DUTIES OF COMMISSION
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER B. INCUMBENT LOCAL EXCHANGE COMPANIES
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 52.052. APPLICABILITY. This subchapter does not apply to
basic local telecommunications service, including local measured
service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 7, eff. Sept. 1,
1999.
Sec. 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, Sec. 8, eff. Sept. 1,
1999.
Sec. 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, Sec. 8, eff. Sept. 1,
1999.
Sec. 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, Sec. 8, eff. Sept. 1,
1999.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER C. TELECOMMUNICATIONS UTILITIES THAT ARE NOT DOMINANT
CARRIERS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.04(a), eff.
Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1212, Sec. 9, eff. Sept.
1, 1999.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 10, eff. Sept. 1,
1999.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 11, eff. Sept. 1,
1999.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 12, eff. Sept. 1,
1999.
SUBCHAPTER D. CERTIFICATE HOLDERS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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 or the holder of a certificate of operating authority
issued under Chapter 65 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.
(c) Notwithstanding Subsection (a), Chapter 65 governs the
switched access rates of a company that holds a certificate of
operating authority issued under Chapter 65.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 13, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., 2nd C.S., Ch.
2, Sec. 3, eff. September 7, 2005.
Sec. 52.156. RETAIL RATES, TERMS, AND CONDITIONS. A
telecommunications utility may not:
(1) establish a retail rate, term, or condition that is
anticompetitive or unreasonably preferential, prejudicial, or
discriminatory; or
(2) engage in predatory pricing or attempt to engage in
predatory pricing.
Added by Acts 2005, 79th Leg., 2nd C.S., Ch.
2, Sec. 4, eff. September 7, 2005.
SUBCHAPTER E. DEREGULATION OF SERVICE
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER F. REQUIRED REPORTS AND FILINGS; RECORDS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 14, eff. Sept. 1,
1999.