CHAPTER 102. JURISDICTION AND POWERS OF RAILROAD COMMISSION AND OTHER REGULATORY AUTHORITIES
UTILITIES CODE
TITLE 3. GAS REGULATION
SUBTITLE A. GAS UTILITY REGULATORY ACT
CHAPTER 102. JURISDICTION AND POWERS OF RAILROAD COMMISSION AND
OTHER REGULATORY AUTHORITIES
SUBCHAPTER A. GENERAL POWERS OF RAILROAD COMMISSION
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 63, eff. Sept. 1,
2001.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 64, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 200, Sec. 3, eff.
Sept. 1, 2003.
SUBCHAPTER B. RESTRICTIONS ON CERTAIN TRANSACTIONS
Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS; RAILROAD
COMMISSION CONSIDERATION. (a) Not later than the 60th day after
the date the transaction takes effect, a gas utility shall report
to the railroad commission:
(1) a sale, acquisition, or lease of a plant as an operating
unit or system in this state for a total consideration of more
than $1 million; or
(2) a merger or consolidation 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 32, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1000, Sec. 1, eff. September 1, 2005.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER C. RECORDS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER D. REQUIRED REPORTS AND FILINGS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER E. AUDITS AND INSPECTIONS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER F. GENERAL PROVISIONS RELATING TO PROCEEDINGS BEFORE
REGULATORY AUTHORITY
Sec. 102.251. RECORD OF PROCEEDING. 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. 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, Sec. 1, eff. Sept. 1, 1997.