CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
UTILITIES CODE
TITLE 3. GAS REGULATION
SUBTITLE A. GAS UTILITY REGULATORY ACT
CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 65, eff. Sept. 1,
2001.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 66, eff. Sept. 1,
2001.
SUBCHAPTER B. RATE DETERMINATION
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Sept. 1, 1997.