# The Attorney General of Texas

November 5, 1981 MARK WHITE Attorney General

Supreme Court Bullding P. 0. BOX 12548 Austin. TX. 78711 5121475-2501 Telex 9101874.1M7 Telecopier 5121475.0286

1807 Main St., Suite 1400 Dallas, TX. 75201 214l742a944

4824 Alberta Ave., Suite 160 El Paso, TX. 79905 9151533-3484

,220 Dallas Ave., Suite 202 Houston, TX. 77002 713/85&0%5

806 Broadway. Suite 312 Lubbock, TX. 79401 8061747.5238

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2w Main Plaza. SUM 400 San Antonio. TX. 78205 51212254191

An Equal OpPotiunitYl Affirmative Action Employer Honorable James E. Nugent Chairman Railroad Commissionof Texas P.O. Box 12967 Austin, Texas 78711 Opinion No.MW-385
Re: Notice of rate change required by section 43(a) of article 1446~.V.T.C.S.
Dear ChairmanNugent:
You have requested our opinion concerning whether the Railroad Commission of Texas is empowered to waive the newspaper publication requirements contained in section 43(a) of the Public Utility Regulatory Act, article 1446~. V.T.C.S.; [hereinafter~ Utility Act] and allow a utility to send notice of proposed rate changes requests directly to ratepayers through bill inserts or to otherwise give actual notice to a utility ratepayer. Statutes regulating notice that contain liberal construction nrovisions. see section 89 of the Utility Act. are tobe construed in iavor of theperson or persons towhom notice-is to be given. United Benefit Fire Insurance Co. V. Metropolitan Plumbing Co., 363 S.W.Zd 843 (Tex.Civ. App. - El Paso 1962,nowrit); Phinneyv. Langdeau, 337 S.W.2d 393 (Tex.Civ. APP. - Austin 1960,writ ref'd.n.r.e.). If the statute prescribes the method by which notice must be given. that methodmust be followedwith reasonable strictness. RotelloV. Brazes County Water Control and ImprovementDistrict Number One, 574 S.W.2d 208 (Tex. Civ. App. - Houston [lst Dist.] 1978). rev'd on other rounds, 598 S.W.2d 227 (Tex. 1980);ClaytonV. ?Tex. Newton, 524 S.W.2d 368 Civ.App. - Ft.Worth 1975,no writ); see Johnson ServiceCo.V. Climate Control Contractors, Inc., 478 S.W.2d643 (Tex. Civ. App. - Austin 1972.no writ). The language contained in section 43(a) of the Utility Act addressing the notice a utility must give when it intends to change its rates ismandatory, not discretionary: "...notice shall be given by publication in conspicuous form and place of a notice to the public of such proposed change once in each week for four successive weeks in a newspaper having general circulation in each county containing territory affected by the proposed change...." (Emphasis added). Pursuant to the above cited rule of construction concerning statutory notice provisions, it is our opinion that the statute does not grant the commission the discretion to provide for a substitute method of notice. Of course, the cotiission may permit additionalnoticeby billing inserts.Mr. James E. Nugent - Page 2 (m-385)

SUMH,ARY Sectim 43(a) .of the Public utility RegulatoryAct, article 1446~.V.T.C.S..governing notice of proposed rate changes ismandatory.

MARK WHITE AttorneyGeneral of Texas
JOHNW. FAINTER, JR. FirstAssistantAttorneyGeneral
RICHARD E. GRAY III ExecutiveAssistantAttorney General Preparedby Martha Terry AssistantAttorney General
APPROVED: OPINION COMMITTEE
SusanL. Garrison,Chairman Jon Bible Rick Gilpin JimMoellinger Martha Terry

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