The ?IoriorableGarrettRxris

chairman Public UtilityCcemission of Texas RS: Effective date of section P. 0. Box 12577 56 of the Public Utilities Austin, !rwzas 78711 Regulatory Actpenaitting certainagremmtsbetween retailpublic utilities. Dear Mr. kxris: You&we reguestedouropinion con cerning the effective date of section 56 of the PublicUtilityRegulatory Act, article1446c, V.T.C.S., kts 1975, 64th kg., cb. 721, p. 2327,wbicb authorizes contracts between retailpublic utilities designating

the area and custawrs tobe servedby the contracting utilities

and providesfor Cnnnission approval of such contracts. Section 52 provides for the filingof maps &wing all its facilities as a prerequx

'siteto the issuance of certificates

of convenience

and necessity. Since the maps must bs filed by December 31, 1975, and certificates will be issuedbeginning Marc& 1, 1976, you have asked when the approval authority

of the Cnnnission

concerning

area serviceaontractswillbecoweffective. sei0n a7 0f the ii0t provides: (a) lbe regulatory

authority

shall assma jurisdiction

and all pmers and dutiesof regulation

undyr this Act on January 1, 1976, atixtas providedin Subsection (b) of this

. (b) 'Ike

regulatory

authority

shall assw jurisdictimoverrates andserviceofplblic utilities

cm S'eptanber

1, 1976.

p. 3185The Honorable Garrett

Morris - page 2 (H-752)

sectian aa provides: This Act shall bscune effective cm Septerber

1, 1975, and the axmission shall thereqm kegin organizationandthegatheringofinformtim asprovidedinthiskt. Thus, yourquestimiswhether the approval of these contracts is an incident

of infomation gathering, an exercise

of regulatory

authority ova rates or service, or an exercise

of otherregulatorypawers.
In our view, the approval process is of the third category. Clearly an approvalismre thanmere informationgathering. The approval authority

under section56 is a facet of the regulatory authority

of the &mission. Hcwever, we do not believe this approval process to constitute anexercise of regulatory jurisdiction

of ratesor service. We are aware of the broad definition given "sexvice,"

in section 3(s), but in ouropinionthe regulatory authority

over "service,"

whichunder section 87(b) camot be exercised until September1, 1976, is that authority providedin section35(b) of the Act or in other similar provisions. Were the ccmnission's jurisdiction

over "service"

in its broadestsense delayeduntil Septmber 1, 1976, it is difficult to ascertain

what regulatory

pavers could be exercised on January1, 1976. Thus, in ow opinion section 87(b) relatesto regulations of service

which constitute or are similarto the fixingof "standards, classifications,

regulations, or practices.
. .witbrespectto the serviceto be furnished.
. . .n Sec. 35(b). We do not believe the approval authority

providedin section 56 is such a regulation of service. kmxdinqly, in oux opinion the authority

providedin section 56 is a part of the general regulatory authority

of the Camnission

and can be exercised on January 1, 1976. sec. 87(a). SUMMARY

The approval

authority

over contracts

between utilities

providedin section 56 of the Public UtilityF!egulatory

Act may te exercised after January1, 1976. 

# & d/z@

L. HILL ttorneyGeneral

of Texas

p. 3186.
The Honorable Garrett

Mxris - page 3 (H-752)

APPmvED:

p. 3187