The ?IoriorableGarrettRxris 

chairman 

Public Utility Ccemission of Texas RS: Effective date of section 

P. 0. Box 12577 56 of the Public Utilities 

Austin, !rwzas 78711 Regulatory Actpenaitting 

certainagremmtsbetween 

retail public utilities. 

Dear Mr. kxris: 

You&we reguestedouropinion con cerning the effective date of 

section 56 of the Public Utility Regulatory Act, article 1446c, V.T.C.S., 

kts 1975, 64th kg., cb. 721, p. 2327, wbicb authorizes contracts 

between retail public utilities designating the area and custawrs tobe 

served by the contracting utilities and provides for Cnnnission approval 

of such contracts. Section 52 provides for the filing of maps &wing 

all its facilities as a prerequx 'site to the issuance of certificates of 

convenience and necessity. Since the maps must bs filed by December 31, 

1975, and certificates will be issued beginning Marc& 1, 1976, you have 

asked when the approval authority of the Cnnnission concerning area 

service aontractswillbecoweffective. 

sei0n a7 0f the ii0t provides: 

(a) lbe regulatory authority shall assma 

jurisdiction and all pmers and duties of 

regulation undyr this Act on January 1, 1976, 

atixtas provided in Subsection (b) of this 

. 

(b) 'Ike regulatory authority shall assw 

jurisdictimoverrates andserviceofplblic 

utilities cm S'eptanber 1, 1976. 

p. 3185 
The 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 section 56 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 rates or 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 September 1, 1976, is that authority 

provided in section 35(b) of the Act or in other similar provisions. 

Were the ccmnission's jurisdiction over "service" in its broadest sense 

delayed until Septmber 1, 1976, it is difficult to ascertain what 

regulatory pavers could be exercised on January 1, 1976. Thus, in ow 

opinion section 87(b) relates to regulations of service which constitute 

or are similar to the fixing of "standards, classifications, regulations, 

or practices. . .witb respect to the service to be furnished. . . .n 

Sec. 35(b). We do not believe the approval authority provided in 

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

the authority provided in 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 provided in section 56 of the Public 

Utility F!egulatory Act may te exercised after 

January 1, 1976. 

& d/z@ 

L. HILL 

ttorney General of Texas 

p. 3186 
. 

The Honorable Garrett Mxris - page 3 (H-752) 

APPmvED: 

p. 3187