The Honorable Garrett Morris 

Chairman 

Public Utility Commission 

7800 Shoal Creek Boulevard 

Opinion No. H-644 

Re: Issuance of certificates of convenience and 

Austin, Texas 70757 

Dear Chairman Morris: 

you have asked: 

Is the Public 

under Section 

necessity to gas utilities 

under section 50(2) of the 

Public Utility Regulatory 

Act. 

Utility Commission required, 

50(2) of Article 1446c, V.T.C.S., 

The Public Utility Regulatory Act, to certificate gas retail public utilities by September 1, 

1976, if such gas retail utility files an 

application therefor and is furnishing, making 

available, rendering or extending retail public 

utility service to any area to which gas 

retail utility service is being lawfully 

furnished by another gas retail public utility 

on or after the effective date of this Act? 

Your'question is necessitated by sections 49 and 50 of 

the Public Utility Regulatory Act, which provide: 

Sec. 49. For the purposes of this article 

only: (a) 'Retail public utility' means any 

person, corporation, municipality, political 

subdivision or agency, or cooperative corporation, now or hereafter operating, maintaining, 

or controlling in Texas facilities for providing 

retail utility service. (b) 'Public utility' 

does not include any person, corporation, 

municipality, political subdivision or agency, 

or cooperative corporation under the jurisdiction of the Railroad Commlssion. 
The Honorable Garrett Morris - page 2 W-844) 

Sec. 50. Beginning one year after the 

effective date of this Act, unless otherwise 

::pecified: 

(1) No public utility may in any way 

render service directly or indirectly to the 

public under any franchise or permit without 

first having obtarned from the commission a 

certificate that the present or future 

public convenience and necessity require or 

will require such installation, operation, 

or extension. 

(2) Except as otherwise provided in this 

article no retail public utility may furnish, 

make available, render, or extend retail 

public utility service to any area to which 

retail public utlllty servrce is being lawfully furnished by another retail public 

utility on or after the effective date of 

this Act, without first having obtained a 

certificate of public convenience and necessity that includes the area in which the 

consuming facility is located. 

Since certain gas utlllties may fall within the definitlon of retall public utility, it is arguable that the strict 

language of section 50(2) would require those gas utilities 

to obtain certrficates of convenience and necessity before 

they may 

'furnish, make avallable, render, or extend 

retail public utrlity service to any area 

to which retail utility service 1s being 

lawfully furnlshed by another retail public 

utility on or after the effective date' of 

the statute. Sec. 50 (2). See Attorney 

General Opinion H-831 (19761x-812 (1976). 

Since the Public Utility Commission is the only body 

authorized to grant such certificates by the Act, if a certificate is required it must be received from the Public Utility 

Commission. 

p. 3559 
The Honorable Garrett Morris - page 3 (Ii-8443 

It is a fundamental rule of statutory construction that 

a staEc;-e is to be read as a whole and its parts harmonized 

to give effect to the evident intention of the Legislature. 

Texas Turnpike Authority v. Shepperd, 279 1 S.W.2d 302 (Tex. 

sup. 19551; A&A%quor Stores v. Texas Li uor Control Board, 

342 S.W.Zd 785-(Tex. Civ. Ape.:- -.+, Austin writ ref'd 

n.r.e.1. 

In examining the entire Act it is evident that the 

Legislature did not intend for certificates to be issued to 

gas utilities by the Public Utility Commission. Exclusive 

jurisdiction over services of gas utilities is vested either 

in the municipality [sec. 19(a)] or the Railroad Commission 

(sec. 19(b)]. If a gas utility were required to obtain a 

certificate of convenience and necessity, the absurd result 

would accrue that the utility would be required to obtain a 

certificate from the Public Utility Commission, but the 

Public Utility Commission would have no authority to issue 

such a certificate. Since there is no entity which is 

empowered to grant certificates of public convenience and 

necessity to gas utilities under section 50 of the Public 

Utility Regulatory Act, it is our view that gas utilities 

are not required to obtain a certificate under that section. 

SUMMARY 

The Public Utility Commission is not 

required to issue certificates of convenience and necessity to gas utilities 

under section 5Oi2) of the Public vt:lity 

Regulatory Act, article 1446c, V.T.C.S. 

Very truly yours, 

.JOHN I,. HIiL 

,,' Attorney General of Texas 

, 
. 

The Hmorable Garrett Morris - page 4 ftl-844)