The ?IoriorableGarrettRxris chairman Public UtilityCcemissionof Texas RS: Effectivedate of section P. 0. Box 12577 56 of the Public Utilities Austin, !rwzas 78711 RegulatoryActpenaitting certainagremmtsbetween retailpublic utilities.
Dear Mr. kxris:
You&we reguestedouropinion concerningthe effectivedate of section 56 of the Public Utility RegulatoryAct, article1446c,V.T.C.S., kts 1975, 64th kg., cb. 721, p. 2327, wbicb authorizescontracts between retail public utilitiesdesignatingthe area and custawrs tobe served by the contractingutilitiesand providesfor Cnnnissionapproval of such contracts. Section 52 providesfor the filingof maps &wing all its facilitiesas a prerequx'siteto the issuanceof certificatesof convenienceand necessity. Since the maps must bs filed by December31, 1975, and certificateswill be issued beginningMarc& 1, 1976, you have asked when the approvalauthorityof the Cnnnissionconcerningarea serviceaontractswillbecoweffective.
sei0n a7 0f the ii0t provides:
(a) lbe regulatoryauthorityshall assma jurisdictionand all pmers and dutiesof regulationundyr this Act on January1, 1976, atixtas providedin Subsection(b) of this .
(b) 'Ikeregulatoryauthorityshall assw jurisdictimoverrates andserviceofplblic utilitiescm S'eptanber 1, 1976.
p. 3185 The HonorableGarrettMorris - page 2 (H-752)
sectian aa provides:
This Act shall bscune effectivecm Septerber1, 1975, and the axmission shall thereqm kegin organizationandthegatheringofinformtim asprovidedinthiskt.
Thus, yourquestimiswhether the approvalof these contractsis an incidentof infomation gathering,an exerciseof regulatoryauthority ova rates or service,or an exerciseof otherregulatorypawers.
In our view, the approvalprocess is of the third category. Clearly an approvalismre thanmere informationgathering.The approval authorityunder section56 is a facet of the regulatoryauthorityof the &mission. Hcwever,we do not believe this approvalprocess to constitute anexercise of regulatoryjurisdictionof ratesor service. We are aware of the broad definitiongiven "sexvice,"in section3(s), but in ouropinionthe regulatoryauthorityover "service," whichunder section 87(b) camot be exerciseduntil September1, 1976, is that authority providedin section35(b) of the Act or in other similarprovisions. Were the ccmnission'sjurisdictionover "service"in its broadestsense delayed until Septmber 1, 1976, it is difficultto ascertainwhat regulatorypavers could be exercisedon January1, 1976. Thus, in ow opinion section87(b) relatesto regulationsof servicewhich constitute or are similarto the fixingof "standards,classifications, regulations, or practices.. .witbrespectto the serviceto be furnished.. . .n Sec. 35(b). We do not believethe approvalauthorityprovidedin section 56 is such a regulationof service. kmxdinqly, in oux opinion the authorityprovidedin section56 is a part of the general regulatory authorityof the Camnissionand can be exercisedon January 1, 1976. sec. 87(a).
SUMMARY
The approvalauthorityover contractsbetween utilitiesprovidedin section 56 of the Public UtilityF!egulatory Act may te exercisedafter January1, 1976.
d/z@ & L. HILL ttorneyGeneralof Texas
p. 3186 .
The HonorableGarrettMxris - page 3 (H-752)
APPmvED:
p. 3187