reglab/statecodes huggingface dataset:
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter D. Improvements in Service › Section 38.073. Authority of Commission During an Emergency

Sec. 38.073.  AUTHORITY OF COMMISSION DURING AN EMERGENCY.  (a)  On a declaration of a natural disaster or other emergency by the governor, the commission may require an electric utility, municipally owned utility, electric cooperative, qualifying facility, power generation company, exempt wholesale generator, or power marketer to sell electricity to an electric utility, municipally owned utility, or electric cooperative that is unable to supply power to meet customer demand due to the natural disaster or other emergency.  Any plant, property, equipment, or other items used to receive or deliver electricity under this subsection are used and useful in delivering service to the public, and the commission shall allow timely recovery for the costs of those items.  The commission may order an electric utility, municipally owned utility, or electric cooperative to provide interconnection service to another electric utility, municipally owned utility, or electric cooperative to facilitate a sale of electricity under this section.  If the commission does not order the sale of electricity during a declared emergency as described by this subsection, the commission shall promptly submit to the legislature a report describing the reasons why the commission did not make that order.
(b)  If an entity receives electricity under Subsection (a), the receiving entity shall reimburse the supplying entity for the actual cost of providing the electricity.  The entity receiving the electricity is responsible for any transmission and distribution service charges specifically incurred in relation to providing the electricity.
(c)  An entity that pays for electricity received under Subsection (b) and that is regulated by the commission may fully recover the cost of the electricity in a timely manner by:
(1)  including the cost in the entity's fuel cost under Section 36.203; or
(2)  notwithstanding Section 36.201, imposing a different surcharge.
Added by Acts 2009, 81st Leg., R.S., Ch. 1226 (S.B. 1492), Sec. 2, eff. June 19, 2009.
Added by Acts 2009, 81st Leg., R.S., Ch. 1280 (H.B. 1831), Sec. 2.02, eff. September 1, 2009.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter D. Improvements in Service › Section 38.074. Critical Natural Gas Facilities and Entities

Sec. 38.074.  CRITICAL NATURAL GAS FACILITIES AND ENTITIES.  (a) The commission shall collaborate with the Railroad Commission of Texas to adopt rules to establish a process to designate certain natural gas facilities and entities associated with providing natural gas in this state as critical during energy emergencies.
(b)  The rules must:
(1)  ensure that the independent organization certified under Section 39.151 for the ERCOT power region and each electric utility, municipally owned utility, and electric cooperative providing service in the ERCOT power region is provided with the information required by Section 81.073, Natural Resources Code;
(2)  provide for prioritizing for load-shed purposes during an energy emergency the facilities and entities designated under Subsection (a); and
(3)  provide discretion to an electric utility, municipally owned utility, or electric cooperative providing service in the ERCOT power region to prioritize power delivery and power restoration among the facilities and entities designated under Subsection (a) on the utility's or cooperative's systems, as circumstances require.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 16, eff. June 8, 2021.
Added by Acts 2021, 87th Leg., R.S., Ch. 931 (H.B. 3648), Sec. 2, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter D. Improvements in Service › Section 38.075. Weather Emergency Preparedness

Sec. 38.075.  WEATHER EMERGENCY PREPAREDNESS.  (a)  The commission by rule shall require each electric cooperative, municipally owned utility, and transmission and distribution utility providing transmission service in the ERCOT power region to implement measures to prepare the cooperative's or utility's facilities to maintain service quality and reliability during a weather emergency according to standards adopted by the commission.  In adopting the rules, the commission shall take into consideration weather predictions produced by the office of the state climatologist.
(b)  The independent organization certified under Section 39.151 for the ERCOT power region shall:
(1)  inspect the facilities of each electric cooperative, municipally owned utility, and transmission and distribution utility providing transmission service in the ERCOT power region for compliance with the reliability standards;
(2)  provide the owner of a facility described by Subdivision (1) with a reasonable period of time in which to remedy any violation the independent organization discovers in an inspection; and
(3)  report to the commission any violation that is not remedied in a reasonable period of time.
(c)  The independent organization certified under Section 39.151 for the ERCOT power region shall prioritize inspections conducted under Subsection (b)(1) based on risk level, as determined by the organization.
(d)  The commission shall impose an administrative penalty on an entity, including a municipally owned utility or an electric cooperative, that violates a rule adopted under this section and does not remedy that violation within a reasonable period of time.
(e)  Notwithstanding any other provision of this subtitle, the commission shall allow a transmission and distribution utility to design and operate a load management program for nonresidential customers to be used where the independent organization certified under Section 39.151 for the ERCOT power region has declared a Level 2 Emergency or a higher level of emergency or has otherwise directed the transmission and distribution utility to shed load.  A transmission and distribution utility implementing a load management program under this subsection shall be permitted to recover the reasonable and necessary costs of the load management program under Chapter 36.  A load management program operated under this subsection is not considered a competitive service.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 16, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter D. Improvements in Service › Section 38.076. Involuntary and Voluntary Load Shedding

Sec. 38.076.  INVOLUNTARY AND VOLUNTARY LOAD SHEDDING.  (a)  The commission by rule shall adopt a system to allocate load shedding among electric cooperatives, municipally owned utilities, and transmission and distribution utilities providing transmission service in the ERCOT power region during an involuntary load shedding event initiated by the independent organization certified under Section 39.151 for the region during an energy emergency.
(b)  The system must provide for allocation of the load shedding obligation to each electric cooperative, municipally owned utility, and transmission and distribution utility in different seasons based on historical seasonal peak demand in the service territory of the electric cooperative, municipally owned utility, or transmission and distribution utility.
(c)  The commission by rule shall:
(1)  categorize types of critical load that may be given the highest priority for power restoration; and
(2)  require electric cooperatives, municipally owned utilities, and transmission and distribution utilities providing transmission service in the ERCOT power region to submit to the commission and the independent organization certified under Section 39.151 for the region:
(A)  customers or circuits the cooperative or utility has designated as critical load; and
(B)  a plan for participating in load shedding in response to an involuntary load shedding event described by Subsection (a).
(d)  The commission by rule shall require electric cooperatives and municipally owned utilities providing transmission service in the ERCOT power region to:
(1)  maintain lists of customers willing to voluntarily participate in voluntary load reduction; and
(2)  coordinate with municipalities, businesses, and customers that consume large amounts of electricity to encourage voluntary load reduction.
(e)  This section does not abridge, enlarge, or modify the obligation of an electric cooperative, a municipally owned utility, or a transmission and distribution utility to comply with federal reliability standards.
(f)  After each load shedding event, the commission may conduct an examination of the implementation of load shedding, including whether each electric cooperative, municipally owned utility, and transmission and distribution utility complied with its plan as filed with the commission under Subsection (c)(2).
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 16, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter D. Improvements in Service › Section 38.077. Load Shedding Exercises

Sec. 38.077.  LOAD SHEDDING EXERCISES.  (a)  The commission and the independent organization certified for the ERCOT power region shall conduct simulated or tabletop load shedding exercises with providers of electric generation service and transmission and distribution service in the ERCOT power region.
(b)  The commission shall ensure that each year at least one simulated or tabletop exercise is conducted during a summer month and one simulated or tabletop exercise is conducted during a winter month.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 16, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter D. Improvements in Service › Section 38.078. Circuit Segmentation Study and Cost Recovery

Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 13
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 836 (H.B. 2555), Sec. 2, see other Sec. 38.078.
Sec. 38.078.  CIRCUIT SEGMENTATION STUDY AND COST RECOVERY.  (a)  Not later than September 15, 2023, the commission shall direct each transmission and distribution utility to perform a circuit segmentation study.
(b)  A circuit segmentation study must:
(1)  use an engineering analysis to examine whether and how the transmission and distribution utility's transmission and distribution systems can be segmented and sectionalized to manage and rotate outages more evenly across all customers and circuits, while maintaining the protections offered to critical facilities;
(2)  include an engineering analysis of the feasibility of using sectionalization, automated reclosers, and other technology to break up the circuits that host significant numbers of critical facilities into smaller segments for outage management purposes to enable more granular and flexible outage management;
(3)  identify feeders with critical facilities that, if equipped with facility-specific backup power systems and segmentation, can enhance the utility's outage management flexibility; and
(4)  include an estimate of the time, capital cost, and expected improvements to load-shed management associated with the circuit segmentation study.
(c)  Each transmission and distribution utility shall submit a report of the conclusions of the utility's study to the commission not later than September 1, 2024.
(d)  The commission shall review each circuit segmentation study not later than March 15, 2025.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 13, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter E. Infrastructure Improvement and Maintenance Report › Section 38.101. Report on Infrastructure Improvement and Maintenance

Sec. 38.101.  REPORT ON INFRASTRUCTURE IMPROVEMENT AND MAINTENANCE.  (a)  Not later than May 1 of each year, each electric utility shall submit to the commission a report describing the utility's activities related to:
(1)  identifying areas that are susceptible to damage during severe weather and hardening transmission and distribution facilities in those areas;
(2)  vegetation management; and
(3)  inspecting distribution poles.
(b)  Each electric utility shall include in a report required under Subsection (a) a summary of the utility's activities related to preparing for emergency operations.
Added by Acts 2009, 81st Leg., R.S., Ch. 1280 (H.B. 1831), Sec. 2.03, eff. September 1, 2009.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter F. Texas Electricity Supply Chain Security and Mapping Committee › Section 38.201. Texas Electricity Supply Chain Security and Mapping Committee

Sec. 38.201.  TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND MAPPING COMMITTEE.  (a)  In this subchapter, "electricity supply chain" means:
(1)  facilities and methods used for producing, treating, processing, pressurizing, storing, or transporting natural gas for delivery to electric generation facilities;
(2)  critical infrastructure necessary to maintain electricity service; and
(3)  roads necessary to access facilities in the electricity supply chain.
(a-1)  A reference in this subchapter to the "electricity supply chain" includes water and wastewater treatment plants.
(b)  The Texas Electricity Supply Chain Security and Mapping Committee is established to:
(1)  map this state's electricity supply chain;
(2)  identify critical infrastructure sources in the electricity supply chain;
(3)  establish best practices to prepare facilities in the electricity supply chain to maintain service in an extreme weather event and recommend oversight and compliance standards for those facilities; and
(4)  designate priority service needs to prepare for, respond to, and recover from an extreme weather event.
(c)  The committee is composed of:
(1)  the executive director of the commission;
(2)  the executive director of the Railroad Commission of Texas;
(3)  the president and the chief executive officer of the independent organization certified under Section 39.151 for the ERCOT power region;
(4)  the chief of the Texas Division of Emergency Management; and
(5)  the executive director of the Texas Department of Transportation.
(d)  Each member of the committee may designate a personal representative from the member's organization to represent the member on the committee. A member is responsible for the acts and omissions of the designee related to the designee's representation on the committee.
(e)  The executive director of the commission serves as the chair of the committee. The executive director of the Railroad Commission of Texas serves as vice chair of the committee.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 17, eff. June 8, 2021.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 85 (S.B. 1093), Sec. 2, eff. May 19, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter F. Texas Electricity Supply Chain Security and Mapping Committee › Section 38.202. Administration

Sec. 38.202.  ADMINISTRATION.  (a)  The committee shall meet at least once each calendar quarter at a time determined by the committee and at the call of the chair.
(b)  A member who is an ex officio member from a state agency shall be reimbursed for actual and necessary expenses in carrying out committee responsibilities from money appropriated for that purpose in the agency's budget. Other members of the committee may receive reimbursement for actual and necessary expenses in carrying out committee responsibilities from money appropriated for that purpose.
(c)  The commission, the Railroad Commission of Texas, the Texas Division of Emergency Management, and the Texas Department of Transportation shall provide staff as necessary to assist the committee in carrying out the committee's duties and responsibilities.
(d)  The independent organization certified under Section 39.151 for the ERCOT power region shall provide staff as necessary to assist the committee in carrying out the committee's duties and responsibilities.
(e)  Except as otherwise provided by this subchapter, the committee is not subject to Chapters 2001, 551, and 552, Government Code.
(f)  Information written, produced, collected, assembled, or maintained under law or in connection with the transaction of official business by the committee or an officer or employee of the committee is subject to Section 552.008, Government Code.  This subsection does not apply to the physical locations of critical facilities, maps created under this subchapter, or proprietary information created or gathered during the mapping process.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 17, eff. June 8, 2021.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 85 (S.B. 1093), Sec. 3, eff. May 19, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter F. Texas Electricity Supply Chain Security and Mapping Committee › Section 38.203. Powers and Duties of Committee

Sec. 38.203.  POWERS AND DUTIES OF COMMITTEE.  (a)  The committee shall:
(1)  map the state's electricity supply chain in order to designate priority electricity service needs during extreme weather events;
(2)  identify and designate the sources in the electricity supply chain necessary to operate critical infrastructure, as defined by Section 421.001, Government Code;
(3)  develop a communication system between critical infrastructure sources, the commission, and the independent organization certified under Section 39.151 for the ERCOT power region to ensure that electricity and natural gas supplies in the electricity supply chain are prioritized to those sources during an extreme weather event; and
(4)  establish best practices to prepare facilities in the electricity supply chain to maintain service in an extreme weather event and recommend oversight and compliance standards for those facilities.
(b)  The committee shall update the electricity supply chain map at least once each year.
(c)  The commission shall:
(1)  create and maintain a database identifying critical infrastructure sources with priority electricity needs to be used during an extreme weather event; and
(2)  update the database at least once each year.
(d)  The information maintained in the database is confidential under Section 418.181, Government Code, and not subject to disclosure under Chapter 552, Government Code.
(e)  The committee shall provide the Texas Energy Reliability Council with access to the electricity supply chain map.
(f)  On request, the committee shall provide view-only access to the electricity supply chain map to:
(1)  an electric utility, a transmission and distribution utility, an electric cooperative, or a municipally owned utility;
(2)  an operator of a gas supply chain facility, as defined by Section 86.044, Natural Resources Code; or
(3)  an operator of a gas pipeline facility described by Section 121.2015.
(g)  Access to the electricity supply chain map by an entity described by Subsection (f)(1) is limited to the critical natural gas facilities on the map that are located in the requesting entity's service area.
(h)  The committee may not provide an entity described by Subsection (f)(1) with access to the electricity supply chain map unless the entity has complied with Section 37.157.
(i)  Access to the electricity supply chain map by an operator described by Subsections (f)(2) and (3) is limited to the critical natural gas facilities operated by the requesting operator.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 17, eff. June 8, 2021.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 85 (S.B. 1093), Sec. 4, eff. May 19, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 38 - Regulation of Electric Services › Subchapter F. Texas Electricity Supply Chain Security and Mapping Committee › Section 38.204. Mapping Report

Sec. 38.204.  MAPPING REPORT.  (a)  Not later than January 1, 2022, the committee shall submit a report to the governor, the lieutenant governor, the speaker of the house of representatives, the legislature, and the Texas Energy Reliability Council on the activities and findings of the committee.  The report must:
(1)  provide an overview of the committee's findings regarding mapping the electricity supply chain and identifying sources necessary to operate critical infrastructure;
(2)  recommend a clear and thorough communication system for the commission, the Railroad Commission of Texas, the Texas Division of Emergency Management, and the independent organization certified under Section 39.151 for the ERCOT power region and critical infrastructure sources in this state to ensure that electricity supply is prioritized to those sources during extreme weather events; and
(3)  include a list of the established best practices and recommended oversight and compliance standards adopted under Section 38.203(a)(4).
(b)  The report is public information except for portions considered confidential under Chapter 552, Government Code, or other state or federal law.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 17, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter A. General Provisions › Section 39.002. Applicability

Sec. 39.002.  APPLICABILITY.  This chapter, other than Sections 39.151, 39.1516, 39.155, 39.157(e), 39.161, 39.162, 39.163, 39.203, 39.9051, 39.9052, and 39.914(e), and Subchapters M and N, does not apply to a municipally owned utility or an electric cooperative. Sections 39.157(e) and 39.203 apply only to a municipally owned utility or an electric cooperative that is offering customer choice. If there is a conflict between the specific provisions of this chapter and any other provisions of this title, except for Chapters 40 and 41, the provisions of this chapter control.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 19, eff. September 1, 2007.
Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 16.001, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 610 (S.B. 936), Sec. 2, eff. September 1, 2019.
Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 2, eff. June 16, 2021.
Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 2, eff. June 18, 2021.
Reenacted and amended by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 14, eff. September 1, 2023.
Reenacted and amended by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 22.003(a), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter A. General Provisions › Section 39.003. Contested Cases

Sec. 39.003.  CONTESTED CASES.  Unless specifically provided otherwise, each commission proceeding under this chapter, other than a rulemaking proceeding, report, notification, or registration, shall be conducted as a contested case and the burden of proof is on the incumbent electric utility.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter B. Transition to Competitive Retail Electric Market › Section 39.052. Freeze on Existing Retail Base Rate Tariffs

Sec. 39.052.  FREEZE ON EXISTING RETAIL BASE RATE TARIFFS.  (a)  Until January 1, 2002, an electric utility shall provide retail electric service within its certificated service area in accordance with the electric utility's retail base rate tariffs in effect on September 1, 1999, including its purchased power cost recovery factor.
(b)  During the freeze period, an electric utility may not increase its retail base rates above the rates provided by this section except for losses caused by force majeure as provided by Section 39.055.
(c)  Notwithstanding any other provision of this title, during the freeze period the regulatory authority may not reduce the retail base rates of an electric utility, except as may be ordered as stipulated to by an electric utility in a proceeding for which a final order had not been issued by January 1, 1999.
(d)  During the freeze period, the retail base rates, overall revenues, return on invested capital, and net income of an electric utility are not subject to complaint, hearing, or determination as to reasonableness.
(e)  An electric utility that has a rate proceeding pending before the commission as of January 2, 1999, shall provide service in accordance with the tariffs approved in that proceeding from the date of approval until the end of the freeze period.
(f)  Nothing in this section affects the authority of the commission to fulfill its obligations under Section 39.262.
(g)  Nothing in this section shall deny a utility its right to have the commission conduct proceedings and issue a final order pertaining to any matter that may be remanded to the commission by a court having jurisdiction, except that the final order may not affect the rates charged to customers during the freeze period but shall be taken into account during the utility's true-up proceeding under Section 39.262.
(h)  Nothing in this title shall be construed to prevent an electric utility or a transmission and distribution utility from filing, and the commission from approving, a change in wholesale transmission service rates during the freeze period.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter B. Transition to Competitive Retail Electric Market › Section 39.053. Cost Recovery Adjustments

Sec. 39.053.  COST RECOVERY ADJUSTMENTS.  This subchapter does not limit or alter the ability of an electric utility during the freeze period to revise its fuel factor or to reconcile fuel expenses and to either refund fuel overcollections or surcharge fuel undercollections to customers, as authorized by its tariffs and Sections 36.203 and 36.205.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter B. Transition to Competitive Retail Electric Market › Section 39.054. Retail Electric Service During Freeze Period

Sec. 39.054.  RETAIL ELECTRIC SERVICE DURING FREEZE PERIOD.  (a)  An electric utility shall provide retail electric service during the freeze period in accordance with any contract terms applicable to a particular retail customer approved by the regulatory authority and in effect on December 31, 1998.
(b)  Nothing in Sections 39.052(c) and (d) shall be construed to restrict any customer's right to complain during the freeze period to the regulatory authority regarding the quality of retail electric service provided by the electric utility or the applicability of an electric utility's particular tariff to the customer.
(c)  Nothing in this title shall be construed to restrict an electric utility, voluntarily and at its sole discretion, from offering new services or new tariff options to its customers during the freeze period, consistent with Section 39.051(a).
(d)  Any offering of new services or tariff options under this section shall be equal to or greater than an electric utility's long-run marginal cost and may not be unreasonably preferential, prejudicial, discriminatory, predatory, or anticompetitive.
(e)  Revenue from any new offering under this section shall be accounted for in a manner consistent with Section 36.007.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter B. Transition to Competitive Retail Electric Market › Section 39.055. Force Majeure

Sec. 39.055.  FORCE MAJEURE.  (a)  An electric utility may recover losses resulting from force majeure through an increase in its retail base rates during the freeze period.
(b)  Notwithstanding Subchapter C, Chapter 36, the regulatory authority, after a hearing to determine the electric utility's losses from force majeure, shall permit the utility to fully collect any approved force majeure increase through an appropriate customer surcharge mechanism.
(c)  For purposes of this section, "force majeure" means a major event or combination of major events, including new or expanded state or federal statutory or regulatory requirements;  hurricanes, tornadoes, ice storms, or other natural disasters;  or acts of war, terrorism, or civil disturbance, beyond the control of an electric utility that the regulatory authority finds increases the utility's total reasonable and necessary nonfuel costs or decreases the utility's total nonfuel revenues related to the generation and delivery of electricity by more than 10 percent for any calendar year during the freeze period.  The term does not include any changes in general economic conditions such as inflation, interest rates, or other factors of general application.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.102. Retail Customer Choice

Sec. 39.102.  RETAIL CUSTOMER CHOICE.  (a)  Each retail customer in this state, except retail customers of electric cooperatives and municipally owned utilities that have not opted for customer choice, shall have customer choice on and after January 1, 2002.
(b)  The affiliated retail electric provider of the electric utility serving a retail customer on December 31, 2001, may continue to serve that customer until the customer chooses service from a different retail electric provider, an electric cooperative offering customer choice, or a municipally owned utility offering customer choice.
(c)  An electric utility that has in effect a systemwide freeze for residential and commercial customers in effect September 1, 1997, extending beyond December 31, 2001, that has been found by a regulatory authority to be in the public interest is not subject to this chapter.  At the expiration of the utility's freeze period, the utility shall be subject to this chapter and, at that time, has no claim for stranded cost recovery.
(d)  The commission shall oversee the compliance with this chapter by electric utilities that were not subject to this chapter before September 1, 2003, and in so doing shall establish schedules and procedures and require commission approvals as it deems necessary to achieve the objectives of this chapter.  This subsection does not apply to an electric utility to which Subsection (c) applies.
(e)  In establishing a schedule under Subsection (d), the commission shall consider:
(1)  the effect of customer choice on the reliability of service provided by the electric utility;
(2)  whether the electric utility's service area is located in more than one power region;
(3)  whether any applicable power region has been certified as a qualifying power region under Section 39.152(a);
(4)  whether other electric utilities in the power region offer retail customer choice;  and
(5)  any other relevant factor.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.  Amended by Acts 2003, 78th Leg., ch. 1327, Sec. 2, eff. Sept. 1, 2003.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.1025. Limitations on Telephone Solicitation

Sec. 39.1025.  LIMITATIONS ON TELEPHONE SOLICITATION.  (a)  A person may not make or cause to be made a telephone solicitation to a nonresidential electric customer who has given notice to the commission of the customer's objection to receiving telephone solicitations relating to the customer's choice of retail electric providers.
(b)  The commission shall establish and provide for the operation of a database to compile a list of nonresidential electric customers who object to receiving telephone solicitations.  The commission may operate the database or contract with another entity to operate the database.
(c)  A customer shall pay a fee of not more than $5 for inclusion in the database.  The commission shall prescribe the amount of the fee.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 171 (H.B. 210), Sec. 3, eff. May 27, 2005.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.103. Commission Authority to Delay Competition and Set New Rates

Sec. 39.103.  COMMISSION AUTHORITY TO DELAY COMPETITION AND SET NEW RATES.  If the commission determines under Section 39.104 that a power region is unable to offer fair competition and reliable service to all retail customer classes on January 1, 2002, the commission shall delay customer choice for the power region and may on or after January 1, 2002, establish new rates for all electric utilities in the power region as provided by Chapter 36.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.104. Customer Choice Pilot Projects

Sec. 39.104.  CUSTOMER CHOICE PILOT PROJECTS.  (a)  Customer choice pilot projects may be used to allow the commission to evaluate the ability of each power region and electric utility to implement customer choice.  However, in a multiply certificated area, an electric utility may not include customers that were served by an electric cooperative or a municipally owned utility on May 1, 1999.
(b)  The commission shall require each electric utility to offer customer choice in its service area within this state amounting to five percent of the utility's combined load of all customer classes within this state beginning on June 1, 2001.
(c)  The load designated for customer choice under this section shall be distributed among all customer classes of a utility consistent with the purpose of this section and subject to commission approval.
(d)  Customers participating in a pilot project under this section may buy electric energy from any retail electric provider certified by the commission under Section 39.352, including an affiliated retail electric provider;  provided, however, that a retail electric provider may not participate in a pilot project in the certificated service area served by the electric utility with which it is affiliated.
(e)  Each utility operating a pilot project under this section shall charge residential and small commercial customers in accordance with Section 39.052.
(f)  The commission may prescribe reporting requirements it considers necessary to evaluate a pilot project consistent with the purpose of this section.
(g)  Customers having customer choice under this section shall be billed as provided by Section 39.107.
(h)  The commission may prescribe terms and conditions it considers necessary to prohibit anticompetitive practices and to encourage customer choice offered under this section.
(i)  Notwithstanding any other provision of this title, a retail electric provider participating in a pilot project under this section is not an electric utility or a retail electric utility.
(j)  Twenty percent of the load designated for customer choice under this section shall be initially set aside for aggregated loads.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.105. Limitation on Sale of Electricity

Sec. 39.105.  LIMITATION ON SALE OF ELECTRICITY.  (a)  After January 1, 2002, a transmission and distribution utility may not sell electricity or otherwise participate in the market for electricity except for the purpose of buying electricity to serve its own needs.
(b)  A person or retail electric utility may not provide, furnish, or make available electric service at retail within the certificated service area of an electric cooperative that has not adopted customer choice or a municipally owned utility that has not adopted customer choice.  However, this subsection does not prohibit the provision of electric service in multiply certificated service areas to customers of any other retail electric utility.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.106. Provider of Last Resort

Sec. 39.106.  PROVIDER OF LAST RESORT.  (a)  The commission shall designate retail electric providers in areas of the state in which customer choice is in effect to serve as providers of last resort.
(b)  A provider of last resort shall offer a standard retail service package for each class of customers designated by the commission at a fixed, nondiscountable rate approved by the commission.
(c)  A provider of last resort shall provide the standard retail service package to any requesting customer in the territory for which it is the provider of last resort.
(d)  The commission shall designate the provider or providers of last resort not later than June 1, 2001.
(e)  The commission shall determine the procedures and criteria, which may include the solicitation of bids, for designating a provider or providers of last resort.  The commission may redesignate the provider of last resort according to a schedule it considers appropriate.
(f)  In the event that no retail electric provider applies to be the provider of last resort for a given area of the state on reasonable terms and conditions, the commission may require a retail electric provider to become the provider of last resort as a condition of receiving or maintaining a certificate under Section 39.352.
(g)  In the event that a retail electric provider fails to serve any or all of its customers, the provider of last resort shall offer that customer the standard retail service package for that customer class with no interruption of service to any customer.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.108. Contractual Obligations

Sec. 39.108.  CONTRACTUAL OBLIGATIONS.  This chapter may not:
(1)  interfere with or abrogate the rights or obligations of any party, including a retail or wholesale customer, to a contract with an investor-owned electric utility, river authority, municipally owned utility, or electric cooperative;
(2)  interfere with or abrogate the rights or obligations of a party under a contract or agreement concerning certificated utility service areas;  or
(3)  result in a change in wholesale power costs to wholesale customers in Texas purchasing electricity under wholesale power contracts the pricing provisions of which are based on formulary rates, fuel adjustments, or average system costs.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.109. New Owner or Successor

Sec. 39.109.  NEW OWNER OR SUCCESSOR.  (a)  To ensure the continued safe and reliable operation of electric generating facilities, the commission shall require a generating facility that is transferred to a new owner or successor in interest between June 1, 1999, and January 1, 2002, to continue to be operated and maintained by the same operating personnel for not less than two years, except that the personnel may be dismissed for cause.
(b)  This section shall apply only if the facility is actually operated during the two-year period after the sale.
(c)  This section shall not require that the purchaser cause the facility to be operated in whole or in part, nor shall it preclude a temporary closure of the facility during the two-year period.
(d)  This section shall not create any obligation extending after the two-year period following the sale.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter C. Retail Competition › Section 39.110. Wholesale Indexed Products Prohibited

Sec. 39.110.  WHOLESALE INDEXED PRODUCTS PROHIBITED.  (a)  In this section, "wholesale indexed product" means a retail electric product in which the price a customer pays for electricity includes a direct pass-through of real-time settlement point prices determined by the independent organization certified under Section 39.151 for the ERCOT power region.
(b)  An aggregator, a broker, or a retail electric provider may not offer a wholesale indexed product to a residential or small commercial customer.
(c)  An aggregator, a broker, or a retail electric provider may enroll a customer other than a residential and small commercial customer in a wholesale indexed product only if the provider, aggregator, or broker obtains before the customer's enrollment an acknowledgment signed by the customer that the customer accepts the potential price risks associated with a wholesale indexed product.
(d)  An acknowledgment required by Subsection (c) must include the following statement, in clear, boldfaced text:
"I understand that the volatility and fluctuation of wholesale energy pricing may cause my energy bill to be multiple times higher in a month in which wholesale energy prices are high.  I understand that I will be responsible for charges caused by fluctuations in wholesale energy prices."
(e)  An acknowledgment required by Subsection (c) may be included as an addendum to a contract.
(f)  A retail electric provider that provides a wholesale indexed product to a customer must keep on file the acknowledgment required by Subsection (c) for each customer while the customer is enrolled with the retail electric provider in the wholesale indexed product.
Added by Acts 2021, 87th Leg., R.S., Ch. 132 (H.B. 16), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1511. Public Meetings of the Governing Body of an Independent Organization

Sec. 39.1511.  PUBLIC MEETINGS OF THE GOVERNING BODY OF AN INDEPENDENT ORGANIZATION.  (a)  Meetings of the governing body of an independent organization certified under Section 39.151 and meetings of a subcommittee that includes a member of the governing body must be open to the public.  The bylaws of the independent organization and the rules of the commission may provide for the governing body or subcommittee to enter into executive session closed to the public only to address risk management or a matter that the independent organization would be authorized to consider in a closed meeting if the independent organization were governed under Chapter 551, Government Code.
(a-1)  An independent organization's governing body or a subcommittee may adopt a policy allowing the governing body or subcommittee to enter into an executive session closed to the public and commissioners, including the commissioners serving as ex officio nonvoting members, only to address a contested case, as defined by Section 2001.003, Government Code, or a personnel matter that is unrelated to members of the governing body.
(b)  The bylaws of the independent organization and rules of the commission must ensure that a person interested in the activities of the independent organization has an opportunity to obtain at least seven days' advance notice of meetings and the planned agendas of the meetings and an opportunity to comment on matters under discussion at the meetings.  The bylaws and commission rules governing meetings of the governing body may provide for a shorter period of advance notice and for meetings by teleconference technology for governing body meetings to take action on urgent matters.  The bylaws and rules must require actions taken on short notice or at teleconference meetings to be ratified at the governing body's next regular meeting.  The notice requirements may be met by a timely electronic posting on the Internet.
(c)  The commission shall ensure that an independent organization certified under Section 39.151 makes publicly accessible without charge live Internet video of all public meetings subject to this section for viewing from an Internet website.
Added by Acts 2005, 79th Leg., Ch. 797 (S.B. 408), Sec. 10, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 400 (H.B. 1783), Sec. 2, eff. September 1, 2009.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 16, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1512. Disclosure of Interest in Matter Before Independent Organization's Governing Body; Participation in Decision

Sec. 39.1512.  DISCLOSURE OF INTEREST IN MATTER BEFORE INDEPENDENT ORGANIZATION'S GOVERNING BODY; PARTICIPATION IN DECISION.  (a)  If a matter comes before the governing body of an independent organization certified under Section 39.151 and a member has a direct interest in that matter or is employed by or has a substantial financial interest in a person who has a direct interest in that matter, that member shall publicly disclose the fact of that interest to the governing body at a public meeting of the body.  The member shall recuse himself or herself from the governing body's deliberations and actions on the matter and may not vote on the matter or otherwise participate in a governing body decision on the matter.
(b)  A disclosure made under Subsection (a) shall be entered in the minutes of the meeting at which the disclosure is made.
(c)  The fact that a member is recused from a vote or decision by application of this section does not affect the existence of a quorum.
Added by Acts 2005, 79th Leg., Ch. 797 (S.B. 408), Sec. 10, eff. September 1, 2005.