reglab/statecodes huggingface dataset:
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.902. Customer Education

Sec. 39.902.  CUSTOMER EDUCATION.  (a)  On or before January 1, 2001, the commission shall develop and implement an educational program to inform customers, including low-income and non-English-speaking customers, about changes in the provision of electric service resulting from the opening of the retail electric market and the customer choice pilot program under this chapter.  The educational program shall be neutral and nonpromotional and shall provide customers with the information necessary to make informed decisions relating to the source and type of electric service available for purchase and other information the commission considers necessary.  The educational program shall inform customers of their rights and of the protections available through the commission and the office.  The educational program may not duplicate customer information efforts undertaken by retail electric providers or other private entities.  The educational program may not be targeted to areas served by municipally owned utilities or electric cooperatives that have not adopted customer choice.  In planning and implementing this program, the commission shall consult with the office, with the Texas Department of Housing and Community Affairs, and with customers of and providers of retail electric service.  The commission may enter into contracts for professional services to carry out the customer education program.
(b)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 1083, Sec. 25(162), eff. June 17, 2011.
(c)  After the opening of the retail electric market, the commission shall conduct ongoing customer education designed to help customers make informed choices of electric services and retail electric providers.  As part of ongoing education, the commission may provide customers information concerning specific retail electric providers, including instances of complaints against them and records relating to quality of customer service.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1083 (S.B. 1179), Sec. 25(162), eff. June 17, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9025. Home Electric Energy Reports

Sec. 39.9025.  HOME ELECTRIC ENERGY REPORTS.  The commission may encourage retail electric providers to deliver individualized home electric energy reports to educate consumers about electric energy use and energy efficiency to assist consumers to use energy more efficiently.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 21, eff. September 1, 2007.
This section expired September 1, 2017, according to the date provided by Subsection (m).
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9048. Natural Gas Fuel

Sec. 39.9048.  NATURAL GAS FUEL.  It is the intent of the legislature that:
(1)  the cost of generating electricity remain as low as possible;  and
(2)  the state establish and publicize a program to keep the costs of fuel, such as natural gas, used for generating electricity low.
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 Z. Miscellaneous Provisions › Section 39.9051. Energy Efficiency for Municipally Owned Utilities

Sec. 39.9051.  ENERGY EFFICIENCY FOR MUNICIPALLY OWNED UTILITIES.  (a)  In this section, "municipally owned utility" has the meaning assigned by Section 11.003.
(b)  This section applies only to a municipally owned utility that had retail sales of more than 500,000 megawatt hours in 2005.
(c)  It is the goal of the legislature that:
(1)  municipally owned utilities will administer energy savings incentive programs;
(2)  customers of a municipally owned utility will have a choice of and access to energy efficiency alternatives that allow customers to reduce energy consumption, peak demand, or energy costs; and
(3)  each municipally owned utility will provide incentives sufficient for municipally owned utilities to acquire additional cost-effective energy efficiency.
(d)  The governing body of a municipally owned utility shall provide oversight and adopt rules and procedures, as necessary, to ensure that the utility can achieve the goal of this section.
(e)  If a municipally owned utility adopts customer choice by decision of the governing body under Chapter 40, the commission shall provide oversight and adopt rules and procedures, as necessary, to ensure that the municipally owned utility can achieve the goal in this section in a market-neutral, nondiscriminatory manner.  The commission shall, to the extent possible, include existing energy efficiency programs already adopted by the municipally owned utility.
(f)  Beginning April 1, 2012, a municipally owned utility must report each year to the State Energy Conservation Office, on a standardized form developed by the office, information regarding the combined effects of the energy efficiency activities of the utility from the previous calendar year, including the utility's annual goals, programs enacted to achieve those goals, and any achieved energy demand or savings goals.
(g)  The State Energy Conservation Office shall provide the reports made under Subsection (f) to the Energy Systems Laboratory at the Texas Engineering Experiment Station of The Texas A&M University System.  The laboratory shall calculate the energy savings and estimated pollution reductions that resulted from the reported activities.
(h)  The energy systems laboratory shall share the results of the analysis with the Public Utility Commission of Texas, ERCOT, the United States Environmental Protection Agency, and the Texas Commission on Environmental Quality.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 23, eff. September 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1068 (S.B. 924), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9052. Energy Efficiency for Electric Cooperatives

Sec. 39.9052.  ENERGY EFFICIENCY FOR ELECTRIC COOPERATIVES.  (a)  An electric cooperative shall consider adopting and implementing energy efficiency programs that reduce the cooperative's annual growth in demand in a manner consistent with standards established in the state for other utilities.
(b)  Beginning April 1, 2012, an electric cooperative that had retail sales of more than 500,000 megawatt hours in 2005 must report each year to the State Energy Conservation Office, on a standardized form developed by the office, information regarding the combined effects of the energy efficiency activities of the electric cooperative from the previous calendar year, including the electric cooperative's annual goals, programs enacted to achieve those goals, and any achieved energy demand or savings goals.
(c)  The State Energy Conservation Office shall provide the reports made under Subsection (b) to the Energy Systems Laboratory at the Texas Engineering Experiment Station of The Texas A&M University System.  The laboratory shall calculate the energy savings and estimated pollution reductions that resulted from the reported activities.
(d)  The energy systems laboratory shall share the results of the analysis with the Public Utility Commission of Texas, ERCOT, the United States Environmental Protection Agency, and the Texas Commission on Environmental Quality.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 23, eff. September 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1068 (S.B. 924), Sec. 2, eff. September 1, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9054. Energy Efficiency Plans and Reports; Public Information

Sec. 39.9054.  ENERGY EFFICIENCY PLANS AND REPORTS; PUBLIC INFORMATION.  (a)  An electric utility shall submit electronically an energy efficiency plan and report in a searchable form prescribed by the commission on or before April 1 of each year.  The commission by rule shall adopt a form that will permit the public to easily compare information submitted by different electric utilities.  The plan and report must:
(1)  provide information on the utility's performance in achieving energy efficiency goals for the previous five years;
(2)  describe how the utility intends to achieve future goals; and
(3)  provide any other information the commission considers relevant.
(b)  On the Internet website found at http://www.puc.state.tx.us, the commission shall publish information on energy efficiency programs, including:
(1)  an explanation of the goal for energy efficiency in this state;
(2)  a description of the types of energy efficiency programs available to certain classes of eligible customers;
(3)  a link to the plans and reports filed as prescribed by Subsection (a); and
(4)  a list of persons who install or provide energy efficiency measures or services by area.
(c)  This section does not require the commission to warrant that the list required to be displayed under Subsection (b) constitutes a complete or accurate list of all persons who install energy efficiency measures or services in the marketplace.
Added by Acts 2011, 82nd Leg., R.S., Ch. 180 (S.B. 1125), Sec. 2, eff. September 1, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9055. Examination of Demand Response Potential of Seawater Desalination Projects

Sec. 39.9055.  EXAMINATION OF DEMAND RESPONSE POTENTIAL OF SEAWATER DESALINATION PROJECTS.  The commission and the ERCOT independent system operator shall study the potential for seawater desalination projects to participate in existing demand response opportunities in the ERCOT market.  To the extent feasible, the study shall determine whether the operational characteristics of seawater desalination projects enable projects of that kind to participate in ERCOT-operated ancillary services markets or other competitively supplied demand response opportunities.  The study shall also determine the potential economic benefit to a seawater desalination project if the project is able to reduce its demand during peak pricing periods.  The commission shall include the results of the study in the report required by Section 12.203.
Added by Acts 2015, 84th Leg., R.S., Ch. 829 (H.B. 4097), Sec. 2, eff. June 17, 2015.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 35, 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 Z. Miscellaneous Provisions › Section 39.906. Displaced Workers

Sec. 39.906.  DISPLACED WORKERS.  In order to mitigate potential negative impacts on utility personnel directly affected by electric industry restructuring, the commission shall allow the recovery of reasonable employee-related transition costs incurred and projected for severance, retraining, early retirement, outplacement, and related expenses for the employees.
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 Z. Miscellaneous Provisions › Section 39.908. Effect of Sunset Provision

Sec. 39.908.  EFFECT OF SUNSET PROVISION.   If the commission is abolished under Section 12.005 or other law, the authorities, duties, and functions of the commission under this chapter shall be performed and carried out by a successor agency to be designated by the legislature before abolishment of the commission or, if the legislature does not designate the successor, by the secretary of state.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 36, 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 Z. Miscellaneous Provisions › Section 39.909. Plan and Report of Workforce Diversity and Other Business Practices

Sec. 39.909.  PLAN AND REPORT OF WORKFORCE DIVERSITY AND OTHER BUSINESS PRACTICES.  (a)  In this section, "small business" and "historically underutilized business" have the meanings assigned by former Section 481.191, Government Code, as that section existed on January 1, 2015.
(b)  Before January 1, 2000, each electric utility shall develop and submit to the commission a comprehensive five-year plan to enhance diversity of its workforce in all occupational categories and to increase contracting opportunities for small and historically underutilized businesses.  The plan must consist of:
(1)  the electric utility's historical and current performance with regard to workforce diversity and contracting with small and historically underutilized businesses;
(2)  initiatives that the electric utility will pursue in these areas over the period of the plan;
(3)  a listing of programs and activities the electric utility will undertake to achieve each of those initiatives;  and
(4)  a listing of the business partnership initiatives the electric utility will undertake to facilitate small and historically underutilized business entry into the electric energy market as generators and retail energy providers taking into account opportunities for contracting and joint ventures.
(c)  Each electric utility shall submit an annual report to the commission and the legislature relating to its efforts to improve workforce diversity and contracting opportunities for small and historically underutilized businesses.  The report must be submitted on October 1 of each year or may be included as part of any other annual report submitted by the electric utility to the commission.  The report must include:
(1)  the diversity of the electric utility's workforce as of the time of the report;
(2)  the electric utility's level of contracting with small and historically underutilized businesses;
(3)  the specific progress made under the plan under Subsection (b);
(4)  the specific initiatives, programs, and activities undertaken under the plan during the preceding year;
(5)  an assessment of the success of each of those initiatives, programs, and activities;
(6)  the extent to which the electric utility has carried out its initiatives to facilitate opportunities for contracts or joint ventures with small and historically underutilized businesses;  and
(7)  the initiatives, programs, and activities the electric utility will pursue during the next year to increase the diversity of its workforce and contracting opportunities for small and historically underutilized businesses.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 364 (H.B. 2667), Sec. 4, eff. September 1, 2015.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.910. Incentive Program and Goal for Energy Efficiency for Military Bases

Sec. 39.910.  INCENTIVE PROGRAM AND GOAL FOR ENERGY EFFICIENCY FOR MILITARY BASES.  (a)  The commission by rule shall establish an electric energy efficiency incentive program under which each electric utility in an area where customer choice is not available will provide incentives sufficient for military bases, retail electric providers, or competitive energy service providers to install energy efficiency devices or other alternatives at military bases.  The commission shall design the program to provide military bases with a variety of choices for cost-effective energy efficiency devices and other alternatives from the market to reduce energy consumption and energy costs.
(b)  The commission shall establish a goal for the program to reduce, before January 1, 2005, the consumption of electricity by military bases in this state by five percent as compared to consumption levels in 2002.
(c)  The commission shall approve a nonbypassable surcharge or other rate mechanism to recover costs associated with the program established under this section.
(d)  An electric utility shall administer the electric energy efficiency incentive program in a market-neutral, nondiscriminatory manner.  An electric utility may not offer underlying competitive services.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 23, eff. May 27, 2003.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.911. Alternative Funding for Energy Efficiency and Renewable Energy Systems

Sec. 39.911.  ALTERNATIVE FUNDING FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SYSTEMS.  The State Energy Conservation Office, in coordination with the governor, the Department of Agriculture, the Texas Commission on Environmental Quality, the Texas Education Agency, the commission, and other appropriate state agencies, shall solicit gifts, grants, and other financial resources available to fund energy efficiency improvements and renewable energy systems for public and private facilities in this state.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 23, eff. September 1, 2007.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9111. Rules Related to Renewable Power Facilities

Sec. 39.9111.  RULES RELATED TO RENEWABLE POWER FACILITIES.  The commission may adopt rules requiring renewable power facilities to have reactive power control capabilities or any other feasible technology designed to reduce the facilities' effects on system reliability.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 37, 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 Z. Miscellaneous Provisions › Section 39.9112. Report on Transmission and Generation Capacity

Sec. 39.9112.  REPORT ON TRANSMISSION AND GENERATION CAPACITY.  The commission and the independent organization certified under Section 39.151 for the ERCOT power region shall study the need for increased transmission and generation capacity throughout this state and report to the legislature the results of the study and any recommendations for legislation.  The report must be filed with the legislature not later than December 31 of each even-numbered year.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 37, 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 Z. Miscellaneous Provisions › Section 39.9113. Renewable Energy Credits

Sec. 39.9113.  RENEWABLE ENERGY CREDITS.  To facilitate voluntary contractual obligations and verify claims regarding environmental attributes of renewable energy production in this state, the independent organization certified under Section 39.151 for the ERCOT power region shall maintain an accreditation and banking system to award and track voluntary renewable energy credits generated by eligible facilities.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 37, 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 Z. Miscellaneous Provisions › Section 39.912. Report on Combined Heating and Power Technology

Sec. 39.912.  REPORT ON COMBINED HEATING AND POWER TECHNOLOGY.  The commission shall study the installation and use of combined heating and power technology in this state, and shall submit a report regarding the commission's findings to the 81st Legislature.  The report shall include:
(1)  an explanation describing combined heating and power technology and its use; and
(2)  an explanation of how combined heating and power technology can be implemented in this state to meet energy efficiency goals.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 23, eff. September 1, 2007.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.913. Combining Certain Reports

Sec. 39.913.  COMBINING CERTAIN REPORTS.  The commission may combine the reports required under Sections 39.905(b-2) and 39.912.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 23, eff. September 1, 2007.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.919. Average Total Residential Load Reduction Goals

Sec. 39.919.  AVERAGE TOTAL RESIDENTIAL LOAD REDUCTION GOALS.  (a)  The commission by rule shall establish goals in the ERCOT power region to reduce the average total residential load.
(b)  The rules adopted under Subsection (a) must provide for the adoption of a program that:
(1)  provides demand response participation to residential customers where reasonably available;
(2)  promotes the use of smart metering technology;
(3)  is capable of responding to an emergency energy alert about low operating reserves issued by the independent organization certified under Section 39.151 for the ERCOT power region;
(4)  provides opportunities for demand response providers to contract with retail electric providers to provide demand response services;
(5)  ensures the program does not impact the critical needs of vulnerable populations;
(6)  facilitates the widespread deployment of smart responsive appliances and devices in a manner that enables the customer's appliance or device to be enrolled as part of a demand response product or plan offered by a retail electric provider;
(7)  establishes the method by which the components of the ratio described by Subsection (c) are calculated for purposes of determining whether the goals described by Subsection (a) have been achieved;
(8)  provides for achievement of demand reductions within both summer and winter seasons; and
(9)  allows a retail electric provider that offers a demand response program under this section to obtain funding for the demand response program through an energy efficiency incentive program established under Section 39.905 if the program complies with commission requirements related to the evaluation, measurement, and verification of demand response programs adopted under Section 39.905.
(c)  The goals described by Subsection (a) must be calculated as a ratio by dividing the amount of load reduced at peak demand by the total amount of demand, at the same time, of all residential customers who have responsive appliances or devices at their premises that reduce the electric consumption of the customers.
(d)  A transmission and distribution utility required to provide an energy efficiency incentive program under Section 39.905 may use up to 10 percent of the budgeted spending for demand response programs on the programs described by Subsection (b)(9).
Added by Acts 2023, 88th Leg., R.S., Ch. 945 (S.B. 1699), Sec. 5, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter A. General Provisions › Section 40.001. Applicable Law

Sec. 40.001.  APPLICABLE LAW.  (a)  Notwithstanding any other provision of law, except Sections 39.155, 39.157(e), and 39.203, this chapter governs the transition to and the establishment of a fully competitive electric power industry for municipally owned utilities. With respect to the regulation of municipally owned utilities, this chapter controls over any other provision of this title, except for sections in which the term "municipally owned utility" is specifically used.
(b)  Except as specifically provided in this subsection, Chapter 39 does not apply to a river authority operating a steam generating plant on or before January 1, 1999, or a corporation authorized by Chapter 152, Water Code, or Section 32.053.  A river authority operating a steam generating plant on or before January 1, 1999, is subject to Sections 39.051(a)-(c), 39.108, 39.1516, 39.155, 39.157(e), and 39.203.
(c)  For purposes of Section 39.051, hydroelectric assets may not be deemed to be generating assets, and the transfer of generating assets to a corporation authorized by Chapter 152, Water Code, satisfies the requirements of Section 39.051.
(d)  Accommodation shall be made in the code of conduct established under Section 39.157(e) for the provisions of Chapter 152, Water Code, and the commission may not prohibit a river authority and any related corporation from sharing officers, directors, employees, equipment, and facilities or from providing goods or services to each other at cost without the need for a competitive bid.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.401, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 16.004, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 610 (S.B. 936), Sec. 8, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 41, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter A. General Provisions › Section 40.002. Definition

Sec. 40.002.  DEFINITION.  For purposes of this chapter, "body vested with the power to manage and operate a municipally owned utility" means a body created in accordance with Section 1502.070, Government Code, or Subchapter G, Chapter 552, Local Government Code, or by municipal charter.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.402, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(29), eff. April 1, 2009.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter A. General Provisions › Section 40.004. Jurisdiction of Commission

Sec. 40.004.  JURISDICTION OF COMMISSION.  Except as specifically otherwise provided in this chapter, the commission has jurisdiction over municipally owned utilities only for the following purposes:
(1)  to regulate wholesale transmission rates and service, including terms of access, to the extent provided by Subchapter A, Chapter 35;
(2)  to regulate certification of retail service areas to the extent provided by Chapter 37;
(3)  to regulate rates on appeal under Subchapters D and E, Chapter 33, subject to Section 40.051(c);
(4)  to establish a code of conduct as provided by Section 39.157(e) applicable to anticompetitive activities and to affiliate activities limited to structurally unbundled affiliates of municipally owned utilities, subject to Section 40.054;
(5)  to establish terms and conditions for open access to transmission and distribution facilities for municipally owned utilities providing customer choice, as provided by Section 39.203;
(6)  to administer the natural gas energy credits program under Section 39.9044(b);
(7)  to require reports of municipally owned utility operations only to the extent necessary to:
(A)  enable the commission to determine the aggregate load and energy requirements of the state and the resources available to serve that load; or
(B)  enable the commission to determine information relating to market power as provided by Section 39.155; and
(8)  to evaluate and monitor the cybersecurity preparedness of a municipally owned utility described by Section 39.1516(a)(3) or (4).
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 16.005, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 610 (S.B. 936), Sec. 9, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 42, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.051. Governing Body Decision

Sec. 40.051.  GOVERNING BODY DECISION.  (a)  The municipal governing body or a body vested with the power to manage and operate a municipally owned utility has the discretion to decide when or if the municipally owned utility will provide customer choice.
(b)  Municipally owned utilities may choose to participate in customer choice at any time on or after January 1, 2002, by adoption of an appropriate resolution of the municipal governing body or a body vested with power to manage and operate the municipally owned utility.  The decision to participate in customer choice by the adoption of a resolution is irrevocable.
(c)  After a decision to offer customer choice has been made, Subchapters D and E, Chapter 33, do not apply to any action taken under this chapter.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.052. Utility Not Offering Customer Choice

Sec. 40.052.  UTILITY NOT OFFERING CUSTOMER CHOICE.  (a)  A municipally owned utility that has not chosen to participate in customer choice may not offer electric energy at unregulated prices directly to retail customers outside its certificated retail service area.
(b)  A municipally owned utility under Subsection (a) retains the right to offer and provide a full range of customer service and pricing programs to the customers within its certificated area and to purchase and sell electric energy at wholesale without geographic restriction.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.053. Retail Customer's Right of Choice

Sec. 40.053.  RETAIL CUSTOMER'S RIGHT OF CHOICE.  (a)  If a municipally owned utility chooses to participate in customer choice, after that choice all retail customers served by the municipally owned utility within the certificated retail service area of the municipally owned utility shall have the right of customer choice consistent with the provisions of this chapter, and the municipally owned utility shall provide open access for retail service.
(b)  Notwithstanding Section 39.107, the metering function may not be deemed a competitive service for customers of the municipally owned utility within that service area and may, at the option of the municipally owned utility, continue to be offered by the municipally owned utility as sole provider.
(c)  On its initiation of customer choice, a municipally owned utility may designate itself or one or more other entities as the provider or providers of last resort for customers within the municipally owned utility's certificated service area as that area existed on the date of the utility's initiation of customer choice.  The municipally owned utility shall fulfill the role of default provider of last resort in the event no other entity is available to act in that capacity if the municipally owned utility continues to sell electric energy to retail customers after the initiation of customer choice.  The municipally owned utility may delegate the authority to designate the provider or providers of last resort to the commission.
(d)  If a customer is unable to obtain service from a retail electric provider or a municipally owned utility or electric cooperative offering customer choice, on request by the customer, the applicable provider of last resort shall offer the customer the standard retail service package for the appropriate customer class, with no interruption of service, at a fixed, nondiscountable rate that is at least sufficient to cover the reasonable costs of providing that service, as approved by the governing body of the municipally owned utility that has the authority to set rates.  If a provider of last resort is designated by the commission, the commission may set the rate each provider of last resort may charge.
(e)  The governing body of a municipally owned utility may establish the procedures and criteria for designating a provider of last resort and may redesignate a provider of last resort according to a schedule it considers appropriate.  If the municipally owned utility delegates authority to the commission under Subsection (c), the commission is not required to comply with procedures or criteria adopted by the municipally owned utility.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 54 (S.B. 1170), Sec. 1, eff. May 19, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.054. Service Outside Area

Sec. 40.054.  SERVICE OUTSIDE AREA.  (a)  A municipally owned utility participating in customer choice shall have the right to offer electric energy and related services at unregulated prices directly to retail customers who have customer choice without regard to geographic location.
(b)  In providing service under Subsection (a) to retail customers outside its certificated retail service area as that area exists on the date of adoption of customer choice, a municipally owned utility is subject to the commission's rules establishing a code of conduct regulating anticompetitive practices.
(c)  For municipally owned utilities participating in customer choice, the commission shall have jurisdiction to establish terms and conditions, but not rates, for access by other retail electric providers to the municipally owned utility's distribution facilities.
(d)  Accommodation shall be made in the commission's terms and conditions for access and in the code of conduct for specific legal requirements imposed by state or federal law applicable to municipally owned utilities.
(e)  The commission does not have jurisdiction to require unbundling of services or functions of, or to regulate the recovery of stranded investment of, a municipally owned utility or, except as provided by this section, jurisdiction with respect to the rates, terms, and conditions of service for retail customers of a municipally owned utility within the utility's certificated service area.
(f)  A municipally owned utility shall maintain separate books and records of its operations from those of the operations of any affiliate.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.056. Anticompetitive Actions

Sec. 40.056.  ANTICOMPETITIVE ACTIONS.  (a)  If, on complaint by a retail electric provider, the commission finds that a municipal rule, action, or order relating to customer choice is anticompetitive or does not provide other retail electric providers with nondiscriminatory terms and conditions of access to distribution facilities or customers within the municipally owned utility's certificated retail service area that are comparable to the municipally owned utility's and its affiliates' terms and conditions of access to distribution facilities or customers, the commission shall notify the municipally owned utility.
(b)  The municipally owned utility shall have three months to cure the anticompetitive or noncompliant behavior described in Subsection (a), following opportunity for hearing on the complaint.  If the rule, action, or order is not fully remedied within that time, the commission may prohibit the municipally owned utility or affiliate from providing retail service outside its certificated retail service area until the rule, action, or order is remedied.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.057. Billing

Sec. 40.057.  BILLING.  (a)  A municipally owned utility that opts for customer choice may continue to bill directly electric customers located in its certificated retail service area, as that area exists on the date of adoption of customer choice, for all transmission and distribution services.  The municipally owned utility may also bill directly for generation services and customer services provided by the municipally owned utility to those customers.
(b)  A municipally owned utility that opts for customer choice may not adopt anticompetitive billing practices that would discourage customers in its service area from choosing a retail electric provider.
(c)  A municipally owned utility that opts for customer choice and does not sell electric energy to retail customers is not required to bill directly for distribution, transmission, and generation services provided to retail electric customers located in its certificated service area.  A retail electric provider may provide billing services for distribution, transmission, and generation services provided to those customers.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 54 (S.B. 1170), Sec. 2, eff. May 19, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.058. Tariffs for Open Access

Sec. 40.058.  TARIFFS FOR OPEN ACCESS.  A municipally owned utility that owns or operates transmission and distribution facilities shall file with the commission tariffs implementing the open access rules established by the commission under Section 39.203 and shall file with the commission the rates for open access on distribution facilities as set by the municipal regulatory authority, before the 90th day preceding the date the utility offers customer choice.  The commission does not have authority to determine the rates for distribution access service for a municipally owned 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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter B. Municipally Owned Utility Choice › Section 40.060. No Power to Amend Certificates

Sec. 40.060.  NO POWER TO AMEND CERTIFICATES.  Nothing in this chapter empowers a municipal governing body or a body vested with the power to manage and operate a municipally owned utility to issue, amend, or rescind a certificate of public convenience and necessity granted by the commission.  This subsection does not affect the ability of a municipal governing body or a body vested with the power to manage and operate the municipally owned utility to pass a resolution under Section 40.051(b).
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter C. Rights Not Affected › Section 40.101. Interference With Contract

Sec. 40.101.  INTERFERENCE WITH CONTRACT.  (a)  This subtitle may not interfere with or abrogate the rights or obligations of parties, including a retail or wholesale customer, to a contract with a municipally owned utility or river authority.
(b)  This subtitle may not interfere with or abrogate the rights or obligations of a party under a contract or agreement concerning certificated utility service areas.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter C. Rights Not Affected › Section 40.102. Access to Wholesale Market

Sec. 40.102.  ACCESS TO WHOLESALE MARKET.  Nothing in this subtitle shall limit the access of municipally owned utilities to the wholesale electric market.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter C. Rights Not Affected › Section 40.103. Protection of Bondholders

Sec. 40.103.  PROTECTION OF BONDHOLDERS.  Nothing in this subtitle or any rule adopted under this subtitle shall impair contracts, covenants, or obligations between this state, river authorities, municipalities, and the bondholders of revenue bonds issued by the river authorities or municipalities.
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 40 - Competition for Municipally Owned Utilities and River Authorities › Subchapter C. Rights Not Affected › Section 40.104. Tax-Exempt Status

Sec. 40.104.  TAX-EXEMPT STATUS.  Nothing in this subtitle may impair the tax-exempt status of municipalities, electric cooperatives, or river authorities, nor shall anything in this subtitle compel any municipality, electric cooperative, or river authority to use its facilities in a manner that violates any contractual provisions, bond covenants, or other restrictions applicable to facilities financed by tax-exempt debt.  Notwithstanding any other provision of law, the decision to participate in customer choice by the adoption of a resolution in accordance with Section 40.051(b) is irrevocable.
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 41 - Electric Cooperatives and Competition › Subchapter A. General Provisions › Section 41.001. Applicable Law

Sec. 41.001.  APPLICABLE LAW.  Notwithstanding any other provision of law, except Sections 39.155, 39.157(e), and 39.203, this chapter governs the transition to and the establishment of a fully competitive electric power industry for electric cooperatives. Regarding the regulation of electric cooperatives, this chapter shall control over any other provision of this title, except for sections in which the term "electric cooperative" is specifically used.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 16.006, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 43, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter A. General Provisions › Section 41.002. Definitions

Sec. 41.002.  DEFINITIONS.  In this chapter:
(1)  "Board of directors" means the board of directors of an electric cooperative as described in Section 161.071.
(2)  "Rate" includes any compensation, tariff, charge, fare, toll, rental, or classification that is directly or indirectly demanded, observed, charged, or collected by an electric cooperative for any service, product, or commodity and any rule, practice, or contract affecting the compensation, tariff, charge, fare, toll, rental, or classification.
(3)  "Stranded investment" means:
(A)  the excess, if any, of the net book value of generation assets over the market value of the generation assets;  and
(B)  any above market purchased power 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 41 - Electric Cooperatives and Competition › Subchapter A. General Provisions › Section 41.003. Securitization

Sec. 41.003.  SECURITIZATION.  (a)  Electric cooperatives may adopt and use securitization provisions having the effect of the provisions provided by Subchapter G, Chapter 39, to recover through rates stranded costs at a recovery level deemed appropriate by the board of directors up to 100 percent, under rules and procedures that shall be established by the commission.
(b)  The rules and procedures for securitization established under Subsection (a) shall include rules and procedures for the recovery of stranded costs under the terms of a rate order adopted by the board of directors of the electric cooperative, which rate order shall have the effect of a financing order.
(c)  The rules and procedures established by the commission under Subsection (b) shall include rules and procedures for the issuance of transition bonds issued in a securitized financing transaction.  The issuance of any transition bonds issued in a securitized financing transaction by an electric cooperative is expressly authorized and shall be governed by the laws governing the issuance of bonds or other obligations by the electric cooperative.  Findings made by the board of directors of an electric cooperative in a rate order issued under the rules and procedures described by this subsection shall be conclusive, and any transition charges incorporated in the rate order to recover the principal, interest, and all reasonable expenses associated with any securitized financing transaction shall constitute property rights, as described in Subchapter G, Chapter 39, and shall otherwise conform in all material respects to the transition charges provided by Subchapter G, Chapter 39.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.