reglab/statecodes huggingface dataset:
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter A. General Powers of Railroad Commission › Section 102.002. Limitation on Railroad Commission Jurisdiction

Sec. 102.002.  LIMITATION ON RAILROAD COMMISSION JURISDICTION.  Except as otherwise provided by this subtitle, this subtitle does not authorize the railroad commission to:
(1)  regulate or supervise a rate or service of a municipally owned utility;  or
(2)  affect the jurisdiction, power, or duty of a municipality that has elected to regulate and supervise a gas utility in the municipality.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter A. General Powers of Railroad Commission › Section 102.003. Railroad Commission Powers Relating to Reports

Sec. 102.003.  RAILROAD COMMISSION POWERS RELATING TO REPORTS.  The railroad commission may:
(1)  require a gas utility to report to the railroad commission information relating to the gas utility and an affiliate inside or outside this state as useful in administering this subtitle;
(2)  establish the form for a report;
(3)  determine the time for a report and the frequency with which the report is to be made;
(4)  require that a report be made under oath;
(5)  require the filing with the railroad commission of a copy of:
(A)  a contract or arrangement between a gas utility and an affiliate;
(B)  a report filed with a federal agency or a governmental agency or body of another state;  and
(C)  an annual report that shows each payment of compensation, other than salary or wages subject to federal income tax withholding:
(i)  to residents of this state;
(ii)  with respect to legal, administrative, or legislative matters in this state;  or
(iii)  for representation before the legislature of this state or any governmental agency or body;  and
(6)  require that a contract or arrangement described by Subdivision (5)(A) that is not in writing be reduced to writing and filed with the railroad commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter A. General Powers of Railroad Commission › Section 102.004. Report of Substantial Interest

Sec. 102.004.  REPORT OF SUBSTANTIAL INTEREST.  The railroad commission may require disclosure of the identity and respective interests of each owner of at least one percent of the voting securities of a gas utility or its affiliate.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter A. General Powers of Railroad Commission › Section 102.005. Assistance to Municipality

Sec. 102.005.  ASSISTANCE TO MUNICIPALITY.  On request of a municipality, the railroad commission may advise and assist the municipality with respect to a question or proceeding arising under this subtitle.  Assistance provided by the railroad commission may include aid to a municipality on a matter pending before the railroad commission, a court, or the municipality's governing body, such as making a staff member available as a witness or otherwise providing evidence.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter A. General Powers of Railroad Commission › Section 102.006. Administrative Hearings in Contested Cases

Sec. 102.006.   ADMINISTRATIVE HEARINGS IN CONTESTED CASES.  (a)  The railroad commission by rule shall provide for administrative hearings in contested cases to be conducted by one or more members of the railroad commission, by railroad commission hearings examiners, or by the State Office of Administrative Hearings.  The rules must provide for a railroad commission hearings examiner or the State Office of Administrative Hearings to conduct each hearing in a contested case that is not conducted by one or more members of the railroad commission.  A hearing must be conducted in accordance with the rules and procedures adopted by the railroad commission.
(b)  The railroad commission may delegate to a railroad commission hearings examiner or to the State Office of Administrative Hearings the authority to make a final decision and to issue findings of fact, conclusions of law, and other necessary orders in a proceeding in which there is not a contested issue of fact or law.
(c)  The railroad commission by rule shall define the procedures by which it delegates final decision-making authority under Subsection (b) to a railroad commission hearings examiner or to the State Office of Administrative Hearings.
(d)  For purposes of judicial review, the final decision of a railroad commission hearings examiner or an administrative law judge of the State Office of Administrative Hearings in a matter delegated under Subsection (b) has the same effect as a final decision of the railroad commission unless a member of the commission requests formal review of the decision.
(e)  The State Office of Administrative Hearings shall charge the railroad commission a fixed annual rate for hearings conducted by the office under this section only if the legislature appropriates money for that purpose.  If the legislature does not appropriate money for the payment of a fixed annual rate under this section, the State Office of Administrative Hearings shall charge the railroad commission an hourly rate set by the office under Section 2003.024(a), Government Code, for hearings conducted by the office under this section.
Added by Acts 2001, 77th Leg., ch. 1233, Sec. 64, eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., ch. 200, Sec. 3, eff. Sept. 1, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 228 (H.B. 2154), Sec. 25, eff. September 1, 2015.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter B. Restrictions on Certain Transactions › Section 102.051. Report of Certain Transactions; Railroad Commission Consideration

Sec. 102.051.  REPORT OF CERTAIN TRANSACTIONS;  RAILROAD COMMISSION CONSIDERATION.  (a)  Not later than the 60th day after the date the transaction takes effect, a gas utility shall report to the railroad commission:
(1)  a sale, acquisition, or lease of a plant as an operating unit or system in this state for a total consideration of more than $1 million; or
(2)  a merger or consolidation with another gas utility operating in this state.
(b)  On the filing of a report with the railroad commission, the railroad commission shall investigate the transaction described by Subsection (a), with or without a public hearing, to determine whether the action is consistent with the public interest.  In reaching its determination, the railroad commission shall consider the reasonable value of the property, facilities, or securities to be acquired, disposed of, merged, or consolidated.
(c)  If the railroad commission finds that a transaction is not in the public interest, the railroad commission shall take the effect of the transaction into consideration in ratemaking proceedings and disallow the effect of the transaction if the transaction will unreasonably affect rates or service.
(d)  This section does not apply to:
(1)  the purchase of a unit of property for replacement;  or
(2)  an addition to the facilities of a gas utility by construction.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 32, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1000 (H.B. 474), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter B. Restrictions on Certain Transactions › Section 102.052. Report of Purchase of Voting Stock in Gas Utility

Sec. 102.052.  REPORT OF PURCHASE OF VOTING STOCK IN GAS UTILITY.  A gas utility may not purchase voting stock in another gas utility doing business in this state unless the utility reports the purchase to the railroad commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter B. Restrictions on Certain Transactions › Section 102.053. Report of Loan to Stockholders

Sec. 102.053.  REPORT OF LOAN TO STOCKHOLDERS.  A gas utility may not loan money, stocks, bonds, notes, or other evidence of indebtedness to a person who directly or indirectly owns or holds any stock of the gas utility unless the gas utility reports the transaction to the railroad commission within a reasonable time.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter C. Records › Section 102.101. Records of Gas Utility

Sec. 102.101.  RECORDS OF GAS UTILITY.  (a)  Each gas utility shall keep and provide to the regulatory authority, in the manner and form prescribed by the railroad commission, uniform accounts of all business transacted by the gas utility.
(b)  The railroad commission may prescribe the form of books, accounts, records, and memoranda to be kept by a gas utility, including:
(1)  the books, accounts, records, and memoranda of:
(A)  the provision of and capacity for service;  and
(B)  the receipt and expenditure of money;  and
(2)  any other form, record, and memorandum that the railroad commission considers necessary to carry out this subtitle.
(c)  For a gas utility subject to regulation by a federal regulatory agency, compliance with the system of accounts prescribed for the particular class of utilities by the federal agency may be considered sufficient compliance with the system prescribed by the railroad commission.  The railroad commission may prescribe the form of books, accounts, records, and memoranda covering information in addition to that required by the federal agency.  The system of accounts and the form of books, accounts, records, and memoranda prescribed by the railroad commission for a gas utility or class of utilities may not be inconsistent with the systems and forms established by a federal agency for that gas utility or class of utilities.
(d)  Each gas utility shall:
(1)  keep and provide its books, accounts, records, and memoranda accurately and faithfully in the manner and form prescribed by the railroad commission;  and
(2)  comply with the directions of the regulatory authority relating to the books, accounts, records, and memoranda.
(e)  In this section, "gas utility" includes a municipally owned utility.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter C. Records › Section 102.102. Maintenance of Office and Records in This State

Sec. 102.102.  MAINTENANCE OF OFFICE AND RECORDS IN THIS STATE.  (a)  Each gas utility shall maintain an office in this state in a county in which some part of the utility's property is located.  The gas utility shall keep in this office all books, accounts, records, and memoranda required by the railroad commission to be kept in this state.
(b)  A book, account, record, or memorandum required by the regulatory authority to be kept in this state may not be removed from this state except as prescribed by the railroad commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter C. Records › Section 102.103. Communications With Regulatory Authority

Sec. 102.103.  COMMUNICATIONS WITH REGULATORY AUTHORITY.  (a)  The regulatory authority shall adopt rules governing communications with the regulatory authority or a member or employee of the regulatory authority by:
(1)  a gas utility;
(2)  an affiliate;  or
(3)  a representative of a gas utility or affiliate.
(b)  A record of a communication must contain:
(1)  the name of the person contacting the regulatory authority or member or employee of the regulatory authority;
(2)  the name of the business entity represented;
(3)  a brief description of the subject matter of the communication;  and
(4)  the action, if any, requested by the gas utility, affiliate, or representative.
(c)  Records compiled under Subsection (b) shall be available to the public monthly.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter C. Records › Section 102.104. Jurisdiction Over Affiliate

Sec. 102.104.  JURISDICTION OVER AFFILIATE.  The railroad commission has jurisdiction over an affiliate that has a transaction with a gas utility under the railroad commission's jurisdiction to the extent of access to an account or a record of the affiliate relating to the transaction, including an account or a record of joint or general expenses, any portion of which may be applicable to the transaction.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter D. Required Reports and Filings › Section 102.151. Schedule Filings

Sec. 102.151.  SCHEDULE FILINGS.  (a)  A gas utility shall file with each regulatory authority schedules showing all rates that are:
(1)  subject to the regulatory authority's original or appellate jurisdiction;  and
(2)  in effect for a gas utility service, product, or commodity offered by the gas utility.
(b)  The gas utility shall file as a part of the schedules required under Subsection (a) each rule or regulation that relates to or affects:
(1)  a rate of the gas utility;  or
(2)  a gas utility service, product, or commodity furnished by the gas utility.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter D. Required Reports and Filings › Section 102.152. Depreciation Account

Sec. 102.152.  DEPRECIATION ACCOUNT.  The railroad commission shall require each gas utility or municipally owned utility to carry a proper and adequate depreciation account in accordance with:
(1)  the rates and methods prescribed by the railroad commission under Section 104.054;  and
(2)  any other rule the railroad commission adopts.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter D. Required Reports and Filings › Section 102.153. Accounts of Profits and Losses

Sec. 102.153.  ACCOUNTS OF PROFITS AND LOSSES.  A gas utility or municipally owned utility shall keep separate accounts showing profits or losses from the sale or lease of merchandise, including an appliance, a fixture, or equipment.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter D. Required Reports and Filings › Section 102.154. Report of Certain Expenses

Sec. 102.154.  REPORT OF CERTAIN EXPENSES.  A regulatory authority may require a gas utility to annually report the utility's expenditures for:
(1)  business gifts and entertainment;  and
(2)  advertising or public relations, including expenditures for institutional and consumption-inducing purposes.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter E. Audits and Inspections › Section 102.201. Inquiry Into Management and Affairs

Sec. 102.201.  INQUIRY INTO MANAGEMENT AND AFFAIRS.  A regulatory authority may inquire into the management and affairs of each gas utility and shall keep itself informed as to the manner and method in which each gas utility is managed and its affairs are conducted.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter E. Audits and Inspections › Section 102.202. Audit of Accounts

Sec. 102.202.  AUDIT OF ACCOUNTS.  A regulatory authority may require the examination and audit of the accounts of a gas or municipally owned utility.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter E. Audits and Inspections › Section 102.203. Inspection

Sec. 102.203.  INSPECTION.  At a reasonable time for a reasonable purpose, a regulatory authority and, to the extent authorized by the regulatory authority, its counsel, agent, or employee may:
(1)  inspect and obtain copies of the papers, books, accounts, documents, and other business records of a gas utility within its jurisdiction;  and
(2)  inspect the plant, equipment, and other property of a gas utility within its jurisdiction.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter E. Audits and Inspections › Section 102.204. Examinations Under Oath

Sec. 102.204.  EXAMINATIONS UNDER OATH.  In connection with an investigation taken under Section 102.203, the regulatory authority may:
(1)  examine under oath an officer, agent, or employee of a gas utility;  or
(2)  authorize the person conducting the action to make the examination under oath.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter E. Audits and Inspections › Section 102.205. Entering Premises of Gas Utility

Sec. 102.205.  ENTERING PREMISES OF GAS UTILITY.  (a)  A member, agent, or employee of a regulatory authority may enter the premises occupied by a gas utility to conduct an inspection, examination, or test or to exercise any other authority provided by this subtitle.
(b)  A member, agent, or employee of the regulatory authority may act under this section only during reasonable hours and after reasonable notice to the gas utility.
(c)  A gas utility is entitled to be represented when an inspection, examination, or test is conducted on its premises.  The gas utility is entitled to a reasonable time to secure a representative before the inspection, examination, or test begins.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter E. Audits and Inspections › Section 102.206. Production of Out-of-State Records

Sec. 102.206.  PRODUCTION OF OUT-OF-STATE RECORDS.  (a)  A regulatory authority may require, by order or subpoena served on a gas utility, the production, at the time and place in this state that the regulatory authority designates, of any books, accounts, papers, or records kept by that gas utility outside this state or, if ordered by the railroad commission, verified copies of the books, accounts, papers, or records.
(b)  A gas utility that fails or refuses to comply with an order or subpoena under this section violates this subtitle.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter F. General Provisions Relating to Proceedings Before Regulatory Authority › Section 102.251. Record of Proceeding

Sec. 102.251.  RECORD OF PROCEEDING.  The regulatory authority shall keep a record of each proceeding before the authority.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 102 - Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities › Subchapter F. General Provisions Relating to Proceedings Before Regulatory Authority › Section 102.252. Right to Be Heard

Sec. 102.252.  RIGHT TO BE HEARD.  Each party to a proceeding before a regulatory authority is entitled to be heard by attorney or in person.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter A. General Provisions › Section 103.001. Municipal Jurisdiction

Sec. 103.001.  MUNICIPAL JURISDICTION.  To provide fair, just, and reasonable rates and adequate and efficient services, the governing body of a municipality has exclusive original jurisdiction over the rates, operations, and services of a gas utility within the municipality, subject to the limitations imposed by this subtitle, unless the municipality surrenders its jurisdiction to the railroad commission under Section 103.003.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 65, eff. Sept. 1, 2001.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter A. General Provisions › Section 103.002. Franchises

Sec. 103.002.  FRANCHISES.  (a)  This subtitle does not restrict the rights and powers of a municipality to grant or refuse a franchise to use the streets and alleys in the municipality or to make a statutory charge for that use.
(b)  A municipality that performs a regulatory function under this subtitle may make each charge that is authorized by:
(1)  this subtitle;  or
(2)  the applicable franchise agreement.
(c)  A franchise agreement may not limit or interfere with a power conferred on the railroad commission by this subtitle.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter A. General Provisions › Section 103.003. Surrender of Municipal Jurisdiction to Railroad Commission; Reinstatement of Jurisdiction

Sec. 103.003.  SURRENDER OF MUNICIPAL JURISDICTION TO RAILROAD COMMISSION;  REINSTATEMENT OF JURISDICTION.  (a)  A municipality may elect to have the railroad commission exercise exclusive original jurisdiction over gas utility rates, operations, and services in the municipality by ordinance or by submitting the question of the surrender of its jurisdiction to the voters at a municipal election.
(b)  The governing body of a municipality shall submit at a municipal election the question of surrendering its jurisdiction to the railroad commission if the governing body receives a petition signed by a number of qualified voters of the municipality equal to at least the lesser of 20,000 or 10 percent of the number of voters voting in the last preceding general election in the municipality.
(c)  A municipality may not elect to surrender its jurisdiction while a case involving the municipality is pending.
(d)  A municipality that surrenders its jurisdiction to the railroad commission may reinstate its jurisdiction.  The provisions of this section governing the surrender of jurisdiction apply to the reinstatement of jurisdiction.
Added by Acts 2001, 77th Leg., ch. 1233, Sec. 66, eff. Sept. 1, 2001.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter B. Rate Determination › Section 103.021. Municipal Proceedings

Sec. 103.021.  MUNICIPAL PROCEEDINGS.  (a)  A municipality regulating a gas utility under this subtitle shall require the utility to submit information as necessary to make a reasonable determination of rate base, expenses, investment, and rate of return in the municipality.
(b)  A municipality shall make a determination under Subsection (a) using the procedures and requirements prescribed by this subtitle.
(c)  A municipality shall retain personnel necessary to make the determination of reasonable rates.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter B. Rate Determination › Section 103.022. Rate Assistance and Cost Reimbursement

Sec. 103.022.  RATE ASSISTANCE AND COST REIMBURSEMENT.  (a)  The governing body of a municipality participating in or conducting a ratemaking proceeding may engage rate consultants, accountants, auditors, attorneys, and engineers to:
(1)  conduct investigations, present evidence, and advise and represent the governing body;  and
(2)  assist the governing body with litigation or a gas utility ratemaking proceeding before a regulatory authority or court.
(b)  The gas utility in the ratemaking proceeding shall reimburse the governing body of the municipality for the reasonable cost of the services of a person engaged under Subsection (a) to the extent the applicable regulatory authority determines reasonable.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter B. Rate Determination › Section 103.023. Municipal Standing

Sec. 103.023.  MUNICIPAL STANDING.  (a)  A municipality has standing in each case before the railroad commission that relates to a gas utility's rates and services in the municipality.
(b)  A municipality's standing is subject to the right of the railroad commission to consolidate that municipality with another party on an issue of common interest.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter B. Rate Determination › Section 103.024. Judicial Review

Sec. 103.024.  JUDICIAL REVIEW.  A municipality is entitled to judicial review of a railroad commission order relating to a gas utility's rates and services in a municipality as provided by Section 105.001.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter C. Appeal of Municipal Order › Section 103.051. Appeal by Party

Sec. 103.051.  APPEAL BY PARTY.  A party to a rate proceeding before a municipality's governing body may appeal the governing body's decision to the railroad commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter C. Appeal of Municipal Order › Section 103.052. Appeal by Residents

Sec. 103.052.  APPEAL BY RESIDENTS.  The residents of a municipality may appeal to the railroad commission the decision of the municipality's governing body in a rate proceeding by filing with the railroad commission a petition for review signed by a number of qualified voters of the municipality equal to at least the lesser of 20,000 or 10 percent of the qualified voters of the municipality.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter C. Appeal of Municipal Order › Section 103.053. Appeal by Ratepayers Outside Municipality

Sec. 103.053.  APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY.  (a)  The ratepayers of a municipally owned utility who are outside the municipality may appeal to the railroad commission an action of the municipality's governing body affecting the municipally owned utility's rates by filing with the railroad commission a petition for review signed by a number of ratepayers served by the utility outside the municipality equal to at least the lesser of 10,000 or five percent of those ratepayers.
(b)  A petition for review is properly signed if signed by a person or the spouse of a person in whose name residential utility service is carried.
(c)  For purposes of this section, each person who receives a separate bill is a ratepayer.  A person who receives more than one bill may not be counted as more than one ratepayer.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter C. Appeal of Municipal Order › Section 103.054. Filing of Appeal

Sec. 103.054.  FILING OF APPEAL.  (a)  An appeal under this subchapter is initiated by filing a petition for review with the railroad commission and serving a copy of the petition on each party to the original rate proceeding.
(b)  The appeal must be initiated not later than the 30th day after the date of the final decision by the governing body of the municipality.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter C. Appeal of Municipal Order › Section 103.055. Hearing and Order

Sec. 103.055.  HEARING AND ORDER.  (a)  An appeal under this subchapter is de novo and based on the test year presented to the municipality adjusted for known changes and conditions that are measurable with reasonable accuracy.
(b)  The railroad commission shall enter a final order establishing the rates the railroad commission determines the municipality should have set in the ordinance to which the appeal applies.
(c)  If the railroad commission fails to enter a final order within 185 days after the date the appeal is perfected, the rates proposed by the gas utility are considered to be approved by the railroad commission and take effect on the expiration of the 185-day period.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 103 - Jurisdiction and Powers of Municipality › Subchapter C. Appeal of Municipal Order › Section 103.056. Applicability of Rates

Sec. 103.056.  APPLICABILITY OF RATES.  Temporary or permanent rates set by the railroad commission are prospective and observed from the date of the applicable railroad commission order, except an interim rate order necessary to provide a gas utility the opportunity to avoid confiscation during the period beginning on the date a petition for review is filed with the railroad commission and ending on the date of a final order establishing rates.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.001. Authorization to Establish and Regulate Rates

Sec. 104.001.  AUTHORIZATION TO ESTABLISH AND REGULATE RATES.  (a)  The railroad commission is vested with all the authority and power of this state to ensure compliance with the obligations of gas utilities in this subtitle.
(b)  The regulatory authority may establish and regulate rates of a gas utility and may adopt rules for determining:
(1)  the classification of customers and services;  and
(2)  the applicability of rates.
(c)  A rule or order of the regulatory authority may not conflict with a ruling of a federal regulatory body.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.002. Compliance With Subtitle

Sec. 104.002.  COMPLIANCE WITH SUBTITLE.  A gas utility may not:
(1)  charge, collect, or receive a rate for utility service except as provided by this subtitle;  or
(2)  impose a rule or regulation except as provided by this subtitle.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.003. Just and Reasonable Rates

Sec. 104.003.  JUST AND REASONABLE RATES.  (a)  The regulatory authority shall ensure that each rate a gas utility or two or more gas utilities jointly make, demand, or receive is just and reasonable.  A rate may not be unreasonably preferential, prejudicial, or discriminatory but must be sufficient, equitable, and consistent in application to each class of consumer.  In establishing a gas utility's rates, the railroad commission may treat as a single class two or more municipalities that a gas utility serves if the commission considers that treatment to be appropriate.
(b)  A rate for a pipeline-to-pipeline transaction or to a transportation, industrial, or similar large volume contract customer is considered to be just and reasonable and otherwise to comply with this section and shall be approved by the regulatory authority if:
(1)  neither the gas utility nor the customer had an unfair advantage during the negotiations;
(2)  the rate is substantially the same as the rate between the gas utility and at least two of those customers under the same or similar conditions of service;  or
(3)  competition does or did exist with another gas utility, another supplier of natural gas, or a supplier of an alternative form of energy.
(c)  Subsection (b) does not apply:
(1)  if a complaint is filed with the railroad commission by a transmission pipeline purchaser of gas sold or transported under the pipeline-to-pipeline or transportation rate;  or
(2)  to a direct sale for resale to a gas distribution utility at a city gate.
(d)  The reasonableness of gas purchase costs included in a city gate rate proposed to be charged for a sale for resale to a gas distribution utility at a city gate may be reviewed at a city gate rate proceeding even though the costs have been previously approved as a rate for other parties under Subsection (b).
(e)  Subsection (b)(1) does not apply to a rate charged or offered to be charged to an affiliated pipeline utility.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.004. Unreasonable Preference or Prejudice Prohibited

Sec. 104.004.  UNREASONABLE PREFERENCE OR PREJUDICE PROHIBITED.  A gas utility may not:
(1)  grant an unreasonable preference or advantage concerning rates or services to a person in a classification;
(2)  subject a person in a classification to an unreasonable prejudice or disadvantage concerning rates or services;  or
(3)  establish or maintain an unreasonable difference concerning rates of services between localities or between classes of service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.005. Equality of Rates and Services

Sec. 104.005.  EQUALITY OF RATES AND SERVICES.  (a)  A gas utility may not directly or indirectly charge, demand, collect, or receive from a person a greater or lesser compensation for a service provided or to be provided by the utility than the compensation prescribed by the applicable schedule of rates filed under Section 102.151.
(b)  A person may not knowingly receive or accept a service from a gas utility for a compensation greater or less than the compensation prescribed by the schedules.  A rate charged and collected by a gas utility on September 1, 1983, may be continued until schedules are filed.
(c)  After notice and hearing, the railroad commission may, in the public interest, order a gas utility to refund with interest compensation received in violation of this section.
(d)  This subtitle does not prevent a cooperative corporation from returning to its members net earnings resulting from its operations in proportion to the members' purchases from or through the corporation.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.006. Rates for Area Not in Municipality

Sec. 104.006.  RATES FOR AREA NOT IN MUNICIPALITY.  Without the approval of the railroad commission, a gas utility's rates for an area not in a municipality may not exceed 115 percent of the average of all rates for similar services for all municipalities served by the same utility in the same county as that area.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.007. Discrimination and Restriction on Competition

Sec. 104.007.  DISCRIMINATION AND RESTRICTION ON COMPETITION.  A gas utility may not:
(1)  discriminate against a person who sells or leases equipment or performs services in competition with the gas utility;  or
(2)  engage in a practice that tends to restrict or impair that competition.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter A. General Provisions › Section 104.008. Burden of Proof

Sec. 104.008.  BURDEN OF PROOF.  In a proceeding involving a proposed rate change, the gas utility has the burden of proving that:
(1)  the rate change is just and reasonable, if the utility proposes the change;  or
(2)  an existing rate is just and reasonable, if the proposal is to reduce the rate.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.051. Establishing Overall Revenues

Sec. 104.051.  ESTABLISHING OVERALL REVENUES.  In establishing a gas utility's rates, the regulatory authority shall establish the utility's overall revenues at an amount that will permit the utility a reasonable opportunity to earn a reasonable return on the utility's invested capital used and useful in providing service to the public in excess of its reasonable and necessary operating expenses.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.052. Establishing Fair Rate of Return

Sec. 104.052.  ESTABLISHING FAIR RATE OF RETURN.  The regulatory authority may not establish a rate that yields more than a fair return on the adjusted value of the invested capital used and useful in providing service to the public.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.053. Components of Adjusted Value of Invested Capital

Sec. 104.053.  COMPONENTS OF ADJUSTED VALUE OF INVESTED CAPITAL.  (a)  Gas utility rates shall be based on the adjusted value of invested capital used and useful to the utility in providing service and that adjusted value shall be computed on the basis of a reasonable balance between:
(1)  original cost, less depreciation;  and
(2)  current cost, less an adjustment for present age and condition.
(b)  The regulatory authority may determine a reasonable balance that reflects:
(1)  not less than 60 percent nor more than 75 percent of the original cost of the property at the time the property was dedicated to public use, whether by the gas utility that is the present owner or by a predecessor, less depreciation;  and
(2)  not less than 25 percent nor more than 40 percent of the current cost less an adjustment for present age and condition.
(c)  In determining a reasonable balance, the regulatory authority may consider inflation, deflation, quality of service being provided, growth rate of the service area, and need for the gas utility to attract new capital.
(d)  Construction work in progress, at cost as recorded on the gas utility's books, may be included as part of the adjusted value of invested capital used by and useful to the utility in providing service, as necessary to the financial integrity of the utility.
(e)  Costs of facilities, revenues, expenses, taxes, and reserves shall be separated or allocated as prescribed by the regulatory authority.
(f)  In this section, "original cost" means the actual money cost or the actual money value of consideration paid other than money.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.054. Depreciation, Amortization, and Depletion

Sec. 104.054.  DEPRECIATION, AMORTIZATION, AND DEPLETION.  (a)  The railroad commission shall establish proper and adequate rates and methods of depreciation, amortization, or depletion for each class of property of a gas utility or municipally owned utility.
(b)  The rates and methods established under this section and the depreciation account required under Section 102.152 shall be used uniformly and consistently throughout rate-setting and appeal proceedings.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.055. Net Income; Allowable Expenses

Sec. 104.055.  NET INCOME;  ALLOWABLE EXPENSES.  (a)  Net income shall be used to establish just and reasonable rates.  For that purpose, "net income" means the total revenues of the gas utility from gas utility service less all reasonable and necessary expenses related to that gas utility service.  The regulatory authority shall determine those revenues and expenses in a manner consistent with this subchapter.
(b)  In establishing a gas utility's rates, the regulatory authority may not allow a gas utility's payment to an affiliate for the cost of a service, property, right, or other item or for an interest expense to be included as capital cost or as expense related to gas utility service except to the extent that the regulatory authority finds the payment is reasonable and necessary for each item or class of items as determined by the regulatory authority.  That finding must include:
(1)  a specific finding of the reasonableness and necessity of each item or class of items allowed;  and
(2)  a finding that the price to the gas utility is not higher than the prices charged by the supplying affiliate to its other affiliates or divisions or to a nonaffiliated person for the same item or class of items.
(c)  If an expense is allowed to be included in utility rates, or an investment is included in the utility rate base, the related income tax deduction or benefit shall be included in the computation of income tax expense to reduce the rates.  If an expense is disallowed or not included in utility rates, or an investment is not included in the utility rate base, the related income tax deduction or benefit may not be included in the computation of income tax expense to reduce the rates.  The income tax expense shall be computed using the statutory income tax rates.
(d)  The regulatory authority may adopt reasonable rules complying with this section with respect to including and excluding certain expenses in computing the rates to be established.
(e)  This section is not intended to increase gas utility rates to the customer not caused by utility service.  Utility rates may include only expenses caused by utility service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.056. Treatment of Certain Tax Benefits

Sec. 104.056.  TREATMENT OF CERTAIN TAX BENEFITS.  (a)  In determining the allocation of tax savings derived from liberalized depreciation and amortization, the investment tax credit, and the application of similar methods, the regulatory authority shall:
(1)  balance equitably the interests of present and future customers;  and
(2)  apportion accordingly the benefits between consumers and the gas utility or municipally owned utility.
(b)  If a gas utility or municipally owned utility retains a portion of the investment tax credit, that portion shall be deducted from the original cost of the facilities or other addition to the rate base to which the credit applied to the extent allowed by the Internal Revenue Code.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.