reglab/statecodes huggingface dataset:
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 41.004. Jurisdiction of Commission

Sec. 41.004.  JURISDICTION OF COMMISSION.  Except as specifically provided otherwise in this chapter, the commission has jurisdiction over electric cooperatives only as follows:
(1)  to regulate wholesale transmission rates and service, including terms of access, to the extent provided in Subchapter A, Chapter 35;
(2)  to regulate certification to the extent provided in Chapter 37;
(3)  to establish a code of conduct as provided in Section 39.157(e) subject to Section 41.054;
(4)  to establish terms and conditions, but not rates, for open access to distribution facilities for electric cooperatives providing customer choice, as provided in Section 39.203;
(5)  to require reports of electric cooperative operations only to the extent necessary to:
(A)  ensure the public safety;
(B)  enable the commission to satisfy its responsibilities relating to electric cooperatives under this chapter;
(C)  enable the commission to determine the aggregate electric load and energy requirements in the state and the resources available to serve that load; or
(D)  enable the commission to determine information relating to market power as provided in Section 39.155; and
(6)  to evaluate and monitor the cybersecurity preparedness of an electric cooperative 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. 610 (S.B. 936), Sec. 10, eff. September 1, 2019.
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 41.005. Limitation on Municipal Authority

Sec. 41.005.  LIMITATION ON MUNICIPAL AUTHORITY.  Notwithstanding any other provision of this title, a municipality may not directly or indirectly regulate the rates, operations, and services of an electric cooperative, except, with respect to operations, to the extent necessary to protect the public health, safety, or welfare.  This section does not prohibit a municipality from making a lawful charge for the use of public rights-of-way within the municipality as provided by Section 182.025, Tax Code, and Section 33.008.  An electric cooperative shall be an electric utility for purposes of Section 182.025, Tax Code, and Section 33.008.
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 B. Electric Cooperative Utility Choice › Section 41.051. Board Decision

Sec. 41.051.  BOARD DECISION.  (a)  The board of directors has the discretion to decide when or if the electric cooperative will provide customer choice.
(b)  Electric cooperatives that choose to participate in customer choice may do so at any time on or after January 1, 2002, by adoption of an appropriate resolution of the board of directors.  The decision to participate in customer choice by the adoption of a resolution may be revoked only if no customer has opted for choice within four years of the resolution's adoption.  An electric cooperative may initiate a customer choice pilot project at any time.
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 B. Electric Cooperative Utility Choice › Section 41.052. Electric Cooperatives Not Offering Customer Choice

Sec. 41.052.  ELECTRIC COOPERATIVES NOT OFFERING CUSTOMER CHOICE.  (a)  An electric cooperative that chooses not to participate in customer choice may not offer electric energy at unregulated prices directly to retail customers outside its certificated retail service area.
(b)  An electric cooperative 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 retail service area and to purchase and sell electric energy at wholesale without geographic restriction.
(c)  A generation and transmission electric cooperative may offer electric energy at unregulated prices directly to retail customers outside of its parent electric cooperatives' certificated service areas only if a majority of the parent electric cooperatives of the generation and transmission electric cooperative have chosen to offer customer choice.
(d)  A subsidiary of an electric cooperative may not provide electric energy at unregulated prices outside of its parent electric cooperative's certificated retail service area unless the electric cooperative offers customer choice inside its certificated retail service area.
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 B. Electric Cooperative Utility Choice › Section 41.053. Retail Customer Right of Choice

Sec. 41.053.  RETAIL CUSTOMER RIGHT OF CHOICE.  (a)  If an electric cooperative chooses to participate in customer choice, after that choice, all retail customers within the certificated service area of the electric cooperative shall have the right of customer choice, and the electric cooperative shall provide nondiscriminatory open access for retail service.
(b)  Notwithstanding Section 39.107, the metering function may not be deemed a competitive service for customers of the electric cooperative within that service area and may, at the option of the electric cooperative, continue to be offered by the electric cooperative as sole provider.
(c)  On its initiation of customer choice, an electric cooperative shall designate itself or another entity as the provider of last resort for retail customers within the electric cooperative's certificated service area and shall fulfill the role of default provider of last resort in the event no other entity is available to act in that capacity.
(d)  If a retail electric provider fails to serve a customer described in Subsection (c), on request by the customer, the 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 board of directors.
(e)  The board of directors may establish the procedures and criteria for designating the provider of last resort and may redesignate the provider of last resort according to a schedule it considers appropriate.
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 B. Electric Cooperative Utility Choice › Section 41.054. Service Outside Certificated Area

Sec. 41.054.  SERVICE OUTSIDE CERTIFICATED AREA.  (a)  Notwithstanding any provisions of Chapter 161:
(1)  an electric cooperative 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;  and
(2)  any person, without restriction, except as may be provided in the electric cooperative's articles of incorporation and bylaws, may be a member of an electric cooperative.
(b)  In providing service under Subsection (a) to retail customers outside its certificated service area as that area exists on the date of adoption of customer choice, an electric cooperative becomes subject to commission jurisdiction as to the commission's rules establishing a code of conduct regulating anticompetitive practices under Section 39.157(e), except to the extent those rules conflict with this chapter.
(c)  For electric cooperatives participating in customer choice, the commission shall have jurisdiction to establish terms and conditions, but not rates, for access by other electric providers to the electric cooperative's distribution facilities.
(d)  Notwithstanding Subsections (b) and (c), the commission shall make accommodation in the code of conduct for specific legal requirements imposed by state or federal law applicable to electric cooperatives.  The commission shall accommodate the organizational structures of electric cooperatives and may not prohibit an electric cooperative and any related entity from sharing officers, directors, or employees.
(e)  The commission does not have jurisdiction to require the unbundling of services or functions of, or to regulate the recovery of stranded investment of, an electric cooperative or, except as provided by this section, jurisdiction with respect to the rates, terms, and conditions of service for retail customers of an electric cooperative within the electric cooperative's certificated service area.
(f)  An electric cooperative shall maintain separate books and records of its operations and the operations of any subsidiary and shall ensure that the rates charged for provision of electric service do not include any costs of its subsidiary or any other costs not related to the provision of electric service.
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 B. Electric Cooperative Utility Choice › Section 41.055. Jurisdiction of Board of Directors

Sec. 41.055.  JURISDICTION OF BOARD OF DIRECTORS.  A board of directors has exclusive jurisdiction to:
(1)  set all terms of access, conditions, and rates applicable to services provided by the electric cooperative, except as provided by Sections 41.054 and 41.056, including nondiscriminatory and comparable rates for distribution but excluding wholesale transmission rates, terms of access, and conditions for wholesale transmission service set by the commission under Subchapter A, Chapter 35, provided that the rates for distribution established by the electric cooperative shall be comparable to the distribution rates that apply to the electric cooperative and its subsidiaries;
(2)  determine whether to unbundle any energy-related activities and, if the board of directors chooses to unbundle, whether to do so structurally or functionally;
(3)  reasonably determine the amount of the electric cooperative's stranded investment;
(4)  establish nondiscriminatory transition charges reasonably designed to recover the stranded investment over an appropriate period of time;
(5)  determine the extent to which the electric cooperative will provide various customer services, including nonelectric services, or accept the services from other providers;
(6)  manage and operate the electric cooperative's utility systems, including exercise of control over resource acquisition and any related expansion programs;
(7)  establish and enforce service quality standards, reliability standards, and consumer safeguards designed to protect retail electric customers;
(8)  determine whether a base rate reduction is appropriate for the electric cooperative;
(9)  determine any other utility matters that the board of directors believes should be included;
(10)  sell electric energy and capacity at wholesale, regardless of whether the electric cooperative participates in customer choice;
(11)  determine the extent to which the electric cooperative offers energy efficiency programs and how the programs are administered by the electric cooperative; and
(12)  make any other decisions affecting the electric cooperative's method of conducting business that are not inconsistent with the provisions of this chapter.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 28, eff. September 1, 2007.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter B. Electric Cooperative Utility Choice › Section 41.056. Anticompetitive Actions

Sec. 41.056.  ANTICOMPETITIVE ACTIONS.  (a)  If, after notice and hearing, the commission finds that an electric cooperative providing customer choice has engaged in anticompetitive behavior by not providing other retail electric providers with nondiscriminatory terms and conditions of access to distribution facilities or customers within the electric cooperative's certificated service area that are comparable to the electric cooperative's and its subsidiaries' terms and conditions of access to distribution facilities or customers, the commission shall notify the electric cooperative.
(b)  The electric cooperative shall have three months to cure the anticompetitive or noncompliant behavior described in Subsection (a).  If the behavior is not fully remedied within that time, the commission may prohibit the electric cooperative or its subsidiary from providing retail service outside its certificated retail service area until the behavior 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 41 - Electric Cooperatives and Competition › Subchapter B. Electric Cooperative Utility Choice › Section 41.057. Billing

Sec. 41.057.  BILLING.  (a)  An electric cooperative that opts for customer choice may continue to bill directly electric customers located in its certificated service area for all transmission and distribution services.  The electric cooperative may also bill directly for generation and customer services provided by the electric cooperative or its subsidiaries to those customers.
(b)  A customer served by an electric cooperative for transmission and distribution services and by a retail electric provider for retail service has the option of being billed directly by each service provider or receiving a single bill for distribution, transmission, and generation services from the electric cooperative.
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 B. Electric Cooperative Utility Choice › Section 41.058. Tariffs for Open Access

Sec. 41.058.  TARIFFS FOR OPEN ACCESS.  An electric cooperative that owns or operates transmission and distribution facilities shall file tariffs implementing the open access rules established by the commission under Section 39.203 with the appropriate regulatory authorities having jurisdiction over the transmission and distribution service of the electric cooperative before the 90th day preceding the date the electric cooperative offers customer choice.
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 B. Electric Cooperative Utility Choice › Section 41.059. No Power to Amend Certificates

Sec. 41.059.  NO POWER TO AMEND CERTIFICATES.  Nothing in this chapter empowers a board of directors to issue, amend, or rescind a certificate of public convenience and necessity granted by the commission.
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 B. Electric Cooperative Utility Choice › Section 41.060. Customer Service Information

Sec. 41.060.  CUSTOMER SERVICE INFORMATION.  (a)  The commission shall keep information submitted by customers and retail electric providers pertaining to the provision of electric service by electric cooperatives.
(b)  The commission shall notify the appropriate electric cooperative of information submitted by a customer or retail electric provider, and the electric cooperative shall respond to the customer or retail electric provider.  The electric cooperative shall notify the commission of its response.
(c)  The commission shall prepare a report for the Sunset Advisory Commission that includes information submitted and responses by electric cooperatives in accordance with the Sunset Advisory Commission's schedule for reviewing the commission.
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 B. Electric Cooperative Utility Choice › Section 41.062. Allocation of Stranded Investment

Sec. 41.062.  ALLOCATION OF STRANDED INVESTMENT.  Any competition transition charge shall be allocated among retail customer classes based on the relevant customer class characteristics as of the end of the electric cooperative's most recent fiscal year before implementation of customer choice, in accordance with the methodology used to allocate the costs of the underlying assets or expenses in the electric cooperative's most recent cost of service study certified by a professional engineer or certified public accountant or approved by the commission.  In multiply certificated areas, a retail customer may not avoid stranded cost recovery charges by switching to another electric cooperative, an electric utility, or 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 41 - Electric Cooperatives and Competition › Subchapter C. Rights Not Affected › Section 41.101. Interference With Contract

Sec. 41.101.  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 an electric cooperative or its subsidiary.
(b)  No provision of this subtitle may interfere with or be deemed to abrogate the rights or obligations of a party under a contract or an agreement concerning certificated 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 41 - Electric Cooperatives and Competition › Subchapter C. Rights Not Affected › Section 41.102. Access to Wholesale Market

Sec. 41.102.  ACCESS TO WHOLESALE MARKET.  Nothing in this subtitle shall limit the access of an electric cooperative or its subsidiary, either on its own behalf or on behalf of its customers, 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 41 - Electric Cooperatives and Competition › Subchapter C. Rights Not Affected › Section 41.103. Protection of Bondholders

Sec. 41.103.  PROTECTION OF BONDHOLDERS.  Nothing in this subtitle or any rule adopted under this subtitle shall impair contracts, covenants, or obligations between an electric cooperative and its lenders and holders of bonds issued on behalf of or by the electric cooperative.
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 C. Rights Not Affected › Section 41.104. Tax-Exempt Status

Sec. 41.104.  TAX-EXEMPT STATUS.  Nothing in this subtitle may impair the tax-exempt status of electric cooperatives, nor shall anything in this subtitle compel any electric cooperative to use its facilities in a manner that violates any contractual provisions, bond covenants, or other restrictions applicable to facilities financed by tax-exempt or federally insured or guaranteed debt.
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 D. Market Participation and Securitization › Section 41.151. Purpose

Sec. 41.151.  PURPOSE.  (a)  The purpose of this subchapter is to enable electric cooperatives to use securitization financing to recover extraordinary costs and expenses incurred due to the abnormal weather events that occurred in this state in the period beginning 12:00 a.m., February 12, 2021, and ending at 11:59 p.m., February 20, 2021.  This type of debt will reduce the cost of financing the extraordinary costs and expenses relative to the costs that would be incurred using conventional electric cooperative financing methods.  The proceeds of the securitized bonds shall be used solely for the purposes of financing or refinancing the extraordinary costs and expenses, including costs relating to consummation and administration of the securitized financing.  The board of each electric cooperative involved in the financing shall ensure that securitization provides tangible and quantifiable benefits to its members, greater than would have been achieved absent the issuance of securitized bonds.  Each board that chooses to securitize under this subchapter shall ensure that the structuring and pricing of the securitized bonds are consistent with market conditions and the terms of the financing order.  This subchapter may be used by a group of electric cooperatives to issue securitized bonds in a combined securitization transaction.
(b)  A cooperative that owes the independent organization certified under Section 39.151, Utilities Code, for the ERCOT power region amounts incurred as a result of operations during the period beginning 12:01 a.m., February 12, 2021, and ending at 11:59 p.m., February 20, 2021, shall:
(1)  use all means necessary to securitize the amount owed the independent organization, calculated solely according to the protocols of the independent organization in effect during the period of emergency promulgated subject to the approval of the commission; and
(2)  fully repay the amount described by Subdivision (1) immediately upon receipt of the securitized amount along with any additional amounts necessary to fully satisfy the amount owed.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.153. Financing Orders; Terms

Sec. 41.153.  FINANCING ORDERS; TERMS.  (a)  The board shall adopt a financing order to recover the electric cooperative's qualified costs consistent with the standards in Section 41.151.
(b)  The financing order shall detail the amount of qualified costs to be recovered and the period over which the nonbypassable securitized charges shall be recovered, which period may not exceed 30 years.
(c)  Securitized charges shall be collected and allocated among customers in the manner provided by the financing order.
(d)  A financing order becomes effective in accordance with its terms, and the financing order, together with the securitized charges authorized in the order, after it takes effect, is irrevocable and not subject to denial, recission, reduction, impairment, adjustment, or other alteration by further action of the board or by action of any regulatory or other governmental body of this state, except as permitted by Section 41.157.  A financing order issued under this subchapter has the same force and effect of a financing order issued under Chapter 39.
(e)  A financing order may be reviewed by appeal by a member of the electric cooperative to a district court in the county where the electric cooperative is domiciled, filed not later than the 15th day after the date the financing order is adopted by the board.  The judgment of the district court may be reviewed only by direct appeal to the Supreme Court of Texas filed not later than the 15th day after the date of the entry of judgment.  All appeals shall be heard and determined by the district court and the Supreme Court of Texas as expeditiously as possible with lawful precedence over other matters.  Review on appeal shall be based solely on the financing order adopted by the board, other information considered by the board in adopting the resolutions, and briefs to the court and shall be limited to whether the financing order conforms to the constitution and laws of this state and the United States and is within the authority of the board under this subchapter.
(f)  The board or, in a combined securitization transaction, the boards of all participating electric cooperatives, may adopt a financing order or financing orders providing for retiring and refunding securitized bonds on making a finding that the future securitized charges required to service the new securitized bonds, including transaction costs, will be less than the future securitized charges required to service the securitized bonds being refunded.  After the indefeasible repayment in full of all outstanding securitized bonds and associated financing costs, the board shall adjust the related securitized charges accordingly.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.154. Property Rights

Sec. 41.154.  PROPERTY RIGHTS.  (a)  The rights and interests of an electric cooperative or its subsidiary, affiliate, successor, financing party, or assignee under a financing order, including the right to impose, collect, receive, and enforce the payment of securitized charges authorized in the financing order, shall be only contract rights until the property is first transferred or pledged to an assignee or financing party, as applicable, in connection with the issuance of securitized bonds, at which time the property becomes securitized property.
(b)  Securitized property that is specified in the financing order constitutes a present vested property right for all purposes, including for purposes of Sections 16 and 17, Article I, Texas Constitution, Section 10, Article I, United States Constitution, and the Fifth Amendment to the United States Constitution, and the laws of this state and the United States, even if the imposition and collection of securitized charges depend on further acts of the electric cooperative or others that may not have yet occurred.
(c)  Securitized property shall exist regardless of whether securitized charges have been billed, have accrued, or have been collected and notwithstanding the fact that the value or amount of the property is dependent on the future provision of service to customers by the electric cooperative or its successors or assigns.
(d)  On the issuance of the securitized bonds and the financing order, and when the requirements of Section 41.159 are met, the securitized charges, including their nonbypassability, are irrevocable, final, nondiscretionary, and effective without further action by the electric cooperative or any other person or governmental authority.  The financing order shall remain in effect and the property shall continue to exist for the same period as the pledge of the state described in Section 41.160.
(e)  All revenue, collections, claims, payments, money, or proceeds of or arising from or relating to securitized charges shall constitute proceeds of the securitized property arising from the financing order.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.155. No Setoff

Sec. 41.155.  NO SETOFF.  The interest of an assignee or pledgee in securitized property and in the revenues and collections arising from that property are not subject to setoff, counterclaim, surcharge, recoupment, or defense by the electric cooperative or any other person or in connection with the bankruptcy of the electric cooperative or any other entity.  A financing order shall remain in effect and unabated notwithstanding the bankruptcy of the electric cooperative, its successors, or assignees.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.156. No Bypass

Sec. 41.156.  NO BYPASS.  (a)  A financing order shall include terms ensuring that the imposition and collection of securitized charges authorized in the order shall be nonbypassable and apply to all customers connected to the electric cooperative's system assets and taking service, regardless of whether the system assets continue to be owned by the electric cooperative.
(b)  The electric cooperative, its servicer, any entity providing electric transmission or distribution services, and any retail electric provider providing services to a retail customer in the electric cooperative's certificated service area as it existed on the date of enactment of this subchapter are entitled to collect and must remit, consistent with this subchapter and any financing order adopted under this subchapter, the securitized charges from the retail customers and from retail customers that switch to new on-site generation.  Such retail customers are required to pay the securitized charges.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.157. True-Up

Sec. 41.157.  TRUE-UP.  (a)  A financing order shall be reviewed and adjusted promptly if after its adoption there are additional charges, reductions, or refunds of extraordinary costs and expenses, to:
(1)  ensure that there is not an over-collection or an under-collection of extraordinary costs and expenses; and
(2)  ensure that collections on the securitized property will be sufficient to timely make all periodic and final payments of principal, interest, fees, and other amounts and to timely fund all reserve accounts, if any, related to the securitized bonds.
(b)  A financing order shall also include a mechanism requiring that securitized charges be reviewed by the board and adjusted at least annually, not later than the 45th day after the anniversary date of the issuance of the securitized bonds, to:
(1)  correct over-collections or under-collections of the preceding 12 months; and
(2)  ensure the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the securitized bonds.
(c)  The electric cooperatives that are members of a generation and transmission cooperative may include in their financing orders the ability to allocate any true-up amounts over the retail customers of all electric cooperatives that are members of the same generation and transmission cooperative.
(d)  In a combined securitization transaction, each generation and transmission cooperative may calculate all adjustments and determinations relevant to each true-up by each electric cooperative member of the generation and transmission cooperative participating in the securitization transaction, with the adjustments being allocated across the electric cooperatives in the manner agreed to by all of the participating electric cooperatives under their financing orders.
(e)  A governmental authority may not disapprove of or alter any adjustments made or proposed to be made under this subchapter other than to correct computation or other manifest errors.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.158. True Sale

Sec. 41.158.  TRUE SALE.  An agreement by an electric cooperative or assignee to transfer securitized property that expressly states that the transfer is a sale or other absolute transfer signifies that the transaction is a true sale and is not a secured transaction and that title, legal and equitable, has passed to the entity to which the securitized property is transferred.  The transaction shall be treated as an absolute sale regardless of whether the purchaser has any recourse against the seller, or any other term of the parties' agreement, including the seller's retention of an equity interest in the securitized property, the fact that the electric cooperative acts as the collector of securitized charges relating to the securitized property, or the treatment of the transfer as a financing for tax, financial reporting, or other purposes.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.160. Pledge of State

Sec. 41.160.  PLEDGE OF STATE.  Securitized bonds are not a debt or obligation of the state and are not a charge on its full faith and credit or taxing power.  The state pledges, however, for the benefit and protection of assignees, financing parties, and the electric cooperative, that it will not take or permit, or permit any agency or other governmental authority or political subdivision of the state to take or permit, any action that would impair the value of securitized property, or, except as permitted by Section 41.157, reduce, alter, or impair the securitized charges to be imposed, collected, and remitted to financing parties, until the principal, interest and premium, and any other charges incurred and contracts to be performed in connection with the related securitized bonds have been paid and performed in full.  Any party issuing securitized bonds is authorized to include this pledge in any documentation relating to those bonds.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.161. Tax Exemption

Sec. 41.161.  TAX EXEMPTION.  Transactions involving the transfer and ownership of securitized property and the receipt of securitized charges are exempt from state and local income, sales, franchise, gross receipts, and other taxes or similar charges.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.162. Not Public Utility

Sec. 41.162.  NOT PUBLIC UTILITY.  An assignee or financing party may not be considered to be a public utility, electric cooperative, or person providing electric service solely by virtue of the transactions described in this subchapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 41 - Electric Cooperatives and Competition › Subchapter D. Market Participation and Securitization › Section 41.163. Severability

Sec. 41.163.  SEVERABILITY.  Effective on the date the first securitized bonds are issued under this subchapter, if any provision in this title or portion of this title is held to be invalid or is invalidated, superseded, replaced, repealed, or expires for any reason, that occurrence does not affect the validity or continuation of this subchapter or any other provision of this title that is relevant to the issuance, administration, payment, retirement, or refunding of securitized bonds or to any actions of the electric cooperative, its successors, an assignee, a collection agent, or a financing party, which shall remain in full force and effect.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 1, eff. June 18, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 42 - Public Charging of Electric Vehicles › Section 42.0101. Legislative Findings

Sec. 42.0101.  LEGISLATIVE FINDINGS.  (a)  The legislature finds that it is in the best interests of this state to continue the long-standing policy of supporting private sector investment in infrastructure by establishing a framework designed to encourage competitive private sector investment in the deployment of public electric vehicle charging stations.
(b)  The legislature finds that encouraging investment in the deployment of public electric vehicle charging stations is essential to foster the rapid installation and widespread use of public electric vehicle charging stations on property whose owners or tenants desire to install public electric vehicle charging stations.
(c)  The legislature finds that electric utilities, transmission and distribution utilities, competitive entities, and the commission have important roles to fill in supporting the installation and use of infrastructure for electric vehicle charging.
(d)  The legislature finds that it is necessary to:
(1)  implement competitively neutral policies to encourage competitive private sector investment in public electric vehicle charging station deployment;
(2)  develop and implement competitively neutral electricity tariffs that are optimized for public electric vehicle charging stations and based on cost causation principles while ensuring transparency in pricing and recognizing changing market needs; and
(3)  encourage competitive private investment, ownership, and operation of public electric vehicle charging stations, including equipment that allows for fast charging.
Added by Acts 2023, 88th Leg., R.S., Ch. 53 (S.B. 1002), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 42 - Public Charging of Electric Vehicles › Section 42.0102. Definitions

Sec. 42.0102.  DEFINITIONS.  In this chapter:
(1)  "Direct-current fast charging station" means a charging system capable of delivering at least 50 kilowatts of direct-current electrical power to an electric vehicle's rechargeable battery at a voltage of 200 volts or greater.
(2)  "Electric vehicle" means a vehicle that is propelled by one or more electric motors using energy stored in the form of a rechargeable battery.
(3)  "Electric vehicle charging provider" means the owner or operator of a public electric vehicle charging station.  The term does not include an electric utility or transmission and distribution utility.
(4)  "Electric vehicle charging service" means sales made from a public electric vehicle charging station to the public.
(5)  "Level two charging station" means a charging system capable of delivering at least 3 and not more than 19.2 kilowatts of alternating-current electrical power to an electric vehicle's rechargeable battery at a voltage of at least 208 volts on a circuit of at least 40 amperes.
(6)  "Make-ready infrastructure" means the electrical infrastructure required to service a public electric vehicle charging station's electrical load on the electric utility's or transmission and distribution utility's side of the point of delivery.  The term:
(A)  includes all site-specific electrical infrastructure required to accommodate engineering, physical, operational, or other constraints for the public electric vehicle charging station, regardless of whether the infrastructure is on the utility's or customer's side of the point of delivery; and
(B)  does not include the public electric vehicle charging station or any utility infrastructure on the customer's side of the point of delivery, up to and including the meter.
(7)  "Public electric vehicle charging station" means any level two charging station or direct-current fast charging station that delivers electricity from a source outside an electric vehicle into an electric vehicle, is separate and distinct from make-ready infrastructure, and is accessible for commercial use by the public, or similar vehicle charging equipment capable of delivering electricity into an electric vehicle faster than a level two charging station.  The term does not include vehicle charging equipment that is:
(A)  used by an electric utility, a transmission and distribution utility, or an affiliate to charge:
(i)  an electric vehicle owned by the utility or affiliate; or
(ii)  as an incident of employment, an electric vehicle owned by an employee of the utility or affiliate; or
(B)  located on the premises of a customer of an electric utility, a transmission and distribution utility, or an affiliate and:
(i)  used by the customer or the customer's tenants, affiliates, or guests; and
(ii)  not used commercially for electric vehicle charging service.
Added by Acts 2023, 88th Leg., R.S., Ch. 53 (S.B. 1002), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 43 - Provision of Middle Mile Broadband Service by Electric Utilities › Subchapter A. General Provisions › Section 43.001. Legislative Findings

Sec. 43.001.  LEGISLATIVE FINDINGS.  (a)  The legislature finds that access to quality, high-speed broadband Internet service is important to this state, is a necessary prerequisite for enabling economic development and improving education, health care, public safety, and government services in this state, and provides other benefits to its citizens.
(b)   The legislature finds that broadband development in unserved and underserved areas of Texas can be facilitated by the participation of electric utilities in this state that own and operate facilities that may be useful for the full deployment of broadband service by Internet service providers throughout this state.
(c)  The legislature finds that electric utilities have existing infrastructure in place throughout this state and that excess fiber capacity on that infrastructure could be used to provide middle mile broadband service in unserved and underserved areas.
(d)  The legislature finds that it is in the public interest to encourage the deployment of broadband service in unserved and underserved areas by permitting electric utilities to own, construct, or operate fiber facilities for the support of electric service and to lease excess fiber capacity for the provision of middle mile broadband service.  The purpose of this chapter is to provide the appropriate framework to facilitate the leasing of excess fiber capacity on electric utility facilities.
(e)  The legislature finds that an electric utility may choose to implement middle mile broadband service to lease excess fiber capacity to Internet service providers under the procedures set forth in this chapter, but is not required to do so.  The electric utility shall have the right to decide, in its sole discretion, whether to implement middle mile broadband service and may not be penalized for deciding to implement or not to implement that service.
Added by Acts 2005, 79th Leg., 2nd C.S., Ch. 2 (S.B. 5), Sec. 2, eff. September 7, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 727 (H.B. 3853), Sec. 1, eff. June 15, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 43 - Provision of Middle Mile Broadband Service by Electric Utilities › Subchapter A. General Provisions › Section 43.002. Applicability

Sec. 43.002.  APPLICABILITY.  (a)  This chapter applies to an electric utility whether or not the electric utility is offering customer choice under Chapter 39.
(b)  If there is a conflict between the specific provisions of this chapter and any other provisions of this title, the provisions of this chapter control.
(c)  Except as otherwise provided by this title, no provision of this title imposes an obligation on an electric utility to construct or operate facilities to provide middle mile broadband service, or to allow others to install facilities or use the electric utility's facilities for the provision of broadband service.
Added by Acts 2005, 79th Leg., 2nd C.S., Ch. 2 (S.B. 5), Sec. 2, eff. September 7, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 727 (H.B. 3853), Sec. 1, eff. June 15, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 43 - Provision of Middle Mile Broadband Service by Electric Utilities › Subchapter A. General Provisions › Section 43.003. Definitions

Sec. 43.003.  DEFINITIONS.  In this chapter:
(1)  "Broadband service" means retail Internet service provided by a commercial Internet service provider with the capability of providing a download speed of at least 25 megabits per second and an upload speed of at least 3 megabits per second.
(2)  "Internet service provider" means a commercial entity that provides Internet services to end-use customers on a retail basis.
(3)  "Electric delivery system" means the power lines and related transmission and distribution facilities constructed to deliver electric energy to the electric utility's customers.
(4)  "Electric utility" includes an electric utility and a transmission and distribution utility as defined in Section 31.002(6) or (19).
(5)  "Middle mile broadband service" means the provision of excess fiber capacity on an electric utility's electric delivery system or other facilities to an Internet service provider to provide broadband service.  The term does not include provision of Internet service to end-use customers on a retail basis.
Added by Acts 2005, 79th Leg., 2nd C.S., Ch. 2 (S.B. 5), Sec. 2, eff. September 7, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 727 (H.B. 3853), Sec. 1, eff. June 15, 2021.