reglab/statecodes huggingface dataset:
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 104.057. Consideration of Certain Expenses

Sec. 104.057.  CONSIDERATION OF CERTAIN EXPENSES.  (a)  In establishing a gas utility's rates, the regulatory authority may not allow as a cost or expense an expenditure:
(1)  described by Section 102.154 that the regulatory authority determines to be not in the public interest;  or
(2)  for legislative advocacy.
(b)  The regulatory authority may allow as a cost or expense reasonable charitable or civic contributions not to exceed the amount approved by the regulatory 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 104 - Rates and Services › Subchapter B. Computation of Rates › Section 104.058. Consideration of Profit or Loss From Sale or Lease of Merchandise

Sec. 104.058.  CONSIDERATION OF PROFIT OR LOSS FROM SALE OR LEASE OF MERCHANDISE.  In establishing a gas utility's or municipally owned utility's rates, the regulatory authority may not consider a profit or loss that results from the sale or lease of merchandise, including appliances, fixtures, or equipment, to the extent that merchandise is not integral to providing 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 104.059. Pension and Other Postemployment Benefits

Sec. 104.059.  PENSION AND OTHER POSTEMPLOYMENT BENEFITS.  (a)  In establishing a gas utility's rates, the regulatory authority shall allow recovery of the gas utility's costs of pensions and other postemployment benefits, as determined by actuarial or other similar studies in accordance with generally accepted accounting principles, in amounts the regulatory authority finds reasonable and necessary.
(b)  If a gas utility establishes one or more reserve accounts for the purpose of tracking changes in the costs of pensions and other postemployment benefits, the gas utility shall periodically record in a reserve account any difference between:
(1)  the annual amount of pension and other postemployment benefits approved and included in the gas utility's then current rates or, if that annual amount cannot be determined from the regulatory authority's order, the amount recorded for pension and other postemployment benefits under generally accepted accounting principles during the first year that rates from the gas utility's last general rate proceeding were in effect; and
(2)  the annual amount of costs of pensions and other postemployment benefits as determined by actuarial or other similar studies that would otherwise be recorded by the gas utility were this provision not applicable.
(c)  The gas utility must:
(1)  establish separate reserve accounts for pensions and for other postemployment benefits; and
(2)  apply the same methodology to allocate pension and other postemployment benefits between capital and expense as in the gas utility's last rate case.
(d)  A surplus in a reserve account exists if the amount of pension and other postemployment benefits under Subsection (b)(1) is greater than the amount determined under Subsection (b)(2).  A shortage in a reserve account exists if the amount of pension and other postemployment benefits under Subsection (b)(1) is less than the amount determined under Subsection (b)(2).
(e)  If the gas utility establishes reserve accounts for the costs of pensions and other postemployment benefits, the regulatory authority at a subsequent general rate proceeding shall:
(1)  review the amounts recorded to each reserve account to determine whether the amounts are reasonable and necessary;
(2)  determine in accordance with Subsection (d) whether each reserve account has a surplus or shortage; and
(3)  subtract any surplus from or add any shortage to the gas utility's rate base, with the surplus or shortage amortized over a reasonable time.
Added by Acts 2011, 82nd Leg., R.S., Ch. 172 (S.B. 403), Sec. 1, eff. May 28, 2011.
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 104.060. Consideration of Compensation and Benefit Expenses

Sec. 104.060.  CONSIDERATION OF COMPENSATION AND BENEFIT EXPENSES.  (a)  In this section, "employee compensation and benefits" includes base salaries, wages, incentive compensation, and benefits. The term does not include:
(1)  pension or other postemployment benefits; and
(2)  incentive compensation related to attaining financial metrics for an executive officer whose compensation is required to be disclosed under 17 C.F.R. Section 229.402(a).
(b)  When establishing a gas utility's rates, the regulatory authority shall presume that employee compensation and benefits expenses are reasonable and necessary if the expenses are consistent with market compensation studies issued not earlier than three years before the initiation of the proceeding to establish the rates.
Added by Acts 2019, 86th Leg., R.S., Ch. 1362 (H.B. 1767), Sec. 1, eff. June 15, 2019.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter C. Rate Changes Proposed by Utility › Section 104.101. Definition

Sec. 104.101.  DEFINITION.  In this subchapter, "major change" means an increase in rates that would increase the aggregate revenues of the applicant more than the greater of $100,000 or 2-1/2 percent.  The term does not include an increase in rates that the regulatory authority allows to go into effect or the gas utility makes under an order of the regulatory authority after hearings held with public notice.
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 C. Rate Changes Proposed by Utility › Section 104.102. Statement of Intent to Increase Rates

Sec. 104.102.  STATEMENT OF INTENT TO INCREASE RATES.  (a)  A gas utility may not increase its rates unless the utility files a statement of its intent with the regulatory authority that has original jurisdiction over those rates at least 35 days before the effective date of the proposed increase.
(b)  The gas utility shall also mail or deliver a copy of the statement of intent to the appropriate officer of each affected municipality.
(c)  The statement of intent must include:
(1)  proposed revisions of tariffs and schedules;  and
(2)  a detailed statement of:
(A)  each proposed increase;
(B)  the effect the proposed increase is expected to have on the revenues of the utility;
(C)  each class and number of utility consumers affected;  and
(D)  any other information required by the regulatory authority's rules and regulations.
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 C. Rate Changes Proposed by Utility › Section 104.103. Notice of Intent to Increase Rates

Sec. 104.103.  NOTICE OF INTENT TO INCREASE RATES.  (a)  The gas utility shall:
(1)  publish, in conspicuous form, notice to the public of the proposed increase once each week for four successive weeks in a newspaper having general circulation in each county containing territory affected by the proposed increase;  and
(2)  provide notice of the proposed increase to any other affected person as required by the regulatory authority's rules.
(b)  Instead of publishing newspaper notice, a gas utility may provide notice by:
(1)  mailing the notice by United States mail, postage prepaid, to the billing address of each directly affected customer;
(2)  including the notice, in conspicuous form, in the bill of each directly affected customer; or
(3)  sending the notice by e-mail to each directly affected customer if that address is available to the utility.
(c)  A gas utility may provide a customer with notice of the utility's intent to increase rates by e-mail as described by Subsection (b)(3) only if the customer has consented in writing to the use of the customer's e-mail address for that purpose.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 103 (S.B. 885), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter C. Rate Changes Proposed by Utility › Section 104.104. Early Effective Date of Rate Increase

Sec. 104.104.  EARLY EFFECTIVE DATE OF RATE INCREASE.  (a)  For good cause shown, the regulatory authority may allow a rate increase, other than a major change, to take effect:
(1)  before the end of the 35-day period prescribed by Section 104.102;  and
(2)  under conditions the regulatory authority prescribes, subject to suspension as provided by this subchapter.
(b)  The gas utility shall immediately revise its schedules to include the increase.
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 C. Rate Changes Proposed by Utility › Section 104.105. Determination of Propriety of Rate Change; Hearing

Sec. 104.105.  DETERMINATION OF PROPRIETY OF RATE CHANGE;  HEARING.  (a)  If a schedule modifying or increasing rates is filed with a regulatory authority, the regulatory authority shall, on complaint by an affected person, or may, on its own motion, not later than the 30th day after the effective date of the increase, enter on a hearing to determine the propriety of the increase.
(b)  The regulatory authority shall hold a hearing in every case in which the increase constitutes a major change.  The regulatory authority may, however, use an informal proceeding if the regulatory authority does not receive a complaint before the expiration of 45 days after the date notice of the increase is filed.
(c)  The regulatory authority shall give reasonable notice of the hearing, including notice to the governing body of each affected municipality and county.  The gas utility is not required to provide a formal answer or file any other formal pleading in response to the notice, and the absence of an answer does not affect an order for a hearing.
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 C. Rate Changes Proposed by Utility › Section 104.106. Preference to Hearing

Sec. 104.106.  PREFERENCE TO HEARING.  The regulatory authority shall:
(1)  give preference to the hearing under this subchapter and to deciding questions arising under this subchapter over any other question pending before it;  and
(2)  decide the questions as quickly as possible.
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 C. Rate Changes Proposed by Utility › Section 104.107. Rate Suspension; Deadline

Sec. 104.107.  RATE SUSPENSION;  DEADLINE.  (a)  Pending the hearing and a decision:
(1)  the local regulatory authority, after delivering to the gas utility a written statement of the regulatory authority's reasons, may suspend the operation of the schedule for not longer than 90 days after the date the schedule would otherwise be effective;  and
(2)  the railroad commission may suspend the operation of the schedule for not longer than 150 days after the date the schedule would otherwise be effective.
(b)  The 150-day period prescribed by Subsection (a)(2) shall be extended for two days for each day the actual hearing on the merits of the case exceeds 15 days.
(c)  If the regulatory authority does not make a final determination concerning a schedule of rates before expiration of the applicable suspension period, the regulatory authority is considered to have approved the schedule.  This approval is subject to the authority of the regulatory authority thereafter to continue a hearing in progress.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 67, eff. Sept. 1, 2001.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter C. Rate Changes Proposed by Utility › Section 104.108. Temporary Rates

Sec. 104.108.  TEMPORARY RATES.  (a)  The regulatory authority may establish temporary rates to be in effect during the applicable suspension period under Section 104.107.
(b)  If the regulatory authority does not establish temporary rates, the rates in effect when the suspended schedule was filed continue in effect during the suspension 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 104 - Rates and Services › Subchapter C. Rate Changes Proposed by Utility › Section 104.109. Bonded Rates

Sec. 104.109.  BONDED RATES.  (a)  A gas utility may put a changed rate into effect by filing a bond with the regulatory authority if the regulatory authority fails to make a final determination within 90 days from the date the proposed increase would otherwise be effective.
(b)  The bonded rate may not exceed the proposed rate.
(c)  The bond must be:
(1)  payable to the regulatory authority in an amount, in a form, and with a surety approved by the regulatory authority;  and
(2)  conditioned on refund.
(d)  The gas utility shall refund or credit against future bills:
(1)  money collected under the bonded rates in excess of the rate finally ordered;  and
(2)  interest on that money, at the current interest rate as determined by the regulatory 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 104 - Rates and Services › Subchapter C. Rate Changes Proposed by Utility › Section 104.110. Establishment of Final Rates

Sec. 104.110.  ESTABLISHMENT OF FINAL RATES.  (a)  If, after hearing, the regulatory authority finds the rates are unreasonable or in violation of law, the regulatory authority shall:
(1)  enter an order establishing the rates the gas utility shall charge or apply for the service in question;  and
(2)  serve a copy of the order on the gas utility.
(b)  The rates established in the order shall be observed thereafter until changed 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 C. Rate Changes Proposed by Utility › Section 104.111. Approval of Decrease in Rates

Sec. 104.111.  APPROVAL OF DECREASE IN RATES.  Notwithstanding any other provision in this subtitle, the regulatory authority may, without reference to the cost of service standard prescribed by Section 104.051, administratively approve a decrease in rates proposed by the applicant and agreed on by each party directly affected unless the regulatory authority determines that the proposed decrease is not in the public 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 104 - Rates and Services › Subchapter C. Rate Changes Proposed by Utility › Section 104.112. Surcharge to Recover Relocation Costs

Sec. 104.112.  SURCHARGE TO RECOVER RELOCATION COSTS.  (a)  This section applies to a gas utility's costs of relocating a facility to accommodate construction or improvement of a highway, road, street, public way, or other public work by or on behalf of the United States, this state, a political subdivision of this state, or another entity having the power of eminent domain that are not reimbursed by a source other than as provided by this section.
(b)  A gas utility may recover its relocation costs to which this section applies through a surcharge on gas volumes sold and transported to customers in the service area where the relocation occurred by applying to each appropriate regulatory authority for a new rate schedule or tariff.  The gas utility is not required to file a statement of intent to increase rates to institute the surcharge, and the other provisions of this subchapter, other than appeal rights, do not apply to institution of the surcharge.
(c)  An application under Subsection (b) must include sufficient documentation to demonstrate:
(1)  the requirement for each relocation;
(2)  the entity requiring the relocation;
(3)  costs incurred for relocation of comparable facilities;
(4)  surcharge computations;  and
(5)  that reasonable efforts have been made to receive reimbursement from the entity requiring the relocation, if applicable.
(d)  Not later than the 35th day after the date an application under Subsection (b) is received, the regulatory authority shall administratively grant or deny the application.  Denial of the application must be based on a finding that:
(1)  the relocation was not necessary or required;
(2)  the costs of the relocation were excessive or not supported;
(3)  the utility did not pursue reimbursement from the entity requiring the relocation, if applicable;
(4)  the surcharge is unduly discriminatory among customers or classes of customers located in the service area;  or
(5)  the period over which the relocation costs are designed to be recovered is less than one or more than three years.
(e)  If the regulating authority does not make a decision before the deadline prescribed by Subsection (d), the application is approved.
Added by Acts 1999, 76th Leg., ch. 219, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 662, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter D. Rate Changes Proposed by Commission › Section 104.151. Unreasonable or Violative Existing Rates

Sec. 104.151.  UNREASONABLE OR VIOLATIVE EXISTING RATES.  (a)  If the regulatory authority, on its own motion or on complaint by an affected person, after reasonable notice and hearing, finds that the existing rates of a gas utility for a service are unreasonable or in violation of law, the regulatory authority shall:
(1)  enter an order establishing the just and reasonable rates to be observed thereafter, including maximum or minimum rates;  and
(2)  serve a copy of the order on the gas utility.
(b)  The rates set under Subsection (a) constitute the legal rates of the gas utility until changed 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 D. Rate Changes Proposed by Commission › Section 104.152. Investigating Costs of Obtaining Service From Another Source

Sec. 104.152.  INVESTIGATING COSTS OF OBTAINING SERVICE FROM ANOTHER SOURCE.  If a gas utility does not produce the service that it distributes, transmits, or furnishes to the public for compensation but obtains the service from another source, the regulatory authority may investigate the cost of that production in an investigation of the reasonableness of the gas utility's 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 E. Rates for Governmental Entities › Section 104.201. Transportation Rates Between Gas Utility or Municipally Owned Utility and State Agency

Sec. 104.201.  TRANSPORTATION RATES BETWEEN GAS UTILITY OR MUNICIPALLY OWNED UTILITY AND STATE AGENCY.  (a)  Notwithstanding Section 104.003(b), absent a contract for transportation service between a state agency and a gas utility or municipally owned utility, the railroad commission, not later than the 210th day after the date either party files a request to set a transportation rate, shall establish the transportation rate for the state agency.  The commission has exclusive original jurisdiction to establish a transportation rate for a state agency under this section.
(b)  The railroad commission shall base its determination of the transportation rate under Subsection (a) on the cost of providing the transportation service for both the distribution system and the transmission system, as applicable, of the gas utility or municipally owned utility.
(c)  The railroad commission may order temporary rates under Subsection (a) as provided for under the commission's appellate 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 104 - Rates and Services › Subchapter E. Rates for Governmental Entities › Section 104.202. Excluded Expenses

Sec. 104.202.  EXCLUDED EXPENSES.  (a)  The rates that a gas utility or municipally owned utility charges a state agency may not include an amount representing a gross receipts assessment, regulatory assessment, or similar expense of the utility.
(b)  An expense under Subsection (a) that is reasonable and is not recovered from a state agency under this section may be recovered from other customers of the gas utility or municipally owned utility.
(c)  A gross receipts assessment, regulatory assessment, or similar expense of the utility does not include a payment to a municipality under a contract, franchise, or other agreement.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 1326, Sec. 1, eff. June 18, 1999.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter E. Rates for Governmental Entities › Section 104.203. Payment in Lieu of Tax

Sec. 104.203.  PAYMENT IN LIEU OF TAX.  (a)  A payment made in lieu of a tax by a municipally owned utility to the municipality by which the utility is owned may not be considered an expense of operation in establishing the utility's rate for providing utility service to a school district or hospital district.
(b)  A rate a municipally owned utility receives from a school district or hospital district may not be used to make or to cover the cost of making payments in lieu of taxes to the municipality that owns the 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 F. Services › Section 104.251. General Standard

Sec. 104.251.  GENERAL STANDARD.  A gas utility shall furnish service, instrumentalities, and facilities that are safe, adequate, efficient, and 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 104 - Rates and Services › Subchapter F. Services › Section 104.252. Authority of Regulatory Authority Concerning Standards

Sec. 104.252.  AUTHORITY OF REGULATORY AUTHORITY CONCERNING STANDARDS.  A regulatory authority, on its own motion or on complaint and after reasonable notice and hearing, may:
(1)  adopt just and reasonable standards, classifications, regulations, or practices a gas utility must follow in furnishing a service;
(2)  adopt adequate and reasonable standards for measuring a condition, including quantity, quality, and pressure relating to the furnishing of a service;
(3)  adopt reasonable regulations for examining, testing, and measuring a service;  and
(4)  adopt or approve reasonable rules, regulations, specifications, and standards to ensure the accuracy of equipment, including meters and instruments, used to measure a 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 F. Services › Section 104.253. Rule or Standard

Sec. 104.253.  RULE OR STANDARD.  (a)  A gas utility may file with the regulatory authority a standard, classification, regulation, or practice the utility follows.
(b)  The standard, classification, regulation, or practice continues in force until:
(1)  amended by the utility;  or
(2)  changed by the regulatory authority 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 F. Services › Section 104.254. Service

Sec. 104.254.  SERVICE.  A gas utility or municipally owned utility may not refuse to provide service to a state agency if pipeline capacity is available on an existing facility of the 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 F. Services › Section 104.2545. Required Service to Public Retail Customer

Sec. 104.2545.  REQUIRED SERVICE TO PUBLIC RETAIL CUSTOMER.  (a)  In this section, "service site" means facilities or buildings operated by a public retail customer or a group of adjacent facilities or buildings operated by a public retail customer within one contiguous geographical area.
(b)  Unless the utility is prohibited by other law from providing the service and if sufficient pipeline capacity is available on an existing facility of the utility to provide the service, a gas utility or municipally owned utility may not refuse to provide service to a public retail customer at a service site, at rates established as provided by Subsection (c), the following services:
(1)  the sale of gas;
(2)  the transportation of an annual average of 25 million British thermal units or more each day of gas that is:
(A)  taken as a royalty in kind;  and
(B)  owned by the state or managed by a marketing program operated by the state or by a state agency;  or
(3)  a combination of the services described by Subdivisions (1) and (2).
(c)  A utility shall provide a service described by Subsection (b) at rates provided by a written contract negotiated between the utility and the state or a state agency.  If the utility and the state or state agency are not able to agree to a contract rate, a fair and reasonable rate may be determined for the public retail customer, as a rate for a separate class of service, by the railroad commission or, for municipally owned gas utilities, by the relevant regulatory body under this chapter.
(d)  In this section, "public retail customer" has the meaning assigned by Section 101.009.
Added by Acts 1999, 76th Leg., ch. 300, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2003, 78th Leg., ch. 563, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 53 (H.B. 2263), Sec. 6, eff. May 17, 2019.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter F. Services › Section 104.255. Billing

Sec. 104.255.  BILLING.  (a)  A gas utility or municipally owned utility may not bill or otherwise require the state or a state agency or institution to pay for service before the service is provided.
(b)  The railroad commission shall adopt rules concerning payment of bills by the state or a state agency to a gas utility or municipally owned utility.  The rules must be consistent with Chapter 2251, Government Code.
(c)  This subtitle does not prohibit a gas utility or municipally owned utility from entering into an agreement with the state or a state agency to establish a level or average monthly service billing plan.  An agreement under this subsection must require reconciliation of the leveled or equalized bills quarterly.
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 F. Services › Section 104.2551. Electronic Billing

Sec. 104.2551.  ELECTRONIC BILLING.  A gas utility or municipally owned utility may transmit the utility's bill for services through the Internet or by other electronic means instead of through the United States mail on the request of a customer of the gas utility or municipally owned utility.
Added by Acts 2001, 77th Leg., ch. 1233, Sec. 68, eff. Sept. 1, 2001.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter F. Services › Section 104.256. Examination and Test of Instrument or Equipment; Inspection

Sec. 104.256.  EXAMINATION AND TEST OF INSTRUMENT OR EQUIPMENT;  INSPECTION.  (a)  A regulatory authority may:
(1)  examine and test equipment, including meters and instruments, used to measure service of a gas utility;  and
(2)  set up and use on the premises occupied by a gas utility an apparatus or appliance necessary for the examination or test.
(b)  The gas utility is entitled to be represented at an examination, test, or inspection made under this section.
(c)  The gas utility and its officers and employees shall facilitate the examination, test, or inspection by giving reasonable aid to the regulatory authority and to any person designated by the regulatory authority for the performance of those duties.
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 F. Services › Section 104.257. Inspection for Consumer

Sec. 104.257.  INSPECTION FOR CONSUMER.  (a)  A consumer may have a meter or other measuring device tested by a gas utility:
(1)  once without charge, after a reasonable period of presumed accuracy that the regulatory authority establishes by rule;  and
(2)  at a shorter interval on payment of a reasonable fee established by the regulatory authority.
(b)  The regulatory authority shall establish reasonable fees to be paid for other examining or testing of a measuring device on the request of a consumer.
(c)  If the consumer requests the test under Subsection (a)(2) and the measuring device is found unreasonably defective or incorrect to the substantial disadvantage of the consumer, the fee the consumer paid at the time of the request shall be refunded.
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 F. Services › Section 104.258. Disconnection of Gas Service

Sec. 104.258.  DISCONNECTION OF GAS SERVICE.  (a)  In this section:
(1)  "Extreme weather emergency" means a period during which the previous day's highest temperature did not exceed 32 degrees Fahrenheit and the temperature is predicted to remain at or below that level for the next 24 hours according to the nearest National Weather Service reports.
(2)  "Provider" means:
(A)  a gas utility, as defined by Sections 101.003 and 121.001;  and
(B)  an owner, operator, or manager of a mobile home park or apartment who purchases natural gas through a master meter for delivery to a dwelling unit in a mobile home park or apartment house under Chapter 124.
(b)  A provider may not disconnect natural gas service to a residential customer on a weekend day unless personnel of the provider are available on that day to take payments and reconnect service.
(c)  A provider may not disconnect natural gas service to a residential customer during an extreme weather emergency.  The provider shall defer collection of the full payment of bills that are due during an extreme weather emergency until after the emergency is over and shall work with customers to establish a pay schedule for deferred bills.
Added by Acts 2001, 77th Leg., ch. 1149, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter H. Protection Against Utility Service Disconnection › Section 104.351. Definitions

Sec. 104.351.  DEFINITIONS.  In this subchapter:
(1)  "Customer" means any person in whose name gas utility service is billed, including individuals, governmental units at all levels of government, corporate entities, and any other entity with legal capacity to be billed for gas service.
(2)  "Gas utility" has the meaning assigned by Section 181.021 but does not include a municipally owned utility or gas utility owned by an electric cooperative.
(3)  "Nonsubmetered master metered multifamily property" means an apartment, a leased or owner-occupied condominium, or one or more buildings containing at least 10 dwellings that receive gas utility service that is master metered but not submetered.
Added by Acts 2013, 83rd Leg., R.S., Ch. 322 (H.B. 1772), Sec. 3, eff. January 1, 2014.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter H. Protection Against Utility Service Disconnection › Section 104.352. Notice of Disconnection to Municipalities for Nonsubmetered Master Metered Multifamily Properties

Sec. 104.352.  NOTICE OF DISCONNECTION TO MUNICIPALITIES FOR NONSUBMETERED MASTER METERED MULTIFAMILY PROPERTIES.  (a) A gas utility shall send a written notice of service disconnection to a municipality before the gas utility disconnects service to a nonsubmetered master metered multifamily property for nonpayment if:
(1)  the property is located in the municipality; and
(2)  the municipality establishes an authorized representative to receive the notice as described by Section 104.353(c).
(b)  The gas utility shall send the notice required by this section not later than the 10th day before the date gas utility service is scheduled for disconnection.
Added by Acts 2013, 83rd Leg., R.S., Ch. 322 (H.B. 1772), Sec. 3, eff. January 1, 2014.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter H. Protection Against Utility Service Disconnection › Section 104.353. Additional Safeguards

Sec. 104.353.  ADDITIONAL SAFEGUARDS.  (a)  The customer safeguards provided by this subchapter are in addition to safeguards provided by other law or agency rules.
(b)  This subchapter does not prohibit a municipality or the regulatory authority from adopting customer safeguards that exceed the safeguards provided by this chapter.
(c)  The regulatory authority by rule shall develop a mechanism by which a municipality may provide the regulatory authority with the contact information of the municipality's authorized representative to whom the notice required by Section 104.352 must be sent.  The regulatory authority shall make the contact information available to the public.
Added by Acts 2013, 83rd Leg., R.S., Ch. 322 (H.B. 1772), Sec. 3, eff. January 1, 2014.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.361. Purpose; Railroad Commission Duty

Sec. 104.361.  PURPOSE; RAILROAD COMMISSION DUTY.  (a)  The purpose of this subchapter is to reduce the cost that customers would otherwise experience because of extraordinary costs that gas utilities incurred to secure gas supply and provide service during Winter Storm Uri, and to restore gas utility systems after that event, by providing securitization financing for gas utilities to recover those costs.  The securitization financing mechanism authorized by this subchapter will:
(1)  provide rate relief to customers by extending the period during which the costs described by this subsection are recovered from customers; and
(2)  support the financial strength and stability of gas utility companies.
(b)  The railroad commission shall ensure that securitization provides tangible and quantifiable benefits to customers, greater than would have been achieved absent the issuance of customer rate relief bonds.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.363. Extraordinary Costs

Sec. 104.363.  EXTRAORDINARY COSTS.  For the purposes of this subchapter, extraordinary costs are the reasonable and necessary costs related to Winter Storm Uri, including carrying costs, placed in a regulatory asset and approved by the railroad commission in a regulatory asset determination under Section 104.365.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.364. Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities

Sec. 104.364.  JURISDICTION AND POWERS OF RAILROAD COMMISSION AND OTHER REGULATORY AUTHORITIES.  (a)  The railroad commission may authorize the issuance of customer rate relief bonds if the requirements of Section 104.366 are met.
(b)  The railroad commission may assess to a gas utility costs associated with administering this subchapter.  Assessments must be recovered from rate-regulated customers as part of gas cost.
(c)  The railroad commission has exclusive, original jurisdiction to issue financing orders that authorize the creation of customer rate relief property.  Customer rate relief property must be created and vested in an issuing financing entity and does not constitute property of the railroad commission or any gas utility.
(d)  Except as provided by Subsection (c), this subchapter does not limit or impair a regulatory authority's plenary jurisdiction over the rates, charges, and services rendered by gas utilities in this state under Chapter 102.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.367. Property Rights

Sec. 104.367.  PROPERTY RIGHTS.  (a)  Customer rate relief bonds are the limited obligation solely of the issuing financing entity and are not a debt of a gas utility or a debt or a pledge of the faith and credit of this state or any political subdivision of this state.
(b)  Customer rate relief bonds are nonrecourse to the credit or any assets of this state or the authority.  A trust fund created in connection with the issuance of customer rate relief bonds is not subject to Subtitle B, Title 9, Property Code.
(c)  The rights and interests of an issuing financing entity or the successor under a financing order, including the right to receive customer rate relief charges authorized in the financing order, are only contract rights until pledged in connection with the issuance of the customer rate relief bonds, at which time the rights and interests become customer rate relief property.
(d)  Customer rate relief property created under a financing order is vested ab initio in the issuing financing entity.  Customer rate relief property constitutes a present property right for purposes of contracts concerning the sale or pledge of property, notwithstanding that the imposition and collection of customer rate relief charges depends on further  acts of the gas utility or others that have not yet occurred.  The financing order remains in effect, and the customer rate relief property continues to exist, for the same period as the pledge of the state described by Section 104.374.
(e)  All revenue and collections resulting from customer rate relief charges constitute proceeds only of a property right arising from the financing order.
(f)  An amount owed by an issuing financing entity under an ancillary agreement or a credit agreement is payable from and secured by a pledge and interest in the customer rate relief property to the extent provided in the documents evidencing the ancillary agreement or credit agreement.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.368. Property Interest Not Subject to Setoff, Counterclaim, Surcharge, or Defense

Sec. 104.368.  PROPERTY INTEREST NOT SUBJECT TO SETOFF, COUNTERCLAIM, SURCHARGE, OR DEFENSE.  The interest of an issuing financing entity or pledgee in customer rate relief property, including the revenue and collections arising from customer rate relief charges, is not subject to setoff, counterclaim, surcharge, or defense by the gas utility or any other person or in connection with the bankruptcy of the gas utility, the authority, or any other entity.  A financing order remains in effect and unabated notwithstanding the bankruptcy of the gas utility, the authority, an issuing financing entity, or any successor or assignee of the gas utility, authority, or issuing financing entity.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.369. Customer Rate Relief Charges Nonbypassable

Sec. 104.369.  CUSTOMER RATE RELIEF CHARGES NONBYPASSABLE.  A financing order must include terms ensuring that the imposition and collection of the customer rate relief charges authorized in the order are nonbypassable.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.370. True-Up Mechanism

Sec. 104.370.  TRUE-UP MECHANISM.  (a)  A financing order must include a formulaic true-up charge adjustment mechanism that requires that the customer rate relief charges be reviewed and adjusted at least annually by the servicer or replacement servicer, including a subservicer or replacement subservicer, at time periods and frequencies provided in the financing order, to:
(1)  correct any overcollections or undercollections of the preceding 12 months; and
(2)  ensure the expected recovery of amounts sufficient to provide for the timely payment of customer rate relief bond principal and interest payments and other financing costs.
(b)  True-up charge adjustments must become effective not later than the 30th day after the date the railroad commission receives a true-up charge adjustment letter from the servicer or replacement servicer notifying the railroad commission of the pending adjustment.
(c)  Any administrative review of true-up charge adjustments must be limited to notifying the servicer of mathematical or clerical errors in the calculation.  The servicer may correct the error and refile a true-up charge adjustment letter, with the adjustment becoming effective as soon as practicable but not later than the 30th day after the date the railroad commission receives the refiled letter.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.371. Security Interests; Assignment; Commingling; Default

Sec. 104.371.  SECURITY INTERESTS; ASSIGNMENT; COMMINGLING; DEFAULT.  (a)  Customer rate relief property does not constitute an account or general intangible under Section 9.106, Business & Commerce Code.  The creation, granting, perfection, and enforcement of liens and security interests in customer rate relief property that secures customer rate relief bonds are governed by Chapter 1208, Government Code.
(b)  The priority of a lien and security interest perfected under this section is not impaired by any later adjustment of customer rate relief charges under a mechanism adopted under Section 104.370 or by the commingling of funds arising from customer rate relief charges with other funds.  Any other security interest that may apply to those funds is terminated when the funds are transferred to a segregated account for the issuing financing entity or a financing party.  If customer rate relief property has been transferred to a trustee or another pledgee of the issuing financing entity, any proceeds of that property must be held in trust for the financing party.
(c)  If a default or termination occurs under the customer rate relief bonds, a district court of Travis County, on application by or on behalf of the financing parties, shall order the sequestration and payment to the financing parties of revenue arising from the customer rate relief charges.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 3 - Gas Regulation › Subtitle A - Gas Utility Regulatory Act › Chapter 104 - Rates and Services › Subchapter I. Customer Rate Relief Bonds › Section 104.372. Bond Proceeds in Trust

Sec. 104.372.  BOND PROCEEDS IN TRUST.  (a)  The issuing financing entity may deposit proceeds of customer rate relief bonds issued by the issuing financing entity under this subchapter with a trustee selected by the issuing financing entity or the proceeds may be held by the comptroller in a dedicated trust fund outside the state treasury in the custody of the comptroller.
(b)  Bond proceeds, net of the financing costs and reserves described by Subdivisions (2) and (3), including investment income, must be held in trust for the exclusive benefit of the railroad commission's policy of reimbursing gas utility costs and applied in accordance with the financing order.  The issuing financing entity shall deliver the net proceeds, as provided in the applicable financing order, to:
(1)  reimburse each gas utility the regulatory asset amount determined to be reasonable for that gas utility in the financing order;
(2)  pay the financing costs of issuing the bonds; and
(3)  provide bond reserves or fund any capitalized interest, as applicable.
(c)  On full payment of the customer rate relief bonds and any related financing costs, any customer rate relief charges or other amounts held as security for the bonds shall be used to provide credits to gas utility customers as provided in the financing order.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 5, eff. June 16, 2021.