reglab/statecodes huggingface dataset:
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.0021. Weather Emergency Preparedness

Sec. 35.0021.  WEATHER EMERGENCY PREPAREDNESS.  (a)  This section applies only to a municipally owned utility, electric cooperative, power generation company, or exempt wholesale generator that sells electric energy at wholesale in the ERCOT power region.
(b)  The commission by rule shall require each provider of electric generation service described by Subsection (a) to implement measures to prepare the provider's generation assets to provide adequate electric generation service during a weather emergency according to reliability standards adopted by the commission.  In adopting the rules, the commission shall take into consideration weather predictions produced by the office of the state climatologist.
(c)  The independent organization certified under Section 39.151 for the ERCOT power region shall:
(1)  inspect generation assets in the ERCOT power region for compliance with the reliability standards;
(2)  provide the owner of a generation asset with a reasonable period of time in which to remedy any violation the independent organization discovers in an inspection; and
(3)  report to the commission any violation.
(c-1)  The independent organization certified under Section 39.151 for the ERCOT power region shall prioritize inspections conducted under Subsection (c)(1) based on risk level, as determined by the organization.
(d)  The commission by rule shall require a provider of electric generation service described by Subsection (a) for a generation asset that experiences repeated or major weather-related forced interruptions of service to:
(1)  contract with a person who is not an employee of the provider to assess the provider's weatherization plans, procedures, and operations for that asset; and
(2)  submit the assessment to the commission and the independent organization certified under Section 39.151 for the ERCOT power region.
(e)  The commission may require a provider of electric generation service described by Subsection (a) to implement appropriate recommendations included in an assessment submitted to the commission under Subsection (d).
(f)  The independent organization certified under Section 39.151 for the ERCOT power region shall review, coordinate, and approve or deny requests by providers of electric generation service described by Subsection (a) for a planned power outage during any season and for any period of time.
(g)  The commission shall impose an administrative penalty on an entity, including a municipally owned utility or an electric cooperative, that violates a rule adopted under this section and does not remedy that violation within a reasonable period of time.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 13, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.0022. Service Interruption Notifications

Sec. 35.0022.  SERVICE INTERRUPTION NOTIFICATIONS.  (a)  This section applies only to a provider of electric generation service described by Section 35.0021(a).
(b)  The commission by rule shall require a provider of electric generation service to provide to the independent organization certified under Section 39.151 for the ERCOT power region the reason for each unplanned service interruption.  Not later than the third business day after the service is restored, the independent organization shall include the reason for each unplanned service interruption in a publicly available report published on the independent organization's Internet website.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 8, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.003. Purchase From Affiliate; Undue Preference Prohibited

Sec. 35.003.  PURCHASE FROM AFFILIATE;  UNDUE PREFERENCE PROHIBITED.  (a)  An electric utility may purchase power from an affiliate in accordance with this title.
(b)  An electric utility may not grant an undue preference to a person in connection with the utility's purchase or sale of electric energy at wholesale or other utility service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.006. Rules Related to Wholesale Transmission Service, Rates, and Access

Sec. 35.006.  RULES RELATED TO WHOLESALE TRANSMISSION SERVICE, RATES, AND ACCESS.  (a)  The commission shall adopt rules relating to wholesale transmission service, rates, and access.  The rules:
(1)  must be consistent with the standards in this subchapter;
(2)  may not be contrary to federal law, including any applicable decision, rule, or policy statement of a federal regulatory agency having jurisdiction;
(3)  must require transmission services that are not less than the transmission services the Federal Energy Regulatory Commission may require in similar circumstances;
(4)  must require that an electric utility provide all ancillary services associated with the utility's discounted wholesale sales at the same prices and under the same terms as the services are provided to a third person;  and
(5)  must require that an electric utility provide all ancillary services associated with the utility's discounted wholesale sales to a third person on request.
(b)  The commission shall adopt rules relating to the registration and reporting requirements of a qualifying facility, exempt wholesale generator, and power marketer.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.007. Tariffs Required

Sec. 35.007.  TARIFFS REQUIRED.  (a)  Except as provided by Subsection (b), an electric utility that owns or operates a transmission facility shall file a tariff in compliance with commission rules adopted under Section 35.006.
(b)  An electric utility is not required to file a tariff under this section if the utility's terms for access and pricing for wholesale transmission service are included in another electric utility's tariff.
(c)  An electric utility shall file a tariff required by this section with the appropriate state or federal regulatory agency having jurisdiction over the utility's transmission service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.008. Alternative Dispute Resolution

Sec. 35.008.  ALTERNATIVE DISPUTE RESOLUTION.  The commission may require that each party to a dispute concerning prices or terms of wholesale transmission service engage in a nonbinding alternative dispute resolution process before seeking resolution of the dispute by the commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.009. Amounts Paid in Lieu of Ad Valorem Taxes for Certain Facilities

Sec. 35.009.  AMOUNTS PAID IN LIEU OF AD VALOREM TAXES FOR CERTAIN FACILITIES.  A municipally owned utility that is required to apply for a certificate of public convenience and necessity to construct, install, or extend a transmission facility within ERCOT under Chapter 37 is entitled to recover, through the utility's wholesale transmission rate, reasonable payments made to a taxing entity in lieu of ad valorem taxes on that transmission facility, provided that:
(1)  the utility enters into a written agreement with the governing body of the taxing entity related to the payments;
(2)  the amount paid is the same as the amount the utility would have to pay to the taxing entity on that transmission facility if the facility were subject to ad valorem taxation;
(3)  the governing body of the taxing entity is not the governing body of the utility; and
(4)  the utility provides the commission with a copy of the written agreement and any other information the commission considers necessary in relation to the agreement.
Added by Acts 2015, 84th Leg., R.S., Ch. 1162 (S.B. 776), Sec. 2, eff. September 1, 2015.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter A. Competition and Transmission Access in the Wholesale Market › Section 35.010. Costs Related to Reporting on Safety Processes and Inspections for Certain Utilities

Sec. 35.010.  COSTS RELATED TO REPORTING ON SAFETY PROCESSES AND INSPECTIONS FOR CERTAIN UTILITIES.  (a)  This section applies only to a municipally owned utility or electric cooperative that has wholesale transmission rates established by the commission.
(b)  Costs incurred by a municipally owned utility or electric cooperative to comply with Section 38.102 shall be recorded as a regulatory asset for timely recovery in wholesale transmission rates established by the commission.
(c)  The commission may adopt rules relating to the recording of regulatory assets under this section.
Added by Acts 2019, 86th Leg., R.S., Ch. 1320 (H.B. 4150), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter B. Exempt Wholesale Generators, Distributed Natural Gas Generation Facilities, and Power Marketers › Section 35.031. Authority to Operate

Sec. 35.031.  AUTHORITY TO OPERATE.  An exempt wholesale generator or power marketer may sell electric energy only at wholesale.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter B. Exempt Wholesale Generators, Distributed Natural Gas Generation Facilities, and Power Marketers › Section 35.032. Commission Registration and Required Reports

Sec. 35.032.  COMMISSION REGISTRATION AND REQUIRED REPORTS.  (a)  An exempt wholesale generator or power marketer that sells electric energy in this state shall, not later than the 30th day after the date it becomes subject to this section:
(1)  register with the commission;  or
(2)  provide to the commission proof that it has registered with the Federal Energy Regulatory Commission or has been authorized by the Federal Energy Regulatory Commission to sell electric energy at market-based rates.
(b)  The exempt wholesale generator or power marketer may register by filing with the commission:
(1)  a description of the location of any facility used to provide service;
(2)  a description of the type of service provided;
(3)  a copy of any information filed with the Federal Energy Regulatory Commission in connection with registration with that commission;  and
(4)  other information required by commission rule.
(c)  An exempt wholesale generator or power marketer required to register under Subsection (a) shall file any report required by commission rule.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter B. Exempt Wholesale Generators, Distributed Natural Gas Generation Facilities, and Power Marketers › Section 35.033. Affiliate Wholesale Provider

Sec. 35.033.  AFFILIATE WHOLESALE PROVIDER.  An affiliate of an electric utility may be an exempt wholesale generator or power marketer and may sell electric energy to its affiliated electric utility in accordance with laws governing wholesale sales of electric energy.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 19, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter B. Exempt Wholesale Generators, Distributed Natural Gas Generation Facilities, and Power Marketers › Section 35.034. Transfer of Assets

Sec. 35.034.  TRANSFER OF ASSETS.  (a)  Unless an electric utility receives commission approval under Subsection (b), the utility may not sell or transfer a facility to an affiliate or otherwise consider the facility to be an eligible facility as defined by federal law if on May 27, 1995, the utility had a rate or charge in effect:
(1)  for or in connection with the construction of the facility;
(2)  for electric energy produced by the construction of the facility;  or
(3)  for electric energy produced by the facility other than a portion of a rate or charge that represents recovery of the cost of a wholesale rate or charge.
(b)  The commission, after notice and hearing, may allow an electric utility to sell or transfer a facility governed by Subsection (a) to an affiliate or otherwise allow the facility to become an eligible facility only if the transaction:
(1)  will benefit ratepayers of the utility making the sale or transfer;
(2)  is in the public interest;  and
(3)  otherwise complies with state law.
(c)  For purposes of this section, "electric utility" does not include a river authority.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 20, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter B. Exempt Wholesale Generators, Distributed Natural Gas Generation Facilities, and Power Marketers › Section 35.035. Valuation and Accounting of Transferred Assets

Sec. 35.035.  VALUATION AND ACCOUNTING OF TRANSFERRED ASSETS.  (a)  A transfer of assets from an electric utility to an affiliated exempt wholesale generator or power marketer shall be valued at the greater of net book cost or fair market value.
(b)  A transfer of assets from an exempt wholesale generator or power marketer to an affiliated electric utility shall be valued at the lesser of net book cost or fair market value.
(c)  At the time that a transfer of assets between an electric utility and an affiliated exempt wholesale generator or power marketer is approved, the commission shall order the utility to adjust its rates so that the utility's tariffs reflect benefits from the proceeds of the sale and exclude any costs associated with the transferred facility.
(d)  For purposes of this section, "electric utility" does not include a river authority.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 21, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter B. Exempt Wholesale Generators, Distributed Natural Gas Generation Facilities, and Power Marketers › Section 35.038. Facilitating Certain Intercompany Landfill Gas-to-Electricity Use

Sec. 35.038.  FACILITATING CERTAIN INTERCOMPANY LANDFILL GAS-TO-ELECTRICITY USE.  (a)  This section only applies in a county with a population of more than 1.2 million in which a national wildlife refuge is wholly or partly located.
(b)  Notwithstanding any other provision of this title, and for the purposes of reducing environmental emissions, putting to a beneficial purpose landfill gas as an electric generation fuel that would otherwise be flared, enabling the operation of electric generation to a greater degree, and enhancing the reliability and resilience of electric service in this state, a person who is not an electric utility and who owns and operates equipment or facilities to produce, generate, transmit, distribute, store, sell, or furnish electricity produced by the use of landfill methane gas may:
(1)  use the equipment or facilities to provide electricity and electric service to the person and to the person's affiliates without being considered to be an electric utility, a public utility, a retail electric provider, a power marketer, or a person providing aggregation;
(2)  interconnect the equipment or facilities in a timely manner and on reasonable and nondiscriminatory terms and conditions with any electric utility, municipally owned utility, or electric cooperative that has a retail service area for any portion of the equipment or facilities; and
(3)  receive backup, supplemental, or other electric service for any of the person's or the person's affiliates' facilities that consume electricity from any electric utility, municipally owned utility, or electric cooperative that has a retail service area for any portion of the person's facilities or equipment that are interconnected regardless of whether those facilities are in the same retail service area as the location of the interconnection point.
(c)  Backup, supplemental, or other electric service provided under this section through an interconnection for a person's electricity-consuming facilities that are connected to the person's interconnected equipment or facilities does not constitute a service area encroachment or other violation of law by the electric utility, municipally owned utility, or electric cooperative supplying the backup, supplemental, or other electric service.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 15, eff. June 8, 2021.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 270, eff. September 1, 2023.
Redesignated from Utilities Code, Section 35.037 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 24.001(61), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter C. Qualifying Facilities › Section 35.061. Encouragement of Economical Production

Sec. 35.061.  ENCOURAGEMENT OF ECONOMICAL PRODUCTION.  The commission shall adopt and enforce rules to encourage the economical production of electric energy by qualifying facilities.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter C. Qualifying Facilities › Section 35.062. Application for Certification

Sec. 35.062.  APPLICATION FOR CERTIFICATION.  (a)  An electric utility or a qualifying facility may submit to the commission for certification a copy of an agreement between the utility and facility for the purchase of capacity.
(b)  An agreement submitted for certification under this section may provide that the agreement is contingent on certification by the commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter C. Qualifying Facilities › Section 35.063. Hearing

Sec. 35.063.  HEARING.  (a)  The commission, on its own motion or on the request of a party to the agreement or another affected person, may conduct a hearing on an agreement for which certification is sought under Section 35.062.
(b)  A request for a hearing or a commission decision to hold a hearing must be made not later than the 90th day after the date the agreement is submitted to the commission.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter C. Qualifying Facilities › Section 35.064. Certification Standards

Sec. 35.064.  CERTIFICATION STANDARDS.  The commission shall certify an agreement submitted under Section 35.062 if the agreement:
(1)  provides for payments over the contract term that are equal to or less than the electric utility's avoided costs, as established by the commission and in effect at the time the agreement was signed;  and
(2)  provides the electric utility the opportunity to acquire the cogeneration or small-power production installation before the installation is offered to another purchaser or provides other sufficient assurance that the electric utility will be provided with a comparable supply of electricity, if the qualifying facility ceases to operate the installation.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter C. Qualifying Facilities › Section 35.065. Deadlines for Commission Action

Sec. 35.065.  DEADLINES FOR COMMISSION ACTION.  (a)  Except as provided by Subsection (b), the commission shall make its determination regarding whether a certification should be granted under Section 35.064 not later than the 90th day after the date the agreement is submitted.
(b)  If a hearing is held under Section 35.063, the commission shall make its determination regarding whether a certification should be granted not later than the 120th day after the date the agreement is submitted, except that this deadline is extended by two days for each day in excess of five days on which the commission conducts a hearing on the merits of the certification.
(c)  If the commission does not make a determination by the date provided by Subsection (a) or (b), as applicable, the agreement is considered to meet the requirements of Section 35.064 and the certification is considered granted.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter C. Qualifying Facilities › Section 35.066. Term of Certification

Sec. 35.066.  TERM OF CERTIFICATION.  A certification of an agreement granted under this subchapter is effective until the earlier of:
(1)  the expiration date of the agreement;  or
(2)  the 15th anniversary of the date of the certification.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter E. Electric Energy Storage › Section 35.151. Electric Energy Storage

Sec. 35.151.  ELECTRIC ENERGY STORAGE.  This subchapter applies only to the ownership or operation of electric energy storage equipment or facilities in the ERCOT power region that are intended to:
(1)  provide energy or ancillary services at wholesale, including electric energy storage equipment or facilities listed on a power generation company's registration with the commission or, for an exempt wholesale generator, on the generator's registration with the Federal Energy Regulatory Commission; or
(2)  provide reliable delivery of electric energy to distribution customers.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1069 (S.B. 943), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 562 (S.B. 415), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 35 - Energy Providers › Subchapter E. Electric Energy Storage › Section 35.152. Generation Assets

Sec. 35.152.  GENERATION ASSETS.  (a)  Electric energy storage equipment or facilities that are intended to be used to sell energy or ancillary services at wholesale are generation assets.
(b)  The owner or operator of electric energy storage equipment or facilities that are generation assets under Subsection (a) is a power generation company and is required to register under Section 39.351(a).  The owner or operator of the equipment or facilities is entitled to:
(1)  interconnect the equipment or facilities;
(2)  obtain transmission service for the equipment or facilities; and
(3)  use the equipment or facilities to sell electricity or ancillary services at wholesale in a manner consistent with the provisions of this title and commission rules applicable to a power generation company or an exempt wholesale generator.
(c)  Notwithstanding Subsection (a), this section does not affect a determination made by the commission in a final order issued before December 31, 2010.
(d)  Subsection (b) does not require a municipally owned utility or an electric cooperative that owns or operates electric energy storage equipment or facilities described by Subsection (a) to register as a power generation company under Section 39.351(a).
Added by Acts 2011, 82nd Leg., R.S., Ch. 1069 (S.B. 943), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 77 (S.B. 1012), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.001. Authorization to Establish and Regulate Rates

Sec. 36.001.  AUTHORIZATION TO ESTABLISH AND REGULATE RATES.  (a)  The regulatory authority may establish and regulate rates of an electric utility and may adopt rules for determining:
(1)  the classification of customers and services;  and
(2)  the applicability of rates.
(b)  A rule or order of the regulatory authority may not conflict with a ruling of a federal regulatory body.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.002. Compliance With Title

Sec. 36.002.  COMPLIANCE WITH TITLE.  An electric utility may not charge or receive a rate for utility service except as provided by this title.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.003. Just and Reasonable Rates

Sec. 36.003.  JUST AND REASONABLE RATES.  (a)  The regulatory authority shall ensure that each rate an electric utility or two or more electric utilities jointly make, demand, or receive is just and reasonable.
(b)  A rate may not be unreasonably preferential, prejudicial, or discriminatory but must be sufficient, equitable, and consistent in application to each class of consumer.
(c)  An electric utility may not:
(1)  grant an unreasonable preference or advantage concerning rates to a person in a classification;
(2)  subject a person in a classification to an unreasonable prejudice or disadvantage concerning rates;  or
(3)  establish or maintain an unreasonable difference concerning rates between localities or between classes of service.
(d)  In establishing an electric utility's rates, the commission may treat as a single class two or more municipalities that an electric utility serves if the commission considers that treatment to be appropriate.
(e)  A charge to an individual customer for retail or wholesale electric service that is less than the rate approved by the regulatory authority does not constitute an impermissible difference, preference, or advantage.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.004. Equality of Rates and Services

Sec. 36.004.  EQUALITY OF RATES AND SERVICES.  (a)  An electric utility may not directly or indirectly charge, demand, or receive from a person a greater or lesser compensation for a service provided or to be provided by the utility than the compensation prescribed by the applicable tariff filed under Section 32.101.
(b)  A person may not knowingly receive or accept a service from an electric utility for a compensation greater or less than the compensation prescribed by the tariff.
(c)  Notwithstanding Subsections (a) and (b), an electric utility may charge an individual customer for wholesale or retail electric service in accordance with Section 36.007.
(d)  This title does not prevent a cooperative corporation from returning to its members net earnings resulting from its operations in proportion to the members' purchases from or through the corporation.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.005. Rates for Area Not in Municipality

Sec. 36.005.  RATES FOR AREA NOT IN MUNICIPALITY.  Without the approval of the commission, an electric utility's rates for an area not in a municipality may not exceed 115 percent of the average of all rates for similar services for all municipalities served by the same utility in the same county as that area.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.006. Burden of Proof

Sec. 36.006.  BURDEN OF PROOF.  In a proceeding involving a proposed rate change, the electric utility has the burden of proving that:
(1)  the rate change is just and reasonable, if the utility proposes the change;  or
(2)  an existing rate is just and reasonable, if the proposal is to reduce the rate.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.007. Discounted Wholesale or Retail Rates

Sec. 36.007.  DISCOUNTED WHOLESALE OR RETAIL RATES.  (a)  On application by an electric utility, a regulatory authority may approve wholesale or retail tariffs or contracts containing charges that are less than rates approved by the regulatory authority but not less than the utility's marginal cost.  The charges must be in accordance with the principles of this title and may not be unreasonably preferential, prejudicial, discriminatory, predatory, or anticompetitive.
(b)  The method for computing the marginal cost of the electric utility consists of energy and capacity components.  The energy component includes variable operation and maintenance expense and marginal fuel or the energy component of purchased power.  The capacity component is based on the annual economic value of deferring, accelerating, or avoiding the next increment of needed capacity, without regard to whether the capacity is purchased or built.
(c)  The commission shall ensure that the method for determining marginal cost is consistently applied among utilities but may recognize the individual load and resource requirements of the electric utility.
(d)  Notwithstanding any other provision of this title, the commission shall ensure that the electric utility's allocable costs of serving customers paying discounted rates under this section are not borne by the utility's other customers.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.008. State Transmission System

Sec. 36.008.  STATE TRANSMISSION SYSTEM.  In establishing rates for an electric utility, the commission may review the state's transmission system and make recommendations to the utility on the need to build new power lines, upgrade power lines, and make other necessary improvements and additions.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 23, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter A. General Provisions › Section 36.009. Billing Demand for Certain Utility Customers

Sec. 36.009.  BILLING DEMAND FOR CERTAIN UTILITY CUSTOMERS.  Notwithstanding any other provision of this code, the commission by rule shall require a transmission and distribution utility to:
(1)  waive the application of demand ratchet provisions for each nonresidential secondary service customer that has a maximum load factor equal to or below a factor set by commission rule;
(2)  implement procedures to verify annually whether each nonresidential secondary service customer has a maximum load factor that qualifies the customer for the waiver described by Subdivision (1);
(3)  specify in the utility's tariff whether the utility's nonresidential secondary service customers that qualify for the waiver described by Subdivision (1) are to be billed for distribution service charges on the basis of:
(A)  kilowatts;
(B)  kilowatt-hours; or
(C)  kilovolt-amperes; and
(4)  modify the utility's tariff in the utility's next base rate case to implement the waiver described by Subdivision (1) and make the specification required by Subdivision (3).
Added by Acts 2011, 82nd Leg., R.S., Ch. 150 (H.B. 1064), Sec. 1, eff. May 28, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.051. Establishing Overall Revenues

Sec. 36.051.  ESTABLISHING OVERALL REVENUES.  In establishing an electric utility's rates, the regulatory authority shall establish the utility's overall revenues at an amount that will permit the utility a reasonable opportunity to earn a reasonable return on the utility's invested capital used and useful in providing service to the public in excess of the utility's reasonable and necessary operating expenses.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.052. Establishing Reasonable Return

Sec. 36.052.  ESTABLISHING REASONABLE RETURN.  In establishing a reasonable return on invested capital, the regulatory authority shall consider applicable factors, including:
(1)  the efforts and achievements of the utility in conserving resources;
(2)  the quality of the utility's services;
(3)  the efficiency of the utility's operations;  and
(4)  the quality of the utility's management.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 24, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.053. Components of Invested Capital

Sec. 36.053.  COMPONENTS OF INVESTED CAPITAL.  (a)  Electric utility rates shall be based on the original cost, less depreciation, of property used by and useful to the utility in providing service.
(b)  The original cost of property shall be determined at the time the property is dedicated to public use, whether by the utility that is the present owner or by a predecessor.
(c)  In this section, the term "original cost" means the actual money cost or the actual money value of consideration paid other than money.
(d)  If the commission issues a certificate of convenience and necessity or if the commission, acting under the authority formerly provided by Section 39.203(e), ordered an electric utility or a transmission and distribution utility to construct or enlarge transmission or transmission-related facilities to facilitate meeting the goal for generating capacity from renewable energy technologies under former Section 39.904(a), the commission shall find that the facilities are used and useful to the utility in providing service for purposes of this section and are prudent and includable in the rate base, regardless of the extent of the utility's actual use of the facilities.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., 1st C.S., Ch. 1 (S.B. 20), Sec. 1, eff. September 1, 2005.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 10, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.054. Construction Work in Progress

Sec. 36.054.  CONSTRUCTION WORK IN PROGRESS.  (a)  Construction work in progress, at cost as recorded on the electric utility's books, may be included in the utility's rate base.  The inclusion of construction work in progress is an exceptional form of rate relief that the regulatory authority may grant only if the utility demonstrates that inclusion is necessary to the utility's financial integrity.
(b)  Construction work in progress may not be included in the rate base for a major project under construction to the extent that the project has been inefficiently or imprudently planned or managed.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.055. Separations and Allocations

Sec. 36.055.  SEPARATIONS AND ALLOCATIONS.  Costs of facilities, revenues, expenses, taxes, and reserves shall be separated or allocated as prescribed by the regulatory authority.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.056. Depreciation, Amortization, and Depletion

Sec. 36.056.  DEPRECIATION, AMORTIZATION, AND DEPLETION.  (a)  The commission shall establish proper and adequate rates and methods of depreciation, amortization, or depletion for each class of property of an electric or municipally owned utility.
(b)  The rates and methods established under this section and the depreciation account required by Section 32.102 shall be used uniformly and consistently throughout rate-setting and appeal proceedings.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.057. Net Income; Determination of Revenues and Expenses

Sec. 36.057.  NET INCOME;  DETERMINATION OF REVENUES AND EXPENSES.  (a)  An electric utility's net income is the total revenues of the utility less all reasonable and necessary expenses as determined by the regulatory authority.
(b)  The regulatory authority shall determine revenues and expenses in a manner consistent with this subchapter.
(c)  The regulatory authority may adopt reasonable rules with respect to whether an expense is allowed for ratemaking purposes.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.058. Consideration of Payment to Affiliate

Sec. 36.058.  CONSIDERATION OF PAYMENT TO AFFILIATE.  (a)  Except as provided by Subsection (b), the regulatory authority may not allow as capital cost or as expense a payment to an affiliate for:
(1)  the cost of a service, property, right, or other item;  or
(2)  interest expense.
(b)  The regulatory authority may allow a payment described by Subsection (a) only to the extent that the regulatory authority finds the payment is reasonable and necessary for each item or class of items as determined by the commission.
(c)  A finding under Subsection (b) must include:
(1)  a specific finding of the reasonableness and necessity of each item or class of items allowed; and
(2)  a finding that the price to the electric utility is not higher than the prices charged by the supplying affiliate for the same item or class of items to:
(A)  its other affiliates or divisions; or
(B)  a nonaffiliated person within the same market area or having the same market conditions.
(d)  In making a finding regarding an affiliate transaction, the regulatory authority shall:
(1)  determine the extent to which the conditions and circumstances of that transaction are reasonably comparable relative to quantity, terms, date of contract, and place of delivery;  and
(2)  allow for appropriate differences based on that determination.
(e)  This section does not require a finding to be made before payments made by an electric utility to an affiliate are included in the utility's charges to consumers if there is a mechanism for making the charges subject to refund pending the making of the finding.
(f)  If the regulatory authority finds that an affiliate expense for the test period is unreasonable, the regulatory authority shall:
(1)  determine the reasonable level of the expense; and
(2)  include that expense in determining the electric utility's cost of service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 25, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 413 (S.B. 1668), Sec. 1, eff. June 17, 2005.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.059. Treatment of Certain Tax Benefits

Sec. 36.059.  TREATMENT OF CERTAIN TAX BENEFITS.  (a)  In determining the allocation of tax savings derived from liberalized depreciation and amortization, the investment tax credit, and the application of similar methods, the regulatory authority shall:
(1)  balance equitably the interests of present and future customers;  and
(2)  apportion accordingly the benefits between consumers and the electric or municipally owned utility.
(b)  If an electric utility or a municipally owned utility retains a portion of the investment tax credit, that portion shall be deducted from the original cost of the facilities or other addition to the rate base to which the credit applied to the extent allowed by the Internal Revenue Code.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.060. Consolidated Income Tax Returns

Sec. 36.060.  CONSOLIDATED INCOME TAX RETURNS.
(a)  If an expense is allowed to be included in utility rates or an investment is included in the utility rate base, the related income tax benefit must be included in the computation of income tax expense to reduce the rates.  If an expense is not allowed to be included in utility rates or an investment is not included in the utility rate base, the related income tax benefit may not be included in the computation of income tax expense to reduce the rates.  The income tax expense shall be computed using the statutory income tax rates.
(b)  The amount of income tax that a consolidated group of which an electric utility is a member saves, because the consolidated return eliminates the intercompany profit on purchases by the utility from an affiliate, shall be applied to reduce the cost of the property or service purchased from the affiliate.
(c)  The investment tax credit allowed against federal income taxes, to the extent retained by the electric utility, shall be applied as a reduction in the rate-based contribution of the assets to which the credit applies, to the extent and at the rate allowed by the Internal Revenue Code.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 787 (S.B. 1364), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.061. Allowance of Certain Expenses

Sec. 36.061.  ALLOWANCE OF CERTAIN EXPENSES.  (a)  The regulatory authority may not allow as a cost or expense for ratemaking purposes:
(1)  an expenditure for legislative advocacy;  or
(2)  an expenditure described by Section 32.104 that the regulatory authority determines to be not in the public interest.
(b)  The regulatory authority may allow as a cost or expense:
(1)  reasonable charitable or civic contributions not to exceed the amount approved by the regulatory authority;  and
(2)  reasonable costs of participating in a proceeding under this title not to exceed the amount approved by the regulatory authority.
(c)  An electric utility located in a portion of this state not subject to retail competition may establish a bill payment assistance program for a customer who is a military veteran who a medical doctor certifies has a significantly decreased ability to regulate the individual's body temperature because of severe burns received in combat.  A regulatory authority shall allow as a cost or expense a cost or expense of the bill payment assistance program.  The electric utility is entitled to:
(1)  fully recover all costs and expenses related to the bill payment assistance program;
(2)  defer each cost or expense related to the bill payment assistance program not explicitly included in base rates; and
(3)  apply carrying charges at the utility's weighted average cost of capital to the extent related to the bill payment assistance program.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 597 (S.B. 981), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.062. Consideration of Certain Expenses

Sec. 36.062.  CONSIDERATION OF CERTAIN EXPENSES.  The regulatory authority may not consider for ratemaking purposes:
(1)  an expenditure for legislative advocacy, made directly or indirectly, including legislative advocacy expenses included in trade association dues;
(2)  a payment made to cover costs of an accident, equipment failure, or negligence at a utility facility owned by a person or governmental entity not selling power in this state, other than a payment made under an insurance or risk-sharing arrangement executed before the date of loss;
(3)  an expenditure for costs of processing a refund or credit under Section 36.110;  or
(4)  any other expenditure, including an executive salary, advertising expense, legal expense, or civil penalty or fine, the regulatory authority finds to be unreasonable, unnecessary, or not in the public interest.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 36 - Rates › Subchapter B. Computation of Rates › Section 36.063. Consideration of Profit or Loss From Sale or Lease of Merchandise

Sec. 36.063.  CONSIDERATION OF PROFIT OR LOSS FROM SALE OR LEASE OF MERCHANDISE.  In establishing an electric or municipally owned utility's rates, the regulatory authority may not consider any 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.