Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter L - NUCLEAR DECOMMISSIONING › Section 25.301 - Nuclear Decommissioning Trusts

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Duties of electric utilities.
(1) Each
				  electric utility collecting funds for a nuclear decommissioning trust must
				  assure that the nuclear decommissioning trust is managed so that the funds are
				  secure and earn a reasonable return; and, that the funds provided from the
				  utility's cost of service, plus the amounts earned from investment of the
				  funds, will be available at the time of decommissioning.
(2) Each electric utility collecting funds
				  for a nuclear decommissioning trust must place the funds in an external,
				  irrevocable trust fund. The utility must appoint an institutional trustee and
				  may appoint an investment manager(s). Unless otherwise specified in subsection
				  (b) of this section, the Texas Trust Code controls the administration and
				  management of the nuclear decommissioning trusts, except that the appointed
				  trustee(s) need not be qualified to exercise trust powers in Texas.
(3) The utility must retain the right to
				  replace the trustee with or without cause. In appointing a trustee, the
				  electric utility must have the following duties, which will be of a continuing
				  nature:
(A) A duty to determine whether the
				  trustee's fee schedule for administering the trust is reasonable, when compared
				  to other institutional trustees rendering similar services, and meets the
				  requirement of subsection (c)(2)(A) of this section;
(B) A duty to investigate and determine
				  whether the past administration of trusts by the trustee has been
				  reasonable;
(C) A duty to
				  investigate and determine whether the financial stability and strength of the
				  trustee is adequate;
(D) A duty to
				  investigate and determine whether the trustee has complied with the trust
				  agreement and this section as it relates to trustees; and
(E) A duty to investigate any other factors
				  which may bear on whether the trustee is suitable.
(4) The utility must retain the right to
				  replace the investment manager with or without cause. In appointing an
				  investment manager, the utility must have the following duties, which will be
				  of a continuing nature:
(A) A duty to
				  determine whether the investment manager's fee schedule for investment
				  management services is reasonable, when compared to other such managers, and
				  meets the requirement of subsection (c)(2)(A) of this section;
(B) A duty to investigate and determine
				  whether the past performance of the investment manager in managing investments
				  has been reasonable;
(C) A duty to
				  investigate and determine whether the financial stability and strength of the
				  investment manager is adequate for purposes of liability;
(D) A duty to investigate and determine
				  whether the investment manager has complied with the investment management
				  agreement and this section as it relates to investments; and
(E) A duty to investigate any other factors
				  which may bear on whether the investment manager is suitable.