Opinion ID: 1752828
Heading Depth: 3
Heading Rank: 2

Heading: The 1997 codification

Text: In 1997, the Legislature codified the incentive regulation provisions in Texas Utilities Code Chapter 58. [21] The Legislature stated that this codification, which became effective on September 1, 1997, intended no substantive changes from the original language enacted in 1995. [22] The Legislature placed the exception allowing an electing company to seek rate group reclassification based on access line growth in section 58.058. Section 58.058 states: Notwithstanding Subchapter B, the commission, on request of the electing company, shall allow a rate group reclassification that results from access line growth. Subchapter B contains section 58.021, which requires an electing company to cap its basic network services rates and make certain infrastructure improvements. It also contains section 58.025, which provides that an electing company is not, under any circumstances, subject to any complaint, hearing, or determination regarding the reasonableness of the company's: (1) rates; (2) overall revenues; (3) return on invested capital; or (4) net income. Under section 58.055, placed in Subchapter C, an electing company may increase a rate for a basic service network during the rate cap only with PUC approval that the proposed change is included in section 58.058. Section 58.059 similarly requires PUC authorization for any section 58.058 rate adjustment. Section 58.059(a) states: the PUC may authorize a rate adjustment under section 58.058. Section 58.059(g) similarly provides that the PUC may issue an order approving the adjustment, or if it finds that the adjustment is not authorized under section 58.058, it may issue an order modifying or rejecting the adjustment. The Legislature also provided in section 58.052(a)(2) that an electing company's basic network services are regulated to the extent not inconsistent with this chapter, in accordance with sections 53.003 and 55.005, among other general rate-making statutes. Sections 53.003 and 55.005, not contained within the incentive regulation chapter (Chapter 58), prohibit a public utility from subjecting a person to an unreasonable disadvantage in providing services and in charging rates. For example, section 55.005 states, [i]n providing a service to persons in a classification, a public utility may not: (1) grant an unreasonable preference or advantage to a person in the classification; or (2) subject a person in the classification to an unreasonable prejudice or disadvantage. Section 53.003(c) likewise provides: A public 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.