CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION AND OTHER REGULATORY AUTHORITIES
UTILITIES CODE
TITLE 2. PUBLIC UTILITY REGULATORY ACT
SUBTITLE B. ELECTRIC UTILITIES
CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION AND OTHER
REGULATORY AUTHORITIES
SUBCHAPTER A. COMMISSION JURISDICTION
Sec. 32.001. COMMISSION JURISDICTION. (a) Except as provided
by Section 32.002, the commission has exclusive original
jurisdiction over the rates, operations, and services of an
electric utility in:
(1) areas outside a municipality; and
(2) areas inside a municipality that surrenders its jurisdiction
to the commission under Section 33.002.
(b) The commission has exclusive appellate jurisdiction to
review an order or ordinance of a municipality exercising
exclusive original jurisdiction under this subtitle.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 32.0015. REGULATION OF SUCCESSOR ELECTRIC UTILITY OR
ELECTRIC COOPERATIVE. If an electric utility purchases,
acquires, merges, or consolidates with or acquires 50 percent or
more of the stock of an electric utility or electric cooperative,
the commission shall regulate the successor electric utility or
electric cooperative in the same manner that the commission would
regulate the entity that was subject to the stricter regulation
before the purchase, acquisition, merger, or consolidation.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 12, eff. Sept. 1,
1999.
Sec. 32.002. LIMITATION ON COMMISSION JURISDICTION. Except as
otherwise provided by this title, this subtitle does not
authorize the commission to:
(1) regulate or supervise a rate or service of a municipally
owned utility; or
(2) affect the jurisdiction, power, or duty of a municipality
exercising exclusive original jurisdiction in that municipality's
regulation and supervision of an electric utility in the
municipality.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 32.003. EXEMPT AREA JURISDICTION. Notwithstanding an
election under Subchapter A, Chapter 33, by a municipality on the
issue of surrendering its jurisdiction, the commission may:
(1) consider an electric utility's revenues and return on
investment in an area exempt from commission regulation in
establishing rates and charges in an area that is not exempt from
commission regulation; and
(2) exercise necessary powers to give effect to an order under
this title for the benefit of an area that is not exempt from
commission regulation.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 32.004. ASSISTANCE TO MUNICIPALITY. On request of a
municipality, the commission may advise and assist the
municipality with respect to a question or proceeding arising
under this title. Assistance provided by the commission may
include aid to a municipality on a matter pending before the
commission, a court, or the municipality's governing body, such
as making a staff member available as a witness or otherwise
providing evidence to the municipality.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER B. EXEMPTIONS FROM COMMISSION JURISDICTION
Sec. 32.051. EXEMPTION OF RIVER AUTHORITY FROM WHOLESALE RATE
REGULATION. Notwithstanding any other provision of this title,
the commission may not directly or indirectly regulate revenue
requirements, rates, fuel costs, fuel charges, or fuel
acquisitions that are related to the generation and sale of
electricity at wholesale, and not to ultimate consumers, by a
river authority operating a steam generating plant on or before
January 1, 1999.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 405, Sec. 13, eff. Sept. 1,
1999.
Sec. 32.052. ABILITY OF CERTAIN RIVER AUTHORITIES TO CONSTRUCT
IMPROVEMENTS. A river authority operating a steam generating
plant on or before January 1, 1999, may acquire, finance,
construct, rebuild, repower, and use new or existing power
plants, equipment, transmission lines, or other assets to sell
electricity exclusively at wholesale to:
(1) a purchaser in San Saba, Llano, Burnet, Travis, Bastrop,
Blanco, Colorado, or Fayette County; or
(2) a purchaser in an area served by the river authority on
January 1, 1975.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 405, Sec. 13, eff. Sept. 1,
1999.
Sec. 32.053. ABILITY OF CERTAIN RIVER AUTHORITY AFFILIATES TO
CONSTRUCT IMPROVEMENTS. (a) This section applies only to a
corporation that:
(1) sells electricity exclusively at wholesale, and not to
ultimate consumers;
(2) is authorized by Chapter 152, Water Code; and
(3) acts on behalf of a river authority.
(b) Notwithstanding a river authority's enabling legislation or
Chapter 152, Water Code, a corporation may:
(1) acquire, finance, construct, rebuild, repower, operate, or
sell a facility directly related to the generation of
electricity;
(2) sell, at wholesale only, the output of the facility to a
purchaser, other than an ultimate consumer, at any location in
this state; and
(3) purchase and sell electricity, at wholesale only, to a
purchaser, other than an ultimate consumer, at any location in
this state.
(c) This subchapter does not prevent a corporation from
purchasing transmission and related services from a river
authority.
(d) Except as provided by this section, the development,
financing, ownership, and operation of a facility by a
corporation is subject to all other applicable laws.
(e) The property, gross receipts, and income of a corporation
acting on behalf of a river authority under this section are
subject to, and the corporation shall pay, taxes and assessments
of the federal government, this state, a political subdivision of
this state, or a taxing district of this state on the same basis
as an exempt wholesale generator.
(f) The proceeds from the sale of bonds or other obligations the
interest on which is exempt from taxation and that are issued by
a corporation or river authority subject to this section, other
than a bond or obligation available to an investor-owned utility
or exempt wholesale generator, may not be used by the corporation
to finance the construction or acquisition of or the rebuilding
or repowering of a facility for the generation of electricity by
the corporation.
(g) Notwithstanding any other law, the board of directors of a
river authority may sell, lease, loan, or otherwise transfer
some, all, or substantially all of the electric generation
property of the river authority to a nonprofit corporation
authorized under this section or Chapter 152, Water Code. The
property transfer shall be made under terms and conditions
approved by the board of directors of the river authority.
(h) Subsections (a)-(f) do not apply to a corporation created
under Chapter 152, Water Code, to serve an area described in
Section 32.052.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 405, Sec. 14, eff. Sept. 1,
1999; Acts 2001, 77th Leg., ch. 1420, Sec. 8.400, eff. Sept. 1,
2001.
Sec. 32.054. RESTRICTIONS ON AUTHORITY OF CORPORATIONS OR RIVER
AUTHORITY. (a) This subchapter does not authorize a river
authority to acquire, install, construct, make additions to, or
operate steam generating plants having an aggregate capacity
greater than 5,000 megawatts to serve a purchaser in the area
served by the river authority on January 1, 1975.
(b) A river authority or a corporation acting on behalf of a
river authority under this subchapter may provide retail service
only to a retail customer served by the river authority or
corporation on September 1, 1995.
(c) Except as provided by this subchapter, this subchapter does
not limit a power granted a river authority in its enabling
legislation or other applicable law.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER C. REQUIRED REPORTS AND FILINGS
Sec. 32.101. TARIFF FILINGS. (a) An electric utility shall
file with each regulatory authority a tariff showing each rate
that is:
(1) subject to the regulatory authority's original or appellate
jurisdiction; and
(2) in effect for a utility service, product, or commodity
offered by the utility.
(b) The electric utility shall file as a part of the tariff
required under Subsection (a) each rule that relates to or
affects:
(1) a rate of the utility; or
(2) a utility service, product, or commodity furnished by the
electric utility.
(c) The commission shall consider customer names and addresses,
prices, individual customer contracts, and expected load and
usage data as highly sensitive trade secrets. That information is
not subject to disclosure under Chapter 552, Government Code.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 32.102. DEPRECIATION ACCOUNT. The commission shall require
each electric or municipally owned utility to carry a proper and
adequate depreciation account in accordance with:
(1) the rates and methods prescribed by the commission under
Section 36.056; and
(2) any other rule the commission adopts.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 32.103. ACCOUNTS OF PROFITS AND LOSSES. An electric or
municipally owned utility shall keep separate accounts showing
profits or losses from the sale or lease of merchandise,
including an appliance, a fixture, or equipment.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 32.104. REPORT OF CERTAIN EXPENSES. A regulatory authority
may require an electric utility to annually report the utility's
expenditures for:
(1) business gifts and entertainment; and
(2) advertising or public relations, including expenditures for
institutional and consumption-inducing purposes.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.