CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY

UTILITIES CODE

TITLE 3. GAS REGULATION

SUBTITLE A. GAS UTILITY REGULATORY ACT

CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 103.001. MUNICIPAL JURISDICTION. To provide fair, just,

and reasonable rates and adequate and efficient services, the

governing body of a municipality has exclusive original

jurisdiction over the rates, operations, and services of a gas

utility within the municipality, subject to the limitations

imposed by this subtitle, unless the municipality surrenders its

jurisdiction to the railroad commission under Section 103.003.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 65, eff. Sept. 1,

2001.

Sec. 103.002. FRANCHISES. (a) This subtitle does not restrict

the rights and powers of a municipality to grant or refuse a

franchise to use the streets and alleys in the municipality or to

make a statutory charge for that use.

(b) A municipality that performs a regulatory function under

this subtitle may make each charge that is authorized by:

(1) this subtitle; or

(2) the applicable franchise agreement.

(c) A franchise agreement may not limit or interfere with a

power conferred on the railroad commission by this subtitle.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.003. SURRENDER OF MUNICIPAL JURISDICTION TO RAILROAD

COMMISSION; REINSTATEMENT OF JURISDICTION. (a) A municipality

may elect to have the railroad commission exercise exclusive

original jurisdiction over gas utility rates, operations, and

services in the municipality by ordinance or by submitting the

question of the surrender of its jurisdiction to the voters at a

municipal election.

(b) The governing body of a municipality shall submit at a

municipal election the question of surrendering its jurisdiction

to the railroad commission if the governing body receives a

petition signed by a number of qualified voters of the

municipality equal to at least the lesser of 20,000 or 10 percent

of the number of voters voting in the last preceding general

election in the municipality.

(c) A municipality may not elect to surrender its jurisdiction

while a case involving the municipality is pending.

(d) A municipality that surrenders its jurisdiction to the

railroad commission may reinstate its jurisdiction. The

provisions of this section governing the surrender of

jurisdiction apply to the reinstatement of jurisdiction.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 66, eff. Sept. 1,

2001.

SUBCHAPTER B. RATE DETERMINATION

Sec. 103.021. MUNICIPAL PROCEEDINGS. (a) A municipality

regulating a gas utility under this subtitle shall require the

utility to submit information as necessary to make a reasonable

determination of rate base, expenses, investment, and rate of

return in the municipality.

(b) A municipality shall make a determination under Subsection

(a) using the procedures and requirements prescribed by this

subtitle.

(c) A municipality shall retain personnel necessary to make the

determination of reasonable rates.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.022. RATE ASSISTANCE AND COST REIMBURSEMENT. (a) The

governing body of a municipality participating in or conducting a

ratemaking proceeding may engage rate consultants, accountants,

auditors, attorneys, and engineers to:

(1) conduct investigations, present evidence, and advise and

represent the governing body; and

(2) assist the governing body with litigation or a gas utility

ratemaking proceeding before a regulatory authority or court.

(b) The gas utility in the ratemaking proceeding shall reimburse

the governing body of the municipality for the reasonable cost of

the services of a person engaged under Subsection (a) to the

extent the applicable regulatory authority determines reasonable.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.023. MUNICIPAL STANDING. (a) A municipality has

standing in each case before the railroad commission that relates

to a gas utility's rates and services in the municipality.

(b) A municipality's standing is subject to the right of the

railroad commission to consolidate that municipality with another

party on an issue of common interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.024. JUDICIAL REVIEW. A municipality is entitled to

judicial review of a railroad commission order relating to a gas

utility's rates and services in a municipality as provided by

Section 105.001.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. APPEAL OF MUNICIPAL ORDER

Sec. 103.051. APPEAL BY PARTY. A party to a rate proceeding

before a municipality's governing body may appeal the governing

body's decision to the railroad commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.052. APPEAL BY RESIDENTS. The residents of a

municipality may appeal to the railroad commission the decision

of the municipality's governing body in a rate proceeding by

filing with the railroad commission a petition for review signed

by a number of qualified voters of the municipality equal to at

least the lesser of 20,000 or 10 percent of the qualified voters

of the municipality.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.053. APPEAL BY RATEPAYERS OUTSIDE MUNICIPALITY. (a)

The ratepayers of a municipally owned utility who are outside the

municipality may appeal to the railroad commission an action of

the municipality's governing body affecting the municipally owned

utility's rates by filing with the railroad commission a petition

for review signed by a number of ratepayers served by the utility

outside the municipality equal to at least the lesser of 10,000

or five percent of those ratepayers.

(b) A petition for review is properly signed if signed by a

person or the spouse of a person in whose name residential

utility service is carried.

(c) For purposes of this section, each person who receives a

separate bill is a ratepayer. A person who receives more than one

bill may not be counted as more than one ratepayer.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.054. FILING OF APPEAL. (a) An appeal under this

subchapter is initiated by filing a petition for review with the

railroad commission and serving a copy of the petition on each

party to the original rate proceeding.

(b) The appeal must be initiated not later than the 30th day

after the date of the final decision by the governing body of the

municipality.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.055. HEARING AND ORDER. (a) An appeal under this

subchapter is de novo and based on the test year presented to the

municipality adjusted for known changes and conditions that are

measurable with reasonable accuracy.

(b) The railroad commission shall enter a final order

establishing the rates the railroad commission determines the

municipality should have set in the ordinance to which the appeal

applies.

(c) If the railroad commission fails to enter a final order

within 185 days after the date the appeal is perfected, the rates

proposed by the gas utility are considered to be approved by the

railroad commission and take effect on the expiration of the

185-day period.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 103.056. APPLICABILITY OF RATES. Temporary or permanent

rates set by the railroad commission are prospective and observed

from the date of the applicable railroad commission order, except

an interim rate order necessary to provide a gas utility the

opportunity to avoid confiscation during the period beginning on

the date a petition for review is filed with the railroad

commission and ending on the date of a final order establishing

rates.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.