83R1750 DDT-F By: Harless H.B. No. 1149 A BILL TO BE ENTITLED AN ACT relating to the establishment of integrated rate areas subject to the original jurisdiction of the Railroad Commission of Texas. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 102.001, Utilities Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows: (a) The railroad commission has exclusive original jurisdiction over the rates and services of a gas utility: (1) that distributes natural gas or synthetic natural gas in: (A) areas outside a municipality; [and] (B) areas inside a municipality that surrenders its jurisdiction to the railroad commission under Section 103.003; and (C) an integrated rate area established under Subsection (c); and (2) that transmits, transports, delivers, or sells natural gas or synthetic natural gas to a gas utility that distributes the gas to the public. (c) A gas utility may identify and establish an integrated rate area that includes one or more municipalities and related unincorporated areas for which the railroad commission has exclusive original jurisdiction to establish the gas utility's rates on an area-wide basis. The integrated rate area is established on the date the gas utility files notice of the area's establishment with the railroad commission. The notice must define the boundaries of the integrated rate area and identify each municipality included in the area. The gas utility must deliver a copy of the notice to each municipality included in the area. (d) A notice of intent to increase rates filed under Section 104.103 does not constitute notice under Subsection (c). SECTION 2. Section 103.001, Utilities Code, is amended to read as follows: 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: (1) the municipality surrenders its jurisdiction to the railroad commission under Section 103.003; or (2) the municipality is included in an integrated rate area established under Section 102.001(c). SECTION 3. This Act takes effect September 1, 2013.