Texas 2015 - 84th Regular

Texas House Bill HB3953 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Geren H.B. No. 3953
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the functions of the Public Utility Commission of Texas
7	7	in relation to the economic regulation of water and sewer service.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 5.315, Water Code, is amended to read as
10	10	follows:
11	11	Sec. 5.315. DISCOVERY IN CASES USING PREFILED WRITTEN
12	12	TESTIMONY. In a contested case hearing delegated by the commission
13	13	to the State Office of Administrative Hearings that uses prefiled
14	14	written testimony, all discovery must be completed before the
15	15	deadline for the submission of that testimony[, except for water
16	16	and sewer ratemaking proceedings].
17	17	SECTION 2. Section 13.041(d), Water Code, is amended to
18	18	read as follows:
19	19	(d) In accordance with Subchapter K-1, the [The] utility
20	20	commission may issue emergency orders, with or without a hearing:
21	21	(1) to compel a water or sewer service provider that
22	22	has obtained or is required to obtain a certificate of public
23	23	convenience and necessity to provide continuous and adequate water
24	24	service, sewer service, or both, if the discontinuance of the
25	25	service is imminent or has occurred because of the service
26	26	provider's actions or failure to act; and
27	27	(2) to compel a retail public utility to provide an
28	28	emergency interconnection with a neighboring retail public utility
29	29	for the provision of temporary water or sewer service, or both, for
30	30	not more than 90 days if service discontinuance or serious
31	31	impairment in service is imminent or has occurred.
32	32	SECTION 3. Section 13.043, Water Code, is amended by adding
33	33	Subsections (b-1) and (b-2) to read as follows:
34	34	(b-1) A municipally owned utility shall:
35	35	(1) disclose to any person, on request, the number of
36	36	ratepayers who reside outside the corporate limits of the
37	37	municipality; and
38	38	(2) provide to any person, on request, a list of the
39	39	names and addresses of the ratepayers who reside outside the
40	40	corporate limits of the municipality.
41	41	(b-2) The municipally owned utility may not charge a fee for
42	42	disclosing the information under Subsection (b-1)(1). The
43	43	municipally owned utility may charge a reasonable fee for providing
44	44	information under Subsection (b-1)(2). The municipally owned
45	45	utility shall provide information requested under Subsection
46	46	(b-1)(1) by telephone or in writing as preferred by the person
47	47	making the request.
48	48	SECTION 4. Section 13.187(g-1), Water Code, is amended to
49	49	read as follows:
50	50	(g-1) If the regulatory authority is the utility
51	51	commission, the utility commission shall give reasonable notice of
52	52	the hearing, including notice to the governing body of each
53	53	affected municipality and county. The utility commission may
54	54	delegate to an administrative law judge of the State Office of
55	55	Administrative Hearings the responsibility and authority to give
56	56	reasonable notice of the hearing, including notice to the governing
57	57	body of each affected municipality and county. The utility is not
58	58	required to provide a formal answer or file any other formal
59	59	pleading in response to the notice, and the absence of an answer
60	60	does not affect an order for a hearing.
61	61	SECTION 5. Sections 13.1871(g), (h), (j), (m), and (p),
62	62	Water Code, are amended to read as follows:
63	63	(g) After written notice to the utility, the utility
64	64	commission may suspend the effective date of a rate change for not
65	65	more than 265 [205] days from the proposed effective date. If the
66	66	utility commission does not make a final determination on the
67	67	proposed rate before the expiration of the suspension period, the
68	68	proposed rate shall be considered approved. This approval is
69	69	subject to the authority of the utility commission thereafter to
70	70	continue a hearing in progress.
71	71	(h) The 265-day [205 day] period described by Subsection (g)
72	72	shall be extended by two days for each day a hearing exceeds 15
73	73	days.
74	74	(j) If the regulatory authority receives at least the
75	75	number
76	76	of complaints from ratepayers required for the regulatory authority
77	77	to set a hearing under Subsection (i), the regulatory authority
78	78	may, pending the hearing and a decision, suspend the date the rate
79	79	change would otherwise be effective. Except as provided by
80	80	Subsection (h), the proposed rate may not be suspended for longer
81	81	than:
82	82	(1) 90 days by a local regulatory authority; or
83	83	(2) 265 [205] days by the utility commission.
84	84	(m) The regulatory authority shall give reasonable notice
85	85	of the hearing, including notice to the governing body of each
86	86	affected municipality and county. The utility commission may
87	87	delegate to an administrative law judge of the State Office of
88	88	Administrative Hearings the responsibility and authority to give
89	89	reasonable notice for the hearing, including notice to the
90	90	governing body of each affected municipality and county. The
91	91	utility is not required to provide a formal answer or file any other
92	92	formal pleading in response to the notice, and the absence of an
93	93	answer does not affect an order for a hearing.
94	94	(p) A utility may put a changed rate into effect throughout
95	95	the area in which the utility sought to change its rates, including
96	96	an area over which the utility commission is exercising appellate
97	97	or original jurisdiction, by filing a bond with the utility
98	98	commission if the suspension period has been extended under
99	99	Subsection (h) and the utility commission fails to make a final
100	100	determination before the 266th [206th] day after the date the rate
101	101	change would otherwise be effective.
102	102	SECTION 6. Sections 13.301(a) and (h), Water Code, are
103	103	amended to read as follows:
104	104	(a) A utility or a water supply or sewer service
105	105	corporation, on or before the 120th day before the effective date of
106	106	a sale, acquisition, lease, or rental of a water or sewer system
107	107	owned by an entity that is required by law to possess a certificate
108	108	of public convenience and necessity or the effective date of a sale
109	109	or acquisition of or merger or consolidation with such an entity [a
110	110	utility or water supply or sewer service corporation], shall:
111	111	(1) file a written application with the utility
112	112	commission; and
113	113	(2) unless public notice is waived by the utility
114	114	commission for good cause shown, give public notice of the action.
115	115	(h) A sale, acquisition, lease, or rental of any water or
116	116	sewer system owned by an entity required by law to possess a
117	117	certificate of public convenience and necessity or a sale or
118	118	acquisition of or merger or consolidation with such an entity that
119	119	is not completed in accordance with the provisions of this section
120	120	is void.
121	121	SECTION 7. Sections 13.4133(a) and (c), Water Code, are
122	122	amended to read as follows:
123	123	(a) Notwithstanding the requirements of Subchapter F, the
124	124	utility commission may authorize an emergency rate increase for a
125	125	utility for which a person has been appointed under Section 13.4132
126	126	or for which a receiver has been appointed under Section 13.412 if
127	127	the increase is necessary to ensure the provision of continuous and
128	128	adequate services to the utility's customers. The commission and
129	129	utility commission shall coordinate as needed to carry out this
130	130	section.
131	131	(c) An emergency order may be issued under this section for
132	132	a term not to exceed 15 months. The utility commission shall
133	133	schedule a hearing to establish a final rate within 15 months after
134	134	the date on which an emergency rate increase takes effect. The
135	135	utility commission shall require the utility to provide notice of
136	136	the hearing to each customer. The additional revenues collected
137	137	under an emergency rate increase are subject to refund if the
138	138	utility commission finds that the rate increase was larger than
139	139	necessary to ensure continuous and adequate service.
140	140	SECTION 8. Chapter 13, Water Code, is amended by adding
141	141	Subchapter K-1 to read as follows:
142	142	SUBCHAPTER K-1. EMERGENCY ORDERS
143	143	Sec. 13.451. ISSUANCE OF EMERGENCY ORDER. (a) The utility
144	144	commission may issue an emergency order authorized under this
145	145	chapter after providing the notice and opportunity for a hearing
146	146	that the utility commission considers practicable under the
147	147	circumstances or without notice or opportunity for a hearing. If
148	148	the utility commission considers the provision of notice and
149	149	opportunity for a hearing practicable, the utility commission shall
150	150	provide the notice not later than the 10th day before the date set
151	151	for the hearing.
152	152	(b) The utility commission by order or rule may delegate to
153	153	the utility commission's executive director the authority to:
154	154	(1) receive applications and issue emergency orders
155	155	under this subchapter; and
156	156	(2) authorize, in writing, a representative or
157	157	representatives to act on the utility commission's executive
158	158	director's behalf under this subchapter.
159	159	(c) Chapter 2001, Government Code, does not apply to the
160	160	issuance of an emergency order under this subchapter without a
161	161	hearing.
162	162	(d) A law under which the utility commission acts that
163	163	requires notice of hearing or that prescribes procedures for the
164	164	issuance of emergency orders does not apply to a hearing on an
165	165	emergency order issued under this subchapter unless the law
166	166	specifically requires notice for an emergency order. The utility
167	167	commission shall give notice of the hearing as it determines is
168	168	practicable under the circumstances.
169	169	(e) An emergency order issued under this subchapter does not
170	170	vest any rights in a person affected by the order and the order
171	171	expires according to its terms.
172	172	(f) The utility commission may adopt rules necessary to
173	173	administer this subchapter.
174	174	Sec. 13.452. APPLICATION FOR EMERGENCY ORDER. A person
175	175	other than the utility commission or the staff of the utility
176	176	commission who desires the issuance of an emergency order under
177	177	this subchapter must submit a sworn written application to the
178	178	utility commission. The application must:
179	179	(1) describe the emergency condition or other
180	180	condition justifying the issuance of the order;
181	181	(2) allege facts to support the findings required
182	182	under this subchapter;
183	183	(3) estimate the dates on which the proposed order
184	184	should begin and end;
185	185	(4) describe the action sought and the activity
186	186	proposed to be allowed, mandated, or prohibited; and
187	187	(5) include any other statement, including who must
188	188	sign the application for the order, and any information required by
189	189	the utility commission.
190	190	Sec. 13.453. NOTICE OF ISSUANCE. Notice of the issuance of
191	191	an emergency order must be provided as required by utility
192	192	commission rule.
193	193	Sec. 13.454. HEARING TO AFFIRM, MODIFY, OR SET ASIDE ORDER.
194	194	(a) If the utility commission or the utility commission's
195	195	executive director issues an emergency order under this subchapter
196	196	without a hearing, a hearing must be held to affirm, modify, or set
197	197	aside the emergency order unless the person affected by the order
198	198	waives the right to a hearing. If the person does not waive the
199	199	right to a hearing, the utility commission or the utility
200	200	commission's executive director shall set a time and place for a
201	201	hearing to be held before the utility commission or the State Office
202	202	of Administrative Hearings, which must be as soon as practicable
203	203	after the order is issued.
204	204	(b) At a hearing required under Subsection (a), or within a
205	205	reasonable time after the hearing, the utility commission shall
206	206	affirm, modify, or set aside the emergency order.
207	207	(c) A hearing to affirm, modify, or set aside an emergency
208	208	order must be conducted in accordance with Chapter 2001, Government
209	209	Code, and utility commission rules. Utility commission rules
210	210	relating to a hearing to affirm, modify, or set aside an emergency
211	211	order must provide for presentation of evidence by the applicant,
212	212	if any, under oath, presentation of rebuttal evidence under oath,
213	213	and cross-examination of witnesses under oath.
214	214	Sec. 13.455. TERM OF ORDER. An emergency order issued under
215	215	this subchapter must be limited to a reasonable time as specified in
216	216	the order. Except as otherwise provided by this chapter, the term
217	217	of an emergency order may not exceed 180 days. An emergency order
218	218	may be renewed once for a period not to exceed 180 days.
219	219	SECTION 9. Section 5.507, Water Code, is amended to read as
220	220	follows:
221	221	Sec. 5.507. EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
222	222	DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
223	223	The commission [or the Public Utility Commission of Texas] may
224	224	issue an emergency order appointing a willing person to temporarily
225	225	manage and operate a utility under Section 13.4132. Notice of the
226	226	action is adequate if the notice is mailed or hand delivered to the
227	227	last known address of the utility's headquarters.
228	228	SECTION 10. Section 5.508, Water Code, is repealed.
229	229	SECTION 11. This Act takes effect September 1, 2015.