Case Information
*1 The ?IoriorableGarrettRxris
chairman
Public Utility Ccemission of Texas RS: Effective date of section P. 0. Box 12577 56 of the Public Utilities Austin, !rwzas 78711 Regulatory Actpenaitting certainagremmtsbetween retail public utilities.
Dear Mr. kxris:
You&we reguestedouropinion con cerning the effective date of section 56 of the Public Utility Regulatory Act, article 1446c, V.T.C.S., kts 1975, 64th kg., cb. 721, p. 2327, wbicb authorizes contracts between retail public utilities designating the area and custawrs tobe served by the contracting utilities and provides for Cnnnission approval of such contracts. Section 52 provides for the filing of maps &wing all its facilities as a prerequx 'site to the issuance of certificates of convenience and necessity. Since the maps must bs filed by December 31, 1975, and certificates will be issued beginning Marc& 1, 1976, you have asked when the approval authority of the Cnnnission concerning area service aontractswillbecoweffective.
sei0n a7 0f the ii0t provides:
(a) lbe regulatory authority shall assma jurisdiction and all pmers and duties of regulation undyr this Act on January 1, 1976, atixtas provided in Subsection (b) of this (b) 'Ike regulatory authority shall assw jurisdictimoverrates andserviceofplblic utilities cm S'eptanber 1, 1976.
p. 3185
The Honorable Garrett Morris - page 2 (H-752) aa provides:
sectian This Act shall bscune effective cm Septerber 1, 1975, and the axmission shall thereqm kegin organizationandthegatheringofinformtim asprovidedinthiskt.
Thus, yourquestimiswhether the approval of these contracts is an incident of infomation gathering, an exercise of regulatory authority ova rates or service, or an exercise of otherregulatorypawers.
In our view, the approval process is of the third category. Clearly an approvalismre thanmere informationgathering. The approval authority under section 56 is a facet of the regulatory authority of the &mission. Hcwever, we do not believe this approval process to constitute anexercise of regulatory jurisdiction of rates or service. We are aware of the broad definition given "sexvice," in section 3(s), but in ouropinionthe regulatory authority over "service," whichunder section 87(b) camot be exercised until September 1, 1976, is that authority provided in section 35(b) of the Act or in other similar provisions. Were the ccmnission's jurisdiction over "service" in its broadest sense delayed until Septmber 1, 1976, it is difficult to ascertain what regulatory pavers could be exercised on January 1, 1976. Thus, in ow opinion section 87(b) relates to regulations of service which constitute or are similar to the fixing of "standards, classifications, regulations, or practices. . .witb respect to the service to be furnished. . . .n Sec. 35(b). We do not believe the approval authority provided in section 56 is such a regulation of service. kmxdinqly, in oux opinion the authority provided in section 56 is a part of the general regulatory authority of the Camnission and can be exercised on January 1, 1976. sec. 87(a).
SUMMARY The approval authority over contracts between utilities provided in section 56 of the Public Utility F!egulatory Act may te exercised after January 1, 1976.
d/z@ &
L. HILL ttorney General of Texas *3 The Honorable Garrett Mxris - page 3 (H-752)
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