1. (a) Application. To obtain a certificate of public convenience and necessity (CCN) or an amendment to a certificate, a public utility or water supply or sewer service corporation shall submit to the commission an application for a certificate or for an amendment. Applications for CCNs or for an amendment to a certificate must contain the following materials, unless otherwise specified in the application:

   1. (1) the appropriate application form prescribed by the commission, completed as instructed and properly executed;

   2. (2) a map and description of only the proposed service area by:

      1. (A) metes and bounds survey certified by a licensed state land surveyor or a registered professional land surveyor;
      2. (B) the Texas State Plane Coordinate System or any standard map projection and corresponding metadata;
      3. (C) a state county base map, scale one inch equals two-miles showing the area to be served that clearly defines the proposed location of the applicant and each neighboring water or sewer utility within five miles of the applicant's proposed service area for a CCN and within two miles of the applicant's proposed service area for a CCN amendment;
      4. (D) verifiable landmarks, including a road, creek, or railroad line; or a copy of the recorded plat of the area, if it exists, with lot and block number;
      5. (E) maps as described in §24.119 of this title (relating to Filing of Maps);
      6. (F) a separate map for each county in which the applicant seeks a CCN or CCN amendment;
      7. (G) a general location map; and
      8. (H) other maps as requested.
   3. (3) a description of any requests for service in the proposed service area;
   4. (4) any evidence as required by the commission to show that the applicant has received the necessary consent, franchise, permit, or license from the proper municipality or other public authority;
   5. (5) an explanation of the applicant's reasons for contending that issuance of a certificate as requested is necessary for the service, accommodation, convenience, or safety of the public;
   6. (6) a capital improvements plan, including a budget and estimated time line for construction of all facilities necessary to provide full service to the entire proposed service area, keyed to maps showing where such facilities will be located to provide service;
   7. (7) a description of the sources of funding for all facilities;
   8. (8) for utilities or water supply or sewer service corporation previously exempted for operations or extensions in progress as of September 1, 1975, a list of all current customer locations which were being served on September 1, 1975, and an accurate location of them on the maps submitted. Current customer locations which were not being served on that date should also be located on the same map in a way which clearly distinguishes the two groups;
   9. (9) disclosure of all affiliated interests as defined by §24.3 of this title (relating to Definitions of Terms);
   10. (10) to the extent known, a description of current and projected land uses, including densities;
   11. (11) a current financial statement of the applicant;

   12. (12) according to the tax roll of the central appraisal district for each county in which the proposed service area is located, a list of the owners of each tract of land that is:

       1. (A) at least 25 acres; and
       2. (B) wholly or partially located within the proposed service area;
   13. (13) if dual certification is being requested, and an agreement between the affected utilities exists, a copy of the agreement;

   14. (14) for a water CCN for a new or existing system, a copy of:

       1. (A) the approval letter for the plans approved by the TCEQ and specifications for the system or proof that the applicant has submitted either a preliminary engineering report or plans and specification for the first phase of the system unless 30 TAC §290.39(j)(1)(D) (relating to General Provisions) applies;
       2. (B) other information that indicates the applicant is in compliance with §24.93 of this title (relating to Adequacy of Water Utility Service) for the system; or
       3. (C) a contract with a wholesale provider that meets the requirements in §24.93 of this title;

   15. (15) for a sewer CCN for a new or existing facility, a copy of:

       1. (A) a wastewater permit or proof that a wastewater permit application for that facility has been filed with the Texas Commission on Environmental Quality;
       2. (B) other information that indicates that the applicant is in compliance with §24.94 of this title (relating to Adequacy of Sewer Service) for the facility; or
       3. (C) a contract with a wholesale provider that meets the requirements in §24.94 of this title; and
   16. (16) any other item required by the commission.

2. (b) Application within the municipal boundaries or extraterritorial jurisdiction of certain municipalities.

   1. (1) This subsection applies only to a municipality with a population of 500,000 or more.
   2. (2) Except as provided by paragraphs (3) - (7) of this subsection, the commission may not grant to a retail public utility a CCN for a service area within the boundaries or extraterritorial jurisdiction of a municipality without the consent of the municipality. The municipality may not unreasonably withhold the consent. As a condition of the consent, a municipality may require that all water and sewer facilities be designed and constructed in accordance with the municipality's standards for facilities.

   3. (3) If a municipality has not consented under paragraph (2) of this subsection before the 180th day after the date the municipality receives the retail public utility's application, the commission shall grant the CCN without the consent of the municipality if the commission finds that the municipality:

      1. (A) does not have the ability to provide service; or
      2. (B) has failed to make a good faith effort to provide service on reasonable terms and conditions.

   4. (4) If a municipality has not consented under this subsection before the 180th day after the date a landowner or a retail public utility submits to the municipality a formal request for service according to the municipality's application requirements and standards for facilities on the same or substantially similar terms as provided by the retail public utility's application to the commission, including a capital improvements plan required by TWC, §13.244(d)(3) or a subdivision plat, the commission may grant the CCN without the consent of the municipality if:

      1. (A) the commission makes the findings required by paragraph (3) of this subsection;
      2. (B) the municipality has not entered into a binding commitment to serve the area that is the subject of the retail public utility's application to the commission before the 180th day after the date the formal request was made; and

      3. (C) the landowner or retail public utility that submitted the formal request has not unreasonably refused to:

         1. (i) comply with the municipality's service extension and development process; or
         2. (ii) enter into a contract for water or sewer services with the municipality.
   5. (5) If a municipality refuses to provide service in the proposed service area, as evidenced by a formal vote of the municipality's governing body or an official notification from the municipality, the commission is not required to make the findings otherwise required by this section and may grant the CCN to the retail public utility at any time after the date of the formal vote or receipt of the official notification.
   6. (6) The commission must include as a condition of a CCN granted under paragraph (4) or (5) of this subsection that all water and sewer facilities be designed and constructed in accordance with the municipality's standards for water and sewer facilities.
   7. (7) Paragraphs (4) - (6) of this subsection do not apply in the following counties: Cameron, Fannin, Grayson, Guadalupe, Hidalgo, Willacy, or Wilson.
   8. (8) A commitment by a city to provide service must, at a minimum, provide that the construction of service facilities will begin within one year and will be substantially completed within two years after the date the retail public utility's application was filed with the municipality.
   9. (9) If the commission makes a decision under paragraph (3) of this subsection regarding the granting of a CCN without the consent of the municipality, the municipality or the retail public utility may appeal the decision to the appropriate state district court.

3. (c) Extension beyond extraterritorial jurisdiction.

   1. (1) Except as provided by paragraph (2) of this subsection, if a municipality extends its extraterritorial jurisdiction to include an area certificated to a retail public utility, the retail public utility may continue and extend service in its area of public convenience and necessity under the rights granted by its certificate and this chapter.
   2. (2) The commission may not extend a municipality's CCN beyond its extraterritorial jurisdiction if an owner of land that is located wholly or partly outside the extraterritorial jurisdiction elects to exclude some or all of the landowner's property within a proposed service area in accordance with TWC, §13.246(h). This subsection does not apply to a transfer of a certificate as approved by the commission.
   3. (3) Paragraph (2) of this subsection does not apply to an extension of extraterritorial jurisdiction in Cameron, Fannin, Grayson, Guadalupe, Hidalgo, Willacy, or Wilson Counties.
   4. (4) To the extent of a conflict between this subsection and TWC, §13.245, TWC, §13.245 prevails.

4. (d) Area within municipality.

   1. (1) If an area is within the boundaries of a municipality, all retail public utilities certified or entitled to certification under this chapter to provide service or operate facilities in that area may continue and extend service in its area of public convenience and necessity within the area under the rights granted by its certificate and this chapter, unless the municipality exercises its power of eminent domain to acquire the property of the retail public utility under this subsection. Except as provided by TWC, §13.255, a municipally owned or operated utility may not provide retail water and sewer utility service within the area certificated to another retail public utility without first having obtained from the commission a CCN that includes the areas to be served.
   2. (2) This subsection may not be construed as limiting the power of municipalities to incorporate or extend their boundaries by annexation, or as prohibiting any municipality from levying taxes and other special charges for the use of the streets as are authorized by Texas Tax Code, §182.025.

   3. (3) In addition to any other rights provided by law, a municipality with a population of more than 500,000 may exercise the power of eminent domain in the manner provided by Texas Property Code, Chapter 21, to acquire a substandard water or sewer system if all the facilities of the system are located entirely within the municipality's boundaries. The municipality shall pay just and adequate compensation for the property. In this subsection, substandard water or sewer system means a system that is not in compliance with the municipality's standards for water and wastewater service.

      1. (A) A municipality shall notify the commission no later than seven days after filing an eminent domain lawsuit to acquire a substandard water or sewer system and also notify the commission no later than seven days after acquiring the system.
      2. (B) With the notification of filing its eminent domain lawsuit, the municipality, in its sole discretion, shall either request that the commission cancel the CCN of the acquired system or transfer the certificate to the municipality and the commission shall take such requested action upon notification of acquisition of the system.

Source Note:The provisions of this §24.105 adopted to be effective September 1, 2014, 39 TexReg 5903.