<<Prev Rule

Texas Administrative Code

Next Rule>>
TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 24SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS
SUBCHAPTER HCERTIFICATES OF CONVENIENCE AND NECESSITY
RULE §24.245Revocation of a Certificate of Convenience and Necessity or Amendment of a Certificate of Convenience and Necessity by Decertification, Expedited Release, or Streamlined Expedited Release

    (B) If the former CCN holder and landowner have not agreed on an independent appraiser within ten days after the commission grants streamlined expedited release under subsection (h) of this section, the former CCN holder and landowner must each engage its own appraiser at its own expense. Each appraiser must file its appraisal with the commission within 70 calendar days after the commission grants streamlined expedited release. After receiving the appraisals, the commission will appoint a third appraiser who must make a determination of compensation within 100 days after the date the commission grants streamlined expedited release. The determination by the commission-appointed appraiser may not be less than the lower appraisal or more than the higher appraisal made by the appraisers engaged by the former CCN holder and landowner. The former CCN holder and landowner must each pay half the cost of the commission-appointed appraisal directly to the commission-appointed appraiser.

    (C) The appraisers must determine the amount of compensation in accordance with subsection (j) of this section.

  (3) The determination of compensation by the agreed-upon appraiser under paragraph (2)(A) or the commission-appointed appraiser under paragraph (2)(B) of this subsection is binding on the commission, former CCN holder, and landowner.

  (4) If the former CCN holder fails to make a filing with the commission about the amount of agreed compensation or engage an appraiser or file an appraisal within the timeframes required by this subsection, the amount of compensation to be paid will be deemed to be zero. If the landowner fails to make a filing with the commission about the amount of agreed compensation, or engage an appraiser, or file an appraisal within the timeframes required by this subsection, the commission will base the amount of compensation to be paid on the appraisal provided by the CCN holder.

  (5) The commission will issue an order establishing the amount of compensation to be paid and directing the landowner to pay the compensation to the former CCN holder not later than 60 days after the commission receives the final appraisal.

  (6) The landowner must pay the compensation to the former CCN holder not later than 90 days after the date the compensation amount is determined by the commission. The commission will not authorize a prospective retail public utility to serve the removed area until the landowner has paid to the former CCN holder any compensation that is required.

(j) Valuation of real and personal property of the former CCN holder.

  (1) The value of real property must be determined according to the standards set forth in chapter 21 of the Texas Property Code governing actions in eminent domain.

  (2) The value of personal property must be determined according to this paragraph. The following factors must be used in valuing personal property:

    (A) the amount of the former CCN holder's debt allocable to service to the removed area;

    (B) the value of the service facilities belonging to the former CCN holder that are located within the removed area;

    (C) the amount of any expenditures for planning, design, or construction of the service facilities of the former CCN holder that are allocable to service to the removed area;

    (D) the amount of the former CCN holder's contractual obligations allocable to the removed area;

    (E) any demonstrated impairment of service or any increase of cost to consumers of the former CCN holder remaining after a CCN revocation or amendment under this section;

    (F) the impact on future revenues lost from existing customers;

    (G) necessary and reasonable legal expenses and professional fees, including costs incurred to comply with TWC §13.257(r); and

    (H) any other relevant factors as determined by the commission.

(k) Mapping information.

  (1) For proceedings under subsections (f) or (h) of this section, the following mapping information must be filed with the petition:

    (A) a general-location map identifying the tract of land in reference to the nearest county boundary, city, or town;

    (B) a detailed map identifying the tract of land in reference to verifiable man-made and natural landmarks, such as roads, rivers, and railroads. If ownership of the tract of land is conveyed by multiple deeds, this map must also identify the location and acreage of land conveyed by each deed; and

    (C) one of the following for the tract of land:

      (i) a metes-and-bounds survey sealed or embossed by either a licensed state land surveyor or a registered professional land surveyor;

      (ii) a recorded plat; or

      (iii) digital mapping data in a shapefile (SHP) format georeferenced in either NAD 83 Texas State Plane Coordinate System (US feet) or in NAD 83 Texas Statewide Mapping System (meters). The digital mapping data must include a single, continuous polygon record.

  (2) Commission staff may request additional mapping information.

  (3) All maps must be filed in accordance with §22.71 and §22.72 of this title.

(l) Additional conditions for decertification under subsection (d) of this section.

  (1) If the current CCN holder did not agree in writing to a revocation or amendment by decertification under subsection (d) of this section, then an affected retail public utility may request that the revocation or amendment be conditioned on the following:

    (A) ordering the prospective retail public utility to provide service to the entire service area of the current CCN holder; and

    (B) transferring the entire CCN of the current CCN holder to the prospective retail public utility.

  (2) If the commission finds that, as a result of revocation or amendment by decertification under subsection (d) of this section, the current CCN holder will be unable to provide continuous and adequate service at an affordable cost to the current CCN holder's remaining customers, then:

    (A) the commission will order the prospective retail public utility to provide continuous and adequate service to the remaining customers at a cost comparable to the cost of that service to the prospective retail public utility's other customers and will establish the terms under which service must be provided; and

    (B) the commission may order any of the following terms:

      (i) transfer of debt and other contract obligations;

      (ii) transfer of real and personal property;

      (iii) establishment of interim rates for affected customers during specified times; and

      (iv) other provisions necessary for the just and reasonable allocation of assets and liabilities.

  (3) The prospective retail public utility must not charge the affected customers any transfer fee or other fee to obtain service, except for the following:

    (A) the prospective retail public utility's usual and customary rates for monthly service, or

    (B) interim rates set by the commission, if applicable.

  (4) If the commission orders the prospective retail public utility to provide service to the entire service area of the current CCN holder, the commission will not order compensation to the current CCN holder, the commission will not make a determination of the amount of compensation to be paid to the current CCN holder, and the prospective retail public utility must not file a notice of intent under subsection (g) of this section.


Source Note: The provisions of this §24.245 adopted to be effective July 2, 2020, 45 TexReg 4321

Previous Page

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page