(a) If approved by the commission after notice and
hearing, contracts between retail public utilities designating areas
to be served and customers to be served by those retail public utilities
are valid and enforceable and are incorporated into the corresponding
certificates of convenience and necessity (CCNs). This section only
applies to the transfer of certificated service area and customers
between existing CCN holders. Nothing in this provision negates the
requirements of TWC §13.301 to obtain a new CCN and document
the transfer of assets and facilities between retail public utilities.
(b) Retail public utilities may request approval of
a contract by filing a written petition with the commission. The written
petition shall include the following:
(1) maps of the requested area in accordance with §24.257(a)
of this title (relating to Mapping Requirements for Certificate of
Convenience and Necessity Applications);
(2) a copy of the executed contract or agreement;
(3) the number of customers to be transferred, if any;
(4) information described in subsection (c)(3) of this
section; and
(5) any other information required by the commission.
(c) For the purpose of this section, notice under §24.235
of this title (relating to Notice Requirements for Certificate of
Convenience and Necessity Applications) does not apply. Notice under
this section shall be as follows:
(1) If affected customers will be transferred as part
of the contract, then individual notice shall be provided to the affected
customers by mail, e-mail, or hand delivery. The notice must contain
the current rates, the effective date those rates were instituted,
and any other information required by the commission.
(2) If the decision to enter into a contract under
this section was discussed at a meeting of a city council, a water
supply or sewer service corporation's board, district board, county
commissioner's court, or other regulatory authority, a copy of the
meeting agenda and minutes for the meeting during which the item was
discussed may be considered sufficient notice.
(3) If notice was provided in accordance with paragraph
(1) or (2) of this subsection, both parties to the contract under
this section shall ensure that the following are filed with the commission:
an affidavit attesting to the date that notice was provided and copies
of the notice that was sent.
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