(a) Levels of environs rates.
(1) The environs rates may be the same rates as those
in effect in the nearest incorporated area in Texas served by the
same utility where gas is obtained from at least one common pipeline
supplier or transmission system. The Commission, on application by
a utility, on complaint by any affected person, or on its own motion
may review the rate in or boundaries of a given environs area and
may consent to or order an adjustment where appropriate.
(2) In addition to the definition of environs rates
in §7.115 of this title (relating to Definitions), environs rates
shall include any quality of service rules adopted by the Commission
in subchapter D of this chapter (relating to Customer Service and
Protection). Such quality of service rules shall apply to environs
areas and become part of environs rates regardless of whether the
same quality of service rules are in effect in the related incorporated
areas.
(b) Rate increases for environs rates. Rate increases
in environs shall be made in accordance with the following procedures.
(1) The gas utility shall file a statement of intent
and shall give notice as required under Texas Utilities Code, §104.103,
§7.210 of this title (relating to Increasing Residential and
Commercial Rates--Statement of Intent), and §7.230 of this title
(relating to Contents of Notice). In addition, when environs rates
are to be increased at the same time and to the same extent as the
related incorporated area (city) rate and the proposed change does
not constitute a "major change," the statement of intent to increase
such environs rates shall include (in completed form) the following
statement: "This is a Statement of Intent to increase environs rates
for the unincorporated areas in the vicinity of __________________,
and contains rates identical with and to become effective upon the
same date as rates contained in a similar Statement of Intent filed
on or about this date by this utility with said city. This Statement
of Intent is intended to produce the same residential and commercial
rates as finally approved for the City of __________________ and applies
to the rates set out herein or any lower rates finally approved for
the City of __________________. Any rate changes pursuant to this
Statement of Intent will not become effective until identical changes
have become effective within the City of __________________." All
rate schedules filed with the environs Statement of Intent shall bear
the following statement: "Effective on the latter of _______________________
or such other date as new rates become effective in the City of __________________."
(2) The utility shall give notice of the filing of
a statement of intent to increase environs rates as required by §7.235
of this title (relating to Publication and Service of Notice).
(3) Upon request and a showing of good cause by the
utility, the environs rates may become effective upon the same date
as the rates became effective in the municipality pursuant to Texas
Utilities Code, §104.104. Environs rates shall not become effective
any earlier than the filing date of the statement of intent to increase
rates with the Director. If a utility appeals the rate to the Commission,
and the Commission establishes rates the same as or less than those
in the environs statement of intent, the rates established by the
Commission in the city may become simultaneously effective in the
environs area. If the Commission dismisses that appeal, any rates
which have been established in the city may become effective in the
environs area at the time of dismissal, provided that the rates established
in the city are the same as or less than those in the environs statement
of intent.
(4) No later than 60 days from the date of filing an
environs statement of intent, the utility shall furnish a copy to
the Commission of any action taken by the city with respect to the
related statement of intent, the form of written notice mailed to
affected environs area customers, and an affidavit of publication
from the newspaper in which notice by publication was made, or an
affidavit stating the manner in which notice was otherwise given pursuant
to Texas Utilities Code, §104.103.
(c) Rate changes proposed pursuant to cost of service
adjustment clause. The Commission shall review, on a cost of service
basis, an increase in an environs rate that the utility proposes pursuant
to a cost of service adjustment clause, as defined in §7.115
of this title (relating to Definitions). The cost of service adjustment
clause in effect in the adjacent municipality shall not be applicable
or put into effect for the affected environs area, although the utility
may request the same rates that are in effect in the adjacent municipality
for the environs area. The Commission may review the proposed rate
increases pursuant to these clauses on an informal basis and will
not schedule a formal hearing unless a complaint is received pursuant
to subsection (b)(4) of this section or the Commission elects to conduct
a formal hearing.
(d) Other rate changes. This section shall not apply
to major rate changes or to changes in special rates.
|