| (a) The commission may issue an emergency order in
accordance with Texas Water Code (TWC) Chapter 13, Subchapter K-1
under Chapter 22, Subchapter P of this title (relating to Emergency
Orders for Water and Sewer Utilities), with or without a hearing:
(1) to appoint a person under §24.355 of this
title (relating to Operation of Utility that Discontinues Operation
or is Referred for Appointment of a Receiver), §24.357 of this
title (relating to Operation of a Utility by a Temporary Manager),
or TWC §13.4132 to temporarily manage and operate a utility that
has discontinued or abandoned operations or that is being referred
to the Office of the Texas Attorney General for the appointment of
a receiver under TWC §13.412;
(2) to compel a retail public utility that has obtained
or is required to obtain a certificate of public convenience and necessity
to provide continuous and adequate retail water service, sewer service,
or both, if the discontinuance of the service is imminent or has occurred
because of the retail public utility's actions or inactions;
(3) to compel a retail public utility to provide an
emergency interconnection with a neighboring retail public utility
for the provision of temporary water or sewer service, or both, for
not more than 90 days if discontinuance of service or serious impairment
in service is imminent or has occurred;
(4) to authorize an emergency rate increase if necessary
to ensure the provision of continuous and adequate retail water or
sewer service to the utility's customers under TWC §13.4133:
(A) for a utility for which a person has been appointed
under TWC §13.4132 to temporarily manage and operate the utility;
or
(B) for a utility for which a receiver has been appointed
under TWC §13.412;
(5) to establish, on an expedited basis, in response
to a request by the Texas Commission on Environmental Quality (TCEQ),
reasonable compensation for the temporary service required under TWC §13.041(h)(2)
and to allow the retail public utility receiving the service to make
a temporary adjustment to its rate structure to ensure proper payment;
(6) to compel a retail public utility to make specified
improvements and repairs to a water or sewer system owned or operated
by the utility under TWC §13.253(b):
(A) if the commission has reason to believe that improvements
and repairs to a water or sewer service system are necessary to enable
a retail public utility to provide continuous and adequate service
in any portion of its service area;
(B) after providing a retail public utility notice
and an opportunity to be heard at an open meeting of the commission;
and
(C) if the retail public utility has provided financial
assurance under Texas Health and Safety Code §341.0355 or TWC
Chapter 13;
(7) to order an improvement in service or an interconnection
under TWC §13.253(a)(1)-(3).
(b) The commission may establish reasonable compensation
for temporary service ordered under subsection (a)(3) of this section
and may allow the retail public utility receiving the service to make
a temporary adjustment to its rate structure to ensure proper payment.
(c) For an emergency order issued under subsection
(a)(4) of this section:
(1) the commission will coordinate with the TCEQ as
needed;
(2) an emergency rate increase may be granted for a
period not to exceed 15 months from the date on which the increase
takes effect;
(3) the additional revenues collected under an emergency
rate increase are subject to refund if the commission finds that the
rate increase was larger than necessary to ensure continuous and adequate
service;
(4) the effective date of the emergency rates must
be the first day of a billing cycle, unless otherwise authorized by
the commission;
(5) any emergency rate increase related to charges
for actual consumption will be for consumption after the effective
date. An increase or the portion of an increase that is not related
to consumption may be billed at the emergency rate on the effective
date or the first billing cycle after approval by the commission;
(6) the utility must maintain adequate books and records
for a period not less than 12 months to allow for the determination
of a cost of service as set forth in §24.41 of this title (relating
to Cost of Service); and
(7) during the pendency of the emergency rate increase,
the commission may require that the utility deposit all or part of
the rate increase into an interest-bearing escrow account as set forth
in §24.39 of this title (relating to Escrow of Proceeds Received
under Rate Increase).
(d) The costs of any improvements ordered under subsection
(a)(6) of this section may be paid by bond or other financial assurance
in an amount determined by the commission not to exceed the amount
of the bond or financial assurance. After notice and hearing, the
commission may require a retail public utility to obligate additional
money to replace the financial assurance used for the improvements.
(e) An emergency order issued under this subchapter
does not vest any rights and expires in accordance with its terms
or this subchapter.
(f) An emergency order issued under this subchapter
must be limited to a reasonable time as specified in the order. Except
as otherwise provided by this chapter, the term of an emergency order
may not exceed 180 days.
(g) An emergency order may be renewed once for a period
not to exceed 180 days, except an emergency order issued under subsection
(a)(4) of this section.
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