| (a) Extension of Service.
(1) Except for a utility or water supply or sewer service
corporation that possesses a facilities-only certificate of convenience
and necessity (CCN), a retail public utility is not required to obtain
a CCN for:
(A) an extension into territory contiguous to that
already served by the retail public utility if:
(i) the point of ultimate use is within one quarter
mile of the outer boundary of its existing certificated service area;
(ii) the area is not receiving similar service from
another retail public utility; and
(iii) the area is not located inside another retail
public utility's certificated service area; or
(B) an extension within or to territory already served
by it or to be served by it under a CCN.
(2) Whenever an extension is made under paragraph (1)(A)
of this subsection, the utility or water supply or sewer service corporation
making the extension must inform the commission of the extension by
submitting within 30 days of the date service is commenced, a copy
of a map of the service area clearly showing the extension, accompanied
by a written explanation of the extension.
(b) Construction of Facilities. A CCN is not required
for the construction or upgrading of distribution facilities within
the retail public utility's certificated service area, or for the
purchase or condemnation of real property for use as facility sites
or rights-of-way. Prior acquisition of facility sites or rights-of-way,
and prior construction or upgrading of distribution facilities, does
not entitle a retail public utility to be granted a CCN or CCN amendment
without a showing that the proposed CCN or CCN amendment is necessary
for the service, accommodation, convenience, or safety of the public.
(c) Single Certification Under TWC §13.255. A
municipality that has given notice under TWC §13.255 that it
intends to provide retail water or sewer utility service to an area
or to customers not currently being served is not required to obtain
a CCN prior to commencing service in the area if the municipality:
(1) provides a copy of the notice required in TWC §13.255
to the retail public utility;
(2) files a copy of the notice with the commission;
and
(3) files an application for single certification as
required by TWC §13.255 and §24.259 of this title (relating
to Single Certification in Incorporated or Annexed Areas).
(d) Municipal Systems in Unserved Area.
(1) This subsection applies only to a home-rule municipality
that is:
(A) located in a county with a population of more than
1.75 million; and
(B) adjacent to a county with a population of more
than 1 million and has within its boundaries a part of a district.
(2) If a district does not establish a fire department
under TWC §49.352, a municipality that contains a part of the
district inside its boundaries may by ordinance or resolution provide
that a water system be constructed or extended into the area that
is in both the municipality and the district for the delivery of potable
water for fire flow that is sufficient to support the placement of
fire hydrants and the connection of the water system to fire suppression
equipment.
(3) For purposes of this subsection, a municipality
may obtain single certification in the manner provided by TWC §13.255,
except that the municipality may file an application with the commission
to grant single certification immediately after the municipality provides
notice of intent to provide service as required by TWC §13.255(b).
(e) Water Utility or Water Supply Corporation With
Less Than 15 Potential Connections.
(1) A water utility or water supply corporation is
exempt from the requirement to possess a CCN to provide retail water
utility service if it:
(A) has less than 15 potential service connections;
(B) is not owned by or affiliated with a retail public
water utility, or any other entity, that provides potable water service;
(C) is not located within the certificated service
area of another retail public water utility; and
(D) is not within the corporate boundaries of a district
or municipality unless it receives written authorization from the
district or municipality.
(2) A water utility or water supply corporation with
less than 15 potential connections currently operating under a CCN
may request cancellation of the CCN at any time.
(3) The commission may cancel the current CCN upon
written request by the exempt utility or water supply corporation.
(4) An exempt utility shall comply with the service
rule requirements in the Exempt Utility Tariff Form prescribed by
the commission which shall not be more stringent than those in §§24.151
- 24.171 of this title (relating to Customer Service and Protection).
(5) The exempt utility shall provide a copy of its
tariff to each future customer at the time service is requested and
upon request to each current customer.
(6) An applicant requesting registration status as
an exempt utility shall comply with the mapping documents as prescribed
in §24.257(a)(2) - (3) of this title (relating to Mapping Requirements
for Certificate of Convenience and Necessity Applications).
(7) Exempt-Utility Tariff and Rate Change Requirements.
An exempt utility operating under registration status as an exempt
utility:
(A) must maintain a current copy of the exempt-utility's
tariff with its current rates at its business location; and
(B) may change its rates without following the requirements
in §24.27 of this title (relating to Notice of Intent and Application
to Change Rates Pursuant to Texas Water Code §13.187 or §13.1871)
if it provides each customer with written notice of the rate change
prior to the effective date of the rate change. The written notice
shall indicate the old rates, the new rates, the effective date of
the new rates, and the address of the commission along with a statement
that written comments or requests to intervene may be filed with the
commission at the following mailing address: Filing Clerk, Public
Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box
13326, Austin, Texas 78711-3326. If the commission receives written
comments or requests to intervene from at least 50% of the customers
of an exempt utility within 90 days after the effective date of the
rate change, the commission shall review the exempt utility's records
or other information relating to the cost of providing service. After
reviewing the information and any comments or requests to intervene
from customers or the exempt utility, the commission shall establish
the rates to be charged by the exempt utility. Those rates shall be
effective on the date originally noticed by the exempt utility unless
a different effective date is agreed to by the exempt utility and
intervenors. These rates may not be changed for 12 months after the
proposed effective date without authorization by the commission. The
exempt utility shall refund any rates collected in excess of the rates
established by the commission in accordance with the time frames or
other requirements established by the commission.
(C) The exempt utility or water supply corporation,
Office of Public Utility Counsel, commission staff, or any affected
customer may file a written motion for rehearing. The rates determined
by the commission shall remain in effect while the commission considers
the motion for rehearing.
(8) Unless authorized in writing by the commission,
an exempt water utility or a water supply corporation operating under
these requirements may not cease operations. An exempt water utility
may not discontinue service to a customer with or without notice except
in accordance with its commission approved exempt-utility tariff and
an exempt water supply corporation may not discontinue service to
a customer for any reason not in accordance with its bylaws.
(9) An exempt water utility or water supply corporation
operating under this exemption which does not comply with the requirements
of these rules or the minimum requirements of the exempt-utility tariff
approved by the commission shall be subject to any and all enforcement
remedies provided by this chapter and TWC chapter 13.
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