| (a) A utility may not purchase voting stock, and a
person may not acquire a controlling interest, in a utility doing
business in this state unless the utility or person files a written
application with the commission no later than the 61st day before
the date on which the transaction is to occur. A controlling interest
is defined as:
(1) a person or a combination of a person and the person's
family members that possess at least 50% of a utility's voting stock;
or
(2) a person that controls at least 30% of a utility's
voting stock and is the largest stockholder.
(b) A person acquiring a controlling interest in a
utility is required to demonstrate adequate financial, managerial,
and technical capability for providing continuous and adequate service
to the requested area and to the person's certificated service area,
if any.
(c) If the person acquiring a controlling interest
cannot demonstrate adequate financial capability, the commission may
require the person to provide financial assurance to ensure continuous
and adequate utility service is provided to the service area. The
commission will set the amount of financial assurance. The form of
the financial assurance must be as specified in §24.11 of this
title relating to Financial Assurance. The obligation to obtain financial
assurance under this chapter does not relieve an applicant from any
requirements to obtain financial assurance in satisfaction of another
state agency's rules.
(d) The commission may require a public hearing on
the transaction if a criterion prescribed by §24.239(k) of this
title relating to Sale, Transfer, Merger, Consolidation, Acquisition,
Lease, or Rental applies.
(e) Unless the commission requires that a public hearing
be held, the purchase or acquisition may be completed as proposed:
(1) at the end of the 60-day period; or
(2) at any time after the commission notifies the person
or utility that a hearing will not be required.
(f) If a hearing is required or if the person or utility
fails to make the application to the commission as required, the purchase
of voting stock or acquisition of a controlling interest may not be
completed unless the commission determines that the proposed transaction
serves the public interest. A purchase or acquisition that is not
completed in accordance with the provisions of this section is void.
(g) The utility or person must notify the commission
within 30 days after the date that the transaction is completed.
(h) Within 30 days of the commission order that allows
a utility's purchase of voting stock or a person's acquisition of
a controlling interest to proceed as proposed, the utility purchasing
voting stock or the person acquiring a controlling interest must file
a written update on the status of the transaction. A written update
must also be filed every 30 days thereafter, until the transaction
has been completed.
(i) The commission's approval of a utility's purchase
of voting stock or a person's acquisition of a controlling interest
in a utility expires 180 days after the date of the commission order
approving the transaction as proposed. If the transaction has not
been completed within the 180-day time period, and unless the utility
purchasing voting stock or the person acquiring a controlling interest
has requested and received an extension for good cause from the commission,
the approval is void.
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