| (a) The commission may place a utility under supervision
where:
(1) the utility has exhibited gross or continuing mismanagement;
or
(2) the utility has exhibited gross or continuing noncompliance
with Chapter 13 of the TWC or commission rules; or
(3) the utility has exhibited noncompliance with commission
orders; and
(4) notice has been provided to the utility advising
the utility of the proposed commission action, the reasons for the
action and giving the utility an opportunity to request a hearing.
(b) The commission may require the utility to abide
by conditions and requirements, including but not limited to:
(1) management requirements;
(2) additional reporting requirements;
(3) restrictions on hiring, salary or benefit increases,
capital investment, borrowing, stock issuance or dividend declarations,
and liquidation of assets;
(4) a requirement that the utility place all or part
of the utility's funds and revenues into an account in a financial
institution approved by the commission and restricting use of funds
in that account to reasonable and necessary expenses;
(5) operational requirements;
(6) priority order of payments or obligations; and
(7) limitation of payment for owner's or owner's family
member's expenses or salaries or payments to affiliates.
(c) Any utility under supervision may be required to
obtain the approval of the commission before taking any action that
may be restricted under subsection (b) of this section. If the commission
in its order has required prior approval, any action or transaction
which occurs without that approval may be voided.
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