| (C) The prospective retail public utility shall bear
the costs of the independent appraiser.
(D) The commission is bound by the independent appraiser's
valuation of the useless or valueless property. The commission shall
review the valuation to ensure compliance with the requirements of
this section.
(8) If the former CCN holder and the prospective retail
public utility do not agree on an independent appraiser, each shall
engage its own qualified appraiser at its own expense.
(A) Each appraiser shall be limited to appraising the
useless or valueless property.
(B) Each appraiser shall file its appraisal with the
commission within 60 calendar days after the filing of the notice
of intent to provide service.
(C) After the two appraisals are filed, the commission
shall appoint a qualified individual or firm to serve as a third appraiser
who shall make a valuation within 30 calendar days of the date the
independent appraisals are filed.
(D) The third appraiser's valuation shall be limited
to the useless or valueless property and may not be less than the
lower appraisal valuation or more than the higher appraisal valuation.
(E) The former CCN holder and the prospective retail
public utility shall each pay one-half of the cost of the third appraisal.
Payment shall be made directly to the third appraiser. Proofs of payment
shall be separately filed with the commission by the former CCN holder
and the prospective retail public utility.
(F) The commission is bound by the third appraiser's
valuation of the useless or valueless property. The commission shall
review the valuation to ensure compliance with the requirements of
this section.
(9) Valuation of real property. The value of real property
that the commission identified in the order issued under subsections
(k) or (l) of this section as useless or valueless shall be determined
according to the standards set forth in chapter 21 of the Texas Property
Code governing actions in eminent domain.
(10) Valuation of personal property. The value of personal
property that the commission identified in the order issued under
subsections (k) or (l) of this section as useless or valueless shall
be determined according to this paragraph. To ensure that compensation
to a former CCN holder is just and adequate, the following factors
shall be used in valuing such personal property:
(A) the amount of the former CCN holder's debt allocable
to service to the removed area;
(B) the value of the service facilities belonging to
the former CCN holder that are located within the removed area;
(C) the amount of any expenditures for planning, design,
or construction of the service facilities of the former CCN holder
that are allocable to service to the removed area;
(D) the amount of the former CCN holder's contractual
obligations allocable to the removed area;
(E) any demonstrated impairment of service or any increase
of cost to consumers of the former CCN holder remaining after a CCN
revocation or amendment under this section;
(F) the impact on future revenues lost from existing
customers;
(G) necessary and reasonable legal expenses and professional
fees; and
(H) any other relevant factors as determined by the
commission.
(11) If the presiding officer determines that all requirements
of this subsection have been met, the presiding officer shall issue
an order setting the compensation due to the former CCN holder at
the valuation established by the appraisal. This order shall be the
final act of the commission, subject to motions for rehearing. Alternatively,
the presiding officer may issue a proposed order for consideration
by the commission.
(p) Additional conditions.
(1) If the current CCN holder did not agree in writing
to a revocation or amendment sought under this section, then an affected
retail public utility may request that the revocation or amendment
be conditioned on the following:
(A) ordering the prospective retail public utility
to provide service to the entire service area of the current CCN holder;
and
(B) transferring the entire CCN of the current CCN
holder to the prospective retail public utility.
(2) The commission shall order the prospective retail
public utility to provide service to the entire service area of the
current CCN holder if the commission finds that the current CCN holder
will be unable to provide continuous and adequate service at an affordable
cost to the current CCN holder's remaining customers.
(A) The commission shall order the prospective retail
public utility to provide continuous and adequate service to the remaining
customers at a cost comparable to the cost of that service to the
prospective retail public utility's other customers and shall establish
the terms under which service must be provided.
(B) The commission may order any of the following terms:
(i) transfer of debt and other contract obligations;
(ii) transfer of real and personal property;
(iii) establishment of interim rates for affected customers
during specified times; and
(iv) other provisions necessary for the just and reasonable
allocation of assets and liabilities.
(3) The prospective retail public utility shall not
charge the affected customers any transfer fee or other fee to obtain
service, except for the following:
(A) the prospective retail public utility's usual and
customary rates for monthly service; or
(B) interim rates set by the commission, if applicable.
(4) If the commission orders the prospective retail
public utility to provide service to the entire service area of the
current CCN holder, the commission shall not order compensation to
the current CCN holder, the commission shall not make a determination
of whether property is rendered useless or valueless under subsection
(n) of this section, and the prospective retail public utility shall
not file a petition under subsection (o) of this section.
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