Current through Reg. 50, No. 13; March 28, 2025
(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.