Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 24 - SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS
Subchapter K - ENFORCEMENT, SUPERVISION, AND RECEIVERSHIP
Section 24.353 - Supervision of Certain Utilities
Universal Citation: 16 TX Admin Code § 24.353
Current through Reg. 50, No. 13; March 28, 2025
(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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