Current through Reg. 50, No. 13; March 28, 2025
(a) Application.
This section is applicable to electric utilities, transmission and distribution
utilities, power generation companies, retail electric providers, municipally
owned utilities, electric cooperatives, the independent system operator, and
any other person regulated under the Public Utility Regulatory Act (PURA)
Subtitle B, collectively referred to as "market participants," and shall refer
to the definitions provided in PURA §11.003 and §31.002.
(b) Authority to issue order. The commission
or the executive director, who has been authorized pursuant to subsection (c)
of this section, may issue a cease and desist order if the commission or
executive director determines that the alleged conduct of a market participant
meets one or more of the following conditions:
(1) The conduct poses a threat to continuous
and adequate electric service;
(2)
The conduct is hazardous;
(3) The
conduct creates an immediate danger to the public safety; or
(4) The conduct is causing or can be
reasonably expected to cause an immediate injury to a customer of electric
services and that the injury is incapable of being repaired or rectified by
monetary compensation.
(c) Delegation of authority. The commission
may delegate the authority to issue a cease and desist order to the executive
director. The authority to issue a cease and desist order shall be delegated at
an open meeting and may remain in effect for up to two years.
(d) Procedure. The commission must provide
notice and opportunity for a hearing before issuing a cease and desist order if
such notice is practicable. If such notice is not practicable, the commission
may issue a cease and desist order without providing notice and opportunity for
a hearing.
(1) If notice and opportunity for
a hearing is practicable. If notice and opportunity for a hearing is
practicable, the commission shall follow these procedures:
(A) Notice and Opportunity for Hearing. The
commission shall provide notice and opportunity for hearing pursuant to Chapter
2001, Texas Government Code. The notice shall include a description of the
violation(s) of PURA or this chapter that the market participant's conduct is
alleged to violate and specific facts that support each allegation as
reasonably believed by commission staff and a proposed order that contains a
statement of the charges. Notice of a proposed order shall be given not later
than the 10th day before the date set for a hearing.
(B) Hearing. A hearing on a cease and desist
order is a contested case under Chapter 2001, Texas Government Code. The
commission may hold a hearing on a cease and desist order or may refer the case
to be heard by the State Office of Administrative Hearings.
(C) Service of Cease and Desist Order. If,
after notice and opportunity for a hearing, the commission issues a cease and
desist order, then the commission shall serve the cease and desist order by
registered or certified mail, return receipt requested, to the market
participant's last known address. A cease and desist order is effective upon
the earlier of receipt of actual notice or three days after the order is
mailed.
(D) Content of Cease and
Desist Order. A cease and desist order shall be served upon the market
participant affected by that order and shall:
(i) Contain a statement of the charges and a
description of the alleged violation(s) of PURA or this chapter that the market
participant's conduct has been found to have violated and specific facts that
support each violation; and
(ii)
Require the market participant immediately to cease and desist from the acts,
methods, or practices stated in the order.
(2) Notice and opportunity for a hearing not
practicable. If notice and opportunity for a hearing is not practicable, the
commission shall follow these procedures:
(A)
Contents of order. A cease and desist order shall be served upon the market
participant affected by that order and shall:
(i) Contain a statement of the charges and a
description of the alleged violation(s) of PURA or this chapter that the market
participant's conduct has been found to have violated and specific facts that
support each violation as reasonably believed by commission staff;
(ii) Require the market participant
immediately to cease and desist from the acts, methods, or practices stated in
the order;
(iii) Notify the market
participant that a request for a hearing to affirm, modify, or set aside the
order must be submitted not later than the 30th day after the date the market
participant receives the order; and
(iv) Contain a statement indicating that
notice and an opportunity for a hearing was not practicable and state the
specific reasons why notice and an opportunity for a hearing was not
practicable.
(B)
Service. Chapter 2001, Texas Government Code, does not apply to the issuance of
a cease and desist order issued by the commission when notice and an
opportunity for a hearing is not practicable.
(i) The commission shall serve the cease and
desist order by registered or certified mail, return receipt requested, to the
market participant's last known address.
(ii) A cease and desist order is effective
upon the earlier of receipt of actual notice or three days after the order is
mailed.
(C) Hearing
Requested. The market participant affected by the cease and desist order may
request a hearing to affirm, modify, or set aside the order. A request must be
submitted not later than the 30th day after the date the market participant
receives the order.
(i) If the market
participant affected by a cease and desist order requests a hearing, the
commission shall set the hearing date not later than the 10th day after the
date the commission receives a request for a hearing or agreed to by the market
participant and the commission.
(I) A hearing
conducted after the issuance of a cease and desist order is a contested case
under Chapter 2001, Texas Government Code. The commission may hold a hearing on
a cease and desist order or may refer the case to be heard by the State Office
of Administrative Hearings.
(II)
Pending a hearing on a cease and desist order, the cease and desist order
continues in effect unless stayed by the commission.
(III) At or following the hearing, the
commission shall wholly or partly affirm, modify, or set aside the cease and
desist order.
(ii) If
the market participant affected by a cease and desist order does not request a
hearing and the commission does not hold a hearing on the order, the order is
affirmed without further action by the commission.