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Texas Utilities Code - Section 102.051. Report Of Certain Transactions; Railroad Commission Consideration

Legal Research Home > Texas Lawyer > Utilities Code > Texas Utilities Code - Section 102.051. Report Of Certain Transactions; Railroad Commission Consideration

§ 102.051. REPORT OF CERTAIN TRANSACTIONS;  RAILROAD 
COMMISSION CONSIDERATION.  (a) Not later than the 60th day after 
the date the transaction takes effect, a gas utility shall report to 
the railroad commission:
		(1)  a sale, acquisition, or lease of a plant as an 
operating unit or system in this state for a total consideration of 
more than $1 million;  or
		(2)  a merger or consolidation with another gas utility 
operating in this state.
	(b)  On the filing of a report with the railroad commission, 
the railroad commission shall investigate the transaction 
described by Subsection (a), with or without a public hearing, to 
determine whether the action is consistent with the public 
interest.  In reaching its determination, the railroad commission 
shall consider the reasonable value of the property, facilities, or 
securities to be acquired, disposed of, merged, or consolidated.
	(c)  If the railroad commission finds that a transaction is 
not in the public interest, the railroad commission shall take the 
effect of the transaction into consideration in ratemaking 
proceedings and disallow the effect of the transaction if the 
transaction will unreasonably affect rates or service.
	(d)  This section does not apply to:                                           
		(1)  the purchase of a unit of property for 
replacement;  or                
		(2)  an addition to the facilities of a gas utility by 
construction.        

Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.  Amended 
by Acts 1999, 76th Leg., ch. 32, § 1, eff. Sept. 1, 1999;  Acts 
2005, 79th Leg., ch. 1000, § 1, eff. Sept. 1, 2005.

Last modified: August 10, 2007