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Texas Utilities Code - Section 163.063. Rates And Charges

Legal Research Home > Texas Lawyer > Utilities Code > Texas Utilities Code - Section 163.063. Rates And Charges

§ 163.063. RATES AND CHARGES.  (a) An agency may 
establish and maintain rates and charges for electric power and 
energy the agency delivers, transmits, or exchanges.  The rates and 
charges must:
		(1)  be reasonable and in accordance with prudent 
utility practices;        
		(2)  be based on periodic cost of service studies and 
subject to modification, unless such a basis for rates and charges 
is waived by the purchaser by contract;  and
		(3)  be developed to recover the agency's cost of 
producing and transmitting the electric power and energy, as 
applicable, which cost must include the amortization of capital 
investment.
	(b)  Notwithstanding Subsection (a), this state reserves its 
power to regulate an agency's rates and charges for electric energy 
supplied by the agency's facilities.
	(c)  Until obligations issued under this subchapter have 
been paid and discharged, with all interest on the obligations, 
interest on unpaid interest installments on the obligations, and 
other connected and incurred costs or expenses, this state pledges 
to and agrees with the purchasers and successive holders of the 
obligations that it will not:
		(1)  limit or alter the power of an agency to establish 
and collect rates and charges under this section sufficient to pay:
			(A)  necessary operational and maintenance 
expenses;                       
			(B)  interest and principal on obligations issued 
by the agency;           
			(C)  sinking funds and reserve fund payments;  and                           
			(D)  other charges necessary to fulfill the terms 
of any agreement;  or    
		(2)  take any action that will impair the rights or 
remedies of the holders of the obligations.

Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.                    

Last modified: August 10, 2007