Study of the impacts of regulations affecting the acceptance of Integrated Community Energy Systems: public utility, energy facility siting and municipal franchising regulatory programs in Texas. Preliminary background report

Abstract

The authority to regulate public utilities in Texas is generally vested in the Public Utilities Commission. The Commission is comprised of three members appointed by the governor, with the advice of at least two-thirds of the senate, for a six-year term. Prior to the passage of the Texas Public Utility Regulatory Act (PURA) in 1975, the power to regulate public utilities was vested almost exclusively in municipalities. Under PURA, municipalities retain exclusive original jurisdiction over all electric, water, and sewer utilities within the municipality. PURA provides that all regulations pertaining to public utilities promulgated by local regulatory agencies remain in effect unless they are superceded by Commission rules. The municipality's governing body is required to exercise its regulatory authority under rules and standards consistent with those promulgated by the Commission. The Commission has exclusive appellate jurisdiction to review orders and ordinances of regulatory municipalities. Public utility regulatory statutes, energy facility siting programs, and municipal franchising authority are examined to identify how they may impact on the ability of an organization, whether or not it be a regulated utility, to construct and operate an ICES.