Texas Public Utility Commission:

An Inventory of Records at the Texas State Archives, 1966, 1973-2000 (bulk 1979-1991)

Agency History

The Texas Public Utility Commission was created in 1975 by the Public Utility Regulatory Act, House Bill 819, 64th Legislature, Regular Session. The Commission assumed its regulatory duties on January 1, 1976. The Commission is composed of three salaried members, appointed by the governor with concurrence of the Senate to six-year overlapping terms. The governor designates the chair. For two years prior to their appointment the commissioners may not have served as officers, directors, owners, employees, partners, or legal representatives of any public utility or affiliated interest, and may not have owned stocks or bonds worth $10,000 or more in a public utility, affiliated interest, or direct competitor of a public utility.

The Public Utility Commission (PUC) regulates telecommunication and electric services in Texas. It has original jurisdiction over electric utilities that operate in unincorporated areas of Texas, local exchange telephone companies, and several river authorities in the state. In September 1995, electric and telephone cooperatives received the option of requesting that their rates be deregulated and some have done so. The generating facilities of the Lower Colorado River Authority were also removed from PUC jurisdiction.

The PUC has appellate jurisdiction over investor-owned electric utilities operating within Texas cities and over municipal systems. The PUC regulates local exchange telephone carriers but does not have jurisdiction over the rates of long-distance telephone carriers. The PUC has limited jurisdiction over telephone operator services and pay phone providers, automatic dialing/announcing devices, and telephone solicitors. Initially, the PUC also had jurisdiction over water and sewer utilities. These latter duties were transferred to the Texas Water Commission in 1986.

The primary role of the Commissioners is to serve in a judicial capacity in utility rate cases and other proceedings, including considering requests for notice of intent, requests for certificates of operating authority (formerly certificates of convenience and necessity), and requests for deregulation. The Commissioners articulate policy through the issuance of final orders and rules. The Commissioners hold meetings once or twice a month to consider cases, adopt agency rules, make legislative recommendations, develop long-range agency goals and plans, and set regulatory policy. The Commission has the authority to make and enforce rules necessary to carry out its functions.

Additional duties of the Commission include monitoring the management of all public utilities, conducting management audits of utilities under its jurisdiction, investigating property sales and mergers by utilities, registering telecommunication providers, encouraging use of alternative energy resources, and managing of the Universal Service Fund. This fund was created by the 70th Legislature in 1987 (Senate Bill 444, Regular Session) to fund programs that assist local exchange companies in providing basic local exchange service at reasonable rates in high-cost rural areas. Legislation in 1997 changed the name to the Texas Universal Service Fund (75th Legislature, Senate Bill 1751, Regular Session).

In 1995, the 74th Legislature passed legislation (House Bill 2128 and Senate Bill 373) that significantly changed the focus of the Public Utility Commission and resulted in a major reorganization of the agency. The legislation provided an option for the deregulation of rates for electric and telephone utility cooperatives, and also mandated that the Lower Colorado River Authority would no longer be regulated by the PUC with respect to its electric generating and transmission facilities.

The Texas Telecommunications Act, or House Bill 2128, directed the PUC to advance the development of competition in the telephone service at the local level. The Commission must protect the public interest while fostering competition and advancement in telecommunications. A key issue in this bill was the opening of the local telecommunications market to competition with the issuing of two types of certificates to new telecommunications companies. The bill brought forth changes in rate regulation of companies and defined policy goals for the development of an advanced telecommunications infrastructure in Texas.

Senate Bill 373 affected electric utility regulation. The bill included significant changes to promote the development of competition among wholesale providers of electricity. The Commission is mandated to prepare a statewide integrated resource plan presenting demand projections, resource needs, and solicitation plans. The bill also changed and clarified matters regarding the regulatory authority of municipalities.

In 1997, the Comptroller's Office issued a performance review report on the PUC calling for expanded customer education. The report also directed the PUC to help utility customers make informed decisions about their utility choices. In response, the PUC created a new division, the Office of Customer Protection.

In 1999, the 76th Legislature passed legislation (Senate Bill 7) that restructured the electric utility industry and mandated retail electric choice for customers on January 1, 2002. It also passed legislation that further deregulated the telecommunications industry and reduced access charges (House Bill 777) as well as legislation that added protection for telecommunications customers (Senate Bill 560).

The agency underwent a major reorganization in 1995, going from seven divisions (Administrative Division, Electric Division, Telephone Division, General Counsel Division, Hearings Division, Information Systems and Services Division, and Operations Review Division) -- to three offices (Office of Policy Development, Office of Regulatory Affairs, and the Executive Office). The latter two offices each contain several divisions. The Hearings Division of the Commission was transferred to the State Office of Administrative Hearings as mandated by Senate Bill 373, 74th Legislature, 1995. Further reorganization in 1997 resulted in the creation of a new office, the Office of Consumer Protection. As of 1999, the Public Utility Commission is composed of the Office of Policy Development, the Office of Regulatory Affairs, the Office of Consumer Protection, and the Administrative Division.

Office of Policy Development

The Office of Policy Development functions as the policy advisor of the agency. This office advises the commisioners on policy issues, manages strategic analysis and planning for regulatory issues affecting telephone and electric matters, organizes public hearings in rulemaking projects, prepares preliminary orders in some key protested cases that identify issues of significant policy interest, and prepares final orders in accord with Commission vote. The office also coordinates the processing of cases sent to the State Office of Administrative Hearings.

Office of Regulatory Affairs

The Office of Regulatory Affairs (ORA) has four divisions: Legal, Financial Review, Electric Utility Analysis and Telecommunications Analysis. The ORA is responsible for recording protested cases that are sent to the State Office of Administrative Hearings. The office also reviews unprotested filings, and develops and prepares for publication amendments to the Commission's Substantive and Procedural rules. It also monitors the quality of service that utilities are providing to consumers, reviews transmission line applications, assists with the assignment of area codes, and evaluates certificates of operating authority.

Office of Consumer Protection

The Office of Consumer Protection educates and informs consumers of their rights and enforces PUC rules and statutes. It resolves complaints from utility customers, notifies utilities of violations and penalties, and collects refunds for customers resulting from penalties against utility companies.

Administrative Division

The Administrative Division, headed by the Executive Director, has four sections: Human Resources, Fiscal Services and Purchasing, the Mail Room, and Information Resources, which includes the Library, Central Records, and Computer Support Services.

(Vernon's Ann. Civ. St., Article 1445c-0)

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Scope and Contents of the Records

Records of the Texas Public Utility Commission consist of meeting transcripts, correspondence, reports and papers prepared by Commissioners and staff, earnings reports of utility companies, press releases, policy manuals, speeches, and organization charts. Dates covered are 1966, 1973-2000 (bulk 1979-1991). The Public Utility Commission regulates telecommunication and electric services in Texas. Summary documentation of the agency from its earliest days to the present can be found in the meeting transcripts and press releases. The administrative correspondence of the Commissioners discusses the major functions of the Commission, including regulation of electric and telecommunication utilities, energy research and alternative energies, and hearings. The correspondence also deals with proposed rules, legislation, and litigation, and reflects the Commission's interaction with state and federal agencies, utility companies and associations, and the general public. Additional evidence of the Commissioners' direct involvement in the agency operations can be found in the meeting transcripts. The policies and procedures manual documents executive orders and policies, and the procedures for implementing them. Speeches, papers, and reports presented by Commissioners and staff discuss the PUC and/or various aspects of the utilities industry. Earnings reports of electric and telephone utility companies provide information about the organization and operations of the utility companies regulated by the PUC.

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Restrictions

Restrictions on Access

None.

Restrictions on Use

None.

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Related Material

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Administrative Information

Preferred Citation

(Identify the item and cite the series), Records, Texas Public Utility Commission. Archives and Information Services Division, Texas State Library and Archives Commission.

Accession Information

Accession numbers: 1996/099, 1996/113, 1996/114, 1996/131, 1997/046, 1998/079, 1998/090, 1998/123, 1999/128, 1999/135, 1999/173, 1999/177, 1999/186, 1999/189, 2000/061, 2000/064, 2000/074, 2000/091, 2000/106, 2000/107, 2000/121, 2000/123, 2000/124, 2000/125, 2000/146, 2000/151, 2000/163, 2000/176, and 2001/124

These records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by Texas Public Utility Commission on April 26, May 30, August 5, and November 15, 1996; February 17, March 9, and May 20, 1998; March 35, April 22, June 21 and 28, July 13 and 22, November 2 and 8, and December 6, 1999; February 9 and 24, March 1 and 3, May 11, June 14, and July 24, 2000; and May 2, 2001.

Processing Information

Laura K. Saegert, March, August 1998; May 2001

Accruals

Transcripts and agenda of open meetings and press releases are generally sent yearly to the Archives.

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Detailed Description of the Records