Tex. Utils. Code Section 104.003
Just and Reasonable Rates

(a)

The regulatory authority shall ensure that each rate a gas utility or two or more gas utilities jointly make, demand, or receive is just and reasonable. A rate may not be unreasonably preferential, prejudicial, or discriminatory but must be sufficient, equitable, and consistent in application to each class of consumer. In establishing a gas utility’s rates, the railroad commission may treat as a single class two or more municipalities that a gas utility serves if the commission considers that treatment to be appropriate.

(b)

A rate for a pipeline-to-pipeline transaction or to a transportation, industrial, or similar large volume contract customer is considered to be just and reasonable and otherwise to comply with this section and shall be approved by the regulatory authority if:

(1)

neither the gas utility nor the customer had an unfair advantage during the negotiations;

(2)

the rate is substantially the same as the rate between the gas utility and at least two of those customers under the same or similar conditions of service; or

(3)

competition does or did exist with another gas utility, another supplier of natural gas, or a supplier of an alternative form of energy.

(c)

Subsection (b) does not apply:

(1)

if a complaint is filed with the railroad commission by a transmission pipeline purchaser of gas sold or transported under the pipeline-to-pipeline or transportation rate; or

(2)

to a direct sale for resale to a gas distribution utility at a city gate.

(d)

The reasonableness of gas purchase costs included in a city gate rate proposed to be charged for a sale for resale to a gas distribution utility at a city gate may be reviewed at a city gate rate proceeding even though the costs have been previously approved as a rate for other parties under Subsection (b).

(e)

Subsection (b)(1) does not apply to a rate charged or offered to be charged to an affiliated pipeline utility.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Source: Section 104.003 — Just and Reasonable Rates, https://statutes.­capitol.­texas.­gov/Docs/UT/htm/UT.­104.­htm#104.­003 (accessed Jun. 5, 2024).

104.001
Authorization to Establish and Regulate Rates 104.002
Compliance with Subtitle 104.003
Just and Reasonable Rates 104.004
Unreasonable Preference or Prejudice Prohibited 104.005
Equality of Rates and Services 104.006
Rates for Area Not in Municipality 104.007
Discrimination and Restriction on Competition 104.008
Burden of Proof 104.051
Establishing Overall Revenues 104.052
Establishing Fair Rate of Return 104.053
Components of Adjusted Value of Invested Capital 104.054
Depreciation, Amortization, and Depletion 104.055
Net Income 104.056
Treatment of Certain Tax Benefits 104.057
Consideration of Certain Expenses 104.058
Consideration of Profit or Loss from Sale or Lease of Merchandise 104.059
Pension and Other Postemployment Benefits 104.060
Consideration of Compensation and Benefit Expenses 104.101
Definition 104.102
Statement of Intent to Increase Rates 104.103
Notice of Intent to Increase Rates 104.104
Early Effective Date of Rate Increase 104.105
Determination of Propriety of Rate Change 104.106
Preference to Hearing 104.107
Rate Suspension 104.108
Temporary Rates 104.109
Bonded Rates 104.110
Establishment of Final Rates 104.111
Approval of Decrease in Rates 104.112
Surcharge to Recover Relocation Costs 104.151
Unreasonable or Violative Existing Rates 104.152
Investigating Costs of Obtaining Service from Another Source 104.201
Transportation Rates Between Gas Utility or Municipally Owned Utility and State Agency 104.202
Excluded Expenses 104.203
Payment in Lieu of Tax 104.251
General Standard 104.252
Authority of Regulatory Authority Concerning Standards 104.253
Rule or Standard 104.254
Service 104.255
Billing 104.256
Examination and Test of Instrument or Equipment 104.257
Inspection for Consumer 104.258
Disconnection of Gas Service 104.301
Interim Adjustment for Changes in Investment 104.351
Definitions 104.352
Notice of Disconnection to Municipalities for Nonsubmetered Master Metered Multifamily Properties 104.353
Additional Safeguards 104.361
Purpose 104.362
Definitions 104.363
Extraordinary Costs 104.364
Jurisdiction and Powers of Railroad Commission and Other Regulatory Authorities 104.365
Regulatory Asset Determination 104.366
Financing Orders and Issuance of Customer Rate Relief Bonds 104.367
Property Rights 104.368
Property Interest Not Subject to Setoff, Counterclaim, Surcharge, or Defense 104.369
Customer Rate Relief Charges Nonbypassable 104.370
True-up Mechanism 104.371
Security Interests 104.372
Bond Proceeds in Trust 104.373
Repayment of Customer Rate Relief Bonds 104.374
Pledge of State 104.375
Tax Exemption 104.376
Recoverable Tax Expense 104.377
Issuing Financing Entity or Financing Party Not Public Utility 104.378
No Personal Liability 104.380
Severability 104.401
Definitions 104.402
Energy Conservation Program Authority 104.403
Energy Conservation Program Cost Recovery 104.2545
Required Service to Public Retail Customer 104.2551
Electronic Billing
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 104.003’s source at texas​.gov