CHAPTER 152. RIVER AUTHORITIES ENGAGED IN DISTRIBUTION AND SALE OF ELECTRIC ENERGY

State Codes and Statutes

Statutes > Texas > Water-code > Title-5-special-law-districts > Chapter-152-river-authorities-engaged-in-distribution-and-sale-of-electric-energy

WATER CODE

TITLE 5. SPECIAL LAW DISTRICTS

CHAPTER 152. RIVER AUTHORITIES ENGAGED IN DISTRIBUTION AND SALE

OF ELECTRIC ENERGY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 152.001. APPLICABILITY. (a) This chapter applies only to

a river authority that, directly or through a corporation created

under Section 152.051, is engaged in the distribution and sale of

electric energy to the public.

(b) This chapter does not apply to any litigation instituted

before May 28, 1981, that questions the legality of an act taken

or a proceeding conducted by a river authority before that date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 24, eff.

Sept. 1, 1999.

Sec. 152.002. APPLICATION OF OTHER LAW. (a) Unless this

chapter expressly provides otherwise, a law that limits,

restricts, or imposes an additional requirement on a matter

authorized by this chapter does not apply to an action or

proceeding under this chapter.

(b) Chapters 1202 and 1204, Government Code, apply to revenue

bonds, notes, or other obligations issued under this chapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

SUBCHAPTER B. NONPROFIT CORPORATION ACTING ON BEHALF OF RIVER

AUTHORITY

Sec. 152.051. CREATION OF NONPROFIT CORPORATION. (a) The board

of directors of a river authority by order may create one or more

nonprofit corporations to act on behalf of the river authority as

its authority and instrumentality.

(b) The Texas Non-Profit Corporation Act (Article 1396-1.01 et

seq., Vernon's Texas Civil Statutes) applies to a corporation

created under this section.

501.058, 501.062, 501.063, 501.064, except as that section

applies to amending a corporation's bylaws, 501.065, 501.066,

501.068-501.072, 501.401-501.406, and Subchapters G and H,

Chapter 501, Local Government Code, apply to a corporation

created under this section, except that in those sections:

(1) a reference to the Development Corporation Act (Subtitle C1,

Title 12, Local Government Code) includes this chapter; and

(2) a reference to a unit includes a river authority to which

this chapter applies.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.75, eff. April 1, 2009.

Sec. 152.052. POWERS OF NONPROFIT CORPORATION. (a) A

corporation created under Section 152.051 may exercise any power

of the creating river authority except a power relating to solid

waste management activities or activities as an exempt wholesale

generator, but including the authority to acquire, develop,

operate, and sell fuel, fuel reserves, and mineral interests. In

this subsection, "exempt wholesale generator" has the meaning

assigned by Section 32(a), Public Utility Holding Company Act of

1935 (15 U.S.C. Section 79z-5a(a)).

(b) When exercising a power under this chapter, a corporation

created under Section 152.051 and the board of directors of the

corporation have the same powers as the creating river authority

and the authority's board, including the power to issue bonds or

other obligations or otherwise borrow money on behalf of the

river authority to accomplish any purpose of the corporation.

directors of a corporation created under Section 152.051 may

exercise the powers granted to the governing body of:

(1) an issuer under Chapters 1201 and 1371, Government Code; and

(2) a public agency under Chapter 1204, Government Code.

(d) A corporation created under Section 152.051 and the creating

river authority may:

(1) share officers, directors, employees, equipment, and

facilities; and

(2) provide goods or services to each other at cost without the

requirement of competitive bidding.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 25, eff.

Sept. 1, 1999.

Sec. 152.053. BOARD OF DIRECTORS. (a) The board of directors

of the river authority shall appoint the directors of a

corporation created under Section 152.051.

(b) A member of the river authority's board of directors may

serve as a member of the corporation's board of directors.

river authority's board of directors.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.054. SUPERVISION BY BOARD OF DIRECTORS OF RIVER

AUTHORITY. (a) The budget of a corporation created under

Section 152.051 must be approved by the board of directors of the

river authority.

(b) The activities of the corporation are subject to the

continuing review and supervision of the river authority's board

of directors.

chapter by a corporation created under Section 152.051 must be

approved by the board of directors of the river authority.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.055. LIABILITY OF CORPORATE PROPERTY FOR TAXES AND

SPECIAL ASSESSMENTS. The property of a corporation created under

Section 152.051 is not exempt from taxes or special assessments

imposed by this state or a municipality or other political

subdivision of this state.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.056. TRANSFER OF RIVER AUTHORITY ASSETS TO CORPORATION.

Notwithstanding any other law, the board of directors of a river

authority may sell, lease, loan, or otherwise transfer some, all,

or substantially all of the electric generation property of the

river authority to a corporation created under Section 152.051.

The property transfer must be made under terms approved by the

board of directors of the river authority.

Added by Acts 1999, 76th Leg., ch. 1064, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.057. APPLICATION OF OTHER LAW TO RIVER AUTHORITY.

Reference in any other law to a river authority that is engaged

in the distribution and sale of electric energy to the public

includes a river authority that has created a corporation under

Section 152.051 that is engaged in the distribution and sale of

electric energy to the public.

Added by Acts 1999, 76th Leg., ch. 1064, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.058. GUARANTEE AND OTHER CREDIT SUPPORT RELATING TO

PUBLIC SECURITIES AND OTHER OBLIGATIONS. (a) In this section,

"public security" has the meaning assigned by Section 1202.001,

Government Code.

(b) Under Section 52-a, Article III, Texas Constitution, a river

authority that has created a corporation under Section 152.051

may guarantee or otherwise provide credit support for any public

security or other obligation or contract of that corporation if

the board of directors of the river authority determines that the

guarantee or other credit agreement:

(1) is beneficial to a public purpose of the river authority;

and

(2) is for the public purpose of:

(A) the development and diversification of the economy of the

state;

(B) the elimination of unemployment or underemployment in the

state; or

authority under Subsection (b) is conclusive.

(d) A guarantee or other credit agreement authorized by

Subsection (b) may provide for the guarantee of or other credit

support for public securities or other obligations or contracts

of the corporation, all or a portion of which may be authorized,

executed, and delivered in the future.

(e) Chapter 1202, Government Code, applies to a guarantee or

other credit agreement under this section as if the guarantee or

other credit agreement were a public security.

Added by Acts 2001, 77th Leg., ch. 430, Sec. 1, eff. Sept. 1,

2001.

SUBCHAPTER C. ENERGY OR WATER CONSERVATION PROGRAMS

Sec. 152.101. AUTHORITY TO PARTICIPATE IN ENERGY OR WATER

CONSERVATION PROGRAM. (a) A river authority may undertake,

sponsor, initiate, coordinate, or otherwise participate in a

program intended to conserve electric energy or water, including

a program that:

(1) encourages the more efficient use of electric energy or

water;

(2) reduces the total use of electric energy or water; or

(3) reduces maximum total electric generating capacity

requirements through load management techniques.

(b) A determination by the board of directors of a river

authority that a program described by Subsection (a) is intended

and expected to accomplish a purpose described by that subsection

is conclusive with respect to whether the program serves the

stated purpose.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.102. PARTICIPATION IN CONSERVATION PROGRAM BY PERSON

OTHER THAN RIVER AUTHORITY. (a) A conservation program may

involve a grant or loan of money, services, or equipment to a

person or entity other than the river authority engaged in the

program.

(b) Any person, including an individual or any public or private

entity, may enter into an agreement with a river authority with

respect to a conservation program.

conservation program shall comply with the requirements of the

program.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.103. PUBLIC PURPOSE AND GOVERNMENTAL FUNCTION. Each

conservation program is a public purpose and governmental

function of a river authority to conserve the natural resources

of this state, including the air and the waters of the rivers and

streams of this state, electricity, and fuels used in the

generation of electricity, in accordance with Section 59(a),

Article XVI, Texas Constitution.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

SUBCHAPTER D. ECONOMIC DEVELOPMENT PROGRAMS

Sec. 152.151. DEFINITION. In this subchapter, "economic

development program":

(1) includes a program designed to:

(A) encourage economic diversification;

(B) contribute to the health and development of a community to

improve the attractiveness of the community to public and private

enterprises; or

the development of viable communities and economic growth,

including services related to education, transportation, public

safety, recreation, health care, training, community planning, or

employment; and

(2) does not include the promotion of retail wheeling of

electric power and energy.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.152. APPLICABILITY. This subchapter applies only to a

river authority that generates at least an annual average of 55

million kilowatt hours of electric energy.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.153. AUTHORITY FOR ECONOMIC DEVELOPMENT PROGRAM. (a)

A river authority may sponsor and participate in an economic

development program intended to strengthen the economic base and

further the economic development of this state.

(b) A determination by the board of directors of a river

authority that an economic development program is intended and

expected to accomplish the program's stated purposes is

conclusive with respect to whether the program serves the

purposes of this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.154. PROGRAM AREA. An economic development program

must be within:

(1) the territorial boundaries of the sponsoring or

participating river authority; or

(2) the river authority's electric or water service area.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.155. ESTABLISHMENT OF PROGRAM. (a) An economic

development program may be established only by formal action of

the board of directors of a river authority.

(b) The board of directors shall:

(1) establish the goals of the program;

(2) impose requirements on persons participating in or receiving

a benefit from the program; and

(3) provide restrictions, procedures, and budget limits the

board of directors determines are necessary to ensure that the

governmental purposes of this subchapter and the program are

achieved.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.156. PARTICIPATION IN PROGRAM BY PERSON OTHER THAN

RIVER AUTHORITY. An economic development program may involve the

granting or lending of money, services, or property to a person

engaged in an economic development activity.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 27, eff.

Sept. 1, 1999.

Sec. 152.157. STAFFING AND FUNDING OF PROGRAM. (a) A river

authority may employ staff and spend its resources, other than

money received from an ad valorem tax or a general appropriation,

to further an economic development program.

(b) A river authority may apply for and receive money, grants,

or other assistance from any source to implement an economic

development program.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.158. AGREEMENT. A river authority and any public or

private person may enter into an agreement with respect to an

economic development program.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.159. GUIDELINES FOR ASSISTANCE TO PUBLIC FIRE-FIGHTING

ORGANIZATIONS. A river authority that proposes to provide

scholarships, grants, loans, or financial assistance to a public

fire-fighting organization shall adopt guidelines for

determining:

(1) eligibility for the assistance;

(2) the amount of any loan, grant, or other assistance the river

authority may provide; and

(3) the types of equipment, facilities, education, or training

for which the assistance may be used.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.160. RECEIPT OF ELECTRIC SERVICE AS CONDITION FOR

PARTICIPATION IN PROGRAM. A river authority may not condition

participation in or the receipt of a benefit from an economic

development program on the receipt of electric service from the

authority.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.161. LIMITATIONS ON USE OF PROGRAM. (a) A river

authority may not use an economic development program to:

(1) promote fuel switching or the substitution of electric power

for another fuel or energy source; or

(2) provide an economic or other incentive to use electric power

to preferentially market the use of electric power over another

fuel or energy source.

(b) This section does not limit a power granted to a river

authority by other law.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

SUBCHAPTER E. DEBT OBLIGATIONS OF RIVER AUTHORITY

Sec. 152.201. AUTHORITY TO ISSUE OBLIGATIONS. (a) A river

authority may issue revenue bonds, notes, or other obligations

for a purpose authorized by:

(1) this chapter; or

(2) another law, if the purpose relates to the generation,

transmission, or distribution of electricity.

(b) This chapter constitutes full authority for a river

authority to issue revenue bonds and other obligations without

reference to any other law.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 28, eff.

Sept. 1, 1999.

Sec. 152.202. SALE OR EXCHANGE OF OBLIGATIONS. Revenue bonds,

notes, or other obligations issued under this subchapter may be:

(1) sold for cash at a public or private sale;

(2) issued on terms determined by the board of directors of the

river authority in exchange for property or an interest in

property the board of directors considers necessary or convenient

for a purpose described by Section 152.201;

(3) issued in exchange for other matured or unmatured

obligations of the river authority in the same principal amounts;

(4) sold for cash in the amount equal to the principal amount of

the obligations to:

(A) this state or an agency of this state;

(B) the United States; or

or the United States.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.203. INDEPENDENT APPRAISAL. (a) Before a river

authority may acquire property under Section 152.202(2) through

the exchange of revenue bonds, notes, or other obligations, the

authority must obtain a written appraisal of the property by an

independent appraiser certifying that the property has a value

equal to or greater than the par value of the bonds, notes, or

other obligations.

(b) The river authority shall:

(1) maintain the appraisal on file as a public record; and

(2) file a copy of the appraisal with the Texas Commission on

Environmental Quality.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 785, Sec. 55, eff.

Sept. 1, 2003.

SUBCHAPTER F. HEDGING TRANSACTIONS

Sec. 152.251. DEFINITION. In this subchapter, "hedging" means

buying or selling crude oil, fuel oil, natural gas, or electric

energy futures or options, or similar contracts on those

commodity futures, as a protection against loss due to price

fluctuations.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.252. AUTHORITY TO ENTER INTO HEDGING CONTRACT. (a) A

river authority or a corporation created under Section 152.051

may enter into a hedging contract and related security and

insurance agreements.

(b) A hedging transaction must comply with the regulations of

the Commodity Futures Trading Commission and the Securities and

Exchange Commission.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.253. PAYMENT CONSIDERED FUEL EXPENSE. A payment by a

river authority or a corporation created under Section 152.051

under a hedging contract or related agreement in relation to fuel

supplies or fuel reserves is a fuel expense. The authority or

corporation may credit any amount it receives under the contract

or agreement against fuel expenses.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.254. INVESTMENT OF MONEY IN HEDGING TRANSACTION. (a)

Except as provided by Subsection (b), the board of directors of a

river authority may determine and designate the amount of money

to be invested in a hedging transaction.

(b) The board of directors of the river authority by formal

policy shall regulate the investment of money in hedging

contracts. An investment may be made only for hedging purposes.

The policy must provide restrictions and procedures for making an

investment that a person of ordinary prudence, discretion, and

intelligence, exercising the judgment and care under the

circumstances then prevailing, would follow in the management of

the person's own affairs, not in regard to speculation but in

regard to the permanent disposition of the person's money,

considering:

(1) the probable income; and

(2) the probable safety of the person's capital.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

Sec. 152.255. RECOVERABILITY OF COSTS FROM RATEPAYERS. This

subchapter does not limit the authority of the Public Utility

Commission of Texas to determine the recoverability of costs from

ratepayers.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1,

1999.

SUBCHAPTER G. ELECTRIC TRANSMISSION SERVICES AND FACILITIES OF

RIVER AUTHORITY

Sec. 152.301. ELECTRIC TRANSMISSION SERVICES AND FACILITIES.

Notwithstanding any other law, a river authority may:

(1) provide transmission services, as defined by the Utilities

Code or the Public Utility Commission of Texas, on a regional

basis to any eligible transmission customer at any location

within or outside the boundaries of the river authority; and

(2) acquire, including by lease-purchase, lease from or to any

person, finance, construct, rebuild, operate, or sell electric

transmission facilities at any location within or outside the

boundaries of the river authority.

Added by Acts 1999, 76th Leg., ch. 1064, Sec. 29, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.108(a),

eff. Sept. 1, 2001.

Sec. 152.302. LIMITATION ON ELECTRIC TRANSMISSION FACILITIES.

This subchapter does not:

(1) authorize a river authority to construct electric

transmission facilities for an ultimate consumer of electricity

to enable that consumer to bypass the transmission or

distribution facilities of its existing provider; or

(2) relieve a river authority from an obligation to comply with

each provision of the Utilities Code concerning a certificate of

convenience and necessity for a transmission facility.

Added by Acts 1999, 76th Leg., ch. 1064, Sec. 29, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.108(a),

eff. Sept. 1, 2001.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!