TITLE economic-regulation

Part II. Public Utility Commission of Texas

Chapter 23. Substantive Rules

Subchapter C. Rates

16 TAC §23.22

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Public Utility Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Public Utility Commission of Texas (commission) proposes the repeal of §23.22 relating to Energy Efficiency Plan. This section requires that electric utilities file an energy efficiency plan with the commission providing information on the utilities conservation programs. Project Number 17709 has been assigned to this proceeding.

The Appropriations Act of 1997, House Bill 1, Article IX, §167 (Section 167) requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist. The commission held three workshops to conduct a preliminary review of its rules. As a result of these workshops, the commission is reorganizing its current substantive rules located in 16 Texas Administrative Code (TAC) Chapter 23 to: (1) satisfy the requirements of §167; (2) repeal rules no longer needed; (3) update existing rules to reflect changes in the industries regulated by the commission; (4) do clean-up amendments made necessary by changes in law and commission organizational structure and practices; (5) reorganize rules into new chapters to facilitate future amendments and provide room for expansion; and (6) reorganize the rules according to the industry to which they apply.

It is necessary for the commission to monitor demand-side management (DSM) programs of utilities to assess whether the utility mix or resources complies with the Public Utility Regulatory Act (PURA), Chapter 34, and to adequately review the prudence of the programs for cost recovery purposes. PURA §34.003 requires the commission to develop by rule an integrated resource planning (IRP) process to provide reliable energy service at the lowest reasonable system cost, including the appropriateness and reliability of the utility's mix of resources. The commission adopted §§23.34-23.37 concerning Integrated Resource Planning effective July 29, 1996, under Project Number 14400, Competitive Resource Acquisition and Integrated Resource Planning. Effective June 17, 1998, these rules were moved to Chapter 25 as part of the commission's reorganization of its rules and currently exist as §§25.161-25.171 in Subchapter H of this title (relating to Electrical Planning). These sections require submission of the information necessary for the commission to meet the requirement of PURA §34.003 and therefore §23.22 is not needed to obtain the information.

In addition, PURA §36.052(2) requires that the commission consider the efforts and achievements of the utility in conserving resources in establishing a reasonable return on invested capital. The information required to make this determination is filed with the commission as part of a utility's rate filing package.

As a result of the adoption of the IRP rules and the information required by the rate filing package, the commission proposes the repeal of §23.22 as no longer necessary.

Ms. Paula Mueller, Chief, Office of Regulatory Affairs, has determined that for each year of the first five-year period the proposed repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal of this section.

Ms. Mueller has determined that for each year of the first five years the proposed repeal is in effect the public benefit anticipated as a result of enforcing the section will be elimination of a section that is no longer necessary. There will be no effect on small businesses as a result of enforcing this repeal. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed.

Ms. Mueller has also determined that for each year of the first five years the proposed repeal is in effect there should be no affect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed repeal (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed repeal. The commission will consider the costs and benefits in deciding whether to adopt the repeal. The commission also invites specific comments regarding the §167 requirement as to whether the reason for adopting or readopting the rule continues to exist. All comments should refer to Project Number 17709 - Repeal of §23.22.

This repeal is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction.

Cross-Index to Statutes: Public Utility Regulatory Act §§14.002, 34.003 and 36.052.

§23.22. Energy Efficiency Plan.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 31, 1999.

TRD-9901931

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: May 16, 1999

For further information, please call: (512) 936-7308


Part VIII. Texas Racing Commission

Chapter 303. General Provisions

Subchapter D. Texas-Bred Incentive Programs

2. Programs for Horses

16 TAC §303.92

The Texas Racing Commission proposes an amendment to §303.92, concerning the rules for the Texas Bred Incentive Program fore thoroughbred horses. The amendment was presented to the commission as a rulemaking petition under 16 Texas Administrative Code §307.33 by the Texas Thoroughbred Association, the officially designated breed registry for thoroughbred horses in Texas. According to the petition, the amendment is necessary to conform current operating procedures to the centralized bookkeeping system operated by the horsemen's bookkeeper. The amendment clarifies that the accredited Texas-bred incentive awards are not a part of the purse, but are an added incentive under the statute.

Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined, based on the petition, that for the first five-year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Marcus has also determined, based on the petition, that for each of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the proposal will be that there will be the standards and the responsibility for the calculation and distribution of the incentive awards will be clear and in conformance with the Texas Racing Act. There will be no fiscal implications for small businesses. There is no anticipated economic cost to an individual required to comply with the amendment as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Comments on the proposal may be submitted on or before May 18, 1999, to Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §3.02, which authorize the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; §6.08, which authorizes the Commission to adopt rules relating to the accounting, audit, and distribution of all amounts set aside for the Texas-bred program; and §9.01, which authorizes the commission to approve and adopt rules developed by the breed registries.

The proposed amendment implements Texas Civil Statutes, Article 179e.

§303.92.Thoroughbred Rules.

(a) - (b)

(No change.)

(c)

Procedure for Payment of Awards.

(1)

(No change.)

(2)

Any accredited Texas-bred Thoroughbred that finishes first, second, or third in any race in Texas (with the exception of a stakes race restricted to accredited Texas-breds) shall receive an owner's incentive award. [ Commencing with all Thoroughbred race meets run on and after January 8, 1997, all ] All owner's incentive awards shall be noted [ as a purse supplement ] in each association's condition book and race program[ , and owner's awards shall be considered as a portion of the purse money earned by the accredited Texas bred Thoroughbred ] so as to identify the availability of the accredited Texas-bred program owner incentive awards. [ To calculate the amount of owner's award purse supplement available the following procedure shall be utilized: ]

[ (A)

Owner's Award purse supplements shall be calculated on a track- by-track basis, with analysis and opportunity for adjustment with each condition book. ]

[ (B)

Based on historical data such as:]

[ (i)

the relationship of the owner's award money available in relation to the purse money earned by accredited Texas-bred Thoroughbreds finishing first, second, or third; and]

[ (ii)

income projections for owner's award revenue calculated by the breed registry with the advice and consent of the Executive Secretary of the commission, the amount of the owner's award (as a percentage of the purse) shall be determined in advance for publication in each track's condition book and stakes book. For open company races, the owner's awards shall be advertised in each condition book, stakes book, and program so as to identify the availability of the accredited Texas-bred program awards.]

[ (C)

Accredited Texas-bred owner's award supplements shall only be paid to owners of accredited Texas-breds finishing first, second, or third in any race (except a stakes race restricted to accredited Texas-breds). No owner's award purse supplements shall be paid on fourth and fifth place finishes. ]

[ (D)

It is the intent of the breed registry that (as close of an actual sum as possible to) 40% of the total money generated for all categories of awards through the accredited Texas-bred Thoroughbred program will be distributed as owner's award purse supplements. The balance of the award money will be distributed by the breed registry with two-thirds of the balance (after payment of owner's awards) distributed to breeder's awards and one-third of the balance (after payment of owner's awards) distributed to stallion owner's awards. ]

[ (E)

If the percentage set by the breed registry causes an amount greater or less than 40.0% of the cumulative owner's, breeder's, and stallion owner's awards from all sources of award revenue to be paid out in owner's awards during a condition book period, the breed registry (with the advice and consent of the Executive Secretary of the commission) shall have the ability to adjust the owner's award purse supplement (as percentage of the purse) in future condition books during each particular race meeting. A periodic reconciliation shall be effected. ]

[ (F)

After payment of owner's awards for the final condition book of a race meeting, any remaining award money allocated for owner's awards during that race meet (if any) may be carried over to the next live race meet at that track or redistributed retroactively, at the discretion of the breed registry. Funds allocated to the breeder's and stallion owner's awards shall be distributed by the breed registry, with two-thirds of the balance to breeder's awards and one-third of the balance to stallion owner's awards. ]

[ (G)

On the first business day after a week of live racing is concluded at a Texas track (i.e., Monday for a race week ending on a Friday, Saturday, or Sunday), the horsemen's bookkeeper shall supply to the breed registry a complete listing of accredited Texas-bred Thoroughbreds that finished first, second, or third in any race at the track during the previous live racing week. The listing shall include the name of the horse, name of horse's owner, date of race, race number, finish position of horse (1st, 2nd, or 3rd), amount of purse money from the horsemen's purse account earned by the horse, and amount of accredited Texas-bred owner's award earned by the horse. The breed registry shall then on the same business day as it receives this report, transfer via electronic means to the horsemen's bookkeeper a sum of money necessary to cover all accredited Texas-bred owner's awards during the previous live racing week. ]

[ (H)

The breed registry shall retain the ability to set a maximum dollar amount for an owner's award. This procedure may be utilized in certain stakes races and/or high purse value allowance races. The intent of this maximum owner's award policy is to not provide an inordinate amount of the total money available for owner's awards to an individual horse during a condition book period. In the event the maximum owner's award policy is utilized for a race, the dollar amount of the maximum owner's award shall be indicated in the track's condition book, stakes book, and stakes nomination forms whenever possible. ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on April 5, 1999.

TRD-9902003

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Proposed date of adoption: May 20, 1999

For further information, please call: (512) 833-6699