TITLE rule-review

Proposed Rule Reviews

Texas Department of Banking

Title 7, Part 2

The Texas Department of Banking, on behalf of the Finance Commission of Texas (commission), files this notice of intention to review the following chapters of Texas Administrative Code, Title 7, in their entirety:

Chapter 17 (Trust Company Regulation); and

Chapter 19 (Trust Company Loans and Investments).

The commission also intends to review portions of the following chapters of Texas Administrative Code, Title 7, as specified:

Chapter 11 (Miscellaneous Provisions), specifically §11.81, regarding Same Powers as National Banks, and §11.83, regarding Other Matters;

Chapter 21 (Trust Company Corporate Activities), specifically Subchapters A through D, comprised of §§21.1-21.8, regarding Fees and Other Provisions of General Applicability; §§21.23-21.24, regarding Trust Company Chartering and Powers; §§21.31-21.32, regarding Trust Deposits; and §§21.41-21.42, regarding Trust Company Offices; and

Chapter 25 (Prepaid Funeral Contracts), specifically the portion of Subchapter B, comprised of §§25.17-25.41, regarding Regulation of Licenses, that has not yet undergone rule review by the commission; and Subchapter C, comprised of §§25.51-25.59, regarding Investment of Trust Funds.

The commission undertakes its review of these rules pursuant to Government Code §2001.039. The department will accept comments for 30 days following the publication of this notice in the Texas Register as to whether the reasons for adopting the sections under review continue to exist.

Any questions or written comments pertaining to this notice of intention to review should be directed to Sarah Shirley, Assistant General Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705, or by e-mail to Sarah.Shirley@banking.state.tx.us. Any changes to rules proposed as a result of the review will be published in the Proposed Rules Section of the Texas Register and will be open for a separate 30-day comment period prior to final adoption or repeal by the commission.

TRD-200201364

Everette D. Jobe

Certifying Official

Texas Department of Banking

Filed: March 5, 2002


Texas Groundwater Protection Committee

Title 30, Part 18

The Texas Groundwater Protection Committee (committee) files this notice of intention to review and proposes the readoption of Chapter 601, Groundwater Contamination Report with amendments as concurrently published in the Proposed Rules section of this issue of the Texas Register . This review of Chapter 601 is proposed in accordance with the requirements of Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist.

CHAPTER SUMMARY

The TGPC was created by the 71st Legislature in 1989 to bridge gaps between existing state groundwater programs and to optimize water quality protection by improving coordination among agencies involved in groundwater activities. The committee's rules in Chapter 601 define the conditions that constitute groundwater contamination for the purpose of inclusion of cases in the public files for each state agency having responsibilities related to the protection of groundwater. These rules also describe the contents of the committee's Joint Groundwater Monitoring and Contamination Report required under Texas Water Code (TWC), §26.406. The report describes the current status of groundwater monitoring activities conducted by or required by each agency at regulated facilities or associated with regulated activities; contains a description of each case of groundwater contamination documented during the previous calender year; contains a description of each case of contamination documented during the previous year for which enforcement action was incomplete at the time of issuance of the preceding report; and indicates the status of enforcement action for each case of contamination which is listed.

PRELIMINARY ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The committee conducted a preliminary review and determined that the reasons for the rules in Chapter 601 continue to exist. Chapter 601 is necessary because TWC, §26.406 specifically provides that the committee shall adopt rules defining the conditions that constitute groundwater contamination for purposes of inclusion of cases in the public files and the joint report required by this section. To meet this statutory requirement, the rules provide the definitions and applicability for maintaining public files on groundwater contamination cases and contents of the annual Joint Groundwater Monitoring and Contamination Report required by TWC, §26.406(d).

PUBLIC COMMENT

This proposal is limited to the review in accordance with the requirements of Texas Government Code, §2001.039. The committee invites public comment on whether the reasons for the rules in Chapter 601 continue to exist. Comments may be submitted to Patricia Durón, Office of Environmental Policy, Analysis, and Assessment, Texas Natural Resource Conservation Commission, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference TGPC-Groundwater Contamination Report Quadrennial Review. Comments must be received by 5:00 p.m., April 15, 2002. For further information or questions concerning this proposal, please contact Auburn Mitchell, Policy and Regulations Division, at (512) 239-1873.

TRD-200201240

Stephanie Bergeron

Director, Environmental Law Division

Texas Groundwater Protection Committee

Filed: February 27, 2002


Texas Department of Health

Title 25, Part 1

The Texas Department of Health (department) will review and consider for readoption, revision or repeal Title 25, Texas Administrative Code, Part 1, Chapter 229. Food and Drug, Subchapter. M, Regulation of Food, Drug, Device, and Cosmetic Salvage Establishments and Brokers, §§229.191 - 229.208.

This review is in accordance with the requirements of the Texas Government Code, §2001.039, the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999.

An assessment will be made by the department as to whether the reasons for adopting or readopting these rules continue to exist. This assessment will be continued during the rule review process. Each rule will be reviewed to determine whether it is obsolete, whether the rule reflects current legal and policy considerations, and whether the rule reflects current procedures of the department.

Comments on the review may be submitted in writing within 30 days following the publication of this notice in the Texas Register to Linda Wiegman, Office of General Counsel, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756. Any proposed changes to these rules as a result of the review will be published in the Proposed Rule Section of the Texas Register and will be open for an additional 30 day public comment period prior to final adoption or repeal by the department.

TRD-200201293

Susan K. Steeg

General Counsel

Texas Department of Health

Filed: March 1, 2002


Adopted Rule Review

Public Utility Commission of Texas

Title 16, Part 2

The Public Utility Commission of Texas (commission) readopts Texas Administrative Code, Chapter 25, Substantive Rules Applicable to Electric Service Providers, pursuant to the Texas Government Code, Administrative Procedure Act (APA), §2001.039, Agency Review of Existing Rules. The notice of intention to review Chapter 25 was published in the Texas Register on September 21, 2001, (26 TexReg 7283). Project Number 22067 is assigned to this review proceeding.

APA §2001.039 requires that each state agency review and readopt, readopt with amendments, or repeal the rules adopted by that agency pursuant to the Texas Government Code, Chapter 2001. Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rules continues to exist. The commission requested specific comments on whether the reason for adopting the substantive rules in Chapter 25 continues to exist.

The commission finds that the reason for adopting Chapter 25 continues to exist. However, the commission also finds that certain sections require amendments and other sections are obsolete due to the restructuring of the electric industry. Separate rulemaking proceedings will be initiated to amend or repeal these sections as discussed further in this preamble.

The commission received comments on the notice of intention to review from American Electric Power Company (AEP), Reliant Energy HL&P (Reliant-HL&P), Reliant Resources, Inc. (RRI), TXU Electric Company (TXU), and Xcel Energy on behalf of Southwestern Public Service Company (Xcel).

General comments related to Chapter 25

Commenters stated that the majority of the rules in Chapter 25 should be readopted or readopted with amendments; however, there are certain sections that commenters believe should be repealed as indicated in subsequent discussions.

AEP, Reliant-HL&P and Xcel commented that the use of the terms "electric utility" and "utility" need to be reviewed throughout the rules to determine the applicability of the terms as defined. As a result of Senate Bill 7, 76th Legislative Session (1999), the electric industry has been significantly restructured and each rule should reference the bundled or unbundled entity to which it applies. Xcel stated that the rules must preserve those portions that apply to integrated utilities still under regulation while accommodating the restructured electric industry. AEP commented that the majority of the rules need to be amended to specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

Reliant-HL&P and Xcel commented that the term "customer" should also be carefully reviewed in each section and should be specific as to the type of service that the customer receives. Commenters suggested that the rules should provide definitions for each type of customer and then the individual rules should reference those individual classifications of customers to avoid confusion.

Commenters also noted that general clean-up of the rules is needed, e.g., to remove obsolete dates and references to integrated resource planning (IRP).

The commission agrees that the applicability of each section needs to be carefully reviewed to specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. The terms "electric utility" and "utility" need to be modified as necessary to reference the bundled or unbundled entity responsible for meeting the requirements of each section. The commission also agrees that some general clean-up of the rules is needed to remove obsolete dates and references to IRP, as well as references to rule sections in Chapter 23 which no longer exist. New rulemaking projects will be initiated to make the necessary changes to the substantive rules in Chapter 25.

Subchapter A, General Provisions

§25.1, Purpose and Scope of Rules

TXU commented that §25.1(b) should reflect that many of the new rules address non- utility market participants as well as utility service providers and consumers.

The commission agrees with TXU that this section should reflect that many of the new rules also address non-utility market participants. The commission anticipates that this section will be carefully reviewed in a future rulemaking project.

§25.2, Cross-Reference Transition Provision

The commission received no comments on this section.

§25.3, Severability Clause

TXU commented that the second sentence should be amended to include non-utility market participants whose duties are also addressed in Chapter 25.

The commission agrees with TXU that this section should reflect that non-utility market participants are subject to certain duties addressed in Chapter 25. The commission anticipates that this section will be carefully reviewed in a future rulemaking project.

§25.4, Statement of Nondiscrimination

The commission received no comments on this section.

§25.5, Definitions

RRI stated that the definitions section should be expanded to include terms used in multiple sections of the substantive rules; all terms should be reviewed to ensure that the terms' application are consistent throughout the rules; the terms should be reviewed for consistency with Chapter 25, Appendix IV, Tariff for Retail Delivery Service, and with the Electric Reliability Council of Texas (ERCOT) protocols; the terms "public utility" and "utility" should be replaced with the specific entities, i.e., the transmission and distribution utility (TDU), retail electric provider (REP), and/or power generation company (PGC) responsible for the requirements of the rule.

Reliant-HL&P commented that the term "ERCOT protocols" should be amended to include customer registration activities; "freeze period" should be deleted as obsolete after January 2002; "power cost recovery factor" should be amended to clarify that it does not apply to utility territories open to full competition after January 1, 2002; and "retail electric provider" should be amended to clarify that a certificate is required from the commission.

The commission agrees with RRI that the defined terms in this section should be carefully reviewed and amended, including expansion of terms where appropriate, to ensure consistent applicability throughout Chapter 25. The commission additionally agrees that, although definitions of transmission and distribution, retail electric provider, and power generation company currently exist in the section, the terms "public utility" or "utility" may need substantive modification so that the terms accurately reflect the correct type of applicable market participant.

The commission also agrees with Reliant-HL&P that certain definitions may need amendment or deletion to accurately reflect their applicability in light of market changes brought forth through commencement of competition. The commission intends to initiate a rulemaking project(s) to carefully review and implement modifications to the section where appropriate.

§25.6, Cost of Copies of Public Information

The commission received no comments on this section.

Subchapter B, Customer Service and Protection

General comments on §§25.21-25.31

TXU commented that the rules in this subchapter should be amended where appropriate to address distinctions between those areas of the state where competition will exist after January 2002 and those areas that will not yet be competitive. TXU further stated that in those areas where competition will exist, Subchapter B should be amended to conform to §25.214 of this title (relating to Terms and Conditions of Retail Delivery Service Provided by Investor Owned Transmission and Distribution Utilities); Chapter 25, Appendix IV, Tariff for Retail Delivery Service; and Subchapter R, relating to Customer Protection Rules for Retail Electric Service.

Xcel commented that the subchapter should be readopted and made applicable to those utilities that continue to operate under traditional regulation.

Reliant-HL&P stated that §§25.21 - 25.31 should be amended to clarify that these sections do not apply to transmission and distribution utilities.

The commission agrees with TXU and Xcel that these sections need to be modified throughout to acknowledge that the rules apply to electric utilities operating in non-competitive areas. The commission disagrees with TXU that these rules should be amended to conform to §25.214, since that rule only applies to utilities that operate in competitive areas. The customer protection rules that apply to utilities that operate in competitive areas are properly found in Subchapter R, relating to Customer Protection Rules for Retail Electric Service. The commission also believes other substantive revisions may need to be made to these sections to fully ensure that the customer safeguards envisioned by the Public Utility Regulatory Act (PURA) §39.101 are available to all retail customers in the state of Texas regardless of their provider. The commission will open a separate project to make these other more substantive revisions.

§25.28, Bill Payment and Adjustments

Xcel commented that §25.28(c) requires a utility to correct overbilling for the entire period overbilled but that subsection (d) limits a utility to correcting underbilling to only six months unless it results from theft of service. Xcel stated that this section should be modified to better balance collection rights of utilities by allowing utilities to justify a longer period for collecting underbilled accounts.

The commission disagrees with Xcel's argument and finds that it is the responsibility of the electric utility or REP to provide accurate bills to customers. The customers should not be penalized if the electric utility or REP fails to bill appropriately. Therefore, the commission declines to amend the rule for this purpose. However, as mentioned above, the commission believes other substantive revisions need to be made to this rule to fully ensure that the customer safeguards envisioned by PURA §39.101 are available to all retail customers in the state of Texas regardless of their provider. The commission will open a separate project to make these other more substantive revisions.

§25.29, Disconnection of Service

Xcel commented that §25.29 should be expanded to allow a utility to disconnect a customer without notice if the customer is attempting to avoid or evade payment by changing their identity or asking another customer to apply for new service at their address.

The commission disagrees with Xcel's argument. The scenario put forth by Xcel is similar to the provision contained at §25.23(a)(4) that allows a utility to refuse to provide electric service if the electric utility can prove that the customer is attempting to avoid or evade payment of a prior bill by changing their identity. Since that provision clearly places the burden on the utility to prove such action, and allows the customer to challenge such claim by the utility, it does not seem appropriate to deny the customer the right to receive a disconnect notice. The disconnect notice in this instance is the only communications vehicle between the electric utility and the customer which would allow the customer the right to challenge the company's assertion. However, as mentioned above, the commission believes other substantive revisions need to be made to this rule to fully ensure that the customer safeguards envisioned by PURA §39.101 are available to all retail customers in the state of Texas regardless of their provider. The commission will open a separate project to make these other more substantive revisions.

§25.41, Price to Beat

RRI commented that §25.41 should be reopened, at a minimum, to amend subsection (g) as follows:

(1) Paragraph (1)(C) should be modified to eliminate any threshold percentage difference. RRI stated that the 4.0% threshold currently in the rule, in combination with the limit to biannual adjustments, creates an unnecessary and unacceptable level of financial exposure for the affiliate REP.

(2) Paragraph (1)(F) should be modified to allow an affiliated REP to transition to the use of an electricity commodities index prior to the time of the affiliated PGC's finalized stranded cost determination.

(3) Paragraph (2) should be modified to allow the commission to set the price to beat at a level that exceeds the September 1, 1999 bundled rates, adjusted for fuel, when necessary to allow affiliated REPs to maintain financial integrity. In addition, RRI stated that this section should include a time frame by which the commission will rule upon a request for an adjustment for financial integrity.

RRI also stated that subjection (i)(2) should be modified so that customers dropped to the provider of last resort by an affiliated REP shall be counted as load served by a non-affiliated REP.

The commission finds that existing §25.41 should not be amended at this time. While it is possible that the commission may desire to revisit certain aspects of the price to beat rule as the market develops, there has currently been little or no experience with market operations under the rule, and as such, it is impossible to know at this point whether or not the existing rule is adequate.

§25.43, Provider of Last Resort (POLR)

AEP and RRI stated that they understand the commission already intends to initiate a rulemaking to review and amend §25.43 and reserve any comments on this section for that proceeding.

The commission agrees that this rule has already been identified as one needing modification and will open a separate project to initiate needed changes.

Subchapter C, Quality of Service

General comments on §§25.51-25.53

AEP noted that the rule should specify applicable entities in both the new market structure and those utilities not implementing customer choice January 1, 2002. TXU commented that the rules in Subchapter C should be amended where necessary to address new relationships among TDUs, REPs and retail customers where competition will exist after January 2002 and those areas that will not yet be competitive. TXU also stated that this subchapter should be amended to conform to §25.214 and its Tariff for Retail Delivery Service.

The commission agrees that it is necessary to revise portions of Subchapter C to address the new relationships among those entities where competition exists and those areas that will not yet be competitive after January 1, 2002. These amendments should achieve consistency between existing rules and §25.214 and its Tariff for Retail Delivery Service. The commission intends to address these revisions in a subsequent rulemaking.

§25.51, Power Quality

Reliant-HL&P advised that the term "electric utility" should be replaced with "transmission and distribution utility." RRI commented that this section should be amended to reflect the latest ERCOT protocols, and the obligations of ERCOT, transmission and distribution service providers, and load serving entities.

The commission agrees with Reliant-HL&P's and RRI's comments. In addition to their comments, the commission points out that this section must be revised so that those transmission and distribution utilities implementing retail customer choice January 1, 2002 are no longer permitted to offer a competitive service and to correctly identify the parties involved and their responsibilities while maintaining the existing section's requirements for transmission and distribution utilities not implementing customer choice on January 1, 2002.

§25.52, Reliability and Continuity of Service.

Reliant-HL&P commented that the term "electric utility" should be replaced with "transmission and distribution utility."

The commission agrees this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. The commission intends to address these revisions in a subsequent rulemaking.

§25.53, Emergency Operations Plan

Reliant-HL&P commented that §25.53 should be amended to: modify the term "utility" to specify the unbundled electric entity that should provide the information; amend subsection (a) to delete obsolete date for initial action; amend subsection (c)(1) because commission rules do not currently provide that the TDU will have access to information on the critical loads service; amend subsection (c)(2) to adapt to electric restructuring, as the TDU will not have current load information or the responsibility to ensure adequate generation supply; amend subsection (c)(3) to adapt to electric restructuring as the distinction of shedding interruptible and firm load is no longer valid and the commission should address the procedures used to shed load and perform rotating black-outs in light of the new marketplace; amend subsection (c)(5) so that it does not apply to the TDU who will no longer have access to power plant weatherization plans and procedures; and amend subsection (c)(6) as the TDU will no longer have access to alternative fuel and storage capacity information.

RRI stated that §25.53 should be amended to reflect the three different relationships in the deregulated market (TDU provides service to competitive retailers; competitive retailers provide other services to retail customers; and the relationship between TDUs and the end-use customers).

The commission agrees that extensive amendments are necessary to this section and intends to address these revisions in a subsequent rulemaking.

Subchapter D, Records, Reports, and Other Required Information

§25.71, General Procedures, Requirements and Penalties

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.72, Uniform System of Accounts

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information. Reliant-HL&P stated that subsection (b) should be amended due to the fact that the definitions of "major" and "nonmajor" in subsection (b) do not apply to entities other than REPs and that subsection (c) should be amended as the terms "major" and "nonmajor" are no longer applicable.

The commission agrees that the rule should specify the applicable entities that should provide the information in both the new market structure and among utilities not implementing customer choice in January 2002. The commission also agrees that the definitions of "major" and "nonmajor" should be modified to include the TDUs.

§25.73, Financial and Operating Reports

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information. In addition, Reliant-HL&P commented that the requirement in subsection (b) for TDUs to file earnings monitoring reports is redundant with the requirements for TDUs in §25.192(c) of this title (relating to Transmission Service Rates).

The commission agrees that this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. The commission disagrees that the requirements in subsection (b) for TDUs are redundant with the requirements for TDUs in §25.192(c). Subsection (b) requires transmission service providers to file a report that will permit the commission to monitor its transmission costs and revenue. Section 25.192(c) regarding transmission cost of service explains which expenses in the Federal Energy Regulatory Commission (FERC) expense accounts should be included in transmission cost of service. The commission finds that the reference in subsection (b) to §25.193(a)(5) of this title (relating to Distribution Service Provider Transmission Cost Recovery Factors (TCRF)) should be amended to §25.192(g)(5) in order to reflect the correct section of the rules.

§25.74, Reports on Sale of Property and Mergers

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information. Reliant-HL&P also commented that subsection (d) should be modified to clarify that the language in the last sentence, "energy conservation loans available to customers," does not apply to utilities whose territories are opened to full competition as of January 1, 2002.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.75, Reports on Sale of 50% or More of Stock

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.76, Gross Receipts Assessment Report

Reliant-HL&P commented that §25.76 should be amended to specify that the REP is responsible for reporting and paying the assessment to the Comptroller.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.77, Payments, Compensation, and Other Expenditures

AEP commented that this section should be amended to specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

The commission agrees this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.78, State Agency Utility Account Information

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information and noted that the TDU will not have the required information. TXU stated that the rule should be reviewed to determine if amendments are necessary to address the new relationships among TDUs, REPs and retail customers in those areas of the state where a competitive retail environment will exist when the retail market opens and those areas that will not yet be in a competitive retail market.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.79, Equal Opportunity Reports

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity that should provide the information.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.80, Annual Report on Historically Underutilized Businesses

Reliant-HL&P commented that the term "electric utility" should be modified to indicate that the TDU is responsible for this filing.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.81, Service Quality Reports

Reliant-HL&P commented that the term "electric utility" should be modified to indicate that the TDU is responsible for this filing.

The commission agrees this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002 that is responsible for filing the annual service quality reports. The commission intends to address these revisions in a subsequent rulemaking.

§25.82, Fuel Cost and Use Information

Reliant-HL&P commented that §25.82 should be modified to specify that this section only applies to utilities that continue to operate under full regulation. Reliant-HL&P further stated that beginning January 2002 monthly fuel information is competitively sensitive and therefore should not be reported by unbundled entities.

The commission concurs with Reliant-HL&P that §25.82 should be modified. The commission disagrees that unbundled entities are excused from the reporting requirement. The issue of competitively sensitive information will be dealt with by having all reports under this section filed for commission use only, under terms of a confidentiality agreement, regardless of whether the entity is unbundled or not.

§25.83, Construction Reports

Reliant-HL&P stated that §25.83 should be repealed as current practice at the commission negates the need for "preliminary construction reports". Reliant-HL&P advised that TDUs already file a "Monthly Construction Status Report of Electric Utilities" and that the information required by §25.83 is already contained in that monthly report. Reliant-HL&P stated that if this section is not repealed, it should be modified to indicate that the TDU is responsible for this report.

The commission agrees this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. The commission does not agree that this section should be repealed. The commission intends to amend this section to more closely reflect the requirements of the monthly construction status report.

§25.84, Reporting of Affiliate Transactions for Electric Utilities

No comments were received on this section.

§25.85, Report of Workforce Diversity and Other Business Practices

Reliant-HL&P commented that the term "electric utility" should be modified to indicate that the TDU is responsible for this filing.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.87, Distribution Unbundling Reports

AEP, Reliant-HL&P, and TXU all commented that the report required by §25.87 is obsolete and this section should be repealed. TXU stated that if it is decided that this section is still needed for bundled utilities after January 2002 then the rule should be amended accordingly. RRI stated that subsection (e)(1) should be modified to clarify that TDUs are responsible for the metering reports.

The commission agrees that this section should be repealed and will initiate a project to repeal this section.

§25.89, Report of Loads and Resources

Reliant-HL&P stated that §25.89 is obsolete and should be repealed. If it is not repealed, then it should be amended to: remove references to the "independent system operator" as that term is no longer used by ERCOT; recognize that in the new marketplace transmission customers generally do not specify the resources to be used (to the extent that certain wholesale customers still specify resources, the term "customers" needs to be defined to clarify which customers still have this responsibility); and correct the reference to §25.198 of this title (Initiating Transmission Service) from subsection (l) to subsection (i).

The commission disagrees that this section should be repealed. Section 25.198 requires transmission service customers to provide ERCOT with annual updates of load and resource forecasts. Section 25.89 requires that these reports also be filed with the commission. ERCOT will continue to use the data provided in the reports required in §25.198, and the commission believes that to the extent the data is provided to ERCOT, it should be filed with the commission in accordance with §25.89. The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. The commission also recognizes that the reference to §25.198 needs to be corrected.

§25.90, Market Power Mitigation Plans

Reliant-HL&P commented that the term "electric utility" should be replaced with the unbundled electric entity affected by the requirements. Reliant-HL&P and RRI stated that the first sentence in subsection (a) should be deleted as that requirement was completed December 1, 2000 and that subsection (b) regarding initial information filing should be deleted in its entirety.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. The commission also agrees with the suggested changes to subsections (a) and (b).

§25.91, Generating Capacity Reports

See "General comments related to Chapter 25."

Subchapter E, Certification, Licensing and Registration

§25.101, Certification Criteria

AEP, Reliant-HL&P and TXU stated that §25.101 should be amended to delete obsolete references to certificates for generating facilities. In addition, Reliant-HL&P advised that it carries forth its comments made in Project Number 24101, Rulemaking Concerning Transmission Line Routing; Proposed Amendment to Subst. R. §25.101 , regarding subsection (c)(2)(C)(i)-(vii). Reliant-HL&P further stated that amendments to this section are needed as the necessity to file a long-form certificate of convenience and necessity should not depend on whether the generator is a qualifying facility or an independent power producer; to address the definition of the term "customer"; to modify the term "electric utility" to specify the TDU; to delete the term "independent system operator" as it is obsolete; and to delete obsolete portions of subsections (b) and (c).

The commission agrees that extensive amendments are necessary to this section and intends to address these revisions in a subsequent rulemaking.

§25.102, Coastal Management Program

Reliant-HL&P commented that the term "electric utility" should be modified to specify the TDU and that references to certificates for generating facilities should be deleted as obsolete.

The commission agrees this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002 that are responsible for complying with the requirements of the Coastal Management Program when applying for a certificate for the construction of transmission facilities The commission will address the revisions in a subsequent rulemaking.

§25.105, Registration and Reporting by Power Marketers; §25.107, Certification of Retail Electric Providers (REPs); §25.108, Financial Standards for Retail Electric Providers the Regarding the Billing and Collection of Transition Charges; §25.109, Registration of Power Generation Companies and Self-Generators; and §25.111, Registration of Aggregators

The commission received no comments on these sections.

Subchapter F, Metering

General comments on §§25.121-25.129

AEP noted that the rule should specify applicable entities in both the new market structure and those utilities not implementing customer choice January 1, 2002. TXU commented that the rules in Subchapter F should be amended where appropriate to address distinctions between those areas of the state where competition will exist after January 1, 2002 and those areas that will not yet be competitive. TXU stated that where competition will exist, the rules in Subchapter F should be amended where necessary to conform to §25.214, Appendix IV - Tariff for Retail Delivery Service, and the ERCOT protocols.

Reliant-HL&P commented that §§25.121 - 25.126 should be repealed due to the adoption of §25.214 and the standard terms and conditions adopted in the Tariff for Retail Delivery Service. If not repealed, Reliant-HL&P recommended changes to each section.

The commission disagrees with Reliant-HL&P that these sections should be repealed. The commission agrees with AEP and TXU that these rules should be amended to specify applicable entities in both the new market structure and those utilities not implementing customer choice January 1, 2002. The commission also agrees that these sections need to be amended as discussed in more detail under each specific section.

§25.121, Meter Requirements

Reliant-HL&P stated that there is a conflict between subsection (d)(2) and Section 5.10.2.1 of the Tariff for Retail Delivery Service. Reliant-HL&P also stated that the term "electric utility" should be modified to specify the unbundled electric entity that is affected by the requirements. Subsection (b) should state that the responsibilities of the TDU for metering are limited to load and/or generation directly connected to its facilities.

The commission agrees that there is a conflict between what subsection (d)(2) requires the retail customer to provide without cost to the company and what Section 5.10.2.1 requires the retail customer to provide in the Tariff for Retail Delivery Service. The commission agrees that this section should be amended to distinguish between entities that will and entities that will not enter competition on January 1, 2002.

§25.122, Meter Records; §25.123, Meter Readings; and §25.125, Adjustments Due to Meter Errors

If these sections are not repealed, Reliant-HL&P commented that the term "electric utility" should be modified to specify the unbundled electric entity that is affected by the rules' requirements and that the term "customer" should be modified to specify "retail customer."

The commission agrees that each of these sections should be amended so that the language makes a distinction between those entities that do and those that do not enter retail competition January 1, 2002. The commission agrees that inconsistencies between these sections and the corresponding sections of the Tariff for Retail Delivery Service should be eliminated.

§25.124, Meter Testing

If this section is not repealed, Reliant-HL&P commented that this section should be amended as subsections (c) and (d)(5) are not consistent with Section 4.7.4 of the Tariff for Retail Delivery Service regarding changes allowed for the recovery of costs to test the meter and the standard for calibration of the test equipment. In addition, Reliant-HL&P commented that the term "electric utility" should be modified to specify the unbundled electric entity that is affected by the rules' requirements and that the term "customer" should be modified to specify "retail customer."

The commission agrees that this section should be amended to make it consistent with the Tariff for Retail Delivery Service and that appropriate language be used to correctly specify those entities affected by the requirement of the rules.

§25.126, Meter Tampering

Reliant-HL&P commented that this section should be repealed and the issue of meter tampering should be addressed in the standard terms and conditions for the Tariff for Retail Delivery Service.

The commission finds that this section should be maintained but with additional language that identifies those affected entities who are implementing customer choice as well as those who are not.

§25.127, Generating Station Meters, Instruments, and Records

Reliant-HL&P stated that subsection (a) should be amended to clarify that the TDU is not responsible for metering the generating stations and that the rule should reference the requirements contained in the ERCOT protocols. RRI commented that this section should be revised to reflect the ERCOT protocols and the obligations of ERCOT, transmission and distribution service providers, and load service entities.

The commission agrees that the section should be amended to reflect the ERCOT protocols and to identify the entities who are implementing customer choice and those who are not.

§25.128, Interconnection Meters and Circuit Breakers

Reliant-HL&P commented that the term "electric utility" should be modified to specify the unbundled electric entity that is affected by the requirements. RRI commented that this section should be revised to reflect the ERCOT protocols and the obligations of ERCOT, transmission and distribution service providers, and load service entities.

The commission agrees that this section should be revised to identify those entities who are implementing customer choice and to reflect the ERCOT protocols.

Subchapter G, Submetering

§25.141, Central System or Nonsubmetered Master Metered Utilities and §25.142, Submetering for Apartments, Condominiums, and Mobile Home Parks

TXU commented that the rules in Subchapter G should be amended where appropriate to address distinctions between those areas of the state where competition will exist after January 1, 2002 and those areas that will not yet be competitive. TXU stated that where competition will exist, the rules in Subchapter G should be amended where necessary to conform to §25.214, Appendix IV - Tariff for Retail Delivery Service, and the ERCOT protocols.

Reliant-HL&P commented that the term "electric utility" or "utility" should be modified to specify the unbundled entity affected by the requirements of the rule (i.e., the REP). RRI stated that these sections should be modified to reflect the three different relationships in the deregulated market: (1) the relationship in which TDUs provide electric utility service to competitive retailers; (2) the relationship in which competitive retailers provide other services to retail customers; and (3) the relationship between TDUs and end-use customers.

The commission agrees that these sections should be amended to clearly identify the affected entities, both those who are implementing retail choice and those who are not, and to clearly specify each entity's responsibilities.

Subchapter H, Electrical Planning

Division 1: Renewable Energy Resources and Use of Natural Gas

§25.172, Goal for Natural Gas

The commission received no comments on §25.172.

§25.173, Goal for Renewable Energy

TXU commented that the commission needs to delete subsection (p) as indicated in the order adopting §25.476(g) under Project Number 22816, Rulemaking Proceeding to Develop Standards for the Labeling of Electricity with Respect to Fuel Mix and Air Emissions .

The commission agrees and will initiate a project to make this change.

Division 2: Energy Efficiency and Customer-Owned Resources

§25.181, Energy Efficiency Goal

AEP commented that this section should specify the applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002. Reliant-HL&P stated that subsection (g)(4) should be deleted as obsolete after January 2002.

The commission agrees that subsection (g)(4) should be deleted and will initiate a project to amend this section and further review its applicability.

Subchapter I, Transmission and Distribution

Division 1: Open-Access Comparable Transmission Service for Electric Utilities in the Electric Reliability Council of Texas

§25.191, Transmission Service Requirements; §25.192, Transmission Service Rates; §25.193, Distribution Service Provider Transmission Cost Recovery Factors (TCRF); §25.195, Terms and Conditions for Transmission Service; §25.196, Standards of Conduct; §25.202, Commercial Terms for Transmission Service; §25.203, Alternative Dispute Resolution (ADR)

The commission received only general comments that these sections should be readopted.

§25.198, Initiating Transmission Service

Reliant-HL&P commented that §25.198 pertains to the obsolete process of "applying" for "planned" transmission service and should be substantially modified to conform to the current practice of the commission.

The commission agrees that amendments are necessary to this section to conform to current practice and the commission intends to address these revisions in a subsequent rulemaking.

§25.200, Load Shedding, Curtailments, and Redispatch

AEP commented that §25.200 should be reviewed to determine if it is still applicable in the new market structure. Reliant-HL&P and TXU stated that subsection (e) should be deleted as obsolete since the implementation of a single control area in the ERCOT region.

The commission believes that this section is applicable in the new market structure but may need minor revisions, i.e., the deletion of subsection (e) which is no longer applicable. The commission intends to address these revisions in a subsequent rulemaking.

Division 2: Transmission and Distribution Applicable to All Electric Utilities

§25.211, Interconnection of On-Site Distributed Generation (DG); and §25.212, Technical Requirements for Interconnection and Parallel Operation of On-Site Distributed Generation

AEP commented that in addition to specifying applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002, §25.211 should be amended so that obsolete requirements due to restructuring are eliminated. Reliant- HL&P stated that the terms "electric utility" and "utility" should be replaced with "distribution service provider" in §25.211 and with "distribution utility" in §25.212.

The commission agrees that the rule should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002 and that obsolete requirements should be eliminated.

§25.214, Terms and Conditions of Retail Delivery Service Provided by Investor Owned Transmission and Distribution Utilities

The commission received no comments on this section.

§25.221, Electric Cost Separation

Reliant-HL&P commented that the term "electric utility" should be modified to specify the unbundled entity affected by the requirements of this section and that subsection (e)(2) should be deleted as obsolete. TXU stated that §25.221 has been superceded by the rules in §§25.341 - 25.346 and, therefore, should be repealed.

The commission agrees that this section is obsolete and has been superceded by §§25.341 - 25.346. The commission will initiate a project to repeal this section.

§25.223, Unbundling of Energy Service

AEP and TXU commented that §25.223 is obsolete, has been superceded by §§25.341 - 25.346 and, therefore, should be repealed. Reliant-HL&P stated that the terms "electric utility" and "energy service" should be modified to conform to the new marketplace and that subsection (f) should be deleted as obsolete.

The commission agrees that this section is obsolete and has been superceded by §§25.341 - 25.346. The commission will initiate a project to repeal this section.

§25.227, Electric Utility Service for Public Retail Customers

TXU commented that §25.227 should be amended to reflect that this section is not applicable in areas of the state where competition began in January 2002.

The commission agrees this section should be amended to specify applicable entities in the new market structure.

Subchapter J, Costs, Rates and Tariffs

Division 1: Retail Rates

§25.231, Cost of Service

Reliant-HL&P commented that the term "electric utility" needs to be thoroughly reviewed. In some instances the term should be "transmission and distribution utility" and in others it should be "power generation company." Reliant-HL&P further stated that the terms "to the public" or "for public use" need to be amended as a transmission and distribution utility will not render service to the public but to PGCs and REPs. In addition, subsection (b) should be modified to: (1) reflect in paragraph (1)(F)(i) that a component of non-bypassable charges related to the nuclear decommissioning fund are included in the rates of a TDU; (2) reflect in paragraph (1)(F)(iii) that decommissioning fund and trust balances are reviewed in a TDUs rate case; and (3) reflect in paragraph (1)(F)(iv) that a decommissioning study should be the responsibility of the PGC as TDUs do not have access to the information.

TXU commented that §25.231 should be amended to reflect that after unbundling some aspects of the cost of service calculation will differ for unbundled TDUs.

The commission agrees that the rule needs to be thoroughly reviewed and the language should be modified to specify the applicable entities in the new market structure. The commission also agrees that subsection (b)(1)(F) should be amended to reflect the change in the reporting and collection of the nuclear decommissioning costs as a result of the new market structure.

§25.232, Adjustments for House Bill 11, Acts of 72nd Legislature, First Called Special Session 1991.

Reliant-HL&P and TXU stated that §25.232 should be repealed as obsolete. AEP commented that this section should be thoroughly reviewed to determine if it has continued applicability to Southwestern Electric Power Company (SWEPCO) as a result of the abatement of the SWEPCO unbundled cost of service (UCOS) case as ordered in the readiness docket and repealed if found to be obsolete.

The commission agrees that this section is obsolete and will initiate a project to repeal this section.

§25.233, Treatment of Integrated Resource Plan Costs

AEP, Reliant-HL&P, RRI and TXU all commented that §25.233 is obsolete and should be repealed.

The commission agrees and will initiate a project to repeal this section.

§25.234, Rate Design

See "General comments related to Chapter 25."

§25.235, Fuel Costs - General

Reliant-HL&P commented that §25.235 should be modified to specify that it only applies to those utilities that continue under full regulation. Beginning January 1, 2002 fuel costs will no longer be recovered pursuant to a fuel proceeding for unbundled entities. TXU stated that this section should clarify that it does not apply to unbundled TDUs.

The commission agrees with Reliant-HL&P that the rule should be modified to clarify its applicability to only those utilities continuing under full regulation.

§25.236, Recovery of Fuel Costs

Reliant-HL&P and TXU stated that §25.236 is still needed for each utilities' final fuel reconciliation. After that time, this section should be modified to specify that it only applies to utilities that continue to operate under full regulation and does not apply to unbundled TDUs.

The commission agrees that the rule should be modified to apply only to those utilities that have not filed a final fuel reconciliation according to §25.236(g).

§25.237, Fuel Factors

Reliant-HL&P commented that §25.237 should be modified to specify that it only applies to utilities that continue to operate under full regulation. TXU stated that subsection (d), regarding the schedule for filing petitions to revise fuel factors, should be amended to delete references to utilities no longer required to make such filings after unbundling.

Xcel stated that in view of the recent fuel market experience and volatility and the reduction in the number of utilities that §25.237 will apply to, the rule should be amended to provide increased flexibility to ensure more concurrent recovery of fuel costs, i.e., allowing a utility to petition to adjust the fuel factor every three months instead of every six months.

The commission agrees with Reliant-HL&P and TXU that the rule needs to be amended to clarify the non-price to beat entities still subject to its requirements. The commission is willing to consider Xcel's proposal to shorten the intervals between petitions to adjust the fuel factor.

§25.238, Power Cost Recovery Factors (PCRF)

Reliant-HL&P commented that §25.238 should be modified to specify that it only applies to those utilities that continue under full regulation. TXU stated that this section should clarify that it does not apply to unbundled TDUs.

The commission agrees with Reliant-HL&P that the rule should be modified so that it applies only to utilities that remain under full regulation.

§25.240, Contribution Disclosure Statements in Appeals of Municipal Utility Rates

The commission received no comments on this section.

§25.241, Form and Filing of Tariffs

Reliant-HL&P stated that the terms "electric utility" and "utility" should be modified to specify the unbundled electric entity that should file tariffs. TXU commented that this section should be amended to clarify that unbundled TDUs are required to use the standard terms and conditions agreement pursuant to §25.214.

The commission agrees this section should specify applicable entities in both the new market structure and among utilities not implementing customer choice in January 2002.

§25.242, Arrangements Between Qualifying Facilities and Electric Utilities

This rule is currently being revised under Project Number 24365, Rulemaking Concerning Arrangements Between Qualifying Facilities and Electric Utilities . Commenters advised that they will provide comments on this section in that proceeding.

§25.251, Renewable Energy Tariff

Reliant-HL&P commented that §25.251 should be repealed as obsolete as renewable energy pricing and marketing will be governed by the marketplace after January 2002. If not repealed, the terms "electric utility" and "utility" should be modified to specify the unbundled electric entity to which the rule applies. AEP and TXU stated that the rule should be modified to specify the applicable entity in both the new market structure and among utilities not implementing customer choice in January 2002.

The commission agrees with AEP and TXU that the rule should be modified to clarify to which entities it applies.

Division 2: Recovery of Stranded Costs

§25.261, Stranded Cost Recovery of Environmental Cleanup Costs; §25.265, Securitization by River Authorities and Electric Cooperatives

The commission received no comments on these sections.

Subchapter K, Relationships with Affiliates

§25.271, Foreign Utility Company Ownership by Exempt Holding Companies

Reliant-HL&P commented that the terms "electric utility" and "utility" should be modified to specify the unbundled electric entity subject to the requirements of the rule. In addition, subsections (c)(2)(G)(ii), (c)(2)(J), (d)(1)(G), and (e)(1) should be amended to change the ten day filing requirement to 15 days to be consistent with §25.71(f)(6) regarding due dates of reports.

The commission agrees with Reliant-HL&P that modifications to §25.271 may be necessary to accurately reflect that its provisions are also applicable to unbundled electric entities. Additionally, the commission agrees that the pertinent provisions of §25.271 that pertain to filing requirements should be amended to reflect the applicable requirements in §25.71(f)(6). Careful review and revision of §25.271 will be addressed in a future rulemaking project.

§25.272, Code of Conduct for Electric Utilities and Their Affiliates; §25.275, Code of Conduct for Municipally Owned Utilities and Electric Cooperatives Engaged in Competitive Activities

The commission received no comments on these sections.

§25.273, Contracts Between Electric Utilities and Their Competitive Affiliates

Reliant-HL&P commented that the terms "electric utility" and "utility" should be modified to specify the unbundled electric entities subject to the requirements of this section.

The commission agrees with Reliant-HL&P that this section should be amended to accurately reflect the applicability of requirements in §25.273, where appropriate, to unbundled electric entities. The commission will carefully review this section to make necessary, corresponding amendments through a future rulemaking project.

Subchapter L, Nuclear Decommissioning

§25.301, Nuclear Decommissioning Trusts

TXU and Reliant-HL&P commented that this section, especially the terms "electric utility" and "utility," need to be carefully reviewed to conform to the new relationship that will exist after unbundling between the affiliated PGC and the unbundled TDUs, i.e., the TDU will be collecting the decommissioning funds through rates but the PGC will be responsible for management of the funds.

The commission agrees that this section should be reviewed and modified to conform to the new relationships that will exist in both the new market structure and among utilities not implementing customer choice in January 2002.

Subchapter O, Unbundling and Market Power

Division 1: Unbundling

§25.341, Definitions

TXU stated that discussions are underway with commission staff and interested parties concerning the initiation of a project to address issues related to non-roadway lighting that will involve amending this section.

The commission intends to initiate a rulemaking project to review the definitions within §25.341 for possible amendment.

§25.342, Electric Business Separation

TXU commented that many of the requirements of §25.342 have already been accomplished for the utilities that will be unbundled when the retail market opens. Therefore, this section should be amended to modify the provisions related to compliance and timing, and retain only those provisions that will continue to be needed after the market opens.

The commission acknowledges that revisions to §25.342 may be necessary in order to modify the rule to accurately reflect provisions within the section that affected entities must continue to satisfy and those, to date that have been satisfied. The commission will initiate a rulemaking project in order to carefully review and amend, if necessary, this provision as appropriate.

§25.343, Competitive Energy Services

See "General comments related to Chapter 25."

§25.344, Cost Separation Proceedings

Reliant-HL&P commented that many TDUs have already filed these cases; therefore, the applicability of the rule is more limited than stated. TXU stated that the rules should be amended to modify the provisions related to applicability, compliance, and ERCOT transmission costs as many of the rule requirements have already been accomplished.

The commission recognizes, as identified by Reliant-HL&P, that many TDUs have filed and the commission has recently processed several cost separation proceedings. The commission further acknowledges that it may be necessary to modify §25.344 to accurately reflect its remaining applicability. The commission will initiate a rulemaking project to carefully review and make revisions to the rule, as necessary.

§25.345, Recovery of Stranded Costs Through Competition Transition Charge (CTC)

The commission received no comments on this section.

§25.346, Separation of Electric Utility Metering and Billing Service Costs and Activities

See "General comments related to Chapter 25."

Division 2: Independent Organizations

§25.361, Electric Reliability Council of Texas (ERCOT)

The commission received no comments on this section.

Division 3: Capacity Auction

§25.381, Capacity Auctions

The commission has established Project Number 24492, Rulemaking Proceeding to Revise Substantive Rule §25.381, Capacity Auctions to initiate changes to this section. Commenters indicated that they are participating in this proceeding regarding changes to §25.381.

Division 4: Other Market Power Issues

§25.401, Share of Installed Generation Capacity

The commission received no comments regarding this section.

Subchapter P, Pilot Projects

§25.431, Retail Competition Pilot Projects

Reliant-HL&P and RRI commented that §25.431 should be modified to reflect that it is not applicable to utilities whose territories are open to full competition January 1, 2002. TXU commented that this section may need to be modified to reflect the current status of non-ERCOT areas of the state.

The commission agrees that §25.431 does not adequately address deadlines and similar details relevant to pilot projects to be conducted in a non-ERCOT area. The commission will initiate a project to make necessary revisions to this section to respond to events that have occurred since its adoption.

Subchapter Q, System Benefit Fund

§25.451, Administration of the System Benefit Account; §25.453, Targeted Energy Efficiency Programs; §25.454, Rate Reduction Program; and §25.457, Implementation of the System Benefit Fee by the Municipally Owned Utilities and Electric Cooperatives

The commission received no comments on the sections in Subchapter Q.

Subchapter R, Customer Protection Rules for Retail Electric Service

§25.471, General Provisions of Customer Protection Rules; §25.472, Privacy of Customer Information; §25.473, Non-English Language Requirements; §25.474, Selection or Change of Retail Electric Provider; §25.475, Information Disclosures to Residential and Small Commercial Customers; §25.476, Labeling of Electricity with Respect to Fuel Mix and Environmental Impact; §25.477, Refusal of Electric Service; §25.478, Credit Requirements and Deposits; §25.479, Issuance and Format of Bills; §25.480, Bill Payment and Adjustments; §25.481, Unauthorized Charges; §25.482, Termination of Contract; §25.483, Disconnection of Service; §25.484, Do Not Call List; §25.491, Record Retention and Reporting Requirements; §25.492, Non-Compliance with Rules or Orders; Enforcement by the Commission

The commission received no comments on these sections of Subchapter R.

§25.485, Customer Access and Complaint Handling

RRI commented that subsection (b) should be revised to remove the prohibition on the right of a residential or small commercial customer to contract for alternative dispute resolution. RRI stated that customers should have the right to agree to mediation, referral to the commission or arbitration. RRI advised that any concerns regarding fairness could be dealt with through commission adoption of an approved arbitration clause or standard arbitration clauses.

The commission disagrees with RRI's proposed amendment and declines to amend this section at this time. The rule, as written, does not prohibit a company from offering arbitration or mediation alternatives, it simply prohibits a REP from requiring a customer to use such alternatives to resolve a dispute. The commission does not believe it is appropriate for a customer to be required to engage in alternative dispute resolution since a customer has a right to bring a complaint to the commission.

All comments, including any not specifically referenced herein, were fully considered by the commission.

The commission readopts Chapter 25, Substantive Rules Applicable to Electric Service Providers, pursuant to the Public Utility Regulatory Act (PURA), Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement 2002) which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and Texas Government Code §2001.039 which requires each state agency to review and readopt its rules every four years.

Cross Reference to Statutes: Texas Utilities Code Annotated, Title II, Public Utility Regulatory Act, and Title IV, Chapters 161, 163, 181, 182, 183, 184, and 185.

Subchapter A. General Provisions.

16 TAC §25.1. Purpose and Scope of Rules.

16 TAC §25.2. Cross-Reference Transition Provision.

16 TAC §25.3. Severability Clause.

16 TAC §25.4. Statement of Nondiscrimination.

16 TAC §25.5. Definitions.

16 TAC §25.6. Cost of Copies of Public Information.

Subchapter B. Customer Service and Protection.

16 TAC §25.21. General Provisions of Customer Service and Protection Rules.

16 TAC §25.22. Request for Service.

16 TAC §25.23. Refusal of Service.

16 TAC §25.24. Credit Requirements and Deposits.

16 TAC §25.25. Issuance and Format of Bills.

16 TAC §25.26. Spanish Language Requirements.

16 TAC §25.27. Retail Electric Service Switchovers.

16 TAC §25.28. Bill Payment and Adjustments.

16 TAC §25.29. Disconnection of Service.

16 TAC §25.30. Complaints.

16 TAC §25.31. Information to Applicants and Customers.

16 TAC §25.41. Price to Beat.

16 TAC §25.43. Provider of Last Resort (POLR).

Subchapter C. Quality of Service.

16 TAC §25.51. Power Quality.

16 TAC §25.52. Reliability and Continuity of Service.

16 TAC §25.53. Emergency Operations Plan.

Subchapter D. Records, Reports, and Other Required Information.

16 TAC §25.71. General Procedures, Requirements and Penalties.

16 TAC §25.72. Uniform System of Accounts.

16 TAC §25.73. Financial and Operating Reports.

16 TAC §25.74. Reports on Sale of Property and Mergers.

16 TAC §25.75. Reports on Sale of 50% or more of Stock.

16 TAC §25.76. Gross Receipts Assessment Report.

16 TAC §25.77. Payments, Compensation, and Other Expenditures.

16 TAC §25.78. State Agency Utility Account Information.

16 TAC §25.79. Equal Opportunity Reports.

16 TAC §25.80. Annual Report on Historically Underutilized Businesses.

16 TAC §25.81. Service Quality Reports.

16 TAC §25.82. Fuel Cost and Use Information.

16 TAC §25.83. Construction Reports.

16 TAC §25.84. Annual Reporting of Affiliate Transactions for Electric Utilities.

16 TAC §25.85. Report of Workforce Diversity and Other Business Practices.

16 TAC §25.87. Distribution Unbundling Reports.

16 TAC §25.89. Report of Loads and Resources.

16 TAC §25.90. Market Power Mitigation Plans.

16 TAC §25.91. Generating Capacity Reports.

Subchapter E. Certification, Licensing and Registration.

16 TAC §25.101. Certification Criteria.

16 TAC §25.102. Coastal Management Program.

16 TAC §25.105. Registration and Reporting by Power Marketers.

16 TAC §25.107. Certification of Retail Electric Providers (REPs).

16 TAC §25.108. Financial Standards for Retail Electric Providers Regarding the Billing and Collection of Transition Charges.

16 TAC §25.109. Registration of Power Generation Companies and Self-Generators.

16 TAC §25.111. Registration of Aggregators.

Subchapter F. Metering.

16 TAC §25.121. Meter Requirements.

16 TAC §25.122. Meter Records.

16 TAC §25.123. Meter Readings.

16 TAC §25.124. Meter Testing.

16 TAC §25.125. Adjustments Due to Meter Errors.

16 TAC §25.126. Meter Tampering.

16 TAC §25.127. Generating Station Meters, Instruments, and Records.

16 TAC §25.128. Interconnection Meters and Circuit Breakers.

Subchapter G. Submetering.

16 TAC §25.141. Central System or Nonsubmetered Master Metered Utilities.

16 TAC §25.142 Submetering for Apartments, Condominiums, and Mobile Home Parks.

Subchapter H. Electrical Planning.

DIVISION 1: Renewable Energy Resources and Use of Natural Gas.

16 TAC §25.172. Goal for Natural Gas.

16 TAC §25.173. Goal for Renewable Energy.

DIVISION 2: Energy Efficiency and Customer-Owned Resources.

16 TAC §25.181. Energy Efficiency Goal.

Subchapter I. Transmission and Distribution.

DIVISION 1: Open -Access Comparable Transmission Service for Electric Utilities in the Electric Reliability Council of Texas.

16 TAC §25.191. Transmission Service Requirements.

16 TAC §25.192. Transmission Service Rates.

16 TAC §25.193. Distribution Service Provider Transmission Cost Recovery Factors (TCRF).

16 TAC §25.195. Terms and Conditions for Transmission Service.

16 TAC §25.196. Standards of Conduct.

16 TAC §25.198. Initiating Transmission Service.

16 TAC §25.200. Load Shedding, Curtailments, and Redispatch.

16 TAC §25.202. Commercial Terms for Transmission Service.

16 TAC §25.203. Alternative Dispute Resolution (ADR).

DIVISION 2: Transmission and Distribution Applicable to All Electric Utilities.

16 TAC §25.211. Interconnection of On-Site Distributed Generation (DG).

16 TAC §25.212. Technical Requirements for Interconnection and Parallel Operation of On-Site Distributed Generation.

16 TAC §25.214. Terms and Conditions of Retail Delivery Service Provided by Investor Owned Transmission and Distribution Utilities.

16 TAC §25.221. Electric Cost Separation.

16 TAC §25.223. Unbundling of Energy Service.

16 TAC §25.227. Electric Utility Service for Public Retail Customers.

Subchapter J. Costs, Rates and Tariffs.

DIVISION 1: Retail Rates.

16 TAC §25.231. Cost of Service.

16 TAC §25.232. Adjustment for House Bill 11, Acts of 72nd Legislature, First Called Special Session 1991.

16 TAC §25.233. Treatment of Integrated Resource Plan Costs.

16 TAC §25.234 Rate Design.

16 TAC §25.235 Fuel Costs- General.

16 TAC §25.236 Recovery of Fuel Costs.

16 TAC §25.237 Fuel Factors.

16 TAC §25.238 Power Cost Recovery Factors (PCRF).

16 TAC §25.240. Contribution Disclosure Statements in Appeals of Municipal Utility Rates.

16 TAC §25.241. Form and Filing of Tariffs.

16 TAC §25.242. Arrangements Between Qualifying Facilities and Electric Utilities.

16 TAC §25.251. Renewable Energy Tariff.

DIVISION 2: Recovery of Stranded Costs.

16 TAC §25.261. Stranded Cost Recovery of Environmental Cleanup Costs.

16 TAC §25.265. Securitization by River Authorities and Electric Cooperatives.

Subchapter K. Relationships with Affiliates.

16 TAC §25.271. Foreign Utility Company Ownership by Exempt Holding Companies.

16 TAC §25.272. Code of Conduct for Electric Utilities and Their Affiliates.

16 TAC §25.273. Contracts Between Electric Utilities and Their Competitive Affiliates.

16 TAC §25.275. Code of Conduct for Municipally Owned Utilities and Electric Cooperatives Engaged in Competitive Activities.

Subchapter L. Nuclear Decommissioning.

16 TAC §25.301. Nuclear Decommissioning Trusts.

Subchapter O. Unbundling and Market Power.

DIVISION 1: Unbundling.

16 TAC §25.341. Definitions.

16 TAC §25.342. Electric Business Separation.

16 TAC §25.343. Competitive Energy Services.

16 TAC §25.344. Cost Separation Proceedings.

16 TAC §25.345. Recovery of Stranded Costs Through Competition Transition Charge (CTC).

16 TAC §25.346. Separation of Electric Utility Metering and Billing Service Costs and Activities.

DIVISION 2. Independent Organizations.

16 TAC §25.361. Electric Reliability Council of Texas (ERCOT).

DIVISION 3: Capacity Auction.

16 TAC §25.381. Capacity Auctions.

DIVISION 4: Other Market Power Issues.

16 TAC §25.401. Share of Installed Generation Capacity.

Subchapter P. Pilot Projects.

16 TAC §25.431. Retail Competition Pilot Projects.

Subchapter Q. System Benefit Fund.

16 TAC §25.451. Administration of the System Benefit Account.

16 TAC §25.453. Targeted Energy Efficiency Programs.

16 TAC §25.454. Rate Reduction Program.

16 TAC §25.457. Implementation of the System Benefit Fee by the Municipally Owned Utilities and Electric Cooperatives.

Subchapter R. Customer Protection Rules for Retail Electric Service.

16 TAC §25.471. General Provisions of Customer Protection Rules.

16 TAC §25.472. Privacy of Customer Information.

16 TAC §25.473. Non-English Language Requirements.

16 TAC §25.474. Selection or Change of Retail Electric Provider.

16 TAC §25.475. Information Disclosures to Residential and Small Commercial Customers.

16 TAC §25.477. Refusal of Electric Service.

16 TAC §25.478. Credit Requirements and Deposits.

16 TAC §25.479. Issuance and Format of Bills.

16 TAC §25.480. Bill Payment and Adjustments.

16 TAC §25.481. Unauthorized Charges.

16 TAC §25.482. Termination of Contract.

16 TAC §25.483. Disconnection of Service.

16 TAC §25.484. Do Not Call List.

16 TAC §25.485. Customer Access and Complaint Handling.

16 TAC §25.491. Record Retention and Reporting Requirements.

16 TAC §25.492. Non-Compliance with Rules or Orders; Enforcement by the Commission.

TRD-200201280

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Filed: March 1, 2002