WATER CODE
CHAPTER 152. RIVER AUTHORITIES ENGAGED IN DISTRIBUTION AND SALE OF
ELECTRIC ENERGY
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 26, eff. Sept. 1, 1999.
Amended by Acts 1999, 76th Leg., ch. 1064, § 24, eff. Sept. 1,
1999.
§ 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, § 26, eff. Sept. 1, 1999.
SUBCHAPTER B. NONPROFIT CORPORATION ACTING ON BEHALF OF RIVER
AUTHORITY
§ 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.
(c) Sections 5-20 and 33-36, Development Corporation Act of
1979 (Article 5190.6, Vernon's Texas Civil Statutes), apply to a
corporation created under this section, except that in those
sections:
(1) a reference to that Act 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, § 26, eff. Sept. 1, 1999.
§ 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.
(c) With regard to the issuance of an obligation, the board
of 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, § 26, eff. Sept. 1, 1999.
Amended by Acts 1999, 76th Leg., ch. 1064, § 25, eff. Sept. 1,
1999.
§ 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.
(c) The directors of the corporation serve at the will of
the river authority's board of directors.
Added by Acts 1999, 76th Leg., ch. 227, § 26, eff. Sept. 1, 1999.
§ 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.
(c) The issuance of bonds or other obligations under this
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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1,
1999.
§ 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, § 26, eff. Sept. 1,
1999.
§ 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
(C) the development or expansion of commerce in
the state.
(c) A determination by the board of directors of a river
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, § 1, eff. Sept. 1, 2001.
SUBCHAPTER C. ENERGY OR WATER CONSERVATION PROGRAMS
§ 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, § 26, eff. Sept. 1, 1999.
§ 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.
(c) A person participating in or receiving a benefit from a
conservation program shall comply with the requirements of the
program.
Added by Acts 1999, 76th Leg., ch. 227, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
SUBCHAPTER D. ECONOMIC DEVELOPMENT PROGRAMS
§ 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
(C) improve the quality or quantity of services
essential for 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
Amended by Acts 1999, 76th Leg., ch. 1064, § 27, eff. Sept. 1,
1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
SUBCHAPTER E. DEBT OBLIGATIONS OF RIVER AUTHORITY
§ 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, § 26, eff. Sept. 1, 1999.
Amended by Acts 1999, 76th Leg., ch. 1064, § 28, eff. Sept. 1,
1999.
§ 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;
or
(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
(C) an agency or corporation created or
designated by this state or the United States.
Added by Acts 1999, 76th Leg., ch. 227, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 785, § 55, eff. Sept. 1,
2003.
SUBCHAPTER F. HEDGING TRANSACTIONS
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
§ 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, § 26, eff. Sept. 1, 1999.
SUBCHAPTER G. ELECTRIC TRANSMISSION SERVICES AND FACILITIES OF
RIVER AUTHORITY
§ 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, § 29, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.108(a),
eff. Sept. 1, 2001.
§ 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, § 29, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.108(a),
eff. Sept. 1, 2001.
