Texas Utilities Code
§ 104.003 — JUST AND REASONABLE RATES
UT § 104.003Title 3. GAS REGULATION · Part A. GAS UTILITY REGULATORY ACT · Ch. 104. RATES AND SERVICES · Art. A. GENERAL PROVISIONS
Statute text
View on source(a)The regulatory authority shall ensure that each rate a gas utility or two or more gas utilities jointly make, demand, or receive is just and reasonable. A rate may not be unreasonably preferential, prejudicial, or discriminatory but must be sufficient, equitable, and consistent in application to each class of consumer. In establishing a gas utility's rates, the railroad commission may treat as a single class two or more municipalities that a gas utility serves if the commission considers that treatment to be appropriate.
(b)A rate for a pipeline-to-pipeline transaction or to a transportation, industrial, or similar large volume contract customer is considered to be just and reasonable and otherwise to comply with this section and shall be approved by the regulatory authority if:
(1)neither the gas utility nor the customer had an unfair advantage during the negotiations;
(2)the rate is substantially the same as the rate between the gas utility and at least two of those customers under the same or similar conditions of service; or
(3)competition does or did exist with another gas utility, another supplier of natural gas, or a supplier of an alternative form of energy.
(c)Subsection (b) does not apply:
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Legislative history
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.