Texas Utilities Code

§ 53.064 — SELF-INSURANCE

UT § 53.064Title 2. PUBLIC UTILITY REGULATORY ACT · Part C. TELECOMMUNICATIONS UTILITIES · Ch. 53. RATES · Art. B. COMPUTATION OF RATES

Statute text

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(a)A public utility may self-insure all or part of the utility's potential liability or catastrophic property loss, including windstorm, fire, and explosion losses, that could not have been reasonably anticipated and included under operating and maintenance expenses.

(b)The commission shall approve a self-insurance plan under this section if the commission finds that:

(1)the coverage is in the public interest;

(2)the plan, considering all costs, is a lower cost alternative to purchasing commercial insurance; and

(3)ratepayers will receive the benefits of the savings.

(c)In computing a utility's reasonable and necessary expenses under this subchapter, the commission, to the extent the commission finds is in the public interest, shall allow as a necessary expense money credited to a reserve account for self-insurance. The commission shall determine reasonableness under this subsection:

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Legislative history

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.