TITLE 16. ECONOMIC REGULATION

PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 22. PROCEDURAL RULES

The Public Utility Commission of Texas (commission) proposes amendments to 19 Chapter 22 procedural rules. The scope of this rulemaking proceeding is limited to consideration of the proposed rule amendments, additional modifications to these rules that are reasonably related to the proposed changes, and other minor and nonsubstantive amendments. Substantive amendments to these rules not related to the proposed changes are not within the scope of this proceeding.

The proposed amendments are listed in order as follows for (Subchapters A through F): Subchapter A, §22.2, relating to Definitions, §22.3, relating to Standards of Conduct, §22.4, relating to Computation of Time; Subchapter B, §22.21, relating to Meetings, §22.23 relating to Delegation of Authority to Request Representation by the Attorney General; Subchapter C, §22.31, relating to Classification in General; Subchapter D, §22.52, relating to Notice in Licensing Proceedings, §22.53, relating to Notice of Regional Hearings, §22.56, relating to Notice of Unclaimed Funds; Subchapter E, §22.74, relating to Service of Pleadings and Documents, §22.75, relating to Examination and Correction of Pleadings and Documents, §22.76, relating to Amended Pleadings, §22.77, relating to Motions, §22.78, relating to Responsive Pleadings and Emergency Action, §22.79, relating to Continuances, §22.80, relating to Commission Prescribed Forms; Subchapter F, §22.101, relating to Representative Appearances, §22.103, relating to Standing to Intervene, and §22.104, relating to Motions to Intervene.

Rule Review Stakeholder Recommendations

On May 3, 2025, commission staff filed a preliminary notice and request for comments which was published in the Texas Register on May 17, 2024, at (49 TexReg 3635). Comments were received from the Alliance for Retail Markets (ARM) and the Texas Energy Association for Marketers (TEAM), collectively (REP Coalition); Entergy Texas, Inc. (Entergy); the Lower Colorado River Authority and LCRA Transmission Services Corporation (LCRA); the Office of Public Utility Counsel (OPUC); Oncor Electric Delivery Company, LLC (Oncor); the Steering Committee of Cities Served by Oncor (OCSC); Texas Association of Water Companies, Inc. (TAWC); the Texas Rural Water Association (TRWA); Texas-New Mexico Power Company (TNMP); and Vistra Corporation (Vistra). Based upon filed comments and an internal review by commission staff, the commission proposes the following rule changes.

The proposed changes would amend §22.2, relating to Definitions, by revising the definition of "contested case" to directly refer to the definition provided by the Texas Administrative Procedure Act (APA) codified in Texas Government Code, Chapter 2001; revising the definition of "Retail Public Utility" to directly refer to the definition provided by Chapter 13 of the Texas Water Code, add the definition of "commission filing system," add PURA §36.112 to the definition of "major rate proceeding" correct the citation to the Federal Telecommunications Act of 1996 in the definition of "FT96," delete the definitions of "docket", "hearing day," "PWS" which stood for Public Water System, and "WQ" which stood for a Water Quality discharge permit, and make clerical and grammatical changes to several definitions.

The proposed changes would amend §22.3, relating to Standards of Conduct, to clarify prohibited ex parte communications, elaborate upon the procedure for motions for disqualification or recusal of an administrative law judge, and more appropriately differentiate between the standards of recusal for administrative law judges and the standards for recusal for commissioners.

The proposed changes would amend §22.52, relating to Notice in Licensing Proceedings to replace the requirement for notice by newspaper of electric and telephone licensing proceedings with a requirement to provide notice through the applicant's website and an appropriate medium of communication such as social media, that is general available in the county or counties where a certificate of convenience and necessity (CCN) is being requested. For electric licensing proceedings, the proposed changes further require proof of notice to be provided in the form of an affidavit identifying the webpage where the notice can be viewed, the date of publication, and a copy of the notice. The proposed changes also require proof of notice of any modifications to an electric CCN prior to final approval to be established by an affidavit affirming notice was issued by first-class mail to each landowner directly affected by the modification as listed on the current county tax rolls.

The proposed changes would amend §22.74, relating to Service of Pleadings and Documents to make e-mail the default method of service for contested case matters under the commission's jurisdiction while providing for alternative methods of service such as by mail, agent, or courier.

The proposed changes would amend §22.75, relating to Examination and Correction of Pleadings and Documents by replacing the requirement for the filing clerk to not accept documents that do not comply with the form requirements of §22.72 with an authorization for the presiding officer to require the re-filing documents that do not comply with the form requirements of §22.72. The revisions further specify that motions for rehearing or replies to a motion for rehearing that are required to be re-filed will retain the original filing date. The proposed changes also remove the automatic determination of sufficiency if the presiding officer has not issued a written order concluding that material deficiencies exist in an application within 35 days of filing of a rate change or CCN application.

The proposed changes would amend §22.77, relating to Motions, to require written motions to include a certificate of conference that substantially complies with one of the two examples provided.

The proposed changes would amend §22.79, relating to Continuances to streamline the requirements and process for filing continuances agreed to by all parties.

The proposed changes would amend §22.80, relating to Commission Prescribed Forms to eliminate the general requirement for certain reports and applications be submitted on standard forms, the requirement for the commission filing clerk to maintain an index and set of all commission forms, and the requirement for documents subject to an official form to contain all matters designated in the form and to conform substantially to the official form. The proposed changes also eliminate certain procedural requirements for commission forms and clarify that, in the event a form conflicts with the underlying statute or rule associated with that form, the statute or rule prevails.

The proposed changes would amend §22.104, relating to Motions to Intervene to require motions to intervene to include the email address of the person requesting to intervene unless the motion is accompanied by a statement of no access under §22.106. The proposed change would also delete the deadline for the commission to rule on a motion to intervene.

The proposed changes would make minor and conforming changes to the aforementioned rules and to §22.4, relating to Computation of Time; §22.21, relating to Meetings; §22.23 relating to Delegation of Authority to Request Representation by the Attorney General; §22.31, relating to Classification in General; §22.53, relating to Notice of Regional Hearings, §22.56, relating to Notice of Unclaimed Funds; §22.78, relating to Responsive Pleadings and Emergency Action; §22.101, relating to Representative Appearances; and §22.103, relating to Standing to Intervene.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rules are in effect, the following statements will apply:

(1) the proposed rules will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rules will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rules will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rules will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rules will not create a new regulation;

(6) the proposed rules will expand, limit, or repeal an existing regulation;

(7) the proposed rules will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rules will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rules. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rules will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Davida Dwyer, Deputy Director, Office of Policy and Docket Management, has determined that for the first five-year period the proposed rules are in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Ms. Dwyer has determined that for each year of the first five years the proposed sections are in effect the public benefit anticipated as a result of enforcing the sections will be more efficient and clear rules of practice and procedure for matters before the commission. There will be probable economic costs to persons required to comply with the rules under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

For each year of the first five years the proposed sections are in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by Wednesday, September 10, 2025. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by Wednesday, September 10, 2025. Comments must be organized by rule section in sequential order, and each comment must clearly designate which section is being commented on. The commission invites specific comments regarding the effects of the proposed rules, including the costs associated with, and benefits that will be gained by the proposed amendments. The commission also requests any data, research, or analysis from any person required to comply with the proposed rules or any other interested person. The commission will consider the information submitted by commenters and the costs and benefits of implementation in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 58400.

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

SUBCHAPTER A. GENERAL PROVISIONS AND DEFINITIONS

Statutory Authority

The proposed amendments are proposed for publication under PURA §14.001, which provides the commission with the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; PURA §14.002 and PURA §14.052 and Texas Water Code §13.041(b), which provide the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission and, as applicable, practice and procedure before the State Office of Administrative Hearings.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 14.052 and Texas Water Code §13.041(b); PURA §§12.004, 12.202, 14.153, 37.054 and 37.057; and Texas Government Code §2001.051 and 2001.052.

§ 22.2. Definitions.

The following terms, when used in this chapter, [shall] have the following meanings, unless the context or specific language of a section clearly indicates otherwise:

(1) Administrative law judge--The person designated to preside over a proceeding [hearing].

(2) APA--The Texas Administrative Procedure Act, codified at Chapter [chapter] 2001, Texas Government Code[, as it may be amended from time to time].

(3) Administrative review--The process [Process] under which an application submitted to the commission may be decided [approved] without a formal hearing.

(4) Affected person--For a matter involving an entity that provides electric or telecommunications service, the definition of affected person has the meaning provided by [is that definition given in] PURA §11.003(1). For a matter involving an entity that provides water or sewer service, the definition of affected person has the meaning provided by [is that definition given in] TWC §13.002(1).

(5) Applicant--A person, including commission staff, who seeks action from the commission by written application, petition, complaint, notice of intent, appeal, or other pleading that initiates a proceeding.

(6) Application--A written application, petition, complaint, notice of intent, appeal, or other pleading that initiates a proceeding.

(7) Arbitration--A form of dispute resolution in which each party presents its position on any unresolved issues to an impartial third person [person(s)] who renders a decision on the basis of the information and arguments submitted.

(8) Arbitration hearing--The hearing conducted by an arbitrator to resolve any issue submitted to the arbitrator. An arbitration hearing is not a contested case under the APA [Administrative Procedure Act, Texas Government Code §§2001.001, et. seq].

(9) Arbitrator--The commission, any commissioner, any commission employee, or any SOAH administrative law judge selected to serve as the presiding officer in a compulsory arbitration hearing.

(10) Authorized representative--A person who enters an appearance on behalf of a party, or on behalf of a person seeking to be a party or otherwise to participate[,] in a proceeding. The appearance may be entered in person or by subscribing the representative's name upon any pleading filed on behalf of the party or person seeking to be a party or otherwise to participate in the proceeding. The authorized representative is [shall be] considered to remain a representative of record unless a statement or pleading to the contrary is filed or stated in the record.

(11) Chairman--The commissioner designated by the Governor of the State of Texas to serve as chairman of the commission.

(12) Commission--The Public Utility Commission of Texas.

(14) [(13)] Commissioner--One of the appointed members of the Public Utility Commission of Texas.

(15) [(14)] Complainant--A person, including commission staff or the Office of Public Utility Counsel, who files a complaint intended to initiate a proceeding with the commission regarding any act or omission by [the commission or] any person subject to the commission's jurisdiction.

(16) [(15)] Compulsory arbitration--The arbitration proceeding conducted by the commission or its designated arbitrator in accordance with the commission's authority under FTA96 §252.

(17) [(16)] Contested case--A proceeding as defined by APA §2001.003(1) [, including a ratemaking or licensing proceeding, in which the legal rights, duties, or privileges of a party are to be determined by a state agency after an opportunity for adjudicative hearing].

(18) [(17)] Control number--The number [Number] assigned by Central Records to a docket, project, or tariff control proceeding.

(19) [(18)] Days--Calendar days, not working days, unless otherwise specified by this chapter or the commission's substantive rules.

(20) FTA96--The federal Telecommunications Act of 1996, codified under Title 47, United States Code §§151 et seq [Public Law Number 104-104, 110 Stat. 56 (1996), (to be codified at 47 U.S.C. §§151 et seq.)].

(21) Final order--The [whole or part of the] final disposition, in whole or in part, by the commission of the issues before the commission in a proceeding, rendered in accordance [compliance] with §22.263 of this title (relating to Final Orders).

(22) Financial interest--Any legal or equitable interest, or any relationship as officer, director, trustee, advisor, or other active participant in the affairs of a party. An interest as a taxpayer, utility ratepayer, or cooperative member is not a financial interest. An interest a person holds indirectly by ownership of an interest in a retirement system, institution, or fund which in the normal course of business invests in diverse securities independently of that person's control is not a financial interest.

(23) Hearing--Any proceeding at which evidence is taken on the merits of the matters at issue, not including prehearing conferences.

(24) [(25)] Intervenor--A person, other than the applicant, respondent, or [the] commission staff representing the public interest, who is permitted by law [this chapter] or by ruling of the presiding officer, to become a party to a proceeding.

(25) [(26)] Licensing proceeding--Any proceeding involving [respecting] the granting, denial, renewal, revocation, suspension, annulment, withdrawal, or amendment of a license, including a proceeding regarding a notice of intent to build a new electric generating unit.

(26) [(27)] Major rate proceeding--Any proceeding filed under PURA[,] §§36.101 - 36.112 [36.111], 36.201 - 36.203, [and] 36.205, [or §§]51.009, 53.101 - 53.113, 53.201, or [and] 53.202 involving an increase in rates which would increase the aggregate revenues of the applicant more than the greater of $100,000 or 2.5%. In addition, a major rate proceeding is any rate proceeding initiated under PURA[,] §§36.151 - 36.156, [or §]53.151, or [and §]53.152 in which the respondent utility is directed to file a rate filing package. For water and sewer utilities, a rate filing package filed under TWC §13.187 is a major rate proceeding.

(27) [(28)] Mediation--A voluntary form of dispute resolution in which an impartial person facilitates communication between parties to promote negotiation and settlement of disputed issues.

(28) [(29)] Municipality--A city, incorporated village, or town, existing, created, or organized under the general, home-rule, or special laws of Texas. A municipality is a person as defined in this section.

(29) [(30)] Party--A party under subchapter F of this chapter (relating to Parties).

(30) [(31)] Person--An individual, partnership, corporation, association, governmental subdivision, entity, or public or private organization.

(31) [(32)] Pleading--A written document submitted by a party, or a person seeking to intervene [participate] in a proceeding, setting forth allegations of fact, claims, requests for relief, legal argument, and/or other matters relating to a proceeding.

(32) [(33)] Prehearing conference--Any conference or meeting of the parties, prior to the hearing on the merits, on the record and presided over by the presiding officer.

(33) [(34)] Presiding officer--The commission, any commissioner, or any hearings examiner or administrative law judge presiding over a proceeding or any portion thereof.

(34) [(35)] Proceeding--Any hearing, investigation, inquiry or other fact-finding or decision-making procedure, including the denial of relief or the dismissal of a complaint, conducted by the commission or the utility division of SOAH.

(35) [(36)] Project--A rulemaking or other proceeding that is not a docket or a tariff control proceeding.

(36) [(37)] Protestor--A person who is not a party to the case who submits oral or written comments. A person classified as a protestor does not have rights to participate in a proceeding other than by providing oral or written comments.

(37) [(38)] PURA--The Public Utility Regulatory Act, Texas Utilities Code, Title 2, as amended [it may be amended from time to time].

(38) [(40)] Relative--An individual, [(]or spouse of an individual, [)] who is related to the individual in issue, [(]or the spouse of the individual in issue,[)] within the second degree of consanguinity or relationship according to the civil law system.

(39) [(41)] Respondent--A person under the commission's jurisdiction against whom any complaint or appeal has been filed or who is under formal investigation by the commission.

(40) [(42)] Retail Public Utility--has the meaning as defined by Texas Water Code §13.002(19) [Any person, corporation, public utility, water supply or sewer service corporation, municipality, political subdivision or agency operating, maintaining, or controlling in this state facilities for providing potable water service or sewer service, or both, for compensation].

(41) [(43)] Rulemaking--A proceeding under the APA, Texas Government Code, Chapter [chapter] 2001, subchapter B, conducted to adopt, amend, or repeal a commission rule.

(42) [(44)] SOAH--The State Office of Administrative Hearings.

(43) [(45)] TCEQ--The Texas Commission on Environmental Quality.

(44) [(46)] TWC--The Texas Water Code, as amended [it may be amended from time to time].

(45) [(48)] Working day--A day on which the commission is open for the conduct of business.

§ 22.3. Standards of Conduct.

(a) Standards of Conduct [for Parties].

(1) Every person appearing in any proceeding must [shall] comport himself or herself with dignity, courtesy, and respect for the commission, the presiding officer, and all other persons participating in the proceeding. Professional representatives must [shall] observe and practice the standard of ethical and professional conduct prescribed for their professions.

(2) (No change.)

(c) Standards for Recusal or Disqualification of Administrative Law Judges. An administrative law judge will [shall] disqualify himself or herself or will [shall] recuse himself or herself on the same grounds and under the same circumstances as specified in Rule 18b of the Texas Rules of Civil Procedure.

(d) [(e)] Motions for Disqualification or Recusal of an Administrative Law Judge.

(1) Any party may move for disqualification or recusal of an administrative law judge stating with particularity the grounds why the administrative law judge should not sit. [The grounds may include any disability or matter, not limited to those set forth in subsection (c) of this section.] The motion must: [shall]

(A) be made on personal knowledge; [,]

(B) [shall] set forth such facts as would be admissible in evidence; [,] and

(C) [shall] be verified by affidavit.

(2) The motion must [shall] be filed within ten working days after the facts that are the basis of the motion become known to the party, or within 15 working days of the commencement of the proceeding, whichever is later. The motion must [shall] be served on all parties in accordance with §22.74 of this title (relating to Service of Pleadings and Documents) [by hand delivery, facsimile transmittal, or overnight courier delivery].

(3) A party's response to a motion [Written responses to motions] for disqualification or recusal must [shall] be in writing and filed within three working days after the filing [receipt] of the motion. The administrative law judge may require that responses be made orally at a prehearing conference or hearing.

(4) The administrative law judge will [shall] rule on the motion for disqualification or recusal within ten [six] working days of the filing of the motion. No hearing will be held on a motion for disqualification or recusal unless ordered by the presiding officer.

(5) The administrative law judge will [shall] not rule on any other issues in the proceeding while a motion for disqualification or recusal is pending [that are the subject of a pending motion for recusal or disqualification]. In a case that has been referred to SOAH, SOAH will [shall] appoint another administrative law judge to preside on all matters that are the subject of the motion for recusal until the issue of disqualification is resolved.

(6) - (7) (No change.)

(8) Disqualification or recusal of an administrative law judge, in and of itself, has no effect upon the validity of rulings made or orders issued prior to the time the motion for recusal or disqualification was filed.

(f) Motion for [Disqualification or] Recusal of a Commissioner.

(1) Any party may move for [disqualification or] recusal of a commissioner stating with particularity grounds why the commissioner should not sit. Such a motion must be filed prior to the date the commission is scheduled to consider the matter unless the information upon which the motion is based was not known or discoverable with reasonable effort prior to that time. [The grounds may include any disability or matter not limited to those set forth in subsection (d) of this section.] The motion must: [shall]

(A) be made on personal knowledge,

(B) [shall] set forth such facts as would be admissible in evidence, and

(C) [shall] be verified by affidavit.

(2) Subject to the provisions of paragraph (1) of this subsection the motion must [shall] be filed within ten working days after the facts that are the basis of the motion become known to the party or within 15 days of the commencement of the proceeding, whichever is later. The motion must [shall] be served on all parties and the commissioner for whom disqualification or recusal is sought in accordance with §22.74 of this title [by hand delivery, facsimile transmission, or overnight courier delivery].

(3) Parties may file written responses to the motion within seven working days from the date of filing the motion. The commission may require that responses be made orally at an open meeting.

(4) The commissioner sought to be disqualified will [shall] issue a decision as to whether he or she agrees that recusal [or disqualification] is appropriate or required before the commission is scheduled to act on the matter for which recusal is sought, or within 15 days after filing of the motion, whichever occurs first.

(5) The parties to a proceeding may waive any ground for recusal [or disqualification] after it is fully disclosed on the record, either expressly or by their failure to take action on a timely basis.

(6) Recusal [or disqualification] of a commissioner, in and of itself, has no effect upon the validity of rulings made or orders issued prior to the time the motion for recusal was filed.

§ 22.4. Computation of Time.

(a) Counting Days. In computing any period of time prescribed or allowed by this chapter, by order of the commission or any administrative law judge, or by any applicable statute, the period begins [shall begin] on the day after the act, event, or default in question. The period concludes [shall conclude] on the last day of the designated period unless that day is not a working day [a day the commission is not open for business], in which event the designated period runs until the end of the next working day [on which the commission is open for business].

(b) Extensions. Unless otherwise provided by statute, the time for filing any documents may be extended by the presiding officer, upon the filing of a motion, prior to the expiration of the applicable period of time, showing that there is good cause for such extension of time and that the need for the extension is not caused by the neglect, indifference, or lack of diligence of the party making the motion.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502706

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

SUBCHAPTER B. THE ORGANIZATION OF THE COMMISSION

Statutory Authority

The proposed amendments are proposed for publication under PURA §14.001, which provides the commission with the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; PURA §14.002 and PURA §14.052 and Texas Water Code §13.041(b), which provide the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission and, as applicable, practice and procedure before the State Office of Administrative Hearings.

§22.23 relating to Delegation of Authority to Request Representation by the Attorney General

Amended §22.23 is proposed under PURA §12.004 which requires the Texas Office of the Attorney General to represent the commission in a matter before a state court, a court of the United States, or a federal public utility regulatory commission.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 14.052 and Texas Water Code §13.041(b); PURA §§12.004, 12.202, 14.153, 37.054 and 37.057; and Texas Government Code §2001.051 and 2001.052.

§ 22.21. Meetings.

(a) The commission will [shall] meet at times and places to be determined either by the chairman of the commission or by agreement of a majority [any two] of the commissioners.

(b) The chairman of the commission will [shall] preside over any proceeding or meeting of the commission, unless some other commissioner is designated by the chairman to preside.

(c) Notice of all commission meetings will [shall] be provided in accordance with the Open Meetings Act, Texas Government Code, Chapter 551, as amended, and the APA [Administrative Procedure Act].

§ 22.23. Delegation of Authority to Request Representation by the Attorney General.

(a) (No change.)

(b) In the event the chairman is unavailable, the commission delegates the authority granted in subsection (a) of this section to any other commissioner. If no commissioner is available, the commission delegates the authority granted in subsection (a) of this section to the executive director or his or her authorized representative.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502707

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

SUBCHAPTER C. CLASSIFICATION OF APPLICATIONS OR OTHER DOCUMENTS INITIATING A PROCEEDING

Statutory Authority

The proposed amendment is proposed for publication under PURA §14.001, which provides the commission with the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; PURA §14.002 and PURA §14.052 and Texas Water Code §13.041(b), which provide the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission and, as applicable, practice and procedure before the State Office of Administrative Hearings.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 14.052 and Texas Water Code §13.041(b); PURA §§12.004, 12.202, 14.153, 37.054 and 37.057; and Texas Government Code §2001.051 and 2001.052.

§ 22.31. Classification in General.

(a) Classification and assignment of control number. Central Records will [shall] determine whether an application or other document initiating a proceeding should be designated as a docket, tariff control, or project. Central Records will [shall] assign an appropriate control number to each docket, tariff control, or project.

(b) Control numbering system. Central Records will [shall] establish and maintain a control numbering system.

(c) Control number log. Central Records will [shall] maintain a record or log of all applications or other documents assigned a control number, which will [shall] include the style, the date the application or other document was filed or the proceeding initiated, the nature of the proceeding, and the presiding officer assigned to the proceeding, if any. The log will [shall] be accessible to the public.

(d) Control number assignment. A control number will be assigned to a proceeding [docket] only at the time of filing an application unless otherwise required by rule or on approval of the director of the Office of Policy and Docket Management [Commission Advising and Docket Management Division] or the director's designee.

(e) Closing unused control numbers. Any control number assigned [to a docket] before the filing of an application may [will] be closed by the presiding officer if the application is not filed within 25 days of assignment of the control number [ unless otherwise directed by the director of the Commission Advising and Docket Management Division or the director's designee].

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502708

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

SUBCHAPTER D. NOTICE

Statutory Authority

The proposed amendments are proposed for publication under PURA §14.001, which provides the commission with the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; PURA §14.002 and PURA §14.052 and Texas Water Code §13.041(b), which provide the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission and, as applicable, practice and procedure before the State Office of Administrative Hearings.

For rules relating to Notice under Subchapter D, §§22.51-22.56

Amended §§22.52, 22.53, and 22.56 are proposed under Texas Government Code §2001.051 which entitles each party in a contested case to a hearing and an opportunity to respond and to present evidence and argument on each issue involved in the case; and Texas Government Code §2001.052 which specifies the requirements for the contents of a notice of a hearing in a contested case.

§22.52, relating to Notice in Licensing Proceedings

Amended §22.52 is proposed under PURA §37.054 which requires the commission to provide notice of an application for a certificate to interested parties and to the Office of Public Utility Counsel and set a time and place for a hearing and give notice of the hearing; and PURA §37.057 which requires the commission to approve or deny an application for a certificate for a new transmission facility not later than the 180th day after the date the application is filed.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 14.052 and Texas Water Code §13.041(b); PURA §§12.004, 12.202, 14.153, 37.054 and 37.057; and Texas Government Code §2001.051 and 2001.052.

§ 22.52. Notice in Licensing Proceedings.

(a) Notice in electric licensing proceedings. In all electric licensing proceedings except minor boundary changes and service area exceptions, the applicant must give notice in the following ways:

(1) On the day the application is filed with the commission, the applicant [Applicant] must publish notice [once of] the applicant's intent to secure or amend a certificate of convenience and necessity on the applicant's website and through an appropriate medium of communication, such as social media, that is generally available [in a newspaper having general circulation] in the county or counties where a certificate of convenience and necessity is being requested[, no later than the week after the application is filed with the commission]. The notice published on the applicant's website must be easily locatable from the homepage of the applicant's website and published for the duration of the proceeding. This notice must identify the commission's docket number and the style assigned to the case by Central Records. In electric transmission line cases, the applicant must obtain the docket number and style no earlier than 25 days prior to making the application by filing a preliminary pleading requesting a docket assignment. The notice must identify in general terms the type of facility if applicable, and the estimated expense associated with the project. The notice must describe all routes without designating a preferred route or otherwise suggesting that a particular route is more or less likely to be selected than one of the other routes.

(A) (No change.)

(B) The notice must describe in clear, precise language the geographic area for which the certificate is being requested and the location of any [all] alternative routes of the proposed facility. This description must refer to area landmarks, including [but not limited to geographic landmarks, municipal and county boundary lines, streets, roads, highways, railroad tracks, and any other readily identifiable points of reference, unless no such references exist for the geographic area. In addition, the notice must include a map that identifies any [all] of the alternative locations of the proposed routes and all major roads, transmission lines, and other features of significance to the areas that are used in the utility's written notice description.

(C) The notice must state a location where a detailed routing map may be reviewed. The map must clearly and conspicuously illustrate the location of the area for which the certificate is being requested including all the alternative locations of the proposed routes, and must reflect area landmarks, including [but not limited to] geographic landmarks, municipal and county boundary lines, streets, roads, highways, railroad tracks, and any other readily identifiable points of reference, unless no such references exist for the geographic area.

(D) Proof of publication of notice must be in the form of an [a publisher's] affidavit which must specify each medium of communication [newspaper] in which the notice was published, the county or counties in which each medium of communication is generally available [newspaper is of general circulation], the dates upon which the notice was published, and a copy of the notice as published. Proof of publication must be submitted to the commission as soon as available. Proof of notice on a utility's website must be in the form of an affidavit that includes the hyperlink identifying the webpage on which the notice can be viewed, the date upon which the notice was first published. and a copy of the notice as published.

(E) (No change.)

(2) The applicant must on the date it files an application, [Applicant must, upon filing an application, also] mail notice of its application to municipalities within five miles of the requested territory or facility, neighboring utilities providing the same utility service within five miles of the requested territory or facility, each county government for all counties in which any portion of the proposed facility or requested territory is located, and the Department of Defense Military Aviation and Installation Assurance Siting Clearinghouse. In addition, the applicant must, upon filing the application, serve the notice on the Office of Public Utility Counsel using a method specified in §22.74(b) of this title (relating to Service of Pleadings and Documents). The notice must contain the information as set out in paragraph (1) of this subsection and a map as described in paragraph (1)(C) of this subsection. An affidavit attesting to the provision of notice to municipalities, utilities, counties, the Department of Defense Military Aviation and Installation Assurance Siting Clearinghouse, and the Office of Public Utility Counsel must specify the dates of the provision of notice and the identity of the individual municipalities, utilities, and counties to which such notice was provided. Before final approval of any modification to the applicant's proposed route, applicant must provide notice as required under this paragraph to municipalities, utilities, and counties affected by the modification which have not previously received notice. The notice of modification must state such entities will have 20 days to intervene.

(3) The applicant [Applicant] must, on the date it files an application, mail notice of its application to the owners of land, as stated on the current county tax rolls, who would be directly affected by the requested certificate. For purposes of this paragraph, land is directly affected if an easement or other property interest would be obtained over all or any portion of it, or if it contains a habitable structure that would be within 300 feet of the centerline of a transmission project of 230kV or less, or within 500 feet of the centerline of a transmission project greater than 230kV. For purposes of this paragraph, land is also directly affected if it is adjacent to a property on which a substation proposed to be authorized by the certificate of convenience and necessity will be located or is directly across a highway, road, or street that is adjacent to a property on which such a substation will be located.

(A) - (C) (No change.)

(D) Issuance of notice prior to final approval. Before final approval of any modification in the applicant's proposed route, applicant must provide notice as required under subparagraphs (A) through (C) of this paragraph to all [directly affected] landowners directly affected by the modification who have not already received [such] notice. Proof of notice of the modification may be established by an affidavit affirming that the applicant sent notice by first-class mail to each landowner directly affected by the modification as listed on the current county tax rolls.

(E) - (F) (No change.)

(4) The utility must hold at least one public meeting prior to the filing of its licensing application if 25 or more persons would be entitled to receive direct mail notice of the application. Direct mail notice of the public meeting must be sent by first-class mail to each of the persons listed on the current county tax rolls as an owner of land within 300 feet of the centerline of a transmission project of 230kV or less, an owner of land within 500 feet of the centerline of a transmission project greater than 230kV, an owner of land adjacent to a property on which a substation proposed to be authorized by the certificate of convenience and necessity will be located, or an owner of land directly across a highway, road, or street that is adjacent to such a substation. The utility must also provide written notice to the Department of Defense Military Aviation and Installation Assurance Siting Clearinghouse of the public meeting. In the notice for the public meeting, at the public meeting, and in other communications with a potentially affected person, the utility must not describe routes as preferred routes or otherwise suggest that a particular route is more or less likely to be selected than one of the other routes. If [In the event that] no public meeting is held, the utility must provide written notice to the Department of Defense Military Aviation and Installation Assurance Siting Clearinghouse of the planned filing of an application prior to completion of the routing study.

(5) - (7) (No change.)

(b) Notice in telephone licensing proceedings. In all telephone licensing proceedings, except minor boundary changes, applications for a certificate of operating authority, or applications for a service provider certificate of operating authority, the applicant must give notice in the following ways:

(1) On the day the application is filed with the commission, the applicant must publish notice the applicant's intent to secure or amend a certificate of convenience and necessity on the applicant's website and through an appropriate medium of communication, such as social media, that is generally available in the county or counties where a certificate of convenience and necessity is being requested. The notice published on the applicant's website must be easily locatable from the homepage of the applicant's website and published for the duration of the proceeding. This notice must identify the commission's docket number and the style assigned to the case by Central Records. [Applicants must publish in a newspaper having general circulation in the county or counties where a certificate of convenience and necessity is being requested, once each week for two consecutive weeks, beginning the week after the application is filed, notice of the applicant's intent to secure a certificate of convenience and necessity.] This notice must identify in general terms the types of facilities, if applicable, the area for which the certificate is being requested, and the estimated expense associated with the project. The notice must [Whenever possible, the notice should] state the established intervention deadline. The notice must also include the following statement: "Persons with questions about this project should contact (name of utility contact) at (utility contact telephone number). Persons who wish to intervene in the proceeding or comment upon action sought, should contact the Public Utility Commission, P.O. Box 13326, Austin, Texas 78711-3326, or call the Public Utility Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech-impaired individuals may contact the commission through Relay Texas at 1-800-735-2989. The deadline for intervention in the proceeding is (date 70 days after the date the application was filed with the commission) and you must send a letter requesting intervention to the commission which is received by that date." Proof of publication of notice must be in the form of a publisher's affidavit, which must specify the medium of communication by [newspaper or newspapers in] which the notice was published; the county or counties in which the medium of communication is generally available [newspaper or newspapers is or are of general circulation]; the dates upon which the notice was published and a copy of the notice as published. Proof of publication must be submitted to the commission as soon as available.

(2) - (3) (No change.)

§ 22.53. Notice of Regional Hearings.

The presiding officer may require the utility that is the subject of a proceeding to publish conspicuous notice of a regional hearing through a medium of communication that is generally available in the [in newspapers of general circulation in the general] area of the hearing and to provide other reasonable notice to customers and affected municipalities.

§ 22.56. Notice of Unclaimed Funds.

The applicant must [shall] notify the Comptroller of Public Accounts of proceedings in which there may be a specific amount of money to be refunded to ratepayers who may need to be located. This rule does [shall] not apply in fuel refund proceedings.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502709

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

SUBCHAPTER E. PLEADINGS AND OTHER DOCUMENTS

Statutory Authority

The proposed amendments are proposed for publication under PURA §14.001, which provides the commission with the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; PURA §14.002 and PURA §14.052 and Texas Water Code §13.041(b), which provide the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission and, as applicable, practice and procedure before the State Office of Administrative Hearings.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 14.052 and Texas Water Code §13.041(b); PURA §§12.004, 12.202, 14.153, 37.054 and 37.057; and Texas Government Code §2001.051 and 2001.052.

§ 22.74. Service of Pleadings and Documents.

(a) Pleadings and Documents submitted to a presiding officer. At or before the time any document or pleading regarding a proceeding is submitted by a party to a presiding officer, a copy of such document or pleading must [shall] be filed in accordance with §22.71 of this title (relating to Commission Filing Requirements and Procedures) [with the commission filing clerk] and served on all parties. These requirements do not apply to documents that [which] are offered into evidence during a hearing or that [which] are submitted to a presiding officer for in camera inspection; provided, however, that the party submitting documents for in camera inspection must [shall] file and serve notice of the submission upon the other parties to the proceeding. Pleadings and documents submitted to a presiding officer during a hearing, prehearing conference, or open meeting must [shall] be filed with Central Records [the commission filing clerk] as soon as is practicable. Service must be made on all parties. [These requirements apply to all documents and pleadings submitted in a proceeding under §22.33 of this title (relating to Tariff Filings); service shall be made on all persons who previously submitted a pleading or document to the presiding officer in that proceeding.]

(b) Methods of service. Except as otherwise expressly provided by order, rule, or other applicable law, service on a party may be made by delivery of a copy of the pleading or document to the party's authorized representative or attorney of record by email; in person [either in person]; by agent; by courier receipted delivery; by first class mail; by certified mail, return receipt requested; or by registered mail to such party's address of record[, or by facsimile transmission to the recipient's current facsimile machine].

(1) Service by email is complete upon sending an email message with the pleading or document attached to the message to the email address of record for the party that was provided [Service by mail shall be complete upon deposit of the document, enclosed in a wrapper properly addressed, stamped and sealed, in a post office or official depository of the United States Postal Service, except for state agencies. For state agencies, mailing shall be complete upon deposit of the document with the General Services Commission].

(2) Service by filing with notice is complete upon sending an email message that contains a link to the electronic copy of the pleading or document that is accessible through the interchange on the commission's website to the email address provided by the party being served [Service by agent or by courier receipted delivery shall be complete upon delivery to the agent or courier].

(3) Service by filing without notice is complete upon filing with Central Records. If this method of service is required, the presiding officer will encourage parties to sign up with the commission's Filings Notification System on its website to receive automatic notifications of filings in the docket [Service by facsimile transmission shall be complete upon actual receipt by the recipient's facsimile machine].

(c) Alternative methods of service. If a person has filed a statement of no access under §22.106 of this title (relating to Statement of No Access), service on such a person must be made by delivery of a copy of the pleading or document to the party or the party's authorized representative or attorney of record either by hand delivery; by courier receipted delivery; by first class mail; by certified mail, return receipt requested; or by registered mail to such party's address of record.

(2) Service by agent or by courier receipted delivery is complete upon delivery to the agent or courier. [On motion of a party or the presiding officer's own motion, the presiding officer may require service by email or service by filing with or without notice, or any combination of those methods and any method specified in subsection (b) of this section. On joint or separate motion of all parties to a proceeding, the presiding officer shall require service by email or service by filing with or without notice.]

(d) Evidence of service. A return receipt or affidavit of any person having personal knowledge of the facts is [shall be] prima facie evidence of the facts shown thereon relating to service. A party may present other evidence to demonstrate facts relating to service.

(e) Certificate of service. Every document required to be served on all parties must [by subsection (a) of this section shall] contain the following or similar certificate of service: "I, (name) (title) certify that a copy of this document was served on all parties of record in this proceeding on (date) in the following manner: (specify each method [method(s)]). Signed, (signature)." The list of the names and email addresses of the parties on whom the document was served should not be appended to the document.

§ 22.75. Examination and Correction of Pleadings and Documents.

(a) Construction of pleadings and documents. All pleadings and documents will [shall be] construed so as to do substantial justice.

(b) Procedural sufficiency of pleadings and documents.

(1) The presiding officer may require a pleading or document that does not comply with the applicable requirements of §22.72 of this title (relating to Form Requirements for Documents Filed with the Commission) to be re-filed. A motion for rehearing or a reply to a motion for rehearing that is required to be re-filed will retain the original filing date. [Except for motions for rehearing and replies to motions for rehearing, the filing clerk shall not accept documents that do not comply with §22.72 of this title (relating to Formal Requisites of Pleadings and Documents to be Filed with the Commission).]

(2) [All pleadings and documents that do not comply in all material respects with other sections of this chapter, shall be conditionally accepted for filing.] Upon notification by the presiding officer of a deficiency in a pleading or document, the responsible party must [shall] correct or complete the pleading or document in accordance with the notification. If the responsible party fails to correct the deficiency, the pleading or document may be stricken from the record.

(c) Notice of material deficiencies in rate change applications. This subsection applies to applications for rate changes filed under PURA, chapter 36, subchapter C or chapter 53, subchapter C.

(1) Motions to find a rate change application materially deficient must [shall] be filed no later than 21 days after an application is filed. Such motions must [shall] specify the nature of the deficiency and the relevant portions of the application, and cite the particular requirement with which the application is alleged not to comply. The applicant's response to a motion to find a rate change application materially deficient must [shall] be filed no later than five working days after such motion is received.

(2) [(3)] If the presiding officer determines that material deficiencies exist in an application, the presiding officer will [shall] issue a written order [within 35 days of the filing of the application] specifying a time within which the applicant must [shall] amend its application and correct the deficiency. The effective date of the proposed rate change will be 35 days after the filing of a sufficient application. The statutory deadlines will [shall] be calculated based on the date of filing the sufficient application.

(d) Notice of material deficiencies in applications for certificates of convenience and necessity for electric transmission lines.

(1) Motions to find an application for certificate of convenience and necessity for electric transmission line materially deficient must [shall] be filed no later than 21 days after an application is filed. Such motions must [shall] specify the nature of the deficiency and the relevant portions of the application, and cite the particular requirement with which the application is alleged not to comply. The applicant's response to a motion to find an application for certificate of convenience and necessity for electric transmission line materially deficient must [shall] be filed no later than five working days after such motion is received.

(2) [(3)] If the presiding officer determines that a material deficiency exists in an application, the presiding officer will [shall] issue a written order [within 35 days of the filing of the application] specifying a time within which the applicant must [shall] amend its application and correct the deficiency. [Any statutory deadlines shall be calculated based on the date of filing the sufficient application.]

(3) [(4)] For an application for certificate of convenience and necessity filed under PURA §39.203(e), a pleading alleging a material deficiency in the application must [shall] be filed no later than 14 days after the application is filed, and must [shall] be served on the applicant in accordance with §22.74 [by hand delivery, facsimile transmission, or overnight courier delivery and on the other parties in conformance with §22.74(b)] of this title (relating to Service of Pleadings and Documents). The applicant must [shall] reply to a pleading alleging a material deficiency no later than seven days after it is received. If the presiding officer determines that a material deficiency exists in an application, the presiding officer will [shall] issue a written order [within 28 days of the filing of the application] ordering the applicant to amend its application and correct the deficiency within seven days. [This order shall be served on the applicant by hand delivery, facsimile transmission, or overnight courier delivery and on the other parties in conformance with §22.74(b) of this title. If the applicant does not timely amend its application and correct the deficiency, the presiding officer shall dismiss the application without prejudice.]

§ 22.76. Amended Pleadings.

(a) (No change.)

(b) Amendments to conform to issues [Amendments to conform to issues tried at hearing without objection]. When issues not raised by the pleadings are tried or otherwise heard or argued at hearing by express or implied consent of the parties, upon a determination by the presiding officer that no prejudice to any of the parties will occur, the issues will [shall] be treated in all respects as if they had been raised in the pleadings. Amendment of the pleadings to conform them to the evidence may be made with leave of the presiding officer upon any party's motion until the close of evidence, but failure to so amend does [shall] not affect whether the issues may be properly considered by the presiding officer.

§ 22.77. Motions.

(a) General requirements. A motion must [shall] be in writing, unless the motion is made on the record at a prehearing conference or hearing and must[. It shall] state the relief sought and the specific grounds supporting a grant of relief.

(1) If the motion is based upon alleged facts that are not a matter of record, the motion must [shall] be supported by an affidavit.

(2) Written motions must [shall] be served on all parties in accordance with §22.74 of this title (relating to Service of Pleadings and Documents).

(b) (No change.)

(c) Rulings on motions. The presiding officer will [shall] serve orders ruling on motions upon all parties, unless the ruling is made on the record in a hearing or prehearing conference open to the public.

§ 22.78. Responsive Pleadings and Emergency Action.

(a) General rule. Unless otherwise specified by statute, by this chapter, or by order of the presiding officer, a responsive pleading, if made, must [shall] be filed by a party within five working days after receipt of the pleading to which the response is made. Responsive pleadings must [shall] state the date of receipt of the pleading to which response is made. Unless the presiding officer is advised otherwise, it is [shall be] presumed that all pleadings are received on the [within five days of the] filing date.

(b) Responses to complaints. Unless otherwise specified by statute, by this chapter, or by order of the presiding officer, responsive pleadings to complaints filed to initiate a proceeding must [shall] be filed within 21 days of the receipt of the complaint. This subsection does not apply to complaints filed under PURA, chapter 36, subchapter D or chapter 53, subchapter D, or for a complaint filed under TWC §13.004 (relating to Jurisdiction of Utility Commission Over Certain Water Supply or Sewer Service Corporations).

(c) Action by the Presiding Officer [Emergency action]. Unless otherwise precluded by law or this chapter, the presiding officer may take action on a pleading before the deadline for filing responsive pleadings [when necessary to prevent or mitigate imminent harm or injury to persons or to real or personal property. Harm or injury shall also include items affecting the ability of any provider to compete]. Action taken under this subsection may be [is] subject to modification based on a timely responsive pleading.

(d) PURA, Chapter 36, Subchapter D or Chapter 53, Subchapter D Investigations or Complaints. In a complaint proceeding filed under PURA, chapter 36, subchapter D or chapter 53, subchapter D, the presiding officer will [shall] determine the scope of the response that the electric or telecommunications utility is [shall be] required to file, up to and including the filing of a full rate filing package. The presiding officer will [shall] also set an appropriate deadline for the electric or telecommunications utility's response.

§ 22.79. Continuances.

[Unless otherwise ordered by the presiding officer, motions for continuance of the hearing on the merits shall be in writing and shall be filed not less than five days prior to the hearing. Motions for continuance shall set forth the specific grounds for which the moving party seeks continuance and shall make reference to all other motions for continuance filed by the moving party in the proceeding. The moving party shall attempt to contact all other parties and shall state in the motion each party that was contacted and whether that party objects to the relief requested. The moving party shall have the burden of proof with respect to the need for the continuance at issue. Continuances will not be granted based on the need for discovery if the party seeking the continuance previously had the opportunity to obtain discovery from the person from whom discovery is sought, except when necessary due to surprise or discovery of facts or evidence which could not have been discovered previously through reasonably diligent effort by the moving party. The presiding officer shall grant continuances agreed to by all parties provided that any applicable statutory deadlines are extended as may be necessary. Motions for Continuances agreed to by all parties may be filed within five days of the hearing on the merits, and shall state suggested dates for rescheduling of the hearing.]

§ 22.80. Commission Prescribed Forms.

[The commission may require that certain reports and applications be submitted on standard forms. The commission filing clerk shall maintain a complete index to and set of all commission forms. All documents that are the subject of an official form shall contain all matters designated in the official form and shall conform substantially to the official form. Prior to the implementation of any new form or significant change to an existing form, the change or new form shall be referenced in the "In Addition" section of the Texas Register for public comment. For good cause, new forms or significant changes to existing forms may be implemented without publication on an interim basis for a period not to exceed 180 days.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502710

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

SUBCHAPTER F. PARTIES

Statutory Authority

The proposed amendments are proposed for publication under PURA §14.001, which provides the commission with the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; PURA §14.002 and PURA §14.052 and Texas Water Code §13.041(b), which provide the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission and, as applicable, practice and procedure before the State Office of Administrative Hearings.

§22.101, relating to Representative Appearances

Amended §22.101 is proposed under PURA §14.153 which requires the regulatory authority to adopt rules governing communications, including records retention of such communications, with the regulatory authority or a member or employee of the regulatory authority by a public utility, an affiliate, or a representative of a public utility or affiliate.

§22.103, relating to Standing to Intervene and §22.104, relating to Motions to Intervene

Amended §22.103, and §22.104 are proposed under PURA §12.202 which requires the commission to develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the jurisdiction of the commission.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 14.052 and Texas Water Code §13.041(b); PURA §§12.004, 12.202, 14.153, 37.054 and 37.057; and Texas Government Code §2001.051 and 2001.052.

§ 22.101. Representative Appearances.

(a) Generally. Any person may appear before the commission or in a hearing in person or by authorized representative. The presiding officer may require a representative to submit proof of his or her authority to appear on behalf of another person. The authorized representative of a party must [shall] specify the particular persons or classes of persons the representative is representing in the proceeding.

(b) Change in authorized representative. Any person appearing through an authorized representative must [shall] provide written notification to the commission and all parties to the proceeding of any change in that person's authorized representative. The notification must [required number of copies of the notification shall be filed in Central Records under the control number(s) for each affected proceeding and shall] include the authorized representative's name, address, telephone number, [facsimile number,] and, unless the authorized representative has filed a statement under §22.106 of this title (relating to Statement of No Access), an email address.

(c) (No change.)

(d) Change in information required for notification or service. Any person or authorized representative appearing before the commission in any proceeding must [shall] provide written notification to the commission and all parties to the proceeding of any change in their address, telephone number, or email address [facsimile number]. The notification must [required number of copies of the notification shall] be filed in Central Records under the control number [number(s)] for each affected proceeding.

§ 22.103. Standing to Intervene.

(a) Commission staff representing the public interest. Commission staff represents the public interest, has [The commission staff representing the public interest shall have] standing in all proceedings before the commission[,] and is not required to [need not] file a motion to intervene.

(b) Standing to intervene. A person [Persons] desiring to intervene must file a motion to intervene and be recognized as a party under §22.104 of this title (relating to Motions to Intervene) [in order] to participate as a party in a proceeding. Any association or organized group must include in its motion to intervene a list of the members of the association or group that are persons other than individuals that will be represented by the association or organized group in the proceedings. The group or association must [shall] supplement the list of members represented in the motion at any time a member is added or deleted from the list of members represented. A person has standing to intervene if that person:

(1) has a right to participate which is expressly conferred by statute, commission rule or order or other law; or

(2) has [or represents persons with] a justiciable interest which may be adversely affected by the outcome of the proceeding.

(c) (No change.)

(d) By requesting to intervene in a proceeding, a person agrees to accept delivery by email [from the commission of] any motions for rehearing and replies to motions for rehearing in accordance with §22.74 of this title (relating to Service of Pleadings and Documents), unless he or she has filed a statement under §22.106 of this title (relating to Statement of No Access).

§ 22.104. Motions to Intervene.

(a) Necessity for filing motion to intervene. Applicants, complainants, and respondents, as defined in §22.2 of this title (relating to Definitions), are necessary parties to proceedings which they have initiated or which have been initiated against them[,] and need not file motions to intervene to participate as parties in such proceedings.

(b)Time for filing motion. Motions to intervene must be filed within 45 days from the date an application is filed with the commission, unless otherwise provided by statute, commission rule, or order of the presiding officer. For an application for a certificate of convenience and necessity (CCN) filed under PURA [Public Utility Regulatory Act] §39.203(e) or an application for a CCN for a [new] transmission facility subject to PURA §37.057, motions to intervene must be filed within 30 days from the date the application is filed with the commission. The motion must include the email address of the person requesting to intervene unless the motion is accompanied by a statement of no access under §22.106 of this title (relating to Statement of No Access) and be served upon all parties to the proceeding and upon all persons that have pending motions to intervene in accordance with §22.74 of this title (relating to Service of Pleadings and Documents).

(c) Rights of persons with pending motions to intervene. A person who has filed a motion to intervene has [Persons who have filed motions to intervene have] all the rights and obligations of a party pending the presiding officer's ruling on the motion to intervene.

(d) Late intervention.

(1) Criteria for granting late intervention. A motion to intervene that was not timely filed may be granted by the presiding officer. In acting on a late filed motion to intervene, the presiding officer will consider, in addition to the criteria for standing identified in §22.103(b) of this title (relating to Standing to Intervene):

(A) - (E) (No change.)

(2) - (4) (No change.)

(5) Late intervention after proposal for decision (PFD) or proposed order (PO) issued. For late interventions, other than those allowed by paragraph (4) of this subsection, the procedures in subparagraphs (A) and (B) of this paragraph apply:

(A) (No change.)

(B) Denial. If after ten [five] working days of the filing of a motion to intervene, which has been filed after the PFD or PO has been issued, no commissioner has by agenda ballot, placed the motion on the agenda of an open meeting, the motion is deemed denied. If any commissioner has balloted in favor of considering the motion, it will be placed on the agenda of the next regularly scheduled open meeting or such other meeting as the commissioners may direct by the agenda ballot. In the event two or more commissioners vote to consider the motion, but differ as to the date the motion will be heard, the motion will be placed on the latest of the dates specified by the ballots. [The time for ruling on the motion expires three days after the date of the open meeting, unless extended by action of the commission.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502711

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

CHAPTER 24. SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS

SUBCHAPTER H. CERTIFICATES OF CONVENIENCE AND NECESSITY

The Public Utility Commission of Texas (commission) proposes amendments to §24.233 relating to Contents of Certificate of Convenience and Necessity Applications. This proposed rule will implement Texas Water Code Chapter §13.245 as revised by HB 3476 during the Texas 87th Regular Legislative Session. The amended rule will require that for a certificate of public convenience and necessity to be granted for a service area within the extraterritorial jurisdiction of a municipality all water and sewer facilities must be designed and constructed in accordance with the applicable Texas Commission on Environmental Quality (TCEQ) standards.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will not create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Iliana De La Fuente, Attorney, Rules and Projects Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Ms. De La Fuente has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be consistency of commission rules with statute and ensuring that water and sewer utilities located with the boundaries of a municipality are built in compliance with Texas Commission on Environmental Quality standards. The economic cost to persons will vary by utility and will be determined by the cost to comply with the applicable TCEQ standards required to comply with the rule under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by September 4, 2025. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by September 4, 2025. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 58436.

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

Statutory Authority

Texas Water Code §13.041(a), which provides the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by the Texas Water Code that is necessary and convenient to the exercise of that power and jurisdiction; Texas Water Code §13.041(b), which provides the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; Texas Water Code §13.245, which requires that for a certificate of public convenience and necessity to be granted for a service area within the extraterritorial jurisdiction of a municipality all water and sewer facilities must be designed and constructed in accordance with the commission's standards for water and sewer facilities.

Cross Reference to Statute: Texas Water Code §13.041(a); §13.041(b); and §13.245.

§ 24.233. Contents of Certificate of Convenience and Necessity Applications.

(a) - (b) (No change.)

(c) Application within the municipal boundaries or extraterritorial jurisdiction of certain municipalities.

(1) (No change.)

(2) Except as provided by paragraphs (3) - (8) [(7)] of this subsection, the commission may not grant to a retail public utility a CCN for a requested area within the boundaries or extraterritorial jurisdiction of a municipality without the consent of the municipality. The municipality may not unreasonably withhold the consent.

(3) - (5) (No change.)

(6) The commission must include as a condition of a CCN granted under paragraph (4) or (5) of this subsection that for a service area within the boundaries of a municipality all water and sewer facilities be designed and constructed in accordance with the municipality's standards for water and sewer facilities.

(8) [(7)] Paragraphs (4) - (7) [(6)] of this subsection do not apply to Cameron, Hidalgo, or Willacy Counties, or to a county:

(A) with a population of more than 30,000 and less than 36,000 that borders the Red River;

(B) with a population of more than 100,000 and less than 200,000 that borders a county described by subparagraph (A) of this paragraph;

(C) with a population of 170,000 or more that is adjacent to a county with a population of 1.5 million or more that is within 200 miles of an international border; or

(D) with a population of more than 40,000 and less than 50,000 that contains a portion of the San Antonio river.

(E) The commission will maintain on its website a list of counties that are presumed to meet the requirements of this paragraph.

(9) [(8)] A commitment by a city to provide service must, at a minimum, provide that the construction of service facilities will begin within one year and will be substantially completed within two years after the date the retail public utility's application was filed with the municipality.

(10) [(9)] If the commission makes a decision under paragraph (3) of this subsection regarding the granting of a CCN without the consent of the municipality, the municipality or the retail public utility may appeal the decision to the appropriate state district court.

(d) - (f) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502698

Andrea Gonzalez

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7244

CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

SUBCHAPTER C. INFRASTRUCTURE AND RELIABILITY

The Public Utility Commission of Texas (commission) proposes amendments to 16 Texas Administrative Code (TAC) §25.56, relating to Temporary Emergency Electric Energy Facilities (TEEEF). This proposed rule will implement Public Utility Regulatory Act (PURA) §39.918, as revised by Senate Bill (S.B.) 231 during the 89th Regular Texas Legislative Session, by establishing additional guardrail standards for TEEEF units leased after September 1, 2025--including around mobility, boot-up time, and maximum generating capacity per unit--and providing that transmission and distribution utilities (TDUs) may enter into a lease for TEEEF without prior commission approval if the lease includes a provision that allows alteration of the lease based on commission order or rule.

The scope of this rulemaking is limited to amendments to 16 TAC §25.56 that are required to implement S.B. 231 and any related conforming changes. The commission notes that the provisions related to the competitive bidding requirements are relocated within the proposed rule but are otherwise unmodified. Modifications to these provisions are only within scope to the extent the modifications are related to the implementation of S.B. 231.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will not create a new regulation;

(6) the proposed rule will modify an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Zachary Dollar, Power Markets Analyst, Market Analysis Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the section.

Public Benefits

Mr. Dollar has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be providing greater reliability of electricity service to the distribution customers of TDUs operating in the ERCOT region in the event of significant power outages. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under §2001.0045(c)(7).

Public Hearing

Commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by September 12, 2025. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Initial comments must be filed by September 12, 2025. Reply comments must be filed by September 26, 2025. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 58392.

To further assist the commission in implementing the provisions of S.B. 231, the commission also requests comments on the following issues:

1. Under new PURA §39.918(f-1)(2), a TDU can enter into a lease for TEEEF without receiving prior approval from the commission if "the lease includes a provision that allows alteration of the lease based on commission order or rule."

a. Should the commission further modify the proposed rule to account for PURA §39.918(f-1)(2)? If so, how?

b. Please provide your feedback on the following three approaches:

i. Should the proposed rule provide that PURA §39.918(f-1)(2) applies only to emergency TEEEF leases under 16 TAC §25.56(d)?

ii. Should the proposed rule provide that the commission can only require a TDU to alter a lease entered into under PURA §39.918(f-1)(2) when expenses are deemed imprudent in a ratemaking proceeding?

iii. Should the proposed rule provide that the commission can initiate an action at any time to require a TDU to alter a lease entered into under PURA §39.918(f-1)(2)? If yes:

1. Under what circumstances should the commission initiate a proceeding to order a TDU to alter a TEEEF lease? What types of alterations might the commission consider ordering in response to these circumstances? Does this include early termination of the lease?

2. What standard or criteria should the commission use to evaluate whether to order a TDU to alter a TEEEF lease?

3. Should the proposed rule include procedural language governing a contested case proceeding to evaluate whether a TDU should be ordered to alter its lease? What should that procedural language look like?

c. Should the proposed rule provide standard language for leases entered into under PURA §39.918(f-1)(2)? If so, what should that standard language include? (i.e., language that authorizes commission alteration of a TEEEF lease based on commission order or rule, commission-specific termination clause, etc.)

d. Should the proposed rule require TDUs to provide notice to the commission upon entering into a lease under PURA §39.918(f-1)(2)? If yes:

i. Should the notice be provided publicly?

ii. Should the notice include:

1. the lease itself;

2. a description of the leased TEEEF, including the size, quantity, and characteristics of the leased units, the functions the units were leased to perform, the length of the lease, the cost of the units, etc.; or

3. an attestation from the TDU that the lease includes alteration language as required by PURA §39.918(f-1)(2)?

iii. What, if any, action should the commission take in response to the notice?

2. New PURA §39.918(f-2) provides that "the commission may limit the period during which an authorization issued under Subsection (f-1) is valid." Proposed 16 TAC §25.56(c)(4) provides that "the commission's final order will include…the date or dates the authorization expires (i.e., TEEEF leases must not extend past this date)." Should the proposed rule maintain this case-by-case authorization approach, or establish a uniform time limit on authorizations for TEEEF leases under proposed 16 TAC §25.56(c)? If advocating for the latter, what should that uniform limit be?

3. What else should the commission consider in implementing the changes made to PURA §39.918 by S.B. 231?

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

Statutory Authority

The amendment is proposed under Public Utility Regulatory Act (PURA) §§14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; 14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; and 39.918, which directs the commission to allow TDUs to lease, operate, and recover costs for TEEEF to aid in restoring power to a utility's distribution customers during a significant power outage.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001; 14.002; and 39.918.

§ 25.56. Temporary Emergency Electric Energy Facilities (TEEEF).

(a) - (b) (No change.)

(d) [(c)] Prior authorization to lease TEEEF. A TDU may apply for prior authorization from the commission to lease TEEEF. A TDU may enter into, renew, or extend one or more leases for TEEEF, simultaneously or consecutively, provided that the capacity and characteristics of the entire portion of the TDU's leased TEEEF fleet that is authorized under this subsection complies with the authorization provided under this subsection at all times. [Authorization to lease TEEEF. Except as authorized under subsection (d) of this section, a TDU must not enter into, renew, or extend any lease involving a TEEEF without receiving prior commission authorization. Authorization under this subsection applies to a TDU's TEEEF fleet. A TDU may enter into one or more leases for TEEEF, simultaneously or consecutively, provided that the capacity and characteristics of its leased TEEEF fleet complies with the authorization provided under this subsection at all times.]

(1) Contents of application. An application under this subsection must include the following:

(A) The TDU's history with TEEEF, including:

(i) Whether the TDU is currently or has previously been authorized by the commission to lease TEEEF, the details of existing or prior authorizations, and each docket number in which the authorization was granted;

(ii) A description of all TEEEF the TDU has under lease at the time of the application, including the total capacity the TDU has under lease, the length of the lease or leases, a description of the capacity, intended functions, and relevant characteristics of each leased unit, and whether each leased unit has been energized to aid in restoring power during a significant power outage;

(iii) A description of any previous emergency leases of TEEEF or prior use of another TDU's TEEEF under a mutual assistance agreement or program. A TDU must include an explanation for the necessity of each use of TEEEF under an emergency lease or mutual assistance agreement or program;

(iv) A copy of every after-action report submitted by the TDU to the commission under this section during the five years prior to the date on which the application was filed, including a cover page with summary statistics on significant power outages and TEEEF energizations in the TDU's service territory; and

(v) The interchange item number of the TDU's most recently filed emergency operations plan filed in project no. 53385.

(B) The total capacity of TEEEF the TDU is requesting authorization to lease, each function the requested TEEEF will serve (e.g. to restore power to individual facilities, to restore power to feeders to assist in load rotation, etc.) and how much of the requested capacity is requested for each function, and the length of time for which the TDU is requesting authorization. In support of its request, the TDU must include the following:

(i) A description of any necessary characteristics a TEEEF unit must have to perform each of the functions for which authorization is requested. These characteristics should be identified with enough specificity to allow the commission to evaluate, in a subsequent proceeding, whether the TDU's leased TEEEF fleet complies with the commission's authorization. These characteristics should include, as applicable, the capacity or range of capacities of individual units, the mobility of individual units, the types of connections the units must be compatible with, such as mid-span or point-of-use, fuel type, and whether the units can fulfill the function individually or with multiple units working in tandem;

(ii) An explanation with any necessary supporting documentation that the functions the TEEEF is being requested to perform are reasonable and necessary to aid in the restoration of power under this section. This supporting documentation must include, at minimum, historical data on significant power outages that occurred in the TDU's service territory and would have qualified for TEEEF deployment for the five-year period preceding the date of the application, including:

(I) the start and end date of the outage and information on how long customers were affected by the outage;

(II) a description of the events that caused the outage;

(III) the number of affected distribution customers and amount of load, in megawatts, that were affected by the outage; and

(IV) the number and type of critical load, critical care customers, or other critical infrastructure facilities as defined in §25.497 of this title (relating to Critical Load Industrial Customers, Critical Load Public Safety Customers, Critical Care Residential Customers, and Chronic Condition Residential Customers) affected by the outage.

(iii) A description of any additional measures being implemented or scheduled for implementation that may mitigate the need for TEEEF, such as the TDU's implementation of a resiliency plan measure under §25.62 of this chapter, relating to Transmission and Distribution System Resiliency Plans.

(C) As appropriate, data provided under this section must be filed in a format native to Microsoft Excel and must permit basic data manipulation functions, such as copying and pasting of data.

(2) The application will be processed in a contested case proceeding as follows.

(A) Sufficiency. An application is sufficient if it includes the information required by paragraph (1) of this subsection and the TDU has filed proof that notice has been provided in accordance with this subsection.

(i) Within 30 calendar days of the TDU filing its application, commission staff must file a recommendation on sufficiency of the application. If commission staff recommends the application be found deficient, commission staff must identify the deficiencies in its recommendation. The TDU will have five working days to file a response, which may include an amendment to the application to attempt to cure the deficiency.

(ii) If the presiding officer determines the application is deficient, the presiding officer will file a notice of deficiency and cite the particular requirements with which the application does not comply. The presiding officer must provide the TDU an opportunity to amend its application. Commission staff must file a recommendation on sufficiency within 10 working days after the filing of an amended application, when the amendment is filed in response to a notice of deficiency.

(iii) If the presiding officer has not filed a written order concluding that the application is deficient within 10 working days after a deadline for a recommendation on sufficiency, the application is deemed sufficient.

(B) Notice and intervention. Within one working day after the TDU files its application, the TDU must provide notice of its filed application, including the docket number assigned to the application and the deadline for intervention in accordance with this paragraph. The intervention deadline is 30 days from the date service of notice is complete. The notice must be provided using a reasonable method of notice to:

(i) all municipalities in the TDU's service area that have retained original jurisdiction;

(ii) all parties in the TDU's last base-rate proceeding;

(iii) each retail electric provider that provides service in the TDU's service area; and

(iv) the Office of Public Utility Counsel.

(3) Commission evaluation and final determination. The commission will authorize a TDU to lease TEEEF under this subsection if it determines that leasing the requested TEEEF is reasonable and necessary to aid in restoring power to the TDU's distribution customers during a significant power outage that qualifies for TEEEF energization. The commission's final order will include the total TEEEF capacity the TDU is authorized to lease, the capacity of TEEEF the TDU is authorized to lease for each function the TEEEF fleet will perform, and the date or dates the authorization expires (i.e., TEEEF leases must not extend past this date). The commission may include additional requirements related to the characteristics the TEEEF the TDU is authorized to lease.

(e) [(d)] Emergency TEEEF lease.

(1) A TDU may enter into a lease for TEEEF [without prior commission approval] if the TDU lacks the leased TEEEF generating capacity necessary to aid in restoring power, consistent with subsection (f) of this section.

(2) The amount of TEEEF generating capacity leased by a TDU under this subsection must not exceed the amount of megawatts or length of time necessary to restore electric service to the TDU's distribution customers by more than a reasonable amount.

(3) The TDU must provide sufficient documentation to support the reasonableness, necessity, and prudence of any generating capacity and costs of TEEEF leased by a TDU under this subsection during the TDU's next base-rate proceeding.

(f) Energization of TEEEF.

(1) - (9) (No change.)

(10) After-action report. After each significant power outage in a TDU's service territory that meets the criteria for TEEEF energization under paragraph (1) of this subsection, a TDU that has leased TEEEF must file an after-action report with the commission. The report must be filed within 30 days from the last day of the significant power outage. The report must include, as applicable:

(A) - (C) (No change.)

(D) The total nameplate generating capacity in megawatts and the total number of affected generators or load resources that were isolated from the bulk power system for TEEEF energization; [.]

(E) (No change.)

(F) A list of TEEEF that was not energized, including the capacity, fuel type, connection configuration, and mobile capability of each TEEEF unit that was not energized and a brief summary explaining why each TEEEF unit was not energized; and [.]

(G) A description of any TEEEF units that were leased under subsection (e) [(d)] of this section or utilized under a mutual assistance agreement or program. A TDU must include an explanation for the necessity of the emergency lease or utilization of the mutual assistance agreement or program. [;]

(g) - (j) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502699

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

The Public Utility Commission of Texas (commission) proposes new §25.65 relating to Firming Reliability Requirements for Electric Generating Facilities in the ERCOT Region. This proposed rule will implement Public Utility Regulatory Act (PURA) §39.1592 as enacted by House Bill (HB) 1500 during the Texas 88th Regular Legislative Session. The proposed rule will establish firming reliability requirements for electric generating facilities in the ERCOT Region. The rule will also establish a framework for ERCOT to impose financial penalties on electric generating facilities that fail to comply with the requirements and provide financial incentives to electric generating facilities that exceed the requirements.

Government Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule creates a new regulation in order to implement PURA §39.1592;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability, because it is a new rule; and

(8) the proposed rule will positively affect this state's economy by increasing reliable electric service in the state through the requirement that an owner or operator of an electric generating facility be able to operate or be available to operate when called on for dispatch at or above the seasonal average generation capability during the times of highest reliability risk due to low operation reserves.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Jessie Horn, Senior Counsel, Rules and Projects Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state under Texas Government Code §2001.024(a)(4). Ms. Horn has determined that for the first five-year period the proposed rule is in effect there may be fiscal implications for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the section. A municipally owned utility that owns or operates an electric generating facility subject to the proposed rule may incur financial penalties and may be provided financial incentives based on the electric generating facility's ability to operate or availability to operate when called on for dispatch at or above the seasonal average generation capability during the times of highest reliability risk due to low operation reserves.

Public Benefits

Ms. Horn has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be increased reliability of the ERCOT power region during the times of highest reliability risk due to low operation reserves. The probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5) will vary based on an electric generating facility's ability to operate or availability to operate when called on for dispatch at or above the seasonal average generation capability during the times of highest reliability risk due to low operation reserves.

Local Employment Impact Statement

For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by September 2, 2025. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by September 2, 2025. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rule on adoption. All comments should refer to Project Number 58198.

In addition to general comments on the text of the proposed rule, the commission invites interested persons to address the following specific questions:

1. What level of Physical Responsive Capability (PRC) should be used to define a low operation reserve hour?

2. Should the low operation reserve hour be tied to the deployment of or a shortage in aggregate real-time awards relative to the Ancillary Service Plan for ERCOT Contingency Reserve Service?

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

Statutory Authority

The new rule is proposed under Public Utility Regulatory Act (PURA) §14.001, which grants the commission the general power to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; §39.151, which authorizes the commission to oversee ERCOT and adopt rules relating to the reliability of the regional electrical network and accounting for the production and delivery of electricity among generators and all other market participants; and §39.1592, which requires the commission to make certain determinations and require ERCOT to impose financial penalties and provide financial incentives.

Cross Reference to Statute: Public Utility Regulatory Act §14.001; §14.002; §39.151; and §39.1592.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502701

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322

SUBCHAPTER D. RECORDS, REPORTS, AND OTHER REQUIRED INFORMATION

The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative Code (TAC) §25.75 relating to annual report on dispatchable and non-dispatchable generation facilities and corresponding form which is filed in Project 58393 as an attachment to this proposal. This proposed rule will implement PURA §39.1591 (1)(B) which was added by House Bill 1500, Section 23, during the 88th Texas Legislature regular session. The new rule would require transmission service providers (TSPs) to annually report costs incurred in the ERCOT market to interconnect generation facilities and transmission level loads in a format prescribed in a commission approved form.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Rama Singh Rastogi, Program Manager, Rules and Projects Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Ms. Singh Rastogi has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be administrative efficiency and greater transparency about transmission interconnection costs. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

Commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by August 29, 2025. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website or by submitting a paper copy to Central Records, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326. Comments must be filed by August 29, 2025. All comments should refer to Project Number 58393.

Each set of comments should include a standalone executive summary as the first page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

Statutory Authority

The new rule is proposed under Public Utility Regulatory Act (PURA) §14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; PURA §39.1591, which requires the commission to file a report on dispatchable and non-dispatchable generation facilities.

Cross Reference to Statute: Public Utility Regulatory Act §14.001; §14.002; and §39.1591.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 31, 2025.

TRD-202502700

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 14, 2025

For further information, please call: (512) 936-7322