Tex. Codes » Utilities Code · TITLE 3. GAS REGULATION · SUBTITLE A. GAS UTILITY REGULATORY ACT · CHAPTER 104. RATES AND SERVICES
Texas Codes

Tex. Util. Code § 104.004 (2026)

Unreasonable Preference Or Prejudice Prohibited

✓ current as of May 2026
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Sec. 104.004. UNREASONABLE PREFERENCE OR PREJUDICE PROHIBITED. A gas utility may not:

(1) grant an unreasonable preference or advantage concerning rates or services to a person in a classification;

(2) subject a person in a classification to an unreasonable prejudice or disadvantage concerning rates or services; or

(3) establish or maintain an unreasonable difference concerning rates of services between localities or between classes of service.

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

Notes of Decisions
Cited in 6 cases, 2000–2008 · leading case: Centerpoint Energy Entex v. R.R. Comm'n of Texas, 213 S.W.3d 364 (Tex. App. 2006).
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Centerpoint Energy Entex v. R.R. Comm'n of Texas, 213 S.W.3d 364 (Tex. App. 2006). “See Tex. Util.Code Ann. § 104.004. We conclude that the record lacks substantial evidence to support the finding and conclusion that assessing a share of the municipal franchise fees against environs customers is unreasonable.”
Entex v. R.R. Com'n of Texas, 18 S.W.3d 858 (Tex. App. 2000). “104 prohibits a pipeline gas utility from directly or indirectly charging “greater or lesser compensation for a service provided than the compensation charged .”
Centerpoint Energy Entex v. R.R. Comm'n of Texas (Tex. App. 2006). “See Tex. Util. Code Ann. § 104.004 . We conclude that the record lacks substantial evidence to support the finding and conclusion that assessing a share of the municipal franchise fees against environs customers is unreasonable.”
Reagan Nat'l Advert. of Austin, Inc. v. Vincent Hazen (Tex. App. 2008). “It specifically prohibited “an unreasonable difference concerning rates of services between localities or between classes of service,” Tex. Util. Code Ann. § 104.004 , and restricted the variations between rates within municipalities and their environs.”
City of Dallas v. R.R. Comm'n of Texas & Atmos Energy Corp., as Successor by Merger to TXU Gas Co. (Tex. App. 2008). “It specifically prohibited "an unreasonable difference concerning rates of services between localities or between classes of service," Tex. Util. Code Ann. § 104.004 , and restricted the variations between rates within municipalities and their environs.”
Entex, a Div. of Reliant Energy Resources Corp., Formerly Known as Entex, a Div. of Noram Energy Corp. v. R.R. Comm'n of Texas (Tex. App. 2000). “See Tex. Util. Code Ann. §§ 104.004 , 121.104(a)(2) (West 1998).”
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