Texas Codes
Tex. Util. Code § 37.152 (2026)
Grounds For Reduction Of Service
✓ laws through the 89th Legislature (2025)
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Sec. 37.152. GROUNDS FOR REDUCTION OF SERVICE. (a) Unless the commission issues a certificate that the present and future convenience and necessity will not be adversely affected, a certificate holder may not discontinue, reduce, or impair service to any part of the holder's certificated service area except for:
(1) nonpayment of charges;
(2) nonuse; or
(3) another similar reason that occurs in the usual course of business.
(b) A discontinuance, reduction, or impairment of service must be in compliance with and subject to any condition or restriction the commission prescribes.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Notes of Decisions
Cited in 2
cases, 1998–2009 · leading case: Hidden Oaks Ltd. v. City of Austin, 138 F.3d 1036 (5th Cir. 1998).
Hidden Oaks Ltd. v. City of Austin, 138 F.3d 1036 (5th Cir. 1998). “” Tex. Util. Code Ann. § 37.152 . 8 We find that these provisions demonstrate an entitlement to continuous and adequate utility service, which may be removed only “for cause.”
Navo South Dev. Partners, Ltd. v. Denton Cnty. Elec. Coop., Inc., 669 F. Supp. 2d 747 (E.D. Tex. 2009). “Tex. Util. Code Ann. § 37.152 . The right to sell the certificate is not unencumbered.”
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