Tex. Codes » Utilities Code · TITLE 2. PUBLIC UTILITY REGULATORY ACT · SUBTITLE B. ELECTRIC UTILITIES · CHAPTER 40. COMPETITION FOR MUNICIPALLY OWNED UTILITIES AND RIVER AUTHORITIES
Texas Codes

Tex. Util. Code § 40.004 (2026)

Jurisdiction Of Commission

✓ current as of May 2026
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Sec. 40.004. JURISDICTION OF COMMISSION. Except as specifically otherwise provided in this chapter, the commission has jurisdiction over municipally owned utilities only for the following purposes:

(1) to regulate wholesale transmission rates and service, including terms of access, to the extent provided by Subchapter A, Chapter 35;

(2) to regulate certification of retail service areas to the extent provided by Chapter 37;

(3) to regulate rates on appeal under Subchapters D and E, Chapter 33, subject to Section 40.051(c);

(4) to establish a code of conduct as provided by Section 39.157(e) applicable to anticompetitive activities and to affiliate activities limited to structurally unbundled affiliates of municipally owned utilities, subject to Section 40.054;

(5) to establish terms and conditions for open access to transmission and distribution facilities for municipally owned utilities providing customer choice, as provided by Section 39.203;

(6) to administer the natural gas energy credits program under Section 39.9044(b);

(7) to require reports of municipally owned utility operations only to the extent necessary to:

(A) enable the commission to determine the aggregate load and energy requirements of the state and the resources available to serve that load; or

(B) enable the commission to determine information relating to market power as provided by Section 39.155; and

(8) to evaluate and monitor the cybersecurity preparedness of a municipally owned utility described by Section 39.1516(a)(3) or (4).

Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.

Amended by:

Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 16.005, eff. September 1, 2019.

Acts 2019, 86th Leg., R.S., Ch. 610 (S.B. 936), Sec. 9, eff. September 1, 2019.

Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 42, eff. September 1, 2023.

SUBCHAPTER B. MUNICIPALLY OWNED UTILITY CHOICE


Notes of Decisions
Cited in 8 cases (5 in the last 5 years), 2001–2025 · leading case: Pub. Util. Comm'n v. City Pub. Serv. Bd. of San Antonio, 53 S.W.3d 310 (Tex. 2001).
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Pub. Util. Comm'n v. City Pub. Serv. Bd. of San Antonio, 53 S.W.3d 310 (Tex. 2001). “See also Tex. Util.Code §§ 40.004(1), 40.055(a)(1), added by Acts 1999, 76th Leg.”
Pub. Util. Com'n v. City Pub. Ser. Bd., 53 S.W.3d 310 (Tex. 2001). “[95] See also Tex. Util.Code §§ 40.004(1), 40.055(a)(1), added by Acts 1999, 76th Leg.”
The City of Coll. Station v. Pub. Util. Comm'n of Texas (Tex. App. 2025). · cites it 6× “18 Tex. Util. Code § 40.004 ................”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). · cites it 2× “End of Document Page 2 of 2 APPENDIX J Tex. Utilities Code § 40.004 *** This document is current through the 2023 Regular Session; the 1st C.”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). “Tex. Util. Code § 40.004(1). The Commission sets transmission rates to allow the utility to recover its reasonable and necessary expenses related to providing transmission service as well as a reasonable rate of return on transmission investment.”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). “4 Tex. Util. Code § 40.004(1) .............”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). “Tex. Util. Code § 40.004(1). This section of the Commission’s rule merely directs the Commission to consider the DSCR that the utility received in its previous transmission rate case.”
Am. Zurich Ins. Co. v. Daniel Samudio (Tex. App. 2015). “For our purposes, subsequent statutory amendments are of limited usefulness.”
Tex. Util. Code § 40.004(1): 6 cases
Pub. Util. Comm'n v. City Pub. Serv. Bd. of San Antonio, 53 S.W.3d 310 (Tex. 2001). “See also Tex. Util.Code §§ 40.004(1), 40.055(a)(1), added by Acts 1999, 76th Leg.”
Pub. Util. Com'n v. City Pub. Ser. Bd., 53 S.W.3d 310 (Tex. 2001). “[95] See also Tex. Util.Code §§ 40.004(1), 40.055(a)(1), added by Acts 1999, 76th Leg.”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). “Tex. Util. Code § 40.004(1). The Commission sets transmission rates to allow the utility to recover its reasonable and necessary expenses related to providing transmission service as well as a reasonable rate of return on transmission investment.”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). “4 Tex. Util. Code § 40.004(1) .............”
Pub. Util. Comm'n of Texas // City of Denton Operating as Denton Mun. Elec. v. City of Denton Operating as Denton Mun. Elec. // Cross-Appellee Pub. Util. Comm'n of Texas (Tex. App. 2025). “Tex. Util. Code § 40.004(1). This section of the Commission’s rule merely directs the Commission to consider the DSCR that the utility received in its previous transmission rate case.”
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