16 Tex. Admin. Code § 24.241 - Foreclosure and Bankruptcy
(a) If
a utility that is required by law to possess a certificate of convenience and
necessity (CCN) receives notice that all or a portion of the utility's or
system's facilities or property used to provide utility service is being posted
for foreclosure, the utility shall notify the commission in writing of that
fact and shall provide a copy of the foreclosure notice to the commission not
later than the tenth day after the date on which the retail public utility or
system receives the notice.
(b) A
person other than a financial institution that forecloses on facilities used to
provide utility service shall not charge or collect rates for providing retail
public water or sewer service unless the person has a completed application for
a CCN or to transfer the current CCN on file with the commission within 30 days
after the foreclosure is completed.
(c) A financial institution that forecloses
on a utility or on any part of the utility's facilities or property that are
used to provide utility service is not required to provide the 120-day notice
prescribed by TWC §13.301, but shall provide written notice to the
commission before the 30th day preceding the date on which the foreclosure is
completed.
(d) The financial
institution may operate the utility for an interim period not to exceed 12
months before selling, transferring, merging, consolidating, acquiring,
leasing, or renting its facilities or otherwise obtaining a CCN unless the
commission in writing extends the time period for good cause shown. A financial
institution that operates a utility during an interim period under this
subsection is subject to each commission rule to which the utility was subject
and in the same manner.
(e) Not
later than the 48th hour after a retail public utility files a bankruptcy
petition, the retail public utility shall report this fact to the commission
and the TCEQ in writing.
Notes
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