16 Tex. Admin. Code § 7.465 - Abandonment
(a) Service to a local distribution company
or city gate customer. A gas utility shall obtain written Commission approval
prior to the abandonment or permanent discontinuance of service to any local
distribution company or city gate customer that involves the removal or
abandonment of facilities other than a meter.
(1) Except in pipeline safety emergencies,
the gas utility shall file an application to abandon or permanently discontinue
service to a local distribution company or city gate customer with the Director
at least 60 days prior to the proposed effective date of the proposed
abandonment or permanent discontinuance of service. In addition to the
information required in §
1.32 of this title (relating to
Form and Content of Pleadings), the application shall state the following:
(A) the number of affected customers in each
class;
(B) the names and addresses
of the local distribution company or city gate customer affected;
(C) the specific reasons for the proposed
abandonment or permanent discontinuance of service;
(D) a description, age, and condition of the
pipeline or plant that the gas utility proposes to abandon or through which it
proposes to permanently discontinue service;
(E) the revenue from and cost to continue the
existing service to the affected local distribution company or city gate
customers;
(F) all reasonable
alternative energy sources available to the affected local distribution company
or city gate customers, and the cost of such energy sources on an MMBtu
equivalent basis;
(G) the cost per
customer of each conversion to available alternative energy sources;
(H) any previous notice provided by the
utility to the affected local distribution company or city gate
customer;
(I) a statement that the
application is subject to Commission approval; and
(J) a statement of the affected local
distribution company or city gate customer's right to intervene in the
application.
(2) The gas
utility shall send a copy of the application to the affected local distribution
company or the affected city gate customer on the same day that the gas utility
files the application to abandon or discontinue service with the Director.
(A) If a person files a statement of intent
to participate or motion to intervene with the Commission within 30 days from
the date of the filing of the application, and the Commission grants party
status, the Commission shall hold a formal hearing within 60 days following the
date on which the application is filed.
(B) If the Commission does not receive and
grant a timely-filed statement of intent to participate or intervention
pleading, then the Director shall act administratively on the application to
abandon or permanently discontinue service within 45 days following the date on
which the gas utility filed the application and shall notify all affected
customers in writing of the decision. If the Director denies the application
administratively, the gas utility, within 30 days of the date the Director
administratively denies an application to abandon or permanently discontinue
service, may request that a formal hearing be held within 60 days following the
date on which the Director denies the application.
(3) If upon the granting of the application
to abandon or permanently discontinue service the local distribution company
would no longer provide service to any residential or commercial customer
because of such abandonment, then the local distribution company shall file an
application to abandon or permanently discontinue service under subsection (b)
of this section.
(4) The Director
shall have the authority to act administratively on abandonment or permanent
discontinuance applications that satisfy the conditions of this
subsection.
(5) Temporary
termination of service due to a pipeline safety emergency shall not be
considered to be abandonment or permanent discontinuance of service under the
terms of this section. If the gas utility determines not to resume service as a
result of a pipeline safety emergency, then the gas utility shall file an
application under this section within 30 days of the temporary termination of
service.
(6) The gas utility shall
have the burden of proof to show that the proposed abandonment or permanent
discontinuance of service is reasonable and necessary and is not contrary to
the public interest. The Commission shall consider the following conditions
when making a determination regarding an application for abandonment or
permanent discontinuance of service:
(A)
whether continued service is no longer economically viable for the gas
utility;
(B) whether the
potentially abandoned customers have any alternatives, how many, and at what
cost;
(C) whether any customer has
made investments or capital expenditures in reliance on continued availability
of natural gas, where use of an alternative energy source is not
viable;
(D) whether the utility has
failed to properly maintain the facilities proposed for abandonment, rendering
them unsalvageable due to neglect; and
(E) any other considerations affecting the
potentially abandoned customers.
(b) Service to residential and commercial
customers. A gas utility shall obtain written Commission approval prior to the
abandonment or permanent discontinuance of service to any residential or
commercial customer that involves the removal or abandonment of facilities
other than a meter. This subsection shall not apply to discontinuance of
service to residential or commercial customers for any of the reasons set forth
in Subchapter D of this chapter (relating to Customer Service and Protection).
(1) Except in pipeline safety emergencies,
the gas utility shall file an application to abandon or permanently discontinue
service with the Director at least 60 days prior to the proposed effective date
of the proposed abandonment or permanent discontinuance of service to any
residential or commercial customer involving the removal or abandonment of
facilities other than a meter. In addition to the information required in
§
1.32 of this title, the
application shall state the following:
(A)
the number of directly affected customers in each class of service;
(B) the names and addresses of all directly
affected customers;
(C) the
specific reasons for the proposed abandonment or permanent discontinuance of
service;
(D) a description, age,
and condition of the pipeline or plant that the gas utility proposes to abandon
or through which it proposes to permanently discontinue service;
(E) the revenue from and cost to continue the
existing service to the directly affected customers;
(F) all reasonable alternative energy sources
available to the directly affected customers, and the cost of such energy
sources on an MMBtu equivalent basis;
(G) the cost per customer of each conversion
to available alternative energy sources;
(H) the terms of any agreements with, or
offers, including qualifying offers, to, directly affected customers by the gas
utility for the conversion of customers' appliances to enable the use of
alternative energy sources;
(I)
copies of any consents to abandonment or permanent discontinuance obtained by
the utility from directly affected customers;
(J) any previous notice provided by the
utility to the directly affected customer;
(K) a statement that the application is
subject to Commission approval; and
(L) a statement of the directly affected
customer's right to protest the application and the procedure for filing such a
protest.
(2) The gas
utility shall send a copy of the application to all directly affected customers
on the same day that the gas utility files the application to abandon or
permanently discontinue service with the Director.
(A) If any of the directly affected customers
files a protest within 30 days following the date on which the application is
filed, the Commission shall hold a formal hearing within 60 days following the
date on which the application is filed.
(B) If all of the directly affected customers
have not consented to the abandonment or permanent discontinuance of service
and if the gas utility has not given all of the directly affected customers a
qualifying offer, as defined in §
7.115 of this title (relating to
Definitions), but none of the directly affected customers files a protest
within 30 days following the date on which the application is filed, the
Director shall act administratively on the application within 45 days following
the date on which the application is filed and shall notify all directly
affected customers in writing of the decision. The Director may seek additional
information from the directly affected customers to determine whether they have
received adequate information regarding the consequences of the proposed
abandonment. If the Director denies the application administratively, the gas
utility, within 30 days of the date the Director administratively denies an
application to abandon or permanently discontinue service, may request that a
formal hearing be held within 60 days following the date on which the Director
denies the application.
(C) The
Director shall act administratively on the application within 30 days following
the date on which the gas utility files the application if either:
(i) all of the directly affected customers
consent to the abandonment or permanent discontinuance of service and none of
the directly affected customers files a protest within 15 days following the
date on which the gas utility files the application; or
(ii) the gas utility has given all of the
directly affected customers a qualifying offer, as defined in §
7.115 of this title (relating to
Definitions) and none of the directly affected customers files a protest within
15 days following the date on which the gas utility files the application. If
the Director denies the application administratively, the gas utility may
request that a formal hearing be held within 60 days following the request for
a hearing. The gas utility shall file any request for a formal hearing within
30 days of the date the Director administratively denies an application to
abandon or permanently discontinue service.
(3) The Director shall have the authority to
act administratively on abandonment or permanent discontinuance applications
that satisfy the conditions of this subsection.
(4) Temporary termination of service due to a
pipeline safety emergency shall not be considered to be abandonment or
permanent discontinuance of service under the terms of this section. If the gas
utility determines not to resume service as a result of a pipeline safety
emergency, then the gas utility shall file an application under this section
within 30 days of the temporary termination of service.
(5) The gas utility shall have the burden of
proof to show that the proposed abandonment or permanent discontinuance of
service is reasonable and necessary and is not contrary to the public interest.
The Commission shall consider the following conditions when making a
determination regarding an application for abandonment or permanent
discontinuance of service:
(A) whether
continued service is no longer economically viable for the gas
utility;
(B) whether the
potentially abandoned customers have any alternatives, how many, and at what
cost;
(C) whether any customer has
made investments or capital expenditures in reliance on continued availability
of natural gas, where use of an alternative energy source is not
viable;
(D) whether the utility has
failed to properly maintain the facilities proposed for abandonment, rendering
them unsalvageable due to neglect; and
(E) any other considerations affecting the
potentially abandoned customers.
Notes
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