‘The Attorney General of Texas
October 5, 1979
MARK WHITE
Attorney General
Honorable George M. Cowden Opinion No. MW-55
Chairman, Public Utility Commission
of Texas Re: Assessments that Public
7800 Shoal Creek Blvd., Suite 400N Utility Commission may collect
Austin, Texas 78757 from water supply corporations
removed from its jurisdiction.
Dear Mr. Cow&n:
You ask several questions about the payment of assessments by water
supply or sewer service corporations which were removed from the
jurisdicti,on of the Public Utility Commission (PVC) as of April 19, 1979.
Section 78 of the Public Utility Regulatory Act, V.T.C.S. article 1448%
provides as fallows:
An assessment is hereby imposed upon each public
utility within the commission’s jurisdiction serving
the ultimate consumer equal to one-sixth of one
percent of its grossreceipts from rates charged the
ultimate consumers in Texas for the purpose of
defraying the costs and expenses incurred in the
administration of this Act. Thereafter the
commission shall, subject to the approval of the
Legislature, adjust this amessment to provide a level
of income sufficient to fund commission operation.
Assessments are due on August 31 of each year, and covered utilities may
make quarterly payments of their aasemments. In each case, the payment is
made after the assessment year or quarter has passed. See Attorney
General Opinion H-8ll (1978). Senate Bill 418, effective Apil19, 1979,
removed water supply end sewer service corporations from PUC jurisdiction,
except for the purpose of issuing certificates of convenience and necessity.
V.T.C.S. art. 1448c, SS 3(a), (c), (II);49(b); Acts 1979, 86th Leg., ch. 57 at 93.
You ask whether water supply corporations must pay the assessment
for the quarters during which they were subject to the commission’s
regulation. The messment imposed by section 78 is an ongoing assessment
for the purpose of defraying administrative costs. The legislative intent, as
reflected in the language end structure of the statute, is that water supply
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Honorable George M. Cowden - Page Two (MI+65)
corporations are rewonsible for the portion of the assessment attributable to the time
period they remained under PUC jurisdiction.
You next ask whether the commission may prorate the amessment due and payable
for the portion of the aassessmentyear up to April 19, 1979, and collect the prorated
assessments from the water supply corporations. On the basis of our conclusion that the
assessment & an cngoing obligation, we believe the commission may do so.
You finaIly ask whether the commission may require any additional assessments for
any quarters after April 19,1979, against the water supply corporation. As of that date, a
water supply corporation ceased to be a “public utility within the commission’s
jurisdiction”; hence, section 78 no longer imposed the assessment on it.
SUMMARY
Water supply corporations, removed from the jurisdiction of the
Public Utility Commission as of April 19, 1979, must pay
aseessments imposed by section 78 of V.T.C.S. article 1446~for the
period during which they were subject to PUC jurisdiction.
-v@wtmo~.
MARK WHITE
Attorney General of Texas
JOHN W. PAINTER, JR.
Pimt Assistant Attorney General
TED L. HARTLEY
Executive Assiitant Attorney General
Prepared by SusanGarrison
Assistant Attorney General
APPROVED:
OPINIONCOMMlTTRE
C. Robert Heath, Chairman
David B. Brooks
SusanGarrison
Rick Gilpin
William G Reid
MarthaV. Terry
Bruce Youngblood
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