The Public Utility Commission of Texas regulates the state's electric, telecommunication, and water and sewer utilities, implements respective legislation, and provides customer assistance in resolving consumer complaints.
CenterPoint Energy, Oncor, TNMP, AEP Texas are investor-owned Transmission and Distribution (TDU) electric utilities operating the poles, wires, substations, and other equipment that carry electricity from the power generator to the customer. TDUs charge electric delivery rates to Retail Electric Providers (REP) that are passed through to consumers in their electric bill. The rates charged by TDUs are set by the Public Utility Commission of Texas (PUCT). The PUCT sets rates that allow the TDU to recover the costs of providing delivery service along with an opportunity for a reasonable rate of return on their investment in transmission and distribution equipment.
TDUs are required to notify customers when they request a rate change from the PUCT. Customers and groups affected by a rate change are entitled to participate in the rate case and express their thoughts about the rate requests.
Application - The TDU files an application for a rate change with the PUCT. The application includes financial, engineering, and customer-usage information supporting the new rates.
Administrative Completeness - PUCT technical staff and the PUC's internal administrative law judge determine if the application contains the basic information to proceed with the rate case.
Deadline to Intervene -Anyone who wants to actively participate in the case as intervenors must submit a request by this date that is set by the Administrative Law Judge.
Referral to State Office of Administrative Hearings (SOAH) - SOAH is a state agency, separate and independent from the PUCT. SOAH conducts hearings, collects evidence and testimony.
Proposal for Decision - After hearing from the different sides and considering the law and evidence, the SOAH judge makes a recommendation to the PUC Commissioners. The PUC Commissioners are not bound by the recommendation from the SOAH judge.
Open Meeting - The PUC Commissioners vote on a rate change request during a regularly scheduled meeting open to the public and broadcast online. Duly registered intervenors may speak during the open meeting. They must request "Oral Argument" before the meeting to address the commission.