Public Utility Commission of Texas

Skip Navigation LinksIndustry Information Telecommunications Rights of Way  Application for ROW Participation

Municipal Right Of Way

Application for ROW Participation

How to Submit Base Amount and Allocation Information

If your Municipality is newly incorporated, or has been incorporated but you have not yet requested that the Public Utility Commission (PUC) establish telecommunications access line rates for your municipality, please read the following:

House Bill 1777 Applies to all Incorporated Municipalities in Texas
In the past, fees paid to municipalities for the use of the public right-of-way (ROW) by telecommunications providers were determined by a variety of methods, including: percentage of gross revenues, fee-per-foot, etc. In 1999, the 76th Legislature enacted House Bill (HB 1777), also known as Chapter 283 of the Local Government Code, which standardized municipal franchise fee methodology. Pursuant to HB 1777, all telecommunications franchises between a certificated telecommunications provider (CTP) and a municipality will be calculated based on a fee-per-access line method. Whether you are still operating under a non-terminated franchise agreement, receive no franchise compensation, or your municipality is served by a coop telephone company, HB 1777 and the PUC reporting requirements (outlined below) apply to you.
The PUC Calculates the Maximum Local Exchange Telecommunications Franchise Revenue a municipality may receive
The PUC was authorized by the Texas Legislature in HB 1777 to implement the provisions of HB 1777. Based on input received from municipalities, both individually and through the Texas Municipal League, as well on input from CTPs, the PUC has adopted rules that apply to both municipalities and CTPs which outline the process for counting access lines and calculating fees.
If a municipality wishes to receive Franchise Revenue, whether now or in the future, that municipality must contact the PUC
Access line fees are calculated in accordance with HB 1777 and PUC rules, based upon a municipality's 1998 telecommunications franchise revenues. For the PUC to calculate maximum fees, a municipality must accurately report compensation it received in calendar year 1998, attributable only to local exchange telephone service. (Long-distance carriers are outside of HB 1777 and must still compensate a municipality under new or existing agreements; other utility fees such as gas and electric are not affected by HB 1777.) A municipality must also choose an allocation formula that determines the fee for each category of access line (residential, non-residential, and point-to-point). Even if you have not received any franchise compensation in the past, you must complete the forms below, as this will allow the PUC to determine an entitlement for your municipality as allowed by HB 1777.

Forms for Municipal Base Amount


Base Amount Form

Form for Allocating Base Amount

Schedule A: Form for Calculating Base Amount without In-kind

Schedule B: Form for Calculating In-kind Compensation

Schedule C: Form for Calculating In-kind Compensation over 1%

Appendix A: CTP List

Appendix B: List of Counties under 25,000

Appendix C: Background information on HB 1777 and Frequently Asked Questions

NOTE: Your municipality must also provide an accurate map to the CTPs which operate in your municipality. This map must include a legal description of metes and bounds, and, if possible, should be superimposed on a street map so that CTPs can determine which customers reside within the municipality. The CTP must have such a map in order to develop an accurate line count, and the PUC must have this accurate municipal line count to develop access line rates.