Texas Utilities Code - UTIL § 163.054. Creation of Agency

(a) Public entities may create an agency by concurrent ordinances subject to voter approval.

(b) A public entity may join in the creation of an agency under this subchapter only if on May 8, 1975, and at the time the concurrent ordinance is adopted, the entity was engaged in the authorized generation of electric energy for sale to the public.  This subsection does not prohibit a public entity from disposing of its electric generating capabilities after creation of the agency.

(c) An agency is a:

(d) An agency may not impose a tax but has all the other powers relating to municipally owned utilities and provided by law to a municipality that owns a public utility.