Texas Utilities Code - UTIL § 35.009. Amounts Paid in Lieu of Ad Valorem Taxes for Certain Facilities

(1) the utility enters into a written agreement with the governing body of the taxing entity related to the payments;

(2) the amount paid is the same as the amount the utility would have to pay to the taxing entity on that transmission facility if the facility were subject to ad valorem taxation;

(3) the governing body of the taxing entity is not the governing body of the utility;  and

(4) the utility provides the commission with a copy of the written agreement and any other information the commission considers necessary in relation to the agreement.