(a) If an area is within the boundaries of a municipality, all retail public utilities
certified or entitled to certification under this chapter to provide service or operate
facilities in that area may continue and extend service in its area of public convenience
and necessity within the area pursuant to the rights granted by its certificate and
this chapter, unless the municipality exercises its power of eminent domain to acquire
the property of the retail public utility under Subsection (d). Except as provided by Section 13.2475 or 13.255, a municipally owned or operated utility may not provide retail water and sewer utility
service within the area certificated to another retail public utility without first
having obtained from the utility commission a certificate of public convenience and
necessity that includes the areas to be served.
(b) Notwithstanding any other provision of law, a retail public utility may continue
and extend service within its area of public convenience and necessity and utilize
the roads, streets, highways, alleys, and public property to furnish retail utility
service, subject to the authority of the governing body of a municipality to require
any retail public utility, at its own expense, to relocate its facilities to permit
the widening or straightening of streets, by giving to the retail public utility 30
days' notice and specifying the new location for the facilities along the right-of-way
of the street or streets.
(c) This section may not be construed as limiting the power of municipalities to incorporate
or extend their boundaries by annexation, or as prohibiting any municipality from
levying taxes and other special charges for the use of the streets as are authorized
by Section 182.025, Tax Code.
(d) In addition to any other rights provided by law, a municipality with a population
of more than 500,000 may exercise the power of eminent domain in the manner provided
by Chapter 21, Property Code, to acquire a substandard water or sewer system if all
the facilities of the system are located entirely within the municipality's boundaries. The municipality shall pay just and adequate compensation for the property. In this subsection, “substandard water or sewer system” means a system that is not in compliance with the municipality's standards for water
and wastewater service.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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