Texas Water Code - WATER § 49.233. Electric Generation, Transmission, and Distribution for Certain Districts

(1) develop, generate, transmit, or distribute water power and electric energy inside the district's boundaries for its own use;

(2) purchase electric energy from any available source for use at a facility the district owns, operates, and maintains inside the district's boundaries;

(3) enter into an agreement to acquire, install, construct, finance, operate, make an addition to, own, or operate an electric energy generating, transmission, or distribution facility jointly with another person;  or

(4) sell or otherwise dispose of any of the district's interest in a jointly owned facility described by Subdivision (3).

(1) is subject to the transmission line certification provisions of Chapter 37, Utilities Code;

(2) may not generate electricity by means of hydroelectric generation.