What Is The Public Utility Commission of Texas? (PUCT)
2minute read• Graham Lumley • Last update May 2024
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The Public Utility Commission of Texas (PUCT) is an organization tasked with the regulation and oversight of electric, telecom, and water utilities to ensure consumer fairness and infrastructural reliability. The PUCT was established in 1975.
The PUCT’s authority and key responsibilities are established by the Public Utility Regulatory Act (PURA). Through regulatory processes, the PUC significantly contributes to the enhancement of high quality utility infrastructure, thus guaranteeing it meets the high-quality standards needed for reliable services to Texans.
Roles of the PUCT
Regulate Texas electric, water, and telecommunication utility rates and services to protect consumers, foster competition, and promote high-quality infrastructure
Enact legislation and make policy to protect consumers, foster competition, and promote quality infrastructure
Provide assistance in resolving consumer complaints about utility services
The Public Utility Commission of Texas was established in 1975 through the Public Utility Regulatory Act (PURA) by Texas state legislature. The goal was to fill a critical need for statewide regulation of electric, water, and telecommunication utilities.
Additional legislation passed in 1995 along with the Federal Telecommunications Act of 1996 led to the creation of competitive electric and telecommunication markets. In 1999, Texas enabled consumer choice for electricity.
This restructuring by Texas Legislature significantly shifted the roles and responsibilities of the PUCT in regards to electricity and telecommunications from regulating rates and services to overseeing the competitive market and the compliance of businesses competing with the market.
Key functions and responsibilities for regulating electric utilities
The PUCT’s roles in regulating electric utilities include the following:
Regulating and approving electricity rates to ensure prices are fair — utilities must justify their rates based on the costs of doing business
Overseeing the Electric Reliability Council of Texas (ERCOT) to ensure the reliability of state of Texas’ power grid — making sure that there enough resources to meet the state’s demand for electricity through the management and planning of transmission infrastructure and responding to power grid emergencies
Enforcing customer protection rules such as billing practices, disconnection policies, and low-income assistance programs
Responding to and resolving customer complaints and disputes
Promoting renewable energy and energy efficiency across the state through programs such as powertosave.org and other legislative mandates
Oversight of the deregulated electricity market to ensure retail electric providers follow appropriate competitive practices such as pricing transparency and limiting manipulative behavior
Reviewing proposals for new infrastructure like power plants and transmission lines
Requiring utilities to have emergency response plans to deal with natural disasters that may lead to power outages
PUCT organizational structure and leadership
The PUCT is led by commissioners who are appointed by the governor. They serve staggered six-year terms.
Customer assistance and support
The PUCT offers the following services to utility customers in Texas:
Answer questions about utility services
Resolving complaints filed about utility services
Providing the public access to electronically stored public records regarding utility servicesc
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