{"data":{"id":"us-tx/tex.-utilities-code-104.003","jurisdiction":"us-tx","citation":"Tex. Utilities Code § 104.003","heading":"JUST AND REASONABLE RATES.","body":"(a) The regulatory authority shall ensure that each rate a gas utility or two or more gas utilities jointly make, demand, or receive is just and reasonable. A rate may not be unreasonably preferential, prejudicial, or discriminatory but must be sufficient, equitable, and consistent in application to each class of consumer. In establishing a gas utility's rates, the railroad commission may treat as a single class two or more municipalities that a gas utility serves if the commission considers that treatment to be appropriate.\n(b) A rate for a pipeline-to-pipeline transaction or to a transportation, industrial, or similar large volume contract customer is considered to be just and reasonable and otherwise to comply with this section and shall be approved by the regulatory authority if:\n(1) neither the gas utility nor the customer had an unfair advantage during the negotiations;\n(2) the rate is substantially the same as the rate between the gas utility and at least two of those customers under the same or similar conditions of service; or\n(3) competition does or did exist with another gas utility, another supplier of natural gas, or a supplier of an alternative form of energy.\n(c) Subsection (b) does not apply:\n(1) if a complaint is filed with the railroad commission by a transmission pipeline purchaser of gas sold or transported under the pipeline-to-pipeline or transportation rate; or\n(2) to a direct sale for resale to a gas distribution utility at a city gate.\n(d) The reasonableness of gas purchase costs included in a city gate rate proposed to be charged for a sale for resale to a gas distribution utility at a city gate may be reviewed at a city gate rate proceeding even though the costs have been previously approved as a rate for other parties under Subsection (b).\n(e) Subsection (b)(1) does not apply to a rate charged or offered to be charged to an affiliated pipeline utility.\nActs 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.","path":["UTILITIES CODE","TITLE 3. GAS REGULATION","SUBTITLE A. GAS UTILITY REGULATORY ACT","CHAPTER 104. RATES AND SERVICES","SUBCHAPTER A. GENERAL PROVISIONS"],"source_url":"https://statutes.capitol.texas.gov/Docs/UT/htm/UT.104.htm#104.003","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:45Z","sha256":"ce3262a995de58a8db8f12085d6a438c9e8b225532d15e95e9a5be90febe7286","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-utilities-code-104.002","next":"us-tx/tex.-utilities-code-104.004"},"notice":"GroundRules: Original legal text. Not legal advice."}