REPORT OF CERTAIN TRANSACTIONS; RAILROAD COMMISSION CONSIDERATION

(a) Not later than the 60th day after the date the transaction takes effect, a gas utility shall report to the railroad commission: (1) a sale, acquisition, or lease of a plant as an operating unit or system in this state for a total consideration of more than $1 million; or (2) a merger or consolidation with another gas utility operating in this state. (b) On the filing of a report with the railroad commission, the railroad commission shall investigate the transaction described by Subsection (a), with or without a public hearing, to determine whether the action is consistent with the public interest. In reaching its determination, the railroad commission shall consider the reasonable value of the property, facilities, or securities to be acquired, disposed of, merged, or consolidated. (c) If the railroad commission finds that a transaction is not in the public interest, the railroad commission shall take the effect of the transaction into consideration in ratemaking proceedings and disallow the effect of the transaction if the transaction will unreasonably affect rates or service. (d) This section does not apply to: (1) the purchase of a unit of property for replacement; or (2) an addition to the facilities of a gas utility by construction.