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Regulatory

A Review of Selected Controls at the Public Utility Commission of Texas

May 2001

Report Number 01-029

Overall Conclusion

The Public Utility Commission of Texas (Commission) has implemented key legislation, improved its oversight of the Texas Universal Service Fund, and improved its reporting of performance measures. Under deregulation and increased competition in the electric and telecommunications industries, the Commission's role is shifting from rate-setting to customer protection. Because our review focused primarily on the Commission's current administrative operations, we cannot provide assurances regarding the future of those industries.

Key Facts and Findings

  • The Commission has adopted rules to implement the following bills from the 76th Legislature: Senate Bill 7 (electric deregulation), Senate Bill 86 (customer protection), and Senate Bill 560 (telecommunications deregulation).

  • The Commission has improved its financial management practices, including cash management, since our initial visit in 1999.

  • The Commission has improved its reporting on key performance measures since our most recent performance measures certification audit in 1997.

  • In fiscal year 2000, the Commission faced a relatively high staff turnover rate of approximately 33 percent. The statewide average for fiscal year 2000 was 21 percent.

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