After notice and hearing, the commission may:
  (1) order any retail public utility that is required by law to possess a certificate of public convenience and necessity or any retail public utility that possesses a certificate of public convenience and necessity and is located in an affected county as defined in Texas Water Code, §16.341, to:
    (A) provide specified improvements in its service in a defined area if:
      (i) service in that area is inadequate as set forth in §291.93 and §291.94 of this title (relating to Adequacy of Water Utility Service; and Adequacy of Sewer Service); or
      (ii) is substantially inferior to service in a comparable area; and
      (iii) it is reasonable to require the retail public utility to provide the improved service; or
    (B) develop, implement, and follow financial, managerial, and technical practices that are acceptable to the Public Utility Commission of Texas to ensure that continuous and adequate service is provided to any areas currently certificated to the retail public utility if the retail public utility has not provided continuous and adequate service to any of those areas and, for a utility, to provide financial assurance of the retail public utility's ability to operate the system in accordance with applicable laws and rules;
  (2) order two or more public utilities or water supply or sewer service corporations to establish specified facilities for interconnecting service; or
  (3) order a public utility or water supply or sewer service corporation that has not demonstrated that it can provide continuous and adequate service from its drinking water source or sewer treatment facility to obtain service sufficient to meet its obligation to provide continuous and adequate service on at least a wholesale basis from another consenting utility service provider.

Source Note: The provisions of this §291.114 adopted to be effective January 10, 1996, 21 TexReg 114; amended to be effective February 4, 1999, 24 TexReg 738; amended to be effective January 3, 2019, 43 TexReg 8617