The sole right of control, easement, use, ownership of and title to the public streets, sidewalks, highways, bridges, alleys, public places, and other real property of the city is hereby declared to be inalienable, except by ordinance adopted by a majority of the city council.
The city shall have the power to buy, sell, construct, lease, maintain, operate, and regulate public services and utilities within or without the city limits, and to distribute and sell such utility services, including but not limited to water, gas, electric, telephone, cable, waste management and transportation services. The city shall have all regulatory powers except as may be granted or limited by the Constitution or the laws of the State of Texas.
The city council has the power, by ordinance, to grant, renew, extend, and amend franchises of public utilities operating within the city. A franchise shall not be granted for an indeterminate period nor for a term of more than 20 years from the date of the grant, renewal, or extension.
The grant of a franchise to construct, maintain, or operate a public utility and the renewal or extension of the grant shall not be exclusive.
Whether or not it is stated in the franchise ordinance, a grant, renewal, extension, or amendment of a public utility franchise is subject to the right of the city council:
(a) 
to terminate the franchise by ordinance at any time for the failure of the franchise holder to comply with the terms of the franchise, this power to be exercised only after notice and hearing and an opportunity to correct the default.
(b) 
to require expansion and extension of plant facilities that are necessary to provide adequate service to the public and to maintain plant and fixtures at the highest reasonable standard of efficiency.
(c) 
to establish reasonable standards of service and quality of products and prevent unjust discrimination in service or rates.
(d) 
to impose regulations that insure safe, efficient, and continuous service to the public.
(e) 
to examine and audit at any time during regular business hours the accounts and records of the utility which relate to the city’s regulation.
(f) 
to prescribe the form of accounts kept by each utility; provided, that the utility is in compliance with this paragraph if it keeps its accounts in accordance with the uniform system of accounts prescribed for the utility by a federal or state agency with regulatory authority over the utility.
(g) 
to require the utility to compensate the city for use of the city’s public rights-of-way and other public property.
(h) 
To require every franchisee to furnish within a reasonable time to the city, without cost to the city, a general map, with updates outlining the location, character, size, length, and terminals of all facilities of such franchisee in, over, and under ground of property in the city and to provide detailed information on request in a format as specified by the city.
(i) 
To require the public utility to give notice to any subscriber to its services prior to permanent or temporary discontinuance of such service by the public utility, except in cases of emergency, and to require that no officer, agent, servant or employee of the public utility nor any vehicles under their control shall make use of, go upon or cross any private property without first obtaining the permission of the owner or occupant, except in cases of emergency, and to provide a penalty for the violation of such requirements.
(j) 
To impose other reasonable regulations, requirements, and conditions as may be deemed necessary to promote the health, safety, welfare, or accommodation of the public and to insure safe, efficient and continuous service to the public.
A public utility franchise may not be transferred without approval by ordinance of the city council. This restriction on transfer does not prevent the franchise holder from pledging the franchise as security for a valid debt or mortgage.
A franchise holder shall not assign a value to the franchise granted by the city for use in calculating reasonable rates and charges for utility service within the city nor for determining just compensation to be paid by the city for public utility property which it may acquire by condemnation or otherwise.
(a) 
The city council has the power to fix and regulate the rates and charges of all utilities and public services, as provided herein.
(b) 
Upon receiving written request from a utility or public service requesting a change in rates, or upon a recommendation from the city that rates for services provided by or owned by the city be changed, the city council shall consider the change.
(c) 
The utility must show the necessity for the change by an [any] evidence required by the city council, including, but not limited to, the following:
(1) 
Cost of its investment for service to the city.
(2) 
Amount and character of expenses and revenues connected with rendering the service.
(3) 
Copies of any reports or returns filed with any state or federal regulatory agency with [within] the last three years.
(4) 
Demonstration that the return on investment, if any, is within state and federal limitations.
(d) 
If not satisfied with the sufficiency of evidence, the city council may hire rate consultants, auditors and attorneys to investigate and, if necessary, litigate requests for rate changes, the expense of which shall be reimbursed to the city by the franchisee.