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Senate Bill 1364 |
Senate Author: Schwertner |
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Effective: 9-1-13 |
House Sponsor: Murphy et al. |
Senate Bill 1364 amends the Utilities Code, if an expense is allowed to be included in utility rates or an investment is included in the utility rate base in regard to the computation of an electric utility's income taxes, to require that the related income tax benefit be included in the computation of income tax expense to reduce the rates. The bill prohibits the related income tax benefit from being included in the computation of income tax expense to reduce the rates if an expense is not allowed to be included in utility rates or an investment is not included in the utility rate base. The bill requires the income tax expense of an electric utility to be computed using the statutory income tax rates. The bill removes a provision requiring an electric utility's income taxes to be computed as though a consolidated return had been filed and the utility had realized its fair share of the savings resulting from that return if the utility is a member of an affiliated group eligible to file a consolidated income tax return and it is advantageous to the utility to do so, unless it is shown to the satisfaction of the regulatory authority that it was reasonable to choose not to consolidate returns.