By: Bailey H.B. No. 142 73R1448 CBH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authority of the Public Utility Commission of Texas 1-3 to increase a utility's rates because of a change in tax liability. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 43(j), Public Utility Regulatory Act 1-6 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read 1-7 as follows: 1-8 (j) The commission on its own motion or on the petition of a 1-9 utility shall provide for the adjustment of a utility's billing to 1-10 reflect any increase or decrease of tax liability of the utility to 1-11 the state resulting from House Bill 11, Acts of the 72nd 1-12 Legislature, 1st Called Session, 1991, and that is attributable to 1-13 activities that are subject to the jurisdiction of the commission. 1-14 The commission may adjust a utility's billing to reflect an 1-15 increase of tax liability only if the commission finds, after a 1-16 public hearing, that the utility's increased tax liability will 1-17 result in the utility receiving a rate of return on invested 1-18 capital that is unreasonably low. Any adjustment to billings under 1-19 this section must be apportioned pro-rata to all types and classes 1-20 of service provided by the utility and is effective only until the 1-21 commission alters the adjustment as provided by this subsection or 1-22 enters an order for the utility under this section or Section 42 of 1-23 this Act. The adjustment of billings must be made effective at the 1-24 same time as the increase or decrease of tax liability resulting 2-1 from House Bill 11, Acts of the 72nd Legislature, 1st Called 2-2 Session, 1991, or as soon after as is reasonably practical. Each 2-3 year after any original adjustment, the commission shall review the 2-4 utility's increase or decrease of tax liability resulting from 2-5 House Bill 11, Acts of the 72nd Legislature, 1st Called Session, 2-6 1991, and alter the adjustment to the extent authorized under this 2-7 subsection to reflect the increase or decrease. A proceeding under 2-8 this subsection is not a rate case under this section. 2-9 SECTION 2. This Act applies to a proceeding in which a final 2-10 order has not been issued before the effective date of this Act. 2-11 SECTION 3. The importance of this legislation and the 2-12 crowded condition of the calendars in both houses create an 2-13 emergency and an imperative public necessity that the 2-14 constitutional rule requiring bills to be read on three several 2-15 days in each house be suspended, and this rule is hereby suspended, 2-16 and that this Act take effect and be in force from and after its 2-17 passage, and it is so enacted.