By: Carriker S.B. No. 421
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the requirement of notice of requests by gas utilities
1-2 for rate increases and to the statutory procedures for approval and
1-3 refund of temporary rates in gas utility rate cases.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (a), Section 5.08, Gas Utility
1-6 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), is
1-7 amended to read as follows:
1-8 (a) No utility may increase its rates except by filing a
1-9 statement of intent with the regulatory authority having original
1-10 jurisdiction at least 35 days prior to the effective date of the
1-11 proposed increase. The statement of intent shall include proposed
1-12 revisions of tariffs and schedules and a statement specifying in
1-13 detail each proposed increase, the effect the proposed increase is
1-14 expected to have on the revenues of the company, the classes and
1-15 numbers of utility consumers affected, and other information
1-16 required by the regulatory authority's rules and regulations. A
1-17 copy of the statement shall be mailed or delivered at the time of
1-18 filing to the appropriate officer of each affected municipality.
1-19 Notice<, and notice> shall also be given by publication of a notice
1-20 to the public in conspicuous form and place <by placing a notice to
1-21 the public of the proposed increase once in each week for four
1-22 successive weeks> in a newspaper having general circulation in each
1-23 county containing territory affected by the proposed increase. The
2-1 notice shall be published for four successive weeks prior to the
2-2 effective date of the proposed increase. In addition to newspaper
2-3 publication, the utility shall deliver notice of the proposed
2-4 increase to all affected utility customers by mail or bill insert
2-5 prior to the effective date of the proposed increase. Notice shall
2-6 also be given by delivery of notice <and> to such other affected
2-7 persons as required by the regulatory authority's rules and
2-8 regulations. However, notwithstanding the above, instead of the
2-9 publication of newspaper notice contemplated above, a gas utility
2-10 may provide notice to the public in areas outside the limits of the
2-11 municipalities<,> and within the limits of municipalities with a
2-12 population of less than 2,500 according to the most recent federal
2-13 census by mailing such notice prior to the effective date of the
2-14 proposed increase by United States mail, postage prepaid, to the
2-15 billing address of each directly affected customer<,> or by
2-16 including the notice in such customer's bill in a conspicuous form.
2-17 SECTION 2. Subsection (e), Section 3.05, Gas Utility
2-18 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), is
2-19 amended to read as follows:
2-20 (e) The railroad commission shall hear the appeal de novo
2-21 based on the test year presented to the municipality, adjusted for
2-22 known changes and conditions that are measurable with reasonable
2-23 accuracy, and by its final order, which shall be entered not more
2-24 than 185 days from the date the appeal is perfected, the railroad
2-25 commission shall fix such rates that the municipality should have
3-1 fixed in the ordinance from which the appeal was taken. In the
3-2 event that the railroad commission fails to enter its final order
3-3 within 185 days from the date the appeal is perfected, the schedule
3-4 of rates proposed by the utility shall be deemed to have been
3-5 approved by the commission and effective upon the expiration of the
3-6 185-day period. Any rates, whether temporary or permanent, set by
3-7 the railroad commission shall be prospective and observed from and
3-8 after the applicable order of the railroad commission. However,
3-9 <except> interim <rate> orders establishing temporary rates
3-10 necessary to provide the utility the opportunity to avoid
3-11 confiscation during the 185-day period may be made effective
3-12 <beginning> on the date of filing of the <a> petition for review
3-13 with the railroad commission <and ending on the date of a final
3-14 order setting rates>. The railroad commission may order a refund
3-15 of temporary rates which exceed the final rates unless the
3-16 commission finds that the cost to the utility of making the refund
3-17 would exceed the amount of the refund.
3-18 SECTION 3. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended.