1-1 By: Carriker S.B. No. 421
1-2 (In the Senate - Filed February 19, 1993; February 22, 1993,
1-3 read first time and referred to Committee on Economic Development;
1-4 March 30, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; March 30, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 421 By: Lucio
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the requirement of notice of requests by gas utilities
1-24 for rate increases and to the statutory procedures for approval and
1-25 refund of temporary rates in gas utility rate cases.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Subsection (a), Section 5.08, Gas Utility
1-28 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), is
1-29 amended to read as follows:
1-30 (a) No utility may increase its rates except by filing a
1-31 statement of intent with the regulatory authority having original
1-32 jurisdiction at least 35 days prior to the effective date of the
1-33 proposed increase. The statement of intent shall include proposed
1-34 revisions of tariffs and schedules and a statement specifying in
1-35 detail each proposed increase, the effect the proposed increase is
1-36 expected to have on the revenues of the company, the classes and
1-37 numbers of utility consumers affected, and other information
1-38 required by the regulatory authority's rules and regulations. A
1-39 copy of the statement shall be mailed or delivered at the time of
1-40 filing to the appropriate officer of each affected municipality.
1-41 Notice<, and notice> shall also be given by publication of a notice
1-42 to the public in conspicuous form and place <by placing a notice to
1-43 the public of the proposed increase once in each week for four
1-44 successive weeks> in a newspaper having general circulation in each
1-45 county containing territory affected by the proposed increase. The
1-46 notice shall be published for four successive weeks prior to the
1-47 effective date of the proposed increase. In addition to newspaper
1-48 publication, the utility shall deliver notice of the proposed
1-49 increase to all affected utility customers by mail or bill insert
1-50 prior to the effective date of the proposed increase. Notice shall
1-51 also be given by delivery of notice <and> to such other affected
1-52 persons as required by the regulatory authority's rules and
1-53 regulations. However, notwithstanding the above, instead of the
1-54 publication of newspaper notice contemplated above, a gas utility
1-55 may provide notice to the public in areas outside the limits of the
1-56 municipalities<,> and within the limits of municipalities with a
1-57 population of less than 2,500 according to the most recent federal
1-58 census by mailing such notice prior to the effective date of the
1-59 proposed increase by United States mail, postage prepaid, to the
1-60 billing address of each directly affected customer<,> or by
1-61 including the notice in such customer's bill in a conspicuous form.
1-62 SECTION 2. Subsection (e), Section 3.05, Gas Utility
1-63 Regulatory Act (Article 1446e, Vernon's Texas Civil Statutes), is
1-64 amended to read as follows:
1-65 (e) The railroad commission shall hear the appeal de novo
1-66 based on the test year presented to the municipality, adjusted for
1-67 known changes and conditions that are measurable with reasonable
1-68 accuracy, and by its final order, which shall be entered not more
2-1 than 185 days from the date the appeal is perfected, the railroad
2-2 commission shall fix such rates that the municipality should have
2-3 fixed in the ordinance from which the appeal was taken. In the
2-4 event that the railroad commission fails to enter its final order
2-5 within 185 days from the date the appeal is perfected, the schedule
2-6 of rates proposed by the utility shall be deemed to have been
2-7 approved by the commission and effective upon the expiration of the
2-8 185-day period. Any rates, whether temporary or permanent, set by
2-9 the railroad commission shall be prospective and observed from and
2-10 after the applicable order of the railroad commission. However,
2-11 <except> interim <rate> orders establishing temporary rates
2-12 necessary to provide the utility the opportunity to avoid
2-13 confiscation during the 185-day period may be made effective
2-14 <beginning> on the date of filing of the <a> petition for review
2-15 with the railroad commission <and ending on the date of a final
2-16 order setting rates>. The railroad commission may order a refund
2-17 of temporary rates which exceed the final rates unless the
2-18 commission finds that the cost to the utility of making the refund
2-19 would exceed the amount of the refund.
2-20 SECTION 3. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.
2-25 * * * * *
2-26 Austin,
2-27 Texas
2-28 March 30, 1993
2-29 Hon. Bob Bullock
2-30 President of the Senate
2-31 Sir:
2-32 We, your Committee on Economic Development to which was referred
2-33 S.B. No. 421, have had the same under consideration, and I am
2-34 instructed to report it back to the Senate with the recommendation
2-35 that it do not pass, but that the Committee Substitute adopted in
2-36 lieu thereof do pass and be printed.
2-37 Parker,
2-38 Chairman
2-39 * * * * *
2-40 WITNESSES
2-41 FOR AGAINST ON
2-42 ___________________________________________________________________
2-43 Name: James Brazell x
2-44 Representing: Railroad Commission of Texas
2-45 City: Austin
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