By: Rosson S.B. No. 1121 A BILL TO BE ENTITLED AN ACT 1-1 relating to allowable expenses for utility companies. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Section 41, Subsection 3, Public Utility 1-4 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is 1-5 amended to read as follows: 1-6 (3) Expenses Disallowed. The regulatory authority 1-7 shall not consider for ratemaking purposes the following expenses: 1-8 (A) legislative advocacy expenses, whether made 1-9 directly or indirectly, including but not limited to legislative 1-10 advocacy expenses included in trade association dues; 1-11 (B) payments, except those made under an 1-12 insurance or risk-sharing arrangement executed before the date of 1-13 loss, made to cover costs of accident, equipment failure, or 1-14 negligence at a utility facility owned by a person or governmental 1-15 body not selling power inside the State of Texas; 1-16 (C) costs of processing a refund or credit under 1-17 Subsection (e) of Section 43 of this Act; or 1-18 (D) any expenditure found by the regulatory 1-19 authority to be unreasonable, unnecessary, or not in the public 1-20 interest, including but not limited to executive salaries, 1-21 advertising expenses, legal expenses, and civil penalties or fines. 1-22 Any salary, contract payment or payment of any other kind for 1-23 services is unreasonable if it is paid to or for the services of a 2-1 former employee of the utility who has received a severance payment 2-2 from the utility within the previous three years that exceeded the 2-3 former employee's highest annual base compensation unless the 2-4 severance payment plan was offered to all employees of the utility. 2-5 SECTION 2. The importance of this legislation and the 2-6 crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended, 2-10 and that this Act take effect and be in force from and after its 2-11 passage, and it is so enacted.