SRC-AXB H.B. 1985 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1985
By: Lewis, Ron (Armbrister)
Natural Resources
4/27/1999
Engrossed


DIGEST 

Currently, renovations in downtown areas require local distribution
companies (LDC) to move company-owned facilities at their own expense.
These forced investments generate no incremental revenue for the LDC, and
the entity which required the move provides no reimbursement to the LDC.
Other utilities, besides gas companies, have the ability to pass on the
cost of forced relocations to their customers.  H.B. 1985 authorizes a gas
utility to increase rates, under certain conditions. 

PURPOSE

As proposed, H.B. 1985 authorizes a gas utility to increase rates, under
certain conditions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 104C, Utilities Code, by adding Section 104.112,
as follows: 

Sec.  104.112.  SURCHARGE TO RECOVER RELOCATION COSTS.  Sets forth gas
utility costs to which this section applies.  Authorizes a gas utility to
recover costs through a surcharge on gas volumes sold and transported to
customers, through an application process.  Provides that a gas utility is
not required to file a statement to increase rates, and sets forth
provisions which do not apply to the institution of a surcharge.  Sets
forth documentation requirements for an application.  Requires the
regulatory authority to administratively grant or deny the application by a
certain deadline.  Requires denial of the application to be based on
certain findings. 

SECTION 2.  Effective date:  September 1, 1999.
  Makes application of this Act prospective.

SECTION 3.  Emergency clause.