HBA-SEB H.B. 1985 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1985 By: Lewis, Ron Energy Resources 3/16/1999 Introduced BACKGROUND AND PURPOSE Recently, many cities have undertaken renovations and improvements to existing infrastructure. Such projects often require the relocation of natural gas pipes, and the local distribution companies (LDCs) owning the pipes are not directly reimbursed by the city for costs incurred in moving them. H.B. 1985 authorizes a natural gas LDC, over a period of one to three years, to recover the unreimbursed costs of a mandated facility relocation through a surcharge on gas volumes sold and transported to customers in the jurisdiction where the relocation occurred. Since the surcharge is a visible cost to customers, LDCs and the municipalities may be more inclined to cooperate in order to fully plan facility relocations. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 104, Utilities Code, by adding Section 104.112, as follows: Sec. 104.112. SURCHARGE TO RECOVER RELOCATION COSTS. (a) Provides that this section applies to a gas utility's costs of relocating a facility to accommodate construction or improvement of a highway, road, street, public way, or other public work by or on behalf of the United States, this state, a political subdivision of this state, or another entity having the power of eminent domain if the costs are not reimbursed by a source other than as provided by this section. (b) Authorizes a gas utility to recover its relocation costs through a surcharge on gas volumes sold and transported to customers in the jurisdiction where the relocation occurred by filing a new rate schedule or tariff with the appropriate regulatory authority. Establishes that the gas utility is not required to file a statement of intent to charge the surcharge. Provides that the other provisions of this subchapter (Rate Changes Proposed by Utility) do not apply to the institution of the surcharge. (c) Requires the regulatory authority to administratively approve the new rate schedule or tariff. Prohibits the regulatory authority from preventing the collection of the surcharge or changing the amount of the surcharge under Subchapter D (Rate Changes Proposed by Commission) unless the regulatory authority determines that the surcharge is unduly discriminatory among customers or classes of customers located in the jurisdiction or unless the period over which the relocation costs will be recovered is less than one or more than three years. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.