1-1 AN ACT 1-2 relating to recovery of certain relocation costs by a gas utility. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter C, Chapter 104, Utilities Code, is 1-5 amended by adding Section 104.112 to read as follows: 1-6 Sec. 104.112. SURCHARGE TO RECOVER RELOCATION COSTS. (a) 1-7 This section applies to a gas utility's costs of relocating a 1-8 facility to accommodate construction or improvement of a highway, 1-9 road, street, public way, or other public work by or on behalf of 1-10 the United States, this state, a political subdivision of this 1-11 state, or another entity having the power of eminent domain that 1-12 are not reimbursed by a source other than as provided by this 1-13 section. 1-14 (b) A gas utility may recover its relocation costs to which 1-15 this section applies through a surcharge on gas volumes sold and 1-16 transported to customers in the service area where the relocation 1-17 occurred by applying to each appropriate regulatory authority for a 1-18 new rate schedule or tariff. The gas utility is not required to 1-19 file a statement of intent to increase rates to institute the 1-20 surcharge, and the other provisions of this subchapter, other than 1-21 appeal rights, do not apply to institution of the surcharge. 1-22 (c) An application under Subsection (b) must include 1-23 sufficient documentation to demonstrate: 1-24 (1) the requirement for each relocation; 2-1 (2) the entity requiring the relocation; 2-2 (3) costs incurred for relocation of comparable 2-3 facilities; 2-4 (4) surcharge computations; and 2-5 (5) that reasonable efforts have been made to receive 2-6 reimbursement from the entity requiring the relocation, if 2-7 applicable. 2-8 (d) Not later than the 30th day after the date on which all 2-9 of the documentation required by Subsection (c) has been received, 2-10 the regulatory authority shall administratively grant or deny the 2-11 application. Denial of the application must be based on a finding 2-12 that: 2-13 (1) the relocation was not necessary or required; 2-14 (2) the costs of the relocation were excessive or not 2-15 supported; 2-16 (3) the utility did not pursue reimbursement from the 2-17 entity requiring the relocation, if applicable; 2-18 (4) the surcharge is unduly 2-19 discriminatory among customers or classes of customers located in 2-20 the service area; or 2-21 (5) the period over which the relocation costs are 2-22 designed to be recovered is less than one or more than three years. 2-23 SECTION 2. This Act takes effect September 1, 1999, and 2-24 applies only to a relocation project commenced on or after that 2-25 date. 2-26 SECTION 3. The importance of this legislation and the 2-27 crowded condition of the calendars in both houses create an 3-1 emergency and an imperative public necessity that the 3-2 constitutional rule requiring bills to be read on three several 3-3 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1985 was passed by the House on April 16, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1985 was passed by the Senate on May 10, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor