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