1-1     By:  Lewis of Orange (Senate Sponsor - Armbrister)    H.B. No. 1985
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on
 1-4     Natural Resources; May 3, 1999, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 3, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to recovery of certain relocation costs by a gas utility.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subchapter C, Chapter 104, Utilities Code, is
1-11     amended by adding Section 104.112 to read as follows:
1-12           Sec. 104.112.  SURCHARGE TO RECOVER RELOCATION COSTS.  (a)
1-13     This section applies to a gas utility's costs of relocating a
1-14     facility to accommodate construction or improvement of a highway,
1-15     road, street, public way, or other public work by or on behalf of
1-16     the United States, this state, a political subdivision of this
1-17     state, or another entity having the power of eminent domain that
1-18     are not reimbursed by a source other than as provided by this
1-19     section.
1-20           (b)  A gas utility may recover its relocation costs to which
1-21     this section applies through a surcharge on gas volumes sold and
1-22     transported to customers in the service area where the relocation
1-23     occurred by applying to each appropriate regulatory authority for a
1-24     new rate schedule or tariff.  The gas utility is not required to
1-25     file a statement of intent to increase rates to institute the
1-26     surcharge, and the other provisions of this subchapter, other than
1-27     appeal rights, do not apply to institution of the surcharge.
1-28           (c)  An application under Subsection (b) must include
1-29     sufficient documentation to demonstrate:
1-30                 (1)  the requirement for each relocation;
1-31                 (2)  the entity requiring the relocation;
1-32                 (3)  costs incurred for relocation of comparable
1-33     facilities;
1-34                 (4)  surcharge computations; and
1-35                 (5)  that reasonable efforts have been made to receive
1-36     reimbursement from the entity requiring the relocation, if
1-37     applicable.
1-38           (d)  Not later than the 30th day after the date on which all
1-39     of the documentation required by Subsection (c) has been received,
1-40     the regulatory authority shall administratively grant or deny the
1-41     application.  Denial of the application must be based on a finding
1-42     that:
1-43                 (1)  the relocation was not necessary or required;
1-44                 (2)  the costs of the relocation were excessive or not
1-45     supported;
1-46                 (3)  the utility did not pursue reimbursement from the
1-47     entity requiring the relocation, if applicable;
1-48                 (4)  the surcharge is unduly discriminatory among
1-49     customers or classes of customers located in the service area; or
1-50                 (5)  the period over which the relocation costs are
1-51     designed to be recovered is less than one or more than three years.
1-52           SECTION 2.  This Act takes effect September 1, 1999, and
1-53     applies only to a relocation project commenced on or after that
1-54     date.
1-55           SECTION 3.  The importance of this legislation and the
1-56     crowded condition of the calendars in both houses create an
1-57     emergency and an imperative public necessity that the
1-58     constitutional rule requiring bills to be read on three several
1-59     days in each house be suspended, and this rule is hereby suspended.
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