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. 1-60 * * * * *