SRC-MKV H.B. 2718 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2718
77R10876 MTB-DBy: Lewis, Ron (Armbrister)
Natural Resources
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Renovations of and improvements to existing infrastructure often require
the relocation of natural gas pipes. Prior to 1999, the local distribution
companies (LDC) owning the pipes were not directly reimbursed for
relocation costs. The 76th Legislature authorized a natural gas LDC to
recover, through a surcharge on gas volumes sold and transported to
customers in the service area where the relocation occurred, the costs that
were not reimbursed. Current law gives each appropriate regulatory
authority 30 days to deny the application of a gas utility attempting to
recover relocation costs. Extending the time frame for regulatory reviews
to 35 days would conform the review period to existing state law and bring
more uniformity to the Utilities Code. H.B. 2718 provides that an
appropriate regulatory authority has 35 days to deny an application of a
gas utility attempting to recover relocation costs.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 104.112, Utilities Code, by amending Subsection
(d) and adding Subsection (e), as follows: 

(d) Requires the regulatory authority, not later than the 35th, rather than
30th, day after the date an application under Subsection (b) is received,
to administratively grant or deny the application. 

(e) Provides that if the regulating authority does not make a decision
before the deadline prescribed by Subsection (d), the application is
approved. 

SECTION 2.  Effective date: September 1, 2001.
            Makes application of this Act prospective.