SRC-TJG, VRA S.B. 1438 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1438
78R5750 CBH-DBy: Armbrister
Natural Resources
4/30/2003
As Filed


DIGEST AND PURPOSE 

Under current law, intrastate gas pipeline companies are allowed to recoup
costs incurred as a result of contested regulatory cases before the Texas
Railroad Commission (RRC).  However, persons who buy and produce gas are
not allowed to do so.  As proposed, S.B. 1438 allows certain persons to
recover reasonable costs in relation to certain complaints filed with the
RRC against gas utilities. 

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 Subchapter C, Chapter 105, Utilities Code, by adding
Section 105.052, as follows: 
 
Sec. 105.052.  REIMBURSEMENT OF REASONABLE COSTS.  (a)  Requires a gas
utility, to the extent the regulatory authority determines the costs are
reasonable, to reimburse the costs of an affected person or a municipality
that is a party to a proceeding that results from a complaint filed
against the utility under Section 105.051 if the affected person or party
is wholly or partially successful in prosecuting the complaint before a
regulatory authority or a court. 
 
(b)  Provides that costs for which an affected person or a municipality
may receive reimbursement under this section include any reasonable
expenses related to the investigation, preparation, and prosecution of the
complaint, including the reasonable costs of consultants, accountants,
auditors, attorneys, and engineers. 
 
(c)  Authorizes an affected person or a municipality, for purposes of this
section, to recover reasonable costs not yet paid because payment has been
deferred pending a determination of reasonableness by the regulatory
authority. 
 
(d)  Prohibits a gas utility from recovering any amounts paid as
reimbursement under this section as or through a charge to the utility's
customers, notwithstanding any other provision of this subtitle. 
 
SECTION 2.Effective date:  September 1, 2003.
  Makes application of this Act prospective.