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By:  Bonnen                                                       H.B. No. 2878


A BILL TO BE ENTITLED
AN ACT
relating to transportation rates between a gas utility or municipally owned utility and a state agency. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 104.201(a), Utilities Code, is amended by adding (i) and (ii) to read as follows: (a) Notwithstanding Section 104.003(b), absent a contract for transportation service between a state agency and a gas utility or municipally owned utility, the railroad commission, not later than the 210th day after the date either party files a request to set a transportation rate, shall establish the transportation rate for the state agency. The commission has exclusive original jurisdiction to establish a transportation rate for a state agency under this section. (i) Prior to filing a request to set a transportation rate, a state agency may request all information in the possession of the gas utility or municipally owned utility necessary to calculate the cost of providing transportation service, including but not limited to financial statements and ledgers kept in accordance with the National Association of Regulatory Utility Commissioners' standards. (ii) If the gas utility or municipally owned utility fails to provide such information within ninety (90) days of the request by the state agency, then the gas utility or municipally owned utility waives any claim to rate case expenses in a subsequent rate case filed by either party. If the railroad commission finds the gas utility or municipally owned utility's failure to produce the requested information was an act of bad faith, then the railroad commission may order the gas utility or municipally owned utility to reimburse the reasonable rate case expenses of the state agency. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.