79R2414 CBH-D

By:  West                                                         H.B. No. 471



A BILL TO BE ENTITLED

AN ACT

relating to the authority of a gas utility to implement a rate 
change by posting a bond.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 104.109(a), (c), and (d), Utilities 
Code, are amended to read as follows:
	(a)  A gas utility may put a changed rate into effect 
throughout the territory affected by the proposed change, including 
an area over which the railroad commission is exercising appellate 
jurisdiction, by filing a bond with the railroad commission
[regulatory authority] if:
		(1)  the 150-day suspension period prescribed by 
Section 104.107(a)(2) is extended under Section 104.107(b); and
		(2)  the commission [regulatory authority] fails to 
make a final determination before the 151st day after [within 90 
days from] the date the proposed increase would otherwise be 
effective.
	(c)  The bond must be:                                                         
		(1)  payable to the railroad commission [regulatory 
authority] in an amount, in a form, and with a surety approved by 
the commission [regulatory authority];  and
		(2)  conditioned on refund.                                                   
	(d)  The gas utility shall refund or credit against future 
bills:            
		(1)  money collected under the bonded rates in excess 
of the rate finally ordered;  and
		(2)  interest on that money, at the current interest 
rate as determined by the railroad commission [regulatory 
authority].
	SECTION 2.  This Act applies to a statement of intent to 
change rates filed with a regulatory authority under Section 
104.102, Utilities Code, on or after September 1, 2005.  A statement 
of intent filed before that date is governed by the law in effect on 
the date the statement is filed, and that law is continued in effect 
for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.