By: Averitt S.B. No. 1447
A BILL TO BE ENTITLED
AN ACT
relating to electric utility employee pension and other post
retirement benefit expense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 36, Utilities Code, is amended by adding
Section 36.065, to read as follows:
Sec. 36.065. EXPENSE FOR PENSION AND OTHER POST EMPLOYMENT
BENEFITS. (a) Effective January 1, 2005, an electric utility may
establish one or more reserve accounts for pension and other post
employment benefits expenses and shall periodically record to such
accounts a surplus (regulatory liability) or shortage (regulatory
asset) between the annual amounts approved in the Company's last
general rate proceeding as an operating expense and the annual
amounts determined by actuarial or similar studies that are
chargeable to operating expense. In a subsequent rate proceeding,
the regulatory authority shall review the amounts booked to such
reserve accounts to determine that the amounts are reasonable and
necessary expenses and shall subtract any surplus from or add any
shortage to the utility's rate base, with the surplus or shortage to
be amortized over a reasonable time.
(b) The regulatory authority shall include in the rates of
an electric utility expenses for pension and other post employment
benefits as determined by actuarial or similar studies of such
obligations, in an amount found reasonable by the regulatory
authority. With respect to all personnel who had been employed by
the predecessor integrated electric utility prior to the utility's
unbundling under Chapter 39 of this title, and irrespective of what
business activity they performed or which affiliate they may have
transferred to on or after unbundling, the portion of their pension
and other post employment benefit expense that arises from their
respective service with the predecessor integrated electric
utility shall be included in rates.
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, 2005.