By:  Armbrister                                                   S.B. No. 1794
	(In the Senate - Filed March 21, 2005; April 4, 2005, read 
first time and referred to Committee on Natural Resources; 
April 26, 2005, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 11, Nays 0; April 26, 2005, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1794                                   By:  Barrientos


A BILL TO BE ENTITLED

AN ACT


relating to suspending the implementation of certain gas utilities' 
interim cost recovery and rate adjustments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (a), Section 104.301, Utilities Code, 
is amended to read as follows:
	(a)  A gas utility that has filed a rate case under 
Subchapter C within the preceding two years may file with the 
regulatory authority a tariff or rate schedule that provides for an 
interim adjustment in the utility's monthly customer charge or 
initial block rate to recover the cost of changes in the investment 
in service for gas utility services.  The adjustment shall be 
allocated among the gas utility's classes of customers in the same 
manner as the cost of service was allocated among classes of 
customers in the utility's latest effective rates for the area in 
which the tariff or rate schedule is implemented.  The gas utility 
shall file the tariff or rate schedule, or the annual adjustment 
under Subsection (c), with the regulatory authority at least 60 
days before the proposed implementation date of the tariff, rate 
schedule, or annual adjustment.  The gas utility shall provide 
notice of the tariff, rate schedule, or annual adjustment to 
affected customers by bill insert or direct mail not later than the 
45th day after the date the utility files the tariff, rate schedule, 
or annual adjustment with the regulatory authority.  During the 
60-day period, the regulatory authority may act to suspend the 
implementation of the tariff, rate schedule, or annual adjustment 
for up to 60 days.  After the issuance of a final order or decision 
by a regulatory authority in a rate case that is filed after the 
implementation of a tariff or rate schedule under this section, any 
change in investment that has been included in an interim 
adjustment in accordance with the tariff or rate schedule under 
this section shall no longer be subject to subsequent review for 
reasonableness or prudence.  Until the issuance of a final order or 
decision by a regulatory authority in a rate case that is filed 
after the implementation of a tariff or rate schedule under this 
section, all amounts collected under the tariff or rate schedule 
before the filing of the rate case are subject to refund.
	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.



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