81R3468 TJS-D
 
  By: Brown of Kaufman H.B. No. 1341
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the recovery of certain rate case expenses by a water
  and sewer utility.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 13.185(h), Water Code, is amended to
  read as follows:
         (h)  The regulatory authority may not include for ratemaking
  purposes:
               (1)  legislative advocacy expenses, whether made
  directly or indirectly, including legislative advocacy expenses
  included in trade association dues;
               (2)  costs of processing a refund or credit under
  Section 13.187 [of this chapter]; [or]
               (3)  legal expenses, including attorney, consultant,
  and expert witness fees and court costs, incurred by a water and
  sewer utility in a contested proceeding under Section 13.187 or in
  an appeal of that proceeding, other than legal expenses described
  by Section 13.084; or
               (4)  any expenditure found by the regulatory authority
  to be unreasonable, unnecessary, or not in the public interest,
  including executive salaries, advertising expenses, legal expenses
  not described by Subdivision (3), and civil penalties or fines.
         SECTION 2.  This Act applies only to a statement of intent
  for which a regulatory authority has not issued a final decision
  before the effective date of this Act. A statement of intent for
  which a regulatory authority has issued a final decision before the
  effective date of this Act is governed by the law in effect on the
  date that final decision was issued and that law is continued in
  effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2009.