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A BILL TO BE ENTITLED
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AN ACT
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relating to rates and methods of depreciation applied to a retired |
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class of property for regulated water utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.131, Water Code, is amended by |
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amending Subsection (c) to read as follows: |
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(c) The commission shall fix proper and adequate rates and |
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methods of depreciation, amortization, or depletion of the several |
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classes of property of each utility and shall require every utility |
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to carry a proper and adequate depreciation account in accordance |
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with those rates and methods and with any other rules the commission |
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prescribes. The commission shall also require the book cost less |
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net salvage of depreciable utility plant retired be charged in its |
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entirety to the accumulated depreciation account, consistent with |
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accounting treatment for other TCEQ and Texas PUC regulated |
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electric and gas utilities. Those rates, methods, and accounts |
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shall be utilized uniformly and consistently throughout the |
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rate-setting and appeal proceedings. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |