By: Williams S.B. No. 2306

(In the Senate - Filed March 13, 2009; March 31, 2009, read first time and referred to Committee on Natural Resources; April 14, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 10, Nays 0; April 14, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 2306 By: Seliger

A BILL TO BE ENTITLED

AN ACT

relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (c), Section 13.131, Water Code, is amended to read as follows:

(c) The commission shall fix proper and adequate rates and methods of depreciation, amortization, or depletion of the several classes of property of each utility and shall require every utility to carry a proper and adequate depreciation account in accordance with those rates and methods and with any other rules the commission prescribes. Rules adopted under this subsection must require the book cost less net salvage of depreciable utility plant retired to be charged in its entirety to the accumulated depreciation account in a manner consistent with accounting treatment of regulated electric and gas utilities in this state. Those rates, methods, and accounts shall be utilized uniformly and consistently throughout the rate-setting and appeal proceedings.

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, 2009.

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