| TO: | Honorable Jim Keffer, Chair, House Committee on Energy Resources |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3410 by Chisum (Relating to costs incurred by certain persons in relation to complaints filed with the Railroad Commission of Texas against gas utilities.), As Introduced |
The bill would require the Railroad Commission (RRC) to determine the reasonableness of the administrative litigation costs incurred by an affected person or by a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill provides that to the extent a regulatory authority (a municipality or the RRC) determines the costs are reasonable, a gas utility must reimburse the costs of an affected person or of a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill would also permit the party to be reimbursed for any reasonably necessary expenses related to the investigation, preparation, and prosecution of a claim on which the person, agency, or municipality prevails, including the reasonable costs of consultants, accountants, auditors, attorneys, and engineers. The bill would also prohibit a gas utility from recovering amounts paid as reimbursement under this section as or through a charge to the utility's customers.
The RRC reports that the bill would not have a significant fiscal impact to the agency.
| Source Agencies: | 455 Railroad Commission
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| LBB Staff: | JOB, WK, TL
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