TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB2306 by Williams (Relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.), Committee Report 1st House, Substituted |
The bill would require that water utilities use the book cost less net salvage of depreciable utility plant retired to be charged in its entirety to the accumulated depreciation account of a utility, consistent with accounting treatment for other electric and gas utilities regulated by the Commission on Environmental Quality and the Pubic Utility Commission. The bill would thus allow a utility to account for the cost of salvaging an asset in book value if there is a loss on the salvage rather than a gain.
The bill's passage is not expected to have a significant fiscal impact on the state.
Source Agencies: | 473 Public Utility Commission of Texas, 582 Commission on Environmental Quality
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LBB Staff: | JOB, SZ, TL, WK
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