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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of pension and other postemployment |
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benefits in establishing the rates of a gas utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 104, Utilities Code, is |
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amended by adding Section 104.059 to read as follows: |
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Sec. 104.059. PENSION AND OTHER POSTEMPLOYMENT BENEFITS. |
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(a) In establishing a gas utility's rates, the regulatory |
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authority shall allow expenses for pension and other postemployment |
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benefits, as determined by actuarial or other similar studies in |
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accordance with generally accepted accounting principles, in |
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amounts the regulatory authority finds reasonable and necessary. |
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(b) If a gas utility establishes one or more reserve |
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accounts for expenses for pension and other postemployment |
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benefits, the gas utility shall periodically record in the reserve |
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account any difference between: |
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(1) the annual amount of pension and other |
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postemployment benefits approved as an operating expense in the gas |
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utility's then current rates or, if that annual amount cannot be |
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determined from the regulatory authority's order, the amount |
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recorded for pension and other postemployment benefits under |
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generally accepted accounting principles during the first year that |
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rates from the gas utility's last general rate proceeding are in |
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effect; and |
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(2) the annual amount of pension and other |
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postemployment benefits as determined by actuarial or other similar |
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studies that are chargeable to the gas utility's operating expense. |
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(c) A surplus in a reserve account exists if the amount of |
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pension and other postemployment benefits under Subsection (b)(1) |
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is greater than the amount determined under Subsection (b)(2). A |
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shortage in a reserve account exists if the amount of pension and |
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other postemployment benefits under Subsection (b)(1) is less than |
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the amount determined under Subsection (b)(2). |
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(d) If the gas utility establishes a reserve account for |
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expenses for pension and other postemployment benefits, the |
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regulatory authority at a subsequent general rate proceeding shall: |
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(1) review the amounts recorded to the reserve account |
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to determine whether the amounts are reasonable and necessary |
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expenses; |
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(2) determine in accordance with Subsection (c) |
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whether the reserve account has a surplus or shortage; and |
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(3) subtract any surplus from or add any shortage to |
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the gas utility's rate base with the surplus or shortage amortized |
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over a reasonable time. |
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SECTION 2. Sections 104.059(b)-(d), Utilities Code, as |
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added by this Act, apply only in relation to a reserve account |
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established by a gas utility on or after January 1, 2012. |
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SECTION 3. 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, 2011. |