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A BILL TO BE ENTITLED
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AN ACT
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relating to expenses considered to determine net income for |
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purposes of a rate proceeding for an investor-owned water and sewer |
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utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.185, Water Code, is amended by |
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amending Subsection (d) and adding Subsection (h-1) to read as |
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follows: |
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(d) Except as provided by Subsection (h-1), net [Net] income |
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is the total revenues of the utility less all reasonable and |
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necessary expenses as determined by the regulatory authority. The |
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regulatory authority shall determine expenses and revenues in a |
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manner consistent with Subsections (e) through (h-1) [(h) of this
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section]. |
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(h-1) The regulatory authority may include for ratemaking |
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purposes only 50 percent of the reasonable and necessary rate case |
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expenses of an investor-owned utility. |
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SECTION 2. The changes in law made by this Act apply only to |
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a rate proceeding before the Texas Commission on Environmental |
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Quality that commences on or after the effective date of this Act. |
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A rate proceeding before the Texas Commission on Environmental |
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Quality that commenced before the effective date of this Act is |
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governed by the law in effect on the date the proceeding commenced, |
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and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |