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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of an electric utility's income taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 36.060, Utilities Code, |
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is amended to read as follows: |
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(a) If an expense is allowed to be included in utility rates |
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or an investment is included in the utility rate base, the related |
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income tax benefit must be included in the computation of income tax |
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expense to reduce the rates. If an expense is not allowed to be |
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included in utility rates or an investment is not included in the |
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utility rate base, the related income tax benefit may not be |
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included in the computation of income tax expense to reduce the |
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rates. The income tax expense shall be computed using the statutory |
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income tax rates. [Unless it is shown to the satisfaction of the
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regulatory authority that it was reasonable to choose not to
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consolidate returns, an electric utility's income taxes shall be
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computed as though a consolidated return had been filed and the
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utility had realized its fair share of the savings resulting from
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that return, if:
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[(1)
the utility is a member of an affiliated group
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eligible to file a consolidated income tax return; and
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[(2) it is advantageous to the utility to do so.] |
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SECTION 2. This Act takes effect September 1, 2013. |