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A BILL TO BE ENTITLED
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AN ACT
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relating to accounting principles applicable to pension and other |
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postemployment benefit expenses for electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.065(b), Utilities Code, is amended to |
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read as follows: |
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(b) An [Effective January 1, 2005, an] electric utility may |
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establish one or more reserve accounts for expenses for pension and |
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other postemployment benefits. An electric utility shall |
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periodically record in the reserve 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 |
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electric utility's last general rate proceeding or, if that amount |
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cannot be determined from the regulatory authority's order, the |
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amount 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 electric utility's last general rate proceeding are |
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in 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 electric utility's [operating] |
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expense. |
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SECTION 2. 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, 2017. |