By: Hancock S.B. No. 1002
 
  (Murphy)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to accounting principles applicable to pension and other
  postemployment benefit expenses for electric utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.065(b), Utilities Code, is amended to
  read as follows:
         (b)  An [Effective January 1, 2005, an] electric utility may
  establish one or more reserve accounts for expenses for pension and
  other postemployment benefits.  An electric utility shall
  periodically record in the reserve account any difference between:
               (1)  the annual amount of pension and other
  postemployment benefits approved as an [operating] expense in the
  electric utility's last general rate proceeding or, if that amount
  cannot be determined from the regulatory authority's order, the
  amount recorded for pension and other postemployment benefits under
  generally accepted accounting principles during the first year that
  rates from the electric utility's last general rate proceeding are
  in effect; and
               (2)  the annual amount of pension and other
  postemployment benefits as determined by actuarial or other similar
  studies that are chargeable to the electric utility's [operating]
  expense.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.