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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of employee compensation and benefits |
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in establishing the rates of electric and gas utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 36, Utilities Code, is |
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amended by adding Section 36.066 to read as follows: |
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Sec. 36.066. CONSIDERATION OF COMPENSATION AND BENEFIT |
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EXPENSES. (a) In this section, "employee compensation and |
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benefits" includes base salaries, wages, incentive compensation, |
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and benefits. The term does not include pension and other |
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postemployment benefits. |
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(b) When establishing an electric utility's rates, the |
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regulatory authority shall presume that employee compensation and |
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benefits expenses are reasonable and necessary if the expenses are |
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consistent with recent market compensation studies. |
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SECTION 2. Subchapter B, Chapter 104, Utilities Code, is |
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amended by adding Section 104.060 to read as follows: |
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Sec. 104.060. CONSIDERATION OF COMPENSATION AND BENEFIT |
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EXPENSES. (a) In this section, "employee compensation and |
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benefits" includes base salaries, wages, incentive compensation, |
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and benefits. The term does not include pension and other |
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postemployment benefits. |
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(b) When establishing a gas utility's rates, the regulatory |
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authority shall presume that employee compensation and benefits |
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expenses are reasonable and necessary if the expenses are |
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consistent with recent market compensation studies. |
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SECTION 3. (a) Sections 36.066 and 104.060, Utilities Code, |
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as added by this Act, apply only to a proceeding for the |
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establishment of rates for which the regulatory authority has not |
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issued a final order or decision before the effective date of this |
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Act. |
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(b) A proceeding for which the regulatory authority has |
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issued a final order or decision before the effective date of this |
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Act is governed by the law in effect immediately before that date, |
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and that law is continued in effect for that purpose. |
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SECTION 4. 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, 2019. |