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By: King |
S.B. No. 1016 |
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(In the Senate - Filed February 17, 2023; March 3, 2023, |
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read first time and referred to Committee on Business & Commerce; |
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March 27, 2023, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 11, Nays 0; March 27, 2023, |
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sent to printer.) |
| Click here to see the committee vote |
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COMMITTEE SUBSTITUTE FOR S.B. No. 1016 |
By: King |
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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 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 36.067 to read as follows: |
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Sec. 36.067. 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: |
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(1) pension or other postemployment benefits; or |
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(2) incentive compensation for an officer of an |
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electric utility related to attaining: |
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(A) financial metrics; or |
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(B) metrics adverse to customers' interests as |
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determined by the commission. |
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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 market compensation studies issued not earlier than |
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three years before the initiation of the proceeding to establish |
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the rates. |
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SECTION 2. (a) Section 36.067, Utilities Code, as added by |
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this Act, applies only to a proceeding for the establishment of |
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rates for which the regulatory authority has not issued a final |
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order or decision before the effective date of this 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 3. 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, 2023. |
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