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AN ACT
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relating to the recovery of certain costs associated with a gas |
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utility's plant, facilities, or equipment placed in service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 104, Utilities Code, is |
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amended by adding Section 104.302 to read as follows: |
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Sec. 104.302. RECOVERY OF CERTAIN COSTS FOR GROSS PLANT. |
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(a) In this section: |
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(1) "Gross plant" means a gas utility's plant, |
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facilities, or equipment that has been placed in service. |
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(2) "Post in-service carrying costs" means the product |
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of an unrecovered gross plant multiplied by a gas utility's pre-tax |
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weighted average cost of capital established in the railroad |
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commission's final order in the gas utility's most recent general |
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rate proceeding until recovery. |
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(3) "Unrecovered gross plant" means a gross plant |
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whose cost is not yet being recovered in a gas utility's rates and |
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not already being deferred to a regulatory asset. |
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(b) A gas utility may defer for future recovery as a |
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regulatory asset: |
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(1) post in-service carrying costs; |
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(2) depreciation associated with the unrecovered |
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gross plant; and |
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(3) ad valorem taxes associated with the unrecovered |
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gross plant. |
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(c) A regulatory asset established under Subsection (b) |
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must be included in the railroad commission's authorized cost |
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recovery mechanism under Section 104.301. |
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(d) On recovery in rates of a regulatory asset established |
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by a gas utility under Subsection (b), the gas utility shall make |
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appropriate accounting adjustments to reflect the recovery in |
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rates. |
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(e) The railroad commission shall review the costs included |
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in a regulatory asset established by a gas utility under Subsection |
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(b) in a general rate proceeding. The costs are subject to a refund |
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with interest to the extent the railroad commission by order |
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disallows recovery in rates. |
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SECTION 2. The Railroad Commission of Texas shall adopt |
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rules to implement Section 104.302, Utilities Code, as added by |
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this Act, not later than the 270th day after the effective date of |
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this Act. |
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SECTION 3. This Act applies only to a cost recovery |
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proceeding commenced on or after the effective date of this Act. A |
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cost recovery proceeding commenced before the effective date of |
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this Act is governed by the law in effect on the date the cost |
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recovery proceeding was commenced, and the former law is continued |
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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, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4384 was passed by the House on May 8, |
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2025, by the following vote: Yeas 135, Nays 10, 3 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 4384 on May 28, 2025, by the following vote: Yeas 121, Nays 11, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4384 was passed by the Senate, with |
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amendments, on May 26, 2025, by the following vote: Yeas 29, Nays |
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2. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |