H.B. No. 4384
 
 
 
 
AN ACT
  relating to the recovery of certain costs associated with a gas
  utility's plant, facilities, or equipment placed in service.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter G, Chapter 104, Utilities Code, is
  amended by adding Section 104.302 to read as follows:
         Sec. 104.302.  RECOVERY OF CERTAIN COSTS FOR GROSS PLANT.
  (a)  In this section:
               (1)  "Gross plant" means a gas utility's plant,
  facilities, or equipment that has been placed in service.
               (2)  "Post in-service carrying costs" means the product
  of an unrecovered gross plant multiplied by a gas utility's pre-tax
  weighted average cost of capital established in the railroad
  commission's final order in the gas utility's most recent general
  rate proceeding until recovery.
               (3)  "Unrecovered gross plant" means a gross plant
  whose cost is not yet being recovered in a gas utility's rates and
  not already being deferred to a regulatory asset.
         (b)  A gas utility may defer for future recovery as a
  regulatory asset:
               (1)  post in-service carrying costs;
               (2)  depreciation associated with the unrecovered
  gross plant; and
               (3)  ad valorem taxes associated with the unrecovered
  gross plant.
         (c)  A regulatory asset established under Subsection (b)
  must be included in the railroad commission's authorized cost
  recovery mechanism under Section 104.301.
         (d)  On recovery in rates of a regulatory asset established
  by a gas utility under Subsection (b), the gas utility shall make
  appropriate accounting adjustments to reflect the recovery in
  rates.
         (e)  The railroad commission shall review the costs included
  in a regulatory asset established by a gas utility under Subsection
  (b) in a general rate proceeding. The costs are subject to a refund
  with interest to the extent the railroad commission by order
  disallows recovery in rates.
         SECTION 2.  The Railroad Commission of Texas shall adopt
  rules to implement Section 104.302, Utilities Code, as added by
  this Act, not later than the 270th day after the effective date of
  this Act.
         SECTION 3.  This Act applies only to a cost recovery
  proceeding commenced on or after the effective date of this Act.  A
  cost recovery proceeding commenced before the effective date of
  this Act is governed by the law in effect on the date the cost
  recovery proceeding was commenced, and the former law is continued
  in effect for that purpose.
         SECTION 4.  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, 2025.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4384 was passed by the House on May 8,
  2025, by the following vote:  Yeas 135, Nays 10, 3 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4384 on May 28, 2025, by the following vote:  Yeas 121, Nays 11,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4384 was passed by the Senate, with
  amendments, on May 26, 2025, by the following vote:  Yeas 29, Nays
  2.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor