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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of a gas utility's gross plant placed in |
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service not yet being recovered in rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 104, Utilities Code, is amended by |
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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 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, compounded at the gas utility's pre-tax weighted |
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average cost of capital until recovery. |
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(3) "Unrecovered gross plant" means gross plant whose |
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cost is not yet being recovered in a gas utility's rates and not |
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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 the following: |
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(1) post in-service carrying costs; |
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(2) depreciation associated with unrecovered gross |
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plant; |
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(3) ad valorem taxes associated with the unrecovered |
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gross plant; and |
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(4) incremental operations and maintenance expense |
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associated with the unrecovered gross plant and that is not being |
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recovered in rates. |
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(c) The regulatory asset established under Subsection (b) |
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shall be included in the railroad commission authorized cost |
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recovery mechanism under Section 104.301. |
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(d) Upon recovery in rates of the regulatory asset |
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established by a gas utility under Subsection (b), the gas utility |
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shall make appropriate accounting adjustments to reflect recovery |
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in rates. |
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(e) The costs included in the regulatory asset established |
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by a gas utility under Subsection (b) shall be reviewed by the |
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railroad commission in a general rate proceeding and are subject to |
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refund to the extent the railroad commission orders a disallowance. |
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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 180th 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. |