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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of certain expenses by an electric utility |
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or a water and sewer utility in a rate proceeding. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.061, Utilities Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) For purposes of Subsection (b)(2), the regulatory |
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authority may not allow as a cost or expense legal expenses incurred |
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by an electric utility for participating in a rate proceeding under |
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this title that exceed the greater of $50,000 or 50 percent of the |
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total legal expenses incurred by the electric utility to |
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participate in the proceeding. |
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SECTION 2. Section 13.185(h), Water Code, is amended to |
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read as follows: |
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(h) The regulatory authority may not include for ratemaking |
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purposes: |
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(1) legislative advocacy expenses, whether made |
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directly or indirectly, including legislative advocacy expenses |
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included in trade association dues; |
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(2) costs of processing a refund or credit under this |
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subchapter; [or] |
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(3) any expenditure found by the regulatory authority |
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to be unreasonable, unnecessary, or not in the public interest, |
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including executive salaries, advertising expenses, [legal |
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expenses,] and civil penalties or fines; or |
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(4) legal expenses for a rate proceeding that exceed |
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the greater of $50,000 or 50 percent of the total legal expenses |
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incurred by the utility for the proceeding or any other legal |
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expenses found by the regulatory authority to be unreasonable, |
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unnecessary, or not in the public interest. |
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SECTION 3. The changes in law made by this Act apply only to |
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a rate proceeding under Chapter 36, Utilities Code, or Chapter 13, |
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Water Code, as applicable, that begins on or after the effective |
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date of this Act. A rate proceeding that begins before the |
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effective date of this Act is governed by the law in effect on the |
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date the rate proceeding began, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |