| 1 | 1 | | By: Miller of Comal H.B. No. 3610 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to rates and methods of depreciation applied to a retired |
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| 7 | 7 | | class of property for regulated water utilities. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 13.131, Water Code, is amended by |
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| 10 | 10 | | amending Subsection (c) to read as follows: |
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| 11 | 11 | | (c) The commission shall fix proper and adequate rates and |
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| 12 | 12 | | methods of depreciation, amortization, or depletion of the several |
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| 13 | 13 | | classes of property of each utility and shall require every utility |
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| 14 | 14 | | to carry a proper and adequate depreciation account in accordance |
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| 15 | 15 | | with those rates and methods and with any other rules the commission |
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| 16 | 16 | | prescribes. The commission shall also require the book cost less |
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| 17 | 17 | | net salvage of depreciable utility plant retired be charged in its |
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| 18 | 18 | | entirety to the accumulated depreciation account, consistent with |
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| 19 | 19 | | accounting treatment for other TCEQ and Texas PUC regulated |
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| 20 | 20 | | electric and gas utilities. Those rates, methods, and accounts |
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| 21 | 21 | | shall be utilized uniformly and consistently throughout the |
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| 22 | 22 | | rate-setting and appeal proceedings. |
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| 23 | 23 | | SECTION 2. This Act takes effect immediately if it receives |
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| 24 | 24 | | a vote of two-thirds of all the members elected to each house, as |
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| 25 | 25 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 26 | 26 | | Act does not receive the vote necessary for immediate effect, this |
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| 27 | 27 | | Act takes effect September 1, 2009. |
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