82R1576 KYF-D
By: Dutton H.B. No. 494
A BILL TO BE ENTITLED
AN ACT
relating to the recovery of certain rate case expenses by a water
and sewer utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.185(h), Water Code, is amended to
read as follows:
(h) The regulatory authority may not include for ratemaking
purposes:
(1) legislative advocacy expenses, whether made
directly or indirectly, including legislative advocacy expenses
included in trade association dues;
(2) costs of processing a refund or credit under
Section 13.187 of this chapter;
(3) legal expenses, including court costs and
attorney's, consultant, and expert witness fees, incurred by a
water and sewer utility in a contested proceeding under Section
13.187 or an appeal of that proceeding, other than legal expenses
described by Section 13.084; or
(4) [(3)] any expenditure found by the regulatory
authority to be unreasonable, unnecessary, or not in the public
interest, including executive salaries, advertising expenses,
legal expenses, and civil penalties or fines.
SECTION 2. Section 13.185(h), Water Code, as amended by
this Act, applies only to a statement of intent for which a
regulatory authority has not issued a final decision before the
effective date of this Act. A statement of intent for which a
regulatory authority has issued a final decision before the
effective date of this Act is governed by the law in effect on the
date that final decision was issued, and that law is continued in
effect for that purpose.
SECTION 3. 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, 2011.