LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 29, 2011 TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB966 by Murphy (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would authorize the Railroad Commission to allow expenses for pension and other postemployment benefits, as determined by actuarial or other similar studies in accordance with generally accepted accounting principles, in determining amounts the agency finds reasonable and necessary in establishing the rates of a gas utility. The bill also would require a gas utility to establish separate reserve accounts for pension and postemployment benefits and to use the same cost allocation method used in the utilitys last rate case to allocate pension and post-employment costs between capital investments and expenses. The bill's passage is not expected to have a significant impact on the Railroad Commission's workload. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:455 Railroad Commission LBB Staff: JOB, KJG, SZ, TL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 29, 2011
TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB966 by Murphy (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.), Committee Report 1st House, Substituted
TO: Honorable Byron Cook, Chair, House Committee on State Affairs
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB966 by Murphy (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.), Committee Report 1st House, Substituted
Honorable Byron Cook, Chair, House Committee on State Affairs
Honorable Byron Cook, Chair, House Committee on State Affairs
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB966 by Murphy (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.), Committee Report 1st House, Substituted
HB966 by Murphy (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would authorize the Railroad Commission to allow expenses for pension and other postemployment benefits, as determined by actuarial or other similar studies in accordance with generally accepted accounting principles, in determining amounts the agency finds reasonable and necessary in establishing the rates of a gas utility. The bill also would require a gas utility to establish separate reserve accounts for pension and postemployment benefits and to use the same cost allocation method used in the utilitys last rate case to allocate pension and post-employment costs between capital investments and expenses. The bill's passage is not expected to have a significant impact on the Railroad Commission's workload.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 455 Railroad Commission
455 Railroad Commission
LBB Staff: JOB, KJG, SZ, TL
JOB, KJG, SZ, TL