Texas 2011 - 82nd Regular

Texas House Bill HB966 Compare Versions

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Old	New	Differences
1	1	82R14431 JJT-F
2	2	By: Murphy H.B. No. 966
3	3	Substitute the following for H.B. No. 966:
4	4	By: Huberty C.S.H.B. No. 966
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the consideration of pension and other postemployment
10	10	benefits in establishing the rates of a gas utility.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 104, Utilities Code, is
13	13	amended by adding Section 104.059 to read as follows:
14	14	Sec. 104.059. PENSION AND OTHER POSTEMPLOYMENT BENEFITS.
15	15	(a) In establishing a gas utility's rates, the regulatory
16	16	authority shall allow recovery of the gas utility's costs of
17	17	pensions and other postemployment benefits, as determined by
18	18	actuarial or other similar studies in accordance with generally
19	19	accepted accounting principles, in amounts the regulatory
20	20	authority finds reasonable and necessary.
21	21	(b) If a gas utility establishes one or more reserve
22	22	accounts for the purpose of tracking changes in the costs of
23	23	pensions and other postemployment benefits, the gas utility shall
24	24	periodically record in a reserve account any difference between:
25	25	(1) the annual amount of pension and other
26	26	postemployment benefits approved and included in the gas utility's
27	27	then current rates or, if that annual amount cannot be determined
28	28	from the regulatory authority's order, the amount recorded for
29	29	pension and other postemployment benefits under generally accepted
30	30	accounting principles during the first year that rates from the gas
31	31	utility's last general rate proceeding were in effect; and
32	32	(2) the annual amount of costs of pensions and other
33	33	postemployment benefits as determined by actuarial or other similar
34	34	studies that would otherwise be recorded by the gas utility were
35	35	this provision not applicable.
36	36	(c) The gas utility must:
37	37	(1) establish separate reserve accounts for pensions
38	38	and for other postemployment benefits; and
39	39	(2) apply the same methodology to allocate pension and
40	40	other postemployment benefits between capital and expense as in the
41	41	gas utility's last rate case.
42	42	(d) A surplus in a reserve account exists if the amount of
43	43	pension and other postemployment benefits under Subsection (b)(1)
44	44	is greater than the amount determined under Subsection (b)(2). A
45	45	shortage in a reserve account exists if the amount of pension and
46	46	other postemployment benefits under Subsection (b)(1) is less than
47	47	the amount determined under Subsection (b)(2).
48	48	(e) If the gas utility establishes reserve accounts for the
49	49	costs of pensions and other postemployment benefits, the regulatory
50	50	authority at a subsequent general rate proceeding shall:
51	51	(1) review the amounts recorded to each reserve
52	52	account to determine whether the amounts are reasonable and
53	53	necessary;
54	54	(2) determine in accordance with Subsection (d)
55	55	whether each reserve account has a surplus or shortage; and
56	56	(3) subtract any surplus from or add any shortage to
57	57	the gas utility's rate base with the surplus or shortage amortized
58	58	over a reasonable time.
59	59	SECTION 2. Sections 104.059(b)-(e), Utilities Code, as
60	60	added by this Act, apply only in relation to a reserve account
61	61	established by a gas utility on or after January 1, 2012.
62	62	SECTION 3. This Act takes effect immediately if it receives
63	63	a vote of two-thirds of all the members elected to each house, as
64	64	provided by Section 39, Article III, Texas Constitution. If this
65	65	Act does not receive the vote necessary for immediate effect, this
66	66	Act takes effect September 1, 2011.