Texas Senate Bill SB403

Texas 2011 - 82nd Regular

• Out of Senate Committee: 3/28/11
• Introduced: 1/24/11
• Voted on by Senate: 4/7/11
• Refer: 2/2/11
• Out of House Committee: 4/28/11
• Report Pass: 3/28/11
• Voted on by House: 5/13/11
• Engrossed: 4/7/11
• Governor Action: 5/28/11
• Refer: 4/11/11
• Report Pass: 4/20/11
• Enrolled: 5/16/11
• Passed: 5/28/11

Caption

Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.

Impact

The introduction of SB403 is expected to have a significant impact on state utility regulations, particularly in how gas utilities calculate and manage their rates. By mandating that regulatory authorities allow gas utilities to recover pension and postemployment benefits costs, the bill aims to align utility rates with actual costs incurred. This alignment could lead to changes in the overall pricing for gas services, potentially affecting consumers and businesses relying on gas utilities in Texas.

Summary

Senate Bill 403 aims to modify the regulatory framework surrounding gas utilities in Texas by allowing the recovery of costs associated with pensions and other postemployment benefits in the rate-setting process. This bill adds a new section to the Utilities Code, specifically addressing how the costs related to these benefits should be considered by the regulatory authority when determining gas utility rates. By recognizing these costs, the bill seeks to ensure that gas utilities can sustainably manage their financial obligations to retired employees and maintain operational stability.

Contention

Notable points of contention surrounding SB403 include the implications for ratepayers, who may see fluctuations in gas prices as utilities adjust to the new provisions concerning their benefits costs. Critics may argue that increasing recovery rates for pension and postemployment benefits could lead to higher utility costs for consumers. Additionally, there could be discussions about the overall transparency and accountability of how these costs are tracked and reported by gas utilities, fostering debate on consumer protection and regulatory oversight within the utility sector.