82R2852 JJT-F
By: Eltife S.B. No. 403
A BILL TO BE ENTITLED
AN ACT
relating to the consideration of pension and other postemployment
benefits in establishing the rates of a gas utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 104, Utilities Code, is
amended by adding Section 104.059 to read as follows:
Sec. 104.059. PENSION AND OTHER POSTEMPLOYMENT BENEFITS.
(a) In establishing a gas utility's rates, the regulatory
authority shall allow expenses for pension and other postemployment
benefits, as determined by actuarial or other similar studies in
accordance with generally accepted accounting principles, in
amounts the regulatory authority finds reasonable and necessary.
(b) If a gas utility establishes one or more reserve
accounts for expenses for pension and other postemployment
benefits, the gas utility shall periodically record in the reserve
account any difference between:
(1) the annual amount of pension and other
postemployment benefits approved as an operating expense in the gas
utility's then current rates or, if that annual amount cannot be
determined from the regulatory authority's order, the amount
recorded for pension and other postemployment benefits under
generally accepted accounting principles during the first year that
rates from the gas utility's last general rate proceeding are in
effect; and
(2) the annual amount of pension and other
postemployment benefits as determined by actuarial or other similar
studies that are chargeable to the gas utility's operating expense.
(c) A surplus in a reserve account exists if the amount of
pension and other postemployment benefits under Subsection (b)(1)
is greater than the amount determined under Subsection (b)(2). A
shortage in a reserve account exists if the amount of pension and
other postemployment benefits under Subsection (b)(1) is less than
the amount determined under Subsection (b)(2).
(d) If the gas utility establishes a reserve account for
expenses for pension and other postemployment benefits, the
regulatory authority at a subsequent general rate proceeding shall:
(1) review the amounts recorded to the reserve account
to determine whether the amounts are reasonable and necessary
expenses;
(2) determine in accordance with Subsection (c)
whether the reserve account has a surplus or shortage; and
(3) subtract any surplus from or add any shortage to
the gas utility's rate base with the surplus or shortage amortized
over a reasonable time.
SECTION 2. Sections 104.059(b)-(d), Utilities Code, as
added by this Act, apply only in relation to a reserve account
established by a gas utility on or after January 1, 2012.
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.