LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 24, 2011 TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB403 by Eltife (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, SZ, TL, KJG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 24, 2011
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB403 by Eltife (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 Troy Fraser, Chair, Senate Committee on Natural Resources
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB403 by Eltife (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility. ), Committee Report 1st House, Substituted
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB403 by Eltife (Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility. ), Committee Report 1st House, Substituted
SB403 by Eltife (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, SZ, TL, KJG
JOB, SZ, TL, KJG