83R1749 DDT-F By: Harless H.B. No. 1148 A BILL TO BE ENTITLED AN ACT relating to the reimbursement of a municipality's expenses in a ratemaking proceeding for electric or gas utilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 33.023, Utilities Code, is amended by adding Subsections (c) and (d) to read as follows: (c) Notwithstanding Subsection (b), an electric utility is not required to reimburse the municipality under Subsection (b) if the utility, under a contract or franchise with the municipality, has agreed to pay total charges described by Section 182.025, Tax Code, in amounts that exceed the limits prescribed by Section 182.025(c), Tax Code. (d) In addition to the limitation prescribed by Subsection (c), an electric utility is not required to reimburse a municipality for the fees and expenses of persons engaged under Subsection (a) unless the municipality: (1) has paid the fees and expenses; or (2) by ordinance, expressly assumes the obligation to pay the fees and expenses and declares that the obligation is not contingent on the municipality's receipt of reimbursement under this section. SECTION 2. Section 103.022, Utilities Code, is amended by adding Subsections (c) and (d) to read as follows: (c) Notwithstanding Subsection (b), a gas utility is not required to reimburse the municipality under Subsection (b) if the utility, under a contract or franchise with the municipality, has agreed to pay total charges described by Section 182.025, Tax Code, in amounts that exceed the limits prescribed by Section 182.025(b), Tax Code. (d) In addition to the limitation prescribed by Subsection (c), a gas utility is not required to reimburse a municipality for the fees and expenses of persons engaged under Subsection (a) unless the municipality: (1) has paid the fees and expenses; or (2) by ordinance, expressly assumes the obligation to pay the fees and expenses and declares that the obligation is not contingent on the municipality's receipt of reimbursement under this section. SECTION 3. Sections 33.023(c) and 103.022(c), Utilities Code, as added by this Act, apply only to reimbursement tied to total charges paid under a contract or franchise entered into or renewed on or after the effective date of this Act. Reimbursement tied to total charges paid under a contract or franchise entered into or renewed before the effective date of this Act is governed by the law in effect on the date the contract was entered into or renewed, and that law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2013.