83R1523 RWG-F
By: Gooden H.B. No. 1457
A BILL TO BE ENTITLED
AN ACT
relating to expenses considered to determine net income for
purposes of a rate proceeding for an investor-owned water and sewer
utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.185, Water Code, is amended by
amending Subsection (d) and adding Subsection (h-1) to read as
follows:
(d) Except as provided by Subsection (h-1), net [Net] income
is the total revenues of the utility less all reasonable and
necessary expenses as determined by the regulatory authority. The
regulatory authority shall determine expenses and revenues in a
manner consistent with Subsections (e) through (h-1) [(h) of this
section].
(h-1) The regulatory authority may include for ratemaking
purposes only 50 percent of the reasonable and necessary rate case
expenses of an investor-owned utility.
SECTION 2. The changes in law made by this Act apply only to
a rate proceeding before the Texas Commission on Environmental
Quality that commences on or after the effective date of this Act.
A rate proceeding before the Texas Commission on Environmental
Quality that commenced before the effective date of this Act is
governed by the law in effect on the date the proceeding commenced,
and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.