By: Schwertner S.B. No. 1364
A BILL TO BE ENTITLED
AN ACT
relating to the computation of an electric utility's income taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 36.060, Utilities Code,
is amended to read as follows:
(a) If an expense is allowed to be included in utility rates
or an investment is included in the utility rate base, the related
income tax benefit must be included in the computation of income tax
expense to reduce the rates. If an expense is not allowed to be
included in utility rates or an investment is not included in the
utility rate base, the related income tax benefit may not be
included in the computation of income tax expense to reduce the
rates. The income tax expense shall be computed using the statutory
income tax rates. [Unless it is shown to the satisfaction of the
regulatory authority that it was reasonable to choose not to
consolidate returns, an electric utility's income taxes shall be
computed as though a consolidated return had been filed and the
utility had realized its fair share of the savings resulting from
that return, if:
[(1) the utility is a member of an affiliated group
eligible to file a consolidated income tax return; and
[(2) it is advantageous to the utility to do so.]
SECTION 2. This Act takes effect September 1, 2013.