By: Hancock S.B. No. 1002
(In the Senate - Filed February 22, 2017; March 6, 2017,
read first time and referred to Committee on Business & Commerce;
March 22, 2017, reported favorably by the following vote: Yeas 8,
Nays 0; March 22, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to accounting principles applicable to pension and other
postemployment benefit expenses for electric utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.065(b), Utilities Code, is amended to
read as follows:
(b) An [Effective January 1, 2005, an] electric utility may
establish one or more reserve accounts for expenses for pension and
other postemployment benefits. An electric 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
electric utility's last general rate proceeding or, if that 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 electric 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 electric utility's [operating]
expense.
SECTION 2. 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, 2017.
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