| 6 | 4 | | AN ACT |
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| 7 | 5 | | relating to accounting principles applicable to pension and other |
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| 8 | 6 | | postemployment benefit expenses for electric utilities. |
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| 9 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 8 | | SECTION 1. Section 36.065(b), Utilities Code, is amended to |
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| 11 | 9 | | read as follows: |
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| 12 | 10 | | (b) An [Effective January 1, 2005, an] electric utility may |
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| 13 | 11 | | establish one or more reserve accounts for expenses for pension and |
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| 14 | 12 | | other postemployment benefits. An electric utility shall |
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| 15 | 13 | | periodically record in the reserve account any difference between: |
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| 16 | 14 | | (1) the annual amount of pension and other |
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| 17 | 15 | | postemployment benefits approved as an [operating] expense in the |
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| 18 | 16 | | electric utility's last general rate proceeding or, if that amount |
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| 19 | 17 | | cannot be determined from the regulatory authority's order, the |
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| 20 | 18 | | amount recorded for pension and other postemployment benefits under |
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| 21 | 19 | | generally accepted accounting principles during the first year that |
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| 22 | 20 | | rates from the electric utility's last general rate proceeding are |
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| 23 | 21 | | in effect; and |
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| 24 | 22 | | (2) the annual amount of pension and other |
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| 25 | 23 | | postemployment benefits as determined by actuarial or other similar |
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| 26 | 24 | | studies that are chargeable to the electric utility's [operating] |
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| 27 | 25 | | expense. |
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| 28 | 26 | | SECTION 2. This Act takes effect immediately if it receives |
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| 29 | 27 | | a vote of two-thirds of all the members elected to each house, as |
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| 30 | 28 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 31 | 29 | | Act does not receive the vote necessary for immediate effect, this |
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| 32 | 30 | | Act takes effect September 1, 2017. |
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| 31 | + | ______________________________ ______________________________ |
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| 32 | + | President of the Senate Speaker of the House |
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| 33 | + | I hereby certify that S.B. No. 1002 passed the Senate on |
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| 34 | + | April 3, 2017, by the following vote: Yeas 31, Nays 0. |
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| 35 | + | ______________________________ |
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| 36 | + | Secretary of the Senate |
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| 37 | + | I hereby certify that S.B. No. 1002 passed the House on |
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| 38 | + | May 9, 2017, by the following vote: Yeas 146, Nays 0, one present |
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| 39 | + | not voting. |
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| 40 | + | ______________________________ |
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| 41 | + | Chief Clerk of the House |
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| 42 | + | Approved: |
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| 43 | + | ______________________________ |
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| 44 | + | Date |
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| 45 | + | ______________________________ |
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| 46 | + | Governor |
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