Texas 2025 - 89th Regular

Texas Senate Bill SB2780

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the recovery of a gas utility's gross plant placed in service not yet being recovered in rates.

Impact

The implications of SB2780 on state laws are significant in that it establishes a mechanism for gas utilities to recover various costs related to their gross plant that have not yet been passed on to consumers. This includes carrying costs, depreciation, and certain operational expenses. It presents a structured approach for utilities to manage their rate recovery processes, which may ultimately affect how rates are set for consumers in the long term. The bill mandates that these costs be reviewed by the Railroad Commission, reinforcing the regulatory framework governing utility rates in Texas.

Summary

Senate Bill 2780 (SB2780) is legislation that addresses the recovery of costs associated with a gas utility's gross plant that has been placed in service but is not yet being recovered through customer rates. The bill introduces a new section to the Utilities Code, specifically Sec. 104.302, defining terms such as 'gross plant' and 'unrecovered gross plant'. Additionally, it outlines provisions that allow gas utilities to defer certain costs as regulatory assets which are critical for their financial management and rate-making processes.

Contention

Notably, the bill highlights a shift towards providing gas utilities with more leeway in financial recovery, which may raise concerns among consumer advocacy groups about potential rate increases. The provision allowing for the accumulation of regulatory assets raises questions about accountability and transparency in how utilities manage their costs. There may be contention surrounding the effectiveness of the Railroad Commission in overseeing these regulatory asset evaluations, especially with regard to protecting consumer interests while balancing the operational needs of gas utilities.

Texas Constitutional Statutes Affected

Utilities Code

  • Chapter 104. Rates And Services
    • Section: New Section

Companion Bills

TX HB4384

Identical Relating to the recovery of certain costs associated with a gas utility's plant, facilities, or equipment placed in service.

Previously Filed As

TX HB2555

Relating to transmission and distribution system resiliency planning by and cost recovery for electric utilities.

TX SB1111

Relating to transmission and distribution system resiliency planning by and cost recovery for electric utilities.

TX HB2073

Relating to the recovery of fuel and purchased power costs by electric utilities.

TX SB1095

Relating to the recovery of fuel and purchased power costs by electric utilities.

TX HB2061

Relating to the recovery of purchased power costs by electric utilities.

TX HB2262

Relating to gas utility alternative gas expenses and infrastructure investments.

TX SB1049

Relating to gas utility alternative gas expenses and infrastructure investments.

TX HB4790

Relating to the provision of natural gas by and rates charged by certain gas utilities.

TX SB2110

Relating to the provision of natural gas by and rates charged by certain gas utilities.

TX SB6

Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.

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