Bill Text: TX HB1021 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the consideration of employee compensation and benefits in establishing the rates of electric utilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-04 - Referred to State Affairs [HB1021 Detail]
Download: Texas-2021-HB1021-Introduced.html
| 87R3673 BRG-F | ||
| By: Murphy | H.B. No. 1021 | |
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| relating to the consideration of employee compensation and benefits | ||
| in establishing the rates of electric utilities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 36, Utilities Code, is | ||
| amended by adding Section 36.067 to read as follows: | ||
| Sec. 36.067. CONSIDERATION OF COMPENSATION AND BENEFIT | ||
| EXPENSES. (a) In this section, "employee compensation and | ||
| benefits" includes base salaries, wages, incentive compensation, | ||
| and benefits. The term does not include: | ||
| (1) pension or other postemployment benefits; and | ||
| (2) incentive compensation related to attaining | ||
| financial metrics for an executive officer whose compensation is | ||
| required to be disclosed under 17 C.F.R. Section 229.402(a). | ||
| (b) When establishing an electric utility's rates, the | ||
| regulatory authority shall presume that employee compensation and | ||
| benefits expenses are reasonable and necessary if the expenses are | ||
| consistent with market compensation studies issued not earlier than | ||
| three years before the initiation of the proceeding to establish | ||
| the rates. | ||
| SECTION 2. (a) Section 36.067, Utilities Code, as added by | ||
| this Act, applies only to a proceeding for the establishment of | ||
| rates for which the regulatory authority has not issued a final | ||
| order or decision before the effective date of this Act. | ||
| (b) A proceeding for which the regulatory authority has | ||
| issued a final order or decision before the effective date of this | ||
| Act is governed by the law in effect immediately before that date, | ||
| and that law is continued in effect for that purpose. | ||
| SECTION 3. 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, 2021. | ||
