Bill Text: TX SB1016 | 2023-2024 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the consideration of employee compensation and benefits in establishing the rates of electric utilities.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2023-05-05 - Effective immediately [SB1016 Detail]

Download: Texas-2023-SB1016-Introduced.html
  88R3201 DIO-F
 
  By: King S.B. No. 1016
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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, 2023.
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