Bill Text: TX SB403 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.
Sponsorship: Partisan Bill (Republican 2)
Status: (Passed) 2011-05-28 - Effective immediately [SB403 Detail]
Download: Texas-2011-SB403-Enrolled.html
| S.B. No. 403 | ||
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| relating to the consideration of pension and other postemployment | ||
| benefits in establishing the rates of a gas utility. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 104, Utilities Code, is | ||
| amended by adding Section 104.059 to read as follows: | ||
| Sec. 104.059. PENSION AND OTHER POSTEMPLOYMENT BENEFITS. | ||
| (a) In establishing a gas utility's rates, the regulatory | ||
| authority shall allow recovery of the gas utility's costs of | ||
| pensions and other postemployment benefits, as determined by | ||
| actuarial or other similar studies in accordance with generally | ||
| accepted accounting principles, in amounts the regulatory | ||
| authority finds reasonable and necessary. | ||
| (b) If a gas utility establishes one or more reserve | ||
| accounts for the purpose of tracking changes in the costs of | ||
| pensions and other postemployment benefits, the gas utility shall | ||
| periodically record in a reserve account any difference between: | ||
| (1) the annual amount of pension and other | ||
| postemployment benefits approved and included in the gas utility's | ||
| then current rates or, if that annual 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 gas | ||
| utility's last general rate proceeding were in effect; and | ||
| (2) the annual amount of costs of pensions and other | ||
| postemployment benefits as determined by actuarial or other similar | ||
| studies that would otherwise be recorded by the gas utility were | ||
| this provision not applicable. | ||
| (c) The gas utility must: | ||
| (1) establish separate reserve accounts for pensions | ||
| and for other postemployment benefits; and | ||
| (2) apply the same methodology to allocate pension and | ||
| other postemployment benefits between capital and expense as in the | ||
| gas utility's last rate case. | ||
| (d) A surplus in a reserve account exists if the amount of | ||
| pension and other postemployment benefits under Subsection (b)(1) | ||
| is greater than the amount determined under Subsection (b)(2). A | ||
| shortage in a reserve account exists if the amount of pension and | ||
| other postemployment benefits under Subsection (b)(1) is less than | ||
| the amount determined under Subsection (b)(2). | ||
| (e) If the gas utility establishes reserve accounts for the | ||
| costs of pensions and other postemployment benefits, the regulatory | ||
| authority at a subsequent general rate proceeding shall: | ||
| (1) review the amounts recorded to each reserve | ||
| account to determine whether the amounts are reasonable and | ||
| necessary; | ||
| (2) determine in accordance with Subsection (d) | ||
| whether each reserve account has a surplus or shortage; and | ||
| (3) subtract any surplus from or add any shortage to | ||
| the gas utility's rate base, with the surplus or shortage amortized | ||
| over a reasonable time. | ||
| SECTION 2. Subsections (b) through (e), Section 104.059, | ||
| Utilities Code, as added by this Act, apply only in relation to a | ||
| reserve account established by a gas utility on or after January 1, | ||
| 2012. | ||
| 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, 2011. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 403 passed the Senate on | ||
| April 7, 2011, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 403 passed the House on | ||
| May 13, 2011, by the following vote: Yeas 138, Nays 0, one | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
