Bill Text: TX SB403 | 2011-2012 | 82nd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-05-28 - Effective immediately [SB403 Detail]
Download: Texas-2011-SB403-Introduced.html
Bill Title: Relating to the consideration of pension and other postemployment benefits in establishing the rates of a gas utility.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-05-28 - Effective immediately [SB403 Detail]
Download: Texas-2011-SB403-Introduced.html
82R2852 JJT-F | ||
By: Eltife | 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 expenses for pension 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 expenses for pension and other postemployment | ||
benefits, the gas utility shall periodically record in the reserve | ||
account any difference between: | ||
(1) the annual amount of pension and other | ||
postemployment benefits approved as an operating expense 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 are in | ||
effect; and | ||
(2) the annual amount of pension and other | ||
postemployment benefits as determined by actuarial or other similar | ||
studies that are chargeable to the gas utility's operating expense. | ||
(c) 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). | ||
(d) If the gas utility establishes a reserve account for | ||
expenses for pension and other postemployment benefits, the | ||
regulatory authority at a subsequent general rate proceeding shall: | ||
(1) review the amounts recorded to the reserve account | ||
to determine whether the amounts are reasonable and necessary | ||
expenses; | ||
(2) determine in accordance with Subsection (c) | ||
whether the 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. Sections 104.059(b)-(d), 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. |