Bill > HB4384

This bill allows gas utilities in Texas to defer and later recover certain costs associated with new plants, facilities, or equipment that have been placed in service. Specifically, the bill enables gas utilities to create a "regulatory asset" that can include post in-service carrying costs (calculated by multiplying the unrecovered gross plant value by the utility's pre-tax weighted average cost of capital), depreciation, and ad valorem taxes related to the unrecovered gross plant. These regulatory assets must be reviewed by the Railroad Commission of Texas in a general rate proceeding and can be subject to refund with interest if the commission disallows certain costs in rates. The bill requires the Railroad Commission to adopt implementing rules within 270 days of the Act's effective date and applies only to cost recovery proceedings commenced on or after the effective date. The Act will take effect immediately if it receives a two-thirds vote in both legislative chambers, otherwise it will take effect on September 1, 2025. This legislation provides a mechanism for gas utilities to manage and recover the financial costs associated with new infrastructure investments.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4384