Bill > SB2780

This bill allows gas utilities in Texas to defer and later recover certain costs associated with their gross plant (infrastructure and equipment) that have been placed in service but are not yet included in their current rates. Specifically, a gas utility can defer for future recovery as a regulatory asset four types of costs: post in-service carrying costs (calculated by multiplying unrecovered gross plant by the utility's pre-tax weighted average cost of capital), depreciation, ad valorem taxes, and incremental operations and maintenance expenses related to the unrecovered gross plant. These deferred costs will be included in the Railroad Commission's authorized cost recovery mechanism and will be subject to review during a general rate proceeding, with the potential for refund if the Commission orders a disallowance. The Railroad Commission is required to adopt implementation rules within 180 days, and the bill will apply only to cost recovery proceedings commenced on or after its effective date. The bill takes effect immediately if it receives a two-thirds vote in the Texas Legislature, or otherwise becomes effective on September 1, 2025.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2780