| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to expenses considered to determine net income for |
|
|
purposes of a rate proceeding for an investor-owned water and sewer |
|
|
utility. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 13.185, Water Code, is amended by |
|
|
amending Subsection (d) and adding Subsection (h-1) to read as |
|
|
follows: |
|
|
(d) Except as provided by Subsection (h-1), net [Net] income |
|
|
is the total revenues of the utility less all reasonable and |
|
|
necessary expenses as determined by the regulatory authority. The |
|
|
regulatory authority shall determine expenses and revenues in a |
|
|
manner consistent with Subsections (e) through (h-1) [(h) of this
|
|
|
section]. |
|
|
(h-1) The regulatory authority may include for ratemaking |
|
|
purposes only 50 percent of the reasonable and necessary rate case |
|
|
expenses of an investor-owned utility. |
|
|
SECTION 2. The changes in law made by this Act apply only to |
|
|
a rate proceeding before the Texas Commission on Environmental |
|
|
Quality that commences on or after the effective date of this Act. |
|
|
A rate proceeding before the Texas Commission on Environmental |
|
|
Quality that commenced before the effective date of this Act is |
|
|
governed by the law in effect on the date the proceeding commenced, |
|
|
and that law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2013. |