HBA-SEB H.B. 1985 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1985
By: Lewis, Ron
Energy Resources
3/16/1999
Introduced


BACKGROUND AND PURPOSE 

Recently, many cities have undertaken renovations and improvements to
existing infrastructure. Such projects often require the relocation of
natural gas pipes, and the local distribution companies (LDCs) owning the
pipes are not directly reimbursed by the city for costs incurred in moving
them. H.B. 1985 authorizes a natural gas LDC, over a period of one to three
years, to recover the unreimbursed costs of a mandated facility relocation
through a surcharge on gas volumes sold and transported to customers in the
jurisdiction where the relocation occurred.  Since the surcharge is a
visible cost to customers, LDCs and the municipalities may be more inclined
to cooperate in order to fully plan facility relocations.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 104, Utilities Code, by adding
Section 104.112, as follows: 

Sec. 104.112.  SURCHARGE TO RECOVER RELOCATION COSTS.  (a)  Provides that
this section applies to a gas utility's costs of relocating a facility to
accommodate construction or improvement of a highway, road, street, public
way, or other public work by or on behalf of the United States, this state,
a political subdivision of this state, or another entity having the power
of eminent domain if the costs are not reimbursed by a source other than as
provided by this section. 

(b)  Authorizes a gas utility to recover its relocation costs through a
surcharge on gas volumes sold and transported to customers in the
jurisdiction where the relocation occurred by filing a new rate schedule or
tariff with the appropriate regulatory authority. Establishes that the gas
utility is not required to file a statement of intent to charge the
surcharge.  Provides that the other provisions of this subchapter (Rate
Changes Proposed by Utility) do not apply to the institution of the
surcharge. 

(c)  Requires the regulatory authority to administratively approve the new
rate schedule or tariff.  Prohibits the regulatory authority from
preventing the collection of the surcharge or changing the amount of the
surcharge under Subchapter D (Rate Changes Proposed by Commission) unless
the regulatory authority determines that the surcharge is unduly
discriminatory among customers or classes of customers located in the
jurisdiction or unless the period over which the relocation costs will be
recovered is less than one or more than three years. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.