HBA-SEP H.B. 2718 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2718 By: Lewis, Ron Energy Resources 6/14/2001 Enrolled BACKGROUND AND PURPOSE Renovations and improvements to existing infrastructure often require the relocation of natural gas pipes. Prior to1999, the local distribution companies (LDC) owning the pipes were not directly reimbursed for relocation costs. The 76th Legislature authorized a natural gas LDC to recover the costs that were not reimbursed through a surcharge on gas volumes sold and transported to customers in the service area where the relocation occurred. Prior to the 77th Legislature, each appropriate regulatory authority was given 30 days to deny the application of a gas utility attempting to recover relocation costs. Extending the time frame for regulatory reviews to 35 days conforms the review period to existing state law and brings more uniformity to the Utilities Code. House Bill 2718 provides that an appropriate regulatory authority has 35 days to deny an application of a gas utility attempting to recover relocation costs. 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. ANALYSIS House Bill 2718 amends the Utilities Code to provide that an appropriate regulatory authority has 35 rather than 30 days to deny an application of a gas utility to recover, through a surcharge on gas volumes, relocation costs incurred to accommodate a public work. EFFECTIVE DATE September 1, 2001.