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.