HBA-SEP C.S.H.B. 2718 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2718
By: Lewis, Ron
Energy Resources
4/5/2001
Committee Report (Substituted)



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, through a surcharge on gas volumes sold and transported to
customers in the service area where the relocation occurred, the costs that
were not reimbursed.  Current law gives each appropriate regulatory
authority 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 would conform the review period to existing state law and bring
more uniformity to the Utilities Code.  C.S.H.B. 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

C.S.H.B. 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2718 modifies the original by conforming to Texas Legislative
Council style and format.