HB4427 - Relating to the recovery of certain expenses by an electric utility or a water and sewer utility in a rate proceeding.

  89R14642 CXP-D     By: Darby H.B. No. 4427       A BILL TO BE ENTITLED   AN ACT   relating to the recovery of certain expenses by an electric utility   or a water and sewer utility in a rate proceeding.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 36.061, Utilities Code, is amended by   adding Subsection (b-1) to read as follows:           (b-1)     For purposes of Subsection (b)(2), the regulatory   authority may not allow as a cost or expense legal expenses incurred   by an electric utility for participating in a rate proceeding under   this title that exceed the greater of $50,000 or 50 percent of the   total legal expenses incurred by the electric utility to   participate in the proceeding.          SECTION 2.  Section 13.185(h), Water Code, is amended to   read as follows:          (h)  The regulatory authority may not include for ratemaking   purposes:                (1)  legislative advocacy expenses, whether made   directly or indirectly, including legislative advocacy expenses   included in trade association dues;                (2)  costs of processing a refund or credit under this   subchapter; [ or ]                (3)  any expenditure found by the regulatory authority   to be unreasonable, unnecessary, or not in the public interest,   including executive salaries, advertising expenses, [ legal   expenses, ] and civil penalties or fines ; or                 (4)     legal expenses for a rate proceeding that exceed   the greater of $50,000 or 50 percent of the total legal expenses   incurred by the utility for the proceeding or any other legal   expenses found by the regulatory authority to be unreasonable,   unnecessary, or not in the public interest .          SECTION 3.  The changes in law made by this Act apply only to   a rate proceeding under Chapter 36, Utilities Code, or Chapter 13,   Water Code, as applicable, that begins on or after the effective   date of this Act.  A rate proceeding that begins before the   effective date of this Act is governed by the law in effect on the   date the rate proceeding began, and the former law is continued in   effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.