S.B. No. 1016         AN ACT   relating to the consideration of employee compensation and benefits   in establishing the rates of electric utilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 36, Utilities Code, is   amended by adding Section 36.067 to read as follows:          Sec. 36.067.  CONSIDERATION OF COMPENSATION AND BENEFIT   EXPENSES. (a) In this section, "employee compensation and   benefits" includes base salaries, wages, incentive compensation,   and benefits. The term does not include:                (1)  pension or other postemployment benefits; or                (2)  incentive compensation for an officer of an   electric utility related to attaining:                      (A)  financial metrics; or                      (B)  metrics adverse to customers' interests as   determined by the commission.          (b)  When establishing an electric utility's rates, the   regulatory authority shall presume that employee compensation and   benefits expenses are reasonable and necessary if the expenses are   consistent with market compensation studies issued not earlier than   three years before the initiation of the proceeding to establish   the rates.          SECTION 2.  (a)  Section 36.067, Utilities Code, as added by   this Act, applies only to a proceeding for the establishment of   rates for which the regulatory authority has not issued a final   order or decision before the effective date of this Act.          (b)  A proceeding for which the regulatory authority has   issued a final order or decision before the effective date of this   Act is governed by the law in effect immediately before that date,   and that law is continued in effect for that purpose.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2023.             ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 1016 passed the Senate on   April 3, 2023, by the following vote:  Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 1016 passed the House on   April 20, 2023, by the following vote:  Yeas 141, Nays 1,   two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor