By: Birdwell S.B. No. 2780               A BILL TO BE ENTITLED   AN ACT   relating to the recovery of a gas utility's gross plant placed in   service not yet being recovered in rates.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 104, Utilities Code, is amended by   adding Section 104.302 to read as follows:          Sec. 104.302.  RECOVERY OF CERTAIN COSTS FOR GROSS PLANT.     (a)  In this section:                (1)  "Gross plant" means a gas utility's plant,   facilities, or equipment that has been placed in service.                (2)  "Post in-service carrying costs" means the product   of unrecovered gross plant multiplied by a gas utility's pre-tax   weighted average cost of capital established in the railroad   commission's final order in the gas utility's most recent general   rate proceeding, compounded at the gas utility's pre-tax weighted   average cost of capital until recovery.                (3)  "Unrecovered gross plant" means gross plant whose   cost is not yet being recovered in a gas utility's rates and not   already being deferred to a regulatory asset.          (b)  A gas utility may defer for future recovery as a   regulatory asset the following:                (1)  post in-service carrying costs ;                (2)  depreciation associated with unrecovered gross   plant;                (3)  ad valorem taxes associated with the unrecovered   gross plant; and                (4)  incremental operations and maintenance expense   associated with the unrecovered gross plant and that is not being   recovered in rates.          (c)  The regulatory asset established under Subsection (b)   shall be included in the railroad commission authorized cost   recovery mechanism under Section 104.301.          (d)  Upon recovery in rates of the regulatory asset   established by a gas utility under Subsection (b), the gas utility   shall make appropriate accounting adjustments to reflect recovery   in rates.          (e) The costs included in the regulatory asset established by   a gas utility under Subsection (b) shall be reviewed by the railroad   commission in a general rate proceeding and are subject to refund to   the extent the railroad commission orders a disallowance.          SECTION 2.  The Railroad Commission of Texas shall adopt   rules to implement Section 104.302, Utilities Code, as added by   this Act, not later than the 180th day after the effective date of   this Act.          SECTION 3.  This Act applies only to a cost recovery   proceeding commenced on or after the effective date of this Act. A   cost recovery proceeding commenced before the effective date of   this Act is governed by the law in effect on the date the cost   recovery proceeding was commenced, and the former law is continued   in effect for that purpose.          SECTION 4.  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, 2025.