By: Darby (Senate Sponsor - Birdwell) H.B. No. 4384          (In the Senate - Received from the House May 8, 2025;   May 9, 2025, read first time and referred to Committee on Natural   Resources; May 15, 2025, reported favorably by the following vote:     Yeas 9, Nays 0; May 15, 2025, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the recovery of certain costs associated with a gas   utility's plant, facilities, or equipment placed in service.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter G, 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 an 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 a 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:                (1)  post in-service carrying costs;                (2)  depreciation associated with the unrecovered   gross plant; and                (3)  ad valorem taxes associated with the unrecovered   gross plant.          (c)  A regulatory asset established under Subsection (b)   must be included in the railroad commission's authorized cost   recovery mechanism under Section 104.301.          (d)  On recovery in rates of a regulatory asset established   by a gas utility under Subsection (b), the gas utility shall make   appropriate accounting adjustments to reflect the recovery in   rates.          (e)  The railroad commission shall review the costs included   in a regulatory asset established by a gas utility under Subsection   (b) in a general rate proceeding. The costs are subject to a refund   with interest to the extent the railroad commission by order   disallows recovery in rates.          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.     * * * * *