Journal of the Senate, Regular Session of the Seventy-Ninth Legislature of the State of Texas, Volume 3 Page: 2,552
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Sec. 36.065. PENSION AND OTHER POSTEMPLOYMENT BENEFITS. (a)
The regulatory authority shall include in the rates of an electric utility expenses for
pension and other postemployment benefits, as determined by actuarial or other
similar studies in accordance with generally accepted accounting principles, in an
amount the regulatory authority finds reasonable. Expenses for pension and other
postemployment benefits include, in an amount found reasonable by the regulatory
authority, the benefits attributable to the service of employees who were employed by
the predecessor integrated electric utility of an electric utility before the utility's
unbundling under Chapter 39 irrespective of the business activity performed by the
employee or the affiliate to which the employee was transferred on or after the
unbundling.
(b) Effective January 1, 2005, an electric utility may establish one or more
reserve accounts for expenses for pension and other postemployment benefits. An
electric utility shall periodically record in the reserve account any difference between:
(1) the annual amount of pension and other postemployment benefits
approved as an operating expense in the electric utility's last general rate proceeding
or, if that amount cannot be determined from the regulatory authority's order, the
amount recorded for pension and other postemployment benefits under generally
accepted accounting principles during the first year that rates from the electric utility's
last general rate proceeding are in effect; and
(2) the annual amount of pension and other postemployment benefits as
determined by actuarial or other similar studies that are chargeable to the electric
utility's operating expense.
(c) A surplus in the reserve account exists if the amount of pension and other
postemployment benefits under Subsection (b)(1) is greater than the amount
determined under Subsection (b)(2). A shortage in the reserve account exists if the
amount of pension and other postemployment benefits under Subsection (b)(1) is less
than the amount determined under Subsection (b)(2).
(d) If a reserve account for pension and other postemployment benefits is
established, the regulatory authority at a subsequent general rate proceeding shall:
(1) review the amounts recorded to the reserve account to determine
whether the amounts are reasonable expenses;
(2) determine whether the reserve account has a surplus or shortage under
Subsection (c); and
(3) subtract any surplus from or add any shortage to the electric utility's rate
base with the surplus or shortage amortized over a reasonable time.
SECTION 2. 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, 2005.
The amendment was read.
Senator Averitt moved to concur in the House amendment to SB 1447.
The motion prevailed by the following vote: Yeas 29, Nays 0.
Absent-excused: Janek, Staples.2552
79th Legislature - Regular Session
73rd Day
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Texas. Legislature. Senate. Journal of the Senate, Regular Session of the Seventy-Ninth Legislature of the State of Texas, Volume 3, legislative document, 2005; (https://texashistory.unt.edu/ark:/67531/metapth123809/m1/50/: accessed May 5, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.