Tex. Utilities Code § 104.302
This is the official text of Tex. Utilities Code § 104.302, part of Texas’s Utilities Code — regulates utility companies.
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§ 104.302. RECOVERY OF CERTAIN COSTS FOR GROSS PLANT.
Official statutory text
(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 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.
(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 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.
Status: in_force · Read it on the official government site
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