TITLE: Relating to the consideration of employee compensation and benefits in establishing the rates of electric and gas utilities.

SUMMARY: Relating to the consideration of employee compensation and benefits in establishing the rates of electric and gas utilities.

FULL TEXT:
AN ACT relating to the consideration of employee compensation and benefits in establishing the rates of electric and gas 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 36.066 to read as follows: Sec. 36.066. 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 pension and other postemployment benefits. (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 recent market compensation studies. SECTION 2. Subchapter B, Chapter 104, Utilities Code, is amended by adding Section 104.060 to read as follows: Sec. 104.060. 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 pension and other postemployment benefits. (b) When establishing a gas utility's rates, the regulatory authority shall presume that employee compensation and benefits expenses are reasonable and necessary if the expenses are consistent with recent market compensation studies. SECTION 3. (a) Sections 36.066 and 104.060, Utilities Code, as added by this Act, apply 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 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.