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Texas Utilities Code - UTIL § 104.302. Recovery of Certain Costs for Gross Plant

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Texas Utilities Code - UTIL § 104.302. Recovery of Certain Costs for Gross Plant - last updated January 01, 2024 | https://codes.findlaw.com/tx/utilities-code/util-sect-104-302/

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