The Railroad Commission has proposed a new rule to implement House Bill 4384 from the 89th Regular Session in 2025.
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The Texas Railroad Commission has begun setting rules for the implementation of a new law that will make it easier for gas utilities to hike rates.
That legislation, House Bill 4384 from the 89th Regular Session in 2025, allows gas utilities to deploy a special regulatory mechanism to quickly hike rates for some of their infrastructure and tax expenditures. Such rate adjustments would take effect in advance of any review in a general rate proceeding, although ratepayers would be entitled to refunds (with interest) if expenditures were later found to have been incurred imprudently.
HB 4384 expands upon the existing Gas Reliability Infrastructure Program that likewise allows for quick recovery of certain gas utility expenditures before substantive regulatory vetting. Gov. Greg Abbott signed House Bill 4384 into law on June 20, and it took effect immediately.
The Railroad Commission, which has authority over gas utility regulation, has proposed new rule §7.7102 to implement HB 4384, and will publish the rule proposal in the Oct. 17 issue of the Texas Register. Interested parties can submit comments on the proposal thorough Nov. 17.
For more information on this and other Railroad Commission rulemakings, or to access the online comment form for any proposed rulemakings, please see the Proposed Rules page at this link: http://www.rrc.texas.gov/