H.B. No. 4384 introduces a new section, 104.302, to the Utilities Code, which outlines the recovery of certain costs associated with a gas utility's plant, facilities, or equipment that have been placed in service. The bill defines key terms such as "gross plant," "post in-service carrying costs," and "unrecovered gross plant." It allows gas utilities to defer specific costs, including post in-service carrying costs, depreciation, and ad valorem taxes related to unrecovered gross plant, as regulatory assets for future recovery. Additionally, it mandates that these regulatory assets be included in the railroad commission's authorized cost recovery mechanism and stipulates that the commission will review these costs during general rate proceedings.

The bill also establishes that any costs disallowed by the railroad commission will be subject to a refund with interest. The Railroad Commission of Texas is tasked with adopting rules to implement this new section within 270 days of the bill's effective date. The act will apply only to cost recovery proceedings initiated after its effective date, with proceedings started before that date governed by the previous law. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()