H.B. No. 4384 introduces new provisions to the Utilities Code regarding the recovery of costs associated with a gas utility's plant, facilities, or equipment that have been placed in service. The bill adds Section 104.302, which defines key terms such as "gross plant," "post in-service carrying costs," and "unrecovered gross plant." It allows gas utilities to defer certain 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 outlines the process for accounting adjustments upon recovery.

The bill also stipulates that the Railroad Commission of Texas must adopt rules to implement the new section within 180 days of the Act's effective date. It clarifies that the provisions apply only to cost recovery proceedings initiated after the Act's effective date, while proceedings started before will follow the previous law. The Act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will become effective on September 1, 2025.

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