HB 4384: gas utilities can book new pipe costs before rates

Caption

relating to the recovery of certain costs associated with a gas utility's plant, facilities, or equipment placed in service.

Caption from analyzed text · version E.

Summary

Compounding return included. Customers pay later.

This bill lets gas utilities book the costs of new pipes and equipment that are already in service but not yet in their rates, including a compounding return on that investment, depreciation and property taxes, and recover those costs from customers later. It touches gas utilities, their customers, and the Railroad Commission, which must write rules within 180 days and review the deferred costs in a full rate case. On the ground, utilities stop absorbing the gap between finishing a project and billing for it, customers eventually pay those deferred costs, and any costs the commission rejects must be refunded with interest.

Labels

Labels: INSTANT LAW. Took effect immediately, on Jun 20, 2025. 833 of the 1,185 graded 89R laws took effect Sep 1, 2025 (derived from the bill histories, snapshot Oct 19, 2026).

Receipt

The receipt

89R-HB4384 · 2025-03-11

SOLD BY

Rep. Drew DarbyRHouse 72

ITEM

relating to the recovery of certain costs associated with a gas utility's plant, facilities, or equipment placed in service.

WHAT IT DOES

Compounding return included. Customers pay later.

This bill lets gas utilities book the costs of new pipes and equipment that are already in service but not yet in their rates, including a compounding return on that investment, depreciation and property taxes, and recover those costs from customers later. It touches gas utilities, their customers, and the Railroad Commission, which must write rules within 180 days and review the deferred costs in a full rate case. On the ground, utilities stop absorbing the gap between finishing a project and billing for it, customers eventually pay those deferred costs, and any costs the commission rejects must be refunded with interest.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 27, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Mar 11, 2025Filed
Apr 1, 2025Read first time
Apr 1, 2025Referred to Energy Resources
Apr 7, 2025Scheduled for public hearing on . . .
Apr 7, 2025Considered in public hearing
Apr 7, 2025Testimony taken/registration(s) recorded in committee
Apr 7, 2025Left pending in committee
Apr 14, 2025Considered in public hearing
Apr 14, 2025Committee substitute considered in committee
Apr 14, 2025Reported favorably as substituted
Apr 22, 2025Comte report filed with Committee Coordinator
Apr 22, 2025Committee report distributed
Apr 23, 2025Committee report sent to Calendars
May 2, 2025Considered in Calendars
May 6, 2025Placed on General State Calendar
May 7, 2025Read 2nd time
May 7, 2025Passed to engrossment
May 7, 2025Record vote RV#1658
May 7, 2025Statement(s) of vote recorded in Journal
May 8, 2025Read 3rd time
May 8, 2025Passed
May 8, 2025Record vote RV#1773
May 8, 2025Statement(s) of vote recorded in Journal
May 8, 2025Reported engrossed
May 8, 2025Received from the House
May 9, 2025Read first time
May 9, 2025Referred to Natural Resources
May 14, 2025Scheduled for public hearing on . . .
May 14, 2025Considered in public hearing
May 14, 2025Testimony taken in committee
May 14, 2025Left pending in committee
May 14, 2025Posting rule suspended
May 14, 2025Considered in public hearing
May 14, 2025Vote taken in committee
May 15, 2025Reported favorably w/o amendments
May 15, 2025Recommended for local & uncontested calendar
May 15, 2025Committee report printed and distributed
May 19, 2025Placed on intent calendar
May 26, 2025Rules suspended-Regular order of business
May 26, 2025Record vote
May 26, 2025Read 2nd time
May 26, 2025Amendment(s) offered FA1 Birdwell
May 26, 2025Amended
May 26, 2025Vote recorded in Journal
May 26, 2025Passed to 3rd reading as amended
May 26, 2025Record vote
May 26, 2025Three day rule suspended
May 26, 2025Record vote
May 26, 2025Read 3rd time
May 26, 2025Passed
May 26, 2025Record vote
May 26, 2025Senate passage as amended reported
May 27, 2025Senate Amendments distributed
May 27, 2025Senate Amendments Analysis distributed
May 28, 2025House concurs in Senate amendment(s)
May 28, 2025Record vote RV#3998
May 28, 2025Statement(s) of vote recorded in Journal
May 28, 2025Text of Senate Amendment(s)
May 28, 2025House concurs in Senate amendment(s)-reported
May 29, 2025Reported enrolled
May 30, 2025Signed in the House
May 31, 2025Signed in the Senate
May 31, 2025Sent to the Governor
Jun 20, 2025Signed by the Governor
Jun 20, 2025Effective immediately

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 135 yea · 10 nay

Senate · 29 yea · 2 nay

Sources

House: Final passage · May 8, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 26, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Drew Darby

Donors

Texans for Truth and Liberty PAC$50KGideon Powell$30,000Dustin Burrows Campaign$28K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 9, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Truth and Liberty PAC$50,000.00

Texans for Truth and Liberty PAC

$50,000.00

Cash: $50,000.00
Paid by others: $0.00
Total: $50,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 8, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007659, 101072052.

Gideon Powell$30,000.00

Dustin Burrows Campaign$27,600.00

Dustin Burrows Campaign

$27,600.00

Cash: $0.00
Paid by others: $27,600.00
Total: $27,600.00

polling $27,600.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · on Aug 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068080.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Truth and Liberty PAC

$50,000.00

Cash: $50,000.00
Paid by others: $0.00
Total: $50,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 8, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007659, 101072052.

×

Dustin Burrows Campaign

$27,600.00

Cash: $0.00
Paid by others: $27,600.00
Total: $27,600.00

polling $27,600.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · on Aug 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068080.

Votes7

House May 28, 2025

Yea: 121
Nay: 11
Present, not voting: 1
Absent: 7
Excused: 10

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3998

Representative Darby moved to concur in the senate amendments to HB 4384. The motion to concur in the senate amendments to HB 4384 prevailed by (Record 3998): 121 Yeas, 11 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 121 (published)
Nay: 11 (published)
Present, not voting: 1 (published)
Absent: 7 (derived from named list)
Excused: 10 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea: 29
Nay: 2
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

The bill was read third time and was passed by the following vote: Yeas 29, Nays 2. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

Yea: 29 (published)
Nay: 2 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea: 29
Nay: 2
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator Birdwell moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 4384 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 29, Nays 2.

Published stock of positions for this vote, except where marked derived.

Yea: 29 (published)
Nay: 2 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea: 29
Nay: 2
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

HB 4384 as amended was passed to third reading by the following vote: Yeas 29, Nays 2.

Published stock of positions for this vote, except where marked derived.

Yea: 29 (published)
Nay: 2 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea: 29
Nay: 2
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator Birdwell moved to suspend the regular order of business to take up for consideration HB 4384 at this time on its second reading: HB 4384, Relating to the recovery of certain costs associated with a gas utility's plant, facilities, or equipment placed in service. The motion prevailed by the following vote: Yeas 29, Nays 2.

Published stock of positions for this vote, except where marked derived.

Yea: 29 (published)
Nay: 2 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

House May 8, 2025

Yea: 135
Nay: 10
Present, not voting: 3
Absent: 2
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1773

HB 4384 was passed by (Record 1773): 135 Yeas, 10 Nays, 3 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 135 (published)
Nay: 10 (published)
Present, not voting: 3 (published)
Absent: 2 (derived from named list)
Excused: 0 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 7, 2025

Yea: 134
Nay: 10
Present, not voting: 2
Absent: 1
Excused: 3

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1658

CSHB 4384 was passed to engrossment by (Record 1658): 134 Yeas, 10 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 134 (published)
Nay: 10 (published)
Present, not voting: 2 (published)
Absent: 1 (derived from named list)
Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses15

For: 5
Against: 8
On: 2

Names

For

CenterPoint Energy2 registrations
Self1 registration
Texas Pipeline Association2 registrations

Against

AARP Texas1 registration
Commission Shift Action1 registration
Lone Star Chapter Sierra Club2 registrations
Self; Atmos Texas Municipalities; Alliance of CenterPoint Municipalities; Alliance of West Texas Gas Municipalities1 registration
Steering Committee of Cities Served By Atmos1 registration
Steering Committee of Cities Served by Atmos1 registration
Texas Consumer Association1 registration

On

Railroad Commission1 registration
Railroad Commission of Texas1 registration

Sources

15 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 27, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version E by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Mar 11, 2025

06/20/2025 E Effective immediately

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Companion

SB 2780 by Birdwell (identical)

Subjects

Utilities--Natural Gas

RAILROAD COMMISSION

Text

The text as introduced · 464 words

By: Darby
H.B. No. 4384

A BILL TO BE ENTITLED

AN ACT

relating to the recovery of a gas utility's gross plant placed in

service not yet being recovered in rates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 104, Utilities Code, is amended by

adding Section 104.302 to read as follows:

Sec. 104.302. RECOVERY OF CERTAIN COSTS FOR GROSS PLANT.

(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 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, compounded at the gas utility's pre-tax weighted

average cost of capital until recovery.

(3) "Unrecovered gross plant" means 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 the following:

(1) post in-service carrying costs;

(2) depreciation associated with unrecovered gross

plant;

(3) ad valorem taxes associated with the unrecovered

gross plant; and

(4) incremental operations and maintenance expense

associated with the unrecovered gross plant and that is not being

recovered in rates.

(c) The regulatory asset established under Subsection (b)

shall be included in the railroad commission authorized cost

recovery mechanism under Section 104.301.

(d) Upon recovery in rates of the regulatory asset

established by a gas utility under Subsection (b), the gas utility

shall make appropriate accounting adjustments to reflect recovery

in rates.

(e) The costs included in the regulatory asset established

by a gas utility under Subsection (b) shall be reviewed by the

railroad commission in a general rate proceeding and are subject to

refund to the extent the railroad commission orders a disallowance.

SECTION 2. The Railroad Commission of Texas shall adopt

rules to implement Section 104.302, Utilities Code, as added by

this Act, not later than the 180th day after the effective date of

this Act.

SECTION 3. This Act applies only to a cost recovery

proceeding commenced on or after the effective date of this Act. A

cost recovery proceeding commenced before the effective date of

this Act is governed by the law in effect on the date the cost

recovery proceeding was commenced, and the former 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. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texans for Truth and Liberty PAC

Dustin Burrows Campaign

Texans for Truth and Liberty PAC

Dustin Burrows Campaign

House May 28, 2025

Senate May 26, 2025

Senate May 26, 2025

Senate May 26, 2025

Senate May 26, 2025

House May 8, 2025

House May 7, 2025

For

Against

On

Companion