SB 2780
Birdwell Bill Lets Gas Utilities Defer Pipe Costs, Plus A Return
Died in committee
Verdict: No flags
Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to the recovery of a gas utility's gross plant placed in service not yet being recovered in rates.
Caption from analyzed text · version I.
Summary
Compounded at the utility’s own cost of capital. Customers pay later, unless the Commission disallows it.
The bill lets gas utilities record the costs of new pipes, facilities and equipment that are already in service but not yet covered by customer rates, and save those costs to be collected later. The saved costs include a return on the investment compounded at the utility's own cost of capital, plus depreciation, property taxes and added upkeep, and the Railroad Commission must write rules within 180 days. Customers of gas utilities will eventually pay these deferred amounts through rates, though the Commission reviews them in a rate case and can order refunds of anything it disallows.
Receipt
The receipt
89R-SB2780 · 2025-03-14
SOLD BY
ITEM
relating to the recovery of a gas utility's gross plant placed in service not yet being recovered in rates.
WHAT IT DOES
Compounded at the utility’s own cost of capital. Customers pay later, unless the Commission disallows it.
The bill lets gas utilities record the costs of new pipes, facilities and equipment that are already in service but not yet covered by customer rates, and save those costs to be collected later. The saved costs include a return on the investment compounded at the utility's own cost of capital, plus depreciation, property taxes and added upkeep, and the Railroad Commission must write rules within 180 days. Customers of gas utilities will eventually pay these deferred amounts through rates, though the Commission reviews them in a rate case and can order refunds of anything it disallows.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal note in the loaded record.
HISTORY
- Received by the Secretary of the Senate
- Filed
- Read first time
- Referred to Natural Resources
FILED UNDER
DATA CENTERS, WATER AND THE GRID
THE TEXT
…“compounded at the gas utility's pre-tax weighted average cost of capital until recovery”
Bill text, introduced version (I)
The bill lets gas utilities bank costs, plus a compounding return, for new plant and recover them later from ratepayers, which shifts who pays for utility infrastructure and when.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
Derived from itemized gifts, Jul 1, 2024 to Jun 30, 2026. State data as of Nov 4, 2026.
Not tied to this bill.
Sources
The author's campaign account only. Own money and internal transfers are separate on the member page.
$353,800 raised since Jul 1, 2024. Derived sum of published report totals. blank in the state's data, consistent with zero. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026. 4 of 4 filed reports carry a published figure.
$502,039 spent since Jul 1, 2024. Derived sum of published report totals. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026. 4 of 4 filed reports carry a published figure.
$731,044 cash on hand. Published report total. Stock, as of Jun 30, 2026. State filing data as of Nov 4, 2026.
$0 loans outstanding. Published report total. Stock, as of Jun 30, 2026. State filing data as of Nov 4, 2026.
Derived sum of itemized contributions in regular reports and uncovered special-session dates. Unitemized contributions are not included. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026.
MoneyMissing data does not establish zero giving. Display amounts are rounded.
Votes
No floor vote loaded for this bill.
Fiscal
No fiscal note in the loaded record.
How this was graded
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas Senate · Filed Mar 14, 2025
04/03/2025 S Referred to Natural Resources
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
Senate committee · Natural Resources · Final status: Died in committee
Companion
HB 4384 by Darby (identical)
Subjects
Utilities--Natural Gas
RAILROAD COMMISSION
Text
The text as introduced · 465 words
By: Birdwell S.B. No. 2780 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.