Texas Utilities Code

§ 104.053 — COMPONENTS OF ADJUSTED VALUE OF INVESTED CAPITAL

UT § 104.053Title 3. GAS REGULATION · Part A. GAS UTILITY REGULATORY ACT · Ch. 104. RATES AND SERVICES · Art. B. COMPUTATION OF RATES

Statute text

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(a)Gas utility rates shall be based on the adjusted value of invested capital used and useful to the utility in providing service and that adjusted value shall be computed on the basis of a reasonable balance between:

(1)original cost, less depreciation; and

(2)current cost, less an adjustment for present age and condition.

(b)The regulatory authority may determine a reasonable balance that reflects:

(1)not less than 60 percent nor more than 75 percent of the original cost of the property at the time the property was dedicated to public use, whether by the gas utility that is the present owner or by a predecessor, less depreciation; and

(2)not less than 25 percent nor more than 40 percent of the current cost less an adjustment for present age and condition.

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Legislative history

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.