Sec. 104.060. CONSIDERATION OF COMPENSATION AND BENEFIT EXPENSES. (a) In this section, "employee compensation and benefits" includes base salaries, wages, incentive compensation, and benefits. The term does not include:
(1) pension or other postemployment benefits; and
(2) incentive compensation related to attaining financial metrics for an executive officer whose compensation is required to be disclosed under 17 C.F.R. Section 229.402(a).
(b) When establishing a gas utility's rates, the regulatory authority shall presume that employee compensation and benefits expenses are reasonable and necessary if the expenses are consistent with market compensation studies issued not earlier than three years before the initiation of the proceeding to establish the rates.
Added by Acts 2019, 86th Leg., R.S., Ch. 1362 (H.B. 1767), Sec. 1, eff. June 15, 2019.
Structure Texas Statutes
Subtitle A - Gas Utility Regulatory Act
Chapter 104 - Rates and Services
Subchapter B. Computation of Rates
Section 104.051. Establishing Overall Revenues
Section 104.052. Establishing Fair Rate of Return
Section 104.053. Components of Adjusted Value of Invested Capital
Section 104.054. Depreciation, Amortization, and Depletion
Section 104.055. Net Income; Allowable Expenses
Section 104.056. Treatment of Certain Tax Benefits
Section 104.057. Consideration of Certain Expenses
Section 104.058. Consideration of Profit or Loss From Sale or Lease of Merchandise
Section 104.059. Pension and Other Postemployment Benefits
Section 104.060. Consideration of Compensation and Benefit Expenses