🔴An Act relating to the recovery of certain costs associated with a gas utility’s plant, facilities, or equipment placed in service
HB 4384
🔴 HB 4384: Lets Gas Utilities Shift Costs to Texans Before Review
What it says it does:
HB 4384 says it helps gas utilities recover the costs of new pipelines, plants, or equipment more quickly by reducing regulatory lag and encouraging reinvestment.
What it actually changes:
It allows utilities to start booking financing charges, property taxes, and depreciation on new infrastructure as “regulatory assets” the moment those projects go into service. Those costs are later rolled into customer bills unless the Railroad Commission disallows them in a rate case. Texans end up paying before the costs are proven fair.
Who is pushing for it:
CenterPoint Energy, the Texas Pipeline Association, and the Railroad Commission staff supported or testified for the bill. Rep. Drew Darby authored it, and Sen. Brian Birdwell carried it in the Senate.
Who benefits:
Gas utilities and pipeline companies gain faster cost recovery, reduced financial risk, and guaranteed returns. The Railroad Commission gains sole discretion to approve or deny costs later, increasing its influence over rate decisions.
Who gets left out or exposed:
Cities lose leverage in protecting local ratepayers. Consumer and senior groups like AARP Texas and the Texas Consumer Association opposed it, warning about higher bills and less oversight. Everyday Texans become the financial buffer for industry.
Why this matters long term:
The bill sets a permanent precedent for companies to shift financing risk from shareholders to customers. It centralizes power in an agency with a long history of siding with industry and weakens municipal input in rate oversight.
What to watch next:
Future sessions could expand the list of deferrable costs, such as operations and maintenance, using this law as a model. Texans should watch for rising bills and new proposals framed as “regulatory efficiency.”
Bottom line:
HB 4384 looks technical, but it quietly rewrites who carries financial risk in Texas. Utilities now recover costs up front, while households, cities, and small businesses pay later.
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