Overview of HB 2235 by Murphy
- The Financial Accounting Standards Board (FASB) sets generally accepted accounting principles (GAAP) required to be followed by U.S. companies filing financial statements with the SEC.
- FASB is adopting a change in the presentation (not calculation) of retirement benefit costs.
- The change is intended to promote ease of financial analysis by the investor community.
- FASB has acknowledged this change has national implications in the utility sector, and has left it to be addressed at the individual state level or at the Federal Energy Regulatory Commission.
- This change in presentation in no way affects the amount of pension costs to be included in rates.
AECT Supports Retaining the Current Regulatory Treatment of Retirement Benefits
- HB 2235 removes one word (“operating”) in two places within PURA 36.065(b).
- This aligns PURA with FASB, preserving the current regulatory treatment of retirement benefits relied on by more than 10,000 Texans.
- HB 2235 does not impact electric rates, and all required ratepayer protections remain in place.