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 an 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 until recovery. (3) "Unrecovered gross plant" means a 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: (1) post in-service carrying costs; (2) depreciation associated with the unrecovered gross plant; and (3) ad valorem taxes associated with the unrecovered gross plant. (c) A regulatory asset established under Subsection (b) must be included in the railroad commission's authorized cost recovery mechanism under Section 104.301. (d) On recovery in rates of a regulatory asset established by a gas utility under Subsection (b), the gas utility shall make appropriate accounting adjustments to reflect the recovery in rates. (e) The railroad commission shall review the costs included in a regulatory asset established by a gas utility under Subsection (b) in a general rate proceeding. The costs are subject to a refund with interest to the extent the railroad commission by order disallows recovery in rates.