Relating to the authority of the Public Utility Commission of Texas to retain assistance for regional proceedings affecting certain electric utilities and consumers.

Contracts

• Vendor Management: You will not hold the contract with the consultants; the PUC will. However, you must treat the PUC as a priority vendor.
• Invoice Processing: Update Accounts Payable protocols. Invoices submitted by the PUC under Section 39.004(c) must bypass standard Net-60 or Net-90 terms. Establish a "Pay Upon Receipt" or Net-30 protocol to satisfy the statutory requirement of "timely" payment.
• Lobbyist Verification: Before processing payment, verify the PUC-retained individual is not a registered lobbyist. The statute prohibits the PUC from retaining registered lobbyists; payments to such individuals may be legally contestable.

Hiring/Training

• Regulatory Accounting: Train accounting staff to segregate these payments into a dedicated regulatory asset account rather than expensing them immediately.
• Interest Calculation: Staff must be trained to accrue carrying charges (interest) starting from the specific date of cash disbursement to the PUC.

Reporting & Record-Keeping

• Cap Tracking: Implement an internal control to track cumulative payments to the PUC. You are statutorily capped at $1.5 million in a 12-month period. You must flag and challenge any invoice that pushes you over this limit.
• Rider Filing: Prepare a pro forma tariff sheet for the annual rider application. This filing must document the costs paid and the carrying charges accrued.

Fees & Costs

• Cash Flow Impact: Budget for a potential liquidity hit of up to $1.5 million annually.
• Recovery: These costs are pass-through. You will recover the principal plus carrying charges once the rider is approved.