Rep. Drew Darby introduced HB 4427, a bill on Utilities, to the Texas House on Tuesday, March 11 during the 89(R) legislative session, according to the Texas Legislature website.
More specifically, the official text was summarized by the state legislature as ’’relating to the recovery of certain expenses by an electric utility or a water and sewer utility in a rate proceeding’’.
The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.
This bill modifies the Texas Utilities Code and Water Code to limit the recovery of legal expenses by electric and water utilities during rate proceedings. It stipulates that regulatory authorities cannot approve legal expenses exceeding the greater of $50,000 or 50% of the total legal expenses incurred by a utility for participating in a rate case. Additionally, it prohibits including legislative advocacy expenses, costs related to refunds or credits, and expenditures deemed unreasonable, unnecessary, or not in the public interest from consideration in ratemaking. The changes apply to rate proceedings starting on or after Sept. 1, 2025.
Drew Darby, the chair of the House Committee on Energy Resources, proposed another 49 bills during the 89(R) legislative session. He is also a member of the House Committee on House Administration and a member of the House Committee on State Affairs.
Drew Darby is currently serving in the Texas State House, representing the state’s 72nd House district. He replaced previous state representative Scott Edward Campbell in 2007.
Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.
You can read more about the bills and other measures here.
Other Bills Introduced by Rep. Drew Darby in Texas House
| Legislative Session | Bill Number | Date Introduced | Short Description |
|---|---|---|---|
| 89(R) | HB 4426 | 03/11/2025 | Relating to permits issued by the Railroad Commission of Texas for commercial surface disposal facilities |
| 89(R) | HB 4384 | 03/11/2025 | Relating to the recovery of certain costs associated with a gas utility’s plant, facilities, or equipment placed in service |
| 89(R) | HB 4382 | 03/11/2025 | Relating to an exemption from sales and use taxes for certain tangible personal property used in hydraulic fracturing |
| 89(R) | HB 4290 | 03/11/2025 | Relating to a qualifying cogenerator that serves a large load and a colocated desalination facility |
| 89(R) | HB 4136 | 03/10/2025 | Relating to the availability of certain personal information of a member of the governing board of an institution of higher education, the chief executive officer of the institution, or the chief executive officer of a university system |
| 89(R) | HB 4124 | 03/07/2025 | Relating to the charging of swipe fees on certain electronic payment transactions; authorizing a civil penalty |
| 89(R) | HB 4011 | 03/06/2025 | Relating to the partition or voluntary sale of real property owned by certain cotenants; amending the Uniform Partition of Heirs’ Property Act |
| 89(R) | HB 3970 | 03/06/2025 | Relating to the interconnection and operation of large loads |
| 89(R) | HB 3911 | 03/06/2025 | Relating to the plugging or replugging of certain inactive wells subject to the jurisdiction of the Railroad Commission of Texas |
| 89(R) | HB 3901 | 03/06/2025 | Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property |
| 89(R) | HB 3809 | 03/05/2025 | Relating to the removal of battery energy storage facilities |
| 89(R) | HB 3794 | 03/05/2025 | Relating to the licensing and regulation of advanced practice registered nurses and the payment of independent advanced practice registered nurses in certain government employee health plans |
| 89(R) | HB 3746 | 03/04/2025 | Relating to the exemption of certain gas and electricity from sales and use taxes |
| 89(R) | HB 3710 | 03/04/2025 | Relating to the effect of a tax certificate accompanying a transfer of certain property |
| 89(R) | HB 3503 | 02/27/2025 | Relating to the Social Work Licensure Compact; authorizing fees |
| 89(R) | HB 3448 | 02/26/2025 | Relating to the access by a certificated telecommunications provider to the rights-of-way and poles of an electric cooperative |
| 89(R) | HB 3445 | 02/26/2025 | Relating to the access by a certificated telecommunications provider to the rights-of-way and pole charges of an electric cooperative |
| 89(R) | HB 3265 | 02/25/2025 | Relating to discriminatory practices by a health benefit plan issuer, pharmacy benefit manager, and third-party payor and certain prescription drug manufacturers, distributors, and related persons with respect to certain entities participating in a federal drug discount program; providing a civil penalty |
| 89(R) | HB 3250 | 02/24/2025 | Relating to the regulation of real estate appraisers and appraisal management companies |
| 89(R) | HB 3249 | 02/24/2025 | Relating to rules providing for certification of issues to the Texas Commission on Environmental Quality in contested cases referred to the State Office of Administrative Hearings by the commission |
| 89(R) | HB 3190 | 02/21/2025 | Relating to school personnel and public school operations, including the eligibility of certain employees for unemployment compensation benefits |
| 89(R) | HB 3159 | 02/21/2025 | Relating to a severance tax exemption for oil and gas produced from certain restimulation wells; providing a civil penalty |
| 89(R) | HB 3158 | 02/21/2025 | Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste |
| 89(R) | HB 3157 | 02/21/2025 | Relating to interim rates charged by electric utilities during a rate suspension period |
| 89(R) | HB 3156 | 02/21/2025 | Relating to fluid oil and gas waste and products and byproducts of that waste |
| 89(R) | HB 3126 | 02/20/2025 | Relating to the election of certain school districts and open-enrollment charter schools to participate in the uniform group coverage program for active school employees |
| 89(R) | HB 3100 | 02/20/2025 | Relating to a limit on the number of athletic scholarships that may be awarded to foreign students by a public institution of higher education |
| 89(R) | HB 3078 | 02/20/2025 | Relating to manufacturer fees for operation of a real-time electronic logging system to track over-the-counter sales of ephedrine, pseudoephedrine, or norpseudoephedrine; imposing a fee; authorizing an administrative penalty |
| 89(R) | HB 3069 | 02/20/2025 | Relating to the approval of a certificate of convenience and necessity for certain transmission projects |
| 89(R) | HB 3044 | 02/19/2025 | Relating to the periodic elimination of generic transmission constraints in the ERCOT power region |
| 89(R) | HB 3035 | 02/19/2025 | Relating to the creation of an organized oilfield theft prevention unit within the Department of Public Safety |
| 89(R) | HB 2790 | 02/13/2025 | Relating to liability for capturing and storing carbon dioxide |
| 89(R) | HB 2730 | 02/12/2025 | Relating to the authority of the chief appraiser of an appraisal district to require a person allowed an exemption from ad valorem taxation of a residence homestead to file a new application or confirm the person’s current qualification for the exemption |
| 89(R) | HB 2713 | 02/12/2025 | Relating to the repeal of a municipal civil service system for firefighters and police officers in certain municipalities |
| 89(R) | HB 2712 | 02/12/2025 | Relating to test years used for ratemaking purposes by certain water and sewer utilities |
| 89(R) | HB 2678 | 02/11/2025 | Relating to the establishment of the Texas Advanced Nuclear Energy Authority and a Texas nuclear permitting officer |
| 89(R) | HB 2663 | 02/11/2025 | Relating to the affirmation required to be made by an operator as part of an application to the Railroad Commission of Texas for an extension of the deadline for plugging an inactive well; providing an administrative penalty |
| 89(R) | HB 2525 | 02/06/2025 | Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age |
| 89(R) | HB 2438 | 02/05/2025 | Relating to the operations and administration of the Concho County Hospital District |
| 89(R) | HB 2379 | 02/04/2025 | Relating to the selection by the board of directors of the West Coke County Hospital District of a depository bank for the district |
| 89(R) | HB 2349 | 02/03/2025 | Relating to exempting certain transactions from regulation by the Texas Real Estate Commission |
| 89(R) | HB 2037 | 01/23/2025 | Relating to repairs made pursuant to a residential or manufactured home tenant’s notice of intent to repair and the provision of notice regarding a residential or manufactured home tenant’s security deposit |
| 89(R) | HB 2002 | 01/22/2025 | Relating to the eligibility of an organization to receive surplus agricultural products under certain grants awarded by the Department of Agriculture |
| 89(R) | HB 1971 | 01/22/2025 | Relating to an exemption for drillers or operators of closed-loop geothermal injection wells from certain requirements applicable to persons involved in activities under the jurisdiction of the Railroad Commission of Texas |
| 89(R) | HB 1926 | 01/16/2025 | Relating to organization of, meetings of, and voting by condominium unit owners’ associations and property owners’ associations |
| 89(R) | HB 1769 | 01/08/2025 | Relating to the classification of certain entities as primarily engaged in retail trade for purposes of the franchise tax |
| 89(R) | HB 1749 | 01/07/2025 | Relating to the jurisdiction of municipal courts over health and safety and nuisance abatement ordinances |
| 89(R) | HB 1748 | 01/07/2025 | Relating to the appointment of spoken language interpreters for certain court proceedings |
| 89(R) | HB 1716 | 12/30/2024 | Relating to the provision of counseling services by certain providers under Medicaid and reimbursement for those services |
| 88(R) | HB 1000 | 03/10/2023 | Relating to the composition of districts for the election of members of the Texas House of Representatives |
