Regular Session
Government Affairs & Regulatory Compliance Analysis
HB 4384 fundamentally alters regulatory accounting for Gas Utilities by authorizing the deferral of post-in-service carrying costs, depreciation, and ad valorem taxes as a regulatory asset. This legislation allows utilities to bridge the financial gap between placing infrastructure in service and recovering those costs in rates, provided strict accounting protocols are established immediately.
Rep. Drew Darby·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
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JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB4384
HB 4384 fundamentally alters regulatory accounting for Gas Utilities by authorizing the deferral of post-in-service carrying costs, depreciation, and ad valorem taxes as a regulatory asset. This legislation allows utilities to bridge the financial gap between placing infrastructure in service and recovering those costs in rates, provided strict accounting protocols are established immediately.
HB4384 was authored by Texas Representative Drew Darby during the Regular Session.
HB4384 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4384 is enforced by Railroad Commission of Texas.
The regulatory priority for HB4384 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4384 is estimated as "low". This may vary based on industry and implementation requirements.
HB4384 addresses topics including utilities, utilities--natural gas and railroad commission.
Key dates for HB4384: Effective date is 2025-06-20. Rulemaking: Adopt rules to implement Section 104.302 regarding the calculation and deferral of regulatory assets (deadline is 270 days post-effective date). (2026-03-17). Consult with legal counsel regarding applicability.
HB4384 establishes the following penalties: administrative penalty of Refund of collected rates plus interest for RRC disallowance of costs included in the regulatory asset during a general rate proceeding review.. Consult with legal counsel for specific applicability to your situation.
HB4384 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
