HB1737 Summary

• Creates the "Natural Gas Utility Infrastructure Cost Recovery Act of 2025" allowing natural gas utilities regulated by the Corporation Commission to seek pre-approval for constructing, purchasing, or investing in energy infrastructure facilities including renewable natural gas, hydrogen, and alternative fuels.

• Commission must determine if proposed projects serve the public interest (enhancing reliability, security, economic development, or environmental benefits) and enter orders within 240 days of application filing, with costs exceeding approved amounts by more than 10% subject to prudency review.

• Allows Corporation Commission staff and Attorney General to request cost assessments from utilities to cover analysis, expert witnesses, consultants, and analytical services, with costs deemed recoverable by the utility.

• Requires Commission to promulgate implementation rules by April 1, 2026, including provisions for contemporaneous cost recovery from customers, facility cost approval processes, and potential recovery of Construction-Work-In-Progress expenses prior to facility commercial operation.

• Becomes effective November 1, 2025.