Yep, it's true! From this page at williamshatner.com:

I thought it worth mentioning here that I'm going to be making another record! By an enormous coincidence, the Foos brothers (they once owned Rhino Records) approached me and asked if I'd be interested in recording another record. Then about an hour later, Ben Folds (in case you are not familiar with him, he's kind of like a New Age Elton John) called me and asked me if I would perform on stage with him. So I realized that Fate had knocked at my door and I asked Ben if he would be interested in producing a record with me. He said yes, so we're going into the studio together in the spring and will assemble the record together.