BILL ANALYSIS



C.S.H.B. 1484
By: Oliveira
04-25-95
Committee Report (Substituted)


BACKGROUND

The Electric Cooperative Corporation Act does not permit an
electric cooperative to be a member of a Joint Powers Agency.  The
Act currently restricts membership to municipally owned electric
systems.  As a result, electric cooperatives such as the Magic
Valley Electric Cooperative in Brownsville must purchase electric
power form an investor-owned utility at a higher power cost,
resulting in higher customer rates. 

PURPOSE

CSHB 1484 allows electric cooperatives in Cameron County to form
Joint Powers Agencies.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 166, Acts of the 63rd Legislature,
           Regular Session, 1973 by adding SECTION 4c which allows
           electric cooperatives in Cameron County to form a Joint
           Power Agency. 

SECTION 2. Emergency Clause.  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute allows only electric cooperatives in Cameron County
to form Joint Powers Agencies.  The original bill allowed all
electric cooperatives in the state to form Joint Powers Agencies.

SUMMARY OF COMMITTEE ACTION

Pursuant to public notice posted on March , 1995, the Committee on
State Affairs convened in a public hearing on April 10, 1995 to
consider HB 1484.  The Chair laid out HB 1484 and recognized Rep.
Oliveira to explain the bill.  Rep. Black laid out a complete
committee substitute which was not adopted.  The following persons
testified for the bill:  John W. Davidson representing the
Brownsville Public Utility Board; Robert G. Merrett representing
the Magic Valley Electric Association, Inc.; Don Ouchley
representing himself; Mike Williams representing himself; and Jim
Morriss representing Texas Electric Cooperatives, Inc.  The
following persons testified against the bill:  R.H. Cory
representing Central & Southwest; Kent Caperton representing the
Association of Electric Companies of Texas.  The following person
testified neutrally on the bill:  Brent J. Slocum representing the
Public Utility Commission.  The Chair recognized Rep. Oliveira to
close.  The Chair left HB 1484 pending.  In a public hearing on
April 11, 1995, the Chair laid out HB 1484.  Rep. D. Jones laid out
a complete committee substitute which was adopted without
objection.  The bill was reported favorably as substituted with the
recommendation that it do pass and be printed by a record vote of
10 ayes, 3 nays, 0 pnv, 2 absent.