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.