BILL ANALYSIS C.S.H.B. 1485 By: Oliveira 04-25-95 Committee Report (Substituted) BACKGROUND Section 4(A) of the Electric Cooperative Corporation Act restricts sales of power from an electric cooperative to the state and its political subdivision, including municipally owned electric systems, which have installed generation of 500 megawatts or more. Few municipally owned electric systems are eligible to buy power from an electric cooperative due to the restriction. PURPOSE CSHB 1485 enables the state, including municipally owned electric systems, and political subdivisions of the electric cooperative to purchase sales of power from an electric cooperative located in Cameron County. 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 Section 4(A) of the Electric Cooperative Corporation Act to allow power providers in Cameron County, including political subdivision of a state which are co-owners with a corporation, to sell power without being limited to resale transactions or the 500 megawatt installed generation capacity. SECTION 2. Emergency clause. Effective date: passage date. COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill allowed such purchases from all electric cooperatives, and the substitute limits that to cooperatives located in Cameron County. 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 1485. The Chair laid out HB 1485 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 1485 pending. In a public hearing on April 11, 1995, the Chair laid out HB 1485. 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.