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.